For the first time this year, Asda has experienced an increase in sales as its emphasis on value drew 400,000 additional customers from other supermarkets.
The grocery behemoth reported that like-for-like sales increased 4.7% for the three months ending in September (Q3 2022), its greatest quarterly performance since Q1 2021, with total revenues (excluding fuel) of £5.2 bn.
The improvement comes as Asda intensifies its commitment to helping families through the current cost-of-living challenge.
Asda credited the resumption of growth to the expansion of its cost-effective Just Essentials value offer over the course of the quarter, bringing the total number of products available to 270.
The third-largest supermarket in the UK indicated that new consumers who have switched from "more expensive supermarkets" account for almost 70% of the spending on the assortment.
With a "Dropped and Locked" price freeze across 250 staple products until the end of 2022, prices are also maintained low elsewhere in the supermarket's selection.
Mohsin Issa, a co-owner of Asda, stated: "Families across the UK are facing increasing financial strains, and they are turning to us for assistance. It's crucial now more than ever that we live up to Asda's long-standing reputation for giving customers excellent value.
We firmly believe that Asda will always be the most cost-effective traditional supermarket, even as we roll out innovative value programs like Asda Rewards that may immediately help customers stretch their budgets.
During the quarter, the new Asda Rewards loyalty program, which rewards consumers with money off their purchases rather than points, was also implemented in all physical locations and online. 2.7 million users are active right now.
The grocery store also finalized the purchase of 132 grocery retail locations from The Co-op over the three-month period, accelerating its goal to penetrate the convenience industry.
Asda Express, a new standalone convenience product, was also made public. The first Asda Express store opened in Sutton Coldfield last week, and 30 more are scheduled to open by the end of 2022.
Mohsin Issa continued, "Even though we have more than 600 stores around the UK, there are still many towns without an Asda nearby.
"We want to change this and use these additional outlets to reach even more people with Asda's fantastic products and value."
With more than a million slots available for click and collect and home delivery the week before Christmas, the supermarket has increased its capacity for online delivery in the lead-up to the holiday.
Along with hiring permanent employees, it will also hire up to 6,000 temporary workers over the hectic holiday season.