Asda delivered its third consecutive quarter of sales growth after three years of declines as it cut prices and improved customer offerings.
The UK supermarket chain, owned by Walmart Inc (NYSE:WMT), said like-for-like sales rose 0.5% in the fourth quarter, with strong Christmas trading.
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However, the figures marked a slowdown from the 1.1% growth reported in the previous quarter.
Asda and the other so-called ‘big four’ supermarkets, including Tesco PLC (LON:TSCO), J Sainsbury PLC (LON:SBRY) and Morrison Supermarkets PLC (LON:MRW), have been faced with rising competition from discounters Aldi and Lidl.
Walmart chief executive Doug McMillon said while Asda has improved sales, there was plenty more work to do in the UK.
"In the UK, Asda delivered positive comparable sales again this quarter with particular strength during the Christmas period. We're pleased to see customers responding to our investments in the value proposition through improved in-store experience scores and the strengthening of our private brand and online grocery offerings," he said.
"We know we have more to do in the UK, however, we are encouraged by recent results in key areas of our business."
Walmart reported a 2.6% rise in like-for-like sales in the fourth quarter but profits fell 42% to US$2.2bn.