Asda revealed like-for-likes, excluding fuel and VAT, edged up 0.7% as it increased market share in its second quarter to June 30.

Excluding fuel, net sales advanced 3.2%, which is owned by US giant Walmart.

Asda chief executive Andy Clarke said he was “proud” of the retailer’s performance, which has been driven by lowering more prices and improving the quality of its products as part of its ‘real value’ strategy.

“Our ‘real value’ strategy is paying dividends, and enabling us to grow the business in a sustainable way,” added Clarke.

Walmart international president and chief executive Doug McMillon said the Asda’s sales had been strong in food, clothing and electronics. Sales at its online business surged 22.1% in the quarter.  

He revealed that Asda’s gross profit rate has “increased slightly” against last year as a result of a tight rein on stock across non-food. Expenses increased slower than sales as the grocer continued to “develop sustainable efficiency savings through process improvements”.

“The UK had a strong second quarter, growing sales, and growing operating income faster than sales, excluding fuel,” he said.

Asda has invested £113m over the past two years to develop its food ranges

Clarke said: “Asda has and always will be the price leader, but we know that a tighter budget does not limit mum’s desire to give her family the absolute best. We’re redefining what real value means and showing that price and quality aren’t mutually exclusive.”

Parent company Walmart today posted a 2.2% advance across store sales in the 13 week period to July 27, delivering its fourth consecutive quarter of positive like-for-likes. Walmart’s net sales for the second quarter were $113.5bn (£72.28bn), an increase of 4.5% year-on-year.

Walmart Stores president and chief executive Mike Duke said: “We are also pleased with the sales and profitability of Walmart International.

“Our goal is to achieve more balance between profitability and returns, and we will do that by improving operational and sales productivity.”