Asda, the UK subsidiary of Walmart, has set out plans to expand its logistics network with new and expanded distribution centres as part of a £500m investment over the coming year.
It said the distribution centres, would provide additional capacity and efficiency to its logistics network, as it expanded its store network.
Andy Clarke, president and chief executive of Asda said: “I look forward to seeing these new stores and depots open for business and welcoming new colleagues and customers to our team.”
The retailer is replacing its existing distribution centre in Scotland with a larger site to increase capacity for delivery of groceries to stores in Scotland and Northern Ireland.
Plans for the other two sites have already been revealed. The new site in Rochdale will service chilled and frozen products to stores along the M62 corridor.
In August, Asda said that it was submitting plans for a 633,150 sq ft distribution centre a 44-acre site at Wilson Bowden’s 420-acre Kingsway Business Park, Rochdale.
In Yorkshire it is upgrading a site that originally formed part of the Netto chain. When it completed the purchase of Netto in September 2010, it made the decision to convert Netto’s site at South Elmsall near Wakefield into an ambient cross-dock centre within its own distribution network.
It decided to close Netto’s other distribution centre at Daventry and move operations from there to its existing facilities at Magna Park.
The group said that over the past five years, Asda’s distribution team had delivered almost 25 per cent more products, despite driving 19m fewer miles – these three new depots take an additional one million miles off the road.
The investment in the logistics network will support its store expansion programme. Over the coming year it plans to open 25 new stores.
Asda’s investment plans were unveiled during a UK visit by Doug McMillon, president and chief executive of Walmart International. He said: “Our continued investment is because we see a tremendous opportunity in front of us – I’m proud of the difference you’re making and that we can make an even bigger difference in the lives of our customers and the communities we serve.”