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The transaction is currently being scrutinised by the Office of Fair Trading however the plan is to convert as many of Netto's 193 stores as possible to the 'Son of Asda' format just as soon as the green light is given.
It looks and feels like a normal Asda store but the ranges on sale have been radically tailored.


For example ladies' underwear is located with health and beauty products, and men's socks are next to the shaving cream.
The key point about the smaller stores, she explains, is that the prices will be same as in bigger Asda stores. However Asda has been notoriously stubborn in its approach to date, only opening three slightly different varieties of hangar-sized stores. We realised we had to do something different and so we launched George standalone, Asda Essentials and Asda Living [its existing chain of large non-food-only stores]. So we went from nothing to having loads of things and we were not afraid to say that things were not working," she says.


The mistake we made with Essentials is that we didn't start with the customer, we started with an economic model," says Ms McKenna. We found that we could operate small stores effectively and then there was an opportunity to buy stores.




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