UK-based retailer M&S is considering the roll out of stand-alone Simply Food stores across western Europe. At a two-day investor conference in Istanbul this week, group CEO Marc Bolland said the retailer is considering opening the food-only convenience stores in Paris, and "teaming up with a partner to launch it in one or two other countries.”
The retailer believes the Simply Food format could be a success with its French neighbours based on the "strong demand" for its traditional British food products in its two Paris department stores. M&S opened a store in Paris in November 2011 after exiting the French market a decade earlier. While there is no time scale available for the opening of Simply Food branches in France, the company said it was looking at "strategic locations, such as transport hubs".
The expansion of the Simply Food banner across the continent would be predicated by the need for same-day delivery of fresh food products from its UK food distribution centres, meaning the roll out would be limited to western Europe. Bolland said, “Because the food is being delivered fresh every day from the UK, the locations would all need to be close enough for same-day deliveries by our trucks.”
The banner uses a franchise model in the UK, which could be an option for its extension across Europe.
The success of M&S stores in China was not detailed, although there has been speculation that its 14-Shanghai-based stores have missed sales targets. Commenting on the Chinese arm of the business Bolland said, "We will continue to open wholly-owned stores over the next three years to take us to between 15 and 20 stores and we will then take stock of the business, i.e. where we go next in terms of the business model to grow in China, so franchise, wholly owned or joint venture." (7 Feb)
© 2013 - ESM: European Supermarket Magazine by Gordon Hunt
