Costcutter refurb success depends on demographics

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The standout success promised by Costcutter’s Shopper First programme is limited to stores with certain demographics, say retailers who have refurbished their stores under the plan.

The scheme tailors a store’s appearance and range based on the age and buying habits of five customer profiles. 

Boston retailer Suenita Keshwara invested £150,000 in refitting her store under Shopper First a year ago.

“The majority of my customers are shoppers aged between 65 and 80,” she told RN. 

“As part of the refit, I added a coffee machine and contactless payment technology to appeal to a much younger crowd.

“It didn’t work as well as expected, however. This is a rural area, where customers don’t like change, and young people living here aren’t as receptive to the latest trends as those in the city. They don’t have the same income.”

In comparison, York retailer Mike Nicholls has seen chilled sales at his Costcutter grow 20% since joining Shopper First last month. “The store is based in a busy urban area, and our refit was tailored to catering for families and busy residents. 

“We’re offering a ‘Meal for Tonight’ at the front of the shop where customers can get a meat, a carbohydrate and a sauce for £5.

“Alcohol sales have also grown by 20% and we have added a television, which makes customers aware of the latest promotions.”

The comments followed Costcutter marketing director Sean Russell unveiling upcoming changes to Shopper First in September. Factors such as store location, shop size and the income of customers will be considered in the update next year.

Russell also pledged the programme will help retailers reach double-digit growth as Costcutter aims to have all 1,776 of its stores join by 2021.

By Alex Yau Avatar
By Alex Yau 01 Nov, 2018

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