Asda is set to ramp up its expansion of convenience stores this year, with plans to open 25 new locations between June and December.
This marks a significant push in the supermarket’s strategy to grow its smaller store formats and reach more local shoppers in towns and city centres.
According to The Telegraph, the supermarket had slowed its pace of convenience store openings last year, launching only 12.
However, the renewed expansion comes as part of a broader turnaround effort under the leadership of executive chairman Allan Leighton, who returned to the business back in November.
-
Related Story
-
Asda’s market share has been under pressure since its 2021 acquisition by private equity group TDR Capital and the Issa brothers, falling from 14.8% to 12.5% in recent years.
While at the start of the month, data found that Aldi has now overtaken Asda on food and drink sales in a fresh blow to the embattled supermarket chain.
Aldi accounted for 10.6% of food and drink sales across the sector in the 12 weeks to 23 March, overtaking Asda’s market share which fell from 10.5% to 10.4%.
On ramping up its convenience footprint Leighton told the Telegraph his new spending plans would help to ‘build [Asda], reset it, turn it into what it was,’ adding that they would result in a ‘material reduction’ in profitability.”
The new stores will include former Co-op locations, with Asda having acquired 470 sites from Co-op and EG Group over the past two years.
The supermarket’s plans align with growing competition in the convenience store sector, with rivals like Tesco and Waitrose also announcing similar expansion efforts.
Click here to sign up to Retail Gazette‘s free daily email newsletter
