Is Asda's biggest weapon a lack of gimmicks?
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.