Asda Planning For New Convenience Store Format

Namnews, 23rd June 2022

Asda looks to be planning to make a further push into the convenience channel with a new standalone store format.

A listing on Asda’s careers website shows the group is looking for two ‘Property Acquisition Surveyors / Managers – one for London & the South and another based at its head office in Leeds. The job description states: “As an Acquisitions Manager with Asda, you will be integral to our significant growth plans and be at the forefront of our ambition to grow existing formats and spearhead our plans to develop a convenience chain, a new format for the business.”

The closing date for the role is 30 June.

In May, it was reported that Asda was looking for a Senior Director of Channel Operations (wholesale & convenience). That job description said: “Convenience and wholesale is a new channel within Asda set to significantly contribute to Asda’s growth ambitions. This role will own the convenience and wholesale operations, including the design and development of critical capabilities, end-to-end operational and retail readiness, and the implementation and execution of rapid growth over the next five years.”

Several other recent job postings have also hinted at Asda’s ambitions in the convenience channel.

The supermarket group moved into convenience retailing 18 months ago with the launch of its ‘Asda On the Move’ format on petrol station forecourts operated by the EG Group. There are now around 35 sites, with Asda announcing towards the end of last year that it planned to open over 200 convenience stores on the forecourts operated by its new owners, the Issa brothers and TDR Capital.

Reports early this year also stated that the Issa brothers had a long-term ambition of opening a standalone Asda convenience chain to tap into the growth in the channel.

Commenting on the job ads, an Asda spokesperson said: “A core part of our strategy is making Asda products more accessible to customers in convenient locations, be this through the rollout of our Asda On the Move format across EG Group forecourts, or the potential for standalone convenience store opportunities.

“As we consider how best to develop Asda’s presence in the convenience market, we will require talented individuals to join us on this journey and help us achieve our long-term ambition.”

Last month, Asda revealed that its like-for-like sales had plummeted 9.2% against tough comparisons with last year’s lockdown period. However, the group also noted that some cash-strapped customers were buying less and trading down to cheaper ranges.

Latest data from Kantar suggests the chain is losing share to the discounters. Analysts have said that Asda’s stretched balance sheet in the wake of the Issa brothers’ takeover will limit the group’s ability to invest in cutting prices if market conditions continue to worsen.