In the past few years, pubs have struggled to attract consumers through their doors – due to changing shopping habits and a stronger desire to save money on luxuries many of those who once frequented their local now choose to purchase cheaper alcohol for consumption in the home. While this has had a devastating impact on the pub industry, however, it has proven fortuitous for off license chains, with Bargain Booze this week revealing it will soon expand north of the border.
The Crewe based retailer has confirmed it will enter into a franchise partnership with Scotmid, otherwise known as The Scottish Midland Cooperative Society, in a bid to enter the Scottish market early next year. A number of stores are expected to open throughout the Scottish central belt in a trial period until June 2015, at which point Bargain Booze’s parent company Conviviality Retail will decide whether to further expand in Scotland.
Conviviality Retail chief executive, Diana Hunter, expressed her hopes that the chain’s current trading methods will prove popular north of the border and insisted that the new expansion drive will not be to the detriment of existing stores.
She says; “We continue to maintain focus on our plans and our offer remains as competitive as before.
“With the continued drive to re-fascia our stores, and the development of both the click and collect proposition and our mobile app, we have strong plans to deliver profitable growth for our franchisees and the company.
“We are very excited to be working with Scotmid to bring Bargain Booze to Scottish consumers – if successful, this trial has the potential to open up a new long term growth opportunity.”
Conviviality Retail certainly seems to have been successful in identifying the needs of consumers in England and Wales, as in a trading update for the 26 weeks to the 26th of October the group confirmed that performance was very much in line with market expectations for the full year. Although like for like store revenue fell by 1.7 per cent when compared to the previous year, unaudited revenues remained buoyant at £183 million, allowing the group to remain optimistic about a fruitful Christmas trading period.
The group is also focusing upon expanding the Bargain Booze brand south of the border, with its first large BB’s Warehouse having recently opened in Wakefield. As this trial format store has performed largely in line with market expectations, Conviviality Retail intends to open another store later this year in an as-yet undisclosed location.
In a statement, Conviviality Retail was optimistic that the Scottish expansion will prove popular with consumers.
It said; “The combination of Scotmid’s excellence in retail management, property and distribution with Bargain Booze’s unique brand and trading expertise will create a compelling customer proposition.
“We are confident that we have the strategy in place to deliver a positive second half and profitability will remain in line with our plan.”
Do you think the entrance of Bargain Booze into the Scottish consumer marketplace could have a detrimental impact upon the pub industry in Scotland?
