LONDON (Brand Republic) - Budgens is ploughing forward with its convenience store programme by setting itself up as a wholesale supplier to independent stores.
Budgens Local branding will appear on 50 independent retailers in the next two years, with Budgens supplying full marketing and systems support to each store.
Each retailer will pay for the rebranding of their stores. They will have to stock products specified by Budgens and adhere to its in-store marketing and advertising strategies. Benefits will include the Budgens brand and competitive pricing due to increased buying power.
Budgens runs 42 forecourt stores plus the B2 convenience chain, which has stores in Greater London. The company’s focus on fresh food would be the main attraction to independent retailers unwilling to relinquish control of their stores.
According to Martin Hyson, chief executive of Budgens, “We will enable independents to really boost their sales, and offer consumers more than that offered by Mace or Spar. Our fresh food makes up 37% of total sales, while rival groups take only 13% of their sales from fresh food,” he said.
He denied the move to target the independent sector was an indication of a lack of suitable sites available to the company for its B2 convenience chain.
Rival Sainsbury is facing similar problems in struggling to find similar sites for its Local format.