Asda Just Essentials Fish

Asda said the successful launch of its Just Essentials range was helping to win over value-conscious customers

Asda today said it was taking “far reaching steps” to protect customers from the cost of living crisis, after reporting a year-on-year 1.9% fall in sales in the second quarter of the year.

The update to investors by owners the Issa brothers claimed a “significant improvement” on the 9.2% decline in Q1, although it said the figures still reflected tough comparisons with last year’s Covid restrictions.

The update said despite the fall in sales it was performing strongly in the battle to win over value-conscious customers, citing a successful launch of its Just Essentials range, which it claimed was growing 19% ahead of the market.

Asda has also expanded its ‘Dropped & Locked’ pricing campaign to include more than 250 products, which will remain for the rest of the year.

The supermarket’s own income tracker earlier this week showed that households were on average £160 worse off in July compared to last year and it said it was determined to help customers struggling with spiralling living costs.

“Every week millions of customers visit our stores or shop with us online and we know many of them are struggling with rising living costs that show no sign of easing,” said Asda co-owner Mohsin Issa.

We are determined to do all we can to support these customers during these tough times by keeping their grocery bills in check while delivering added value through initiatives such as Dropped & Locked and the Kids Eat for £1 offer in Asda cafés.”

Last week Kantar said sales of own-label value were products were booming with Just Essentials already in 33% of its customers’ baskets.

It reported Asda returning to growth in the latest 12 week period with its sales rising by 0.2% to take its market share to 13.9%.