Asda sees potential for 100 standalone George stores

Asda unveiled a standalone George shop at Crown Point Retail Park in Leeds earlier this month.

The retailer is pleased with a “good” initial performance and, assuming this continues, many more branches could follow – including conversions from the Asda Living fascia.

Asda executive chair Allan Leighton told Retail Week: ”It’s quite exciting. Its early days have been very good, as you’d expect. We think there is an opportunity for probably around 100 if it turns out the way that we think it will.”

Leighton is in the midst of a turnaround programme at Asda. While the big priority is to reestablish appeal in its core grocery market - and first-quarter sales fell - Asda’s George business has been a consistently strong performer. The brand, which is sold in Asda’s stores and online, generates sales of approximately £1.5bn a year. Asda reported today that in the first quarter of this financial year, George’s like-for-likes climbed 3.5%.

The George store in Leeds also carries home and general merchandise products and incorporates a cafe. It was described by Asda chief commercial officer, non-food and retail, Liz Evans as “an exciting step forward for the George brand”.

Evans said after the opening: ”We believe this new approach, along with our focus on value, quality, and standout hero categories, will continue to differentiate us in the market.”

Asda has opened standalone George stores in the past, notably in the early 2000s. However, roll-out hopes were scuppered by high rent costs and low profitability.