I fancy that I may have sewn this particular seed by suggesting "what if…"
There's a rumour spreading fast around Rhuthun/Ruthin that the Station Road Co-op is about to close and re-open as either an Aldi’s or a Lidl's. I've lost count of the number of people who believe that this is to be the case.
Oh, if only that were true.
Such a move would undoubtedly be welcomed. A discount supermarket chain would be most appreciated in Rhuthun. Not only would it be an antidote to too-big-for-its-boots Tesco, it would actually offer some real competition and help the hard-pressed shopper with some cheaper prices. A discount chain's popularity would see queues in the store again, just like at pre-Tesco Co-op. If you need evidence of discount outlets doing well, just consider Rhuthun's variety retailer, B & M Bargains. In terms of food, B & M is a limited assortment concept retailer with fewer lines that result in a considerable price advantage over both conventional supermarket neighbours. Overall, here is a store that takes more in a week than the Somerfield it replaced took in a month.
In terms of Aldi's or Lidl's taking over the Co-op, I believe it ain't gonna happen. Here's the evidence. Why invest at the Co-op in three brand new, self-service tills? These aren't cheap. OK, they can be moved to another store at need but surely, providing such an asset is bonkers were the supermarket to change hands. Admittedly, the self-serve checkouts have never yet worked since they appeared overnight on 18th/19th December but the intent to modernise is there.
Similarly, why begin a Co-op free home delivery service from Rhuthun (commencing November 10th) if the store is about to close? This is something unique to Co-op that cannot be matched by Tesco. You do need to visit the Co-op store to pick your products but the Co-op will pack and send them to your home. It may not be as useful as Tesco's home delivery (that requires no more energy than clicking with your index finger) but it will appeal to some who prefer to select their purchases themselves but may struggle with the load.
In spite of these two features, there is evidence that would suggest the Co-op Rhuthun is struggling. The Co-op may be holding its own—just—but it isn't doing much more than that. How often has Tesco been packed and the Co-op increasingly empty?
The result, over the past five years, is that the Station Road Co-op has progressively been de-ranging. This began after the refurbishment of Spring 2009. The variety and choice of product has diminished and this is evident across all departments. It continues relentlessly so, for example, while whole departments have been downsized (e.g. beers, wines, spirits, an early causality during the first wave of de-ranging) so others continue in subtle ways e.g. in the last six months Rhuthun no longer stocks one particular variety of pizza within its range. Such things are the tipping point between support for the ethically minded trader and desertion to Tesco to find what you need.
There's now a considerable amount of dead space within the store, as room for gondolas, point-of-sale displays and other merchandising aids have shrunken. This does create a nicely open, uncluttered environment but given the supermarket's square footage, it is also plain to see a contraction, and a considerable one at that. The Station Road site was once triumphed in the 1980s Rhuthun revival plan as an attractor, a supermarket of sustainable size for the town. It's now fast becoming less of a supermarket and more of a convenience store that actually isn't particularly convenient any more, given the competition some 500 yards away.
And, then there's the issue of so-called "insult pricing". The Co-op recognises that it is pricing key staples above its rivals with special offers and has tried to close the gap but the disparity remains in milk, diary, bread and other everyday groceries. An example might be a 125g pot of yogurt from theEast European-operated local family run Llaeth y Llan dairy, which is 3p or seven per cent more expensive in the Co-op than Morrison's Dinbych. Tesco's price this winter has shot up 5p for the same item, to 50p but Tesco is the only one selling 450g pots at £1.75 (equivalent to 48p for 125g) or £2.50 for two (35p for 125g).
The result is that more and more Rhuthun people are going to Lidl in Dinbych; or Aldi and Lidl in Yr Wyddgrug/Mold. And, of course, that means they visit town centres other than Rhuthun for the remainder of their purchases.
It's sometimes difficult to get parking spaces in the Yr Wyddgrug discount stores, as natural Tesco shoppers are forsaking that chain. Note that those heading for Yr Wyddgrug, whether from Yr Wyddgrug itself or Rhuthun, aren't abandoning Tesco for the Co-op off Yr Wyddgrug's Ruthin Road/New Street. To think that one of the reasons why planners from 2006 welcomed Tesco into Rhuthun was so it would help support the local economy such that people in Rhuthun would no more need to leave the town to do a decent sized grocery shop.
The irony.
So, while the idea of a Lidl or Aldi coming to Rhuthun might be appealing on so many fronts, it rather appears that the Co-op will limp on.
