ASDA could be about to launch a cash and carry-style warehouse which will let shoppers save money by bulk buying.
The supermarket spin-off will work in a similar way to Costco but you won't have to pay a membership fee to shop there, reports The Grocer.
Currently customers have to fork out £15 a year to be an online member of Costco or £33.60 to shop in store, but it will be fee-free to shop in the Asda warehouse.
The retailer's US owners Walmart already own a similar chain of warehouse stores in the States called Sam's Club.
According to a brief given to suppliers seen by the trade publication, the store will sell the imported Sam's Club products, including its own-label Member's Mark.
It will also stock "everyday essentials" in even bigger pack sizes that aren't available in the supermarket.
Here's how to cut the cost of your grocery shop
SAVING on your shop can make a big difference to your wallet. Here are some tips from Hannah Maundrell, editor of Money.co.uk, about how you can cut the cost of your shopping bills:
- Write yourself a list – Only buy items that you need. If it isn’t on your list, don’t put it in the trolley
- Create a budget – Work out a weekly budget for your food shopping
- Never shop hungry – you are far more likely to buy more food if your tummy is rumbling
- Don’t buy pre-chopped veggies or fruit – The extra they’ll charge for chopping can be eye watering
- Use social media – follow your favourite retailers to find out about the latest deals
- Be disloyal – You may want to go to different stores to find the best bargains
- Check the small print – It’s always worth checking the price per kg/lb/litre when comparing offers so you’re making a like for like decision as a bigger box won’t necessarily mean you get more
- Use your loyalty cards – Don’t be afraid to sign up to them all. They all work slightly differently – work out what bonus suits you better and remember to trade in your points for additional rewards
The retailer is believed to be in early talks to open the stores.
But the brief also outlined plans to open the first warehouse at Asda's superbranch in Patchway, Bristol, on November 28.
The new chain will operate separately to Asda, under a different name with its own team and will have a separate entrance to the supermarket.
Tesco trialled similar ways to cater for the bulk buying trend with its Chef Central store in Cambridge, although it only caters for professionals in the hospitality industry.
One of its Jack's stores also sold just bulk products but it has since closed down a year after it opened.
Tesco now sells a Bulk Buys range in 200 of its stores.
Products for sale will include fresh produce, chilled, bakery, frozen and beers, wine and spirits, and will be displayed on pallets and racking.
In the brief, the retailer said: "The range will be constructed to make the store feel like a blend of the best of Sam’s USA and Costco.
"The customer can complete a full shop of everyday essentials whilst having the opportunity to purchase highly impulsive and differentiated items at a great price."
The memo also outlined plans for more stores to be rolled out across the UK is the trial proves to be successful.
An Asda spokesman told The Sun: "In the current competitive market it is more important than ever to respond to changing customer needs and the key to this is to innovate and to test new ideas.
"We have already launched some exciting trials this year and we’ll always be sure to let our customers know when there’s something new to look forward to."
It's the latest venture by the supermarket following its failed merger with Sainsbury's.
The multi-billion pound deal was blocked by the competitions watchdog over fears it would lead to increased prices in stores, online and at hundreds of petrol stations across the UK.
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