Three years ago Andy Bond was admitting that Asda had lost touch with its core customers. Yesterday's trading update revealed the extent to which the chief executive's resulting turnaround programme has paid off.

Asda has gone back to its value roots, poured millions of pounds into lowering prices, embraced the internet and home shopping and broadened its food range by offering far more organic and premium products.

The George clothing range had stalled but Mr Bond is promising big things under Anthony Thompson, the former M&S retail director brought in to rejuvenate the brand. Mr Bond's success is reflected in strong sales growth at Asda throughout 2007 and the extra customers the supermarket chain has poached from rivals.

More than 600,000 shoppers added in the last year were “AB” customers - a point Mr Bond also hopes will dispel the myth that Asda is just a “downmarket retailer”.

Critics will take news of Asda's achievements with a pinch of salt. As a privately owned retailer it will always enjoy the luxury of being able to pick and choose the moments to crow about its performance.

Like Tesco and J Sainsbury, Asda has also undoubtedly been suffering from Morrison's resurgence over Christmas and New Year.

However, yesterday was far more than a simple exercise in showing how far Asda has come since the dark days of 2005.

Mr Bond is desperate for the Competition Commission and the Government to allow it far more room to expand in the UK by loosening the planning regime and has been lobbying fiercely in the corridors of power.

Yesterday's presentation was all about the benefits Asda can bring to the UK and the economy if given the chance to break Tesco's grip on the sector.

One minute Mr Bond was championing Asda's productivity, the next, new job creation. Later he was back on Asda's favourite soap box - price - claiming that Asda was doing more than any other supermarket to tackle food inflation.

Whether Asda gets its wish, and is allowed to radically step up its opening programme, remains to be seen but Mr Bond is leaving little to chance.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive