The West Midlands Co-op has opened in Sedgley after spending £600,000 on refurbishing a former Safeway store bought from Morrisons for £7m.
This new store, in the centre of Sedgley, faces fierce competition and it needs to attract previous Safeway customers who might have been tempted to shop at other large grocery stores nearby.
Loyal Safeway customers still have two Safeway-branded stores fewer than three miles away. There is also an existing Morrisons nearby, so given this choice they will not necessarily shop in the West Midlands co-op store.
This is another example of Morrisons protecting its other stores by selling to a weaker player.
CACI’s analysis suggests the store’s catchment should be smaller than that of the previous Safeway and may act to serve a smaller population. This is because Safeway has a greater pull and would have attracted shoppers from further distances.
All grocers will probably gain some positive impact from the new opening. CACI expects the two nearby Safeway stores to pick up a high proportion of any grocery spend that is no longer going to the Sedgley store.
Asda will also benefit, followed by Tesco and Morrisons. Kwik Save should also benefit from some additional customers. The West Midlands Co-op should be able to take a market share of about 20%. Tesco and Asda will battle it out for second place and both are likely to take about 17%. Morrisons will fight strongly for market share and should fall in fourth position. However, with the share from the two other local Safeway stores, Morrisons could take 19%, edging into second place.
Examining the Acorn profile, it appears the Sedgley profile has a closer fit to Morrisons than it does to Tesco or Asda.
The catchment also correlates highly with co-op customers and this could help the co-operative fight for valuable market share. The catchment is dominated by struggling families, typical Morrisons and Asda customers, but also a group that could be attracted to the new co-op store. The many secure and flourishing families in the area are more likely to be attracted to Tesco and Safeway. A key group that could be attracted to this new store, however, is the affluent greys, over-represented in the Sedgley catchment.
The West Midlands Co-op will have to do its best to prevent former Safeway customers travelling to other stores, but it could benefit when the local Safeway stores are fully rebranded as Morrisons.
This new store, in the centre of Sedgley, faces fierce competition and it needs to attract previous Safeway customers who might have been tempted to shop at other large grocery stores nearby.
Loyal Safeway customers still have two Safeway-branded stores fewer than three miles away. There is also an existing Morrisons nearby, so given this choice they will not necessarily shop in the West Midlands co-op store.
This is another example of Morrisons protecting its other stores by selling to a weaker player.
CACI’s analysis suggests the store’s catchment should be smaller than that of the previous Safeway and may act to serve a smaller population. This is because Safeway has a greater pull and would have attracted shoppers from further distances.
All grocers will probably gain some positive impact from the new opening. CACI expects the two nearby Safeway stores to pick up a high proportion of any grocery spend that is no longer going to the Sedgley store.
Asda will also benefit, followed by Tesco and Morrisons. Kwik Save should also benefit from some additional customers. The West Midlands Co-op should be able to take a market share of about 20%. Tesco and Asda will battle it out for second place and both are likely to take about 17%. Morrisons will fight strongly for market share and should fall in fourth position. However, with the share from the two other local Safeway stores, Morrisons could take 19%, edging into second place.
Examining the Acorn profile, it appears the Sedgley profile has a closer fit to Morrisons than it does to Tesco or Asda.
The catchment also correlates highly with co-op customers and this could help the co-operative fight for valuable market share. The catchment is dominated by struggling families, typical Morrisons and Asda customers, but also a group that could be attracted to the new co-op store. The many secure and flourishing families in the area are more likely to be attracted to Tesco and Safeway. A key group that could be attracted to this new store, however, is the affluent greys, over-represented in the Sedgley catchment.
The West Midlands Co-op will have to do its best to prevent former Safeway customers travelling to other stores, but it could benefit when the local Safeway stores are fully rebranded as Morrisons.
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