Asda to open 110 convenience stores in battle for market share

Asda is aiming to reach a total of 1,000 stores in the hope of catching up with Sainsbury's. Photo: Richard Walker/Asda

Asda plans to open 110 convenience stores in February as it battles for market share with its supermarket rivals.

The UK's third-largest grocer is aiming to expand to a total of 1,000 stores in hoping to catch up with Sainsbury's, the second largest.

One hundred and nine of the sites are former convenience stores acquired by Asda from The Co-op, of which it bought 138 in 2022 in a £438 million deal, as well as one brand new store.

Many of them are located in the south of England, where Asda has traditionally had a smaller presence.

This comes as one of the billionaire brothers who own Asda is trying to sell his stake.< /p>

Zuber Issa, 51, has asked buyout specialists and retailers to explore the possibility of selling his 22.5% stake in the company, which he bought. acquired three years ago in a £6.8bn deal with his older brother Mohsin and private equity firm TDR Capital.

Mohsin, who is Asda's chief executive, confirmed on Friday that he was romantically involved with Victoria Price, a former EY partner who was Asda's auditor until she left the company in July last year. Mohsin and Ms Price said they were «in a relationship and building a life together» and asked for privacy for themselves and their families.

Ms Price has never worked for an Asda business and has not been audit partner.

Ms Price has never worked for an Asda business or been an audit partner.

Ms Price has never worked for an Asda business or been an audit partner audit.

Ms Price has never worked for an Asda business. p> Zuber Issa, 51, is considering selling his 22.5% stake in the company. Photo: John Super

During the cost of living crisis, Asda's market share lagged behind biggest rivals Sainsbury's and Tesco.

Its share of UK grocery sales fell from 14.2% in early 2023 to 13.7% in January 2024, while Sainsbury's and Tesco increased their market share.

At the same time, Asda has faced pressure from Aldi and Lidl as the discounters lured legions of shoppers through their doors with promises of lower prices in recent years.

Last month, Asda said it would start price-matching both Aldi and Lidl to fight back against the discounters, extending the scheme to 287 «essential everyday» food items such as milk, bread, cheese, tea, coffee, pasta and rice.

The supermarket added that it plans to refurbish hundreds more convenience stores acquired from its subsidiary EG Group by the end of March.

Asda has signaled it will cut prices at its new convenience stores, saying it will save shoppers around 8% compared to former Co-op stores and 15% compared to former EG sites.

Issa brothers sell UK EG Group's assets, including fast food chain Leon, were sold to Asda for £2 billion last year to help it pay off EG Group's debt pile.

Issas started their retail business. The company, which has a single petrol station in Bury, near Manchester, bought the grocer in a £6.8bn private equity-backed deal in 2020.

However, it has since faced questions from MPs over their high debt levels. and the complex structure of their sprawling empire.

The brothers recently introduced a four-day workweek at the supermarket to repair relationships with senior staff and combat high manager turnover.

The brothers recently introduced a four-day workweek at supermarket.

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Andy Perry, Asda's vice president of convenience stores, said: “Asda's significant investment in building a nationwide network of convenience stores is a key component of our long-term strategy to to become the number two player in the UK food market.»

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“February is a month of transformation for the program, with a record number of stores opening and all former Co-op sites converted to Asda Express sites.»