Since Somerfield was acquired by a private-equity consortium in 2005, it has axed brand advertising and adopted an Asda-style everyday low pricing strategy.
Neither Asda nor Somerfield were prepared to comment on any potential deal, which would give Asda a 19% share of the grocery market. However, insiders said the Competition Commission would allow it to go ahead as supermarkets and convenience store chains are considered separately. Verdict retail analyst Nick Gladding said a takeover would solve Asda's problem of acquiring new space.
Separately, Asda marketing director Rick Bendel has split its marketing department into three divisions: brand communications and insight, private-label and marketing operations.
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