Asda is to ramp up the volume and variety of general merchandise products that it sells online this summer, as speculation mounts that the grocer could lodge a provisional bid for Somerfield in the next two weeks.
The grocer will be the first of Wal-Mart’s overseas businesses to migrate onto the US giant’s global e-commerce platform, as the world’s largest retailer guns for a big uplift in online sales.
Asda multichannel director Tony Prescott said: “The global web platform will then be rolled out to the other 14 countries in the Wal-Mart empire.” Individual countries will use the platform to run their own online businesses.
By the end of this summer, Asda will offer 750,000 products for purchase online, including all general merchandise products sold in its stores.
The grocer will launch new general merchandise categories online, including toys and baby products, as well as 20,000 clothing products from its George at Asda range.
Asda’s online non-food sales are growing at about 200 per cent year on year, while its online grocery business is increasing 50 per cent a year. By 2010, Asda will sell more than 1 million SKUs online.
The retailer is also moving towards a full roll-out of Asda Direct – its combined web site, catalogue and in-store offer – following a successful trial in four stores.
Asda is searching for a distribution centre to serve Asda Direct customers. It will launch its first 1,000-page catalogue in time for Christmas, with more than 10,000 products.
Separately, first-round bids for local grocery chain Somerfield are due in the next two weeks. Speculation is swirling round the grocery sector that Asda could launch a provisional bid for the entire 900-store Somerfield chain, although it would sell off stores where there is overlap between both chains.
Asda said it will not comment on speculation. Retail Week has also learned that the Co-operative Group has had a team in London in the past two weeks meeting with investment bank Citi, which is conducting the auction for Somerfield.
A Co-operative Group spokesman said: “If an appropriate opportunity arose, we may well look at the business [Somerfield] – as we would at other retail businesses. That said, our immediate priority is the integration of our business, following the merger between the Group and United Co-operatives.”
Sainsbury’s, Waitrose, Tesco and Marks & Spencer are also thought to be interested in taking a tranche of Somerfield stores.
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