Asda is gearing up for a big store development programme as it plans to beat last year’s record of 40 new openings.
It will make a major statement about its store development programme next month, said Asda property communications manager Simon Leonard.
In a meeting with analysts last month, Asda finance director Judith McKenna claimed Asda was getting bolder in store development schemes.
And Leonard said this week: “Our flexible approach to store design and development is fundamental to driving development forward.”
Asda has been developing new formats, including Asda Living and Asda George, and has developed a smaller store format with a sales area of 15,000-25,000 sq ft, which suits its town centre ambitions.
Asda opened its first ‘regeneration store’ on Liverpool’s Breck Road last year and plans similar projects. Two major deals will involve regeneration of the East Bank area of Ipswich and Shirley town centre, near Solihull.
The first Asda Essentials discount store - an 8,000 sq ft outlet in Northampton - opens in the spring.
Store size will be similar to those in the Kwik Save portfolio, which analysts believe will be sold off by Somerfield’s new owner Violet Acquisitions. There are also plans to add two Living stores - at Glasgow and Lincoln - taking the total to seven.
Seymour Pierce analyst Richard Ratner said: “Asda will not be looking to buy the whole Kwik Save chain but they may have talks about certain stores.”
He added: “Asda has slipped a long way behind Tesco in terms of store development. Over the past three years, Asda has lost out on some big stores to Tesco because it has just not paid the price.”
Fiona McLelland
It will make a major statement about its store development programme next month, said Asda property communications manager Simon Leonard.
In a meeting with analysts last month, Asda finance director Judith McKenna claimed Asda was getting bolder in store development schemes.
And Leonard said this week: “Our flexible approach to store design and development is fundamental to driving development forward.”
Asda has been developing new formats, including Asda Living and Asda George, and has developed a smaller store format with a sales area of 15,000-25,000 sq ft, which suits its town centre ambitions.
Asda opened its first ‘regeneration store’ on Liverpool’s Breck Road last year and plans similar projects. Two major deals will involve regeneration of the East Bank area of Ipswich and Shirley town centre, near Solihull.
The first Asda Essentials discount store - an 8,000 sq ft outlet in Northampton - opens in the spring.
Store size will be similar to those in the Kwik Save portfolio, which analysts believe will be sold off by Somerfield’s new owner Violet Acquisitions. There are also plans to add two Living stores - at Glasgow and Lincoln - taking the total to seven.
Seymour Pierce analyst Richard Ratner said: “Asda will not be looking to buy the whole Kwik Save chain but they may have talks about certain stores.”
He added: “Asda has slipped a long way behind Tesco in terms of store development. Over the past three years, Asda has lost out on some big stores to Tesco because it has just not paid the price.”
Fiona McLelland
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