Asda sales and profits tumbled in 2016

Asda's like-for-like sales, excluding fuel, fell 5.7% in 2016, accounts filed to Companies House show - a steeper decline than the 4.7% seen in 2015.

The retailer’s market share also fell from 16.6% to 15.7%, according to Kantar data, as it struggled against the continuing rapid growth of Aldi and Lidl.

The latest Kantar figures, for the 12 weeks to 16 July, show that this has since fallen further to 15.1%.

Asda’s group revenues for the year fell 3.2% to £21.7bn, while profits were down 19.2% to £845.3m.

Kantar’s latest data shows that Asda’s sales are now growing at 1.0% – but this is the slowest rate among the top ten grocers.

Aldi’s sales, in contrast, grew 17.9% in the same 12-week period, while Lidl’s were up 19.4%. Tesco, Sainsbury’s and Morrisons each grew sales between 2.15 and 2.3% – behind both the industry average of 3.9%, and the rate of inflation, which is 3.2%.

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