This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-43127923

The article has changed 6 times. There is an RSS feed of changes available.

Version 2 Version 3
Asda sales rise on strong Christmas Walmart shares slide as online sales slow
(about 2 hours later)
Asda has reported rising sales in the final months of last year and said it had a strong Christmas trading period. Walmart shares have fallen 10% after the world's biggest retailer reported disappointing online sales figures for the Christmas period.
It reported a 0.5% increase in like-for-like sales - the most closely watched measure of sales, which strips out the effect of new stores. Online sales were 23% higher in the three months to December.
It is the third quarter of sales growth for Asda, which had previously seen three years of falling sales. That was less than half the growth recorded in the previous quarter and lower than in the same period of 2016.
Asda is owned by Walmart, which reported a 2.6% increase in like-for-like sales during its fourth quarter. Asda, Walmart's UK supermarket, reported a 0.5% rise in like-for-like sales - its third consecutive quarter of sales growth.
However, the US retail giant saw profits fall 42% to $2.2bn (£1.6bn). While sales at Walmart's US stores rose by a better than expected 2.6% in the fourth quarter, net profit sank 42% to $2.2bn (£1.6bn).
Asda credited its low prices and an improved customer experience for its rising sales. The retailer said its online revenues totalled $11.5bn but were loss-making. Chief executive Doug McMillon said e-commerce losses would be "about the same" for 2018.
Walmart chief executive Doug McMillon said he was encouraged by the performance, but said there was "more work to do" at Asda. It plans to spend more on Walmart.com and cut back on marketing for its Jet.com site, which aimed at younger and better off shoppers.
Bryan Roberts, retail analyst at TCC Global, said the company "played a good game over Christmas". Walmart paid $3.3bn to buy Jet.com in 2016.
"During visits, we've seen a marked improvement in service levels and sharper all-round availability," he said. Mr McMillon said he was encouraged by Asda's continued recovery, but said there was "more work to do".
Family focus Bryan Roberts, retail analyst at TCC Global, said the company "played a good game over Christmas", adding: "We've seen a marked improvement in service levels and sharper all-round availability."
In recent years, Asda has been a laggard among the big supermarket chains. It has also suffered from the growth of Aldi and Lidl, which compete fiercely on price. Asda lost its place as the UK's second-biggest supermarket to Sainsbury's in late 2015 and the likes of German discounters Aldi and Lidl have also eaten into its market share.
Mr Roberts said these latest results hinted at a return to form. Mr Roberts said the latest sales figures hinted at a return to form.
"In its heyday, Asda really appealed to younger families. Its supermarkets were fun places to be, with layouts designed to delight young children in particular," he said. "In its heyday, Asda really appealed to younger families. Its supermarkets were fun places to be," he said.
"It's lost some of that spirit over the years, but its recent seasonal campaigns - such as at Christmas and Halloween - show it still has that capability in the locker. "It's lost some of that spirit over the years, but its recent seasonal campaigns - such as at Christmas and Halloween - show it still has that capability in the locker. A focus on recapturing a year-round family appeal could catalyse its ongoing recovery."
"A focus on recapturing a year-round family appeal could catalyse its ongoing recovery."
Headwinds
The results from Asda's parent company, Walmart, disappointed some analysts.
Online sales grew 23% - a sharp slowdown on the previous quarter, when it recorded growth of 50%.
Also, the company's forecast for profits this year was below the level some investors were expecting.
Walmart has headwinds to contend with. In January, it promised to raise wages, while it is also striving to match Amazon's prices.