U.K. Convenience Retailer Tests Online Offer

The Co-operative Group is developing an online sales platform that it will begin testing by year’s end.

August 26, 2013

UNITED KINGDOM – The Co-operative Group, the fifth-largest food retailer and a leading convenience store operator in the United Kingdom, is investigating "a number of digital solutions" as it looks to expand into the country's GBP6.5bn (US$8.7bn) online grocery market, reports just-food.com.

"We're currently looking at a number of digital solutions to provide an online grocery offering, which will complement our strong community food retailing position," Steve Murrells, the company’s CEO, told the news source.

"We recognize that the online grocery market is a rapidly growing channel, which provides a significant opportunity for us as, primarily, a convenience retailer. We have trials planned later in the year to help us identify the best convenient solution to online food retailing," he added.

Murrells, who led convenience chain One Stop while at Tesco, is employing a number of strategies that are “tackling the attack on the convenience market” by U.K. grocers that have aggressively entered the small format retail space, including Sainsbury’s Local, Tesco Express, Spar, Costcutter, McColls and Musgrave, reports Retail Week.

Retail Week adds that Murrells’ “first initiative to fend off rivals hungry for convenience share” has been to improve the Co-op’s proprietary brand offer, including the new Loved By Us line of products. “We are bringing in an army of food developers to help us to bring wonderful products. We have to build that credibility with them,” he said, adding, “We are putting delicious food at the heart of what we do.

In addition to 130 new stores planned for 2014, Murrells said the Co-op is rolling out its Fresh Format, a store design that puts “the onus on fresh food through improved ranges, navigation and merchandising,” writes Retail Week. “It moves us into hero areas where we believe people will come to us because we offer as good or better than the best,” he said.  

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