Asda is to open a second-generation George store in Southend in October as it strives to get the format right....
Asda is to open a second-generation George store in Southend in October as it strives to get the format right.

Last year, the Wal-Mart-owned retailer decided to rein back the roll-out of George stores to take lessons from the initial tranche of openings and adapt its approach to become a fiercer rival to high street fashion players.

An Asda spokeswoman said that the store will push George's premium collections, such as G21 and its Must Have fast-fashion offer.

She added: 'We want to showcase our high fashion products. The store will be more in-tune with the high street, have improved fixtures, and strong graphics and PoS.'

The Southend outlet is the first new-build George store and, if it proves a success, could mark a second wave of George openings.

Asda has nine George standalone stores. It opened the first two in Leeds and Croydon in 2003 and expanded steadily. However, property agent GVA Grimley was told to put the brakes on acquiring outlets for George last year and focus on the Asda Living non-food format.

Wal-Mart revealed this week that group profits had fallen for the first time in a decade. Second-quarter profits dipped 26 per cent to US$2.08 billion (£1.07 billion) because of the cost of exiting Germany.

Asda's total sales were up in the mid single digits, with comparable store sales in the low single digits.

Operating income at Asda was below expectation as the grocer cut margins to drive sales amid strong competition.

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