9,000 new jobs for Asda

Supermarket giant Asda, owned by US retailer Wal-Mart, has announced plans to create 9,000 jobs in the UK.

Britain’s second biggest supermarket chain said the jobs will be through a mixture of new stores, shop extensions and business expansion.

The company’s plan, its largest jobs programme since it was acquired by Wal-Mart for £6.72 billion in 1999, will include 7,000 positions being created over the next 12 months as it opens between 10 and 12 stores.

Asda is also planning to create another 1,500 jobs by growing its Home Shopping business and Asda Direct, its internet business.

The first new store is to open next month in Andover, Hampshire and will be followed by sites in Dalgety Bay in Scotland and Bridgend, Mid Glamorgan.

Asda’s Chief Executive, Andy Bond, said my objective this year is to lower prices for customers and we’ll be the lowest price retailer.

Asda said it had gained 2 million new customers since 2006, as its price policy attracted cost-conscious shoppers away from its competitors. Andy Bond said Asda remained very comfortable about its growth in 2008, although he noted that consumer confidence was weakening and said there will be more inflationary pressure.

In spite of the increase in jobs and stores, Asda is still trailing behind Tesco, Britain’s largest supermarket, which employs 270,000 compared to its rival’s planned 179,000 employees. Tesco has 1,252 shops compared to Asda’s 352.

Tesco is the biggest player in the British grocery market with a 30% share of the market. Asda controls 16.9% of the market, Sainsbury’s has 16.4% while Morrison’s is in fourth place with 11.5%.

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