This article documents a current event. Information may change rapidly as the event progresses.

This article describes the UK-based chain. There are also several unrelated shops of the same name in the United States.

Kwik Save was a discount supermarket chain in the United Kingdom. Its stores were small to medium sized high street supermarkets, mainly located in areas with below average incomes. Kwik Save will be placed into administration on 6th July 2007. Image File history File links Current_event_marker. ... Image File history File links No higher resolution available. ... Exterior of a typical British supermarket (a Tesco Extra) Exterior of typical North American supermarket (a Safeway) This Flagship Randalls store in Houston, Texas is an example of an upscale supermarket. ... It has been suggested that this article or section be merged with Main Street. ... Administration is a procedure under the insolvency laws of a number of common law jurisdictions which functions as a rescue mechanism for insolvent companies and allows them to carry on running their business. ...

It has struggled to make profits in recent years as superstore operators such as Tesco and Sainsbury's have introduced their own budget brands, and other discounters such as Lidl and Aldi have entered the market.^{[citation needed]} The firm has recently gone into Administration and has closed a 90 of all its stores across the United Kingdom, with another 56 being transferred to a new company.. ^[1] Tesco plc is a UK-based international grocery and general merchandising retail chain. ... J Sainsbury plc is the parent company of Sainsburys Supermarkets Ltd, commonly known as Sainsburys, a chain of supermarkets in the United Kingdom. ... A Lidl store in Launceston, United Kingdom Lidl is a European discount supermarket chain of German origin that operates 5,000 stores. ...  , short for ALbrecht DIscount, is a discount supermarket chain based in Germany and one of the largest retail chains worldwide. ...

History

Foundation

Founded as Value Foods by Welsh entrepreneur Albert Gubay on 11 May 1959 in Prestatyn, the company rented its first retail shop in Rhyl in July 1959. Gubay infringed local laws on shop opening, by staying open till 9pm on Fridays, thereby breaking the 1950 Shops Act. His aggressive price cutting resulted in some manufacturers refusing to supply him.^[2] This article is about the sub-division of the United Kingdom. ... For the computer game previously called Entrepreneur, see The Corporate Machine. ... Albert Gubay (born 1928) is a Welsh billionaire, presently based in Stanton, Isle of Man. ... May 11 is the 131st day of the year in the Gregorian calendar (132nd in leap years). ... 1959 (MCMLIX) was a common year starting on Thursday of the Gregorian calendar. ... Prestatyn is a seaside resort in the administrative county of Denbighshire, North Wales, lying on the north coast. ... 1959 (MCMLIX) was a common year starting on Thursday of the Gregorian calendar. ...

In 1964 Gubay visited the United States with fellow director Ken Nicholson, and learnt about the "baby shark" method of retailing. Combined with ideas gained from West German retailer Aldi, the business model was based on buying a limited range of lines on favourable (net 60 or 90) payment terms, distributing and selling them at or below cost before the payment fell due, and using the interest on the resulting cash flow to fund the business. The first Kwik Save Discount branded store opened in Prestatyn in 1965, and produced more sales than the existing Value Foods supermarkets. The second opened in Colwyn Bay, and by 1970 Kwik Save Discount had 24 stores. 1964 (MCMLXIV) was a leap year starting on Wednesday (the link is to a full 1964 calendar). ... “Deutschland” redirects here. ...  , short for ALbrecht DIscount, is a discount supermarket chain based in Germany and one of the largest retail chains worldwide. ... Prestatyn is a seaside resort in the administrative county of Denbighshire, North Wales, lying on the north coast. ... 1965 (MCMLXV) was a common year starting on Friday (the link is to a full 1965 calendar). ... Colwyn Bay at sunset Colwyn Bay (Welsh: Bae Colwyn) is a town and seaside resort on the coast of the Irish Sea in North Wales. ... 1970 (MCMLXX) was a common year starting on Thursday. ...

