Asda Expands With Launch Of Non-Food Arm

Mon, 06 Oct 2008
 
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Asda has launched a new non-food operation in a bid to compete with rival supermarket Tesco and home retailer Argos .

The Asda Direct website from the Wal-Mart-owned grocer offers approximately 10,000 non-food products, ranging from clothes from its George brand and furniture to power tools and toys .

The launch of the site is accompanied by a print run of 3 million 644-page catalogues that will be placed in all Asda stores in the coming days.

While the products will initially be delivered to the homes of shoppers, Asda added that there will eventually be an in-store collection option available.

An Asda spokesman said the website was in a 'trial' mode but chief executive Andy Bond identified non-food as a "huge area" for expansion.

Asda's move is the latest attempt by a supermarket to increase its sale of non-food items, which generally carry higher margins.

Details of Asda's plans to launch its own specialist non-food operation emerged as far back as Janaury, with sources at the UK's second largest supermarket chain describing the firm's intentions to deliver the 'ultimate online retail experience'.

Tesco, Britain's biggest retailer launched its Tesco Direct non-food arm in 2006 and now sells around 12,000 products online and around 7,000 through its catalogue .

Argos, Britain's largest household goods retailer sells around 18,000 products through its 1,800-page catalogue and has around 700 UK stores .

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