Londis stores are on course to post a dramatic uplift in fresh food sales, sales director Paul Courtney has revealed.
Fresh food would account for £50m of its retail sales this year, up from £35m in 2011, he predicted.
The rise follows Musgrave Retail Partners GB’s move in 2010 to introduce 700 more lines and ramp up the frequency of deliveries - a step change that has already boosted sales generated by the high-margin fresh category from from 5% to 11% at a typical Londis store.
The Londis fresh range has doubled to 1,400 lines over the past two years to include more meat, fish and bagged salads, which offer a profit margin of up to 35%. retailers can now receive deliveries until Friday night and throughout Saturday. Historically, they ran from Monday until early Friday afternoon.
Supply chain improvements at Musgrave GB also mean retailers can place smaller orders, which encourages trial and reduces wastage.
Speeding up the journey from manufacturer to depot to shop had improved the shelf life of some products by 80%, Courtney said.
Londis has also introduced more price-marked packs at 85p, £1 and £1.25. “Historically, PMPs were limited to only promotional lines,” said Courtney. “We now carry over 500 across our full ambient and fresh range.” They now made up 25% of Londis fruit and veg lines, he added.
Banbury Londis retailer Raj Bansi said the improvements meant a Co-op across the road from his store was now having to compete against his fresh range.
“The Londis team has given us the extra confidence to add new lines to our range,” he said.
Musgrave had drawn on its experience with fresh food at Budgens to improve the Londis fresh fresh supply chain, added Courtney.
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