The History of Asda
The History of Asda: From Yorkshire Roots to Retail Giant Asda Stores Limited, commonly known as Asda, is one of the United Kingdom’s leading supermarket chains, with a market share of approximately 12.6% as of January 2025. Founded in 1949 in Leeds, West Yorkshire, Asda’s story is one of innovation, resilience, and adaptation, driven by the entrepreneurial spirit of the Asquith and Stockdale families. From its humble beginnings as a small retail operation to its current status as a multi-format retailer owned by TDR Capital and the Issa brothers, Asda’s history reflects the evolution of British retail and consumer culture. This comprehensive account traces Asda’s journey over nearly a century, exploring its origins, growth, challenges, and transformation into a modern omnichannel retailer. Origins: The Asquith and Stockdale Families (1920s–1940s) Asda’s roots lie in the early 20th-century Yorkshire, where two families—the Asquiths and the Stockdales—laid the groundwork for what would become a retail revolution. The Asquith family, based in Knottingley, West Yorkshire, operated as butchers, with W.R. Asquith expanding his business to seven shops by the 1920s. His sons, Peter and Fred Asquith, were actively involved and would later become co-founders of Asda. Concurrently, a group of West Riding dairy farmers, including the Stockdale family and Craven Dairies, formed Hindell’s Dairy Farmers Ltd. to consolidate their operations. This cooperative effort marked the beginning of a collaborative ethos that would define Asda’s early years. In 1949, these efforts culminated in the formation of Associated Dairies & Farm Stores Limited, a public company led by Arthur Stockdale as managing director. The company focused on pork butchery shops under the Farm Stores brand and established the Craven Dairies brand for cake shops and cafés. By the 1950s, Associated Dairies had expanded its footprint in northern England, capitalizing on the post-war economic recovery and growing consumer demand for affordable food. The stage was set for a pivotal merger that would birth the Asda brand. The Birth of Asda: 1960s The 1960s were a transformative decade for Asda, marked by the merger of the Asquith brothers’ retail ventures with Associated Dairies. Inspired by a 1958 trip to the United States, where they visited Piggly Wiggly, considered the world’s first supermarket, Peter and Fred Asquith sought to revolutionize British retail. In 1963, they converted an old cinema, the Queens Theatre in Castleford, into the UK’s first self-service supermarket, trading as “Queens.” A second store followed in a converted indoor market in Edlington, and a purpose-built supermarket opened in South Elmsall, where Asda still operates a distribution center today. The Asquith brothers pioneered innovative retail practices, including food discounting and late-night shopping on Fridays, which were novel in the UK. A notable early success came when their buyer, Jack Hewitt, ordered 1,000 cans of Crosse & Blackwell soup, cut off the labels for a sixpence postal order redemption, and sold the cans at a 3d discount. This initiative introduced the concept of food discounting, which resonated with customers and became a cornerstone of Asda’s value-driven ethos. In 1965, the Asquith brothers partnered with Associated Dairies, led by Arthur Stockdale’s son, Noel Stockdale. The merger created Asda, an acronym derived from “Asquith” and “Dairies” (though some sources suggest “AS” stood for Associated). On May 3, 1965, the Asquith brothers sold their stores to Associated Dairies, with Peter, Fred, Noel, and Eric Stockdale appointed as joint managing directors. That same year, Asda acquired the GEM chain, including an out-of-town store in West Bridgford, which increased weekly sales from £6,000 to £60,000 in six months. These stores were rebranded as “Asda Queens,” reflecting the company’s early branding strategy. By 1967, Asda opened a store in Billingham, County Durham, and by 1969, Noel Stockdale bought out the Asquith brothers’ stake, becoming chairman. The abolition of Resale Price Maintenance in the mid-1960s allowed Asda to offer large-scale, low-cost supermarkets, setting it apart from traditional grocers. Asda’s early stores were often located in repurposed industrial buildings, such as warehouses or mills, offering a limited selection at rock-bottom prices—a model tailored to working-class communities in northern England. Expansion and Diversification: 1970s–1980s The 1970s saw Asda solidify its position as a northern retail powerhouse. The company continued to open large-format stores, capitalizing on growing car ownership and suburbanization. Asda ventured into non-food sectors, including estate agencies and car sales, though these initiatives were short-lived. In 1977, Asda aired its first television advert featuring the iconic “pocket tap,” a gesture symbolizing value for money that became synonymous with the brand. By the 1980s, Asda expanded into southern England, acquiring Allied Carpets, 61 Gateway Supermarkets, and the furniture retailer MFI. In 1985, Asda merged with MFI to form Asda-MFI plc, reflecting its ambition to diversify beyond groceries. However, these acquisitions strained the company’s finances, and the 1987 Black Monday stock market crash exacerbated its challenges. Asda sold its dairy subsidiaries, severing ties with the original Associated Dairies, and renamed itself Asda Group Ltd. The sale of MFI in 1987, in the largest management buyout in British history, and Allied Carpets to Carpetland in 1993 allowed Asda to refocus on its core supermarket business. In 1989, Asda made a significant move into fashion with the launch of the George clothing brand, in partnership with British designer George Davies. George offered affordable clothing, shoes, and accessories, becoming a major revenue stream and one of the UK’s largest fashion retailers by volume. That same year, Asda acquired 90 Gateway Superstores for £705 million, expanding its southern presence but overstretching its resources, leading to financial difficulties. Turnaround and Walmart Acquisition: 1990s The early 1990s were a challenging period for Asda, with debts reaching £668 million by 1991. The appointment of Archie Norman as chief executive in 1991 marked a turning point, often cited as one of the most successful retail turnarounds in British history. Norman, alongside new chairman Patrick Gillam, implemented sweeping changes. In 1991, a £357 million rights issue reduced debt, followed by a £347 million rights issue in 1993. Asda cut over 500 management positions, sold underperforming stores to