ASDA to increase pace of store openings and Click & Collect sites

ASDA is set to accelerate its plans to open more stores, petrol stations and Click & Collect sites as it sees like-for-like sales boosted by 0.7%.

In its second quarter, ending July 5 2013, the retail giant - headquartered in Leeds – said it has managed to hold down prices and create a multi-format, multi-channel business and is now focused on opening up more ways for customers to shop with the business. The retailer said it expects to expand its site acquisition activities, aiming to open more bricks and mortar stores, petrol filling stations and Click & Collect sites.

Andy Clarke, president and CEO of Asda, said: “We’re pleased with our results in a tough market. We continued to grow our sales while also investing in holding down the price of essentials, increasing access points to Asda's value and putting money back in customers’ pockets when they need it the most.

“Our focus on opening up more ways for more customers to shop with us, particularly in areas currently underserved by Asda, provides us with real opportunity to grow space and channels to adapt our business to today’s customer.

“I’m confident this focus will continue to drive growth in a sustainable way.”

Asda said its multichannel formats remain central to its “Clicks and Bricks” strategy, accelerating investment in technology and infrastructure to make shopping more convenient; allowing customers to shop for what they want, when they want it.

Innovations in this area include the launch of a same day grocery collection service at its Wakefield store this month – a first in UK grocery retail. It also announced it was accelerating its rollout of grocery shopping collection to almost 250 sites by the end of 2013.
The retailer is maximising its relationship with parent company Walmart, to bring new in-store and technology innovations to the UK.

Looking ahead to the end of the year, the retailer said it expects 75% of customers to shop through multiple channels this Christmas.

Walmart International President and CEO, Doug McMillon, said: “The UK is an example of where we are leading with a core strength, investing in price on essential food items. In the UK, we continued to grow both sales and operating income in the second quarter of the year, with operating income growing 7.5%.

“However, the British consumer remains under pressure. Our price investment in food essentials and produce continued throughout the quarter, a key traffic driver which meant we grew market share in this category.

“The result was lower inflation across the overall basket for our UK customers.”

Source : Ellie Newton-Syms – TheBusinessDesk.co.uk
www.thebusinessdesk.com/yorkshire/news/504366-asda-plans-to-open-new-sites.html