Parfetts’ Go Local Extra symbol group is enjoying a period of growth, with 20 fascias installed so far this year and another 50 currently being converted.
The group gives retailers a package that is both simple and flexible.
As Parfetts is an employee owned business, the profits are ploughed back intro the business, meaning the symbol group’s promotional offers are industry leading.
Steve Moore, Head of retail at Parfetts, tells Wholesale Manager his plans to grow the Go Local Extra estate.
How many stores does Go Local Extra have now?
We currently sit at 1000 stores in total across our estate which includes Go Local extra, Go Local and The local.
How quickly is Go Local Extra growing – how many stores are joining the group each year?
The Go Local Extra fascia has seen significant growth already this year with 20 installed so far this year and another 50 in the process of being converted, we also have another 80 across our other brands that are due for installation.
What targets do you have for growing the Go Local Extra estate?
We have set a target for 200 stores to the end of 2022 of which at least 50% will be Go Local Extra.
What are the benefits to retailers of joining Go Local Extra?
We offer retailers a really flexible package based on their store location, size, current turnover and growth potential. The beauty of our model is its simplicity, all we ask of our retailers is to support our industry-leading three weekly promotional programme.
We will provide the leaflets and distribution free to drive consumer awareness and consequently footfall to the store. I believe too many symbol groups complicate their offer with surcharges for delivery and potential rebates for following in some cases an onerous set of qualifying criteria.
What promotional offers can Go Local Extra retailers run?
We offer industry-leading offer for our retailers in terms of the margins we offer on promotion when viewed against our competitors. As an employee-owned business, we can plough profits back into the business to the benefit of our retailer partners. We also hold regular forums with our retailers to ensure we are providing them with promotions that will engage the local community.
How many products are in the Go Local own brand range? Are there any plans to expand the range?
We currently have 150 lines with another 100 in the pipeline. We recognise that own brand is an important part of our retailer sales mix and even more so now as consumers feel the cost of living squeeze.
Which of the product categories within the own-brand range are in growth and which are more challenging?
We have seen some great growth in our own brand soft drinks and snacks with our £1 bagged sweet range delivering over 40% margin. We work hard to promote the range to retailers and consumers and ensure that range and price point meet the needs of both. It means that the whole range performs well for us. But it is important to keep learning and we now know that products such as tea, where prices are relatively low and brand loyalty is high, present more challenges.
How has the wholesale industry changed in recent years?
From a Parfetts perspective, it has been a period of phenomenal growth as independent retailers hunted for stock during the first lockdown. Unlike our competitors, we decided to continue running promotions, and this resonated with our retailers and created a huge amount of loyalty toward Parfetts. We have also seen our online business grow to 40% of total sales without diluting our cash and carry customer base.
How is Parfetts performing as a business overall? Is turnover growing?
Turnover has continued to grow, and we have ambitious growth plans for this financial year.
How digital is Parfetts as a business, and do you offer any IT support for your members e.g. ordering apps, online support, delivery tracking?
We have recognised the increased importance of digital channels to enhance our offering to existing retailers and grow our customer base.
Parfetts has developed an industry-leading order capture system that can be accessed in website or app format depending on customer preference. These important portals will be continually updated to ensure they continue to lead the way. In addition, we offer all our customers a full support package to ensure they get the most out of the system and quickly solve any issues they might encounter. Service and approachability are key elements of our DNA, which carry through to our online platforms. So we ensure retailers have access to the digital team.
We work hard to mirror our in depot experience online and provide retailers with access to our social media campaigns – where we give them access to all our assets, run their feeds for them or provide bespoke assets for deals, events and activities they run themselves.
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