Asda’s clothing arm, George, is to expand online into 24 European countries including France, Denmark and Spain.
The retailer revealed the move as it announced like-for-like sales growth of 1% for the year to 5 January but just 0.1% for Q4 - despite its “biggest online Christmas ever” boosting online sales 18.8% over the quarter.
The e-commerce expansion follows a successful trial in the Republic of Ireland and is expected to be completed by July 2013. European customers will be able to access the full catalogue of George clothing and accessories.
George will also open five more franchise stores in the Middle East before the end of the year, taking the number of franchise stores worldwide to 35. Including George ranges in Walmart stores, the label is now available in more than 200 non-UK stores, among them outlets in Japan and Chile.
“Our international growth strategy is based on franchising, online expansion and leveraging our relationship with Walmart,” said Andrew Moore, Asda’s chief merchandising officer for George and general merchandise.
“Customers globally, not just in the UK, are looking for real value in these challenging times and that is exactly what we will be offering to millions more customers around the world.”
George launched in 1990 and is available in more than 540 Asda stores in the UK. It has more than 600,000 online customers a week and 60% of sales are ordered using click & collect.
Asda also announced this week that it had hired consultancy McKinsey & Company to help it formulate a new five-year strategic plan as it focuses on becoming a more multichannel business.
“It’s good business sense,” said CEO Andy Clarke. “With the way in which our online business has grown, and the developing shape of the Asda organisation with our new formats, we took the decision that we would benefit from some support. It’s at a very early stage, so we are still working through what those strategic changes might look like - and at an appropriate time we will share that information.”
Having McKinsey on board would “reinforce” Asda’s decision-making process, he added. “Sometimes it’s healthy to have an external point of view,” he said.
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