Asda sales remain under pressure

UK supermarket chain Asda posted another fall in sales today as it continues to grapple with testing conditions for the industry.

The UK’s second biggest grocer saw like-for-like sales drop 0.4% in the second quarter of the year, as falling food price inflation hammered sales across the supermarket sector.

Asda, which is owned by US giant Wal-Mart, has had a tough start to the year after suffering its first sales fall for four years, of 0.3%, in the first quarter.

Wal-Mart International president and chief executive Doug McMillon warned trading conditions were likely to remain tough.

He said: “Asda’s customers are facing recently announced tax increases and cuts in government spending. These are likely to cause our UK customers to face a challenging 12 to 18 months.”