Asda chief executive Andy Clarke has blamed rivals' "unsustainable" promotions in the last quarter of 2014 for the dip in sales the company suffered. Like-for-like sales fell by 2.4 per cent over the period for Britain's second biggest grocery retailer, the Telegraph reports.
The slump, which was during the busiest time of year for retailers, meant sales fell by one per cent compared to 2013, the first time sales have decreased in six years.
And Clarke says its "struggling" rivals (namely Tesco, Sainsbury's and Morrisons) offering money-off vouchers at the time that is to blame. Customers were tempted by the considerable deals, some of which offered a £10 discount on every £40 spent.
Clarke, however, has defended the company saying that although sales were down, performance remained solid in what he called a "tough market."
Clarke also insisted that voucher schemes like the ones offered by Tesco are not sustainable over long term "“You can only give away £10 notes for £9 for so long,” he said, adding "eventually sanity takes over from vanity."
Asda is part of the Walmart Group, and plans to rebrand its stores to reflect the Walmart image this year, including changing its slogan and logo.
