2013 results show positive year for Asda
Strong operating profit
In 2013, Asda's operating profit increased by 18.2% to £993.9 while underlying operating profit grew by 5%. The Asda income tracker for the year showed that customers' weekly discretionary income increased by £1 on the year before, creating a challenging environment in which Asda traded well by strengthening its price strategy and 'We Operate for Less' programme. Profit after tax for the retailer grew strongly, up 29.8% to £762.9.
468,000 sq ft of space added
Asda increased its estate by 468,000 sq ft in 2013, adding a total of 15 stores; eight less than the year before. New space comprised of six supermarkets, five superstores, two Asda Living stores, a home shopping centre and a stand alone petrol filling station (PFS). The addition of a new home shopping centre reflects the growth of Asda's online operations while the new PFS represents part of Asda's five year strategy.
Focus on price
Asda's focus on price strengthened in 2013 and continues to be a clear priority for the retailer into 2014. 2013 saw Asda enter its second year of Price Lock and expand into new categories while also using its Asda Price Guarantee to reassure customers of its competitive prices against competitors.
Source: retailanalysis.igd.com