Meanwhile, announced in the press this month was the resurrection of the project to transform the former KwikSave site at Townsend, Dinbych. Once a farsighted development that was to be anchored by none other than a larger-than-Rhuthun Tesco, the recession sank the property speculator. And Tesco has all but pulled out of new developments, following its own issues. Now, we understand that Home Bargains is a likely tenant but it's also rumoured (though unconfirmed) that another discounter, Aldi, is interested. When mentioned to people in Rhuthun, they seem enthusiastic about such a move—and wish Aldi were coming to Rhuthun.
This blog was once concerned that the Dinbych Tesco-focused development with its attendant fringe stores might further threaten shopping in Rhuthun. Given the new strength of the discount sector, an Aldi-Home Bargains axis would no doubt prove as formidable.
As if to emphasise the point, nearby Dinbych Lidl will close temporarily tomorrow till February 19th 2015 [update—till March 12th] to complete a customer-focused facelift that will see a new false ceiling, new flooring, changes to shelving, better windows, a customer lavatory and CCTV-covered time-restricted parking. Like the 1988 Gateway and Somerfield before Lidl, the bloated nature of the place and the unappealing late 1980s design make for a rather depressing store and it certainly trades indifferently but the change of image will welcome new customers, including those from Rhuthun, in a way Somerfield never could.
And remember that cheap food comes at a price: if you believe media reports, Lidl's treats its staff quite poorly. In Dinbych, the entire Lidl staff contingent will all be laid off tomorrow till the store reopens. Such is the harsh reality of working for a discounter.
There's a rumour spreading fast around Rhuthun/Ruthin that the Station Road Co-op is about to close and re-open as either an Aldi’s or a Lidl's. I've lost count of the number of people who believe that this is to be the case.
Oh, if only that were true.
Such a move would undoubtedly be welcomed. A discount supermarket chain would be most appreciated in Rhuthun. Not only would it be an antidote to too-big-for-its-boots Tesco, it would actually offer some real competition and help the hard-pressed shopper with some cheaper prices. A discount chain's popularity would see queues in the store again, just like at pre-Tesco Co-op. If you need evidence of discount outlets doing well, just consider Rhuthun's variety retailer, B & M Bargains. In terms of food, B & M is a limited assortment concept retailer with fewer lines that result in a considerable price advantage over both conventional supermarket neighbours. Overall, here is a store that takes more in a week than the Somerfield it replaced took in a month.
The result, over the past five years, is that the Station Road Co-op has progressively been de-ranging. This began after the refurbishment of Spring 2009. The variety and choice of product has diminished and this is evident across all departments. It continues relentlessly so, for example, while whole departments have been downsized (e.g. beers, wines, spirits, an early causality during the first wave of de-ranging) so others continue in subtle ways e.g. in the last six months Rhuthun no longer stocks one particular variety of pizza within its range. Such things are the tipping point between support for the ethically minded trader and desertion to Tesco to find what you need.
There's now a considerable amount of dead space within the store, as room for gondolas, point-of-sale displays and other merchandising aids have shrunken. This does create a nicely open, uncluttered environment but given the supermarket's square footage, it is also plain to see a contraction, and a considerable one at that. The Station Road site was once triumphed in the 1980s Rhuthun revival plan as an attractor, a supermarket of sustainable size for the town. It's now fast becoming less of a supermarket and more of a convenience store that actually isn't particularly convenient any more, given the competition some 500 yards away.
And, then there's the issue of so-called "insult pricing". The Co-op recognises that it is pricing key staples above its rivals with special offers and has tried to close the gap but the disparity remains in milk, diary, bread and other everyday groceries. An example might be a 125g pot of yogurt from the
The result is that more and more Rhuthun people are going to Lidl in Dinbych; or Aldi and Lidl in Yr Wyddgrug/Mold. And, of course, that means they visit town centres other than Rhuthun for the remainder of their purchases.
It's sometimes difficult to get parking spaces in the Yr Wyddgrug discount stores, as natural Tesco shoppers are forsaking that chain. Note that those heading for Yr Wyddgrug, whether from Yr Wyddgrug itself or Rhuthun, aren't abandoning Tesco for the Co-op off Yr Wyddgrug's Ruthin Road/New Street. To think that one of the reasons why planners from 2006 welcomed Tesco into Rhuthun was so it would help support the local economy such that people in Rhuthun would no more need to leave the town to do a decent sized grocery shop.
The irony.
So, while the idea of a Lidl or Aldi coming to Rhuthun might be appealing on so many fronts, it rather appears that the Co-op will limp on.
And remember that cheap food comes at a price: if you believe media reports, Lidl's treats its staff quite poorly. In Dinbych, the entire Lidl staff contingent will all be laid off tomorrow till the store reopens. Such is the harsh reality of working for a discounter.