Asda Fell to Growing Competition in Stores
After five months of strong competition with rivals Asda recorded defeat in stores war
The U. S super market chain owner, Wal-Mart listed growth in sales by 1.3% till 16th of May as compared to 3% jump of Tesco, 3.6% for Sainsbury's and 5.6% to that of Morrisons.
Asda's share of the grocery market had fell from 16.2% to 16%.
Kantar's Ed Garner said that Asda formulae about prices may be "working against the company" as the shoppers shopped with Tesco Finest and Waitrose
TV ads along with recipe cards had boosted Aldi's and Tesco Finest and Waitrose sales by giving jump of 8.3% and 12.6% respectively.
Tesco kept its stake of 30.6% by being collinear with the market while Sainsbury's and Morrisons gained over it by registering growth of 4.4% and 6% respectively
Asda now owned by Wal-Mart revealed that like-for-like sales fell by 0.3% in the first quarter of the year being the lowest since 2006. The set back was due to Andy Clarke, the chief operating officer, took over from Andy Bond as chief executive
Bond, after taking the charge of part-time chairman said, "The market has slowed down significantly since the turn of the year, and I expect conditions to remain tough for some time".
Bond has rejected the plan of reducing the number promotions in the stores calling it as "weapons of mass distraction". Analysts at rival research firm Nielsen suggested that approach had given positive results with growth in sale numbers
New Zealand News
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