Relaunching under the dual-branded fascia in March from an ordinary Costcutter store, the retailer, Kersheaup Vagadia, now expects a two-and-a-half year payback from the initial £250,000 store investment, a year sooner than what was originally predicted.
Ths store has seen a 40% increase in footfall, which has triggered double the amount of chilled sales, led by meat and ready meals growing 270%, and a 24% increase in alcohol, now averaging £7,000 a week.
The latter has been prompted by the new Bargain Booze section of the store, which boasts over 750 SKUs of specialist beer, wines, and spirits. There has also been high demand for a new range of ales and low & no options, according to the retailer.
“The hybrid implementation of the new Bargain Booze concept in store has yielded remarkable results for our store,” said Vagadia. ”With two prominent brands displayed above our door, we’ve witnessed a significant increase in footfall, not only gaining substantial numbers of customers but also an average basket spend increase of £2.20 per customer.”
Shoppers have also been able to enjoy a revamped bakery, drinks to go area, and hot food section – with the latter emerging as the most profitable part of the store, bringing in £1,300 a week on a 38% margin.
Overall, the store has increased its range by 18%, including more Co-op own label products, despite the store size staying the same, which had helped to bring in an “influx of new customers” and “exceed our competitors’ offers”, the retailer said.
Bestway Wholesale MD Dawood Pervez said: “We are continuously investing in store formats to help our retailers redefine their stores to meet today’s shopper missions. Our dual-branded stores are leading the way and we are delighted to work with such forward-thinking partners – the results are testament to the dedication and commitment of Vagadia.”
Bestway retail director Jamie Davison added: “Vagadia is a shining example of the entrepreneurs that are leading convenience. The results the store has achieved demonstrate our strengths in working closely in partnership with our retailers to deliver formats that drive both growth and profit for the retailer.”
Bestway has now completed 10 of the dual-branded conversions, with a further 20 in the pipeline. The wholesale giant said it was planning to expand the concept and supply into areas of the UK within which Bargain Booze had not historically operated.