Asda owners plan to roll out 300 petrol station stores

The Issa brothers are planning to roll out the grocer’s On the Move format to approximately 300 petrol stations over the next few years, according to The Times.

Asda’s new owners are pressing on with the expansion after a successful trial across five stores of EG Group’s 400 forecourts.

This expansion marks the first meaningful strategic move the Issa brothers have made since the competition inquiry of their acquisition of the grocer completed in June.

The Issa brothers’ acquisition of Asda was driven in part by the potential to expand the grocer’s presence across their forecourt empire.

The Issa brothers have also recently snapped up healthy fast-food chain Leon, with plans to expand its forecourt presence, and already run KFC and Starbucks franchises in the UK.

Big four rival Morrisons has been seen as an attractive acquisition for CD&R for similar reasons. The current frontrunner to acquire the grocer plans to open a chain of Morrisons convenience stores on the forecourts of its petrol station business Motor Fuel Group, provided it isn’t outbid by rival suitor and Majestic Wine owner Fortress. 

Asda’s new owners are also understood to be considering a roll-out of supermarkets sized between 30,000 and 40,000 sq ft in locations such as high streets and retail parks, and are reportedly lining up EG Group chair Lord Stuart Rose to chair the supermarket chain.

The search for a new CEO for Asda continues following the abrupt departure of Roger Burnley, although it is understood that an appointment is not imminent.