Asda, the supermarket store chain, claimed by US titan Wal-Mart, was one of the first retailers in Britain to present the idea of Black Friday sales. However this year the company chose to stay away from Black Friday since the idea had gone too far and left the bargain sales to others. Asda’s chief Andy Clarke said that the company’s decision to stay away from Black Friday was one of the best they’ve made during this current year.
There is still a considerable measure of stock around at other retailers – TVs, DVD players, Xboxes and PlayStations. Meanwhile Clarke says he is prepared to start shooting at opponents in the significant Christmas season. The company now plans to put everything into Christmas sales. Asda has already started making bargain deals like £10 jugs of champagne. Last weekend the supermarket sold petrol for less than £1 a liter.
The choice not to cut costs was a more of an extensive strategic perspective with the attention on boosting profits regardless of the fact that the sales are less. The company is concerned about its commercial position and its stability in the market; hence it is trying to make long time choices. The majority of Britain’s ‘big four’ super market stores – Tesco, Sainsbury’s, Asda and Morrisons – are settling on some excruciating choices as value rivalry escalates. More awful for the big four, numerous customers are currently frequently going to German discounters Aldi and Lidl, which have multiplied their piece of the pie to 10 percent in just three years.
In 2010 Asda purchased 193 smaller Netto stores. Clarke, who was chief operating officer at the time and would be CEO, depicts the choice as inspired, giving Asda 193 smaller stores averaging 7,500 sqft and taking store region that may have gone to these discount retailers.