Asda today published its full-year results – or rather, the collection of cherry-picked factoids that passes for a breakdown of its financial performance.
Sales were up 1.6% on a like-for-like basis in the fourth quarter, representing something of a turnaround from the slow-motion car-crash of last year.
Asda said it had “returned to out-performance” of the market, also noting a “staggering uplift” in sales of own-label yoghurt. And, as any analyst will tell you, all retail empires are founded on yoghurt.
Understandably, Andy Clarke chose to focus on “the progress we’ve made in the last six months” rather than the weak first half of the year. He also talked up the impact of the revamped Price Guarantee, claiming 800,000 people had logged in since the 10% pledge was debuted at the turn of the year.
On the other hand, the fourth-quarter improvement comes against dismal comparatives from the back end of 2009. Asda attributed that to the snow – a claim most observers took with a shovel-load of salt. The consensus is that Asda had a much better Christmas this time around, having sorted out its seasonal ranges and banged the drum on quality.
Those factors, of course, pre-date the 10% price promise. And with the avalanche of hype that has accompanied it, Asda’s top brass must be privately disappointed the guarantee hasn’t proved more of a game-changer.
Asda also today unveiled a new premium non-food line, called Elegant Living. That’s not necessarily the phrase that springs to mind when you think of the supermarket’s core shoppers.
Perhaps Asda will guarantee its Egyptian cotton bed sheets and earthenware teapots are 10% more chic than at Tesco. That should really bring in the punters.
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