At the same time rival grocers, spurred by Wal-Mart's acquisition of Asda, had launched aggressive price-cutting campaigns, luring in Kwik Save's customers. Sales fell off a cliff. Somerfield's shares crashed and in a masterful understatement the then chief executive David Simons said: "The integration of Kwik Save hasn't gone as well as we would have hoped. The chain's market share shrivelled to just 0. British shoppers at Sainsbury's, Tesco, Safeway, and the other new giant supermarkets were confronted, by the late s, with a hitherto undreamed of choice.
Obviously unable to compete with the superstores on their own ground, Kwik Save quietly bucked the trend. Whereas before the company had chosen cheaper out-of-town sites for its stores, now it took every opportunity to move into the very areas being abandoned by other grocery retailers: town centers and residential areas. While the superstores were concentrating on creating, according to commentator Suzanne Bidlake, "atmosphere, leisure, excitement and ambiance," Kwik Save prosaically maintained that "shopping is a chore, and let's not pretend otherwise.
Continuing its policy of pumping profits back into providing lower prices for customers, Kwik Save estimated that average shoppers could save 15 percent of their total grocery bill over a year's time by shopping at Kwik Save rather than at one of the superstores.
Kwik Save's smaller and simpler designs afforded it several advantages over the superstores. Nonconformist though it was in many respects, Kwik Save nonetheless saw the need to modify some of its strategies to compete with the superstore.
The company's limited product range in comparison with the superstores' tremendous variety--viable in the s when the difference was one of versus 3,became worrying by the late s when the superstores had boosted their range to approximately 15, products.
Shoppers, of course, became increasingly accustomed to a wide choice, and many were reluctant to buy their cheap staples at Kwik Save only to have to go elsewhere for other products. Thus in Kwik Save decided to widen its product range from its standard Such a move meant that checkout operators could, of course, no longer memorize all product prices, so the company turned to technology for help. Almost from the outset of its history, Kwik Save had made extensive use of computer technology to ensure maximum efficiency, utilizing data-processing equipment as early as Therefore, the installation of laser scanners and computerized tills at the checkout was a natural progression.
The system was capable of automatically recording sales volumes; it sent this information from individual outlets to central computers and even contacted regional distribution centers and suppliers for automatic stock replenishment. Kwik Save was thus able to stock "just enough" and "just in time"--essential for keeping operating costs down.
By all of Kwik Save's outlets had been converted to the scanning system, and all stores stocked at least 1, different items, with many stocking up to 2,, thus going some way to counter the disparity between choice at Kwik Save and at the superstores. Image is a vital ingredient in any retail operation, and in this area, too, Kwik Save found itself at odds with the superstores.
Kwik Save's market had historically been among the lower socio-economic groups. In addition, the stores tended to attract many older customers, who were alarmed by, or disapproved of, the new superstores and preferred the traditional walk-in High Street shop. The superstores, too, were simply out of reach for those without cars. Kwik Save aimed to change this rather down-market image concurrently with its bid to move into the more affluent southeastern part of the country.
The first London store opened in , and in the company launched its first national advertising campaign designed to attract shoppers of all income levels. The own-label plan follows a five-month strategic review by Arthur Andersen. Another recommendation is believed to be that Kwik Save should develop convenience store formats. Mike Dempsey looks back at the life and work of Nicholas Thirkell and speaks to those who knew him.
Developed by product design studio Morrama, the Prenatal Care concept project features three devices to help parents bond with unborn children. The two cities will assume the mantle in , following in the footsteps of former title holders including Lille Metropole, Taipei, Mexico City and Cape Town.
Kwik Save declines to comment pending an official announcement. If you continue browsing, we assume that you consent to our use of cookies. More information can be found in our Cookies Policy and Privacy Policy. Kwik Save is to launch an own-label range of products carrying a new logo for the chain as part of a recovery programme, which will also include a facelift for its stores. The supermarket phased out its value own-label No Frills range from February , replacing it with the Somerfield Basics range.
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