Sales up as Asda bounces back

Asda returned to sales growth at the end of last year as it moved to put a tough period when it seemed to be lagging rivals into the background.

The grocery giant - second in size only to Tesco - saw its market share slip last year.

Today it reported that sales in the fourth quarter rose 1.6%, welcome news for new chief executive Andy Clarke.

Asda's parent, Wal-Mart, is thought to be frustrated with the UK arm's somewhat sluggish performance lately.

It has its own problems too. Wal-Mart also unveiled figures today, recording that sales fell 1.8%, the seventh quarterly fall on the trot.

Asda said its core brand - Chosen By You - now represents 80% of own-label food sales. It was launched in September.

Clarke said: "I'm pleased with the progress we've made in the last six months. We have successfully extended our price gap to 10%, significantly improved the quality of our food across the entire store, and given our customers even better service."

That "price gap" sees Asda promising to be 10% cheaper than rivals on thousands of goods.
Earlier today Asda announced it was rewarding its colleagues with a share of a £26.9 million bonus.

Clarke added: "There is no doubt in my mind that the colleagues working in our stores and depots are the heroes of our business.

"They have worked incredibly hard this year to deliver the best for our customers - taking everything from the difficult economic climate to the great British weather in their stride. I take my hat off to them."

That bonus is far from banker-like, however. It is worth £350 each to most staff.