ASDA - TDR Capital

ASDA is the third-largest grocery retailer in the UK with a c.14% market share and an omni-channel, multi format food and non-food offer. It is the second-largest grocery retailer in the North of England, Scotland and Wales, the #3 convenience retailer in the UK and has the second-largest online grocery platform in the UK.

The company operates a significant store estate across over 600 sites in the UK, with its core focus being the operation of edge-of-town superstores with an average surface area of over 4,000 square metres. The food and non-food offer are focused on everyday affordable pricing, targeting a broad customer demographic. ASDA operates in the large and historically stable UK grocery retail market that is underpinned by favourable macroeconomic factors.

At a glance
Status: Unrealised
Deal Type: Auction
Sector: Retail
Initial Investment Date: February 2021
Website: www.asda.com

Transaction

Following the successful partnership at EG Group, TDR Capital acquired ASDA jointly with the Issa Brothers (our co-shareholders in EG Group) in February 2021. The company was acquired from US retailer, Walmart, who remain invested in the business.

Since TDR’s investment

With a leading position in a resilient market, we believe that the company offers further retail growth upsides through continued investment in its omni-channel and convenience offering
In 2021, ASDA successfully launched its rewards and loyalty programme and as at September 2023 had over 5 million active monthly users of the app
The loyalty programme was supplemented with the launch of a consumer financial services offering through the launch of an ASDA credit card which rewards customers for shopping online and in store
Built out ASDA’s convenience retail offering with the acquisition of EG Group’s UK business consisting of 356 modern convenience stores with petrol filling stations and 462 foodservice outlets, as well as a further 119 convenience sites acquired from the Co-op. Through these additions to ASDA’s platform, the company has been able to launch its own value-led convenience retail concepts “ASDA Express” and “ASDA on the Move”