Asda's Q1 sales down 3.9%, worst quarterly showing in more than 5 years

London

ASDA, the British arm of US retailer Walmart, reported its worst quarterly sales fall in more than five years on Tuesday, but insisted its long-term strategy was the right one.

Asda, ranked second by annual revenue behind Tesco among British supermarkets, has been hit by an industry price war and record food deflation. It warned that this year was shaping up to be even tougher than 2014, with the grocery market turbulent and shopping habits continuing to change.