Drivers have been warned of huge impacts to parking at a major supermarket after it revealed plans to sell off some of its car parks.
It comes after Asda revealed it could be forced to get rid of five car parks across crucial stores in bid to raise approximately £5million to help cope with its substantial debt burden.
The supermarket chain is looking to offload nearly 10 acres of car parking space and nearby fields across stores in Slough, Reading, Burgh Heath near Epsom, and Tilbury in Essex and Cardiff.
Property sources estimate the deals could provide a much-needed cash injection to help address Asda’s £6billion debt pile.
Do you have a story you’d like to share? Get in touch by emailing[email protected]
The supermarket saw sales drop five per cent in the latest financial reportASDAThe move forms part of wider efforts to revitalise the struggling grocer under executive chairman Allan Leighton, who took over last November.
Newsteer, which is advising Asda on the sales, has informed potential developers about the “surplus space” that could be converted into new homes or shops adjacent to existing Asda supermarkets, but the move would impact drivers who would struggle to find parking at their local stores.
The real estate adviser has set out minimum levels for how many parking spaces Asda requires at each location. Property sources believe drive-through operators could be particularly interested in the land.
These developments could potentially boost visitor numbers to the existing Asda stores. Ian Lawrence, Asda’s head of mixed-use developments, previously indicated the company was looking at alternative uses for surplus car parks.
“We have surplus car parks where we could do other uses such as retirement living or student living, if it’s in the right location,” Lawrence said last May.
The sale would reduce the number of car parking spaces at the affected stores, but Asda has specified the minimum parking capacity it needs to maintain.
The need to raise cash urgently comes after recent figures found that Asda’s sales dropped by five per cent in the four weeks to February 23.
Last May, Asda bosses struck a deal to sell the freehold of its 10-acre Park Royal superstore in Ealing to Barratt, Britain’s biggest housebuilder.
The car park sales represent the latest attempt by Asda to find more funds for its business turnaround.
But the move has been met with mixed views from drivers with one person calling the plans “short sighted”.
They shared: “Yet another short-sighted cash grab moves as they start to see their car parks and customers as even bigger cash cows.”
Another person warned that “breathing life back into Asda to regain market share is going to be near impossible” if the sales go ahead.
“A Combination of changes to shopping habits, the weekly big shop is in decline, Asda have lost its undisputed crown as the cheapest price retailer to Aldi and Lidl, the Asda brand has been tarnished by underinvestment in stores,” they warned.
More shockingly someone else shared: “Flogging off the car parks is asset stripping to the bone. Not long now before Asda goes the same way as various other private equity acquisitions, making thousands of loyal staff unemployed and defaulting on small suppliers. Another day in a broken corrupt capitalist model.”
Asda plans on selling five car parks which could raise £5million ASDAA spokesman for Asda said: “It’s common practice for national retailers with large property portfolios like Asda, Tesco and Sainsbury’s to explore how best to make use of surplus land in their property estate.
“Prospective parties interested in these sites are advised to contact Newsteer.”