Asda has warned that the government's budget measures will cost it £100 million and could hinder its ability to raise wages or hire additional staff. This represents a significant burden as the company struggles with declining sales.
Stuart Rose indicated that the unforeseen £100 million expenditure forces Asda to reconsider pricing strategies, noting, 'You cannot rule out the fact there will be some inflation' in the wake of the national insurance changes.
Rose highlighted the dilemma, stating, 'We want to attract good staff, but we have to look very, very hard to affordability,' reflecting the challenges posed by rising costs and the necessity for careful financial management.
Asda's revenues have been impacted, with a reported 2.5% decline in total revenues to £5.3 billion over the past quarter, alongside a 4.8% drop in like-for-like sales, demonstrating the severity of the company's market challenges.
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