Asda chases Tesco
by brian_turner
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Supermarket group Asda, which is owned by Wal-Mart, is planning to expand its home shopping service by 100% this year, to compete with rival retailer Tesco.
Asda launched over £100m of price cuts in April. It has invested over £7m in its asda.com home delivery service, making it significantly easier to use. Approximately 33% of the UK had access to the online shopping service in 2004 and this will be extended to cover 60% of the UK by the end of 2005. The company has also launched an online entertainment service, selling CDs and DVDs.
Asda is the second largest grocer in the UK, place behind Tesco, the market-leader. The company has recently opened its third ‘Living’ store, selling non-food items.
According to David Rutley, director of Asda e-commerce, the online-shopping improvements have increased customer satisfaction and customer retention rates.
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