With the current economic situation both in Britain and on mainland Europe, many chains are being incredibly cautious about expanding their portfolio of retail commercial properties on the continent. In fact, the majority of British retailers operating throughout Europe are choosing to halt further store openings altogether, with many more cutting their losses and selling the leases on unprofitable stores in southern European countries such as Spain, Italy and Greece.
Simply Food has gone down well in Paris
However, some ambitious retailers are actually looking at expanding their store bases in northern Europe in preparation for the eventual recovery of the Eurozone. And with last summer’s poor weather devastating fruit and vegetable harvests across Europe, the chief executive of Marks and Spencer (M&S) believes his chain would be well served establishing its Simply Food brand as a reliable supplier of fresh goods in countries such as France and eventually Germany.
The aim of the Simply Food brand is to bring fresh, British grown and produced goods to consumers. While other chains such as Morrisons have altered existing store layouts to accommodate a new “Fresh” range, M&S has so far been the only one to find success in exporting the idea outside of the UK.
For example, chief executive Marc Bolland cited the success of the new Parisian stores as an example of how well the Simply Food brand has gone down in France – his primary target in the expansion scheme.
The stores exceeded all industry experts’ expectations, and although, collectively, the stores are actually loss-making at present, they are expected to become profitable within the next two years.
As a result, Mr Bolland is now actively seeking a franchise partner to enable a quicker rate of expansion both in France and then across other areas of Europe.
He said; “What we are saying is we are looking at taking the Simply Food concept to Paris and teaming up with a partner to launch it in one or two other countries.”
However, thanks to the premise of home grown British products being sold exclusively in these stores the logistics of operating further afield are still to be resolved.
Mr Bolland continued; “Because the food is being delivered fresh every day from the UK the locations would all need to be close enough for same day deliveries by our trucks.
“We expected the success of classical lines like biscuits, jams and teas – typical British products – but what have really taken off are ready meals and salads as well.”
Of course, M&S is a hugely popular brand in the UK, with generations of British families choosing to shop for their fresh foods there. The small format convenience store is something which is not often seen in continental Europe, with hypermarkets being the norm outside the most popular tourist areas.
However, there are signs that Britain’s convenience store culture is becoming desirable to European consumers – therefore making it the ideal time for savvy investors to snap up the chance to work with one of Britain’s most trusted retailers in their Simply Food expansion.
Mr Bolland must now hope that the ongoing threat of the Eurozone Crisis will not dissuade potential partners from stepping forward at this key stage for M&S.
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