Former Woolworths (now Farmfoods), Hawick (29 May 2011)

With a visit to Edinburgh imminent – which will no doubt involve at least one or two Woolies-spotting detours – I figured it was time to do something with some previous Scottish photographs that I’ve had lurking in my archive.

The focus, then, of this post is the Scottish Borders – an area more than twice the size of County Durham, but one that offers fairly slim pickings as far as former Woolworths sites are concerned.

As far as I’m aware, only the county’s two largest towns ever had a Woolies store. Hawick (store #413), opened at 46 High Street in about 1930, followed by Galashiels (store #486) on 22 October 1932; both lasted until the chain’s eventual collapse in 2008. In contrast, settlements such as Selkirk, Kelso and Peebles seem to have missed out, even though Woolworths did, at various times, have stores in similar-sized small towns elsewhere (such as Launceston and Barnard Castle).

As you might expect, given its age, the Hawick store’s appearance is typical of the purpose-built 1930s small-town Woolworths, with all the usual features – symmetrical frontage, five bays, central pediment – present and correct. Indeed, as you can see from comparing the two shots below, the frontage is almost identical in scale and style to that of the contemporaneous Penrith store (#416).

Former Woolworths (now Farmfoods), Hawick (29 May 2011)

Former Woolworths (now B&M Bargains), Penrith (19 Jun 2010)

As is normally the case, however, the Hawick store’s elegant original shopfront – shown in the 1931 photograph, below – was replaced with the latterday Woolies one in the 1960s, recognisable across the country by its black granite stall riser and metal-framed doors and glazing. At some point, the original brick and stonework was also covered with a not especially appealing coat of cream-coloured paint.

Woolworths, Hawick, in 1931. Photograph courtesy of Ettrick Graphics

Like many of the value retailers that have taken over former Woolworths locations, the new occupant, Farmfoods, has chosen to keep the existing shopfront as it is, ensuring that it will still look like an old Woolies for some time to come!

Former Woolworths (now Farmfoods), Hawick (29 May 2011)

Galashiels’ store at 25 Channel Street, from a couple of years later, is similarly typical of the ‘stretched’ frontage that was used for larger stores in the 1930s.

Former Woolworths (now Home Bargains), Galashiels (27 Dec 2011)

Here, however, the incoming tenant – value retailer Home Bargains – has adopted its usual approach of installing a brand-new dark-grey shopfront, echoing the investment that it’s made in other former Woolies sites such as Tamworth, Berwick-upon-Tweed (below) and Prestatyn.

Former Woolworths (now Home Bargains), Berwick-upon-Tweed (24 Aug 2010)

However, whereas those stores all feature Home Bargains’ toned-down ‘heritage’ signage in burgundy and grey, Galashiels gets the standard red and pale blue version – and the fascia lights up, too. A contact at Home Bargains once told me that the more discreet signage is used when local planners are unhappy with the more garish alternative; one can only imagine that the planners in Galashiels didn’t make as much fuss as the others, as Channel Street certainly has as much historic character – and probably more – than Tamworth’s George Street.

Channel Street, Galashiels (27 Dec 2011)

The fading light when I visited last month meant that I only spent a short time in Galashiels, but my impression of Channel Street was of quite a handsome thoroughfare. It was only let down, I felt, by the steady stream of buses (a slightly curious experience, given that the road surface was more akin to that of a pedestrianised street), and by the proliferation of rather second-rate retail names.

Galashiels does have some big-name stores – among them Next, M&S Simply Food, Boots and New Look – but these are located slightly away from the centre at the fairly new Gala Water Retail Park. There’s also a large Asda behind the retail park, opened at the same time, and a longer-established Tesco that includes a pedestrian link between the new developments and the original town centre.

Taken together, there’s no doubt that Galashiels has a reasonably strong retail offer for a town of its size, but I couldn’t help thinking that Channel Street felt like a hotchpotch of shops that were left over – a high street without an anchor, and that no longer felt like an obvious destination.

When even Boots has left Channel Street to move over to the retail park, there’s clearly a job to do in reassessing and reinventing what Galashiels’ traditional town centre is for. Perhaps the reopening of the Waverley Line as the new Borders Railway – scheduled for December 2014 – will, as Transport Scotland hopes, “inject a new lease of life into an area that has not been served by a mainline railway for over 40 years”.

High Street and Town Hall, Hawick (29 May 2011)

Hawick, in contrast, will only get its train service back if the reopened Borders Railway is ever extended beyond the present intended terminus at Tweedbank. Compared to Galashiels, however, it has less of an issue with out-of-town retail, and a high street that is packed with character and lovely buildings – most notably the fabulous Town Hall in the Scots baronial style.

Former Almstrongs department store, Hawick (29 May 2011)

Visiting last May, however, I was struck by the number of empty shops – including Almstrongs, a closed-down independent department store – and by the high street’s overall quietness on a Bank Holiday Sunday. Even finding a place to eat was quite a challenge, with the local cafés (not open on Sunday) losing out on our cash to the ubiquitous Wetherspoon’s.

