Asda is reportedly planning to ramp up openings of its Asda Living format to reach its goal of being the retail leader in non-food within five years.
The supermarket chain could open as many as 150 non-food stores as it accelerates the roll-out of its Living format, which “continues to exceed expectations”. Financial services company JP Morgan said last week that the retailer had set out its plans – which also include the opening of 100 smaller-format stores in the next three to five years – at a supplier conference.
There are currently 22 Asda Living stores.
JP Morgan said that Asda believes 75% of its growth will come from smaller-format stores, non-food products and online.
It stated: “Asda said that in the next five years it wants to be the clear number two in food and the number one in non-food, which means it would have to double sales in non-food in the next five years – a lofty goal we believe.”
In response to JP Morgan’s comment, Asda ceo Andy Bond told HousewaresLive.net’s sister site diyweek.net: “We’re ambitious in our growth and we see a lot of opportunities around superstores and supermarkets, Asda Living and asda.com. We always aim high.” However, he refused to comment on JP Morgan’s speculation over the number of new openings.
A full-year update for the company, issued by Bond, explained that Asda will be opening a “new chapter” as part of its strategy to “broaden and accelerate” the business.
He said: “Through a combination of new formats – both smaller supermarkets to meet the needs of local communities, and through Asda Living, we will broaden our business, reaching more customers in markets that are currently underserved by Asda.”
He added: “Asda Living continues to exceed our expectations. In its own right our Living format is now a bigger non-food business than a number of high-profile brands. We are well placed to accelerate when the environment for out-of-town retail improves.”
The first Asda Living store opened in Walsall in the West Midlands in 2004. The stores offer a variety of non-food items, including clothing, health and beauty products, electrical goods, furniture, homewares and leisure goods. Asda describes the new-format shops, based in retail parks, as “small department stores”.