A "full-blooded assault" on the thriving convenience sector is expected in the coming months as supermarket Asda is intensifying its focus on convenience by planning the launch of numerous new compact shops across high streets and neighbourhoods.
According to a recent report, Asda set to unveil 25 new Asda Express stores from June to December – more than doubling last year's openings.
This bold strategy marks a key element in a rejuvenation campaign steered by Asda's new chairman, Allan Leighton, who has vowed to go all out in restoring the supermarket to its past prominence.
Having watched its dominance wane on British high streets due to steep inflation, intense competition on pricing with rivals, and changes in consumer shopping habits, Asda is now looking to engage customers right where they live.
Leighton outlined the plan and its support through considerable investment from owners TDR Capital and the Issa brothers, which includes multi-million-pound funding for the expansion of new outlets, price reductions, and refurbishments of existing stores.
Following a dip in market share from 14.8 per cent to 12.5 per cent since its 2021 acquisition, Asda is under pressure to expand rapidly to avoid further decline.
The company's aggressive move into smaller store formats comes after a pause last year when only 12 new Express branches were opened due to increased costs and supply chain challenges.
Part of the expansion includes the conversion of 470 acquired Co-op and EG Group stores – a £600million investment – into Asda Express sites that offer groceries, meal combos, and click-and-collect options.
Reflecting changing consumer patterns which favour frequent, smaller shopping trips over large weekly hauls, Asda's strategy poses a direct threat to its rivals.
This includes Tesco's plan for 150 more Express stores within three years and Waitrose's aim for 100 additional locations by 2029.
Additionally, supermarket experts predicting a sharp uptick in promotions and reduced prices in the coming months, as Asda enters the fray of a fresh price battle with competitors Tesco, Sainsbury's, and Aldi.
