Asda reported an edge up in like-for-like sales today. Retail Week takes a look at where Asda sits against its rivals.

If Tesco’s chief executive Philip Clarke is riding a wave of change sparked by his £1bn revival strategy, then Asda boss Andy Clarke is in calm water deciding which yacht will best suit today’s shorts. Asda’s plan, passed down by owner Walmart, is to stick steadfastly to a strategy of Every Day Low Pricing, a tactic whereby the retailer offers continued low prices while largely avoiding large-scale promotions.

“We have been the price leader for 30 years and we will continue to be that,” says Andy Clarke, in positive mood after revealing a second quarter 0.7% uplift in like-for-like sales in a market he describes as “very tough”. This followed a 2.2% uplift in the first quarter.

Clarke said he was “proud” of the result and that the grocers’ growth is down to carefully studying customer habits and delivering good quality, low priced food and non-food.

The latter cannot be doubted. A clutch of awards and assurances it is the lowest priced grocer have followed a two year £113m investment in food quality which includes a partnership with cookery school Leiths which have resulted in premium beef bourguignon ready meals joining Asda Smart Price crisps in the shopping trolley.  

Asda has carried the momentum on since Clarke declared that it had “won” Christmas. Kantar Worldpanel data for the 12 weeks to August 5 this week revealed that it had grown 6.2%, the strongest growth of the big four.

However, in the most recent four weeks to August 5 Kantar data shows that Tesco showed the strongest growth at 5.1%, ahead of Asda, backed up by Nielsen data last week. This will secretly worry Andy Clarke who must’ve been enjoying a first half of the year when Tesco took a kicking from commentators and analysts that even Jackie Chan would struggle to recover from.

But the UK’s largest retailer is planning a comeback, to make its stores “warmer” and introduce more staff to help customers. Once complete, Tesco’s stores will rival Asda’s and, tellingly, Morrisons on key metrics including fresh food and store standards. Tesco may wrest back market share from Morrisons although Sainsbury’s, at the moment at least, appears to have hit a sweet spot of combining ‘value and values’ to win shoppers.

Andy Clarke gives the Kantar four week data short shrift. “It’s pretty clear. They are reporting numbers which tends to show what’s happening in the market. We are driving continued sustainable growth,” he says.

Moreover, Asda’s relative performance has been difficult to measure. The change to its reporting year in line with Walmart means that today’s results only cover until the end of June while Morrisons interims in early September will be more up to date. Moreover, the £778m acquisition of Netto will begin to annualise over the coming months so any significant changes in market share will be organic.

Andy Clarke, finance director Rob McWilliam and new marketing chief Stephen Smith were all unequivocal in their criticism of short term deals elsewhere in the market at a press conference in London today.

“We strongly contrast more distinctly than ever with elsewhere in the market. There have been an enormous number of promotional gimmicks to disguise a weak price position,” says McWilliam.

Asda’s position is resolutely business as usual. The grocery market is tough – and not just the ‘tough’ many retailers use as an excuse to hide poor performance – with falling volumes and extreme budgeting.

Asda may be a nose ahead but with its archrival on the comeback trail, the Leeds-based grocer will hope business as usual is enough to keep shoppers coming back.