Kwik Save

Kwik Save is a British grocery retail brand associated for most of its history with low prices, limited ranges and utilitarian discount supermarkets. The business began in Wales in 1959 as Value Foods, founded by entrepreneur Albert Gubay. After studying retail methods in the United States and West Germany, Gubay and his colleagues developed a high-volume, low-margin model based on a restricted product range, favourable supplier credit and rapid stock turnover. The first store using the Kwik Save Discount name opened in Colwyn Bay, and the format expanded rapidly during the 1960s. The company changed its corporate name to Kwik Save Discount Group before entering the London Stock Exchange in 1970. Gubay sold the business in 1973. Kwik Save established a distinctive position at the inexpensive end of British food retail. Its traditional shops were generally small or medium-sized high-street supermarkets, often located in communities with below-average incomes. Stores were known for basic warehouse-style wooden shelving, narrow aisles, compact checkouts and a limited assortment. The chain also became associated with charging for carrier bags and with generic or own-label products. During the 1990s it introduced the No Frills range, which became an important expression of its value proposition and anticipated the simplified budget ranges later adopted by larger supermarket groups. The company expanded through acquisitions, including the purchase of 117 Shoprite supermarkets in 1994. Management later acknowledged that the business had concentrated too heavily on acquisitions rather than improving its existing estate, and more than 100 underperforming stores were earmarked for closure in 1996. In 1998 Kwik Save merged with Somerfield and became a trading division of Somerfield Stores. A proposed conversion of all Kwik Save stores to the Somerfield fascia was abandoned because the two formats differed substantially in layout, appearance and customer proposition. Some stores were refurbished, while Somerfield's Food Giant discount supermarkets were rebranded as Kwik Save. Somerfield sold the Kwik Save brand and 171 remaining stores in February 2006 to BTTF, an investment vehicle headed by Paul Niklas. The new owners attempted to revive the chain through marketing, refinancing and the acquisition of additional stores. The effort was undermined by falling sales, supplier-payment difficulties, stock shortages and increasingly intense competition. Asda, Tesco, Sainsbury's and Morrisons had developed their own value ranges, while Aldi, Lidl, Netto, Farmfoods and Iceland competed directly for price-sensitive shoppers. Kwik Save's market share fell sharply during 2006–07. The retailer closed dozens of shops in May and June 2007 and entered administration on 6 July 2007. Fifty-six stores were transferred to FreshXpress, but that successor also failed, entering administration in 2008; a later reduced FreshXpress incarnation ceased trading in 2009. The former supermarket estate was therefore largely extinguished. Costcutter subsequently relaunched Kwik Save in April 2012 as a budget-oriented fascia available to independently operated convenience stores supplied through its symbol-group network. The revived brand is consequently smaller and structurally different from the former national supermarket chain. It functions primarily as a value convenience identity rather than as the large-scale supermarket operator that once traded under the name.

Kwik Save originated as Value Foods, a Welsh grocery business founded by Albert Gubay on 11 May 1959 and based in Prestatyn. Its first shop was rented in Queen Street, Rhyl, in July of that year, followed by stores in Chester and Wrexham. During a 1964 visit to the United States, Gubay and fellow director Ken Nicholson studied discount-retailing techniques. They combined those observations with ideas associated with West German retailer Aldi and developed a model based on a narrow range of products, advantageous supplier-payment terms and rapid sales before invoices became due. The resulting cash-flow advantage helped support low retail prices. The first Kwik Save Discount shop opened in Colwyn Bay and reportedly outperformed the earlier Value Foods stores. By 1967 the chain had thirteen shops. Before its stock-market flotation in November 1970, the corporate name changed to Kwik Save Discount Group Ltd. Gubay sold the company in 1973, after which the brand continued its development as a British discount grocer. Kwik Save's core proposition was built around value pricing and operational simplicity. Traditional stores used warehouse-style wooden shelving and practical layouts, and many locations served lower-income urban and town-centre communities. During the 1980s some branches added frozen-food departments under the Arctic Freezer Centres name. Fruit and vegetable departments and butcher counters were sometimes operated by local franchisees, often under the Colemans name, while off-licence areas could trade as Liquorsave. These concessions were reduced after the Somerfield merger. In November 1994 the company acquired 117 Shoprite supermarkets for £45 million. The expansion was later viewed as excessive relative to investment in existing operations, and in November 1996 the company announced the closure of 107 underperforming stores. Kwik Save merged with Somerfield in February 1998. Somerfield initially intended to convert the entire estate to its own fascia, but the plan was reconsidered because Kwik Save's narrow aisles, small checkouts and boards-and-beams shelving did not readily suit the Somerfield format. Some stores were refurbished according to location and demand, while Somerfield's Food Giant discount stores were rebranded Kwik Save. The refurbishment programme introduced new flooring, lighting, checkouts, uniforms and shelving, expanded fresh-food space and, in some branches, bakeries. Approximately one-third of the estate received substantial investment. Although refurbished stores produced a positive customer response, their profitability remained below that of Somerfield's stronger stores. The brand also lost distinctiveness as competitors expanded. Aldi, Lidl and Netto entered or expanded in the United Kingdom, while Asda, Tesco, Sainsbury's and Morrisons added value ranges of their own. Farmfoods and Iceland competed in selected categories, particularly frozen food. Somerfield sold the brand and 171 remaining shops to BTTF, an investment vehicle led by Paul Niklas, on 27 February 2006. The transaction was followed by store disposals, a proposed marketing programme and new financing. In March 2006 the owners said they would stop selling Kwik Save's own-brand goods and instead emphasize familiar household brands at discount prices. The chain nevertheless experienced falling sales, mounting losses, payment delays and shortages of core products. Arla Foods UK stopped supplying fresh milk in May 2007 because of payment problems. Kwik Save closed 79 stores on 29 May and another 22 in June; the closures resulted in substantial job losses. The company entered administration on 6 July 2007. Fifty-six stores were transferred to FreshXpress, operated by Brendan Murtagh, preserving approximately 600 jobs at the time of the transfer. FreshXpress subsequently entered administration in March 2008, and its remaining reduced operation ceased trading in April 2009. The original supermarket estate was therefore effectively closed. Costcutter revived the name in April 2012 as a fascia for independent convenience stores. The first relaunch shop opened in Little Lever, Bolton. This second phase changed the meaning of the brand: rather than operating a large centrally managed supermarket estate, Kwik Save became a budget identity used by participating convenience retailers. The brand's contemporary status is therefore active but substantially smaller and less vertically integrated than during its supermarket-chain period.

