Wed, 24 Aug 2016 | DIVISION SALE
Photo-Me International, the instant photo equipment group, is the new owner of Asda's loss-making photo division in Britain.
Asda will get £5.4 million in cash for the sale of its 191 in-store photo centres and 172 self-service kiosks, and also run the associated online photo processing service. It will receive £3.35 million for the business and about £2 million for stock.
The plan is for Photo-Me to run the sites as concessions in the stores for ten years and pay commission to the supermarket chain. When the deal concludes in October, existing staff will be working for Photo-Me.
The sale is part of Asda's efforts to slough off surplus services to address the dropping sales at its core grocery business, affected by pressures of heightening competition from Aldi, Lidl and Tesco.
Asda's photo processing business, which had already been lined up for disposal, suffered £3.4 million in losses on revenue of £19.3 million last year. Its in-store pizza-making may also be sold off.
An international business, Photo-Me has a presence in 17 countries and has 6,600 photobooths and digital printing kiosks in the UK. Its underlying profits increased by 15 per cent to £40.1 million in 2015, boosted by demand for photos on identity cards in Japan.
It will look to drive sales for its newly acquired business by bringing in improved equipment, new products, and re-styling layouts.
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