Budgens trading director Cliff Goodman opened the annual supplier conference in Warwick with a challenge to the floor: "There are very few real economies beyond a full lorryload of goods. So why should Budgens pay 11.1% more?" The figure was taken from the Competition Commission and refers to the difference in cost prices charged to Tesco and Budgens by the 26 largest suppliers on the top five branded lines. Goodman accepted the Budgens account does not offer the same volumes as Tesco's, but said the chain was on a par with the multiples when it came to efficiency and discipline. In order to bridge the cost price gap, he went on: "You told us you wanted low maintenance account handling, supply chain efficiencies, disciplined product distribution, retail price discipline, disciplined promotional display, brand exposure and increasing volumes. Well, we're already doing it!" Development director Mike Taylor said Budgens was investing unprecedented amounts to ensure the estate was bang up to date: "We're ploughing back £2 of capex for every £1 in pre-tax profit; 90% of the estate will be refitted to new concepts by the end of 2002." About 15 new Budgens stores, 25 new Locals and six forecourts are planned for the coming year to add to the current 229-strong portfolio, with sites in locations as far afield as Manchester being considered. Budgens is trialling a new retail concept in Soham, Cambridgeshire, that will act as a testbed for new merchandising units, product ranges, lighting and signage. Fresh foods and convenience underpin the new concept, which has a 37% participation of fresh foods and a hot food concept called Budgens Takeaway. Ready meals have been merchandised in a new unit called Meals in Minutes. {{NEWS }}

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