Release Issued by Asda:

Supermarket Develops Its E-Commerce Business

ASDA announced today that it was 'developing' its e-commerce business (www.asda.com) to include an online photo shop offering high quality digital prints for as little as 10p each plus delivery*. The new service, which will launch early next month, will be available online to every UK household with internet access.

ASDA is also developing a photo collection service, which has been pioneered by its parent company Wal-Mart in the US, called 'Click and Collect'. The service will enable customers with broadband internet access to download digital images online and collect them from their local store within an hour.

ASDA currently operates 120 photo centres in stores throughout Britain making it the third largest photo shop in the country. The launch of its new online service will help extend its reach to every home in the UK putting further pressure on struggling high street photo chains like Boots and Jessops.

Orders placed using the online service will be delivered back to the customer within two working days. In addition the new site will feature a range of innovative photo gifts including personalised photo albums, calendars, baby bibs and pet gifts. Companies will also be able to download their logos to create corporate merchandise including gift cards and greetings cards.

Tony Page, non food director at ASDA said: "When it comes to photo processing we're aiming to put customers firmly in the picture, with a new online service that focuses on being quick and easy to use, all at ASDA prices."

This year ASDA has accelerated the rollout of all its online businesses. It has invested more than £7m in its grocery delivery service opening up an additional 7,000 delivery slots, launched an entertainment site with over 140,000 CDs, DVDs and games online, and introduced an online optical service selling disposable contact lenses.