Asda mission to strengthen its physical presence in the capital

Of Asda’s 568 stores only 10 are in London and while 98 per cent of the UK have access to Asda online, the perception in London is that only 47 per cent do.

The plan is to increase the Leeds-based chain’s physical presence in the capital by opening new stores, but it will also beef up its home delivery and Click and Collect operations.

It said it is not ruling out a move into convenience stores and petrol station forecourt stores, but it isn’t ruling it in.

At the moment 53 per cent of Londoners don’t believe they can shop at Asda online or with Click and Collect, giving the chain a huge opportunity.

Asda’s retail director Mark Ibbotson said: “We are going to have to do something different in London. It’s a big opportunity. Customers are paying too much in London.

“We are known for price. Delivering value has to be core to our principles and we are looking at channels we are going to trade in.

“We just have to push ourselves to get more supermarkets within the M25. London is driving the UK out of recession.”

Asda said that its new London stores will operate on the single price format. Many of its rivals charge higher prices in convenience stores than in big supermarkets.

Asda’s executive director of property and multichannel Karen Hubbard said: “Although we’re a major player in the UK grocery market we actually have a smaller store estate than you might expect – significantly less than our competitors.

“We have a strong presence in our Northern heartland, but low market share in the South East and London. Currently, almost half of the UK population feel as though they don’t have access to a bricks and mortar Asda.”

Last week Sainsbury’s overtook Asda as the UK’s second biggest supermarket chain. This was blamed on Asda’s lack of convenience stores.