Dee Patel is confident that his Ben's Supermarkets c-stores can fend off the rivalry of the big four simply by sticking to traditional community service. Julia Taylor reports
It would be easy to sell up to the likes of Tesco, but independent businesses can survive and be successful. At least that's the view of Dee Patel, owner of Ben's Supermarkets, a five-strong chain of mini-supermarkets operating under the Budgens fascia.
And Patel would know more than most about the pressure exerted on indies from the multiples. Each of his stores has at least one of the big four within its catchment, but Patel doesn't fear the competition. On the contrary, he relishes pitting his wits against the big hitters.
"We are price-matching on the top 300 core lines such as bread, milk and coffee," he boasts. "Musgrave GB does the price-matching groundwork and we fill otherwise unused shelf space to sell the products."
Although the margin loss on the core lines is a minuscule 0.1%, Patel concedes he can't match the supermarkets on everything. Where he does feel he has an edge, however, is through a focus on customer service. "We've gone back to doing things the old way. That's what has always worked for us. We are on first-name terms with our customers and do a lot of community and charity work in the area. Our efforts to raise money for Children in Need is one such example."
Patel's 350 staff compete every month to compile the longest list of customer names, with the winner claiming a £70 prize.
The five stores are located in Essex, Suffolk and Cambridgeshire, in a mix of town centre, suburban and out-of-town locations. They range from 1,200 to 15,000 sq ft and last year generated a combined turnover of £20m.
Patel doesn't shy away from the fact that this is a tough time to be an independent retailer. In August he was forced to close a store in Frinton-on-Sea, Suffolk, after residents in the affluent area snubbed the value lines. Shoppers, Patel says, are visiting more often but buying less. In some stores the average basket spend has fallen between 80p and £1 in the past few months.
Patel is making contingencies for slower-than-usual Christmas trading. He stocks non-food Christmas items including lights and decorations, but is banking on supplier goodwill to insulate him against possible losses. "We are being a little bit cautious on some seasonal goods - where possible we'll get sale-or-return."
Tighter bank lending terms have limited expansion plans. However, the store in Woodbridge, Suffolk, has undergone a £1.8m refurbishment and there are plans to open an in-store satellite police station. Patel is also focusing on environmental targets. "This coming year we're going to concentrate on reducing our carbon footprint," he says. "Installing recycling bins is top of the list, as well as a drive to encourage customers to reuse their carrier bags."
Current progress may be limited by the recession but, having crept into The Grocer's Top 50 Independents for the first time this year, Patel remains ambitious. "I'm hoping we'll be in the top 10 within 10 years."
It would be easy to sell up to the likes of Tesco, but independent businesses can survive and be successful. At least that's the view of Dee Patel, owner of Ben's Supermarkets, a five-strong chain of mini-supermarkets operating under the Budgens fascia.
And Patel would know more than most about the pressure exerted on indies from the multiples. Each of his stores has at least one of the big four within its catchment, but Patel doesn't fear the competition. On the contrary, he relishes pitting his wits against the big hitters.
"We are price-matching on the top 300 core lines such as bread, milk and coffee," he boasts. "Musgrave GB does the price-matching groundwork and we fill otherwise unused shelf space to sell the products."
Although the margin loss on the core lines is a minuscule 0.1%, Patel concedes he can't match the supermarkets on everything. Where he does feel he has an edge, however, is through a focus on customer service. "We've gone back to doing things the old way. That's what has always worked for us. We are on first-name terms with our customers and do a lot of community and charity work in the area. Our efforts to raise money for Children in Need is one such example."
Patel's 350 staff compete every month to compile the longest list of customer names, with the winner claiming a £70 prize.
The five stores are located in Essex, Suffolk and Cambridgeshire, in a mix of town centre, suburban and out-of-town locations. They range from 1,200 to 15,000 sq ft and last year generated a combined turnover of £20m.
Patel doesn't shy away from the fact that this is a tough time to be an independent retailer. In August he was forced to close a store in Frinton-on-Sea, Suffolk, after residents in the affluent area snubbed the value lines. Shoppers, Patel says, are visiting more often but buying less. In some stores the average basket spend has fallen between 80p and £1 in the past few months.
Patel is making contingencies for slower-than-usual Christmas trading. He stocks non-food Christmas items including lights and decorations, but is banking on supplier goodwill to insulate him against possible losses. "We are being a little bit cautious on some seasonal goods - where possible we'll get sale-or-return."
Tighter bank lending terms have limited expansion plans. However, the store in Woodbridge, Suffolk, has undergone a £1.8m refurbishment and there are plans to open an in-store satellite police station. Patel is also focusing on environmental targets. "This coming year we're going to concentrate on reducing our carbon footprint," he says. "Installing recycling bins is top of the list, as well as a drive to encourage customers to reuse their carrier bags."
Current progress may be limited by the recession but, having crept into The Grocer's Top 50 Independents for the first time this year, Patel remains ambitious. "I'm hoping we'll be in the top 10 within 10 years."
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