Asda sales drop as new owners unveil c-store expansion plans

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Grocery giant Asda has reported a dip in second-quarter sales on the day it unveiled expansion plans for its Asda On the Move forecourt store format.

For the period between April 1 and June 30, 2021, the grocer reported a 0.7% dip in sales to just over £5bn with adjusted EBITDA of £315m.

Asda on the Move fascia

Asda plans to open up to 200 forecourt convenience stores

While one-year like-for-like comparisons fell, Asda reported that two-year sales comparisons were up 3.1% for the period, excluding fuel.

Asda’s like-for-like clothing and general merchandise sales rose by 1.4% in the second quarter versus the same period in 2019. The retailer also noted that the “lockdown trend” of consumers trading up continued despite restrictions lifting with like-for-like sales of its premium Extra Special range growing 23%.

Alongside its second-quarter figures, the grocer and its new owners, Mohsin and Zuber Issa, provided more detail about their plans for a UK-wide expansion of the Asda on the Move convenience store format set to roll out across EG Group forecourts.

The retailer said it would look to open up to 200 Asda on the Move sites next year, with further c-stores to be opened through to 2023. This followed five trial Asda on the Move stores, which first opened last October.

Each store will be around 3,000 sq ft and stock up to 2,500 products, including a selection of Extra Special products and ”a more extensive range of fresh produce and chilled lines” than is usually found at forecourts. The shops will also have food service offerings from EG Group partner brands such as Greggs and Subway.

The Issa brothers said: “The Asda business has proved incredibly resilient in 2021, as customers continue to eat more at home and enjoy food that is both fantastic quality and great value. Our plans to roll out Asda On the Move will bring Asda to new customers, enabling them to pick up food-to-go, essentials for an evening meal or treat themselves to premium Extra Special products from a range of convenient locations. We continue to see significant opportunities to drive innovation across the business and we look forward to working with the Asda team to execute our growth strategy.”

The retailer also confirmed Retail Week’s reporting of the departures of chief operating officer Anthony Hemmerdinger and chief strategy officer Preyash Thakrar, who have both left with immediate effect.