Asda is slowing down its convenience store openings and cutting capital expenditure to focus funds on addressing in-store issues.
Since revealing in December 2022 its target to open 300 convenience stores by the end of 2026, the grocer has only launched nine stores.
The supermarket chain was planning to open about 30 convenience stores this year, but that target has been scaled back to just 12, The Sunday Times reported.
However, a spokesperson for the grocer told the title it is still set to open 300 stores “in the medium term” and that it has identified a pipeline of 100 sites.
An Asda spokesperson told Retail Gazette: “Asda completed the conversion of 478 convenience sites acquired from the Co-op and EG UK to Asda Express in Q2, and the retailer is set to open an additional 11 Asda Express convenience stores by the end of the year.
“These stores will bolster Asda’s presence within inner city locations, bringing Asda’s heritage in uncompromising value to more customers.”
The grocer, now majority owned by TDR, has also reduced its capital expenditure budget by £100m this year.
The funds will be redirected to enhance product availability, improve store cleanliness, and shorten checkout lines. The revised capital expenditure budget will be between £350m and £370m.
The supermarket posted a 5.3% like-for-like sales fall in its second quarter. Its market share has fallen from 14.8% when the Issa brothers purchased the chain in 2021 to 12.7% last month.
Last week, chairman Lord Rose admitted he was “embarrassed” by Asda’s performance as he said it was time for Mohsin Issa to step back from his operational duties.
A spokesperson said: “While we recognise that our recent sales performance is not reflective of where we want to be, we are addressing this in H2 by investing in even greater value for customers and delivering a more consistent experience in stores, including enhanced availability and checkout resourcing.”
“Customers have noticed a significant improvement since we invested in hours, our store propositon and a focus on our top 1,000 lines at the end of June.”
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