Following the article about the new Budgens store in Hawkhurst (The Grocer, October 25, p44) CACI has investigated the potential impact on Budgens and other surrounding retailers that the arrival of Tesco in that local market will have.
Tesco has opened a 17,000sq ft store in Tenterden, a small town served by a Waitrose and a small Co-operative store, which is fewer than eight miles away from Hawkhurst.
As would be expected in such a small town location, Tesco’s arrival is not going to break new records for high turnover takings. Indeed the store is likely to be in the bottom 25% of Tesco branded stores in terms of weekly sales, but for sales intensity, the store will rank comfortably inside the top 50% for the format.
The largely rural catchment does not reach any sizeable towns beyond Tenterden and is framed to the north by Sainsbury in Headcorn and by retailers in Ashford, including Tesco and Sainsbury.
The east of the catchment runs into the rural depths of Kent, while the south and west enter Budgens territory.
Budgens has a strong presence in this part of the south-east, providing the only grocery retail provision in the small markets of Rye, Battle and Hawkhurst. CACI’s analysis reveals that Budgens will hold up well in the face of the new Tesco, losing only £13,000 a week from its Hawkhurst store, and with little impact on the other two stores. Budgens is, in fact, protected by the rural nature of the catchment and slow drive-times in the area.
Waitrose has the most to fear in Tenterden. The factors that protect Budgens in the surrounding towns may make Waitrose vulnerable. Until now the isolated nature of Tenterden has allowed Waitrose to dominate.
The store is now about to see its share split with a powerful retailer and its weekly sales could be hit by as much as £278,000. Tesco is likely to gain a massive 38% of the local market share in combination with their stores in Ashford and Pembury, while Waitrose will be squeezed to just 9%. Sainsbury is also weak in the local area, and Asda and Safeway are virtually non-existent, falling some way behind Budgens which also registers a 9% local share.
Demographics often save the day for Waitrose, with strong loyalty from its more affluent shoppers. However, CACI’s analysis reveals that Tesco has a marginally better fit to the catchment than Waitrose.
Budgens’ fit is also good, and not far behind that of Tesco and Waitrose.
Tesco has opened a 17,000sq ft store in Tenterden, a small town served by a Waitrose and a small Co-operative store, which is fewer than eight miles away from Hawkhurst.
As would be expected in such a small town location, Tesco’s arrival is not going to break new records for high turnover takings. Indeed the store is likely to be in the bottom 25% of Tesco branded stores in terms of weekly sales, but for sales intensity, the store will rank comfortably inside the top 50% for the format.
The largely rural catchment does not reach any sizeable towns beyond Tenterden and is framed to the north by Sainsbury in Headcorn and by retailers in Ashford, including Tesco and Sainsbury.
The east of the catchment runs into the rural depths of Kent, while the south and west enter Budgens territory.
Budgens has a strong presence in this part of the south-east, providing the only grocery retail provision in the small markets of Rye, Battle and Hawkhurst. CACI’s analysis reveals that Budgens will hold up well in the face of the new Tesco, losing only £13,000 a week from its Hawkhurst store, and with little impact on the other two stores. Budgens is, in fact, protected by the rural nature of the catchment and slow drive-times in the area.
Waitrose has the most to fear in Tenterden. The factors that protect Budgens in the surrounding towns may make Waitrose vulnerable. Until now the isolated nature of Tenterden has allowed Waitrose to dominate.
The store is now about to see its share split with a powerful retailer and its weekly sales could be hit by as much as £278,000. Tesco is likely to gain a massive 38% of the local market share in combination with their stores in Ashford and Pembury, while Waitrose will be squeezed to just 9%. Sainsbury is also weak in the local area, and Asda and Safeway are virtually non-existent, falling some way behind Budgens which also registers a 9% local share.
Demographics often save the day for Waitrose, with strong loyalty from its more affluent shoppers. However, CACI’s analysis reveals that Tesco has a marginally better fit to the catchment than Waitrose.
Budgens’ fit is also good, and not far behind that of Tesco and Waitrose.
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