If floor space is an accurate measure, then Asda can claim to be the fastest-growing supermarket chain in the UK, says a new report.
Asda has 10.5 per cent more floor space now than it did two years ago - more than 1.5 million square feet of additional trading space.
According to research by chartered surveyor Colliers CRE, the average expansion across the big four and Waitrose in that period was just three per cent a year.
CRE head of out-of-town retail Colin Dunkerley told Retail Week that growth rate will not be affected by the economic downturn. "We don't think the credit crunch is going to affect this. Food store acquisition is a long-term business. All the operators have got to take a long-term view and they can't take their foot off the gas," he said.
The Leeds-base UK number two now has 15.3m sqft at its disposal, compared to market leader Tesco's 23.3m sqft, which has increased by 5.7 per cent since 2006.
Sainsbury’s has ambitious plans to expand its area, Colliers CRE said: “In the food sector, demand for space continues unabated with planning policy forcing supermarkets back in town. Sainsbury’s leads the field with an aggressive corporate target of growing trading space by 10 per cent per annum. Tesco faces problems with cannibalisation of its existing stores as a consequence of the recently introduced Competition Commission ‘market share’ test. Taking full advantage of the economic downturn, the discount food stores are prospering, with Lidl and Aldi acquiring aggressively.”
The combined force of Co-op and Somerfield will see more space come onto the market, after the Office of Fair Trading ruled that 126 stores must be sold for the deal to go ahead. Dunkerley said: "All of the food store operators have submitted requirements and are preparing bids to take packages." He feels that the eventual number of stores sold will top the minimum number required.
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