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Sustainability at ASDA - Essay Example

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Sustainability at ASDA Customer inserts his/her name Customer Inserts 1.0 Introduction The topic for this report is the incorporation of sustainability into the ASDA shopping mall project at Wolverhampton…
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Sustainability at ASDA
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Sustainability at ASDA

Download file to see previous pages... Supermarkets in Europe are investing time and effort into the accomplishment of sustainability in their operations since this is the new competitive advantage they ought to possess. The paper discusses the drivers as well as the sustainability initiatives to be undertaken by ASDA in its shopping centre at Wolverhampton, keeping in view dynamics of the industry as well as social, political, legal, economic and other factors. Before delving into the concept of sustainability, it is useful to understand the nature of the grocery industry in the U.K. The U.K supermarkets industry was worth more than ? 150.8 bn in 2010 which showed considerable increase of 3.1% compared to the last year (Schnedlitz et al., 2010). Food and grocery expenditure accounted for 0.52% of retail expenditure (Schnedlitz et al., 2010). Of this 0.53%, 21% is roughly spent shopping for the same in convenience stores (Schnedlitz et al., 2010). The private label brands, including Tesco, Asda, Morrison’s and Sainsbury’s have their unique brand identity and are not me-too or imitations of their branded competitors (Schnedlitz et al., 2010). The U.K retail market seems to be on the maturity stage of its lifecycle, however, growth is still quite prominent. The market is on its verge to a 15% growth in the next 5 years (IGD, 2010). Economic dynamics such as rising interest rates and consumer prices, house prices as well job insecurity are only few of a plethora of factors affecting firms in this sector (IGD, 2010).The new government following the election in May, 2010 also seems to bear impact by way of its proposed contractionary fiscal and monetary policy which could mean tough times for the high end markets. The history of ASDA can be traced back to the 1920’s when farmers in Yorkshire created the Hindell’s dairies in 1920 (ASDA, 2011). The company was an instant hit and diversified and expanded to become the Associated Dairies and Farm Stores Ltd in 1949, hence the name ASDA (ASDA, 2011). At the same time, in 1958, two brothers came up with The Asquiths store which offered, to some extent, convenience shopping to customers at a single place (ASDA, 2011). In 1965, the Asquiths merged with Associated Dairies and Farm Stores Ltd. to create ASDA (ASDA, 2011). Thereon, the company was named as ASDA in 1970 when The Asquiths was acquired by Associated Dairies and Farm Stores Ltd (ASDA, 2011). Today, ASDA is known as a subsidiary of Wal-Mart, and is a merchandising and grocery retailing giant in the U.K. The company owns about 583 stores that stock various items ranging from grocery to apparel (ASDA, 2011). ASDA has its headquarters in Leeds, U.K and is home to approximately 178,000 workers (ASDA, 2011). The company is widely known for its staunch sustainability initiatives and has undertaken massive reforms in the same area in order to maintain its competitive edge over competitors such as Morrisons, Sainsbury’s Tesco and Waitrose. Sustainability is defined as the ability to survive or sustain. Popularly, the term environmental sustainability is being used to represent efforts to sustain and prolong the survival of all species and the ecosystem in the environment. A more comprehensive definition of sustainability encompasses all three foundations of sustainability, including the people, economy and the environment (Dunphy, 2000). The relation between these three foundations suggests that there exist limitations on the ...Download file to see next pagesRead More
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