Walmart Asda sells-off its photo business in the U.K. 

Asda, Walmart’s grocery chain in the United Kingdom, continues to tweak its laggard business operations amid a recent 7.75% drop in quarterly same-store sales.

Asda has agreed to sell its photo division for approximately $7.04 million to Photo-Me International, according to the retailer. Asda operates 191 photo centers and 172 self-service kiosks located in its 621 stores in the U.K.

Asda’s photo division lost about $4.8 million in the recent calendar year with sales of $26.11 million. The retailer expects the sale will close by the end of October. Terms of the deal require Photo-Me pay $4.42 million for the photo division and buy the consignment stock for an additional $2.62 million.

Photo-Me is also going to operate the Asda-branded online photo processing service for at least two and half years, according to the release. Asda will also earn periodic commissions from Photo-Me as well as reimbursements for utilities used in the photo operations within the retailer’s stores.

This marks the first major change under the leadership of CEO Sean Clark who took the helm at Asda in July. Clarke was handpicked by Walmart International CEO David Cheesewright to try and turn the lackluster grocery business around in a competitive environment with expansions of discounters Lidl and Aldi who appear to be taking share away from Walmart’s Asda.