Asda sales still falling but Q1 is strong for George fashion line
Asda 's Q1 trading update may have shown that it still has lots of work to do as far as growing in the UK grocery sector is concerned, but it also showed that its fashion ops remain a bright spot, as they have been for some time.
The retailer said that it saw 'green shoots' in its overall sales performance, but with a 'long way to go' as far as its food sales are concerned. And as for George at Asda, the fashion and homewares brand 'outperformed' the market.
The retailer recorded total revenue of £5 billion (excluding fuel), a 5.9% drop year-on-year. This includes a negative 1.1% impact of an extra day's trading in Q1 2024 due to the leap year.
Like-for-like sales in the four months to the end of April, adjusted to include the peak Easter trading period, declined by 3.1%. This actually represents a 1.1% improvement on Q4 2024. And Asda has seen further improvements in its like-for-like performance in May.
We're told that George at Asda specifically 'delivered strong results, with like-for-like sales up 3.5%, outperforming the fashion market by 2% on volume. The combination of style, quality and unbeatable value continues to set George apart from other fashion brands in the supermarket sector'.
The company has certainly been going all out to boost George overall and in celebration of the supermarket chain's 60th anniversary, supermodel Yasmin Le Bon was recently unveiled as the face of George's summer collection. It's also trialling a standalone George branded store in Leeds at present and has dropped a second collection in its Gym locker fitness range.
It's certainly interesting that George overall is in positive territory even as sales in Asda's major supermarkets have been falling. It appears that shoppers seem to be prepared to travel to Asda stores specifically for the George offer even if they're not also buying their groceries at the same time.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
2 days ago
- Fashion Network
May footfall fell flat but June looks promising, says MRI Software
After a busy Easter/good-weather-fuelled April lifting spring, retail footfall was much more sedate in May. Last month, retail footfall fell marginally, by 0.4%, compared to a year ago in all UK retail destinations, according to MRI Software's latest data. The dip was driven by a 1.1% fall in high street activity, but at least shopping centres and retail parks bucked the trend with marginal rises of 0.2% and 0.5%, respectively. Month on month, footfall also dipped (-0.1%) in all UK retail destinations. And it may have been worse had it not been for the schools' half-term holiday at the end of the month 'driving an influx of visitors to retail stores and destinations', noted the report. Weekend footfall also fell for the second consecutive month, by 1.8% overall compared to 2024 levels. However, weekday footfall in May rose slightly (+0.3%) compared to last year 'which continues to support the changes in consumer behaviour; as the return to office remains strong, it may suggest that people are also visiting retail stores and destinations on the days they go into the office'. This is further reinforced by MRI Software's 'Central London Back to Office ' benchmark that recorded a 2.4% uplift in weekday activity. The slight rise last month in shopping centres and retail parks was 'further evidence that consumers are likely more drawn towards the convenience factor of all-in-one destinations that offer more than just retail'. Larger shopping centres (over 500,000 sq ft) benefitted greatly from the half-term boost, recording an 8.4% increase in footfall from the week prior, 'and again indicates the attraction of retail destinations that offer leisure, hospitality and retail under one roof'. Info from MRI Software's 'Insights from the Inside' also saw 61.2% of retailers reporting lower sales during the early May bank holiday compared to last year, with 65.8% expecting softer trading through the half-term break. Also, rising operational costs are beginning to bite, 'and the knock-on effect is being felt at the till as higher prices are passed on to consumers, adding to the ongoing cost-of-living pressures' it said. And the forecast for June? With a packed calendar of music and sporting events, including Beyoncé's visit to London and the return of Wimbledon tennis, 'UK cities are expected to see substantial footfall surges if historical trends are anything to go by'. It added: 'Retail leaders are encouraged to analyse last summer's trends and ensure they are operationally ready to maximise this opportunity. As consumer habits continue to shift towards retail destinations that offer more than just shopping – a blend of retail with food, entertainment and experience may well remain front of mind for families. 'The challenge now is to sustain that momentum from the May half-term holiday into June and beyond.'
