Somerfield’s sale of its Kwik Save brand has left traders in Liverpool nervous, with several million pounds worth of trade potentially hanging in the balance.
Liverpool market, which has a historic connection with the retailer, founded in Prestatyn, North Wales, still maintains a healthy business with the company, said Geoff Wells, president of the market’s Wholesale Fresh Produce Association.
He said the decision by Somerfield to sell the brand and 171 stores to a band of businessmen called BTTF had unsettled traders.
“There’s a fair bit of trade done on the market with three or four of our members, and that’s worth several million pounds. At the moment, no-one knows what is going to happen, it all depends on what BTTF decide to do with the business.”
Somerfield’s decision to sell the brand follows Kwik Save’s repeated poor performance in recent years. Industry speculation estimates the business to have lost several million pounds over the last four years, despite considerable investment.
The retailer will retain 102 of the Kwik Save stores and is intending to rebrand them to its Somerfield fascia. The remaining 77 outlets have been sold off to rival retailers, thought to include discount chains Netto and Aldi.
Meanwhile John Dennis of John Dennis Fresh Produce, a franchisee in Kwik Save stores, said the move was unlikely to have any major impact on the fresh produce sector.
His company will continue working with the retailer, despite the changes. “We shall continue to have a substantial retail trade, but it will be reduced from what it currently is.”
Under the shake-up, he said his business would be losing 54 outlets, however, he said he had been kept informed of the plans and said he was “very comfortable” with the situation.
He added he would continue to hold an interest in the stores Somerfield is retaining as well as the BTTF owned outlets.
Paul Niklas, BTTF chief executive, announced the deal: “Today marks a recommitment to the Kwik Save brand and its already strong local presence.
“We will, over time, be refreshing the store image while maintaining the existing offer of quality branded products at competitive prices.”
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