Asda to grow its smaller concept

ASDA, the UK’s second biggest supermarket chain, has set a new target of 250 smaller-format stores following the successful conversion of 60 former Netto stores.

Leeds-based Asda originally set a target of 100 smaller-format stores in April 2010 prior to its £780m purchase of 147 Netto discount stores last year.

Yesterday Asda’s chief executive Andy Clarke said there is no target date to open the 250 stores, but the plan is to open 180 smaller-format stores by the end of the year. In addition to the Netto stores, Asda has acquired a number of other sites from the Co-op and in one-off deals.

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“There is definitely a gap in the market,” said Mr Clarke. “People are shopping for a full weekly shop in these stores. This is a working model that we are very confident we can grow up to 250 stores.”

Asda said the stores do not fall into the convenience bracket as they are all over 5,000 sq ft.

They also differ from Tesco Metro and Sainsbury’s Local in that they charge the same price as the Asda superstores. Tesco and Sainsbury’s both charge extra in their convenience stores.

The smaller-format stores, which Asda calls ‘supermarkets’ as opposed to its traditional larger ‘superstores’, will stock up to 10,000 grocery products.

Mr Clarke said the group’s dotcom service will complement the smaller-format stores, allowing customers to pick up home and leisure or George clothing products from their local store.

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