By Ian Walker
LONDON--Asda Stores Ltd., the U.K. arm of Wal-Mart Stores Inc
(WMT), Thursday reported a 0.3% rise in same-store sales for the 13
weeks ended Oct. 4, and outlined its five-year plan to invest 1.25
billion pounds ($1.99 billion) in lowering prices, improving
product quality, style and design amid a tough market
environment.
Asda, the U.K.'s No. 2 supermarket by market share, added that
its online business remains a core part of its growth strategy and
is expected to generate GBP3 billion in annual sales by 2018. Asda
plans to increase the number of Click and Collect locations to over
1,000 from 218 in the next five years.
The supermarket will invest GBP1 billion in lowering prices, and
GBP250 million in quality, style and design over the next five
years.
It plans to expand its supermarket format and grow the number of
its standalone petrol filling stations, adding that innovation in
its large stores will continue, including the George 21 clothing
concept and the plans announced last week that will see eight
Barclays branches in stores from early 2014.
The moves are expected to increase physical access to its brand
to 70% by 2018, from 53% now, particularly in London and the South
East where its market share is low.
Chief Executive and President, Andy Clarke, said: "The market
conditions are tough, competition is fierce and our customers'
budgets are under intense pressure".
"We've continued to invest in lowering prices which has held
them down for our customers while driving volume growth. This means
we enter the crucial fourth quarter in a solid position", Mr.
Clarke said.
Earlier Thursday Asda's parent Wal-Mart reported a 2.8% rise in
fiscal third-quarter earnings, but said revenue was weaker than
expected and lowered its full-year guidance.
-Write to Ian Walker at ian.walker@wsj.com
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