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Asda secedes from click-and-collect

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Britain’s second largest supermarket chain Asda has revealed that it will no longer be investing in further click-and-collect sites and will be slowing down its expansion into London.

Despite still managing to eke out a profit last year, the company will be scrapping plans to have 1,000 click-and-collect locations in the UK by 2018. Like Big Four rivals Tesco and Sainsbury’s, it has also pulled out of the scheme to expand its services to London Underground stations.

The Walmart owned chain recently reached its “nadir” after reporting its worst financial performance in 16 years, and many suspect current boss Andy Clarke may be on the way out.

As part of its new strategy, “Project Renewal”, Asda will be conducting range reviews whilst also continuing its ‘everyday low price’ model in an attempt to win back market share from discounters Aldi and Lidl.

The company will also be refurbishing 95 of its largest stores in an attempt to adapt to changing shopper habits.

An Asda spokesperson said that Project Renewal is aimed at “prioritising investment to better address the fast changing needs of its customers.”

By cancelling its investment in click-and-collect, Asda is doing the antithesis to a number of retailers who are striving to increase such services to provide greater convenience and more competitive delivery options.

The CEO of Asda, Andy Clarke said: “We need to simplify what we do by prioritising the first line of our strategy – improving our core business – and pausing activity in other areas so that we are not spread too thinly.”

“We started that journey today with our colleagues and over the coming week we will work on the detail in partnership with our suppliers.”

Asda’s head office in Leeds will see 29 positions axed as part of the change.

Published on Monday 19 October by Philip Gallagher

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