Asda plans mini stores to combat sales dip

SUPERMARKET giant Asda has vowed to create hundreds of smaller stores after its out-of-town outlets saw sales drop during the freezing winter weather.

The firm, which is owned by US firm Wal-Mart, plans to open its first small-format stores, including one in Cumnock, Ayrshire, towards the end of March as part of a programme to add ten stores that will create 6,000 jobs this year.

The supermarket lost out in the snowy weather during its busiest trading period at the end of the year. Chief executive Andy Bond said the freezing weather was some of the most challenging the firm had ever experienced.

"We have far fewer stores than our competitors, so our 18 million customers have to drive a little further to get to us," he said. "Not surprisingly, this meant the four weeks of snow and ice from December 18 impacted on us more than any other food retailer."

The firm said the first three openings this year will be in Cumnock, Kings Heath in the West Midlands and Tweedmouth, in Northumberland.

Asda also wants to capture a greater share of the online grocery market after it saw sales in its home food shopping division increase by nearly 50 per cent over the last year.

The supermarket said it was "too promotional" in 2009, as it was sucked into ferocious high street price wars.