Asda is to open 300 new convenience stores and create 10,000 new jobs over the next four years as it ramps up the rollout of its new Asda Express shops to try to grab a bigger share of the market.
The supermarket chain - the UK's third largest after Tesco and Sainsbury's - opened its second Express store in London today, and has revealed plans to smash its initial ambition of opening 30 stores in the next year by revealing plans which it hopes will lead it to overtaking Sainsbury's as the UK's second-largest grocery retailer.
Today's opening is the second in the Express format and joins the store's first, in Sutton Coalfield, near Birmingham. The target of 300 convenience stores by the end of 2026 does not include the 130 Co-op petrol forecourt stores Asda acquired earlier this year, which is currently going through the competition review process.
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The shift into convenience stores comes after EG Group, which operates filling stations and is also owned by Asda's owners, the billionaire Issa Brothers, said it planned to open 200 Asda On the Move convenience sites on its petrol forecourts. Although Asda has focused on large stores, it made a foray into smaller sites in 2010 when it bought Netto’s 200-strong UK chain, although these outlets are much larger than the planned Asda Express stores.
If Asda realises its plans announced today, it will have a similar number of convenience stores to Sainsbury’s, which has 800 small stores as well as its major supermarkets. However, they will both have a lot of ground to make up before catching market leader Tesco, which has almost 2,000 Express stores and 700 One Stop outlets.
Morrisons, the UK’s fifth largest supermarket behind Aldi, has been expanding into the market, supplying independent stores under the Morrisons Daily banner.
The convenience sector, which is the industry name for smaller shops usually in busy or residential areas, is forecast to grow by 13% to more than £50bn by 2027. The Asda stores will stock around 3,000 products, including groceries, toiletries and a broad selection of beers, wines and spirits.
Owner Mohsin Issa told the Grocery Gazette : “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.”
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