Asda has launched Asda Convenience, a new wholesale supply model for independent retailers, with a three-store trial in Glasgow marking its first step towards building a wider wholesale business.
The trial is being run in partnership with independent operator One-O-One and will test how retailers can operate stores under the new Asda Convenience fascia while bringing Asda's value-led proposition to local communities.
The three Glasgow stores will stock around 3,500 products, including Asda own-label lines, fresh and chilled groceries and food-to-go, all at Asda's value-focused prices.
Asda said the trial will allow it to refine the model and assess how it could be scaled across the UK. The company plans to work with established independent retailers as part of the proposed wholesale model, combining its product range, pricing and supply chain with retailers' local knowledge.
The new format is distinct from Asda's existing wholly owned Asda Express estate, with Asda Convenience specifically developed to support wholesale partnerships.
Joseph Sutton, Asda Express, Fuel & Wholesale director, said the launch was an important step in extending Asda's reach and making its value proposition available to more customers.
“By partnering with experienced independent retailers, we can combine our product range, pricing and supply chain strengths with their local expertise to create a truly compelling offer,” he said.
“This is just the beginning, and we see a real opportunity to scale this approach while building a broader wholesale business.”
One-O-One group retail director Paul Stirling said the operator was “incredibly proud” to have been selected as Asda's convenience retail partner for the launch.
“With a long-established presence in communities throughout the Central Belt, we've built trusted local stores that understand the individual needs of the neighbourhoods they serve. Combining that local knowledge with Asda's exceptional value, market-leading own-brand range and strong customer proposition creates a compelling convenience offer that gives shoppers greater choice than ever before,” he added.
Asda said customers can expect the new stores to offer the value, product quality and service associated with its wider estate.
The retailer said it intends to use the initial launches to develop the model, with an ambition to scale quickly if the trial is successful.
Asda’s move follows Morrisons, which has built a substantial independent franchise operation under the Morrisons Daily fascia. Morrisons has over 1,700 convenience stores, 700 of which are franchise sites.