Walmart-owned Asda has reported figures for Q1 2016 showing like-for-like sales have dipped by 5.7% for the 13 weeks 30 March, and a 5% drop in the number of shoppers visiting its stores.
The downward turn follows a 5.8% decline in Q4 of 2015 - its biggest quarterly sales fall on record - and an overall like-for-like decline of -4.7% in 2015.
Brett Biggs, chief financial officer at Walmart, said, 'The UK continues to struggle, due primarily to fierce competition. Improvements in price and product availability throughout the quarter were not enough to overcome traffic and food volume declines in our large format stores.'
The chain said it remained focused on its revival plan, Project Renewal, which is seeing an investment of £500m in cutting prices for shoppers in a fightback against its Big Four rivals and discounters Aldi and Lidl.
It added it was on track with moves to slash costs, having announced in January it would cut hundreds of UK jobs, largely impacting its Leeds head office, which employs 3,000 people.
Andy Clarke, president and chief executive, pledged to show shoppers a 'new Asda face' through a revamped marketing push, led by a deal with TV chef James Martin. The partnership will see Martin, who recently left the Saturday Kitchen show, provide recipes and cooking advice to families on a budget.