Asda convenience format roll-out fuelled by £2bn EG purchase

1st November 2023 | Jack Oliver

Asda is set to roll out its Asda Express convenience format at 356 sites following the completion of its £2.07bn purchase of EG Group’s UK business.

EG Group, one of the world’s largest petrol forecourt groups, is owned by brothers Mohsin and Zuber Issa, who are also co-owners of Asda alongside TDR Capital.

Asda has already been opening its new format at 119 former Co-op sites with petrol forecourts, following an acquisition last year.

The retailer said the two acquisitions plus three standalone Asda Express stores already open bring its total number of convenience sites to 478. It added that it plans to open a further 300 standalone convenience stores by the end of 2026. This is in addition to its existing estate of 580 supermarkets and 31 Asda Living stores, as well as 321 petrol forecourt station sites.

Asda said the acquisition will bring down the price of groceries and fuel for millions.

In July, Mohsin Issa was criticised by the chair of a committee of MPs for “wasting” time and ignoring questions after being quizzed about fuel prices and employment practices.

EG Group will continue to operate 32 sites in the UK, and will retain certain foodservice brands including wholly-owned bakery business Cooplands, as well as franchise businesses with Starbucks, KFC, Sbarro, Chaiiwala and Cinnabon.

Gary Lindsay, managing partner at TDR Capital, said: “This transaction is all about growth – and bringing together the complementary strengths of Asda and EG UK. We are creating an enhanced and more diverse Asda business that delivers even greater value for its customers on a daily basis in stores and online. Becoming the number two UK supermarket again and delivering a stronger and more compelling proposition for UK consumers are the metrics we will judge the success of this transaction by.”

Lord Stuart Rose will continue as chair of the new, combined business, with Dame Alison Carnwath as non-executive director, and Mohsin Issa and Gary Lindsay as directors. The Asda board is continuing its search for a permanent chief executive.


Looking for more retail news? you might find these interesting