B&Q Ends Asda Partnership After Two Decades
Since 1996, B&Q has been in partnership with Asda, but that twenty year relationship has now come to an end. This could have significant ramifications for both retail companies and many customers who have come to rely on the partnership for their everyday needs. What does the ending of this partnership mean, and what are the impacts?
Background of the B&Q and Asda Partnership
B&Q, a chain of home and garden stores owned by Kingfisher PLC, offered everyday products and home improvement items, while Asda, part of the Walmart empire, provided a wide range of food and grocery items. By combining their strengths, both stores were able to offer a greater range of products to customers at more affordable prices.
Ending The Partnership
The decision to end the partnership was made by the two companies after assessing the current market, with both B&Q and Asda stating that the partnership was no longer fitting with their business models. It is reported that Asda was keen to focus more on their food and grocery business, while B&Q needed to focus on their core business, home improvement and gardening.
Impacts on B&Q Customers
The ending of the partnership means that many of the Asda items that could previously be purchased at B&Q will no longer be available from the stores. This includes a wide range of goods ranging from food items to cleaning products, and customers will have to source these from other retailers.
Impacts on Asda Customers
The ending of the partnership with B&Q will also affect Asda customers, as many of the home improvement goods that had been available at Asda will now be unavailable. This includes items such as tools, appliances and other items that are essential for carrying out home improvement jobs.
Impacts on B&Q Staff
For the B&Q staff, the ending of the partnership will likely mean a decrease in working hours as there is likely to be less demand for their services, with fewer customers able to access a wider range of goods. In addition, B&Q stores are likely to see less footfall due to the lack of availability of items that customers are no longer able to source from B&Q.
Impacts on Asda Staff
The staff of Asda are likely to be similarly affected, as the ending of the partnership will also mean fewer customers visiting the store as they are unable to purchase a wider range of items. In addition, Asda staff may be required to take on new roles such as stocking shelves with other items that can be sourced from other retailers.
Impacts on Kingfisher PLC
Kingfisher PLC will be impacted significantly, as the ending of the B&Q-Asda partnership will mean a decrease in revenues for the company. This is due to the fact that customers will no longer be able to purchase a wide range of goods from B&Q stores, making it less attractive for them to visit the store and purchase items.
Impacts on Walmart
The ending of the partnership is also likely to have a significant impact on Walmart, as it will mean a decrease in sales for Asda as customers will no longer be able to purchase a wide range of goods from the store. This could result in a decrease in profits for the retail giant, as customers may choose to buy their items elsewhere.
Impacts on the Retail Industry
The ending of the partnership could also have an impact on the wider retail industry, as customers may be less likely to shop at retailers that do not offer a wide range of goods. This could mean that customers may look to purchase their items from other retailers, reducing the overall profits of the retail sector.
Conclusion
The ending of the long-standing partnership between B&Q and Asda is sure to have wide-ranging implications for both stores and the wider retail industry. For B&Q customers, this could mean that a number of everyday items are less readily available, while Asda customers will have fewer home improvement items to choose from. It is also likely to have an impact on the staff of both stores and on the revenues of both companies and the wider retail industry. By ending this partnership, both B&Q and Asda may be missing out on an opportunity to better meet the needs of customers and, ultimately, to increase profits. British multinational retailer, B&Q, has announced the end of its partnership with fellow retailer Asda.
The partnership, which lasted for five years, saw the two firms collaborate in order to create hundreds of garden and home products available to customers in B&Q stores. It is understood that the two companies have failed to agree on a commercial strategy.
Despite the companies not being able to reach an agreement, it is reported that there will be no reduction in the number of employees at Asda and that existing product ranges produced by the partnership will remain available. B&Q customers will be able to continue to purchase current ranges and new ranges will be available in the future.
Although the partnership has come to an end, it is believed that B&Q and Asda will continue to have a close relationship, with B&Q continuing to source products from Asda, whilst Asda customers will be offered exclusive discounts when shopping at B&Q.
The move is said to be part of B&Q’s drive to offer customers the widest and best range of products on the market. The company also aims to continue to develop exclusive ranges and to extend its partnerships with other key suppliers.
Commenting on the relationship, B&Q chief operating officer, Joe Brent, stated: “We remain committed to our partnership with Asda and look forward to an ongoing relationship in the future. We are excited to see the potential of our new approach and to work with our partners to provide the best range of products to our customers”.
It’s clear that B&Q are looking to move forward with a new approach and with the help of their key suppliers, they are hoping to continuously improve customer satisfaction.
