ASDA boss Andy Clarke lashed out at Bradford-based rival Morrisons for its discount card scheme as he unveiled his firm’s worst quarterly sales performance in nearly a decade.

He attacked the “panic” promotional tactics of rivals, accusing Morrisons of “printing £5 notes” with its voucher offers while describing Sainsbury’s as a “business that has given up”.

Asda’s like-for-like sales fell by 1.6 per cent in the quarter to the end of September.

It was the first fall since a 0.1 per cent drop at the end of last year and the worst figure since at least the first quarter of 2006.

Mr Clarke said that Asda had still outperformed its major rivals and gained market share during the quarter, with its focus on “Everyday Low Price” rather than what he called “gimmicks”.