Superquinn plans 'value'discounts to combat rivals: ThePost.ie


TCH Archives > Sunday Business Post > 2004/02/15 > Superquinn plans 'value'discounts to combat rivals

Superquinn plans 'value'discounts to combat rivals
Sunday, February 15, 2004

By Kathleen Barrington

Superquinn plans to double the amount of "value" products on offer in its stores this year in its continuing battle with German discounters and supermarket rivals.

The super market chain plans to double its 260 value items under the Euroshopper brand, bring the number to about 500, according to deputy chairman Eamonn Quinn. The Euroshopper packaging will be redesigned to match the colourful packaging of German discounters Aldi and Lidl.

Superquinn is a member of international buying group AMS, which supplies it with the Euroshopper brand. It was established by continental retailers to combat the threat from discounters.

Quinn is aiming to segment his product offering to give the consumer the option of buying cheaper products while continuing to offer premium specialist fresh food.

Superquinn is also planning to spend €5 million to build a 40,000 square foot extension to its €35 million national distribution centre. It has applied for planning permission for the extension to its 180,000 square foot distribution centre at Blanchardstown Corporate Park in Dublin.

The two-year-old, purposebuilt centre is operated by British logistics firm Wincanton and serves Superquinn's 19 supermarket outlets.

Quinn said the distribution centre had resulted in higher customer satisfaction because it had enabled Superquinn to improve the availability of products on its shelves.

He added that Superquinn now has 98 per cent of products available at any given time compared with a European average of 93 per cent. "We believe we get extra sales because of extra availability," he said.

Declan Carolan, supply chain manager at the distribution centre, said the centre had enabled the company to deliver more frequently to the supermarkets. "Previously, suppliers delivered once a week," he said. "Now, we deliver six days a week."

Quinn said the distribution centre's operating costs could be met from the savings obtained by more efficient distribution, but that the full payback on the original investment would probably take about seven years.

Last year Superquinn signed a €2 billion joint venture agreement with wholesaler Stonehouse to conduct their buying, to them bring down prices by negotiating better deals with suppliers.

Quinn said the joint venturehad resulted in some good deals.

Laterthismonth, Superquinn will begin distributing Stonehous e's Homestead range from the Blanchardstown distribution centre.

In a separate development, Quinn said Superquinn's €10 million information technology system would go live in April.

The system, which is supplied by SAP, will integrate all of Superquinn's IT requirements.