Asda has unveiled plans to open 300 convenience stores and create 10,000 jobs over the next four years, as it seeks to capture a larger share of the growing convenience market and potentially overtake Sainsbury's as the UK's second-largest supermarket.
The supermarket chain, owned by the billionaire Issa brothers and private equity firm TDR Capital, currently operates only two Asda Express stores — in Sutton Coldfield and Tottenham Hale. It had previously announced a target of 30 such stores by October next year, but the new ambitions are significantly larger. The 300 planned sites are in addition to 132 convenience stores Asda is acquiring from the Co-op.
Mohsin Issa, Asda's co-owner, said: 'A key part of our growth strategy is to provide customers with more opportunities to shop at Asda closer to where they live or work. With more than three-quarters of the UK population visiting a convenience store in the last 12 months, the potential for growth in this market is significant. Our ambition is to become the convenience destination of choice by providing shoppers great value and a comprehensive and convenient range of products and services under one roof.'
The move into smaller residential stores follows plans by EG Group, also owned by the Issas and TDR, to open 200 Asda On the Move sites on petrol forecourts. If Asda realises its plans, it will have a convenience store network similar in size to Sainsbury's 800 small stores, but still well behind Tesco's almost 2,000 Express and 700 One Stop outlets. The market also includes Little Waitrose, the Co-op, and thousands of independents trading under brands like Londis, Spar and Budgens.
Asda's foray into smaller sites is not entirely new; it bought Netto's 200-strong UK chain in 2010 for more than £750m, though those outlets are larger than the planned Asda Express stores. Meanwhile, Morrisons has been expanding into the convenience sector via Morrisons Daily, after an earlier failed attempt with M Local, and Amazon has tested checkout-free Fresh stores but paused UK expansion.
