ASDA ‘DISAPPOINTED’ TO BE DENIED BUILDING PERMITS IN NORTHAMPTONSHIRE, U.K.
ASDA puzzled by wind turbine snub [Northampton Chronicle & Echo (U.K.)]
ASDA management say they are extremely disappointed not to have been given planning permission to build a 417ft wind turbine at the firm’s Brackmills distribution centre.
West Northamptonshire Development Corporation’s planning committee voted three to one to reject the application on Tuesday night, largely on the grounds it would not be safe to have a turbine so close to workers.Tom McGarry, property communications manager, said he was puzzled and deeply disappointed by the decision.
He said: “ASDA has been working very closely with the local planning officers and the community to construct a proposal offering Northamptonshire the opportunity of creating an iconic statement of its commitment to combat the threats posed by climate change.
“The wind turbine would have produced enough energy to power the ASDA distribution depot as well as saving 5,000 tonnes of greenhouse gases a year.”
But Tony Skirrow, chairman of Great Houghton Parish Council who had campaigned against the proposal said WNDC’s decision showed common sense was alive and well.
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Posted by Joel Nezianya on Thursday, July 31 | 0 comments | Permalink
Asda Demands Editorial Space to Sell Publishers’ Magazines
Asda’s magazine purchaser recently e-mailed the company’s magazine suppliers, demanding either two pages of editorial space or advertising space each month in publications sold at Asda. The email also requested that the suppliers pay Asda £2,500 for shelf space in any new store that is opened, and also an “item set up” fee of £2,464 any new titles distributed in Asda stores. [Click here for the original e-mail or the full story.]
The first baffling aspect of this move by Asda is not the motivation, but the audacity. These demands encroach upon the voice that publications give to particular issues and constituents. By elbowing its way onto the editorial pages, Asda (which is owned by Wal-Mart) would have the potential to silence those issues or spin them in whatever way bolsters their profit margins. (Now, some would argue that Asda or Wal-Mart may write on issues in which they are interested that could correspond with the themes of the publication. But if that were the case, then these companies would have conveyed that interest and demonstrated more than a superficial commitment by already submitting pieces or working directly with particular communities.)
The alternative to the editorial pages is the advertising space, where magazines traditionally earn most of their revenue. Not only would this amount to lost revenue for the magazines, but it would also foster serious tensions with Asda’s competitors. The price wars between Asda and Tesco have been bloody, and if magazine publishers agree to Asda’s demands, other distributors would surely revolt.
Moreover, cowering to such a demand by grocers and retailers would severely compromise any notion of a publisher’s content independence. An initiative that provides Asda and Wal-Mart the ability to alter any of the content of a magazine is a slippery slope away from a top-down regulation of speech by disinvested corporations.
In response to the furious reactions from publishers, Asda has released statements, implying that the e-mail contained their “wish list” and that they are expecting to go to the negotiating table. Asda claims that when the publishers bring their own list of demands, a compromise will be reached. But as they prepare to take their seats at the bargaining table, I would implore publishers to stand together against a particularly suspect infringement upon their autonomy and to remember that walking away from the bargaining table is always an option.
Posted by Joel Nezianya on Wednesday, July 30 | 0 comments | Permalink
Wal-Mart’s Asda Demands Editorial Space to Sell Publisher’s Magazines
Publishers blast Asda editorial demands [Brand Republic (U.K.)]
Asda has waded into a row with publishers over its plans to plans to force magazines to give the grocer free editorial or advertising in return for shelf space.
Asda has emailed a number of magazine distribution companies requesting two pages of editorial or advertising space each month, as well as a request for £2,500 for shelf space for each new Asda store opened. The supermarket company is also asking that any new title distributed in its stores will be subject to an ‘item set up’ charge of £2,464.
An industry insider told Marketing that Asda’s plans showed a ‘shocking lack of understanding of the costs of producing a magazine.’He said,‘With the rising cost of paper, many of these retail demands are totally inrealistic and highly unprofitable for specialist publishers.’
A spokesperson for Asda said that the email was a starting point for discussions. ‘The email sets out a number of proposals aimed as a starting point to begin discussions. As with any negotiation, both parties have a wish list which will quickly change as middle ground is sought and an agreement that suits both parties is found.’
Asda is also asking the publishers ‘hurdle rate’ for new titles carried in stores, which means if sales of the magazines are 20% less than forecast the supermarket will be compensated with the difference.
Posted by Stephanie Lee on Wednesday, July 30 | 0 comments | Permalink
Asda Targets Gamers with Newly Launched Magazine
ASDA targets gaming market with customer mag [Brand Republic (U.K.)]
Asda will target gamers with the launch of a new dedicated magazine boasting a circulation of over 2m.
The quarterly magazine will be called the Asda Games Magazine and will be a free reviews-based publication aimed at building on Asda’s position as the second largest games retailer in the UK behind Sainsbury’s.The magazine, which is aimed at the family market rather than experienced gamers, will have the largest circulation of any games magazine publication in the UK, and its launch is part of a sales growth plan over the next three years with family gaming a key area.
