Asda is planning to increase the number of click and collect locations from 218 to over 1,000 in the next five years and expand into London and the South East.
Reporting a 0.3% increase in like-for-like sales for the 13 weeks to 4 October 2013, Asda said it has set its sights on breaking into parts of the UK where its market share is low but where customer demand is high, with a particular emphasis on London and the South East.
Asda said it plans to increase physical access to its brand from 53% to 70% by 2018.
The supermarket intends to expand its supermarket format and grow the number of its standalone petrol filling stations. Innovation in its large stores will also continue including the George 21 concept and the pilot announced last week which will see eight Barclays branches in stores from early 2014.
Asda said online business remains a core part of its growth strategy and it expects to generate £3bn annual sales by 2018.
Click and Collect will form a significant part of this approach, the retailer said.
Asda is also looking to close the price gap with the discounters by investing £1bn in lowering prices and £250m in quality, style and design over the next five years.
Asda CEO and president, Andy Clarke, said: “I’m pleased with our performance in the third quarter of this year. The market conditions are tough, competition is fierce and our customers’ budgets are under intense pressure. We’ve continued to invest in lowering prices which has held them down for our customers while driving volume growth. This means we enter the crucial fourth quarter in a solid position.
“Looking to the longer term, we recognised some time ago that no matter whether the macro economy is slowly improving, every day finances remain under pressure and our customers have less time. Consequently, they are changing the way they live, budget and shop, to adapt to this new economic reality.
“We regard ourselves as the UK’s leading value retailer and it is against this backdrop that I have today set out our strategic priorities which will improve, extend and expand the business over the next five years. There are three major components to this approach which will redefine value. First, we will build on our heritage of low prices by rebasing our pricing to the tune of £1bn. Secondly, we will make a £250m investment in quality, style and design and thirdly, we will expand Asda to reach new customers in the UK, particularly London and the South East.”