UK: Asda's use of technology key to success
Asda offers online grocery services covering 98 percent of the UK population. It also has an Asda direct non-food site, a George.com e-commerce site with delivery to Europe, a strong mobile commerce site that accounts for 16 percent of online sales, a "Click and Collect" program that allows customers to order food online and pick up in two hours, and free Wi-Fi in stores.
Citi Investment Research analyst Deborah L. Weinswig said she was "most impressed" by Asda's level of e-commerce sophistication after attending a showcase in London.
"We believe that Asda's expertise with these technologies could be the secret sauce that gives Wal-Mart an advantage in the race to develop online grocery in the US, which we view as an attractive growth opportunity for US food retailers," she wrote in a note to investors. She reiterated her "Buy" rating on the stock.
Wal-Mart has been expanding its grocery and perishable food offerings online and on store shelves to help drive customers into its stores.
Source: businessweek.com
