Asda has credited its growing loyalty programme and its recent £70m investment into the Aldi and Lidl price match for a 6.6% sales boost in Q1, to £5.3bn.
With like-for-like sales increasing by 1.4% over the three-month period ending 31 March, the supermarket’s continued growth was attributed to a number of strategic moves, including customers’ positive response to the Asda Rewards scheme and ongoing investment in value.
George @ Asda, the retailer’s fashion and home line, was also credited for the growth, as it grew revenues by 3% and “outperformed” the rest of the market.
Asda’ co-owner Mohsin Issa said the retailer “made good progress” against its strategy, adding that it was “laying the foundations for long-term success”.
“George at Asda again outperformed the value market in fashion and homewares, and it is very encouraging to see our investment in the brand bearing fruit both online and in stores,” he continued.
“Customers also responded positively to our ongoing investment in the Asda Rewards loyalty scheme, which now has around six million regular users.”
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The supermarket has continued to shield customers from price rises, investing in both its loyalty scheme Asda Rewards and in new value propositions to ensure that shoppers are able to benefit from an instore
rate of inflation that is “notably lower” than its competitors.
In January, Asda became the first supermarket to price match both Aldi and Lidl – whichever is cheapest – reducing prices by an average of 17% on more than 400 core household products.
Also new for Q1 were the ‘Fab 5’ and and ‘Mega Event Price Drop’ initiatives, which both offer customers significant discounts across a regularly updated range of branded and non-branded products.
The Asda Rewards continues to provide great savings for customers, who have earnt £65m during the quarter, which can be spent in store or online.
Around six million customers now use the rewards app on a regular basis, with half of all sales now linked to the scheme. Customers have saved more than £240 million since the programme launched in August 2022.
The supermarket said it is continuing to exploring ways to build on the programme and provide “even greater value” to customers. A recent addition has included the ‘Rewards Baby & Toddler Club,’ which offers members 10% back across all baby products.
The financial update comes after Asda unveiled a new brand identity yesterday, which added rounded edges and an updated colour scheme to its previous logo.
The fresh, dark green look is the next step of Asda’s broader brand strategy, described by CCO David Hills as a “milestone moment” in the evolution of the brand.
