Premier’s store of the future format to increase gross profits

Premier's new store of the future format will push gross profits up to 30%, according to the symbol group's brand director Martyn Parkinson.

Speaking at the first store to launch under the scheme, Jitinder Singh Punian's Premier Hull Victoria Dock store, Mr Parkinson outlined the strategy behind the refresh.

"Providing the store services customers want alongside great value on basics delivers fantastic footfall. When combined with new high profit on return sections, such as quality coffee, local produce and the Premier Deli range, which has a POR of up to 75%, we can increase the store's overall profits," he said.

Mr Punian said the store's "perfect ranging" was delivering store profits of 23%, four percentage points higher than his existing Premier store in the town." He is also receiving a 4% rebate on orders.

The model is delivering sales of 100 meal for tonight deal, 600 coffee cups and 525 sandwiches per week. With other new sections including protein & free from, vegetarian frozen, slush and local bakery goods generating £100, £300, £500 and £350 per week respectively.

Describing the move towards food to go and other high-return sections, Parkinson said: "This approach will be the new normal for our industry. I think 25% is the new 20% when it comes to gross profits. Within 12-18 months I believe we'll be looking at 30% from the new model. If costs continue to rise, 30% will be what it takes to survive and thrive."

Car and bike parking and locks, a dog water bowl and tie up point, pram and wheelchair access, in-store seating, WiFi, a free-to-use ATM and customer power points were also a priority in drawing a diverse audience to the store, according to Punian.

Making space for the new features confectionery and news and mags have been cut back, while tobacco is now under the counter.

Read more: Jitinder Singh Punian knows that even with no competition, you have to be competitive