Asda's 3Q Sales Get Boost From Early Christmas Shopping
November 17 2020 - 8:49AM
Dow Jones News
By Matteo Castia
Walmart Inc.'s U.K. business Asda Group Ltd. said Tuesday that
third-quarter sales rose on the back of a surge in demand for
Christmas products, as consumers stocked up earlier than usual due
to the coronavirus pandemic.
The British supermarket, whose sale to private equity firm TDR
Capital LLP and the billionaire Issa brothers is scheduled for
completion in the first half of next year, said like-for-like
quarterly sales excluding fuel rose 2.7% on the year.
The company said growth was driven by strong performance in core
grocery, back-to-school clothing, and online shopping, with
e-commerce sales jumping 72% year-on-year. Online sales are
expected to continue their growth trajectory in the fourth quarter,
Asda added.
"Asda is already seeing a surge in demand for Christmas products
and 'lockdown proof' festive essentials as customers start their
preparations earlier than in previous years. Sales of Christmas
trees have increased by 83% year-on-year, festive lights by 57%,
Christmas puddings by 71% and mince pies by 44%," the company
said.
Asda said it is also seeing changes relating to how customers
prepare for a Christmas under coronavirus restrictions, with an
increase in sales of products that better adapt to smaller
gatherings. "Sales of frozen turkey crowns, which typically serve 3
to 4 people, have increased by 230% year-on-year," it said.
U.S. retail corporation Walmart agreed to the sale of Asda last
month for 6.8 billion pounds ($8.98 billion).
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
November 17, 2020 08:34 ET (13:34 GMT)
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