Sales at UK supermarket Asda stall as new boss takes reins

Asda Q3 Sales Stall Amid Leadership Change and Market Headwinds

Asda's Third Quarter Performance and Leadership Transition

LONDON, Nov 13 (Reuters) - British supermarket group Asda reported flat third quarter like-for-like sales on Friday, highlighting the scale of the revival challenge facing new chief executive David Potts.

Leadership Change at Asda

• Asda, Britain's third largest grocer after Tesco and Sainsbury's, appointed former Morrisons boss Potts as CEO with immediate effect on November 3

Financial Results Overview

Total Revenue and Sales Performance

• Asda's total revenue, including fuel, for the 13 weeks to September 30 was £6.5 billion, up 3.1%

• Like-for-like sales were down 0.1%

Food Sales and Online Growth

• Food sales grew 0.1% as investment in price and availability continued to be felt

• "Like-for-like food sales returned to growth in Q3, online sales grew strongly and group sales increased, despite the challenging economic backdrop," Michael Gleeson, Asda's chief financial officer, said

Market Position and Competitive Landscape

• Industry data published on Tuesday showed Asda's share of the UK grocery market was 11.3%, down 30 basis points on the year

Operational Initiatives and Store Management

• Potts told Asda's 1,100 store managers earlier this week to open more staffed checkouts, spend more time on the shop floor and get more product on shelves, presented well throughout the day

• "We’re making it harder than it should be for customers to get what they want, move around the store and pay for their shopping. We need to change that," he said

Ownership Structure

• Asda is majority owned by private equity firm TDR Capital. Walmart has a 10% stake

(Reporting by James Davey; editing by Yoruk Bahceli)