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They believe that by converting 400 stores from a Kwik Save to a Somerfield format the leading market position will be strengthened using the following strategy:
? the Somerfield business will focus on local and convenience shopping in small and medium sized stores
? all of the larger existing Somerfield stores that will not fit into the new strategy shall be sold
? Kwik Save stores that cannot be converted to the Somerfield fascia shall be sold
Somerfield have recognised that large scale out-of-town food retailing will experience an increase in competition growth and will heavily affect those locations that rely heavily on big trolley shopping...
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The market is separated between price-driven out-of-town superstores and convenient local trading. Somerfield has concluded that its strength lies in small and medium store retailing, and serving the customer who wants to shop locally and on the high street. Somerfield intends to maximise their profits by expanding in this area and their strategy to achieve this involves:
? a greater emphasis on fresh foods
? continued commitment to serving the big trolley customers through the home shopping business, 24-7
? an investment in the employees to improve the quality of customer service in the stores
? an accelerated conversion of about 400 stores currently operating under Kwik Save
? an involvement with local communities and a range of foods that are genuinely local
Somerfield are selling between 100 and 140 large stores that do not fit into the new strategy, generally over 10,000 square feet...
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