The entry of the multiples into the convenience-store sector has raised the standards in fresh produce for the entire market, Jamie Davison, director of sales at symbol group Costcutter, told Re:fresh delegates.
“The share of spend will change in the future as forecourt and independent operators are in decline, the Co-op expands aggressively and symbol groups benefit through migration from the independent sector,” said Davison. “But the biggest threat to traditional convenience-store operators without a shadow of a doubt is coming from multiples who want a bigger slice of the c-store sector. Over the last two years, eight per cent of the entire sector has been acquired - that’s 4,379 stores of a total of 53,600.”
One of the biggest mistakes that c-stores have made in the past is overstocking. “It is about getting the right products,” said Davison, and this is something Costcutter is addressing with its Premier service and re-launch of Heritage. “With Premier we are making smaller deliveries six days a week so that fixtures can stay fuller and fresher,” said Davison. “It is about increasing consumer trust by offering consistently good products at all times.”
Supermarkets are learning valuable lessons about operating in the c-store environment too. “You only ever get one chance at convenience,” said Peter Durose, category director for produce at Tesco. “Availability is therefore even more important.”
High customer expectations are a big challenge for Tesco in the c-store sector and pack sizes need to be targeted at customer needs. “For example, 250g mushrooms are the highest selling line in produce and UK strawberries are a big impulse purchase in season,” said Durose.
“It shows we have to change our thinking about the range as it is not about taking the top-sellers at the supermarket and putting them into the c-store.”
No comments yet