Asda reported a 5.8 per cent fall in sales as it announced its quarterly and full year figures.
Fierce competition is continuing among the UK’s major retailers, with the biggest four supermarkets fighting for market share as discounters Lidl and Aldi take a bigger cut of UK retailing.
Announcing the figures, reported to be Asda’s worst quarterly sales performance, the Walmart-owned chain pointed to significant investment in low prices.
In the 13 weeks to January 1, 2016, like-for-like sales were back 5.8 per cent as full year like-for-like sales for the year to December 31, 2015 fell 4.7 per cent.
Andy Clarke, president and chief executive at Asda said: "2015 was a difficult year. The UK retail market is continuing to undergo significant and permanent structural change, competition in our sector has been fierce and our market share has come under pressure.
"In that context, our results for the year have been commendably stable, balancing investment in our customers with disciplined financial management in a period when many of our competitors have suffered severe falls in profitability."
He claimed the retailer had steered a ’careful course’ through a very turbulent period.
There appears to be no let-up in the supermarket price war in the coming months as Asda pointed to the likelihood difficult conditions would continue. It said it had a clear strategy in place to reaffirm the retailer’s position as the UK’s ’lowest price full range supermarket business’.