Britain's second largest supermarket, ASDA has recorded a slowdown in its sales during the second quarter of the year.

The retailer said that it will continue its aggressive strategy to build more stores and expand its presence in the market even after recording a fall in like-for-like sales during the second quarter. Asda chief executive Andy Clarke said that the store will continue to open stores of different sizes even as other retailers have said that the times of rapid expansion known as the space race in over.

"I don't agree that larger space is no longer appropriate. It depends on the market and whether the market is appropriate. We are not committed to low return space like some of our rivals," said Clarke said.

He said that the smaller versions of the store would have more than 25,000 to 75,000 square feet of space. The retailer is aiming to open a total of 369,000 square feet of space this year. Asda is not planning to roll-out convenience store formats in town centres much like its competitors in the UK.