Asda sales slump continues amid 'fierce competition'

Supermarket Asda has reported a 5.7% fall in like-for-like sales during the first quarter of the year after facing "fierce competition".

It follows a 5.8% slump sales during the previous quarter, which was Asda's biggest sales fall on record.

The chain, which is owned by US retailing giant Walmart, said UK sales "continue to struggle".

Walmart also reported falling profits. Net income for the first quarter fell 7.8% to $3.08bn.

"The UK continues to struggle, due primarily to fierce competition," said Walmart's chief financial officer Brett Biggs.

"Improvements in price and product availability throughout the quarter were not enough to overcome traffic and food volume declines in our large format stores."