Asda has warned that its return to sales growth has been delayed due to disruptions caused by Walmart’s split from its IT systems. The supermarket chain saw a 2.6% decline in like-for-like sales in the latest quarter, compared to a 1.1% increase in the previous quarter. Walmart’s decision to split from Asda’s IT systems has led to challenges in managing inventory and pricing.
Despite facing challenges with its IT systems, Asda remains committed to its turnaround plan. The supermarket chain has been focusing on improving its online operations and expanding its grocery delivery service to compete with rivals like Tesco and Sainsbury’s. Asda’s CEO, Roger Burnley, expressed confidence in the company’s ability to adapt and thrive in the competitive retail market.
The split from Walmart’s IT systems has also impacted Asda’s plans for its clothing brand, George. The company had initially planned to expand George into new categories, such as sportswear and athleisure, but the disruption caused by the split has delayed these efforts. Asda is now working to resolve the challenges and resume its growth trajectory in the coming months.
Read more at Investing.com: Asda warns return to sales growth delayed by Walmart IT split disruption
