Independent grocer proves its possible to beat giants

Wednesday, 08 May, 2006 0

Independent grocer Jonathan James told the conference that he was proof that it was possible to take on big companies and succeed, provided you were prepared to innovate and build a reputation for customer service.

James has four independent groceries on petrol forecourts which collectively turnover 23 million pounds per year, despite the growing threat from supermarket giants like Tesco and Sainsbury’s.

He pointed out there were huge parallels between the grocery and travel industries. He works under the ‘Budgens’ brand to fight off the big companies, just as agents club together under consortiums to compete with multiples.

“I have to be part of the community to encourage people to use my shops,” he said. “So I sponsor cricket and football teams.

“We found out that elderly and disabled people felt intimated by the big petrol forecourts, so we held an ‘Elderly and Disabled Drivers’ Morning’, which we called ‘Blue Rinse Thursday’.

“We offer free home delivery and employ local people. That’s absolutely crucial because they can talk to people about local things.

“Gear yourself towards the community, because the big companies can’t do that.”

He said his staff offered a much better service than the chains. “Someone told me they got petrol from a supermarket and the woman just grunted at him. She said she didn’t need to say thank you because it said that on the till receipt!”

James said his innovations had got him invaluable press coverage.

“I paid nine thousand pounds for a dog washing machine,” he said. “I knew it was wacky, but I got Anglia TV and the BBC down. That would have cost thousands of pounds in advertising.

“I discovered local fishermen were up very early, so I got a maggot machine in one of the forecourts. It takes five thousand pounds a week and the fishermen also come in and by sandwiches and drinks.”

James said it was vital to ask local people what they wanted in their stores. “I also give local people grants, of one thousand pounds, to spend in the community.”

He said he got lots of support from Budgens, particularly in the form of promotions, but he added that it was vital they received the support back. Some 95 per cent of the good sold by his business are supplied by the company.

James advised agents to copy some of his innovations, to look after customers and to create a great atmosphere in the stores.

“Pay attention to detail. If you spill a drink, mop it up immediately. A grubby floor is a grubby store. What does a shoddy carpet say about you?”

He said agents should get rid of promotional cards in shop windows.

“I don’t know what those are about, but they don’t encourage me in,” he said.

Report by Jeremy Skidmore (www.jeremyskidmore.com)