Asda has got one eye on the prize of becoming the UK’s number one supermarket despite declaring it has "more work to do" after a tough trading period.
Current chief executive Andy Bond said the retailer’s recent performance has been "below our high standards" with "more work to do to sharpen up in store" as he set out a five-year plan to analysts yesterday.
Asda's year-on-year sales growth of 2.7 per cent in March was ahead of the market but behind its rivals Tesco, Sainsbury's and Morrisons, according to Bond.
It is thought the aim is to improve its non-food performance, lifting the Asda Living chain from 25 stores to 150 with speculation rife that Asda will make make a bid for Argos and Homebase owner Home Retail Group.
It wants to build up its position to become the clear market number two in food and the leader in non-food sales over the next five years - opening 100 more supermarkets and 150 Asda Living general merchandise stores in total.
The supermarket remains cautious about the economic outlook amid pressure on consumers' pockets, political uncertainty and much more competition between major grocers.
Easing food inflation has depressed sales growth, while consumer confidence is "fragile" and the cost of living the "primary concern", Asda said.
The supermarket, which is owned by US retailing giant Wal-Mart, currently has 374 stores and more than 18 million UK customers.
The group hopes to hire a new ceo soon with Bond stepping down from the role to become part-time chairman after a successor is found.
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