Is Asda's biggest weapon a lack of gimmicks?

6 January 2014

ASDA-logo This Christmas, Asda have had a great time both online and in their stores. A record 4.8 million of us shopped with them on 23rd December while online sales went beyond £5m in a day on two separate occasions in the build-up to Christmas.

What is the secret of Asda's success? They say: "Our strategy was to focus on gimmick-free, simple every day low price transparency for our customers and to hold our nerve when it came to the sales. This was against the backdrop of many other retailers vouchering heavily and starting their sales early, and resulted in us seeing record footfall over the Christmas period."

The other supermarkets haven't released their figures yet. Sainsbury's will announce theirs on Wednesday while Tesco will talk about their margins on Thursday.  Analysts reckon that Tesco will announce a fall in UK sales, excluding fuel and VAT sales tax and Sainsbury's look like they'll have the same figures as previous.

Online, the company are really making progress with Asda having their biggest ever online Christmas and 28% of grocery sales were through the Asda smartphone app. Asda also note that they'll be investing £1bn in prices and £250m in improving product quality, presumably to stave off competition from Lidl and Aldi.

While this seems rather boring, there is something we can take from this - if you want a fuss-free shopping experience and better bargains than elsewhere, it certainly seems that Asda is the shop to go to (out of the biggest guns, at least).

If the competition is losing ground, then they'll also have to start offering better deals and service, which is good news for everyone.

TOPICS:   High Street News   Supermarket

9 comments

  • rash
    Damn right it is! They don't try to con people with dodgy offers that are actually more expensive like Tesco do! The recession kicked in and people started to look more closely at their shopping and realised Tesco on the whole are more expensive AND their value stuff is poorer quality than Asdas. Asda on the other hand just focus on actually being cheaper.
  • samuri
    @rash, you fucking prick!
  • Gordon B.
    Ah, we all know where samuri works stacking shelves now. Should have worked a bit harder in school huh?
  • LL J.
    Is this the same Asda that ran the most heavily publicised Black Friday campaign in the UK? Do they think we've got the memories of fucking goldfish?
  • Bif M.
    This story is a load the of bollocks. It is written as though Asda has had some kind of great Xmas profits success and have blown the rest of the competition out the water. Certain things have been taken out of context from the original article that you copy n pasted this from. It was purely about numbers through the door and percentages of people shopping at Asda online which means fuck all if there not spending much when in Asda or online. Why not wait till the profit figures are actually realeased and do a copy n paste comparison then. Pointless announcement by Asda and a pointless article/Asda advert.
  • David P.
    I tried ASDA's online shopping once; they silently cancelled the order as they decided they didn't like the voucher code I used, without bothering to actually tell me or anything - had I been specially waiting at home for the delivery, I'd have been seriously pissed off. Great customer service, that. In-store, our local ASDA seems a completely unorganised mess and full of chavs - oddly, the Tesco nearby seems much nicer. I'll stick to Tesco, thanks.
  • Profanity P.
    samuri, Mind your language, it's not needed!!! potty mouth
  • Bogbrush
    Whilst Asda may be cheaper for smartprice deep fried pizza and microwave kebabs, the quality of their fruit and veg leaves a lot to be desired when compared to more reputable outlets.
  • Bittermelon
    Think their gimmick is advertising that something is on sale for longer than it isn't on sale.

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