Asda data has revealed that family spending power improved for the sixth consecutive month in November, but at a much slower rate than seen previously.
The Asda Income Tracker showed the average UK family had £146 of weekly disposable income available to them in November 2012 – £1 a week better off than the same month last year.
Although this is the sixth consecutive month of annual growth, it is a slowdown from the £4 year-on-year boost seen in September and £12 a week less than two years ago.
Asda said inflation is expected to be kept elevated next year by food and utility price increases.
Food products were the largest contributor to increases in the cost of living in November, with prices rising over the past year by 3.9%. This is the fastest increases in food prices since April 2012 and reflects poor crop yields due to bad weather this year.
Asda president and chief executive Andy Clarke said: “2012 has been a mixed economic picture for families, with improvements in disposable income seen during the summer months almost wiped out by the rise in commodities and little or no income growth. However we have also seen stabilisation of year-on-year income growth, which is positive to see.”
Separately, Asda said it is leveraging links with parent company Walmart’s sister companies by exporting George clothing and some own-label food products to Japan and South America. Asda is also looking to export some general merchandise lines to Canada.
Clarke said Asda is still considering whether to sign up to the Office of Fair Trading’s new guidelines on price promotions introduced last month.
- Asda is rolling out its Disney shop-in-shops. The retailer has three Disney-branded areas in stores featuring character-branded clothes and toys as well as play areas for children. Clarke said the grocer will put zones in further stores next year. Asda is already the largest retailer of Disney-branded clothes in Europe.