Asda is to launch a membership-free cash and carry operation at its Patchway, Bristol store, with the concept set to be rolled out across the UK if successful.
The operation will have its own dedicated management team and offer bulk packs, everyday essentials and own label ranges from the Walmart-owned Sam’s Club. It will also have a different identity to Asda and a separate store entrance.
Speaking about the news, industry expert, David Gilroy, believes it is a great move by the supermarket: “The current wholesale market is over-supplied. Many operators are working on scarily skinny margins. Should they be worried about the incursion threat increasing from “serious” to “urgent”? Yes and no.
“Customer value is a delicate flower – that fine balance across: price, reliability, quality and service. Perception of value needs to be constantly checked and validated. Wholesalers close to their customers with a well-defined proposition and offering great value have little to fear. Those who don’t have their game together will suffer,” he added.