Asda has reported a slowdown in sales growth over Q3 and said it would save shoppers £150m this Christmas.
The retailer posted third quarter like-for-like sales, excluding petrol, of 5.6%, down from 7.2% in the second quarter. Asda said it had increased market share from 16.9% to 17.3% and that profits are growing faster than sales.
Judith McKenna, chief finance officer said: “Asda continues to be in excellent health, with every part of the business - food, home and leisure, and clothing - all outperforming their respective markets.
She added that over Christmas Asda anticipates customers will be more frugal and will opt for practical gifts including clothing.
She said on Christmas clothing sales at the supermarket: “We think 1 in 4 [purchases] will be clothing so we have added a fifth more nightwear to our range and upped the number of accessories and gifts by 33%. And 80% of the range will be under £10. George will be very competative this Christmas.”
Asda said it is cutting the cost of Christmas by £150m for customers. The figure was calculated by comparing prices every week for the last six weeks at comparison site mysupermarket.com and includes clothing purchases.