Asda not quite ready to leapfrog Tesco
Supermarket chain Asda’s plans to leapfrog its rival Tesco and become the UK’s biggest merchandise retailer look to be to be stalling.
The observation comes after the Leeds-based firm, which is owned by American force Wal-Mart, admitted that it will only be able to open two new Asda Living stores next year. After also unveiling two shops in 2010, the chain now has 25 Living stores, which stock products like its George clothing brand, which is mainly aimed at children, and homewares.
Its sluggish opening is a far shout from the huge plans it revealed in April and the intentions it laid out. Back then, Asda explained that it wanted to expand the Asda Living chain to around 150 shops by 2015. In order to reach that now seemingly impossible target, it will have to add at least 125 stores, which includes the two due to open in 2011, by spring 2015.
Back in April, Asda’s chairman, Mr Andy Bond specifically stated that the next five years would see his company become a market leader for general merchandise as well as cementing its status as the number two provider of food products. With its format strategy, the aspiration was to have a string of 100 smaller supermarkets – despite 300 locations being looked at for expanding the business even further.
Rushing to defend itself, and suggest other matters that have prevented it from being able to flourish, a spokesman for Asda pointed out that problems have not been with revenues, but rather with securing these aforementioned locations.