After going into administration five years ago, Kwiksave is back on the high street as its first pilot commercial property opens in Little Lever, in Bolton. But if the business failed five years ago, why would is succeed now?
The Kwik Save chain was bought by Costcutter who is owned by Bibby Retail Services (BRS) and specialises in offering value and choice to locals.
With discount retailers such as Poundstretcher, B&M Retail, Wilkinsons and 99p Stores doing so well, surely Kwiksave, a discount brand itself has a place in this market. But will people be reluctant to shop in a commercial property that has been obsolete since 2007?
Branding Consultant, Jonathan Gabay thinks that “Costcutter needs to decide whether the name is rooted so far in the past that people won’t associate it with that.”
Claire Nuttall, Managing Director of 1HQ, a branding agency agrees. She said, “The stores will most likely have residual associations with what Kwik Save was in the past, particularly among the generation who knew it.
“Consumers are likely to be interested in the value for money aspect but the brand will still need to deliver.”
However, Costcutter is aware of the hurdles it will face, and so they have given a face-lift to the name and logo, and it shall be rebranded as Kwiksave. Speaking of the first Kwicksave commercial property opening, Nick Ivel, Chief Executive of Costcutter, said: “Kwiksave is an iconic brand that was a fixture on the high street for many years.
“We are very excited about opening the doors on the first store in Bolton.”
The commercial property in Bolton was formerly a Premier Store, but was refurbished and will be open this month. Speaking of the new store, Bhavesh Parekh, the Store’s Director, said: “It’s been absolutely amazing, we’ve had a very positive reaction from the public and a real uplift of new customers who didn’t used to shop with us.
“We will be officially launching this month with in-store special offers, leafleting and door-to-door.”
Kwik Save was originally formed in 1959. It had a successful run of business in the 1970’s and 80’s, but struggled during the 1990’s when supermarket value ranges were launched. In 1998 the chain merged with Somefields (now The Co-operative), but just eight years later the chain and 171 commercial properties were sold to an investment company, Back To The Future. Six months later the company went into administration.
Kwiksave isn’t the first chain Costcutter has purchased this year. It was only last month when the company bought Rhythm & Booze’s 68 commercial properties from administrators and saved all 425 jobs.
