Asda is staging a major push south opening 11 new stores in the greater London region over the next few months with plans for a further 150 by 2018.Two of the new stores will be a trial of a new smaller format. These will be Asda’s first ‘High Street’ stores, set on main thoroughfares at a time when many retailers are abandoning the heart of towns for retail parks. The retailer will also open seven standalone petrol filling stations, not attached to any existing stores, and two new superstores. Arch rival Tesco has announced 43 store closures, Morrisons 23 stores and Sainsbury’s has abandoned 40 new supermarket projects and cut 500 jobs. Discounters Aldi and Lidl are still growing. Aldi plans to open around 60 new shops.
Craig Bonnar, the Asda director responsible for store development, said: ‘We have set out a clear five-year strategy which includes expanding further into London and the South East, and we anticipate this will include opening 150 petrol stations and 1000 Click and Collect sites by 2018’.
Questions:
1 How might management of the above supermarkets determine which stores should be closed?
2 How might Asda management determine which stores to open?