Will the relaunched standalone George store prove to be third-time lucky for Asda?

Embattled supermarket Asda announced last week that it would be trialling a new George standalone store concept in Leeds.

The retailer, which is currently in the process of a huge turnaround under the leadership of executive chairman Allan Leighton, said that if the concept proved successful, it would replace all its existing Asda Living store fascias across the UK.

The pilot store, located at Crown Point Retail Park, will be “completely transformed with a new layout to showcase the best of George clothing and homeware,” the retailer said in a statement. “Plus toys, essential baby items and caffé area”.

While the supermarket giant is keen to emphasise that the trial store is a new step, the brand has trialled standalone George stores in the past. In 2004, Asda first opened standalone George stores, although the rollout was abandoned four years later due to high rental costs and low profitability.

Asda also explored international George stores and franchise in the early 2010s, with limited success.

“We have tried this before in the past, but that was on a smaller scale,” says a source at Asda. “But this time we’re going to give it a go. It’s the first time we’re giving it a real crack on a broader scale”.

So, what has changed this time around for Asda and will it work out this time around?

George again

While Asda has explored standalone George stores in the past, the fact that the retailer is trialling this new format on retail parks is an indication that it has learned from its past mistakes.

In the early 2000s, when it first trialled standalone stores, most of the George stores were based on the high street. According to IGD retail futures senior partner Bryan Roberts, the shift to retail parks will slash the store overheads and improve margins.

“Retail Park rents are generally more affordable per square foot compared to shopping centre or high street locations, making the store economics more favourable from the outset.”

Retail parks have also proven to be more resilient in terms of footfall compared to high street and shopping centres. Footfall increased 5.1% on retail parks in the four weeks between April 6 and May 3, according to the most recent data from MRI Software.

Along with a change in focus away from high street stores to retail parks, Roberts also says that the new stores will take the best of the existing Living layouts, while giving more space to strong performing George lines—such as childrenswear, apparel and home.

“The conversion from Asda Living to George involves removing several unproductive categories and giving the remaining categories more space, likely with enhanced lighting, flooring and fixtures.”

He also notes that the 13-day conversion timeframe from Asda Living into George stores shows that future expansion of the fascia should be relatively cheap and easy to do for the retailer.

Third time’s a charm

While the George brand has been around since 1985, Asda believes it resonates more strongly with customers now than it has at any previous point.

“The George brand is deeply woven into our heritage and our customers have a strong connection with it as a trusted name known for delivering both quality and value,” says Asda chief commercial officer at George and retail store Liz Evans.

“This latest transformation is all about making shopping easier and more inspiring with the George brand at its heart”.

Asda has said that it will focus on delivering “a major upgrade” in customer experience at the new standalone George stores, promising “faster, easier shopping thanks to streamlined checkouts, new self-serve options and hassle-free click-and-collect”.

“Our plans for the new George concept store in Leeds are really exciting and will offer a unique format that truly sets us apart from competitors,” says Evans. “We believe this new approach along with our focus on value, quality, and standout hero categories will continue to differentiate us in the market and we look forward to hearing what our customers think.”

With a well-established brand, a more curated range and on more cost-effective and flourishing retail park destinations, IGD’s Roberts believes that the new standalone George stores have every opportunity to be a success this time around.

“George has a strong prescence in the childrenswear market and has established themselves as a destination brand. These factors should provide a solid foundation for success in 2025.”