Asda reports strong sales as Walmart handed nearly £3bn before takeover

Asda has reported strong sales driven by growth in non-food categories during the Uk’s third national lockdown.

The supermarket’s results for Q1 2021 showed a 7.3 per cent increased in like-for-like sales, with clothing increasing by 31 per cent and general merchandise by 39 per cent. 

This was driven by “strong demand” for outdoor furniture, BBQs and garden accessories, 

Like-for-like food sales increased by 3.9 per cent. And, digital sales soared by 88 per cent during the period.

The company also published its statutory results for 2020, which revealed that owner Walmart received a dividend payment of £1,650m in cash and a dividend in specie of £1,269.5m.

The acquisition of Asda by the Issa Brothers and TDR Capital, announced in October, is awaiting final regulatory approval by the Competition and Markets Authority.

Roger Burnley, Asda CEO & President, said: “We showed huge resilience last year in unprecedented circumstances and carried this momentum through the first quarter with strong like for like sales growth in many key categories, especially clothing and general merchandise. Whilst the closure of non-essential retail during the first quarter helped stimulate demand, our constant focus on keeping prices low, providing great quality products and developing in-store partnerships with market leading consumer brands such as B&Q, The Entertainer and Greggs, continues to resonate with customers.

“Although the pandemic is not over yet, there are signs that our customers are feeling much more optimistic about the future, with almost 60% of those we recently spoke to saying they are looking forward to a summer of socialising with friends and family.”

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