UK: Asda To Develop & Extend C-store Format
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Friday, 19 February 2010 |
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Asda, owned by Wal-Mart, has announced that it would expand into
convenience retailing, open more non-food shops and cut costs to drive
growth in tough markets after posting its lowest quarterly sales growth
in about two years.
Asda, which runs 371 supermarkets and 24 non-food Asda Living
stores, said sales, excluding petrol, at stores open at least a year
rose 4.6 percent in the fourth quarter of 2009. That was down from 5.6
percent in the previous quarter and is probably the slowest growth rate
since the third quarter of 2007 when the chain -- which at the time did
not publish precise figures -- said sales rose by a "low single digit"
percentage.
Chief Executive Andy Bond said the chain, became too focused on
promotions in 2009, which clouded its low-price message. "While we
allowed ourselves to be too promotional in 2009, be in no doubt that
Asda will return with force to our Every Day Low Prices model in 2010,"
Bond said in a statement.
Bond said Asda planned to accelerate growth in smaller format stores
and had created a separate division for 21 of its shops that are under
25,000 square feet. In total, Asda plans to open 10 stores,
including three smaller shops, and extend 10 others in 2010, creating
around 6,000 jobs, it said.
CstoreWorld 190210
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