CHAMPIONING THE INDEPENDENT RETAILER
There are a number challenges facing the convenience sector and the symbol sector in which Londis operates that have had strategies developed to ensure the its retailers are able to survive and compete:
i) Government policies
Musgrave’s whole business philosophy, both in
Ireland
and its MBL division in the
UK
, is to be the number one supporter of the independent retailer. As a result, very senior members of the management team are actively involved in lobbying central government, both directly and via the industry’s trade bodies such as the ACS and FWD, to have the market classified as one market, fight against red tape and burdensome legislation that adds to the workload and financial pressure on independent retailers. As the largest symbol dedicated solely to supporting the independent, MBL is championing itself as ‘the number one supporter of independent retailers’ in the
UK
and the logo is used on all trade facing communications (e.g. brochures, trade press adverts etc). Such positioning allows MBL to create a unique proposition and give convenience retailers wishing to trade as independents the confidence of a group with the same aims.
ii) Financial sustainability
MBL recognises that with greater competition and increasing costs (e.g. the national minimum wage) independent retailers still need to generate sufficient profitability in order to be able to make a living and reinvest and continue to meet the expectations of today’s consumers. MBL itself was created to bring the combined volume of Budgens and Londis in the
UK
and the Musgrave Group in its entirety in order to generate economies of scale through improved buying terms for both goods and services required by retailers. These have manifested themselves in the cost price reductions on key areas such as alcohol, tobacco, bread and milk and improved LOD rebate scheme.
iii) Multiple competition entering the sector
Whilst it is inevitable that the multiples will continue to invest in acquiring a larger share of the sector, MBL is convinced that progressive independents are able to, and currently do, compete effectively by concentrating on what makes them better. By focusing on customer service, offering the right range of goods and services and embedding themselves in their communities through active local marketing, progressive independent retailers will be able to compete. MBL recognises that strengthening the Londis brand and improving the fresh offer are priorities and projects to develop these areas are already underway.
iv) Recruitment and retention of quality personnel
Whilst Londis retailers are entirely responsible for meeting their obligations with regard to their staff, MBL recognises that it can provide support through advice and literature to help them recruit, induct and train and retain staff as outlined in the resources section of this website.
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