Asda Sales Flat

Retail giant Wal-Mart continued to show the impact of the tough UK market when it revealed same-store sales at Asda had failed to grow.

As well as flat sales, Wal-Mart said the market share of the UK’s second biggest grocer had remained unchanged during the three months to October 31.

It came as the group announced plans to recruit nearly 3,000 new staff across the UK, including a major recruitment drive in Northern Ireland.

Asda spokesman Nick Agarwal said the like-for-like sales performance was better than that of many rival chains. It followed a “broadly flat” performance in previous months.

Rate cut hope

The prospect of another cut in interest rates received a boost yesterday when data showed an unexpected fall in factory gate prices.

Output prices fell by 0.1% between September and October, taking the annual rate to its weakest level since June and easing concerns about inflationary pressures.

This compared with a 0.7% rise the previous month and contrasted with analysts’ forecasts of another hike.

The figures from the Office for National Statistics (ONS) also showed manufacturers battled with higher input prices but found it difficult to pass them on to their customers.

Takeover tonic

Drug delivery group SkyePharma conceded it may put itself up for sale after receiving a takeover approach.

The London-based firm has asked investment bank Lehman Brothers to carry out a strategic review that could see it sell off assets or invite offers for the company as a whole.

Shares jumped 6% to value the firm at pounds 368m as analysts speculated that a private equity group rather than a rival drug maker was behind the approach.

Magic Majestic

Wine warehouse chain Majestic continued its record of strong growth after a 5.5% rise in like-for-like sales and an 18% jump in profits.

The group, which operates from 124 sites, said it had bucked the challenging retail environment by communicating more frequently with customers and introducing a series of new shorter promotions.

Strong demand for wines from Spain, California, Chile and Argentina also helped lift sales in the half year to pounds 80.8m, from pounds 74.6m last time. Profits for the six months to September 26 reached pounds 5.9m.