Musgrave Retail Partners GB will spend £33m to provide the "best supply chain in Great Britain, bar none" for its Budgens franchise business, with afternoon deliveries, wider ranges and new value lines.
The retailer will invest £10.5m to double the capacity of its Wellingborough depot, as well as £5m in its depot in Andover to allow Budgens stores to expand in the south west. It will also spend £7.5m on supply chain IT, £8m on enhanced, chilled lorries with new livery and £2m on roll cages.
As part of a three-month plan kicking off this month, Musgrave Retail Partners GB has vowed to focus on availability, price, value perception, promotions and refits for Budgens, as well as growing core categories such as alcohol and fresh. It plans to launch a full range of value lines by the end of August, as well as new sandwich, meat and bakery ranges.
"Against a background of increased competition, a Budgens brand that is different and better can thrive," said Phil Smith, MD of Musgrave Retail Partners GB. "Our focus will be on delivering the brand basics and building a culture of customer service."
The changes for Budgens follow a similar investment in Londis, which is introducing six-day afternoon and evening deliveries, as well as chilled vehicles across the fleet.
The changes could deliver up to £25,000 of improvements to Londis independents' bottom lines, said Musgrave Retail Partners GB supply chain director Scott Wharton.