Fashion Network
2 days ago
- Fashion Network
May footfall fell flat but June looks promising, says MRI Software
After a busy Easter/good-weather-fuelled April lifting spring, retail footfall was much more sedate in May. Last month, retail footfall fell marginally, by 0.4%, compared to a year ago in all UK retail destinations, according to MRI Software's latest data. The dip was driven by a 1.1% fall in high street activity, but at least shopping centres and retail parks bucked the trend with marginal rises of 0.2% and 0.5%, respectively. Month on month, footfall also dipped (-0.1%) in all UK retail destinations. And it may have been worse had it not been for the schools' half-term holiday at the end of the month 'driving an influx of visitors to retail stores and destinations', noted the report. Weekend footfall also fell for the second consecutive month, by 1.8% overall compared to 2024 levels. However, weekday footfall in May rose slightly (+0.3%) compared to last year 'which continues to support the changes in consumer behaviour; as the return to office remains strong, it may suggest that people are also visiting retail stores and destinations on the days they go into the office'. This is further reinforced by MRI Software's 'Central London Back to Office ' benchmark that recorded a 2.4% uplift in weekday activity. The slight rise last month in shopping centres and retail parks was 'further evidence that consumers are likely more drawn towards the convenience factor of all-in-one destinations that offer more than just retail'. Larger shopping centres (over 500,000 sq ft) benefitted greatly from the half-term boost, recording an 8.4% increase in footfall from the week prior, 'and again indicates the attraction of retail destinations that offer leisure, hospitality and retail under one roof'. Info from MRI Software's 'Insights from the Inside' also saw 61.2% of retailers reporting lower sales during the early May bank holiday compared to last year, with 65.8% expecting softer trading through the half-term break. Also, rising operational costs are beginning to bite, 'and the knock-on effect is being felt at the till as higher prices are passed on to consumers, adding to the ongoing cost-of-living pressures' it said. And the forecast for June? With a packed calendar of music and sporting events, including Beyoncé's visit to London and the return of Wimbledon tennis, 'UK cities are expected to see substantial footfall surges if historical trends are anything to go by'. It added: 'Retail leaders are encouraged to analyse last summer's trends and ensure they are operationally ready to maximise this opportunity. As consumer habits continue to shift towards retail destinations that offer more than just shopping – a blend of retail with food, entertainment and experience may well remain front of mind for families. 'The challenge now is to sustain that momentum from the May half-term holiday into June and beyond.'
Fashion Network
6 days ago
- Fashion Network
Coach's hit handbag shows how less-expensive luxury is gaining ground
Ultra-luxury is losing its luster — and mid-tier competitors are capitalizing. Industry bellwether LVMH Moët Hennessy Louis Vuitton SE, which reported weaker-than-expected sales in the latest quarter, was accused of selling a Dior bag that costs about $60 to make for $2,800. Meanwhile, Tapestry Inc.'s Coach is cashing in on cool with its $495 Tabby bag — a viral hit that costs a fraction of a similar shoulder bag from Dior or Chanel. That's just one example of how mid-tier luxury brands are weathering the current economic uncertainty better than their ultra-luxury and fast-fashion counterparts, as consumers seek quality and value without the sky-high prices amid a weaker global economy. 'There's a bit of a backlash going on,' said Fflur Roberts, head of luxury goods at Euromonitor International. Consumers are questioning the true value behind the price, including how items are made and the cost versus what they're really worth, she said. As wealthy consumers trade down, mid-tier brands are performing increasingly well. Tapestry, which also owns the Kate Spade and Stuart Weitzman brands, recently raised its forecast for the year after reporting quarterly results ahead of analyst estimates. Amer Sports Inc., which owns premium sportswear brands Salomon and Arc'teryx, also increased its projections for the full year, while Michael Kors owner Capri Holdings Ltd. and Hugo Boss AG both outperformed market expectations. Ralph Lauren Corp. is another winner, offering a broad price range and maintaining appeal through its classic design, according to Bloomberg Intelligence senior retail analyst Mary Ross Gilbert. Same-store sales rose 13% in the three months through March 29, nearly double what analysts expected. Meanwhile, luxury giants Hermès International SCA and Gucci owner Kering SA joined LVMH in disappointing investors in the most recent earnings season, while privately-held Chanel Ltd.'s profit plunged. On the other end of the spectrum, fast fashion also struggling. 'We've seen a more difficult environment,' said BI senior analyst Charles Allen. Higher Zara prices and fewer H&M promotions are deterring shoppers, he added. Zara owner Inditex SA, Hennes & Mauritz AB and Primark, owned by Associated British Foods Plc, all reported slower growth or missed targets, while JD Sports Fashion Plc's same-store sales fell 2% in the first quarter and are expected to drop again. Tariffs — a key reason for the luxury slowdown — leave retailers targeting value shoppers little wiggle room. Uniqlo owner Fast Retailing Co. already warned these could hurt future earnings, while H&M said it may raise prices to offset the impact, which could push shoppers further away. Still, some consumers may be returning to stores. Primark US sales grew in April — partly due to the Easter holiday shifting to the month — after shrinking the previous two months, according to observed sales data collected by Bloomberg. Meanwhile, US wages continued to grow in April, and the country is still at a full employment level with the unemployment rate at 4.2%. US spending in April, however, ground to a halt. 'If people have money and see something tempting, they'll spend,' Allen said. 'People don't always behave how they say they will.'