High Street, Hawick (29 May 2011)

Yet, of all the country’s high streets, Hawick is fortunate in having a fantastic sense of place, with fine buildings, a rich history, and a great heritage (continuing today) as a centre for knitwear production. Overall, it felt like a town that could be doing a lot more, Hexham-or Barnard-Castle-style, to capitalise on its assets: promoting independent retailers, and developing and marketing itself to both locals and potential tourists as an attractive destination to shop, eat and linger.

On my retail-related travels over the last three years, I’ve visited more than 150 town centres across the country – and some of those start from a position of having few historic assets, or are saddled with a dreary and soulless 1960s shopping precinct that only demolition will remedy.

It’s time that the powers-that-be in our more characterful centres – like Galashiels and Hawick – realised what fantastic potential those places have, and showed creativity, innovation and foresight in creating a modern and distinctive high street that can still thrive in an age of online and Internet retailing.

Many thanks to Ettrick Graphics for giving me permission to reproduce the 1931 photograph of Hawick Woolworths.

UGO cake

Following my recent post about Asda’s divestment of 39 surplus Netto stores, I had the pleasure of being invited to my first press conference last Friday, in Leeds. 

Appropriately held just a short distance from Asda’s corporate HQ, the event was organised by Haldanes, the fledgling independent grocer who, as I blogged before, is acquiring 20 mid-size Netto supermarkets – including four in the North East – that it plans to relaunch under a new discount fascia, UGO (pronounced You-Go, like the 1980s car brand). 

The press conference was a great opportunity to find out more about Haldanes’ intentions for the fledgling UGO chain and the eponymous Haldanes fascia, as well as a chance to meet some of the company’s key people – including Arthur Harris (Chief Executive Officer), Richard Collins (Chief Operating Officer) and Adam Hart (the recently appointed Non-Executive Chairman). 

So, what can we look forward to as Haldanes takes its next steps towards becoming, in its own words, “a viable alternative to the major multiples”?

Certainly, when I coined the phrase “son of Netto” to describe UGO, I hadn’t quite banked upon the chain’s visual identity being so derivative of what it’s replacing. Scottie may have been banished, but the yellow and black colour scheme, bold font and (modernised) basket device are all present and correct.

UGO logo

Netto logo

Haldanes’ argument is that by capitalising on what it sees as the “distinctive and trusted” yellow and black Netto fascia, the UGO brand will provide “reassurance” and a “seamless transfer” for customers. Indeed, COO Richard Collins told me that Netto had been “very supportive” during the process of developing the UGO visual identity, and that the Danish retailer had been “surprised but flattered” by the obvious similarities with its own brand. Of course, given that Netto is exiting the UK entirely, there will be no scope for confusion between the two chains – unless UGO decides to enter the Danish market at some point in the future.

Throughout the press briefing, one thing that came across strongly was Haldanes’ respect for the Netto business and what it has achieved in the UK to date, with Richard Collins praising the “loyal staff and customers”, and emphasising Haldanes’ “excitement” over the portfolio of stores that it is acquiring. Certainly, it’s worth noting that Netto’s British operation has been consistently profitable over the last decade (making an operating profit of £7.6m in 2009), even if its operating margin (of around 1%, compared to Asda or Morrisons’ typical 4 to 5%) has been a little on on the low side.

Mock-up UGO leaflets

This sense of not messing too much with the Netto formula comes through not only in UGO’s brand identity, but also in terms of what the rebranded stores will be like as places to shop, and the marketing channels that will be used. Hence, Haldanes has no intention of increasing prices, plans to keep Netto’s popular non-food and ‘spot line’ deals, and intends to maintain a strong fresh food offer – something the retailer sees as a current strength of Netto compared to the other hard discounters. The regular offer flyers delivered to nearby homes are also set to be retained.

At the same time, Haldanes’ bosses seem to have recognised that there is scope to increase footfall, sales densities and profits by tackling those areas where the Netto business model can be enhanced – what Richard Collins referred to as “putting the icing on the Netto cake.”

The checklist of planned improvements seems logical and well informed. Some involve making it easier for customers to carry out a full weekly shop: for example, by doubling the core range of branded traditional grocery lines to around 3,000 SKUs (compared to about 7,000 in a typical Haldanes); introducing an enhanced range of health and beauty products; and offering a full range of newspapers and magazines.

Other changes are intended to address barriers that might currently put shoppers off going to Netto, such as installing ATMs at all stores, accepting credit cards, offering home delivery, and investing heavily in customer service. The scope for offering additional services, such as BrightHouse-style consumer credit, is also being explored.

Example of proposed UGO marketing

Marketing activity – led by the Darlington-based agency Charles Hollywood – is also set to be beefed up, including a campaign featuring the famous strongman Geoff Capes (“due to the strength of the UGO deals”), a rugby league sponsorship deal, and seemingly infinite scope for UGO-related messaging puns.

