Reasons for success in ASDA acquisition:

1. Mirroring Strategy:
a. Similar strategies of increasing sales area by removing stockroom
space and increasing non-food sales area (clothes & electronics).
Therefore, product lines could be expanded.
b. Wal-mart strategies CEO: When we were acquired, it was like
acquiring a clone
c. Shared Wal-Marts everyday low prices culture.
2. Size of ASDA stores is higher on average than in the other UK retailers
3. Difference with other chains taken over by Wal-Mart in Germany and
Canada:
a. Chains in Germany were relatively small and in decline while
ASDA had a good, solid business.
b. The price position of chains in Germany was low leaving less scope
for differentiation on price.
4. ASDA brought benefits to Wal-Mart with their strong established George
brand for clothes.
5. The largest store format was renamed Asda Wal-Mart
Supercentre.(Most located north of the UK)
6. After 2004, market share collapsed due to regulations preventing outof-town shopping developments, which is what Wal-Mart was trying to
focus on.