Asda sees online sales double and pledges to have 1m delivery slots by early 2021

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Supermarket Asda has seen online double in Q2, with overall sales up by nearly 4%. As a result it is working to add more than 300,000 delivery slots by 2021, is expanding its deal with Uber Eats and is reinstating its express click and collect service.

The chain, owned by the world’s largest retailer Walmart, is looking to add 40,000 new delivery slots this year and more than 200,000 by next to add to the 700,000 that it currently offers – already 68% up on what it had in place before the pandemic.

The company is also looking to expand its express delivery trial with Uber Eats from the current 10 stores, adding a further 25. The service, which launched in Pudsey in Leeds and Barnes Hill in Birmingham in July, gives shoppers access to 300 Asda own-brand products via Uber Eats that can be delivered with two hours.

Asda is also reinstating its express click and collect service in more than 300 stores.

Roger Burnley, Asda’s chief executive and said: “The pandemic has created a structural shift in customer behaviours towards grocery shopping. We have accelerated our online capacity expansion to meet levels we had anticipated reaching in eight years within a matter of weeks and we will continue to expand this offer.”

The move comes as the grocery sector logs further growth across the summer, with the latest research showing that online grocery sales have grown by 117% to take a 13.5% share of sales.

Asda’s move to tackle this with volume comes just as rival Tesco vows to waive the cost of delivery for Clubcard holders and marks a distinct heating up of the grocery delivery war.

With this increased demand for online grocery, many retailers are feeling the pinch around delivery, with consumers ditching loyalty to a retailer in favour of securing a delivery slot. This is prompting thelikes of Ocado and Amazon Fresh to actively muscle in on the big four and other traditional retailers.

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Cath Kidston store front
Industry
31 Mar 2023

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