Asda is to slow its planned store expansion in London and scale back the roll-out of its “click and collect” scheme as it seeks to cut costs.
The supermarket, which recently recorded its worst-ever quarterly sales figures, made the announcement as part of its new strategy to focus efforts on its “core business”.
Dubbed “project renewal”, the 18-month strategy will see Asda ease up on plans to build more stand-alone petrol stations across the UK.
Plans to role out 1,000 click and collect points by 2018 have also been shelved, while the grocer will speed up investment in 95 of its largest stores.
The supermarket said it would permanently close its Business to Business sales operation, which focused on selling direct to other businesses, “in the next few months”.
Chief executive Andy Clarke said the changes would ensure the supermarket was not “spread too thinly”.
He added: “Asda is a strong and profitable business which has built its success on delivering everyday low prices and good value to customers through efficient, friendly and well-managed stores. This is a winning strategy and we are determined to stick with it.
“Over the last two years, we have shown that we are ready to make necessary and early changes to match that ambition to the demands of our customers, especially at a time when the market is clearly undergoing permanent and rapid structural change.”