1. 2012Convenience fascia relaunch

   Costcutter relaunched Kwik Save for independently operated budget convenience stores.

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2. 2007Administration and FreshXpress transfer

   Kwik Save entered administration; the 56 remaining stores were transferred to FreshXpress.

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3. 2006Sale to BTTF

   Somerfield sold the Kwik Save brand and 171 stores to BTTF, headed by Paul Niklas.

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4. 1998Merger with Somerfield

   Kwik Save merged with Somerfield and became a trading division of Somerfield Stores.

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5. 1994Shoprite acquisition

   Kwik Save acquired 117 Shoprite supermarkets.

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6. 1970London Stock Exchange flotation

   The company changed its name to Kwik Save Discount Group Ltd before floating on the London Stock Exchange.

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7. 1967Kwik Save reaches thirteen shops

   The Kwik Save Discount format had expanded to thirteen stores.

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8. 1959Value Foods founded

   Albert Gubay founded Value Foods in Wales, establishing the business from which Kwik Save developed.

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9. 1959First shop opened in Rhyl

   The first rented retail shop opened on Queen Street in Rhyl in July.

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Budget-oriented grocery retail focused on low prices, restricted ranges and practical neighborhood access.

• No FrillsOwn-label grocery range1990

  No Frills was Kwik Save's generic value range, introduced during the 1990s. It represented the chain's simplest low-price proposition and included staple grocery products such as baked beans. The range helped establish a recognizable budget identity and anticipated the own-label value tiers subsequently developed by larger British supermarkets.

• SimplyOwn-label grocery range1998

  Simply replaced the No Frills branding after the merger with Somerfield. It continued the emphasis on uncomplicated, low-cost grocery products while fitting the branding architecture used during Somerfield ownership.

• Kwik Save convenience fasciaConvenience retail brand2012

  The current incarnation is a budget-oriented fascia offered to independent convenience stores supplied through Costcutter's symbol-group network. It is a branding and retail-support proposition rather than the former centrally operated national supermarket estate.

• 1996No Frills baked-beans price reduction

  United Kingdom

  Kwik Save reduced the same No Frills baked-beans price to 5 pence, again responding to Aldi, Netto and Tesco pricing.

  Outcome. The promotion emphasized Kwik Save's role in highly aggressive value pricing.

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• 1994No Frills baked-beans price response

  United Kingdom

  Kwik Save cut the price of a 425-gram tin of No Frills baked beans to 7 pence in response to discount pricing by Aldi and Netto.

  Outcome. The move illustrated the intensity of price competition in British grocery retail.

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• 1990Kwik Save Freephone Helpline advertising

  United Kingdom

  1990s advertising promoted a freephone service through which shoppers could report lower prices elsewhere. Campaign executions featured Michael Barrymore and, in another advertisement, Ryan Stiles, reinforcing the brand's humorous low-price positioning.

  Outcome. The campaign supported the brand's value message and used the slogan "Because we're cheap, you're cheerful!"

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• 2012Conversion from supermarket chain to convenience fasciaStrategy

  The former supermarket operation had collapsed after the administration of Kwik Save and subsequent failure of FreshXpress.

  What changed. Costcutter relaunched the name as a budget fascia for independently owned convenience stores.

  Aftermath. Kwik Save returned as a smaller symbol-group retail brand rather than a national supermarket chain.

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• 2007Emergency store-closure programmeStrategy

  Kwik Save faced falling market share, supplier-payment problems and limited availability of core products.

  What changed. The company closed 79 stores in May and a further 22 stores in June.

  Aftermath. The closures preceded the company's entry into administration on 6 July 2007.

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• 2006Withdrawal of own-brand goodsStrategy

  After the sale to BTTF, the new owners sought to reposition Kwik Save against larger supermarkets and discount competitors.

  What changed. The company announced that it would stop selling own-brand goods and instead sell recognized household brands at discounted prices.

  Aftermath. The strategy did not prevent continuing sales declines and financial deterioration before the 2007 administration.

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• 2012Kwik Save brand relaunched through Costcutter

  Costcutter relaunched Kwik Save as a budget fascia for independently owned convenience shops supplied through its symbol-group network.

  Product launch
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• 2007Kwik Save enters administration

  Kwik Save entered administration after extensive store closures, supplier-payment problems and a severe deterioration in sales. Fifty-six remaining stores were transferred to FreshXpress.

  Bankruptcy
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• 2007Kwik Save closes stores amid financial difficulties

  The chain announced the immediate closure of 79 stores in May and a further 22 in June, with the measures linked to efforts to protect the remaining estate from administration.

  BankruptcyOther
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1. Kwik Save