Asda is stepping up its convenience store expansion, targeting 25 new openings in the second half of the year.
This marks a key step in the supermarket’s strategy to expand its smaller store formats and strengthen its presence in towns and city centres.
According to The Telegraph, the supermarket reduced the pace of its convenience store rollout in the previous year, with only 12 openings recorded.
The renewed expansion forms part of a wider turnaround strategy led by executive chairman Allan Leighton, who rejoined the business in November.
Asda’s market share has declined from 14.8% to 12.5% since its 2021 acquisition by private equity firm TDR Capital and the Issa brothers.
Earlier this month, data revealed that Aldi has overtaken Asda in food and drink sales, dealing another setback to the struggling supermarket.
Aldi secured a 10.6% share of food and drink sales in the 12 weeks to 23 March, edging past Asda as its market share dipped to 10.4% from 10.5%.
On the push into convenience, Leighton told The Telegraph that his spending plans would “build [Asda], reset it, turn it into what it was,” but admitted they would mean a “material reduction” in profitability.
Asda’s upcoming openings will include former Co-op sites, part of the 470 locations it has acquired from Co-op and EG Group in the last two years.
The supermarket’s expansion plans reflect increasing competition in the convenience sector, with rivals such as Tesco and Waitrose pursuing similar growth strategies.