Supermarket Asda is set to open more Asda Express convenience stores by the end of this year to boost its reach in inner city locations.
The company has already completed the conversion of 478 convenience sites acquired from the Co-op and EG UK to Asda Express in Q2 2024. The retailer is set to open an additional 11 Asda Express convenience stores by the end of the year. These stores will bolster Asda’s presence within inner city locations, bringing Asda’s heritage in uncompromising value to more communities.
Asda on Thursday (8) announced its results for the second quarter ending 30 June 2024 – with the supermarket setting out wide-ranging plans to deliver an enhanced and more consistent in-store experience for customers in the remainder of H2.
This follows the supermarket reporting a 2.2 per cent decline in total revenues, excluding fuel, to £5.3bn in Q2, with like-for-like sales 5.3 per cent lower.
The decline in Asda’s Q2 LFL sales comes amid an unprecedented transformation – the largest in its history. Asda has made significant progress in building a bigger and better Asda – growing from just over 600 shops to 1,200 stores and food-to-go outlets since the current owners took full control in June 2021. This includes launching into the growth markets of convenience with Asda Express and foodservice, as well as a successful loyalty app, Asda Rewards.
Commenting on the report by Asda, Sofie Willmott, Associate Retail Director at GlobalData, stated, "Now that UK food inflation has eased, ASDA’s woes have been exposed and it is clearly on a downward trajectory, with like-for-like sales excluding fuel in Q2 (-5.3%) pulling down its H1 performance to -2.1%. With food growth barely mentioned in its results, we can assume the division produced numbers the grocer would prefer to hide.
“ASDA has lagged behind and its market share has been eaten away by both midmarket competitors Tesco and Sainsburys at one end, and value players Aldi and Lidl at the other. ASDA must focus on ensuring its core food offer is compelling and fight to win back shoppers as a priority over complementary areas that although important in the long run, are less of a driver than value for money.”
