Asda chief financial officer Judith McKenna said the stores on the south coast were performing particularly well. "We've had to do some cute things quickly to make sure we have the right availability as the seasonal trading patterns were skewed."
For the three months to June 30, underlying growth was 6 per cent, up from 5 per cent in the first quarter. Total sales excluding fuel increased in the "high single digits".
The Wal-Mart owned retailer performed strongly across Asda's private labels, Smartprice and Extra Special, which were up more than 20 per cent over the same period last year. The grocer is also seeing strong growth in its frozen foods.
McKenna said: "We're seeing growth across all our ranges and what we are finding is that customers are choosing where to make compromises, allowing them to manage their own inflation."
She added that it is difficult to get a handle on food inflation figures as everyone measures it differently. She said Asda's food inflation is "nowhere near the figures the CPI is quoting".
Asda said it had not lost any market share to the discount supermarkets, pointing out its market share has grown at its fastest rate for several years, up 0.6 per cent year on year, according to TNS. Discounters in total are growing at 0.4 per cent.
McKenna said Asda is appealing to the traditional value oriented shopper and to premium shoppers. Its customer base continues to broaden with 25 per cent of all new customers in the quarter coming from the AB demographic group.
She also pointed out that Asda's London stores have performed particularly well as they have invested in better service and availability. "Once customers try us, they're staying with us," she said. "And they're not just buying the special offers, they're shopping a full basket."
However, McKenna warned: "We won't be complacent, we've got tough conditions ahead of us and must continue to focus on driving costs out of our business so that we can continue to offer customers value for their hard earned money."