retail analysis depot visit report, january...

© IGD 2014

Retail Analysis Depot Visit Report, January 2014

© IGD 2014

Key depot initiatives and features

Dual branded site with separate units

Booker unit targeting retailer needs

Makro unit targeting caterer and professional needs

Adding Booker catering specialism to enhance Makro capability

Extended back-of-house area provides space for delivery service

Source: IGD Research & Booker

© IGD 2014

Booker/Makro, Sheffield: key information

Date & time of IGD visit 2nd October 2013: 11.00am

Depot format Trade cash & carry and delivery

Address Parkway Avenue, Sheffield, South Yorkshire S9 4WD

Depot opened First opened by Makro in 1981, converted to Booker/Makro July 2013

Checkouts n/a

Size 107,855 sq ft /10,020 sq m

No. of Lines n/a

Opening hours Mon - Fri: 6.00 – 21.00 Sat: 6.00 – 19.00 Sun: 9.00 – 17.30

Local competitors Landmark group member Parfetts has a depot just three miles away, while national competitor Bestway operates a Batleys site within five miles and Costco also has a depot nearby. Other competitors, such as fast food specialist Adams and confectionery specialist Hancocks also have sites within five miles

Facts & figures

Source: IGD Research

© IGD 2014

Booker/Makro, Sheffield – an introduction

•Leading UK wholesaler Booker acquired Makro in 2012, but integration remained on hold until the deal was cleared by the competition authorities in April 2013 •Formerly the UK subsidiary of Germany-based Metro AG, Makro has been established in the UK since 1971 and has a network of 30 purpose-built cash & carry depots, serving a highly miscellaneous customer base •Contrasted with the trade-focus of Booker (primarily targeting retailers and caterers), Makro’s customer base has been historically weighted towards broader professional groups amongst small businesses at large •At an average of 100,000 sq ft the Makro depots are significantly larger than the average Booker, offering scope to bring elements of the wider business together on a single site to make more effective use of the available space •Sheffield represents Booker’s first attempt to bring the two wholesale brands together, combining ranges to enhance Booker’s capability in the catering channel, maintaining the credibility of its core retail offer and bringing more focus to the offer to target the needs of wider professional groups


© IGD 2014

Booker/Makro, Sheffield, depot layout

Source: IGD Research (Note: Simplified and not to scale)

Entrance

Exit

© IGD 2014

A new ‘multi-unit’ format

Source IGD Research & Booker

At Sheffield the two cash & carry offers are presented in separate units, each with its own entrance and limited internal

communication This execution has adapted the role of each element to create

targeted offers as follows:

•Booker – focus on needs of retail customers in ambient categories above all

•Makro – focus on needs of caterers and foodservice customers, plus ranges for wider professional use

•Delivery – dedicated service areas for Premier retailers and on-trade drinks customers

Dual branded site

© IGD 2014

Tailored with local focus


The approach taken at Sheffield has been tailored closely to the needs and make up of the local customer base and Booker stresses that future executions will be equally tailored to produce

solutions that vary in the detail of their implementation. The local affinity of the depot is signalled clearly with ‘Sheffield’ included prominently in the signage, while ranges also include key local products and locally popular brands such as Henderson’s Relish

and Primus lager.

Booker is now reviewing the remaining Makro estate of 29 depots to identify where similar joint solutions can be

applied. The company aims to convert six further sites in the

coming year.

Dual branded site

© IGD 2014

Booker – dedicated retail offer


The Booker unit retains the look and feel of a conventional Booker outlet.

However, at Sheffield the Booker range is focused exclusively on retail customers, with up-weighted

space for key ranges such as soft drinks. Dominated by ambient lines the range also

includes temperature controlled ranges in frozen and chilled categories and formats relevant to

retail.

Limiting the ranges to retail provides a more condensed and efficient depot experience for retail customers, and avoids

dilution of the relevant pricing and promotional activity

Targeting retailer needs

© IGD 2014

Makro - creating enhanced catering focus


In non-food the Makro unit provides a clearer focus on specific

‘professional’ needs such as work-wear and office equipment, both for core customers in retail and catering

but also for customers in small business at large.

The Makro offer combines the catering ranges of Makro and Booker, building on the strengths

of each. These include the full portfolio of Booker

catering private label such as Chefs Larder and Farm Fresh, and selected elements of the

Makro brands.

Targeting caterer and professional needs

© IGD 2014

Makro – ‘centre of the plate’ capability


Joining Makro’s established expertise in fish with Booker’s in butchery,the new-look

Makro depot offers a significantly enhanced fresh offer to meet the needs of a growing

range of customers in the catering and foodservice channel.

Backed with personal counter service this ‘centre of the plate’ capability in particular provides

the Makro unit with clear destination status for restaurants,

hotels and pubs.


© IGD 2014

Makro – adding speciality to create a unique offer


The Makro unit has also gained a dedicated Ritter Courivaud section, offering a range of high quality ingredients.

The Makro depot can offer specific and unique lines to help caterers differentiate their menus. Storage capability is also key to underpinning credibility: the walk-in chiller for fresh produce supports

product quality and integrity.


© IGD 2014

Also key role as delivery hub


The larger part of the delivery area is devoted to the catering offer. This also houses its specialist on-trade operation Classic Drinks enabling the

depot also to meet a wider range of ‘wet’ needs amongst pubs and clubs.

A significant area back-of-house has been reserved to offer facilities for picking and despatch of orders to customers of Booker’s delivery services.

This area has been divided into two, to provide focus on the two key customer channels.

An area adjacent to the Booker unit provides space for servicing retailers, and the 76 local

Premier symbol retailers in particular. Above all this is used to manage stock for the

ongoing programme of consumer promotions.

Extended space for delivery service

© IGD 2014

So what do we think?

1. Booker/Makro, Sheffield showcases an enhanced offer for each of the two key Booker customer groups in retailing and catering, targeted through separate units, bringing focus and clarity to the communication with the different channels.

2. For retailers, the creation of a dedicated offer in the Booker unit, provides a simpler and quicker shopping experience with greater guaranteed stock availability on key lines and promotions.

3. For caterers bringing the combined full range of relevant fresh food, plus specialist ingredients, creates an offer with real credibility and convenience to meet the quality needs of customers in the sector.

4. Stripping out wider Makro non-food ranging in areas like electricals brings greater focus to the offer for other professional customers, targeting key areas of need such as specialist clothing and office supplies.

5. Using the site as a hub for bringing in wider elements of the Booker operation such as Classic Drinks on-trade wholesale, also enables the depot to target new customer groups and wider customer needs.

© IGD 2014

Next steps.....

Wholesaling 2014 is the event for this vital route to market for any supplier

seeking to maximise their opportunities in the independent retailing and

catering channels.

Featuring new and exclusive channel research from the IGD team to get

under the skin of the changes and challenges facing wholesalers and their

customers, the day will offer a great way to get ideas and review your strategy

for the year ahead.

Find out more…>>

http://www.igd.com/Our-Services/Conferences-and-Events/Wholesaling-2014/

http://www.igd.com/Our-Services/Conferences-and-Events/Wholesaling-2014/

retail analysis depot visit report, january...

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