EMCC European Monitoring Centre on Change

Asda

Company/Organisation:
Asda

Geographic Location

Country: United Kingdom

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.11 - Retail sale in non-specialised stores with food, beverages or tobacco predominating
Group: Wal-Mart

Employment Effects

Announcement Date: 21-02-2006
Type of Restructuring: Business expansion
Foreseen End Date: 31-12-2006
Planned Job Creation: 7000

Additional Information

Supermarket group Asda is to open at least 25 stores in 2006 , creating 7,000 jobs, in an expansion aimed at returning it to growth after market share slid from 17% to 16.4% in 2005. The stores will include supermarkets, small neighbourhood shops and non-food stores. News of Asda's plans came as parent company Wal-Mart reported a 13% jump in fourth-quarter sales but fell short of targets with its current year estimates. Good Christmas sales helped push fourth-quarter net income to $3.59bn (£2.06bn) or 86 cents a share, but its current full-year forecast of $2.95 a share disappointed analysts.