Clive Beddall
Seven months into Asda's membership of the Wal-Mart family, a buoyant Allan Leighton is claiming one million new customers and an increased market share to 14% after his chain's "best period ever".
Talking exclusively to The Grocer on Thursday, Leighton, president and CEO of Wal-Mart Europe, said: "Our successful Rollback concept has made all our competitors sit up and think. Consumers have shown they want value, not just truckloads of tinsel."
With Christmas like for like sales understood to be up 10.4% more than double the 5% at Tesco Leighton said: "I've never been through a trading period like it."
He went on: "The integration with Wal-Mart has worked well. We are ahead of expectations. It's almost been a breeze. People talk about the Wal-Mart effect, but it's surely no coincidence food inflation in the UK has come down by 1.5%."
Leighton is delighted with consumer reaction to Rollback. "I've believed for a long time that shoppers prefer permanently low prices rather than promotions. Rollback has become part of British parlance and transformed everyone's way of thinking."
Leighton confirmed earlier stories in The Grocer the George clothes range is to be extended this year into Wal-Mart stores in the US and Germany. But he emphasised this process would be gradual. "George Davies needs to set up a supply chain. It's not like taking in baked beans."
In addition, as Asda extends its Fresh store concept on this side of the Atlantic, its Bentonville parent is adapting the concept in the US. Asda, meanwhile, is picking up another US idea with plans to show drive-in movies in its car parks.
Leighton is also confident of further success in the home delivery and takeaway areas. With a comment which will not be lost on the Competition Commission, he added: "Most of our supplier development in the takeway sector is with the smaller, entrepreneurial, highly innovative manufacturers."
But Leighton again dismissed suggestions the Wal-Mart fascia would be used instead of Asda on the chain's UK superstores. "Wal-Mart has become the most famous retailer in Britain and we are proud to be part of that family. But we will be displaying the fact on signs at store entrances, not on the fascias."
But, significantly, the Asda CEO did not rule out the name eventually being used if the chain were to develop additional concepts.
He added: "If you have just gained another one million customers off the Asda name you don't change it."
l See pages 11 and 38.
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