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An increase in the number of middle-class customers at Asda has helped the Wal-Mart-owned supermarket to strong sales growth.
Reporting a 6.9 per cent increase in like-for-like sales excluding petrol, Asda said it had benefitted from an rise in the value of the average basket and an increase in customer numbers “in particular AB shoppers”.
Judith McKenna, chief financial officer, said that wine, fresh meat and the “extra special” range were performing well despite the recession. Customers are also reverting to old-fashioned domestic management by stocking up once their salaries are paid, she added.
“You’re seeing slightly higher peaks at month-ends, with bigger baskets of goods. People are buying things that will last through the week”, she said.
“Lots of people are buying a joint of meat, getting a meal out of it on the Sunday and having the leftovers on the Monday.”
Recent years have seen a trend towards customers favouring greater convenience, at the expense of the weekly shop.
Asda also added further evidence that customers are dampening the effects of high food prices, after the last year’s soaring food inflation, by buying selectively.
“Customers are being really canny, making common-sense decisions, seeking out value and cutting out waste”, Ms McKenna said.
Sainsbury’s yesterday said its customers were “dialling out” of inflation by switching from comparatively expensive proteins such as pork and beef to chicken.
Asda, which is gaining ground on market leaders Tesco according to the latest industry figures and Nielsen and TNS, said growth in food had been “particularly strong”, implying like-for-like growth in non-food was below the 6.9 per cent headline figure.
But it added that certain “iconic” items were selling well. Some 250,000 women’s coats were sold at £15, Ms McKenna said.
Asda's parent, Wal-Mart Stores reported a 7.5 per cent increase in sales to $97.63 billion (£66 billion) for the three months to the end of October. Profit from continuing operations rose to $3 billion from $2.85 billion.
Lee Scott, the president and chief executive, said: "Despite economic difficulties around the world, we achieved solid sales and earnings growth and we are optimistic about the upcoming holidays. At a time when our customer is feeling the pressure of a tough economy, Wal-Mart's price leadership is more important than ever."
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