Bottom slapping is back at Asda. It used the announcement this week of 6.5% sales growth for the full year and 7.2% in the fourth quarter of 2008, to herald the return of the classic 'Asda Price' ads.
But the most important learning from Asda recently came at last week's supplier conference in Harrogate with news that it will simultaneously drop more 'duplicate' brands, resulting in up to a 30% reduction in the number of lines in a further 10 categories.
This would save Asda time and money, said chief merchandising officer Darren Blackhurst.
It is a process that started in 2007 when, as The Grocer revealed, Blackhurst joked, of a decision to drop I Can't Believe It's Not Butter, and keep Utterly Butterly on shelf, "It's only marge!".
With suppliers no doubt nervously awaiting their fate, it must seem brutal, but Asda has the lowest operating costs in the business and - as any Asda shopper knows - savings in the back pocket soon add up. More to the point, it's working for Asda. And for those brands still on shelf, it can work too.
No comments yet