Budgens boss Mike Baker believes the grocer’s c-store rivals are “a little bit afraid” of its new-look concept stores.
The convenience specialist has re-opened its flagship Crouch End store following an extensive three-week refit, following similar refurbishments at stores in Broadstone and Byfleet.
Working under turnaround specialist Peter Ridler, the boss of parent company Musgrave, Baker said Budgens is placing a “big focus” on reshaping its proposition to meet the needs of local communities.
He insisted that the early signs have been “encouraging” and footfall and sales have both risen in the Broadstone and Byfleet shops.
The 8,600 sq ft Crouch End store, which is one of the largest in the Budgens estate, has undergone a similar “six-figure” revamp with low ceilings removed, aisles widened and distinctive shopping areas added to house meals for now, food to go and basket staples for the ‘top-up’ shop.
The fresh new look also includes wooden signage, a patisserie area, a breakfast and salad bar, a grind-your-own-coffee station and a small seating area with free Wi-Fi.
Baker said the “artisanal twists” and partnerships with local suppliers including The Real Pie and the nearby Dunn’s Bakery have worried the Crouch End store’s direct competition, which includes Tesco, Waitrose and M&S.
Changing market
He told Retail Week: “I don’t think it’s about keeping pace with them because the market is changing and everyone’s reacting to the market. That’s what we’re doing – we’re reacting to, at a macro level, consumer trends, but also on a local level as well.
“The customers of Crouch End have a very different set of needs and expectations to the customers in Broadstone and Byfleet, so we wanted to bring it into a high street like Crouch End where there is competition because we think we have got something different.
“It was very interesting to see the store managers of our local competition walking around here and leaving looking a little bit afraid.
“For me, convenience isn’t just the location of the store, it’s the proposition and the offer. If we are to be convenient, we need to really understand the local community’s needs and that’s where we are different.
“Yes we are seeing increased competition, as the entire market has on a local level, but it’s how you react to that and how you respond to customers’ needs on a local level. Our unique business model in Budgens allows us to do that.”
Baker added that Budgens will be testing its new concept in two more stores – a forecourt site and a “mid-size metropolitan store” in London – as it bids to make convenience retailing “a bit more interesting.”
“It’s all part of the evolution, the learning, the testing, the development,” Baker said.
“It’s about developing a concept, testing it, proving it and then in time making a better and a bigger Budgens.”
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