Asda opens first UK cash and carry style warehouse store

UK supermarket Asda, which is owned by US retail giant Walmart Inc, has opened its first cash and carry style warehouse in the UK under a new fascia, Deal Depot, that includes a selection of more premium wines.

The company, which unveiled its plans last month, has opened the new Deal Depot store, a 20,000 square foot cash-and-carry style warehouse that does not requires customer to pay a membership or subscription fees, next door to its existing Asda Patchway superstore in Bristol.

According to retail analysts IGD, it features a smaller selection of products than its regular Asdas, which are merchandised on pallets and racking, and comprise primarily house-hold branded products, rather than own-label lines, in larger scale format that are often available in retail, such as multi-packs, wholesale cases, catering packs and plus-size consumer packs – although customers are limited to buying six of any one item – presumably to deter large scale wholesalers.

Its BWS section includes a large central wooden wine fixture featuring boxes of wines from around the world, as well as shop floor tasting stations. 

The wine range includes more premium wines that are not currently available in its regular Asda stores, including a Ricasole Chianti Classico (£9.99), 19 Crimes Cabernet Sauvignon 2018 (RR: £9.49), Louis Jadot Coteaux Bourguignons Rouge (£13.99), Nautilus Estate Pinot Noir (£19.99), Chakana Malbec Attorante (9.49), and Altano Douro Red (8.49).

In addition to Asda in the UK and Walmart in the US, parent company Walmart Inc operates Sam’s Club, a chain of membership-only retail warehouse stores.

The retailer recently posted muted results for the third quarter (covering 1 July to 30 September 2019), arguing that concerns over Brexit had continued to negatively affect customer spending patterns, contributing to like-for-like sales falling 0.5%, although its core online business has outpaced the market and achieved double-digit growth.

In May, Walmart admitted it was considering floating the UK retailer on the stock-market in order to strengthen its long-term success, following the disintegration of  its proposed merger with Sainsbury’s  in which the Competitions and Markets Authority voiced concerns that UK consumers would be worse off if the two giant retailers combined forces.