Exclusive Clive Beddall, Bentonville
Giant, dual fascia supercentres and smaller format specialist supermarkets will spearhead Asda's retailing strategy as it targets Sainsbury to become the UK's second largest multiple.
After a procession of Wal-Mart main board members had queued up during the group's annual Hollywood-style shareholders' jamboree to praise the UK chain's trading performance, Asda president and md Tim Mason talked to The Grocer.
Last year's record-setting 500,000 sq ft expansion will be surpassed this year with the addition of 600,000 sq ft in the form of nine new stores. Another four units will be relocated and six others will undergo major remodels.
But encouraged by the news that the 100,000 sq ft, £2m sales per week supercentre at Patchway, Bristol, has become Wal-Mart's largest turnover store, Mason said new supercentres at Pudsey, Derby and Swindon set to open later this year will be followed by others.
As the Wal-Mart annual report proclaimed Asda was "likely to become the second largest supermarket chain in Britain in the coming year", Mason said: "Britain is not China or the US. There is only so much available space for store development. However, our first three supercentres have given us the confidence to say that the British population is comfortable with our idea of one-stop shopping.
"Where possible, we will build new supercentres, or extend our existing stores so that we have the very best food offer in the local catchment, plus a superb, fashionable range of clothing under the George label.
"In addition, we will extend our non food offer. By the end of the year we will have 100 pharmacies, 50 photoshops, 50 optical shops and 20 jewellery shops."
Mason also revealed that while the average Asda continues to be 40,000 sq ft, it is working on a new formula for smaller one-stop stores in certain areas of the UK.
Initial development work has been done at its 28,000 sq ft unit at Bodmin, Cornwall, described by Mason as a "supermarket in a small footprint".
The entire Asda offer is included, albeit in a scaled down version.
An audience of over 17,000 including more than 150 Union Flag-waving Asda "colleagues" filled the University of Arkansas's indoor sport stadium for the convention. After head of international operations John Menzer said Wal-Mart was increasing its efforts to become a global player, there was speculation among visiting analysts that the group's next expansion target would be France.
One told The Grocer: "France has been on the agenda for some time. It is just a question of finding the right opportunity. But we reckon that something will happen soon."
Wal-Mart followed time honoured company custom and refused to comment.
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