The Wal-Mart-owned retailer resigned from the organisation in June, claiming the industry body failed to offer value for money, struggled to represent its whole membership and was unduly influenced by Tesco.
However, Asda this week changed its mind and agreed to pay its subscription for the year from July 1. Asda president Andy Bond (pictured) is believed to have played a key role in the decision, having taken the view that both Asda and the BRC would lose out if the retailer quit.
The retailer's decision is a big victory for BRC director-general Kevin Hawkins. The loss of the UK's second-largest grocer would have been a huge blow for retail's trade organisation, whose membership already lacks Morrisons and Arcadia.
Asda director for legal and external affairs John Longworth said the retailer had decided to reverse its decision because the BRC had listened to its worries.
'We had concerns about the BRC's focus, value for money and ability to get retail's voice across,' he said. 'But I've been very impressed with the responsiveness shown in relation to those concerns and I feel we've got a reasonable chance of making it work.'
Longworth claimed several fellow BRC members had expressed sympathy with Asda's concerns, although other key members are understood to have put pressure on Asda to reverse its decision.
'Our first preference is to work in co-operation with the rest of the sector and support the industry organisation,' he said. Hawkins said he was 'delighted'with Asda's decision to stay. 'Asda people have made a very important contribution to our work over many years and our constructive and co-operative relationship will now continue,' he said.
Longworth was a member of the BRC board prior to Asda's decision to quit and is expected to continue in this role.
Separately, Asda's George fashion brand is extending its offer into cosmetics. The grocer is launching 150 lines in 30 stores before Christmas and, depending on the success of the range, will roll it out aggressively across its store portfolio next year.
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