Asda, the UK supermarket chain owned by Wal-Mart Stores, is forecasting a “tough Christmas” after reporting that revenue growth slowed in the third quarter.

Sales at stores open at least a year rose 0.3 per cent, excluding fuel, in the 13 weeks ended September 29th, compared with a 0.7 per cent gain in the prior quarter, the chain said.

Asda has guaranteed it will be 10 per cent cheaper, cut fuel prices and has revamped its own-brand labels such as “chosen by you” to lure customers.

The grocer maintained a 17.5 per cent market share in the 12 weeks ended October 28th, according to Kantar Worldpanel data, while discount chains Aldi and Lidl increased share.

“The market is still very tough; it’s challenging,” Asda chief executive Andy Clarke said at a London press conference yesterday. – (Bloomberg)