Primark owner Associated British Foods bought the 120 Littlewoods stores for £409m this week and has announced that it is to sell off 60%.
“Most retailers on the high street will be looking to pick up stores,” said Shore Capital retail analyst Darren Shirley.
Asda is due to open its 10th standalone George in Brighton next month and is considering up to 50 additional sites.
“We are aware of the Littlewoods situation,” said Asda’s property commercial manager, Simon Leonard.
The Littlewoods acquisition will take the number of Primark stores to 190. Sales for the chain were up 12% to £448m for the half-year to March 5, with like-for-like sales up 6%.
“There is still a great opportunity for Tesco and Asda’s clothing. With Primark growing, the impact will be felt by the mainstream,” said Shirley.
The OFT is considering referring the acquisition to the Competition Commission.