Asda CEO Andy Clarke today (16 May) hit out at the “gimmicky” and “unsustainable” promotions of its rivals and said the UK grocer’s “clarity” on prices was paying off.

The UK arm of Wal-Mart Stores pointed to its decision to cut the price on “everyday essentials” as a factor in its increase in like-for-like sales in the first quarter of its financial year.

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Clarke said UK consumers wanted “real price value”, instead of the spate of vouchering campaigns from the likes of Tesco and Morrisons and the “confusing” price comparison schemes introduced by retailers including Sainsbury’s.

“We’re not being distracted by the gimmicks in the market,” Clarke told reporters in London this afternoon. “We’ve stuck to a very clear price agenda. The customer is looking for real price value rather than yo-yo pricing.”

Clarke said Asda had extended the number of items it dubbed “essentials” and pointed to the “price lock” the retailer puts on some foods. The initiative sees Asda pledge to hold prices for at least 12 weeks. Milk, he said, had been kept at the same price for 43 weeks. The moves, he said, had helped Asda grow volumes in a market where sales volumes fell.

Asda saw like-for-like sales, excluding fuel and VAT, grow 1.3% in the 14 weeks to 12 April. The retailer said it included 14 weeks in its first quarter to ensure the first three months of its financial year and the comparable period in 2012 both included Easter trading.

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The retailer made no comment on its profitability. However, in its earnings call today, Wal-Mart said Asda’s operating income fell 0.8%, with gross margins down “slightly” due to the investment in price.

Asda said Kantar Worldpanel data for the 12 weeks to 17 March had shown its share of the UK grocery market was flat year-on-year at 17.9%. The most recent 12-week data issued by Kantar last month – for the 12 weeks to 14 April – showed Asda’s market share dipped year-on-year from 17.6% to 17.5%.

Reflecting on the market share data, CFO Richard Mayfield told just-food other UK retailers were expanding their store networks more than Asda. He said Asda was set to open 12 stores this year – compared to 23 last year – as it wanted to be more “measured” with its investment. “Sainsbury’s is opening more space than us. Why are they opening more than us? We are investing more in IT, multichannel and so on,” Mayfield said. Asda, he said, may see its market share dip but, he insisted, the retailer was “pleased” with its underlying performance.