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Monday, 19 August, 2002, 09:40 GMT 10:40 UK
New store 'is Scotland's biggest'
Asda Wal-Mart superstore near Bristol
Asda already has 34 Scottish stores
The official opening of the first Asda-Wal-Mart store in Scotland could threaten small businesses, it has been warned.

The new store - which opened in Livingston, West Lothian, on Monday - is the largest supermarket in the country.

It is the result of a £35m investment by Asda and has created more than 500 jobs.

But experts say that bigger stores are putting pressure on smaller shopkeepers.


It is the small independent retail outlets that are struggling the most

Matt Henderson
Accountant
Recent figures showed the number of retailers going out of business was up 133% in the last three months compared with a year ago.

There is a fear that this trend will continue to hit local shops.

Matt Henderson of accountants Grant Thornton said: "It is the small independent retail outlets that are struggling the most.

"Often these are family-owned businesses.

"I think they are suffering a lot because of the pressures on the margins from the bigger players and the larger competitors that they have to cope with."

Keeping costs down

He thought that the trend, which had been evident over the last five years, would continue as long as the larger stores were coming in to compete against the smaller retailers.

However, bigger is better according to the major supermarket groups because it helps them to keep their costs down.

The massive new Asda superstore - and its prices - is expected to attract shoppers from across the Scottish central belt.


Asda is going from strength to strength and is committed to growing its share of the Scottish market

Tony Page
Asda
The store sells a range of household and leisure goods.

Analyst Robert Clark, of the Retail Knowledge Bank, said these were "much more profitable" because they have higher margins than groceries.

Asda was bought by giant US-based retailer Wal-Mart in August 1999.

Asda has 34 stores in Scotland employing more than 12,000 people.

The company has also announced £75m plans to refurbish 17 stores over the next year - including a £9m facelift for The Jewel at Brunstane in Edinburgh.

Scottish retail managing director Tony Page said: "Asda is going from strength to strength and is committed to growing its share of the Scottish market.

"Today's Asda-Wal-Mart opening in Scotland brings the very best of American retailing and prices to Scottish customers."

 WATCH/LISTEN
 ON THIS STORY
Consumer affairs correspondent Gillian Marles
"There is a constant jostling to get to the top of the Scottish market"
See also:

03 Aug 02 | Scotland
03 Jan 01 | Scotland
03 Jan 01 | Business
21 Dec 00 | Business
23 Nov 00 | Business
10 Nov 00 | Business
10 Oct 00 | Business
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