Unwins is embroiled in a supply row with one its biggest wholesale suppliers. The chain, acquired by DM Private Equity last month, is at loggerheads with Palmer & Harvey McLane.
Poor relations between the two parties are hitting tobacco and confectionery stocks so badly that store managers are complaining of losing customers to other stores as they are left with little or no product in the affected categories.
One store manager, who was this week completely out of cigarettes and had almost totally run out of confectionery and soft drinks, told The Grocer: “We’re being told that there is some dispute over prices with our supplier, P&H.
“These are the sort of products people pop in for. They then often pick up something else. Now customers are walking in, realising we have no fags and walking straight out again.”
Another Unwins manager was told this week that the off-licence chain was trying hard to resolve the problem with P&H. However, despite deliveries improving, they were still half their normal volumes.
No-one from P&H was available for comment, while DM Private Equity declined to comment.
It has previously announced plans to reverse the fortunes of
Unwins, which has been trading unprofitably. Unwins’ sales and marketing director, Ian McLernon, said there would be an aggressive marketing campaign under the banner ‘Under new ownership’. He said the campaign involved aggressive promotional activity including cut-price deals, offers in newspapers such as The Daily Mail and bogofs. Stores are also undergoing refits. Unwins announced earlier this week that the business was being restructured into the upmarket Phillips Newman; Unwins; PN Wholesale; and UDS, (logistics). They will operate as standalone enterprises, with their own chief executives.
DM Private Equity has not ruled out breaking Unwins up and selling off the divisions once they are turning a profit.
Unwins said the restructuring involved 53 HQ job losses but 20 new positions. It will entail closing 41 unprofitable shops, cutting the estate to 344 stores.
>>p19 Movers & Shakers
Rod Addy
Poor relations between the two parties are hitting tobacco and confectionery stocks so badly that store managers are complaining of losing customers to other stores as they are left with little or no product in the affected categories.
One store manager, who was this week completely out of cigarettes and had almost totally run out of confectionery and soft drinks, told The Grocer: “We’re being told that there is some dispute over prices with our supplier, P&H.
“These are the sort of products people pop in for. They then often pick up something else. Now customers are walking in, realising we have no fags and walking straight out again.”
Another Unwins manager was told this week that the off-licence chain was trying hard to resolve the problem with P&H. However, despite deliveries improving, they were still half their normal volumes.
No-one from P&H was available for comment, while DM Private Equity declined to comment.
It has previously announced plans to reverse the fortunes of
Unwins, which has been trading unprofitably. Unwins’ sales and marketing director, Ian McLernon, said there would be an aggressive marketing campaign under the banner ‘Under new ownership’. He said the campaign involved aggressive promotional activity including cut-price deals, offers in newspapers such as The Daily Mail and bogofs. Stores are also undergoing refits. Unwins announced earlier this week that the business was being restructured into the upmarket Phillips Newman; Unwins; PN Wholesale; and UDS, (logistics). They will operate as standalone enterprises, with their own chief executives.
DM Private Equity has not ruled out breaking Unwins up and selling off the divisions once they are turning a profit.
Unwins said the restructuring involved 53 HQ job losses but 20 new positions. It will entail closing 41 unprofitable shops, cutting the estate to 344 stores.
>>p19 Movers & Shakers
Rod Addy
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