Asda is due to sell its in-store photo centres and self-service photo kiosks to Photo-Me International, reports The Guardian.
The UK newspaper states that Photo-Me will buy the photo business for £3.35 million and £2 million in stock from Asda.
According to The Guardian, the photo sites will now be treated as concessions within the supermarkets for the next ten years, while still paying commission to Asda. The deal will be completed by October.
The UK retailer is also discarding its in-store pizza-making service, further aiming to salvage its sales profits, as its main grocery sales continue to plummet in the face of rivalry with Aldi, Lidl and Tesco.
Photo-Me’s chief executive, Serge Crasnianski, said, “This is an interesting opportunity to significantly expand our UK business in a strong set of locations and increase our market share in the digital photo-printing market, which we believe has growth potential in the digital age.”
According to The Guardian, Photo-Me operates in 17 countries and has 6,600 photo booths across the UK. The company recorded a pre-tax profit rise of 15%, contributing to £40.1 million overall last year.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Aoife Lawless. To subscribe to ESM: The European Supermarket Magazine, click here.