Independent convenience store joining a symbol groups

Dinny76

Hi Guys we own a small convenience store/deli in a regional town which my wife runs. It is an independent store.

It is going well good growth and margins would be on the good side. A lot of supplier remark on how busy we are regarding the amount of stock they are supplying especially for the floor size

A number of symbol groups have approached us to join them, we always wanted to stay away from them and still feel that way.

My question is in the back of my mind I wonder what we are missing out and what they benefits they would bring. Is there anyone out there that moved to or from a symbol group and the reason why

Thanks

skelligs

from a layperson's point of view, I think it best as symbol groups generally mean a certain standard is offered.

In the old days everyone knew the local shop and there was not as much travel about, so the local shop depended on and got the local business.

These days, people are not as much on first name terms with shops, many commute a lot and don;t get to know the local store too well. There's also a lot more "through" traffic in most towns.

I travel to Kerry a lot - I have 2 places I'll stop at. Either the Centra in Adare or the Mace / TOP filling station about 2 miles west of Adare. Why? Because I know I will get half decent coffee and I know they both do a decent range of sambos - Centra's new "Gourmet" range would also attract me.

If I'm travelling late, I'll go to Centra as I know I can pick up a few bits of grocery too.

In terms of the best ones

If you are strong on the grocery side, Centra would be my pick. If its smaller store and more news/mags/confectionery oriented Spar would be my choice. If both of these are already in the area GALA or Mace would be my next pick. Londis seems to have fallen off the radar & Daybreak is OK. Costcutter is another option.

Voltex

Dinny76 wrote: »

Hi Guys we own a small convenience store/deli in a regional town which my wife runs. It is an independent store.

It is going well good growth and margins would be on the good side. A lot of supplier remark on how busy we are regarding the amount of stock they are supplying especially for the floor size

A number of symbol groups have approached us to join them, we always wanted to stay away from them and still feel that way.

My question is in the back of my mind I wonder what we are missing out and what they benefits they would bring. Is there anyone out there that moved to or from a symbol group and the reason why

Thanks

Not sure how much latitude you would have retaining your own suppliers. From what I hear symbols insist on central billing.
Having said that you gain a much better supplier base/range, prices, promotional activity, recognition, support.

Dazzler88

I worked for Musgraves (SuperValu, Centra) in the past. I have outlined a few Pro and Cons, all of these are my interpretation of their stores:

Pros:

• Nationwide Recognised stores
• Regular customers, who will go nowhere else
• Better buying power from suppliers
• Great monthly offers for customers

Cons:

• You have to stock their specified items
• Although offers are great, some offers may not suit your store eg. Drinks offers would be no good unless you are selling a lot of Alcohol.
• You are basically running a shop for them

They are just a few factors to keep in mind. I am not that up on the financial implications of such a deal for yourself, that has an existing store. Do you know of any branded stores in your area? or better again do you anyone who is running similar in another part of Ireland that you could speak with.

lakill Farm

no one has mentioned the cash deposit you need to give to obtain central billing. Its direct debited out of your account weekly

also they charge you for been a member and to be honest a lot of the reps are pushy fecks. That's my experience both working in a MACE and also now doing accounts for clients who are members.


My opinion if its not broke don't go messing with it

Bandara

lakill Farm wrote: »

no one has mentioned the cash deposit you need to give to obtain central billing. Its direct debited out of your account weekly

also they charge you for been a member and to be honest a lot of the reps are pushy fecks. That's my experience both working in a MACE and also now doing accounts for clients who are members.


My opinion if its not broke don't go messing with it

Neither myself in any of my sites, or friends with various shops have ever had to (or been asked to) give a cash deposit of any amount to go on central billing

Dinny76

Guys thanks for all the reply's.

Will look at speaking to a few owners of stores if possible going forward

Regarding buying power we got a look at rates from one of the recognized brands and we were either equal or beating most of their prices with our current suppliers. The monthly offers margins are brutal

Regarding the deposit you would have to get a large bond from the bank for central billing which is no problem but would add an additional cost

A big concern going forward is getting suppliers for the likes for chilled foods. One of the main players in this is supposed to be pulling out towards the end of year, so being with a symbol would solve this problem

A big problem for us would be a fear of losing control of our shop

Keep the thoughts coming please

ScouseMouse

Maybe you should see if anyone will give you a warehouse account. In other words, set up a credit agreement for supply of ambient and chill. You could stay independant, but have reliable supply.

Trojan

Dinny76 wrote: »

A big problem for us would be a fear of losing control of our shop

Particularly stock & pricing.

I think you're going down the right track talking to other store owners. Ask as many people as possible for feedback, including other independents.

DubTony

Here, how's this for some anecdotal evidence.

200K invested in extending from a 650 sq.ft. independent to a 2000 sq.ft. Centra.

Within 3 years turnover had trebled. Margin was up from 18% to 22% ( a f*cking miracle given that 40% of sales were cigarettes, lottery products and services.)

Lease was sold for over a million 6 years after refit. The expertise that Musgrave brought together with my local knowledge made it a winner.

Unless your shop is a massively successful independent operating in a niche market (take Donnybrook Fair as an example), going down the symbol route is always a positive. Don't worry about margins on offers. These are designed to drive footfall to the store. From a retailers point of view they are there for no other reason. People almost always pick up something else. What you do with them once you get them in is down to you. Quality, service, value. I'll say it again. Quality, service, value. I have a feeling you already offer these, so the addition of a strong brand over the door can only add to your offering.

When I did the job, my break even was 25% above the turnover I was already doing, so for me it was a no brainer. If I couldn't hit that I didn't deserve to be in the business. Losing control of your shop won't be an issue when you start working with a symbol. You can always pull that sign down from over the door if you're not happy. While there are certain standards that must be adhered to, they are best for your business and give your customers extra confidence.

OP, PM me and let me know who you're talking to. I can give you some pointers, help cut through any of the BS you feel you might be hearing, and maybe point you in the best direction for you.

Dinny76

Guys's thanks very much for the input

DubTony very interesting insight as you have done it.

Can I asked the year you made the switch

Thanks

Dinny

DubTony

Dinny76 wrote: »

Guys's thanks very much for the input

DubTony very interesting insight as you have done it.

Can I asked the year you made the switch

Thanks

Dinny

Shop was closed for 6 weeks and re-opened in March 2000