Asda bosses have announced plans to open new stores in a bid to recover from a turbulent 2005.

The UK's second leading retailer said it would introduce "at least" 25 new stores this year, generating some 7,000 jobs.

The new branches will include non-food shops, as well as supermarkets and small community stores.

Asda's recovery bid follows a decline in market share and two consecutive quarters of failed internal sales and profit targets.

The retailer suffered a drop in market share from 17 per cent in January 2005 to 16.4 per cent at the end of last month.

Asda ceo Andy Bond has unveiled plans to launch a smaller cut-price store format - Asda Essentials - in an attempt to stave off Sainsbury's from usurping its second place position on the retail leader board.

But he is not expecting an overnight transformation, claiming it would take the supermarket giant at least 18 months to regain market share.

The first Asda Essentials store will open in Northampton in March, stocking mainly own-brand items.

The new store concept is Bond's most dramatic venture since his appointment last April.

He also announced last July that Asda would experience a serious staff shake-up.

In a move to cut costs the supermarket planned to axe 1,400 middle-management jobs and in November pledged £10m to recruit an extra 2,000 staff in the UK.

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