Asda has announced it would sell its in-store photo processing service to Photo-Me as the struggling chain makes cut backs.
Following eight consecutive quarterly reports of sales decline the supermarket retailer is set to sell its photo business, which runs at a loss, to the world‘s biggest photobooth operator Photo-Me.
The deal is thought to be for around £5.4 million, £3.35 million for the business and about £2 million of stock in the grocer.
It will acquire 191 photo centres and 172 self-service kiosks in Asda stores around the country. Photo-Me will manage the sites in Asda’s stores after the deal has been finalised in October.
All Asda employees working in the photo section will now work for the photo giant.
It will pay the supermarket a commission for its store space and the deal is arranged for 10 years.
Asda‘s photo business has been running at deficit for some time, loosing £3.4 million last year, a sum the Walmart-owned grocer can barely afford since the challenge of discounters Lidl and Aldi plunged it into decline.
“This is an interesting opportunity to significantly expand our UK business in a strong set of locations and increase our market share in the digital photo printing market, which we believe has growth potential in the digital age,” Photo-Me chief executive Serge Crasnianski said.