Just before it was floated on to the London Stock Exchange in November 1970, the company changed its name formally to Kwik Save Discount Group Ltd. In 1973, Gubay sold Kwik Save for $28 million.^[3] Gubay repeated the low-price retail model using the 3 Boys brand in New Zealand, Ireland and the United States. The Source by Greyworld, in the new LSE building Paternoster Square. ... 1970 (MCMLXX) was a common year starting on Thursday. ... Year 1973 (MCMLXXIII) was a common year starting on Monday (link will display full calendar) of the 1973 Gregorian calendar. ...

1990s

In 1994, Kwik Save bought out the UK mainland supermarkets of Shoprite, a fellow food discounter, taking its store portfolio to more than 1,000. The deal over-stretched its new owner and it took around three years to sort out the consolidation,^{[citation needed]} with all stores being re-branded and many under-performing branches closed. The reduction in profits and the resultant decline in Kwik Save's share price caused by this deal left the company open to takeover.^{[citation needed]} Year 1994 (MCMXCIV) was a common year starting on Saturday (link will display full 1994 Gregorian calendar). ... Shoprite is a supermarket chain currently trading only in the Isle of Man. ...

Somerfield merger

Kwik Save became part of the Somerfield group in 1998 when it and Somerfield merged.^[4] operating as a trading division of Somerfield Stores Ltd. Following the merger Somerfield's Food Giant discount supermarkets were re-branded as Kwik Save. Somerfield is a chain of small to medium-sized supermarkets operating in the United Kingdom. ... Year 1998 (MCMXCVIII) was a common year starting on Thursday (link will display full 1998 Gregorian calendar). ...

Originally all Kwik Save stores were to be re-branded as Somerfield, but it was quickly realised that the look and feel of existing Kwik Save stores - featuring warehouse style wooden shelving, space-saving small checkouts and narrow aisles - would not lend itself well to the Somerfield fascia. For this reason, the original plan was abandoned and the best Kwik Save stores were cherry-picked for conversion, based on location and market demand, receiving a full refurbishment. At the same time, the company announced the closure of more than half of its stores in Scotland and the conversion of the remainder to the Somerfield fascia. This had the effect of pushing the ABC ratings of the average Kwik Save customer, and also the brand itself, further downmarket. Motto (Latin) No one provokes me with impunity Cha togar mfhearg gun dioladh (Scottish Gaelic) Wha daur meddle wi me?(Scots)1 Anthem (Multiple unofficial anthems) Scotlands location in Europe Capital Edinburgh Largest city Glasgow Official languages English, Gaelic and Scots1 Government Constitutional monarchy  -  Monarch Queen Elizabeth II... Somerfield is a chain of small to medium-sized supermarkets operating in the United Kingdom. ...

Sale of stores to BTTF

On 27 February 2006, Somerfield Stores Ltd sold the Kwik Save brand and 171 stores to BTTF, an investment vehicle headed by Paul Niklas, for an undisclosed sum ^[5]. Somerfield re-branded the 102 Kwik Save sites it has retained under its own name and a further 77 stores have been sold to other retailers, including 19 to Netto. February 27 is the 58th day of the year in the Gregorian calendar. ... For the Manfred Mann album, see 2006 (album). ... For other supermarket chains with the same name, see Netto (Les Mousquetaires) and Netto Marken-Discount. ...

According to a report in PR Week in April 2006, Kwik Save hired a marketing agency in a bid to revitalise the brand and reposition it as an alternative to the leading supermarkets. Around £200,000 is being allocated to Public Relations as part of a marketing brief worth £4m-£5m. PR Week is the leading weekly trade magazine for the public relations industry with a circulation of 16,000 in consultancies and leading in-house private and public sector PR and corporate communication departments across the UK. It is the voice of the UK PR industry and the leading source... April 2006 : ← - January - February - March - April - May - June - July - August - September - October - November - December- → Marcos Pontes, Brazils first astronaut, reaches the International Space Station. ... Public relations (PR): Building sustainable relations with all publics in order to create a postive brand image. ...

