Bestway Wholesale is to give its unaffiliated customers early ordering on promotions to recognise non-symbol group retailers as a vital part of its business.
Managing director Dawood Pervez told RN that the wholesaler launched a ‘presell’ service in November that helps retailers improve stock management by providing promotional information one month in advance. “Many talk about symbol groups and franchise being the future and they are still important areas. However, there are still far more unaffiliated stores in convenience.
“The presell service for unaffiliated retailers enables them to plan their cash flow earlier,” he said. “It also allows us to ensure we have the adequate amount of stock available for the best availability. We want to take the effort away for retailers.”
Bestway has 40,000 unaffiliated customers. More than 3,500 are part of its Xtra Local retail club, which offers unaffiliated retailers exclusive promotions. Pervez claimed its Best-one symbol group now has 2,100 stores, while the Bargain Booze chain has 700 stores.
According to Pervez, orders made through the presell programme have doubled within the first two months. Products offered to retailers using the service are also tailored to help them improve their profit margins. “You don’t want to offer unaffiliated retailers the same promotions or products as a symbol group,” said Pervez.
“Many of them want single quantities of products such as crisps or soft drinks because they make higher margins per unit.They’re in small stores in urban areas where many purchases are impulse, and not on mulltipacks.”
The service comes as Bestway restructured its senior management team to help it focus on its Xtra Local retail club. “We’ve split responsibilities between some of our staff, who will solely be responsible for the growth of our retail club,” Pervez said.
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