>>sainsbury must be clear about its convenience strategy
Another day, another retailer. As mentioned in this column just two weeks ago, The Grocer’s Top 50 ranking of independent retailers is proving a useful shopping list for the big supermarket operators storming into the convenience sector.
This time the spotlight is on Sainsbury and for once it is good news for the Holborn-based giant. Its purchase of the highly regarded Bells business seems to be a sound decision. Sure, in terms of short-term financial impact, it is small fry, adding just 0.3% to Sainsbury’s turnover. And there are elements of the deal that, on the face of it, are questionable. Bells is to remain a standalone business and will keep its head office, depot and fascia.
But this deal is not about gaining synergies. Sainsbury wants to learn more about running neighbourhood stores, in particular how to develop an efficient supply chain in convenience, as Sara Weller, deputy MD of Sainsbury’s Supermarkets, exclusively tells The Grocer this week (see page 35). And in Bells it could not have a better teacher. Indeed, the deal has even been cautiously welcomed by those scary people in the City. Now that is a novelty for Sainsbury.
But as the company strives to play convenience catch up with arch rival Tesco, it must not get carried away. As last week’s Top 50 ranking and this week’s Ones to Watch features show, there are some fantastic independent retailers out there and they would bring great business acumen were they to do a deal with Sainsbury.
With the multiple reportedly still in talks with TM Retail, it must be very clear on its strategy. TM brings about 450 attractive c-stores with it, but does Sainsbury want to be saddled with the other 750-odd CTNs? It only needs to look at the difficulty Tesco has had offloading the T& S CTNs to know this is a risky move and one that would need to be well thought through if it were to deliver shareholder value. And as Sainsbury has found to its cost, upsetting shareholders is not a good idea.
Meanwhile, this week’s deal gives Bells MD Steven Bell a tremendous opportunity to play an influential role in the future of one of our largest retailers. Expect to see him go far.
As one independent operator reacting to the news pointed out, there is a senior vacancy in Holborn at the moment. Perhaps Steven should put his name forward.
Bells stores, and after...
Another day, another retailer. As mentioned in this column just two weeks ago, The Grocer’s Top 50 ranking of independent retailers is proving a useful shopping list for the big supermarket operators storming into the convenience sector.
This time the spotlight is on Sainsbury and for once it is good news for the Holborn-based giant. Its purchase of the highly regarded Bells business seems to be a sound decision. Sure, in terms of short-term financial impact, it is small fry, adding just 0.3% to Sainsbury’s turnover. And there are elements of the deal that, on the face of it, are questionable. Bells is to remain a standalone business and will keep its head office, depot and fascia.
But this deal is not about gaining synergies. Sainsbury wants to learn more about running neighbourhood stores, in particular how to develop an efficient supply chain in convenience, as Sara Weller, deputy MD of Sainsbury’s Supermarkets, exclusively tells The Grocer this week (see page 35). And in Bells it could not have a better teacher. Indeed, the deal has even been cautiously welcomed by those scary people in the City. Now that is a novelty for Sainsbury.
But as the company strives to play convenience catch up with arch rival Tesco, it must not get carried away. As last week’s Top 50 ranking and this week’s Ones to Watch features show, there are some fantastic independent retailers out there and they would bring great business acumen were they to do a deal with Sainsbury.
With the multiple reportedly still in talks with TM Retail, it must be very clear on its strategy. TM brings about 450 attractive c-stores with it, but does Sainsbury want to be saddled with the other 750-odd CTNs? It only needs to look at the difficulty Tesco has had offloading the T& S CTNs to know this is a risky move and one that would need to be well thought through if it were to deliver shareholder value. And as Sainsbury has found to its cost, upsetting shareholders is not a good idea.
Meanwhile, this week’s deal gives Bells MD Steven Bell a tremendous opportunity to play an influential role in the future of one of our largest retailers. Expect to see him go far.
As one independent operator reacting to the news pointed out, there is a senior vacancy in Holborn at the moment. Perhaps Steven should put his name forward.
Bells stores, and after...
No comments yet