28|Retail News|July/August 2011|www.retailnews.ie
Symbol Group Focus
Londis: A Unique Proposition for
Retailers
With significant price cuts and margin support initiatives, Londis is committed to supporting its retailers.
Originally founded as a cooperative society in 1954 and more recently converted in 2004 to an unlimited plc, ADM Londis offers a unique proposition to independent retailers. Almost 60 years have passed since the Group was first established and during this time, significant changes have taken place both within Londis’ business and within the Irish retail market. Throughout this time however, the Group’s cooperative roots have remained at the forefront of its retail strategy, underpinning Londis’ close and unique relationships with its retail members. Londis is a group owned by retailers for retailers. Overseen by retail directors, ADM Londis is not managed for the benefit of other private or institutional interests. This gives their retail partners every assurance that the Group is managed with their very best interests at heart. Londis are committed to supporting and assisting their retailers and offer the highest quality of franchise support. In recent times, this has meant significant reinvestment of Group profits into margin support initiatives on behalf of Londis retailers. The company’s structure means that they can give more back in terms of
deep promotional activity, strong rebate terms and other margin support initiatives to support Londis retailers through the current trading environment. Furthermore, Londis retailers enjoy profit sharing through shareholding in the Group.
New Store Openings
Londis’ stated aim for 2011 is to open 12 new stores, supporting an estimated 240 new jobs. This store recruitment objective demonstrates a strong show of faith by Londis in the Irish retail market and indeed, faith in the offering that Londis can bring to independent retailers. More than ever before, Londis are in a position to bring very strong benefits to prospective retailers.
Benefits of Membership
The main advantages in joining Londis can be summarised as follows: Sustainable Margin
The Londis franchise has evolved considerably in recent years. Firstly, as a consequence of their Retailer Owned status, Londis are able to offer more attractive prices and lower franchise costs than other groups. Londis members earn good margins at very competitive price points and the group has real examples of how they have increased the scanning margin of new retailers, compared to what they were achieving with other symbol groups. Group profits are reinvested in pricing, rebates and dividends to support retail members and are not distributed to other private or institutional interests.
With the highest quality of franchise support, Londis advises retailers across all aspects of their business. The Group recently announced a Green Scheme initiative in alliance with Crowley Carbon, which will see many Londis retailers save an average of 15% off their energy bills.