Asda sales rise for second quarter running

Asda has clocked up rising sales for the second quarter in a row as the supermarket chain heads into the peak Christmas trading period.

Sales at established stores rose 1.1% in the third quarter at the retailer, which is owned by US colossus Walmart. Walmart said price cuts were encouraging shoppers to buy more goods when they visit stores.

The increase in the three months to the end of September was weaker than the 1.8% registered in the previous quarter. But second-quarter sales were flattered by the timing of the busy Easter weekend, suggesting Asda's revival could be on track.

Asda's sales fell for three years before rising in the second quarter. The chain has borne the brunt of competition from Aldi and Lidl, whose low prices on basic goods have lured shoppers on low incomes.

Britain's third-biggest supermarket chain has reduced prices and improved stores to attract customers back. It has also cut jobs and is reviewing staffing levels at underperforming stores.

Sean Clarke, Asda's chief executive, will leave in December after just 18 months in the job. He will be replaced by Roger Burnley, an ex-Asda employee who returned in October 2016 from Sainsbury's.

Clarke said: “It's great to see that we have now delivered our second consecutive quarter of positive like-for-life growth and the fifth consecutive quarter of continued sales improvement. The market environment will continue to be challenging into next year but we’re well placed with clear plans and a renewed level of confidence.”