Creating a new shopping experience is behind Leon acquisition
Asda will become more of a destination shopping experience with its acquisition of healthy fast food chain Leon, according to tax and advisory company Blick Rothenberg. Daniel Burke, a partner at the firm, says that the reason why EG Group, the new owner of Asda, has acquired Leon Restaurants for £100m is “to provide a better all-round shopping experience for its customers”.
“EG is no stranger to food outlets,” he said. “They own more than 6,000 petrol stations across 10 countries, and have been installing Starbucks, KFC, Burger King, Greggs, Cinnabon and Subway branches at their forecourts.”
“Asda and Leon are not two businesses you would expect to come together. Asda is traditionally ‘low cost’, while Leon provides good quality fast food with premium prices. But it is clear that Asda is looking at providing a new customer experience.”
He added: “I would expect Asda to follow this up with more acquisitions or partnerships in order to make Asda a ‘go-to’ place for all of your shopping needs. EG appears to be closing in on Caffe Nero after buying up the chain’s debt pile, and has even considered buying Topshop.”