Asda, a prominent supermarket chain in Britain, has experienced a notable 2.7% increase in its quarterly sales. This growth can be attributed to the surging popularity of online grocery shopping, as more and more consumers are turning to e-commerce platforms for their shopping needs. It is worth noting that this performance follows Asda’s previous quarter growth of 3.8%.

The third quarter has been particularly remarkable for Asda, with a staggering 72% rise in net sales online for the period ending September 30. This surge in online sales has played a significant role in driving the overall growth of the company. Furthermore, Asda has also witnessed an increase in its operating income, which can be attributed to improved gross profit rates and a decrease in operating expenses.

Currently, Asda is under the ownership of Walmart, a retail giant from the United States. However, a recent deal has been struck between the Issa brothers and private equity group TDR Capital to acquire a majority stake in Asda. This deal, with an enterprise value of $8.8 billion, is set to reshape Asda’s ownership structure, with Walmart retaining a minority stake in the company. The finalization of this deal is contingent upon regulatory approvals and is expected to take place in the first half of 2021.

Despite the positive quarterly performance, recent industry data suggests that Asda lags behind its major competitors in the UK. This can be partly attributed to the absence of local convenience stores, which have gained popularity among consumers during the ongoing COVID-19 pandemic. These convenience stores have provided customers with a quick and hassle-free way to purchase essential items.

Overall, Asda’s growth in quarterly sales is a promising indication for the company’s future. The surge in online sales showcases Asda’s ability to adapt to shifting consumer preferences and embrace the digital transformation within the retail industry. As the deal with the Issa brothers and TDR Capital progresses, it will be intriguing to see how Asda evolves within the highly competitive supermarket landscape.

Useful links:
1) Asda official website
2) UK e-commerce market statistics