Buying a sandwich factory in Blackpool is just one way in which wholesaler James Hall is improving its offer to retailers and growing the business, as Peter Cripps reports


When James Hall & Co decided in June to take control of production of the sandwiches it ­supplies to Spar retailers it was in no mood for half measures. Spar's wholesaler for the north of England spent more than £1m buying a sandwich factory in Blackpool and seven lorries to help deliver the produce. In a further statement of intent, Hall launched its own brand of sandwiches under the Great Northern Sandwich Company moniker, a six-strong range of deep-fill sandwiches in addition to Spar's existing range of 24 own-label lines.

The radical move let Hall overhaul its food-to-go offering a category it believes will be key to future growth. "Some retailers have been able to double their sales through the new sandwich company," says retail director Peter Dodding. "We are already producing 10,000 sandwiches a day and the range is popular. Food-to-go is such a key area of growth that it was important we upped our game in this area."

Hall's retailers used to sell 37,000 sandwiches a week but that increased to 58,000 within weeks of the improved offer starting up, says Dodding. Although retailers are no longer refunded if they fail to sell the sandwiches, bringing production in-house will help retail customers increase their profits, he argues. Retailers can order whatever sandwiches they choose, not just those dictated by suppliers. They are also offered higher margins an increase of about 13% on the gross profit margin to compensate for the absence of a sale-or-return policy.

The integration of sandwich production is just one of the ways in which Hall is adapting its offer to respond to the changing face of convenience retail. The family-owned wholesaler, which began life in 1863 as a butcher, has significantly expanded its fresh produce offer in recent years.

In 1992 the business employed seven people in fresh compared with 70 today. The next phase of its development will see it deliver fresh and chilled produce to its retailers six days a week instead of the three times weekly it currently offers.

The Department of Health's Change4Life programme has only served to increase Hall's commitment to fresh, with Dodding taking a position on the programme's steering group. "Overall, food-to-go and fruit and veg are becoming increasingly important for c-stores to offer and we are doing everything we can to help them meet consumer demand," he says.

The strategy appears to be working. The business has increased its overall store numbers by 36 to 465 over the past year, a steady expansion that has given Hall the confidence to plan for further growth. It is fast outgrowing its 190,000 sq ft warehouse and is building a new 400,000 sq ft site at Preston. The entire HQ and sandwich factory will be transferred there when the depot opens in early 2011.

Another confident move from the wholesaler intent on keeping its offer fresh.