Capper & Co. Ltd invests £2.6million into Red Dragon Guild
Capper & Co. Ltd, the South Wales based SPAR regional distribution company, has announced a ‘New Deal’ for SPAR members of the Red Dragon Guild.
The ‘New Deal’ has been designed to be totally supportive of SPAR retailers by being far more competitive and developing more profitable businesses. The ‘New Deal’ will realise an investment level in excess of £2.6 million to their Red Dragon Guild SPAR retailers.
Bryan Walters, Capper & Co. Ltd Sales Director and Red Dragon Guild Chairman, said the deal has been designed to provide maximum benefit for SPAR retailers in the Red Dragon Guild. “Many shoppers have managed their own inflation through choosing alternative products and being much more promotionally driven. Shopping habits have changed and we have developed a ‘New Deal’ for our retail membership which is about delivering a retail package that will totally support each member; will make them more competitive; and will actively invest in developing their stores to become more profitable businesses. We are supporting our retailers through some of the toughest trading conditions that some of them will not have experienced previously.”
The ‘New Deal’ has three key elements:
1) Reduction in cost prices on major branded products which are key lines in the convenience business
2) New additional profit opportunities
3) The ‘Rewards’ scheme
New lower cost prices
The first element of the new deal is lower cost pricing on over 100 key selling sku’s. These are big brands ranked either first or second in their sub-category and are the lines most often purchased by SPAR shoppers.
Walters said: “We have made a range of cost price reductions on over 100 sku’s. These deep cut key line prices range from 7 to 18 percent.
“This element of the package alone, involves an investment of over £500,000 in lower prices on key products to Red Dragon Guild SPAR retailers.”
In addition, with effect from week ending June 28, we will deliver further very significant savings on our milk prices.”
Super 10′s
The second element of the deal is called ‘Super 10′s. Super 10′s is a scheme for SPAR retailers to buy product in bulk – a “buy 10 get 1 free” deal on key lines, both on proprietary and SPAR Branded products.
“In line with the SPAR national promotional programme, we will be offering two products per promotional period (one proprietary and one SPAR Brand) commencing from June 4. These products will be over and above existing national deals and will enable our stores to promote even more competitively,” added Walters.
Rewards Bank
The last element of the ‘New Deal’ is a ‘Rewards’ Scheme that enables each SPAR retailer to build a “Rewards Bank Account” by earning £1 credit for every £100 they spend on fresh foods. The balance is accrued and the savings can be redeemed against many business development opportunities such as: refit costs, retail training courses, consumer communication material, marketing, any item of equipment and various retail information opportunities.
“This ‘New Deal’ focuses on investment in pricing, promotions and business development, the three key areas to combat the climate of recession that we currently trade in, and that design delivers the tools for all of our members to be more competitive and, ultimately, more profitable. To realise the scheme’s true potential requires maximum levels of participation from each and every SPAR Guild member. The very large investment that Capper & Co. Ltd is making in it’s retail members will amount, in total, to £2.6 million in the first year and it will mesh extremely well with other elements available in the SPAR Guild system to continue the development of the very successful independent Red Dragon Guild SPAR retailers we have within our membership,” concluded Walters.
