Asda is to scale back its plans for new superstores as it becomes the latest supermarket giant to announce a reduced spend on bricks and mortar in favour of online sales channels.
The American-owned retailer said it would create up to 2,500 jobs in the UK this year as it invests £700 million in its outlets and online operations.
But the 12 new openings it proposes form less than half a previously-anticipated total of 25 new outlets.
The announcement comes just a week after Tesco said future growth would be focused more online and announced it was scrapping more than 100 major store developments.
Announcing a 4.5% increase in total sales last year, Asda said it was shifting its focus towards “multi-channel” sales including click-and-collect services.
The supermarket said revenues had risen to £22.8 billion during 2012, up from £21.8bn the previous year.
“I’m proud that in the continuing and very challenging trading environment we were able to increase total sales by 4.5% last year,” said chief executive Andy Clarke.
“This shows that we are continuing to get it right for customers. By focusing on their needs through accelerating our investment in the technology and infrastructure to make shopping more convenient, customers can shop for what they want, when they want it.”
The £700m investment is £200m more than previously expected. Two of the 12 stores slated to open this year are already trading a supermarket in Larkhall near Glasgow, and a non-food Asda Living store in Coventry.
The 10 yet to open include five large superstores, four smaller supermarkets and one Asda Living store.
Work to build a new £24m Asda store at the former NCR plant in the Myrekirk area of Dundee a project which will create around 400 jobs is under way.
But the retailer said while bricks and mortar stores are central to growth, the shape of its investment has shifted its focus to accelerating its multi-channel business.
It said it was making further investment in its click-and-collect services, including a ‘same day’ drive-through pick-up service on grocery orders.
Asda which is part of the world’s biggest retailer, Walmart employs more than 175,000 people in 568 stores and depots across the UK.