Bestway Retail has reported record sales for its ‘store within a store’ concept in Bolton.
The dual-branded Costcutter and Bargain Booze store, which opened in March of this year, has reported a 40% increase in footfall and a 48% rise in sales.
Its chilled sales have doubled while profitability has increased by 3% margin points driven by a new hot Food-To-Go offer.
Store owner, Kersheaup Vagadia said the change was “remarkable”.
“The hybrid implementation of the new Bargain Booze concept in store has yielded remarkable results for our store. With two prominent brands displayed above our door, we’ve witnessed a significant increase in footfall, not only gaining substantial numbers of customers but also an average basket spend increase of £2.20 per customer.”
Kersheaup said they utilised Bestway Retail research and analysis to break down sales by category, examining the shopping habits and preferences of customers in order to improve the offering.
“We leveraged this valuable insight to design our ideal store, ensuring that each identified shopper need was addressed,” he said. “Planning encompassed the inclusion of a dedicated fresh bakery, a well-curated hot food section, a convenient drinks-to-go area, a wide range of fresh produce and chilled products, and an expanded product selection throughout the store to exceed our competitors’ offers. It has really opened our eyes to what our customers want and given us a new perspective of how to run our business.”
Areas that benefitted from this insight included the alcohol section, which has seen a 24% increase in sales and now averages £7,000 a week, bolstered by a new range of ales and ‘low/no alcohol’ section.
The ‘hot food’ section has become the most profitable department in the store, consistently achieving average margin of 38%. This success is reflected in weekly sales of £1300 which is a big increase from the previous store which was £150 per week.
Chilled and fresh produce sales have tripled, with fresh meat and ready meals outperforming showing a 270% increase, driven by Co-op own brand products.
As a result of this sales growth, the store anticipates recouping the initial £250,000 investment within 2.5 years.
Commenting on the store’s success, managing director of Bestway Wholesale Dawood Pervez said: “We are continuously investing in store formats to help our retailers redefine their stores to meet today’s shopper missions. Our dual branded stores are leading the way and we are delighted to work with such forward-thinking partners – the results are testament to the dedication and commitment of Vagadia”.
Retail director at Bestway Retail, Jamie Davison, added: “Vagadia is a shining example of the entrepreneurs that are leading convenience. The results the store has achieved demonstrate our strengths in working closely in partnership with our retailers to deliver formats that drive both growth and profit for the retailer.”
Bestway Retail has completed 10 stores to its ‘store within a store concept’ with a further 20 already in the pipeline. Due to the significant interest received, Bestway Retail said it is planning to expand the concept and supply into areas of the UK that Bargain Booze hasn’t historically operated within.