Interview by Neighbourhood Retailer staff writer, Julie Nash<\/strong><\/p>\n \u201cBrexit created a sense of uncertainty, however the convenience sector is uniquely vibrant\u201d explained Michael McCormack. \u201cWe\u2019ve had a team looking at Brexit for the last few years and while we still wait to see the detail of the deal and the implications for Northern Ireland, we are well prepared for whatever happens.\u201d<\/p>\n \u201cWith lifestyles changing and people looking for convenience more and more, this is creating opportunities for us. We\u2019ve been investing – despite the Brexit uncertainty – upgrading existing stores and adding eight new stores in Northern Ireland such as the new Centras in Donegall Square East and on Bradbury Place in Belfast.<\/p>\n \u201cThe opening of the new SuperValu at Fruitfield in Richill, formally a EuroSpar, is now owned and operated by the Woods family, was a milestone in 2019 \u2013 bringing the total Musgrave stores for Philip and Neville Woods to four stores. The new Patterson\u2019s Centra on the M1 near Dungannon is another excellent example of further expansion within the Musgrave portfolio.\u201d<\/p>\n The year ended on a high with further Centra stores opening on York Road Belfast and at the Millennium Forum in Derry~Londonderry and refurbishments at Islandbawn and Clogher.<\/p>\n \u201c2019 saw significant investment with growth across our SuperValu, Centra and MACE brands. We worked with our independent retail partners supporting them to refresh their stores while also investing in our company owned stores. A \u00a31 million investment in our flagship SuperValu store in Lisburn is an excellent example of this.\u201d<\/p>\n In recent years, Musgrave has re-invested in developing and refreshing its MACE brand, through a Store of the Future concept focusing on fresh and food to go. MACE Toomebridge was the first to unveil the new concept with great success and 2020 will see that rolled out further across the MACE network.<\/p>\n Michael explained that brand developments are predominantly retailer led.<\/p>\n \u201cOur retail brands – SuperValu, Centra, MACE – are continuing to thrive and develop. We have a strong working relationship with our retail councils. These are representative groups of our retailers, and their input is crucial to help us further develop the brands.\u201d<\/p>\n Musgrave has also been developing and investing in its cash and carry business, Musgrave MarketPlace. Around \u00a31m was invested in the MarketPlace Derry~Londonderry, and similar investment in the Duncrue branch \u2013 which is now open to the public for the first time.<\/p>\n Another major move in 2019 was the acquisition of Drinks Inc. (which continues to operate as a stand-alone business). Established in 2001, Belfast based Drinks Inc. is one of the largest and fastest growing independent drinks distributors on the island of Ireland. With a portfolio of over 1,000 products, Musgrave acquired the business from Paul Camplisson, who will remain on a consultancy basis, working with Musgrave to grow Drinks Inc. further.<\/p>\n \u201cDrinks Inc. has a long tradition in Northern Ireland with the on and off licence trades. It was a strategic move for Musgrave with the alcohol market presenting a great opportunity.\u201d<\/p>\n Retail is a competitive market, but Musgrave has strong and established brands, as well as continually developing new concepts.<\/p>\n \u201cA brand is only as good as the experience of the consumer, therefore our focus for all the brands is to satisfy and ultimately delight the consumer.<\/p>\n \u201cThe success of our Frank and Honest coffee brand is a good example. It is a fantastic offer that is now available in 750 SuperValu, Centra and MACE stores across the island of Ireland. It is now the number one coffee brand on the island, born from an understanding of what the customer wants and what the retailer needs.\u201d<\/p>\n Musgrave has a full team dedicated to the Frank and Honest brand alone. From the outset, the team carried out research and taste profiles \u2013 focusing on how to deliver a consistently good cup of coffee.<\/p>\n Even when developing a new brand or concept, Michael explains that it all boils down to the basics \u2013 the right product, at the right price, in the right location with the right people.<\/p>\n \u201cWhen we look at developing our brands, we take a four-quadrant approach – first of all the people; then the products and services; thirdly the communications and finally, the environment.<\/p>\n We have an excellent brand engagement programme, training our retailers in providing excellent customer service alongside our Breakthrough training for our colleagues in head office. Encouraging them to be the best that they can be, thereby improving both the business and the individual.<\/p>\n Communicating with our customers is key but ensuring we are targeting them in the right way is imperative. We\u2019ve taken a lot of the spend on traditional leaflet distribution and reinvested it into digital platforms and radio.<\/p>\n And because people want a bright, open environment wherever they shop, we have therefore invested significantly in store design and branding over the past three years.\u201d<\/p>\n Michael is optimistic about various new developments and growth opportunities in 2020 and beyond.<\/p>\n \u201cThere are several live green-field and brown-field prospect sites as well as major opportunities in Northern Ireland for our concepts such as Moo\u2019d ice cream, Green Kitchen (Centra\u2019s salad offering) and a new pizza concept, Pizza Caramico which are all showing success in the ROI stores. There are two standalone Frank and Honest cafes in Dunboyne and Dublin and we are considering opening Northern Ireland\u2019s first coffee shop under the brand in Belfast.