Asda Living could potentially expand from its existing 11 outlets to a national chain of 300 stores, the company says.
It plans to have 20 of the outlets open by next June.
The next one will open in Tottenham, north London, in October.
The format is sited on edge-of-town retail parks and sell George fashions on the top floor.
Asda said it had not made a final decision on the future of its ten stand-alone George high-street shops.
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