Focus on convenience trading
A Murco case study

Page 1: Introduction

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 shop the disappearance of the filling station selling just petrol and oil. Organisations have seen a need to make appropriate responses to these environmental...
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Page 2: Changes in the market place

Through developing neighbourhood service stations, relationships are built with local residents who become regular customers for the service station shop as well as for petrol. Despite reasonable prices, petrol volume at such outlets is generally lower than at large trunk road stations or supermarket sites. Cash operating costs, however, are much the same irrespective of the volume of petrol sold...
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Page 3: Market opportunities

Murco was suffering from having its market positioning redefined by competitor activity. Consequently, Murco consulted with Elf and Gulf to explore the possibility of a merger. However they concluded that the required economies of scale would not be forthcoming.The alternative was to develop the nonfuel income of the existing stations to a much higher level. To do so required an entirely new...
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Page 4: A new partnership arrangement

Murco selected SPAR as a suitable alliance partner for its Withybush outlet, as it possessed the essential requirements of expertise and logistical support as well as being a recognisedbrand across Europe. As a distinct franchise, it was of particular value in the chilled, fresh and prepared food sectors which were to be of vital importance at this particular store.In the early 1980s, SPAR UK...
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Page 5: Pilot project

Murco first approached SPAR UK Ltd in August 1998 with a view to implementinga joint forecourt programme at its site in Withybush, South Wales. Murco and SPAR developed the following objectives:- Murco’s site at Withybush would be developed to trial a modified form - the interceptor store concept the development of the store would increase retail turnover estimated Gross Profit would...
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Page 6: Conclusion

It is expected the partnership venture between Murco and SPAR will prove to be successful, building on the existing strength and reputation of two highly respected players in their individual fields. The venture paves the way for new opportunities in retailing based on a convenience concept that complements existing retailing patterns, rather than creating direct head-to-head competition with...
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Related: Travis Perkins
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