MUSGRAVE ASSIGNS ALL BUDGENS STORES TO INDEPENDENT RETAILERS

18 January 2008

The Musgrave Group has announced that it achieved its goal to have assigned all Budgens stores in Great Britain to independent retailers by the end of 2007. Since the process began a total of 125 stores have been divested. The Budgens network consists of 177 stores.

• Total of 125 stores have been assigned
• Newly divested stores showing sales growth in excess of 25%
• Three Irish retailers have moved from Ireland to Great Britain to buy a Budgens store
• Budgens network now consists of 177 stores

The Musgrave Group first announced its intention to sell Budgens corporate stores back in 2004. The deadline to complete the process, originally set for December 2008, was subsequently brought forward to the end of 2007.

Three Irish retailers have moved from Ireland to Great Britain to buy a Budgens store and there have already been some outstanding successes with newly divested stores showing sales growth in excess of 25%.

Some of Budgens‚ independent retailers include:
• Jonathan James who bought the first divested Budgens store in Soham back in 2004. His business has gone from strength to strength and he was recently elected vice chairman to the industry body Associated of Convenience Stores (ACS).
• Ex Tesco retail director, Kevin Whalley, bought his first Budgens in Langley and now has two other Budgens stores in and around Berkshire.
• Guy Warner was the first Budgens retailer to carry the refreshed Budgens brand at his store in Moreton in Marsh. He owns four other Budgens stores in the area.

The crucial element of the programme was always to ensure that the right retailer was paired with the right store. By selling Budgens stores to independent retailers, the Musgrave Group aimed to partner with local entrepreneurial food retailers to meet the unique demands of the communities they serve with a distinctive blend of products and services and increased emphasis on local sourcing.

Commenting on the achievement, Daniel Quest, Head of Commercial Development, Musgrave Retail Partners GB, who led the team to transfer the stores, said, “We have built a network of progressive entrepreneurs working at the heart of local communities with unparalleled knowledge of local needs and regional trends. The fact that our retail partners are independent benefits both the store owners and the communities they live and operate in. Our retail partners are motivated by the fact that they own their stores and because they tend to live and work in the communities they serve, they can be especially responsive to local needs.”

“Positioning our stores to support local communities has proved to be successful with our retail partners and consumers. We are working with local producers under initiatives such as Taste of Anglia, Taste of Sussex, Taste of the West, and Heart of England Fine Foods to bring local products to local communities. In addition, some of our retailers have been recognised for their work in the community. For example, Nita Shah, a Londis store owner in Berkshire, England won the national Spirit of the Community award in November 2007 for her dedication to her local community.” Quest added.