Sales at Asda slumped to a record low during the second quarter as fierce competition and sharp falls in food prices continued to wreak havoc in the British grocery sector.

In a grim debut for Sean Clarke, Asda's new chief executive, the Walmart-owned supermarket chain said that its like-for-likes sales fell by 7.5 per cent in the three months to the end of June. Asda continued to haemorrhage market share to its discounting rivals, such as Lidl and Aldi, as well as to its bigger peers Tesco and J Sainsbury. The slump came on top of a 5.7 per cent fall in comparable sales during the first quarter and highlighted the extent of the challenge now facing Asda, once considered to be on track to become the UK's largest grocer.

News of falling sales, which were not only worse than the market had expected but also reflected the eighth consecutive quarterly drop, marked a difficult start for Mr Clarke.

The British-born chief executive was appointed in July to replace Andy Clarke, who prematurely claimed last August that Asda had reached a "nadir" when like-for-like sales fell 4.7 per cent.

Russia is bolstering its military presence on its western border, sending tens of thousands of soldiers to newly built installations within easy striking distance of Ukraine.

The moves, which come as Moscow ratchets up confrontation over the Black Sea peninsula of Crimea, are a centerpiece ofanew military strategy the Kremlin says is meant to counter perceived threats from the North Atlantic Treaty Organization.

Military analysts say the deployments appear to be an effort to build a more permanent and robust military posture around Ukraine, where Russia has carried out covert military interventions aimed at maintaining influence in its Westleaning neighbor.

“Russia’s plans around the Ukrainian border showareal intent to use force if needed,” said Anton Lavrov, a defense analyst at Moscow-based think tank CAST. “They would be Russia’s first line of assistance if the pro-Russian rebels in east Ukraine needed help.” The Russian Defense Ministry didn’t respond to emailed questions.

Newly-installed Asda boss Sean Clarke has been left in no doubt about the challenge ahead of him after the supermarket chain reported a 7.5pc drop in like-for-like sales in the second quarter, its worst fall on record.

Mr Clarke, who took over from Andy Clarke last month, admitted with some understatement that Asda was in the middle of a "challenging" period, as US parent company Walmart said that a return to "retail basics" was on the cards. The fall in like-for-like sales, which exclude new stores opened during the period, was even worse than the 5.7pc drop the chain reported in the previous quarter, and far outstripped the 4.7pc drop that Andy Clarke described as the supermarket's "nadir" last summer. It marks the eighth consecutive quarter of falling sales.

Asda's total sales slumped by 5pc during the three months to the end of June, while footfall tumbled 6pc, as shoppers shunned its large out-of-town stores.

In common with its "big four" rivals - Tesco, Sainsbury's and Morrisons - Asda has been hit by price deflation in the grocery sector, as well as stiff competition from the fast-growing discount chains Aldi and Lidl. But while Tesco and Morrisons have made strides in turning around their fortunes, Asda continues to lag the group.

The City of London has given up hope of universal access to the EU single market and is now seeking a bespoke deal for its different sectors to keep trading with Europe, with similar but stronger ties than Switzerland.

Teams across the City and Whitehall have been working over the summer to draw up a plan for Britain's EU exit.

Officials and representatives from the financial sector will present their policy ideas to the cabinet committee for Brexit, chaired by Theresa May, the prime minister, when it meets next month, people involved in the preparations told the Financial Times.

The City has decided that a deal emulating Norway's relationship with the EU is politically and practically very difficult. Norway has access to the single market but no say in how rules are set, must accept free movement of people and make budget contributions.