Asda convenience stores to take on rivals

ASDA is to open 110 convenience stores in February as it battles for market share with its supermarket rivals.

Britain’s third largest grocer is aiming to reach a total of 1,000 stores in the hope of catching up with Sainsbury’s, the second largest.

All but one of the sites are former Co-op convenience stores, of which Asda bought 138 in 2022 in a £438m deal. The other store is brand new.

Many of them are in locations across the South, where Asda has traditionally had a smaller presence. It news comes as one of the billionaire brothers who own Asda seeks to offload his stake.

Zuber Issa, 51, has approached buyout specialists and retailers to explore a sale of his 22.5pc shareholding, which he acquired in a £6.8bn deal three years ago alongside his older brother Mohsin and the private equity firm TDR Capital.

Mohsin Issa, the chief executive of Asda, confirmed last week that he is in a romantic relationship with Victoria Price, a former partner at EY, which was Asda’s auditor until it quit in July last year. Mohsin and Ms Price said they were “in a relationship and building a life together” and asked for privacy for themselves and their families. Ms Price never worked on Asda business and was not an audit partner.

Asda’s market share has lagged behind rivals Sainsbury’s and Tesco during the cost of living crisis. Its share of UK grocery sales fell from 14.2pc at the start of 2023 to 13.7pc last month, while Sainsbury’s and Tesco both grew.

Asda has also faced pressure from Aldi and Lidl. Asda said last month it would begin price-matching both Aldi and Lidl to fight back.