Sales at Asda's British supermarkets rose by just one per cent at the end of 2011, as customers reined in their spending in the face of higher prices and low wages growth.
The figures compared with a 1.3 per cent rise in the previous quarter, but were in line with results from the other three biggest supermarket chains.
Recent weeks have seen Tesco report a drop of 2.3 per cent in sales in the six week to January 7, while festive season trading figures from Sainsbury's and Wm Morrison also rose, but by a modest 1.2 per cent and 0.7 per cent respectively.
During the last year, Asda – which is owned by American supermarket group Wal-Mart - has taken over the Netto chain of smaller discount supermarkets, to bring its total number of outlets in the UK to about 540.
Reuters news agency also pointed out that it had seen a benefit from its 'price guarantee' scheme, under which it promises customers a voucher for the difference if its prices are not at least 10 per cent cheaper than any of its rivals.