The Grocer’s newly-crowned Independent Retail Chain of the Year North East Convenience Stores was celebrating a double victory this week after clawing back sales from Tesco after an Express opened yards from one of its stores.
Sales at its Nisa Local store in Whickham, Newcastle, plummeted 30% when a Tesco Express store opened in the same parade 12 weeks ago.
But this week, NECS said that sales loss had now recovered to a deficit of just 5% after the chain decided to turn its store into a “community store with a farmers’ market touch to it”.
As well as pushing its established ‘Ask Paul’ customer feedback scheme, it also launched a loyalty card to give customers discounts and created what it claims is the largest range of real ales in the North East.
It also gave staff ‘proud to be local’ T-shirts and expanded its locally-sourced product section.
“When we heard Tesco was opening less than 20 yards away we decided to be proactive,” said MD Naveen Vadhera. “I’m a firm believer that if you do what the multiples don’t do well, you will always survive. We are just 5% down and I’m confident we will pull this back over the next six months.”
He added: “There’s no such thing as ‘beating the mults’ as I don’t believe anyone ‘beats’ anyone, but you can compete and stand your ground with any other retailer if you are prepared to invest and move forward rather than fall back and allow them an easy ride.”
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