Safeway management wanted to exploit the demand for home meal replacement and top-up shopping in London’s busy convenience food sector. The initiative presented an opportunity to emphasise Safeway's “fresh fast food” credentials. Working with their Store Development and Marketing team, we developed convenience food formats for St Kathrine’s Dock 30,000sqft store and the High Street Kensington 11,500sqft store.
By increasing the footage of the fresh food departments, Safeway increased sales by 20% to 30% week on week. The frequency of visits to the store also increased from 28,000 customers to 35,000 customers a week.
When exploiting consumer trends in convenience food retailing - we offer retailers format design solutions.
Consumers expect much more from their retailers, such as health benefits, customization, on-the-go consumption and premium convenience products.
Our convenience store concept comprised four zones: “Fresh to Go”, Personal Indulgence, Everyday Essentials and Browser. Each zone has its own ambience and feel. The “Fresh to Go” sub-brand occupies 25% of the store, offering fresh perishables such as Hot Wok, Pasta, Hot Rotisserie, Fresh Pizza, a Sandwich bar and Patisserie and Bakery.
The pizza section has been very big in terms of sales and profit margin. The department achieves average sales of £5,500 per week. The ‘hot wok’ is also very popular, producing sales of £3,500 - £4,000 weekly. The sandwich bar also takes around £4,500 a week.
The good news about having a sandwich bar in-store is if you run out of pre-packed sandwiches, you can make them, pack them and put them on the sales floor as well.
The biggest contributor to the principle of success is the change in peoples shopping habits and they are moving very much towards fresh food. Safeway was probably one of the first retailers with a concept that captured a market where shopping habits changed from consuming just ambient foods/frozen foods to much fresher focus. We have a big swing in terms of moving from being 45% fresh foods to 65% fresh foods. At High Street Ken – we are looking at 60% on fresh and 40% on rest. Fresh is more profitable.