\u201d<\/p>\n \u201cOn the foodservice side of the business, along with Drinks Inc, there is La Rousse Foods, acquired by Musgrave in 2017 and also operating as a stand-alone business.<\/p>\n \u201cWe can bring so much more to any hotel, restaurant or bar offering anything from every day to premium foods to drinks \u2013 we can offer the full package now and will focus on making this work for our customers.\u201d<\/p>\n The Frank & Honest brand has been a landmark success for Musgrave \u2013 so can they predict the next big thing?<\/p>\n \u201cThe Moo\u2019d instore concept for ice cream (soft scoop, Gelato, whipped) is fantastic\u201d said Michael. \u201cSo far there are only two in Northern Ireland but over 200 in ROI, so we are planning a significant rollout across our network this year.<\/p>\n \u201cThe biggest macro trend in food to go will be health. Our Green Kitchen concept offering fresh chopped salads is set for major growth. The demand for vegan options is stepping up and sustainability is increasingly important. Developing apps, and thereby generating customer loyalty, is also important \u2013 for example apps for Frank & Honest, or a Beat the Q.\u201d<\/p>\n Corporate social responsibility is important for all divisions in Musgrave.<\/p>\n \u201cOur ambition is to leave a positive and lasting legacy for future generations, with a clear and committed approach to sustainability in every area of our business and by taking our partners on this journey with us. We\u2019re fully committed to this and were recently named a Sustainable Development Goal champion for 2019-20. We are looking at all our packaging to make it sustainable such as our Frank and Honest coffee cups and our compostable shopping bags now in SuperValu and Centra stores \u2013 this is what the younger generation is increasingly concerned about and something that is central to our business plans.\u201d<\/p>\n \u201cWe\u2019ve been recognised for our work with our charity partners, most recently being awarded the CSR award at the AIB Business Eye Awards for our partnership with Action Cancer. This partnership supports the Big Bus and the Health Action Programme through our SuperValu and Centra retailers and has raised over \u00a33 million to date. MACE and MarketPlace have also raised over \u00a3200,000 for Chest, Heart and Stroke.\u201d<\/p>\n Awards are important for Musgrave because they recognise the investment and dedication of both their retailers and brands \u2013 the group has picked up various titles at the Neighbourhood Retailer Awards.<\/p>\n Responding to consumer demands <\/strong><\/p>\n Keeping ahead of trends and changing consumer habits is paramount.<\/p>\n \u201cIt\u2019s about food leadership and health, rolling out new concepts that respond to what consumers want, whether that\u2019s meat, food to go, meal solutions, or alcohol.<\/p>\n \u201cValue is critical. The economy\u2019s flat, there\u2019s a squeeze on incomes, we need to continue to bring relevant value \u2013 whether that\u2019s investing in weekly promotions, providing quality own brands at 40% cheaper or monitoring competitor prices.<\/p>\n \u201cOn an operational basis, the opportunities that digital presents to making life easier for the consumer is important \u2013 such as rolling out self-scan checkouts.<\/p>\n Looking ahead <\/strong><\/p>\n \u201cFor any business the most important focus should be on looking after their customers and their colleagues. Ultimately, it\u2019s about doing the basics well \u2013 the right product, at the right time, in the right place at the right price. Alongside that, you need to continuously innovate and develop new ideas, but not at the expense of the business or customers.<\/p>\n \u201cMy new year message for 2020 would be \u2013 keep doing the basics excellently. Look after your colleagues and they will look after you. It really is that simple\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":" Making the most of opportunities in a vibrant convenience sector, NR talks to Michael McCormack Managing Director of Musgrave in Northern Ireland about future growth<\/p>\n","protected":false},"author":11,"featured_media":13101,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,182],"tags":[10],"aioseo_notices":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/neighbourhoodretailer.com\/wp-content\/uploads\/2020\/02\/Michael-McCormack-1-e1593374564258.png","_links":{"self":[{"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/posts\/13092"}],"collection":[{"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/comments?post=13092"}],"version-history":[{"count":3,"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/posts\/13092\/revisions"}],"predecessor-version":[{"id":13102,"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/posts\/13092\/revisions\/13102"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/media\/13101"}],"wp:attachment":[{"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/media?parent=13092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/categories?post=13092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neighbourhoodretailer.com\/wp-json\/wp\/v2\/tags?post=13092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Investment<\/h3>\n
Food service<\/h3>\n
Brand development<\/h3>\n
Basics<\/h3>\n
Concepts<\/h3>\n
What\u2019s next in Food to Go?<\/h3>\n
Corporate social responsibility<\/h3>\n