The expansion of Asda Essentials stores is currently facing a number of challenges and the crucial Christmas trading period will be a key test for the new format, a spokesperson for the retailer told just-food yesterday afternoon (5 December).
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The Essentials format is Asda’s answer to Tesco’s and Sainsbury’s smaller scale convenience-style outlets. The stores mostly carry Asda own brand products, and the lower prices are designed to fit into the discount niche, which is currently dominated by the likes of Lidl and Aldi.
“The Essentials stores are a pilot format,” a spokesperson for the company told just-food. “We’re just going slowly. We need to see how they perform before rapidly expanding. The Christmas period will be a key test for the Essentials stores.”
While Asda has evidently taken the decision to slowly expand the format, finding available sites is also a major consideration barring any specific growth targets, the company said. “Its hard to find sites… The stores aren’t as small as typical convenience outlets. We will expand as and when appropriate sites become available,” the spokesperson concluded.
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By GlobalData