It was announced in October 2006 that a £30m refinancing package from unnamed investors was put in place, part of which will be used to finance the purchase of a further 45 more stores from Somerfield. Some of those purchased were included in the Competition Commission investigation ruling into Somerfield's purchase of 114 Safeway Compact stores in 2004.^[6]. For the Manfred Mann album, see 2006 (album). ... The Competition Commission is an independent body responsible for investigating mergers, market shares and conditions and the regulation of UK companies. ... A Safeway supermarket in Camberwell, South East London, in 2003 Safeway was a chain of 479 supermarkets and convenience stores in the UK that is now part of Wm Morrison Supermarkets. ... shelby was here 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ...

In December 2006, The Sunday Times reported that Kwik Save was suffering from a "sharp fall in sales and mounting losses", and was seeking another financial injection.^[7] On 22 January 2007, it was reported that Kwik Save was suffering problems over delays in payment to its major suppliers, with stocks of many core products being limited as a result.^[8] For the Manfred Mann album, see 2006 (album). ... The Sunday Times is a Sunday broadsheet newspaper distributed in the United Kingdom and Republic of Ireland, published by Times Newspapers Ltd, a subsidiary of News International which is in turn owned by News Corporation. ... January 22 is the 22nd day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ...

On 29 January 2007, it was reported that a new investor was about to inject £70 million into the Kwik Save business.^[9]. In mid-February 2007 the company announced that it had managed to source a £50 million refinancing package to revive the failing retailer[2]. In March 2007 the £50 million deal was finalised^[10] and Paul Niklas returned as managing director of the company.^[11] The holding company changed its name from BTTF to Kwik Save Limited. January 29 is the 29th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... February 2007 is the second month of the year. ... March 2007 is the third month of the year. ...

Store closures

On 29 May 2007, Kwik Save announced plans to close 79 stores with almost immediate effect. All stores affected will be closed by 30 May 2007. Kwik Save market share fell from 1.2% in the 12 weeks to April 2006 to 0.2% in the same period in 2007, according to TNS Worldpanel. BBC News also reported that Arla Foods UK stopped delivering fresh milk to the Kwik Save chain in the week beginning 21 May 2007 due to "payment problems". ^[12] May 29 is the 149th day of the year (150th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 150th day of the year (151st in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... TNS Worldpanel is a division of the United Kingdom based global market information group TNS, which analyses the British grocery sector. ... Arla Foods UK plc (LSE: ARU) is a major British dairy products company. ... May 21 is the 141st day of the year (142nd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ...

On 14 June 2007 Kwik Save announced plans to close a further 22 stores with immediate effect in order to protect them from the danger of administration. The group has now closed a third of its stores across the UK, leading to up to 700 job losses. ^[13] June 14 is the 165th day of the year (166th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ...

On 21 June 2007 Kwik Save announced to USDAW that they would not be paying staff, who were expecting to be paid the following day.^[14] is the 172nd day of the year (173rd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... The Union of Shop, Distributive and Allied Workers (USDAW) is a trade union in the United Kingdom. ...

On 5th July the company was placed into administration. Kwiksave are left with 56 stores which will transfer to a new company believed to be called Fresh Express.^[15] Employees of Kwik Save will not be paid unless they are a part of the 56 stores going to Fresh Express.^{[citation needed]}

Brand image

Kwik Saves stores are primarily aimed at the lower end of the food market, a position which has been maintained throughout the company's history, except for the introduction of some non-food lines during the Somerfield era.

The firm always traded on no-frills, value pricing, with utilitarian shop fittings, basic checkouts and charges for carrier bags. The stores originally stocked up to 600 lines and checkout staff were trained to memorise all prices^{[citation needed]}, thus saving on both the capital costs of bar code reading technology and labour costs of marking the price on every item. In the early years, when the company had little in the way of effective competition, this was a clear recipe for success among the millions of people who might have found the mainstream supermarkets expensive, so the brand was highly regarded.

