Asda, Britain's third biggest supermarket group, posted a 5.3% decline in underlying sales in the three months to the end of June on Thursday, as it continues to underperform its rivals.
The group, which is majority owned by Mohsin Issa and private equity firm TDR Capital, said total revenues excluding fuel fell by 2.2% to 5.3 billion pounds ($6.74 billion).
Asda is struggling to keep up with industry leader Tesco (TSCO.L) and No. 2 Sainsbury's (SBRY.L), which analysts have blamed on Asda's ability to compete being hampered by its high debt levels.
Asda said on Thursday its net debt at the end of June was 3.9 billion pounds and it remained committed to further de-leveraging.
It said it would invest in core grocery lines, improving efficiencies, adding more staff hours to ensure shelves were replenished faster, and growing its customer loyalty programme to drive a return to growth.
($1 = 0.7866 pounds)
