Budgens has embarked on a radical brand rationalisation exercise to make its range more manageable.
The spring-cleaning exercise, announced at the chain’s supplier conference in October, was not purely about tackling logistical problems, but developing a range more appropriate to Budgens’ portfolio, said commercial director Mike Taylor. The plan is
to reduce the range from 7,200 to about 6,000 lines.
“So far, we have cut several hundred stock-keeping units,” he said. “The average Budgens store is about 4,800 sq ft and new stores are generally 2,000 to 4,000 sq ft. Only a handful of our stores are more than 9,000 sq ft. We don’t need the breadth of range we used to have. This is a category management initiative.”
Although Budgens’ Wellingborough distribution site struggled to cope with sharp rises in volume over the summer, land was available for further development.
Expansion was not dependent upon a deal with Londis or acquiring a new depot, he insisted. “There are lots of things we can do through supply chain management.”
For example, Budgens was in discussions with suppliers about reducing its stockholding of certain SKUs through ordering in smaller quantities, he added.
Budgens has recruited 27 stores to join its franchise scheme in 2004, taking numbers up to 66, said Taylor.
Separately, the chain has struck a multi-million pound deal with Hays Logistics to use returnable crates to transport chilled and fresh goods. As well as proving a greener option than cardboard, the trays could also save cash in the long term, according to senior trading controller Steve Carter.
Elaine Watson
The spring-cleaning exercise, announced at the chain’s supplier conference in October, was not purely about tackling logistical problems, but developing a range more appropriate to Budgens’ portfolio, said commercial director Mike Taylor. The plan is
to reduce the range from 7,200 to about 6,000 lines.
“So far, we have cut several hundred stock-keeping units,” he said. “The average Budgens store is about 4,800 sq ft and new stores are generally 2,000 to 4,000 sq ft. Only a handful of our stores are more than 9,000 sq ft. We don’t need the breadth of range we used to have. This is a category management initiative.”
Although Budgens’ Wellingborough distribution site struggled to cope with sharp rises in volume over the summer, land was available for further development.
Expansion was not dependent upon a deal with Londis or acquiring a new depot, he insisted. “There are lots of things we can do through supply chain management.”
For example, Budgens was in discussions with suppliers about reducing its stockholding of certain SKUs through ordering in smaller quantities, he added.
Budgens has recruited 27 stores to join its franchise scheme in 2004, taking numbers up to 66, said Taylor.
Separately, the chain has struck a multi-million pound deal with Hays Logistics to use returnable crates to transport chilled and fresh goods. As well as proving a greener option than cardboard, the trays could also save cash in the long term, according to senior trading controller Steve Carter.
Elaine Watson
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