Convenience store chain Mills Group has laid out an ambitious plan to double its profits and increase its turnover by £30m in the next two years following a reorganisation and rationalisation of the business.
Profits were forecast to increase from £1m this year to £2m by 2011, while retail turnover would increase from £70m to £100m, said MD Nigel Mills.
The Nisa-Today's member was also aiming to become the number one multiple convenience store chain by 2011 and to recapture The Grocer Gold Awards' Independent Retail Chain of the Year Award, which it won in 2008.
"This is a huge change," said Mills. "We have reorganised and rationalised head office to make sure that the business is fit for purpose. The business has evolved over the past 23 years and when we get to a different stage we need to make sure we focus on the consumer."
As part of the plan, and to reflect Mills Group's move away from its CTN roots to convenience, the chain will focus on three product areas over the next three years. It plans to introduce a full bakery offer in each store by 2010, to improve the quality and value of its fresh produce, and to introduce a meat, fish and poultry offer that is comparable to Sainsbury's Local or Tesco Express.
Five new price-tiers will also be introduced: supermarket, which will be 10% more expensive than Tesco; high street, which will be 15% more expensive than Tesco; convenience; CTN; and city centre stores.
"We're going to be looking at the top 400 SKUs to make sure that they are comparable in price to the supermarkets, focusing on value and promotions," Mills said.
Mills added that some new departments had been created at its head office in Whitley Bay, and a number of existing departments had been developed, resulting in five redundancies. However, 18 new positions were set to be created.
"All this will help us become the number one multiple convenience chain in the UK," Mills said.
Profits were forecast to increase from £1m this year to £2m by 2011, while retail turnover would increase from £70m to £100m, said MD Nigel Mills.
The Nisa-Today's member was also aiming to become the number one multiple convenience store chain by 2011 and to recapture The Grocer Gold Awards' Independent Retail Chain of the Year Award, which it won in 2008.
"This is a huge change," said Mills. "We have reorganised and rationalised head office to make sure that the business is fit for purpose. The business has evolved over the past 23 years and when we get to a different stage we need to make sure we focus on the consumer."
As part of the plan, and to reflect Mills Group's move away from its CTN roots to convenience, the chain will focus on three product areas over the next three years. It plans to introduce a full bakery offer in each store by 2010, to improve the quality and value of its fresh produce, and to introduce a meat, fish and poultry offer that is comparable to Sainsbury's Local or Tesco Express.
Five new price-tiers will also be introduced: supermarket, which will be 10% more expensive than Tesco; high street, which will be 15% more expensive than Tesco; convenience; CTN; and city centre stores.
"We're going to be looking at the top 400 SKUs to make sure that they are comparable in price to the supermarkets, focusing on value and promotions," Mills said.
Mills added that some new departments had been created at its head office in Whitley Bay, and a number of existing departments had been developed, resulting in five redundancies. However, 18 new positions were set to be created.
"All this will help us become the number one multiple convenience chain in the UK," Mills said.
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