Asda is to trial a new convenience store format with forecourt operator EG Group and introduce B&Q shop-in-shops inside some its superstores.
The move is part of Asda’s ‘test and learn’ strategy that launched last year and aims to develop partnerships with brands that complement the supermarket’s existing offering.
The new convenience offer is branded ‘Asda On the Move’ and will initially be trialled at EG forecourts in Ashby, Leamore and Primley in the Midlands.
EG operates around 360 forecourt sites across the UK and thousands in Europe, North America, and Australia. The TDR Capital-backed firm was recently named as a contender in the race to acquire Asda, although it is not thought to have submitted a final bid.
Whilst Asda has opened smaller-format stores in the past, the forecourt format represents its first concerted push into the convenience channel. Convenience stores have thrived during the pandemic as people looked to shop closer to home. Latest research by IGD forecasts that the channel will grow by 13.2% to £46.4bn between 2019 and 2022.
Meanwhile, the B&Q collaboration involves the trial of compact concessions within four Asda superstores. The first two stores, which will open in Dagenham and Sheffield later this year, will be operated by B&Q and sell a wide selection of products. In addition, the stores will offer access to B&Q’s full range via home delivery or click & collect options.
In addition, Asda revealed that it is piloting a trial with online retailer Music Magpie in five stores in the north and will be extending its existing partnership with accessories retailer Claire’s to a further 15 stores from September onwards.
Preyash Thakrar, Asda’s Chief Strategy Officer, said: “Our partnerships strategy is focused on making our busy customers’ lives easier. That means offering convenience when they visit our stores by bringing in complementary brands to help them complete more shopping missions in one location, and convenience that makes our great value products more accessible in local communities.”
He added: “We anticipate working with more businesses who share our passion for delivering value for customers in the coming months.”
Asda’s launched a grocery delivery partnership with Uber Eats in July, which has now been expanded to 25 stores.
NAM Implications:
- Worth a ‘what-if’ re the convenience model being rolled out to 360 EG forecourts…
- …and B&Q shop-in-shops being incorporated within Asda’s 340 superstores, at least.
- Opportunity or Threat?
