Wholesaler - Neighbourhood Retailer

Tesco fights to keep UK shoppers from discount grocery rivals amid cost of living crisis

Linda Stewart — Wed, 05 Oct 2022 10:32:48 +0000

Tesco said consumers “watching every penny” are still shopping at its stores amid intense competition from discount grocery rivals.

Britain’s biggest grocer reported better-than-expected sales in the first half and only slightly cut the top end of its profit guidance this fiscal year, even as costs rise as it tries to keep shelf prices low and increases staff pay.

The stock fell as much as 1.6% Wednesday morning.

Tesco is fighting to keep shopper loyalty as consumers in the UK decamp to cheaper rivals Aldi and Lidl.

The highest inflation in four decades and rising energy bills are piling pressure on consumers to save money on food. Tesco matches its prices with Aldi across hundreds of basic items that range from teabags to bananas to try to avoid losing market share to the discounter.

“Customers are increasingly concerned about household spending and are watching every penny to make ends meet,” CEO Ken Murphy said.

Tesco said its hourly workers will receive an extra 20 pence an hour taking the base rate of pay to £10.30 (€11.82) an hour to help ease the cost-of-living crisis for its staff. The grocer also raised its dividend and froze pricing on more than 1,000 products until 2023.

The grocer now expects retail adjusted operating profit will be between £2.4 billion and £2.5bn (€2.9bn) this year, lowering the upper range from £2.6bn (€3bn).

Tesco pointed to “significant uncertainties” in the trading environment, particularly consumer behaviour.

Rival Morrisons reported a 50% slump in adjusted earnings in the third quarter last week. Even Aldi, which is winning customers and growing its market share, has seen pre-tax profit slide more than 85% from the year before.

Tesco also said it’s trying to deliver its three-year savings goal 12 months early and reach £1bn (€1.1bn) of savings by February 2024. As part of this, Tesco already cut 1,600 jobs earlier this year by revamping how its stores operate overnight and shutting its discount chain Jack’s.

Tesco, which also owns wholesaler Booker, leads the UK grocery market with a 27% share and employs more than 360,000 people. The pay increase for staff at its UK stores comes on top or raises earlier in the year as inflation saps purchasing power.

The grocer is providing extra support to help employees through the cost-of-living crisis with an extended discount allowance, more access to working hours and free food in staff rooms.

The company’s shares have lost more than a quarter of their value this year.

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Musgrave NI right on track for Down Royal Bank Holiday fixture

Linda Stewart — Tue, 16 Aug 2022 10:46:05 +0000

Musgrave NI is returning to Down Royal as it takes on title sponsorship of the racecourse’s August Bank Holiday fixture.

The partnership will give the leading food convenience retailer and wholesaler, whose brands include SuperValu, Centra, Mace, Musgrave MarketPlace and Drinks Inc, exclusive naming rights to the full race card on Friday 26^th August – the Musgrave Race Evening.

This is not Musgrave NI’s first foray into the world of horse racing as it has partnered with the racecourse for 10 years.

Down Royal Chief Executive, Emma Meehan said: “We are absolutely delighted to continue our partnership with Musgrave NI and are excited to welcome them and their retail partners and suppliers back to Down Royal on Friday 26^th August.

“Like Down Royal, Musgrave Group has a rich local heritage with a 146-year history. We are always looking to work with local brands who share our commitment to developing authentic and elevated experiences for racegoers.

“Through this renewed partnership we hope to enhance the race-going experience for fans and sponsors and make it a race evening not to forget.”

Retail Sales Director at Musgrave NI, Paddy Murney said: “We’re pleased to be partnering once again with Down Royal Racecourse for this final fixture of the summer calendar. The event is an opportunity for Musgrave to show appreciation to our retailer partners, whilst enabling them to take some time out of their stores.

“The sponsorship also provides an opportunity to showcase Musgrave to a diverse local audience whilst being part of an extremely exciting sporting weekend.”

For full details of the Musgrave NI Race Evening or to book tickets, please visit www.downroyal.com

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Antrim’s Castle Mall to open 8,500 sq ft Lynas Food outlet

Linda Stewart — Tue, 24 May 2022 09:42:31 +0000

The property developer that bought a shopping centre in Antrim last year has announced its first major new tenant.

Keneagles Ltd, whose directors include pharmacy boss Colin Johnston, said Lynas Food Outlet will launch at Antrim’s Castle Mall in late autumn.

Work is due to start to restructure part of the mall so that the 8,500 sq ft store can open.

Mascott Construction is due to carry out the building work at the new outlet — which will be reached from Central Car Park — creating 30 construction jobs.

The Lynas family, who own Lynas Foodservice, have said they have ambitious expansion plans to reach 18 stores by 2024.

The new outpost will stock Lynas’ ‘frozen-for-freshness range’, which includes big-pack fresh chicken fillets, multipack bulk-value deals and Lynas’ own-brand butchery label, Causeway Prime.

Gary Mills, Lynas Foodservice chief operating officer, said: “We are thrilled to see work beginning in Castle Mall for our latest Lynas Food Outlet.

“Antrim is going through a huge regeneration and, with more investment in the town centre and additional family homes under construction, we see the potential in this catchment area and are delighted to not only bring our product range to the town, but also create additional jobs throughout the construction and retail operations.”

Pamela Minford, centre manager at Castle Mall, said she was pleased to see another retailer investing in the scheme.

“2022 has been a positive year for shaping retail and we have been on a growth trajectory since the transfer to the new owners in 2021.

“Lynas Food will reshape Castle Mall completely by opening it up onto Central Car Park and inviting customers to continue their shopping experience right through the centre.

