Asda delivers ‘record’ online sales in Q2

Asda has announced that like-for-like sales, excluding fuel, increased by 3.8% year-on-year in the quarter ended 30 June.

In its second quarter of trading, the supermarket also delivered “record” online sales, with online grocery sales doubling, while click-and-collect sales quadrupled in the period.

According to the group, transactional data shows that many customers over the period were new to Asda.

In light of this higher demand, Asda has now increased its online capacity by 65% since March. It now delivers 700,000 weekly slots, and plans to increase this capacity to 740,000 by the end of the year. 

The retailer also plans to increase capacity even further in 2021, with up to one million weekly slots. 

Demand for clothing fell in the quarter, despite an increased demand for children’s clothing in the period, though camping equipment rose by 25% year-on-year in light of increased ‘staycations’ across the UK.  

While fuel sales decreased “significantly” at the start of lockdown, the gradual return to work and easing of lockdown has seen fuel volumes return to around 90% of pre-Covid levels. Customer spend at the pump remains down year on year.

Geroge Home sales are growing 13% ahead of the market, however, while Asda’s Extra Special range has “outperformed the market” with a sales uplift of 19.4% year-on-year.

Doug McMillon, CEO and president of Walmart said: “Excluding fuel, Asda’s performance demonstrated the resilience of the business with growth in a challenging period.”

Asda CEO and president, Roger Burnley, said: “The pandemic has created a structural shift in customer behaviours towards grocery shopping. 

“We have accelerated our online capacity expansion to meet levels we had anticipated reaching in eight years within a matter of weeks and we will continue to expand this offer.”

He added: “We will also maintain focus on ensuring our in-store experience delivers what customers want from a shopping trip – great value, relevant range and ease.

“We responded swiftly and extensively to do the right things to protect our customers, colleagues and communities – keeping our prices low, investing in our colleagues and communities and ensuring our stores and online offer adapted to meet customer needs and concerns.”