Against the backdrop and excitement of the UGO launch, the lack of any new Haldanes-branded stores since early 2010 has understandably raised questions among commentators about the future of the eponymous fascia, particularly following the news that one existing Haldanes store (in Biddulph) will shortly be converted to the UGO brand.

However, CEO Arthur Harris was clear that the company’s long-term strategy is based around running three separate and “very important” fascias – UGO, with its discount offer; Haldanes, seen as a market town mid-size supermarket format; and a new convenience and forecourt chain, Haldanes Xpress.

Artist's impression of Hartlepool UGO store

The Biddulph shop, he explained, is a location where a large Sainsbury’s has recently opened nearby, and where the company sees a UGO store as being able to compete more effectively than a Haldanes. He also pointed out that the conversion will allow the full UGO fitout to be trialled before it is rolled out to the acquired Netto stores – a process that is expected to involve stores being shut for only 14 trading hours, and will see all 20 shops transformed over a six-week period between mid-March and the end of April.

Harris refused to be drawn on how much Haldanes had paid for the 20 stores, but revealed that the cost of refurbishing and converting them to the UGO brand would be around £2m in total.

Haldanes logo

Following the company’s recent purchase of a petrol forecourt in Scotland, and of a post office and convenience store next to the existing Haldanes shop in Tattershall, Lincolnshire, Harris also confirmed that the firm is in advanced discussions to purchase eight convenience stores that will be rebranded under the Haldanes Xpress fascia. An announcement on this acquisition is apparently expected within the next two to three weeks.

Additionally, the business is already looking at picking up a couple more stores for UGO in Leeds – not, it would seem, among the eight Netto stores that Asda still needs to divest. However, Haldanes hasn’t ruled out acquiring one or two more stores from the OFT disposals list in the coming months.

For the moment, indeed, it seems that the Haldane Group is set to continue growing by acquisition. In response to my question, Arthur Harris said that there were no immediate plans for any new-build stores, but that it was certainly something the business would hope to achieve in the future. As the business expands, he revealed that private label products, a groupwide loyalty card and a dedicated supply chain are all likely to be on the cards. For now, however, the company’s focus would understandably be on “bedding down what we’ve got.”

Closed down Kwik Save store

Given the painful and drawn-out demise of the last big British food discounter – Kwik Save – many of whose stores were in comparable locations to UGO’s, you could be forgiven for questioning the wisdom of Haldanes’ move into a similar market. Towards the end, however, Kwik Save’s flaws typically included dowdy stores, unremarkable customer service and prices that weren’t actually all that cheap – all pitfalls that the UGO team seems to recognise, and be keen to avoid.

Rather, a better comparison is probably with those family discount chains, such as Heron Foods and Farmfoods, that have grown up somewhat below the radar into successful and profitable grocery businesses. Up against stiff competition on several fronts – the big four supermarkets, Iceland, and the hard discounters – both have become successful through a steady process of store openings and acquisitions, and by giving customers want they want: keen prices, decent quality products, and clean, bright stores in convenient locations.

If UGO is able to mesh these same qualities with what promises to be its own distinctive – and hopefully profitable – take on the discounter format, there’s every reason to think that the concept will be a success. As long as it avoids the Kwik Save recipe’s sticky mess, UGO might indeed end up being the very tasty icing on Netto’s partly-baked cake.

Iceland continues to pick up more Woolies stores - this one in Hexham was acquired in January

It looks like the pace of Woolworths stores finding new occupants may be picking up, with more than twenty new announcements since I last blogged on the issue – at this rate I won’t be able to keep up!

Once again, the list of incoming retailers is as eclectic as we have come to expect:

• Blairgowrie: The Original Factory Shop (still tbc, subject to building issues) – full story
• Bristol (Hartcliffe): What Stores Ltd (family-owned DIY and variety store – I can’t find a website, buy you can read people’s reviews of the Cardiff superstore here) – full story
• Cannock: Poundland – full story
• Christchurch: 99p Stores – full story
• Colchester: QD Stores (independent discount retailer in the east of England) – full story
• Elgin: Poundland – full story
• Hawick: Farmfoods – full story
• Kingston-upon-Thames: Clas Ohlson – full story
• Leigh: Tesco Express - full story
• Nottingham: Poundworld – full story
• Peterhead: Iceland – full story
• Reading: Clas Ohlson (tbc – planning permission applied for) - full story
• Rotherham: B&M Bargains – full story
• Rustington: The Original Factory Shop – full story
• Stourbridge: Home Bargains – full story
• Thurso: Ethel Austin^{[broken link removed]} – full story
• Uckfield: WHSmith – full story
• Waltham Cross: British Heart Foundation (tbc – planning application submitted) – full story^{[broken link removed]}
• Wick: Ethel Austin – full story
• Worksop: B&M Bargains (tbc) – full story
• Wymondham: The Co-operative Food – full story^{[broken link removed]}

Meanwhile, the old Woolies in Rye looks set to become the town’s new library. This is positive in the short term in so far as it brings an empty building back into use. In the longer term, I’m not sure whether the viability of town centres is best served by taking over prime retail units for non-retail functions…