Asda Snapshot, February 2019 Retailer performance Must see stores 2017 2018e % change Turnover (£ ex VAT) 22,219m 22,696m +2.1% No. of stores 642 646 +0.6% Sales area (sq m) 1,989,875 1,999,166 +0.5% Asda, Didcot, UK New concept small format Supermarket, designed to compete better against the discounters Asda Eastlands Manchester, UK Asda’s latest thinking in big-box retail Asda PFS, Tottenham, London, UK A standalone PFS with convenience store See Report See Report See Report Source: Asda, IGD Datacentre Up next: Q4 and Full year 2018 results, 19 February 2019 Your checklist to trade with Asda Trading Priorities Volume and Value More focus on EDLP through investments to strengthen “Asda Price” “RollBack” price cuts to converge pricing with Aldi rather than lead the Big Four More direct relationships with suppliers to strengthen Asda’s low cost operating model Longer lasting promotions, with many lasting six weeks Simplicity Greater stability in the assortment to make stores lower cost to operate Focus on taking out costs that don’t add value for the customer through a mutual cost reduction programme Innovation Renewed focus on true innovation, particularly in fast growth categories to make Asda “the home for new” Launch of Asda Innovation Awards to encourage ground breaking and enduring innovations. Driving digital New focus to make it easier customers to switch between channels seamlessly, Consolidating data to develop a single view of the customer Leveraging the Walmart relationship to bring new technologies to stores Stores Focus on enabling improved execution and availability in-store Look through the lens of the customer: how can you demonstrate to Asda that you’re making improvements for customers? How are you driving operational efficiencies to reduce the cost of your goods? What investments are you making in product quality and innovation? How are you supporting online sales growth as Asda devotes more resource to this channel? Get closer to stores: Understand store operations and what makes it easy to implement plans. What products will you enter for Asda’s new innovation awards to win valuable media support? Engage with Asda on the fast moving CSR agenda, e.g. on the sugar tax, plastics and minimum alcohol pricing in Scotland. © IGD 2019 Follow us on Twitter @RetailAnalysis

Asda Snapshot, February 2019 Key marketing initiative See the full Asda profile on Retail Analysis Read Key executives Latest developments Roger Burnley CEO Commenced role on 1.1.18. Joined in 2016 as deputy CEO, having previously worked for Sainsbury’s as Retail and Operations Director and at Asda as Supply Chain Director Andy Murray Chief Customer Officer Appointed in February 2016 and joined from parent company Walmart Rob McWilliam Chief Financial Officer Appointed in July 2018 to replace Alex Russo. McWilliam, a former Asda finance director, rejoined the retailer from Amazon as a consultant in January 2018 Anthony Hemmerdinger Retail Operations Director Promoted from VP of retail south in Dec ’17and role extended to include logistics and supply functions in Auguist 2018. Previously held senior roles at Sainsbury’s Preyash Thakrar Chief Strategy Officer Joins Asda in Dec ‘17 after holding a number of senior positions across Walmart International, latterly VP for strategy and Real Estate Alex Simpson General Counsel & Company Secretary Appointed to role in May 2012 When? What? So what? December 2018 Sainsbury's and Asda challenge merger inquiry timetable Sainsbury's and Asda have lodged an application with the Competition Appeal Tribunal for a judicial review of the Competition and Markets Authority's investigation into their proposed merger. November 2018 Asda reports sixth quarter of growth Asda has reported a 2% increase in like-for-like sales for Q3, its sixth consecutive quarter of positive growth. CMA publishes Sainsbury's and Asda's case for merger In their evidence, the two retailers rebut suggestions that the merger could reduce competition and be against shoppers' interests by highlighting the strength of competition within the sector and arguing that the merger could enhance this. Asda trials pizza delivery service with Just Eat Following a pilot at Asda's Killingbeck store in Leeds over the past month, the new service will be rolled out to three further stores in Beeston, Wakefield and Livingston on November 19th. Further sites could follow depending on the success of the trial. © IGD 2019 Source: IGD Research