Asda has launched a fresh push to supply independent retailers with a new wholesale supply model.
The Leeds-based supermarket giant has struck an initial agreement with Scottish independent retailer One O One to trial its new Asda Convenience fascia at three of its stores in Glasgow.
Asda said the trial would provide an opportunity to “refine the model, assessing how to scale it more widely across the UK”.
It also stressed it would be separate to its existing and wholly-owned Asda Express convenience estate and would only be available to independent retailers.
Asda said the stores will stock around 3,500 products, including own-label, fresh and chilled groceries, and food to go which would be sold “at Asda’s well-known value prices”.
Asda is keen to work with further established convenience operators to deliver its branded convenience offer, and plans to scale the offer quickly across the UK.
“Launching Asda Convenience is an important step in extending our reach and making Asda’s great value accessible to more customers in the way they want to shop today,” said Asda Express, fuel & wholesale director Joseph Sutton, who joined Asda from Morrisons almost a year ago.
“By partnering with experienced independent retailers, we can combine our product range, pricing and supply chain strengths with their local expertise to create a truly compelling offer.
“This is just the beginning, and we see a real opportunity to scale this approach while building a broader wholesale business.”
One O One group retail director Paul Stirling said: “We’re incredibly proud to be the chosen convenience retail partner to launch the new Asda Convenience format and to play a key role in bringing this exciting proposition to customers across Scotland.
“With a long-established presence in communities throughout the Central Belt, we’ve built trusted local stores that understand the individual needs of the neighbourhoods they serve.
“Combining that local knowledge with Asda’s exceptional value, market-leading own-brand range and strong customer proposition creates a compelling convenience offer that gives shoppers greater choice than ever before.
“We’re excited to see the first stores open their doors and look forward to working closely with Asda as the new concept develops and the opportunity grows.”
Asda previously acted as a wholesaler to a number of EG Group forecourts before EG’s founders the Issa brothers bought Asda in 2001. These subsequently became company-owned stores after Asda then completed the £2.07bn acquisition of EG Group’s UK and Ireland operations in October 2023.
Asda also previously tried to court independent retailers and foodservice operators when it opened a 20,000 sq ft cash & carry concept called Deal Depot in Bristol in 2019 and had plans for four further sites. However the plans were disrupted by the outbreak of the coronavirus pandemic, meaning no other sites opened and the Bristol depot closed in 2022.
The rollout of Asda’s wholesale supply arm means Sainsbury’s is now the only one of the traditional big four UK supermarkets that does not supply to independent retailers. Sainsbury’s pulled the plug on its wholesale ambitions in 2021.
No comments yet