In a recent interview Jerry Marwood, the Managing Director of Spar UK, effectively announced the future alienation of small store profile with regard to CTNs and Off-Licences by saying: “one trick ponies don’t stand a chance. CTN’s are doomed.” I fully agree that the diversification of offer is important, but I also think that Jerry may have misunderstood the shopping mission of consumers visiting CTNs or, as Jerry would state, “one trick pony” locations.
The specialisation and development of that USP is actually important and the maintenance and the local knowledge of that USP is also key. We have a CTN customer who has made it his goal to provide magazines and newspapers on request, irrespective of how specialised they are. This has now developed into a major initiative for the store and customers are even referred to that store by W H Smith staff if they are unable to obtain the specialist magazine or newspaper they require. This is certainly a store that trades very strongly as a “one trick pony” and, as far as its customers are concerned, they would not wish to see it become a plagiaristic copy of the perceived range and requirement as laid down by major multiples or large convenience store profile rules of consumer engagement.
I genuinely believe that the development of a USP within a “one trick pony” format is as sustainable, if not more sustainable, than increased operational costs for a small store to broaden their range into chilled; fresh; green grocery; bakery and food to go, because the risks that the investment and the additional cost incur will bring on a greater opportunity for administration and receivership, than developing the USP within the operational costs which is far more relevant to the turnover and profitability of that small store.
It is unusual for me to disagree with Jerry Marwood because he has proven experience and expertise in the development and management of Spar UK, but sorry Jerry, I have to disagree with you on this point as I genuinely believe there are still opportunities.
Tuesday, 13 July 2010
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