Jempson’s has slashed prices by up to 22% after switching to the Morrisons supply deal last year, The Grocer can reveal.
The eight-store independent retailer completed the conversion to the dual-branded Together with Morrisons fascia in November, after previously being supplied by Nisa.
Owner Stephen Jempson said it followed a “strategic decision to offer better value going forward” across its supermarket and convenience estate.
He added that the two larger stores, located in Peasmarsh and Rye, were particularly benefiting from the new deal, with volumes up 17.5% as shoppers enjoyed a wider range. Footfall has also grown in these stores, up 8.1%, while basket value has risen 14%, according to Jempson’s.
This was a result of customers responding to its more competitive pricing proposition, he said, with retail prices dropping between 16% and 22% across the grocery estate, supported with a “greater own-label offer”.
“It is what customers are demanding and reflects the cost of living issues we are all grappling with,” Jempson said. “The messaging and new price positioning became more and more well known and sterling growth followed.”
It comes as Jempson’s published its latest accounts at Companies House for the year ending 30 June 2023, which showed sales across its supermarket and convenience stores grew 7.4% to £37.6m.
While the results were “encouraging”, the accounts said the new supply arrangement with Morrisons would “future-proof” the business against pressures from the cost of living crisis.
This would allow it to “align our large stores alongside the key multiple competition”, it added.
“The cost of living crisis has affected the population and as such the company has signed a supply agreement with Morrisons for bulk-branded, ambient, chilled and frozen goods. The own-label and branded offer will broaden to all demographic types.”
The accounts also revealed Jempson’s is planning to install solar panels at its two supermarket stores from October 2024, with completion set for June next year, in a £1m project. The solar panels are expected to generate energy savings of up to 30% on these sites.
The independent retailer has also rolled out electronic shelf labels which has helped to reduce labour costs and improve pricing accuracy.
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