Musgrave plans to offer Londis retailers improved terms early in the new year as it irons out discrepancies between the price files of both companies and drives efficiency at the combined group.
Speaking three months after Musgrave’s acquisition of Londis was rubberstamped, Musgrave UK executive chairman Eoin McGettigan said: “We are looking at differences between the two price files, but we can also bring efficiencies, tackle duplication and improve standards.”
Costs will be cut swiftly with the centralisation of head office functions at Budgens and Londis, which are being combined at Musgrave UK’s new HQ in Harefield at the end of November, said McGettigan.
“Functions that don’t directly interface with the consumer such as HR, IT and buying will
be managed centrally,” he added. There would also be a move to reduce duplication in the Londis’ range, which needed a spring clean, he said.
“Londis has the same number of SKUs in its warehouses for stores of 1,000 or 2,000 sq ft that we have in Ireland for stores of 20,000 sq ft. In this case, less is definitely more.” A trial to deliver chilled ranges from Budgens’ depot in Wellingborough to a selection of Londis retailers would start in November and build up to 40 stores in the new year, he added.
“All three Londis RDCs have chilled facilities. But they haven’t invested in chilled distribution vehicles to back it up.
“We’re trying to assess demand from Londis retailers through the Wellingborough trial before we decide whether to invest in the trucks and expand Londis’ chilled facilities.”
A key means of unlocking the potential of Londis was to improve communications between retailers and involve them more in decision-making through local cluster meetings that would feed into regional and national forums, he said. “This will give retailers far more say over the business than they had when they owned it.”
Elaine Watson
Speaking three months after Musgrave’s acquisition of Londis was rubberstamped, Musgrave UK executive chairman Eoin McGettigan said: “We are looking at differences between the two price files, but we can also bring efficiencies, tackle duplication and improve standards.”
Costs will be cut swiftly with the centralisation of head office functions at Budgens and Londis, which are being combined at Musgrave UK’s new HQ in Harefield at the end of November, said McGettigan.
“Functions that don’t directly interface with the consumer such as HR, IT and buying will
be managed centrally,” he added. There would also be a move to reduce duplication in the Londis’ range, which needed a spring clean, he said.
“Londis has the same number of SKUs in its warehouses for stores of 1,000 or 2,000 sq ft that we have in Ireland for stores of 20,000 sq ft. In this case, less is definitely more.” A trial to deliver chilled ranges from Budgens’ depot in Wellingborough to a selection of Londis retailers would start in November and build up to 40 stores in the new year, he added.
“All three Londis RDCs have chilled facilities. But they haven’t invested in chilled distribution vehicles to back it up.
“We’re trying to assess demand from Londis retailers through the Wellingborough trial before we decide whether to invest in the trucks and expand Londis’ chilled facilities.”
A key means of unlocking the potential of Londis was to improve communications between retailers and involve them more in decision-making through local cluster meetings that would feed into regional and national forums, he said. “This will give retailers far more say over the business than they had when they owned it.”
Elaine Watson
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