April 23, 2013

Asda plans £700m investment in UK

UK-based supermarket chain Asda has outlined plans to invest £700m to expand its multi-channel business and to launch new online services and stores in 2013.

By admin-demo

UK-based supermarket chain Asda has outlined plans to invest £700m to expand its multi-channel business and to launch new online services and stores in 2013.

Majority of the investment is aimed towards digital expansion, with company intending to launch a line of new services for its e-Commerce business.

While bricks and mortar stores are significant for retailer’s growth, the shape of the investment has shifted its focus to accelerating its multichannel business, the company added.

The retailer is set to launch a new digital scheme, ‘same day delivery’ for food grocery orders to deliver the products to customers on the same day of purchase.

Asda also plans to extend its ‘Click and Collect’ facilities to grocery shopping, scheduling the services across 200 stores by the end of 2013.

With this facility, customers can buy the product online and collect or return the goods at the physical stores of the chain.

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The new expansion is in addition to Collect Plus deal that was launched in March 2013, for George and Asda Direct items across 5,000 convenience stores and petrol stations in the UK.

The retailer has launched ‘drive-thru’ click-and-collect facility in York allowing customers to collect food and non-food orders through their mobile phone with a customer assistant loading their shopping into the car.

Commenting on the online expansion, Asda CEo Andy Clarke was quoted by The Telegraph as saying that click-and-collect service has grown more than the retailer’s expectations.

"This year there will be more invested in digital than previous years, but we are still committed to opening stores," Clarke added.

Asda plans to launch 10 new stores, including four new small format supermarkets, five superstores and one new non-food outlets.

These new stores are expected to add over 340,000ft² of total retail space in 2013, including the two stores that were recently launched.

Asda has also claimed that its expansion plan would create additional 2,500 new jobs across the UK.