Focus on convenience trading

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In the closing decade of the 20th century, the UK retailing industry has witnessed massive change mainly due to an increasing domination of major supermarket chains. Fundamental developments include: the continuing decline of the corner shopthe disappearance of the filling station selling just petrol and oil. Organisations have seen a need to make appropriate responses to these environmental changes. This case study examines how organisations with strong traditionalretail presence, such as Murco and SPAR, benefit when united. The ability to adapt enables them to serve local communities through such innovations as ‘convenience trading’. Consequently, they have benefited from synergy based on their shared experience. Murco ‘piloted’ the new concept by creating a convenience store in Haverfordwest, Dyfed which almost tripled the size of the existing retail sales area. Background to Murco and SPAR Murco is the UK subsidiary of Murphy Oil Corporation of the USA and supplies 400 service stations in England and Wales. Murco’s UK system is based around both its North Sea crude oil production and its oil refinery interest at Milford Haven, from which oil product terminals in Bristol, Reading and Birmingham are supplied. Product exchanges with other oil companies extend Murco’s marketing reach into northern and…

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