Asda steps up Tesco battle

THE battle between the UK's two largest supermarket chains is set to intensify after Asda announced plans to open 15 new stores and create 6,000 jobs.

The chain, which is owned by US giant Wal-Mart, is spending £600m on the expansion programme as it aims to hit back at Tesco, which is believed to be winning market share from all key rivals.

A further 20 existing stores will undergo a refurbishment programme during 2005.

As part of the expansion, the Leeds-based company will open five non-food stores during 2005 following the launch of its Asda Living outlet in Walsall. The non-food stores will be a mix of the Asda Living brand and stand-alone George clothing outlets.

Tesco is currently developing its own non-food outlet, which will concentrate on clothes, books, DVDs and CDs. The market leader is believed to have 82 new traditional format stores in various stages of development.

Tesco has a market share of nearly 30%, with Asda holding around 17.5% of the market. Asda currently has 276 supermarkets and hypermarkets in the UK, along with the Living store in Walsall and six George clothing outlets.

New store openings will range from a 100,000 sq ft superstore in Milton Keynes, Buckinghamshire, to smaller developments such as a 16,000 sq ft store in Pembroke Dock, Dyfed. Some stores will be premises purchased from Safeway, Woolworths and the Co-op.

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