Asda is stepping up its proximity drive with the announcement that it will open 25 new convenience stores between June and December this year. The move marks a shift in the British retailer's strategy to strengthen its presence in city centers and neighborhoods.
After opening just 2023 stores in 12, the relaunch of the small format is part of a recovery plan led by executive chairman Allan Leighton, who returned to the helm last November. “We want to rebuild Asda, bring it back to what it was,” Leighton said, noting that the plan will initially involve a “significant reduction” in profitability.
Asda has lost ground in the market in recent years: since 2021, the year of its acquisition by the fund TDR Capital and the Issa brothers, its market share has fallen from 14,8% to 12,5%. To make matters worse, Aldi recently overtook Asda in food and drink sales, with a share of 10,6% against its rival's 10,4%.
The new Asda stores will also be located on former Co-op Group sites, part of an acquisition that has seen the retailer acquire 470 locations from the Co-op and EG Group over the past two years. The move reflects growing competition in the convenience sector, with retailers such as Tesco and Waitrose also poised to expand.
