UK Spar stores will start selling the company’s successful European value range, “S Budget”, from the end of the month.
The 33-strong economy range of everyday essentials, which includes chicken fillets, baked beans, energy drinks, bleach and washing up liquid, rolls out to stores nationally from 29 August, replacing the red and white price-marked Extra Value range.
Spar UK said it was already working on plans to extend the range, which within two years of its 2008 launch in Austria as a 45-strong range had quadrupled to 200 products.
“This range has been developed to drive down the cost of local shopping, and encourage customers to do their top-up shopping at Spar,” said Susan Darbyshire, Spar UK brand director. “We want to show shoppers they can find value for money as well as convenience in our stores.”
The launch will be supported by a £1m push that includes national and local radio adverts, a digital campaign, door-drop leaflets and PoS material.
Spar said the PoS kit would help retailers “create theatre in stores” with hanging boards, posters and shelf-edge enhancers.
It promised that retailers would receive a generous margin “to ensure the range delivers on profit as well as sales and customer satisfaction”.
However, branding agency Dragon Rouge warned the design could be a tough sell in the UK. “S Budget makes lots of sense from an international consistency angle, but it’s a tough fit with the UK consumer,” said Kate Waddell, managing director of consumer brands.
“S Budget lands hard with the budget message. With consumers feeling the pinch, they often prefer not to have this aspect of their budgeting ’advertised’ in their shopping baskets.”
The Extra Value range was launched in January 2009 as part of a massive own-label overhaul by Spar its biggest initiative since Eight Till Late.
In the second full year of trading in Austria, S Budget posted a 111% uplift in sales.