An Extra Something For the Long Drive Home
The principle isn't new but the player is. British supermarket, Waitrose, has decided to hit the highway by opening two convenience stores at Welcome Break, the U.K.'s second largest motorway services operator.
According to the Independent, "Waitrose has signed a franchise agreement with Welcome Break to grab a slice of the motorway food market that M&S has in effect made its own since launching the Simply Food store in a Moto site in 2003."
Since the first U.K. service station opened in 1959, a great deal has changed. The Independent says Neil Saunders, a consulting director at the retail consultancy Verdict, attributes improvements in what were generally "pretty appalling" places with poor quality products and service as well as extortionate prices largely to "service-orientated chains going in there, such as the restaurants KFC and McDonald's, and Marks & Spencer."
Going head to head with Marks & Spencer may be good for drivers who will have increased choice and temptation. There is no danger of competition from larger supermarkets, however, as the Highways Agency prohibits motorway service areas (MSAs) from building sites bigger than 5,000 sq. ft. on one side of a road.
Waitrose's objective, according to its commercial director, Richard Hodgson, is "to grow our brand and make it significantly more accessible to people." Following the trial, more outlets are expected although Mr. Hodgson said not all service areas would be suitable. The Financial Times reports that the units, about a sixth of the size of a typical Waitrose store, will stock over 850 product lines, made up of food traditionally associated with travel, such as sandwiches, snacks and soft drinks, as well as convenience foods, such as ready meals and essential groceries, from a combination of Waitrose own and other brands.
M&S is also continuing to expand, having just opened its 28th Simply Food inside an MSA although Mr. Hodgson said, "We are not gunning for M&S; we are gunning for more customers wherever they come from... it is about making good, quality food accessible to everyone."
Discussion questions: Do highway service areas present an opportunity for grocers? What do you think of the potential for U.S. supermarkets to extend into c-store concepts, either alongside highways or elsewhere?