Bond said Asda was already tapping into shared procurement deals for non-food and primary agricultural products, such as bananas and is now stepping up collaboration on other deals.
“The other area where we are starting to have a more co-ordinated approach with our suppliers – and it is not about squeezing them, it is about having a global strategy with them – is with global vendors,” said Bond.
His comments on global purchasing came as Asda reported like-for-like growth in “mid-single digits” for the 12 months to December 31. That sales growth had continued into the early part of this year.
Bond hinted that Asda would consider acquiring up-for-sale grocer Somerfield on the right terms, but said developing a convenience business was not a priority. Last week, Retail Week reported that Asda had made a provisional first-round bid for about two thirds of Somerfield’s 900 stores.
“We are not saying if we are or not going to bid for it,” said Bond. “There are reasons to buy it and reasons not to buy it. Whoever buys it, it will depend on the price. Every asset has a price.”
Separately, Retail Week has learned that Asda has converted its last remaining Essentials store, in Pontefract, West Yorkshire to the Asda fascia. Asda Essentials was a pilot of two smaller stores, which sold a higher proportion of Asda’s own-brand products.
Asda highlights
Exceeded both profit and sales plan for 2007
Total sales up in high single digits, like-for-likes up in mid-single digits
Plans to open up to 22 stores, including 10 Asda Living, plus 12 extensions in a£400 million investment
Will create more than 9,000 jobs this year
Shared a£21 million bonus among 127,000 store and depot staff
Home shopping arm will start delivering in Northern Ireland and border areas in Republic of Ireland
Will open a further 50 in-store pharmacies, taking total to almost 200
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