GROCERY STORE , RETAIL – Menu divides into three – bets on small shops with take away



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Menu launches two new store concepts. While one type of store may exclude products and a giant selection, other stores will be small and sell hot food and coffee.

SKØYEN (Nettavisen Economics): – We are sure that the wind is turning. We do not believe that customers have as many grocery stores as they are almost identical. We will be more different and more tailor-made, says Vegard Kjuus, Head of the Menu, for Nettavisen.

Menu, Gourmet Menu and Urban Menu are internal concepts for three different types of menu stores that will be launched in the future.

"We're still going to call it all together, Meny, but we go to stores in different directions to adapt to consumers," says Kjuus.

Big and small

Gourmet menu will be great, unique shops that will create extra "good dining experiences for customers". Gourmet shops will be able to focus on such things as exclusive products, vegetable dishes, and cheese and meat sales with a variety of maturation. One of Meny's largest stores, Meny CC Vest, will be the first driver of this concept.

Read also: Downturn for the supermarket chains

Urban Menu, on the other hand, will be found around large centers and in the center of large cities. They can be smaller than the smaller of the Menu stores today and can go up to 500 square feet. The smallest menu stores today are today about 700 square feet.

By decreasing the size requirements, it will be easier for the Menu to establish itself in city centers.

In addition to groceries, Urban stores will offer hot food and drinks to people on the go. It will be even easier to add lunch to the Menu.

– We believe that the future is the stores that are locally adapted to the customers who go there to an even greater extent. We have found that Oslo is carpeted by small shops with a small selection. We believe that the capital does not deserve and will add something more, says Kjuus.

Weak growth

The menu has long had problems with the establishment of new stores with the same rate as the low-priced chains Rema 1000, Kiwi and Extra, which started in the supermarket war last year.

However, the menu reports a strong growth later in the year and early 2019. Focusing more on hot food you can eat on the move rather than cooking at home, Meny sees an opportunity to further increase sales .

Read also: Low-priced chains start from the war of commerce – deceleration for Menu and Coop

– We see that people are happier with food, travel more, like to eat out and want good solutions. It is also where there is greater growth at the moment. While a mall may have a growth of maybe one percent per year, a restaurant or coffee shop may have a seven percent growth. It says something about the possibilities of the Urban Menu, says Kjuus.

He emphasizes that while the new Urban Menu stores may be smaller than today's Menu stores, they will still be far from a kiosk.

"Our starting point is to establish a smaller grocery store with good, fresh ingredients. This will also be a meeting point for online customers, where they will also have access to our entire selection, says Kjuus.



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15 Gourmet shops, 7 urban shops

Menu has identified about 15 menu stores that fit the Gourmet concept while seven of its nutritious stores fit like Urban Menu. These include the city of Oslo, which is the first to leave, as well as Bogstadveien and Greenland in Oslo, and the main center of Bergen, Støletorget and Lerøy in Bergen.

However, they are working to find new premises that can bring these two new concepts.

– We would like to have several Gourmet stores, while it is not easy to find the right place. These are great stores, we should have good parking facilities. When it comes to urban outlets, it's about finding good locations in cities, says Kjuus.

He emphasizes that the vast majority of Meny's approximately 200 stores will still be regular stores and possibly choose items from the Urban and Gourmet concepts.

Skeptical specialist

Grocery specialist Odd Gisholt of the Marketing Department is not convinced that Meny's new venture is intelligent.



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– I think especially that running smaller stores is expensive. One of them is accustomed to serving cheese and meat dishes in the Menu stores. Having the same level of service in smaller stores can be difficult, and it can be difficult to get the right people and get good returns, says Gisholt.

He also sees problems with various types of stores under the same concept.

"Then the customer will not know exactly what you get in a menu store. It can also increase bureaucracy, he says.



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He believes that Meny ended up in a spatat where both have to keep up with the difficult price competition against the low-priced chains, while at the same time they are a shop with a large selection.

– The profitability of the Menu has been a challenge. Let's see how they manage it in the future, "he says.

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