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Getting there in small steps

Fresh and chilled foods are the categories where there is a huge divide between independent and multiple shops in the convenience market. Fresh and chilled is a big profit opportunity but doing it well requires a different skill set to selling soft drinks, snacks and confectionery.

Speaking to trade magazine Retail Newsagent this week, Booker chief executive Charles Wilson advises: "Get the milk, bread and cheese right because most of the volume and value is in that area."

There are two parts to his advice which are helpful. Firstly, the need to focus and to set standards and achieve those standards. Second, that to transform your local shop can involve incremental steps. Break down your move into new areas into small, bite-sized chunks and work your way up to a full fresh and chilled offer by increments.

Getting shoppers used to buying bread and milk in your shop will get them thinking about picking up a basket, which is when you break through to the next level in convenience.
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Comments

  1. The Village Postmaster3 September 2009 at 13:20

    15 years ago now retired Tony Morris of Brighton told me that in milk I needed to get to 1,000 pints a week to gain real advantage and best price. My reaction was how on earth do I get to there as we were selling less than 100 pints per week.

    The answer focus, price, investment, marketing and just sticking at the task. We now sell 2000 pints a week and even with a supermarket price level we have 30p per litre gross profit. Farmers are getting 22p total.

    Sounds like my deal is too good.

    Steve

    ReplyDelete
  2. James Bielby4 September 2009 at 10:55

    I had an interesting conversation with a milk buyer at a wholesaler group recently. He was talking to one of the big milk suppliers and asked them who sets the price of milk. Answer? The Tesco milk buyer. Tesco has 35% of the milk market in the UK.

    ReplyDelete

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