Asda expects click & collect orders to treble by 2019

Click & collect is helping drive growth at Asda, with the grocery retailer saying on Thursday that the service now accounts for 10% of all online orders.

Speaking at an event in London, as the company revealed that like-for-like sales excluding petrol grew by 0.5% in the ten weeks to 30 June, Asda CEO Andy Clarke and chief financial officer Alex Russo suggested the business was making progress in its aim to lead the online grocery market in the UK.

The ability to order via the web and collect in-store is viewed as a key business strategy in the years ahead, too, with Asda predicting that 30% of all eCommerce orders will be picked up in supermarkets by 2019. Some 20,000 Asda customers are already using the service, each week.

In recognition of changing shopper requirements, Asda recently extended by four hours the period its customers can collect their shopping on a Sunday, which has reportedly resulted in a 20% uplift on that day's orders. It was also noted that Asda now accounts for 18.4% of the online grocery market in the UK.

Clarke said: "I am pleased with our performance in the quarter and our business has shown that it is well positioned to meet the demands of a challenging market.

"However, I've been in this business for too long to measure success by quarters and we remain on a long-term journey. Innovation, low prices and customer service remain at the heart of our business and over the coming months and years we will continue to implement and build on this successful strategy as we constantly look at new and improved ways to run our business."

Competitive pricing among the UK's four largest supermarket groups – Tesco, Asda, Sainsbury's and Morrisons – with recent Kantar Worldpanel data for the 12 weeks ending 20 July showing that grocery price inflation fell for the tenth successive period, to stand at 0.4%.

The battle to bring down prices, combined with deflation in the price of staple items such as vegetables, milk and bread, has contributed to market growth falling to 0.9% – the lowest figure for ten years.

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Kantar Worldpanel