Asda growth slows in fourth quarter, adding to Walmart disappointments

Asda, Britain's third-largest supermarket chain, grew sales in the fourth quarter but it was far from enough to help parent Wamart from reporting a disappointing profits over the key festive period.

Asda reported 0.5% growth in like-for-like sales for the three months to 31 December, which may have been its fourth consecutive positive quarter for sales but was down on the 1.1% rise seen in the prior quarter. Net sales in Q4 were up 2.0

Walmart chief executive officer Doug McMillon said Asda had shown strength during the Christmas period.

"We’re pleased to see customers responding to our investments in the value proposition through improved in-store experience scores and the strengthening of our private brand and online grocery offerings. We know we have more work to do in the UK, however we are encouraged by recent results in key areas of our business.”

Roger Burnley, who was in January promoted to Asda president and CEO, said: "Last year, we really improved our offer for customers – combining great product innovation with a focus on value and an easy shopping experience.

"Products like our Asda mince pies really appealed to customers with their great taste, value and being suitable vegan friendly, helped attract over 348,000 new customers to our stores in December and meant we were the only one of the big four to retain our market position."

Looking at 2018 Burnley said Asda was focused "doing the right things for our customers to accelerate our momentum and build trust", including the launch of the 'Rolled Back Staying Back' price campaign, innovation in own brands and "the way we make it easier for customers to shop with us".

This coincided with Walmart unveiling a 14th consecutive quarter of growing comparative sales, with the 2.6% increase beating Wall Street consensus forecasts of 2%. But underlying earnings of $1.33 per share were slightly shy of the average analyst estimate of $1.37 per share, as compiled by Reuters.

Walmart's net income also shank 42.1% to $2.18bn and consolidated operating income fell 28% to $4.5bn.

Online sales growth particularly disappointed, slowing to 23% in the fourth quarter from the previous quarter’s 50% increase.