Asda to launch convenience brand and trial store tie-up with B&Q

ASDA has announced a partnership with home improvement brand B&Q, as well as a new model of convenience store, in a bid to revitalise its business.

The supermarket said it would trial a new Asda On the Move convenience brand offering essential goods from three fuel station forecourts in the Midlands.

The trial brand will be located in Ashby, Leamore and Primley petrol stations, all operated by EG Group.

Alongside the convenience store brand, Asda has announced a new partnership with B&Q, offering small B&Q outlets within Asda superstores.

The trial of four “shop within a shop” compact B&Q stores will initially launch in Sheffield and Dagenham, and expand to two further shops at a later date. Customers will also be able to access B&Q’S full range instore for home delivery or click and collect. The new developments are part of Asda’s “test and learn” strategy, which has already seen partnerships with Uber Eats, Musicmagpie and Claire’s.

Asda signed a deal with Uber Eats in July to deliver a select range of goods from 25 stores, which has proved popular with customers.

Asda’s developments come as owner Walmart attempts to sell the brand, following a failed merger with Sainsbury’s last year. The merger was blocked by the Competition and Markets Authority, which said the move would lead to increased prices.

Walmart bosses said on Monday that they were in discussions with a number of third parties about a potential sale, with a deal to be finalised next year.

It is understood that the company has received three “strong” bids from private equity firms.

Asda’s management forecast more deals with partner brands on the horizon.