Gifts Today magazine

Asda puts click and collect expansion on hold

Supermarket giant to focus on big stores.

Asda is scrapping investment in click-and-collect sites and slowing down its London expansion as it bids to rejuvenate existing stores.

The grocer is slowing down plans to have 1,000 click-and-collect locations across the UK by 2018 and will not be expanding the service it runs at London Underground stations. Big four rivals Tesco and Sainsbury’s have already quit the Tube scheme.

The U-turn comes after Asda’s retail director Mark Ibbotson said two years ago: “We believe customers will value the convenience of collecting shopping at their home tube station rather than carrying the products bought in premium convenience stores on their commute home.” Asda also has click-and-collect sites at park-and-ride locations and business parks.

Asda will also slow down its London expansion, shelve plans to develop more standalone petrol stations and close non-core arms including its business-to-business sales operation – which includes bulk orders to nurseries – within “the next few months.”

As part of the move 29 jobs will be axed at its head office in Leeds.

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