Struggling British supermarket Asda has struck a deal with sports brand Umbro to sell accessories, clothing and footwear, as it seeks new revenue streams to revive its fortunes.

Though its profitability has held up Asda, the UK arm of U.S. retailer Wal-Mart, has been the sales laggard of the British supermarket sector for more than a year and in February reported its worst ever quarterly sales fall.

On Thursday it said its George at Asda business had agreed an initial three-year deal that will see exclusively designed Umbro product sold within the George department of Asda stores and online, while 20 of Asda's biggest stores will house dedicated Umbro areas.

Ads

Noting that over three-quarters of shoppers purchase branded sportswear for their children, Asda said it hoped to capitalise on an anticipated rise in the sports retailing market this year due to the European Football Championship and the Rio Olympics.

"The deal marks Asda's latest move to sharpen its offer in response to customer needs," the firm said.

As online deliveries surge and shop sales fall, British retailers are increasingly looking to refit their once bustling superstores with new attractions.

Asda already has a deal with Decathlon, the sports equipment and sportswear retailer, while market leader Tesco has struck third-party deals with Philip Green's Arcadia fashion group and Sports Direct.