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February 21 2008
Asda to hit £1 billion online revenue by 2011?
Asda plans for radical expansion include an additional 1500 jobs to be created at its home shopping and Asda Direct web site, over one million products for sale online, and £1 billion sales per annum by 2011.
Asda announced its biggest jobs programme this decade, creating more than 9,000 new jobs through new store openings, extensions and online business expansion.
7,000 jobs will be created over the next twelve months through the opening of between 10 and 12 new superstores, 10 Living stores and 12 extensions to existing outlets. In addition to this, a further 1500 jobs will be created through the expansion of Home Shopping and Asda Direct.
The new store programme, which begins with the opening of Andover store in Hampshire this March, will add over 800,000 sq ft to the retailer's estate representing an investment of around £400m.
The acceleration of Home Shopping to a further 40 stores, will create over 1300 new jobs, rolling out to over 95% of UK postcodes. While the roll out of Asda Direct, the retailer's online catalogue business, will create 200 new jobs through the opening of a new distribution centre. The service, which gives customers access to over 700,000 non food items will grow significantly, taking the number of products in excess of 1 million. The retailer estimates that by 2011, Asda's on-line business will be generating over £1bn sales per annum.
Chief Financial Officer, Judith McKenna commented:
"This major investment demonstrates our on-going commitment to bringing low prices and fantastic service to even more people across the UK.
"We have an impressive track record of regenerating areas at the edge of and in town centres throughout the UK, showing our ongoing commitment to local communities."
This is a radical change for Asda, grabbing £1 billion per annum by 2011 is a tough target to make and Asda is going to have to spend heavily on advertising and SEO to achieve this target, so good times are ahead for SEOs and TV.
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