Asda has reported a 1% fall in like-for-like sales for the year to December 31, 2014, and revealed it will invest £600m in expanding and revamping its store estate this year.
Like-for-like sales for the 12 weeks to January 4 dropped 2.6%. Asda did not provide a breakdown for its fashion arm George.
Asda will open 17 new store stores in 2015, including three supermarkets in London, and 62 stores will undergo a “major remodel” to reflect changing shopper habits. The business will also create 150 new remote click-and-collect sites.
Chief executive Andy Clarke said: “2014 saw an acceleration in the structural shift in the market and, while we saw it brewing and put the right plan in place to address it, delivering solid wins for our business and keeping the ship steady in a turbulent market, the pace and scale of change has exceeded all expectations.
“The first year of our plan was very much about building the foundations – a work out to limber us up for what is to come in 2015 – by leading the price agenda in a deflationary market. We have a clear plan for sustainable, profitable growth and creates a proposition that gives customers what they want.”
In 2014 Asda opened 17 new stores, unveiled its new shop fit at its Grantham superstore and announced eight further “store of the future” remodels for 2015.
During the year it also opened 200 click-and-collect sites, taking the total to 600. It also more than doubled the number of click-and-collect points it has in London Underground stations since November 2013.