The retailer said that the magazine is a key innovation in supporting this growth by offering uniquely targeted information and advice to the core Asda mums market.
The first issue is available in the August Asda Magazine as an insert and the magazine is also part of a wider Asda Games First initiative, which includes new ranges in-store, new fixtures and more space dedicated to games.
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Posted by Stephanie Lee on Wednesday, July 30 | 0 comments | Permalink
W. NORTHAMPTONSHIRE, U.K RESIDENTS STRIKE DOWN WIND TURBINE PROPOSAL
Blow for ASDA as turbine is refused [Northampton Chronicle & Echo (U.K.)]
Supermarket giant ASDA has been told it cannot build a wind turbine the size of Northampton’s lift tower at a warehouse after residents raised concerns about the scheme’s safety.
The firm applied to the West Northamptonshire Development Corporation to build a 417ft turbine in the car park of its distribution centre in Brackmills.
It said the £2m structure would generate enough electricity to power 1,250 homes and prevent the release of 5,000 tonnes of carbon dioxide.
But members of the WNDC’s planning committee agreed it would not be safe for workers at the firm’s depot to have a turbine nearby.
The committee made their decision after hearing protests from angry residents and Brian Skidwell, from the Campaign to Protect Rural England (CPRE), who said he was afraid the turbine could one day break.
He said: “My greatest concern is public safety. Turbine accidents are becoming more and more common and ones of this size are normally put in remote locations where an accident is unlikely to harm people.
“An accident on this site however, would have dire consequences.”
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Posted by Tony Calero on Wednesday, July 30 | 0 comments | Permalink
Asda Moves Up to Become U.K.’s No.2 Online Grocer
Asda overtakes Sainsbury’s to become No 2 online grocer [The Independent (U.K.)]
Asda has overtaken its rival Sainsbury’s for the first time to become the UK’s second biggest online grocer.
The Wal-Mart-owned supermarket chain grew its home shopping grocery sales by 71.8 per cent for the 12 weeks to 15 June, compared with the same period last year, according to TNS Worldpanel figures seen exclusively by The Independent.
The revelation will ratchet up the pressure on Sainsbury’s in the burgeoning home shopping market, although both supermarkets’ online grocery sales are dwarfed by market leader Tesco.
It is understood that Sainsbury’s grew online sales by just 17.3 per cent over the same 12-week period to 15 June.
Asda first overtook Sainsbury’s in May and has remained marginally ahead of its rival since then. Food and drink account for the vast majority of the TNS Worldpanel home shopping sales, but these figures also include traditional non-food grocery items, such as cleaning products.
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Posted by Stephanie Lee on Tuesday, July 29 | 0 comments | Permalink
Wal-Mart Looks to Expand to Ireland
Supermarkets face competition from retail giant Asda [Sunday Business Post]
The Irish supermarket sector is set for a shake-up, with retail giant Asda considering entry to the market in the Republic and a large British wholesaler starting operations in Ireland.
The news comes as a price war looms, with SuperValu and Dunnes set to follow Tesco by announcing price cuts.
Informed retail sources said that senior executives from Asda, the second-largest retail chain in Britain, have visited sites in Donegal and other border counties in recent weeks. Asda entered the market in the North two years ago, and is now considering a move into the Republic.
Nisa-Today, a €1.3 billion British wholesaler, also plans to enter the Irish market. The company is in discussions with a number of Irish retailers and has initiated trials with a number of stores.
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Posted by Stephanie Lee on Tuesday, July 29 | 0 comments | Permalink
Wal-Mart Scores Low on UK Survey of Superbrands
Just one day after this release chronicling Wal-Mart’s continuing reputation problems and the impact they have on the company’s business, a new study from the UK shows Wal-Mart’s branding is struggling overseas as well.
The Superbrands Council conducts an annual poll surveying the top UK brands. According to the group’s website, “Every year we commission an independent research process that asks a panel of experts and thousands of consumers their opinion on literally every major UK brand.” The survey included a wide range of consumer brands and ranked them according to respondents’ impressions of the company.
Wal-Mart’s wholly-owned UK subsidiary, Asda, dropped a whopping 253 places since last year’s survey, and came in a lowly #439 out of 500 companies, directly behind Kentucky Fried Chicken.
As we mentioned yesterday, the company’s continuing reputation for low wages, employee mistreatment, unethical sourcing and environmental damage undoubtedly contribute to its low scores in surveys such as this. It’s in Wal-Mart’s best interest to improve its brand quality from the bottom up, raising wages for its lowest earning employees and taking responsibility for its social impact all along its production chain.
Google ‘UK’s top consumer brand’ [BBC News]
Official Top 500 Superbrands 2008/09 (PDF) [Superbrands]
Wal-Mart’s Reputation Problems Continue [Wal-Mart Watch Press Release]
Posted by Alex Goldschmidt on Tuesday, July 22 | 32 comments | Permalink
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