Wal-Mart’s attempt to break into the convenience sector has been set back after the group closed a pilot store less than a year after it opened.
Asda’s ceo Andy Bond launched the low-cost format Essentials stores just 10 months ago but one of its two trial stores, in Northampton, is due to close by the end of this month.
The move has raised questions about the suitability of the Essentials format, which is more akin to European discounters than the convenience stores introduced by Tesco and Sainsbury’s.
However, Asda says the Essentials trial will continue as planned, despite the store closure.
A spokesman for Asda said there are no plans to close the remaining Essentials store in Pontefract, in Yorkshire and all 12 staff at the Northampton branch will be assigned to local Asda stores.
He said: “Whilst the colleagues in the store have given it 100 per cent, the Northampton Essentials store performance hasn’t been meeting our high expectations,” he said.
The decision will come as a blow to Asda, which had made plans to open Essentials stores across the country.
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