Asda develops its ‘Clicks and Bricks’ strategy
Asda, the value retailer, has committed to the extension of its digital department Click and Collect.
Online business is a core part of Asda’s growth strategy and the merchant hopes to have over 1,000 locations by 2018, currently only holding 218, and to generate £3bn in annual sales.
The move follows an announcement that came earlier this year in August to accelerate investment in technology and infrastructure to make shopping more convenient; allowing customers to shop for what they want, when they want it. At the time Asda confirmed its multichannel formats remain central to its “Clicks and Bricks” strategy, which included increasing Click & Collect and mobile capacity.
Inline with previous message, Asda has now confirmed three strategic priorities for the next five years to help build on its position as the UK’s leading value retailer and to widen customer access to Asda from 53% of the UK to 70%.
Speaking at Asda’s third quarter results event, its CEO and President, Andy Clarke, explained his vision: “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 £1 billion. Secondly, we will make a £250 million 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.”
Asda has also upped the pace of its multichannel expansion with new online order kiosks and collection lockers in store as part of a trial. According to Retail week, Asda has introduced transactional kiosks to provide more access to its non-food product range. Shoppers will be able to browse products on its website across twenty stores and log into their Asda account. The kiosks are in addition to the grocer’s dedicated JML kiosks, which allow shoppers to browse the shopping channel’s range.
To allow for further innovations in this area the retailer is maximising its relationship with parent company Walmart, to bring new in-store and technology innovations to the UK. What’s more, looking ahead to the end of the year, Asda has said that it expects 75 per cent of customers to shop through multiple channels this Christmas.
Source: your.asda.com/press-centre/
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