Sainsbury’s has been warned it faces “reputational risk” by partnering with WH Smith to stock food to go lines in its travel locations.
The supermarket is conducting a trial to supply items to nine WH Smith stores in travel branches in railway stations, airports and hospitals from next week as part of its strategy to work with “new partners to grow our business and respond to rapidly changing shopping habits”.
“WH Smith is certainly not famed for its attention to detail and good employee and stock replenishment levels in its stores. There’s plenty of examples of some of its poor practise on social media,” said Bryan Roberts, global insights director at TCC Global.
Independent retail analyst Nick Bubb added the move could negatively impact consumers’ view of Sainsbury’s through association with WH Smith’s “rip-off prices perception”.
“I would have thought WH Smith would not want a potential competitor through the door, particularly given how lucrative its airport monopoly is,” Bubb added. However, retail consultant John Butler believes the tie-up will be positive for the supermarket. “What a great way to get a cheap route to market for them with no capital investment,” he said. “The stores are in high-traffic and convenient areas, which do well in terms of footfall.”
At the same time WH Smith could receive a welcome boost in terms of customer perception and food to go market share through the deal, added Butler. “WH Smith’s food has no heritage or reputation at all. Consumers could be put off buying a WH Smith branded sandwich, but Sainsbury’s has good credibility for its fresh food and convenience lines.”
The trial is being carried out at WH Smith stores at London Luton Airport; East Midlands Airport; Wishaw General Hospital; Lister Hospital, Stevenage; Monklands District Hospital, North Lanarkshire; Court Road, Chelmsford; Kings Cross Railway station; Bristol Temple Meads station; and Cardiff Central Railway station, and may be expanded across further WH Smith stores if successful.
This is also not the first time Sainsbury’s and WH Smith have worked together. The stationery retailer already sporadically hands out money-off vouchers for online Sainsbury’s shops, including £18 off customers’ first online shop, excluding delivery charges.
Sainsbury’s director for business development Michael Luck said the initiative comes as part of the supermarket’s strategy to work with “new partners to grow our business and respond to rapidly changing shopping habits”.
This has also seen several in-store partnerships under CEO Mike Coupe, including a recently expanded partnership with Patisserie Valerie, Ben & Jerry’s and Carte D’Or ice cream parlours, and locksmith and watch and shoe repair services through Timpson.
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