“We have a strong local community in Antrim who want to see Castle Mall succeed and this is just the beginning of our regeneration strategy, with further exciting development plans to come soon.”

Investment in Castle Mall has also brought about the upsizing and relocation of health shop Holland & Barrett, as well as Specsavers and Card Factory. A new Vietnamese-style coffee shop has also opened, while pet store Furbies is set to open next month.

Billy Webb, the Alliance mayor of Antrim and Newtownabbey, said: “As a well-known brand in Northern Ireland, Lynas will undoubtedly be a big attraction for shoppers and will be key to the further development of this part of Antrim.

“The council working with the private sector has developed really ambitious plans for Antrim and looks forward to implementing these over the coming years.”

Castle Mall was bought over by UK property company Edinburgh House in 2010.

Antrim and Newtownabbey Borough Council granted planning permission for redevelopment at Castle Mall last year.

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Musgrave MarketPlace appoints Declan Flood as new head of foodservice sales

Linda Stewart — Mon, 14 Mar 2022 14:39:41 +0000

Musgrave MarketPlace, Ireland’s only 100% Irish-owned national Foodservice wholesaler, has appointed Declan Flood as its Head of Foodservice Sales.

Bringing more than 20 years’ experience of sales leadership to the business, Declan will be responsible for maintaining the wholesaler’s strong partnership ethos, supporting customers as they continue to emerge from the pandemic, which saw customers innovating with new business models to meet challenges.

With the pandemic also accelerating the move to digital for many foodservice customers, Declan will take the lead on migrating and recruiting customers to the new and improved online store, creating a seamless shopping experience on the business’s fastest growing channel.

He will support Musgrave MarketPlace on its brand promise of being First for Service, First for Choice and First for Value to Foodservice customers all over Ireland.

An accomplished leader, Declan has a wealth of experience in sales and channel management across field sales, inside sales and digital sales in B2B and B2C markets.

He has held several senior commercial roles, most recently as Head of Sales in Bulmers and prior to this Head of Sales in Sysco and Head of Sales in Eir. Declan will bring his collaborative leadership style to the business, with an emphasis on coaching and mentoring.

Speaking on the announcement Declan Flood said: “I’m delighted to join Musgrave MarketPlace as Head of Foodservice Sales and I look forward to sharing my extensive sales and management experience with the business. I’m excited about the prospects for Musgrave MarketPlace and will work closely with the management team and our colleagues to implement a challenging but rewarding strategy, identify new commercial opportunities and support our customers.”

Michael McCormack, Managing Director, Musgrave MarketPlace, said: “It is with great pleasure that I announce Declan Flood has been appointed to Head of Foodservice Sales in Musgrave MarketPlace. Declan has an outstanding track record in sales leadership and will be a fantastic addition to the management team as we continue to drive growth and invest in our foodservice business. As a company, our aim is to grow good, sustainable businesses for our customers and Declan will be a key part of this.”

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KeyStore Partners With Online Shopping Platform

Emma Dickson — Wed, 11 Nov 2020 09:42:15 +0000

Food and drink wholesaler JW Filshill has announced a new partnership with online shopping platform Appy Shop to provide KeyStore retailers with an integrated e-commerce solution that enables them to offer their customers an online shopping platform for delivery and click-and- collect services.

Appy Shop, a mobile app and web-based convenience store home-delivery platform, links directly into a store’s EPoS, so retailers are not required to spend time maintaining a separate product file and pricing structure. The platform also automatically adds detailed product descriptions, imagery, nutritional information, and other key information.

Craig Brown, Filshill’s Chief Sales and Marketing Officer, said: “We want to offer our KeyStore customers a home-delivery solution that is both cost-effective and easy to use – for them and the people using their stores every day. Appy Shop ticks all the boxes and will provide a valuable service to communities across Scotland and the north of England as lockdown restrictions become more uncertain, the weather gets colder and the demand for home delivery increases.

“We have collaborated with the team at Appy Shop to make this service available to all KeyStore retailers looking for a home-delivery and click and collect solution that is not time-consuming or onerous to operate, yet enables their customers to shop from the comfort of their own home should they not wish to venture out in these unprecedented times.”

Appy Shop’s Group Sales Director, James Widdowson, said: “After launching Appy Shop in February 2019 and going live with the first stores later that year, we have seen the platform gain tremendous traction with retailers across the country who want to enhance the in-store shopping experience with a home-delivery service that meets their needs and those of their customers.

“We’re delighted to be collaborating with JW Filshill, an award-winning wholesaler, to make the service available to its KeyStore estate.”

One of the first KeyStore retailers to sign up to Appy Shop is Sukhdave Basra, owner KeyStore Shortlees in Central Avenue, Kilmarnock. Manager Donna Harrison said: “Appy Shop has given the business the great start in making deliveries to our customers and a chance to grow the business outside our normal routine.

“Appy Shop has an easy-to-use portal that gives you excellent control and the support from the Appy Shop is exceptionally good – the training was great and they answered all our questions. Nothing is too much trouble and this is definitely the right decision for the business.”

In Fife, Audrey Morland, a long-established retailer with a busy store in Leven, has recently joined the KeyStore family and quickly identified Appy Shop as the perfect partner for her home-delivery solution. “We were doing about 30 home deliveries a day in the early months of lockdown and want to continue to provide what is a much-needed service for many of our customers,” she said.

“With local lockdowns in various parts of the country and coronavirus cases increasing again I think it is likely that home delivery will become more popular with customers who might be reluctant to go out as much, particularly with the colder weather on its way.”

Filshill, a fifth-generation wholesaler that over 190 KeyStore convenience stores across Scotland and the north of England, will relocate to a 120,400sqft purpose-built distribution centre at Westway Park near Glasgow Airport in early 2022.

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