Asda, which is now owned by US giant Wal-Mart, plans to spend £160m building 12 stores in the Midlands and the South-east. Mike Abel, general manager for Asda, said preferred partners Carillion, Laing, HBG and Pearce Retail would be used to deliver the stores.
Abel added that Asda’s expansion programme would be centred on the South-east.
Currently, 65% of the group’s stores are located in Scotland and the north of England, with only 13% inside the M25. Safeway Stores and J Sainsbury have also announced expansion plans and Tesco, the sector leader, is expected to announce plans for this year in a fortnight.
Peter Sitch, property and development manager at Safeway, said that although the firm would be concentrating on refurbishments and extensions, it would be building six more stores this year. Sitch said Bovis and Pearce Retail were likely to be the main beneficiaries.
Sainsbury plans to build 15-18 supermarkets and 35 smaller stores.
- Deputy prime minister John Prescott’s attempt to encourage supermarkets to site stores in town centres is encountering opposition from other departments.
A report from the Environment, Transport and Regional Affairs Select Committee says the DETR’s policy of curbing out-of-town superstores has been challenged by competition authorities and officials at the Treasury and the Department of Trade and Industry.
The Office of Fair Trading is conducting an inquiry into grocery retailing, which includes an examination of planning policy.
