Despite weaker sales performance in some of its smaller stores recently, Sainsbury’s revealed yesterday that it is planning to open between 25-30 convenience outlets per year over the next three years and roll out its new ‘Neighbourhood Hub’ format.
The group opened 15 c-stores last year and closed 9, taking the total to 813. However, the convenience division suffered a 9.4% fall in sales after many of its urban sites were impacted by reduced footfall. This was partly offset by better performance of stores in neighbourhood locations that benefited from customers shopping locally.
Sainsbury’s began rolling out its new ‘Neighbourhood Hub’ format last year following limited trials. The new outlets are a food-led extension of its existing convenience offer but in a much larger format (around twice the size of a standard Sainsbury’s Local). They offer a broader range of locally tailored products and services across food, beauty, clothing, seasonal and general merchandise.
There are five of these stores now trading with Sainsbury’s planning another 18 over the next three years. The company said they have proved “very popular” with customers and are delivering high returns.
NAM Implications:
- This type of initiative automatically occupies centre-stage in mults HQs.
- So NAMs getting in early with bespoke packages have to make an impact
- Your call…
