The bosses of Asda have warned of the 'stark challenges' facing families as shoppers are, on average, £40 a week worse off as the cost of living crisis continues to rumble on. Speaking to a trade magazine, the billionaire Issa brothers said the giant recorded a 9% drop in sales in the first quarter of the year.
They told The Grocer the impact was likely down to coronavirus, which prompted an exceptional quarter one of the last financial year. The UK's third national lockdown saw a boom in supermarket sales.
Zuber and Mohsin Issa's retailer saw like-for-like food sales drop by 7% in 2022. Asda says this is because more people are eating out now the Covid restrictions have been lifted.
Sales fell more sharply in clothing, which was down 19.3%, and general merchandise, which was down 23.7%. The store put this down to non-essential retailers being forced to close this time last year.
The figures, which came from an announcement made to investors, also saw ASda co-owner Mohsin Issa stress the 'severe cost pressures' facing families. And Asda's Income Tracker showed households have, on average, £40 less a week on disposable income.
This was the biggest drop since the firm introduced the tracker in 2008. The largest fall was in the under 30 and over 75 age groups.
Because of this, Asda said it had invested more than £90 million in expanding its new Just Essentials value range. It has also locked in the prices of 100 family favourites.
Speaking to The Grocer, Mohsin Issa said: "The latest Asda Income Tracker highlights the stark reality facing millions of families in the UK right now with household incomes more squeezed than ever. Asda has a strong heritage of investing in price and customers can trust us to be on their side when they need it the most. We are investing in helping our shoppers manage the challenges of the here and now, as well as progressing critical strategic initiatives including loyalty, convenience and enhancing our in-store offering, which will all deliver long-term value."
