Tailored Retail Offer Gives David Sands Competitive Edge

Increased focus on its own range of freshly-prepared foods to take away and an ongoing strategy of supporting local and Scottish producers have helped convenience store group David Sands Ltd record a 4% increase in turnover.

Announcing its results for the year ending 31st December 2010, the 29-outlet chain, which now sells its own range of freshly made sandwiches, soups, salad bowls, fruit pots and ready meals under the growing ‘David’s Kitchen’ brand, revealed an increase in turnover to just over £41 million in 2010 from £39.5 million in 2009.

The fifth-generation family-owned retailer, which operates convenience stores in Fife, Perthshire and Kinross, recorded an 18% rise in pre-tax operating profits to £1.65 million from £1.39 million in the same period.

David Sands, chief executive officer, said: "While the last year has been as challenging for us as it has been for the wider retail sector in Scotland, I believe that our decision to develop our own ‘David’s Kitchen’ brand of food to take away has given us a very clear point of difference over our competitors.

"Furthermore, our strategy of focusing heavily on the customer service aspect of our business has also given us a competitive advantage in the communities in which we trade.

"We discovered many years ago that employing local people to manage and run our stores was the way forward in engaging with your customers.

"Most of our staff live locally, many within walking distance of their stores, so they get to know their customers well, enabling us to build up exceptional customer loyalty that the big supermarkets simply cannot match. Again, this gives us a competitive edge."

Meanwhile, the Kinross-based company has continued to invest heavily in building up relationships with local and Scottish suppliers, which now account for 23% of our total turnover.

Many suppliers, such as Auchtertool-based Puddledub Pork & Fifeshire Bacon Co, championed by celebrity chef Nick Nairn, feature on high-profile promotional materials in stores.

"The major multiple retailers are making a big song and dance about supporting Scottish producers but it’s something we’ve been doing for a very long time," says Sands. "It adds value to your business, provides that all-important point of difference that I’ve already alluded to and helps you to really engage with your customers."

Two new stores in Fife – an acquisition of an existing retailer at Kinglassie and a new-build outlet at Linburn Road, Dunfermline – opened during the year.

The group’s 30th store – another new-build – is scheduled to open in Glenrothes in early 2012 while it is anticipated that the 31st store, another outlet being built from scratch, will also come on stream in 2012.

Commenting on future acquisitions, Sands said: "Consolidation within the independent sector presents opportunities for us and we remain committed to expanding the David Sands business.

"We will continue, therefore, to explore any opportunity to purchase suitable existing retail outlets although building brand new stores will allow us to further develop our growing food-to-go business.

"Our current distribution operation is extremely robust and has been planned to provide capacity to service in the region 50 stores but we have ample space to accommodate future expansion.

"We will also continue to trial new services, introduce more local produce and develop our Trainee Manager Development Programme which is designed to ensure we have highly-trained staff ready to take charge of new stores as and when they open."

All David Sands convenience stores are licensed, sell newspapers and magazines, have a strong fresh food offer, in-store bakery and services including PayPoint, an ATM and the National Lottery. The group was among the first in Scotland to introduce a ‘Challenge 25’ policy on alcohol and age-related products.

David Sands Ltd was founded in Kinross in 1812 and currently operates 29 stores in Fife, Kinross and Perthshire.

The company is a member of the Nisa-Today’s group, the member-owned organisation that supports independent retailers and wholesalers in the food and drink sector with a range of buying, marketing and distribution services.

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