DEEP-discounter Kwik Save has stepped up its Scottish campaign, with
the start of the massive re-launch of Shoprite's failed operations using
its own formula.
With a major investment programme under way, previously estimated at
#15m, Kwik Save is determined to top the 10% of the Scottish grocery
market which Shoprite commanded in its heyday.
Marketing director Nick Goss came north for the opening of revamped
stores at Hillington, Haddington and St Andrews, re-opened under the
Kwik Save name.
The stores feature about 3500 product lines, compared with Shoprite's
1000, which Kwik Save believes will make its Scottish invasion more
successful than that of its former rival, which has now retreated back
into its shell on the Isle of Man.
Shoprite announced the #53.1m sale of its 117 UK deep-discounting
stores and sites, 100 of them in Scotland, to Kwik Save late last year.
Since then, they have been trading under the Shoprite name, with Kwik
Save disposing of 12 non-trading stores.
Kwik Save, which has about 870 stores trading under its own name
throughout the UK, will continue most of Shoprite's Scottish operations.
However, a handful which are small, or which would otherwise be
competing with established Kwik Save outlets or revamped Shoprites, will
be disposed of.
Prior to last year's acquisition, Kwik Save was not a big name in
Scotland. It had only six stores, although it has since opened in
Hamilton and last week in Oban.
Scotland has also been a favoured expansion ground for supermarkets,
illustrated by last year's acquisition by Tesco of William Low, and
Sainsbury's rival bid attempt at the time.
Kwik Save, which began life in North Wales in 1965, has already
created another 900 jobs, through the doubling of the workforce in the
former Shoprite operations.
Mr Goss believes a further 1500 jobs could be created through further
expansion in Scotland, where it has earmarked 74 locations, including
re-siting plans for existing stores.
Kwik Save is convinced its heavy use of branded products, coupled with
its 130-strong ''no frills'' range, will allow it to cope with the
imminent German incursion.
Lidl already has a small presence in Scotland and Aldi, a well-known
name in England, has been lining up sites north of the Border.
Their philosophy is more akin to Shoprite's than Kwik Save's but,
given their expansion ambitions, they are obviously not intending to
leave as quickly as the Isle of Man group.
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