Bosses at Asda have said they are determined to “keep grocery bills in check” as many customers continue to struggle with the rising cost of living.

It comes as the supermarket chain reported a slowdown in the rate its sales declined over the past quarter.

Asda revealed that sales slipped by 1.9% over the three months to June, compared with the same period last year.

It came after like-for-like sales excluding fuel plunged 9.2% over the first three months of the year, as consumers tightened their belts.

The retailer said it has benefited from strong sales of its new Just Essentials value range, having accelerated its launch of the range in response to ratcheting pressure on household finances.

Asda said its sales improvement has continued into the third quarter, which it said has also been driven by strong sales in core categories such as meat, fish and poultry.

The retailer has also increased investment in pricing by expanding its Dropped & Locked campaign, where it has frozen the price of 250 products for the rest of 2022.

Asda was bought last year by the billionaire Issa brothers and private equity backers TDR Capital in a £6.6 billion deal.

Mohsin Issa, Asda co-owner, said: “Every week millions of customers visit our stores or shop with us online and we know many of them are struggling with rising living costs that show no sign of easing.

“We are determined to do all we can to support these customers during these tough times by keeping their grocery bills in check while delivering added value through initiatives such as Dropped & Locked and the Kids Eat for £1 offer in Asda cafes.”

Mr Issa added: “After a series of successful regional trials, we are delighted to have expanded Asda Rewards to all our stores – meaning customers across the UK can now start building their cash pot.

“Over two million customers have already downloaded the app, with many already starting to see the benefit during these very challenging times.”