Asda are showing signs they will be looking for a new creative agency and will be investing more into the supermarkets advertising, marketing and growth strategies as the owners want to overtake Sainsbury’s position as the UK’s second biggest supermarket. Brothers Zuber and Mohsin and London-based private equity firm TDR Capital bought Asda from Walmart in a £6.8 billion deal almost 18 months ago.
Mohsin Issa said: “We are happy to commit whatever we need to get to that position. It’s not like we have got a clear five-year ‘get out’ plan; we and TDR have bought this business for the long term.”
Part of their plan to grow the business includes expanding Asda’s convenience arm. Meanwhile, the brothers are also introducing dedicated greengrocers in its stores. By next month, 250 Asda stores will have dedicated “greengrocers” working in fruit and veg department, as part of a wider shift towards improving Asda’s product quality.
Asda’s sales fell 5.5% in the 12 weeks to February 20, according to Kantar Worldpanel. On a two-year comparison, which strips out the impact of Covid lockdowns, Asda’s 4.3% growth is barely half that of the wider market.
However, Mohsin Issa insisted it would not abandon Asda’s low price heritage. The supermarket’s entry-level “Smart Price” range is being revamped and from May will be widened to cover more than 300 products, up from 200 today.