HeadLine: MARKET FORCES
The Mirror, 04/01/2001, p27
by SHAUN MILNE
SUPERMARKET giant Asda has unveiled a £30million plan to open its first
cut-price Wal-Mart supercentre north of the Border.
It will be the biggest megastore in Scotland, offering discounts of 40
per cent on everything from sportswear to electrical goods as well as
food and drink.
And it will bring around 250 new jobs to West Lothian when work starts
on the massive 155,000 sq ft store.
The move is the latest salvo in a desperate drive by Asda to stop its
arch rivals Safeway and Tesco grabbing a bigger share of the
£9billion-a-year Scottish grocery market.
And Scots shoppers will cash in, as Asda’s competitors are sure to
slash prices to hit back.
The expansion drive is a key part of Asda’s aggressive drive to become
the top supermarket chain in Scotland – a position held by Safeway with
a 21.3 per cent share of the Scottish market.
Asda is in second place on 19.7 per cent, ahead of Tesco in third place
on 18.1per cent.
Asda became part of the American discount Wal-Mart chain in August,
1999 but, until now, Scottish shoppers have noticed little benefit from
Yesterday, Asda said the first part of the new superstore will open in
November on a site in Livingston, West Lothian, next to an existing
store, with the second phase scheduled to be completed next year.
It revealed that the new supercentre will offer a range of 50,000
cut-price products, including branded sports clothes, top-of-the-range
TVs, videos and DVD players, as well as a DIY section.
Andy Clarke, Asda’s retail director, said: “The new supercentre will
combine the best of Asda’s food retailing know-how and Wal-Mart’s
world-leading general merchandise experience.
“With the opening of Livingston, Scottish shoppers will enjoy the
unique shopping concept that has been such a hit with customers south
of the border.”
Asda also confirmed plans to spend £70m updating its 33 Scottish
stores, adding more than 400 new jobs to the firm’s 12,000 Scots
Both Safeway and Tesco pledged to fight off the new challenge.
Safeway is set to spend £660m with Scots suppliers in a drive to
promote more home products.
Tesco said it will fight “tooth and claw” by opening more Scottish
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