Off-licence specialist Thresher Group is set to ditch its 3-for-2 promos as part of a wide-reaching review of its business.
Thresher Group trading director Lloyd Stephens said a key aspect of the review would be a move away from the group's historic dependence on the
3-for-2 deal as it was no longer serving its purpose.
"When we introduced
3-for-2 in 2005 it did what we wanted it to do and grew the market," said Stephens. "The problem is that promotions are supposed to bring excitement into the market but this concept became static and sales began to decline."
Thresher said it would replace 3-for-2 on all wine and champagne and focus on more active pricing and single-bottle promotions. This would lead to lower single-bottle prices, it said.
The group is also planning to get rid of its Victoria Wine fascia and reposition Wine Rack as a more upmarket and contemporary proposition in a shake-up of its store portfolio.
It would focus on three concepts, each with a clear point of difference, said chief executive Yvonne Rankin. It had identified 370 stores that would be converted to the new-look Wine Rack, while Threshers stores would be aimed at mid-market consumers and its The Local stores would feature a drinks-led convenience offer. Rankin said this would primarily focus on top-up convenience. The group's Scottish business, mainly Haddows stores, will remain under review for the time being, said Rankin.
Thresher is planning to sell 200 stores and open 100 new ones, leaving it with 1,500 sites, of which 130 are franchises. The franchise scheme was put on hold last year and will remain so for at least a year. It is also planning to launch an online offer for Wine Rack and Threshers.
Rankin said there were lessons to be learnt from successful operators such as Majestic Wine. "Majestic is clear about what its brand is and has a good brand strategy," she said.
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