The company's quirky image has been damaged in recent years, however, by the increasing competition from other discount chains, such as Aldi, Lidl, Iceland and Netto, as well as increased competition from larger chains, which have introduced their own 'value' brand ranges. Also, Kwik Save was seen for many years as the poor relation of Somerfield, consisting only of stores which were considered unsuitable for conversion to the more upmarket fascia, resulting in a further dilution of brand strength.  , short for ALbrecht DIscount, is a discount supermarket chain based in Germany and one of the largest retail chains worldwide. ... A Lidl store in Launceston, United Kingdom Lidl is a European discount supermarket chain of German origin that operates 5,000 stores. ... For other supermarket chains with the same name, see Netto (Les Mousquetaires) and Netto Marken-Discount. ...

Store formats

Traditionally Kwik Save stores had warehouse style wooden shelving, laid out in a traditional style familiar from most early supermarkets.

In an effort to modernise the Kwik Save brand when under Somerfield ownership, the company undertook a programme to renovate its stores which included new staff uniforms (a black and white chequered shirt which replaced the red t-shirts), new 'ASDA style' shelves to replace the wooden warehouse racking (referred to as 'boards and beams'), new floors, checkouts, colour schemes and lighting.

Renovated stores devoted more space to fresh foods, introduced new features, such as bakeries, and removed the requirement for customers to pay for carrier bags which, for many years, was symbolic of the Kwik Save business model. Around a third of the Kwik Save estate was transformed, with each store having between £300,000 and £1,000,000 invested in the improvements. Sales figures from renovated stores suggested that the public did respond positively to the new look, although the profitability of these stores still doesn't meet that of unrefurbished Somerfield fascia stores.

The off licence sections of many Kwik Save stores were in a separate department known as Liquorsave. Up until the late 1990s, the fruit and vegetable sections and butchery counters were usually run by local franchisees, usually under the name of Colemans. Also some stores rented out space to non-food retailers. This format has been reduced in recent years and it is unclear what the new owners of the chain will do with existing concessions. These are being phased out in all stores converted to the Somerfield facia.

During the 1980s some Kwik Save stores incorporated a frozen foods section which traded under the name of Arctic Freezer Centres.

Own-brand goods

In the 1990s the chain launched its popular No Frills brand, offering cheaper generic products for people on a budget. This was replaced by Somerfield branded goods shortly after the two companies merged in 1998. Later, this was joined by Manager's Specials, a varied range of low price products.

In March 2006, the new owners of the chain announced that it would no longer sell own-brand goods, switching instead to well known household brands at discount prices. It was also announced that goods would be sourced locally whenever possible.^{[citation needed]} March 2006 : ← - January - February - March - April - May - June - July - August - September - October - November - December- → Fijian Prime Minister Laisenia Qarase announces that the 2006 Fiji general elections will be held in the second week of May 2006 from the 6th to the 13th. ...

References

Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 168th day of the year (169th in leap years) in the Gregorian calendar. ... 2003 (MMIII) was a common year starting on Wednesday of the Gregorian calendar. ... April 9 is the 99th day of the year (100th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... May 5 is the 125th day of the year in the Gregorian calendar (126th in leap years). ... For the Manfred Mann album, see 2006 (album). ... February 27 is the 58th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... May 5 is the 125th day of the year in the Gregorian calendar (126th in leap years). ... For the Manfred Mann album, see 2006 (album). ... October 16 is the 289th day of the year (290th in leap years). ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... May 5 is the 125th day of the year in the Gregorian calendar (126th in leap years). ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 150th day of the year (151st in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... January 20 is the 20th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... May 5 is the 125th day of the year in the Gregorian calendar (126th in leap years). ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... January 29 is the 29th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... May 5 is the 125th day of the year in the Gregorian calendar (126th in leap years). ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... May 29 is the 149th day of the year (150th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 168th day of the year (169th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 173rd day of the year (174th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 182nd day of the year (183rd in leap years) in the Gregorian calendar. ...

External links

• Somerfield Ltd press release announcing sale of Kwik Save
• Kwik Save corporate site

[[Category:Supermarkets of the United Kingdom]