SPAR retailers in the South West should benefit from lower wholesale prices from regional distributor Appleby Westward after the company carried out a “root and branch” efficiency review across its business.
MD Mike Boardman told the company’s annual tradeshow in Exeter earlier this week that price cuts would help retailers mitigate rising costs such as the Living Wage and would drive footfall and generate more profitable sales in stores.
“By reducing costs in our business we can give you rebates on milk and key beer, wines and spirits lines so that you can go toe-to-toe with all your major competitors,” he said, adding that the overall reduction in the cost of goods to retailers was over £650,000.
He outlined price reductions of over 20% on a number of key beer, wines and spirits lines, and a new pricing structure on milk which would give retailers the confidence to sell two-litre milk on 2 for £2 deals. “These will be real footfall drivers and will help drive fresh food sales in your stores,” he said.
The move follows an examination by Appleby Westward of its route to market for frozen and milk products, as well as a review of delivery timings for ambient goods. Frozen foods will now be distributed by Hunt’s Frozen Foods and milk will now be delivered on a three drops per week basis along with chilled products.
He said that while Appleby Westward would not be imposing lower retail prices on retailers, it was strongly recommending that the wholesale price reductions were used in-store to reduce prices to stimulate volume and footfall.
“Make the most of these opportunities in SPAR, with our new formats, selling plan, seasonal products and award-winning own label,” he said. “We should be so proud of our own label and it really is a no brainer to push more and more of these products into your shops.”
SPAR UK MD Debbie Robinson said customers expect own brand products in store and actively look for them.
“We are proud of SPAR brand and have won more awards than anyone else in the sector,” she said, adding that the Tonight’s Tea and Feed-Me-Now categories were crucial for the future success of SPAR stores.
Appleby Westward sales director Nick Kenworthy said the company had refreshed and refitted 47% of its stores in the south west in the last two years and was firmly on track to complete the programme by 2019 as part of a strategy to help retailers grow their businesses.
Pictured above, from left: Nick Kenworthy, Debbie Robinson and Mike Boardman.