Double vision

Musgrave territorial manager Trevor Cannon and retailer Kieran Cotter outside his newly revamped c-store in Carrigaline which joined the Daybreak brand just last month

As competition heats up within convenience, retailer Kieran Cotter explains why he decided to convert his two independent c-stores in Co Cork to the Daybreak brand.

People

14 April 2010

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Owner: Kieran Cotter

Daybreak Carrigaline
Kilmoney Road
Carrigaline
Co Cork
Size: 2,000 sq ft
Staff: 12

Daybreak Kinsale
Eastern Road
Kinsale
Co Cork
Size: 12,00 sq ft
Staff: 12

Intense competition within the convenience store market has become palpable over the past year. Value-for-money is now a consumer preoccupation that any retailer can only afford to ignore at his or her peril. This is something that Kieran Cotter – an independent retailer for 11 years – knows well. It’s part of the reason why he decided the time was right to take the plunge and bring his two independent County Cork convenience stores, in both Kinsale and Carrigaline, into the Daybreak group.
Although joining a symbol group was something Cotter had been considering, and indeed discussing with Musgrave for “quite a while,” he notes that the current business climate helped cement his resolve. “At the moment the business is more competitive out there and it’s better and easier to get stuck into it and get [the conversion] done. Better prices and better service are available.”

Full benefits

The fact that while an independent, Cotter already traded with the Musgrave Group and sourced “almost everything” from the wholesaler, meant that the change wasn’t as dramatic as it might otherwise have been. In saying that, he has nevertheless been impressed with the time saving benefits a full alliance can deliver.

Daybreak territory manager Trevor Cannon points out that Daybreak’s support package gives the retailer access to “a full marketing team, an HR department, and IT support,” alongside continuous support and advice. “It will definitely ease the workload,” agrees Cotter. “It’s the first time I’ve had a direct link from the tills to Musgraves’ head office and I can see the benefits already through live and updated pricing every week. With prices updated once a week, you’re right on top of your margins, and that’s one of the major pluses.”

A good look

The Daybreak branding and modern appearance also won Cotter’s favour. “The new image is excellent as well so that alongside the overall package is what swayed me,” he notes. Customers have already commented favourably on the stores’ new look, which he says made the potentially stressful process of converting two stores at the same time, feel like a worthwhile task. With both stores still trading throughout the renovation process, he concedes he had a hectic few weeks. The renovation at his Kinsale store, which has been open eight years in all, was finished in February, and from there it was “straight on” to revamping the Carrigaline store, which has currently entered its ninth year of trading. “But when you can see the product at the end of the day, you can see it’s all well worth it,” he says. “Even from a very early stage, the compliments from customers have been great. When you hear that, it definitely spurs you on.”

Cotter was especially pleased to receive such positive feedback, considering the many hours of thought that went into designing the new layout of both stores. Showing his independent retailing spirit is still fully intact, he admits: “I had my own ideas alright. But our thoughts [with Musgrave] were fairly similar in the end, and when we had a look around and talked and thrashed it out we came to the same conclusions.” The finished design now includes some attractive community-focused touches such as a lime green notice board beside the entrance which asks customers: “Have you got something to say?”

Valuing value

Shoppers have also been pleased with both outlets’ value proposition. “The monthly promotional cycles are very strong,” says Cotter. “There’s also the [own brand] Musgrave Good Value range which is incredibly strong as well, and priced in comparison to the discounter stores.” Cannon agrees that a strong own brand range is an appealing draw during the current economic climate. “In the market we’re trading in at the minute, stores need to be pro-active in terms of what they’re doing in value, and the introduction of the Good Value range is highly competitive.” And although Good Value lines are dispersed throughout the store, they are clearly flagged on shelf, with signs which highlight how much consumers can save by purchasing these lines, compared to the brand leader. For example, at €0.59 for a 2L bottle of Cola, customers can save 70% by opting for the Good Value offering over the brand leader.

Customers can also find produce in store from local suppliers such as O’Mahoney’s fruit and veg. A broad range can also be found at both shops’ deli counters, although Cotter says he made a conscious decision not to deviate too much from traditional deli favourites. “There’s a wide range of product out there, but we keep it to what’s necessary and what customers look for. We don’t go off on too many noodle or pizza tangents; they don’t really work everywhere.”

Breakfast roll lives on

Contrary to popular opinion, Cotter believes the eponymous ‘breakfast roll man’ has not yet met with an unfortunate demise. “Breakfast roll man is still around all right, there might not be as many as there used to be, but he’s definitely still around.”
And Cotter is determined to drive sales not just from breakfast roll aficionados, but from his strong passing trade. Fortunately, both his stores are very well located in this regard. His Carrigaline store is the only forecourt situated on its side of the town, while his Kinsale store is the only filling station on the town’s main road. Another positive omen is that Cotter has a good team of staff behind him to help ensure customer satisfaction remains high. Most of his team have been with him for three or four years while one staff member has been based at Carrigaline for five years, and he is therefore pleased with his relatively low staff turnover record.

Cannon agrees that with these core essentials currently in place, right now is where the work truly begins. “Working with Kieran, we want to get as much as we can out of each category, and make sure throughout the store that our value statement is right…We’re really looking at where we are and how we can bring the business forward into the future.” Certainly in the past few months, there has been much evidence of a forward-thinking momentum which appears to be standing the Corkonian retailer’s convenience ventures in good stead. n

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