Asda raises target for small format stores
Asda has announced that it will raise its target of opening 100 new supermarket sized stores to 250, following the opening of its hundredth smaller format store next week.
The retailer is opening eight 5,000 to 25,000 sq ft stores per week currently and so far has converted 61 of the 146 Netto stores that it acquired last year. Asda had originally bought 193 Netto stores but was forced to dispose of 47 due to competition reasons.
The stores are much smaller than Asda’s superstores and carry a wide enough range of products to emable customers to buy everything they need for a weekly shop at the same price as the larger outlets. Asda is aiming to open 180 small format stores by the year end.
Karen Hubbard, operations director of supermarkets at Asda, said: “We’re bringing back old-fashioned supermarkets where you can get everything you want.
She added: “The average basket size at the existing smaller stores is 15 pounds and shows there is opportunity for the full-weekly shop in smaller stores.”
Yesterday chief executive Andy King said that Asda would be interested in buying some of the 730 Iceland stores if they become available. Majority owner Landsbanki has begun a process to sell a stake in the business.
Last week it was reported that rival supermarket chain Morrisons was also interested in acquiring some of the Iceland stores, following its appointment of Credit Suisse as its investment adviser.