ASDA, a British supermarket chain, was acquired by Wal-Mart in 1999. The British chain also follows Wal-Mart's strategy of making goods available at a low cost so as to attract customers. Thus, a major objective for ASDA is to be a value retailer that helps customers save money on their purchases. Another is to source products locally in order to play a role in the local communities they operate in.
ASDA was originally formed in the 1920s as Hindell's Dairies. The company was established by a group of Yorkshire farmers who processed and sold meat and milk products through Hindell's Dairies. In 1949, the company changed its name to Associated Dairies and Farm Stores Ltd. The grocer merged with Queen's Supermarkets to form ASDA Stores Ltd in 1965.
ASDA aims to be a value retailer that surpasses the customer's expectations in terms of product price. To this end, the supermarket chain says that it will provide customers with goods as a lower price than its competitors do. At its more than 300 stores across the United Kingdom, ASDA sells food and groceries, as well as other products for the home.
Another objective for ASDA is to source its products locally so as to provide customers with fresh food and play a role in the local community. This means that the food at a regional supermarket is made in the region or grown in the region. It could also be a local delicacy that customers in a certain region are interested in. To enable local sourcing, ASDA has a buying team that works with local suppliers in different regions to bring their products to ASDA stores.
Attaining ASDA Objectives
In order to enable local sourcing, ASDA tries to make its dealings with small suppliers free of hassles, as far as possible. For instance, it doesn't act on the assumption that these suppliers have the latest technology. And it offers favourable payment terms that help these suppliers better manage their cash flows. In order to make good on its objective of providing value products, ASDA has a private-label brand. Products available at ASDA stores are also available under this brand, including food and groceries.