WMT Walmart Inc

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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