Somerfield is in talks with a number of independents about the roll-out of its new franchise package after a successful joint venture with TM Retail.
Group finance director Steve Back said: “We’re not looking for franchisees with 300 stores but small independent operators with quality sites.”
However, he added, no one had formally signed to the franchise package.
Under the agreement with TM Retail, Somerfield supplies and
delivers branded and own label fresh, ambient and frozen food, as well as beers, wines and spirits to six dual-fascia Somerfield Martin’s stores.
According to Somerfield, sales at these stores have “roughly doubled”, while TM Retail trading director Paul Baxter told The Grocer back in November that the dual format could be rolled out to 200 of TM’s stores (The Grocer, November 15, p8).
Back said new franchise stores would not necessarily be dual-branded like the Somerfield Martin’s stores. “We’re flexible on the fascia, but we firmly believe there is more added value with Somerfield above the door.”
He added that there was still work to be done on improving IT and EPoS systems before trials with unnamed independent retailers began in the spring with a full roll-out programme expected in place by the summer. However, Back would not comment on speculation linking Somerfield to a bid for Londis.
Somerfield recruited the MD of Budgens Franchise, Norman Kears, in October 2003 to work in its franchise department and it believes it has a strong proposition due to its fresh food offer, national distribution and competitive pricing.
Meanwhile, Somerfield’s recovery continued on track on announcement of its interims.
Like-for-like sales at Somerfield were up 2.2% for the 28 weeks to November 8, 2003, while Kwik Save’s like-for-likes were down 1.0%, with group pre-tax profit above most City forecasts at £15.5m, compared with £6.4m last year. Like-for-like sales for the 10 weeks to January 17 were up 2.3% at Somerfield and 0.4% at Kwik Save.
Sean McAllister
Group finance director Steve Back said: “We’re not looking for franchisees with 300 stores but small independent operators with quality sites.”
However, he added, no one had formally signed to the franchise package.
Under the agreement with TM Retail, Somerfield supplies and
delivers branded and own label fresh, ambient and frozen food, as well as beers, wines and spirits to six dual-fascia Somerfield Martin’s stores.
According to Somerfield, sales at these stores have “roughly doubled”, while TM Retail trading director Paul Baxter told The Grocer back in November that the dual format could be rolled out to 200 of TM’s stores (The Grocer, November 15, p8).
Back said new franchise stores would not necessarily be dual-branded like the Somerfield Martin’s stores. “We’re flexible on the fascia, but we firmly believe there is more added value with Somerfield above the door.”
He added that there was still work to be done on improving IT and EPoS systems before trials with unnamed independent retailers began in the spring with a full roll-out programme expected in place by the summer. However, Back would not comment on speculation linking Somerfield to a bid for Londis.
Somerfield recruited the MD of Budgens Franchise, Norman Kears, in October 2003 to work in its franchise department and it believes it has a strong proposition due to its fresh food offer, national distribution and competitive pricing.
Meanwhile, Somerfield’s recovery continued on track on announcement of its interims.
Like-for-like sales at Somerfield were up 2.2% for the 28 weeks to November 8, 2003, while Kwik Save’s like-for-likes were down 1.0%, with group pre-tax profit above most City forecasts at £15.5m, compared with £6.4m last year. Like-for-like sales for the 10 weeks to January 17 were up 2.3% at Somerfield and 0.4% at Kwik Save.
Sean McAllister
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