UK retailer Asda has seen its like-for-like sales drop 4.5 per cent in the 13 weeks to 30 September, according to accounts filed on 17 November.
Commenting on the retailer's third-quarter performance, chief executive Andy Clarke said that sales volumes at Asda "remain under pressure from price deflation" and that an "intensely competitive background" remains throughout the food sector.
"Having said that, we have the financial strength and clear plan to sustain us through this period, while we take appropriate and considered action to further strengthen our competitive position."
Last month, Walmart-owned Asda launched Project Renewal, with which the retailer will seek to drive long-term, sustainable growth by simplifying its offering and refreshing larger stores.
Commenting on the results, Sophie McCarthy, a consultant at Conlumino, said, "Out of the Big Four, Asda is arguably the most exposed to the rise of German discounters, Aldi and Lidl, and to the general merchandisers, such as B&M and Poundland, as its value-led customer has been tempted away by even lower prices elsewhere.
"To its credit, Asda has recognised that and is responding to these challenges by concentrating not only on price, but also on ‘range, service and quality’ to broaden its positioning and improve its value-for-money reputation."
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