Somerfield’s business strategy will move it firmly into convenience and small store formats when Somerfield stores are downsized and Kwik Save re-branded in the south-east to strengthen the portfolio.
Speaking at the company’s AGM in Bristol on Wednesday, chief executive Steve Back told shareholders: “We want Somerfield to be the leading small store format - the leading convenience retailer for local, fresh and chilled in the heart of the neighbourhood. Kwik Save is the value alternative.”
The strategy for the discount stores began with the exit from Scotland and now south-east sites are to be converted to Somerfield - 22 have so far been rebranded.
But Kwik Save will remain in what Back described as the “three clusters of strength”, Wales, the Midlands and the north-west and north-east, with stores downsized to between 6,000 and 12,000 sq ft. Thirty five Kwik Save and 10 Somerfield sites were closed this year and a further three were downsized.
A four-category guide has been introduced for Somerfield stores: small Essentials, mid-size Market Fresh, Progressive and Value formats.
The refit programme has also proved a success with the 127 revamped Somerfield sites providing sales of £14 per sq ft per week. This compares with the £10 per sq ft yield from stores that have not been revamped and with the 72 refurbished Kwik Save stores that yield £10 per sq ft.Their unrefurbished counterparts yield £7, according to Back.
This week Somerfield also announced first quarter like-for-like sales up by 1.1% despite weak food sales in July and August, with Somerfield up by 1.3% and Kwik Save up 1%.
Amy Balchin
Speaking at the company’s AGM in Bristol on Wednesday, chief executive Steve Back told shareholders: “We want Somerfield to be the leading small store format - the leading convenience retailer for local, fresh and chilled in the heart of the neighbourhood. Kwik Save is the value alternative.”
The strategy for the discount stores began with the exit from Scotland and now south-east sites are to be converted to Somerfield - 22 have so far been rebranded.
But Kwik Save will remain in what Back described as the “three clusters of strength”, Wales, the Midlands and the north-west and north-east, with stores downsized to between 6,000 and 12,000 sq ft. Thirty five Kwik Save and 10 Somerfield sites were closed this year and a further three were downsized.
A four-category guide has been introduced for Somerfield stores: small Essentials, mid-size Market Fresh, Progressive and Value formats.
The refit programme has also proved a success with the 127 revamped Somerfield sites providing sales of £14 per sq ft per week. This compares with the £10 per sq ft yield from stores that have not been revamped and with the 72 refurbished Kwik Save stores that yield £10 per sq ft.Their unrefurbished counterparts yield £7, according to Back.
This week Somerfield also announced first quarter like-for-like sales up by 1.1% despite weak food sales in July and August, with Somerfield up by 1.3% and Kwik Save up 1%.
Amy Balchin
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