Asda sales hit new low as competition and falling prices take toll

Asda owner Walmart today laid bare the scale of the challenge facing the supermarket's new boss Sean Clarke, revealing an eighth straight quarter of falling sales at the grocer.

Walmart boss Doug McMillon once again blamed fierce competition for the 7.5% sales decline in the three months to June 30. That compared to a 5.7% slump in the first quarter, then its largest ever recorded, and the 4.7% drop former boss Andy Clarke described as a "nadir" a year ago.

"In the UK, the competitive environment and food deflation continued to challenge the market, significantly impacting traffic and comp sales," McMillon said.

Asda's position as Britain's cheapest supermarket has been eroded by discounters Aldi and Lidl, which now have a combined 10% market share.

The Leeds-based retailer has attempted to fight back, investing £1.5 billion in lowering prices, but the efforts are yet to bear fruit.