Supermarkets have been ramping up their concession partners in stores of late, however, not every tie-up works.
Earlier this year, B&Q ditched its Asda concessions to focus on launching its own smaller format stores.
Grocery Gazette takes a look at all of the supermarket partnerships that have been pulled from stores.
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Tesco – Pret A Manger
In September 2022, Tesco ended its in-store concessions trial with Pret A Manager after just over a year.
The UK’s largest retailer teamed up with the coffee chain in May 2021 as part of a trial to broaden Pret’s appeal and offer a more diverse range of products.
Tesco delisted Pret’s coffee range from its stores just days before it was revealed that the partnership would end.
Tesco originally planned for five shop-in-shops to be opened in the UK, but only one was ever opened in Peterborough.
Tesco – AO.com
AO.com ended its trial with Tesco in July 2022, after first opening five concessions in the Big 4 grocer’s Extra stores in the autumn of 2020.
The partnership marked AO’s first move into physical retail space but was interrupted by Covid lockdowns as its electricals concessions were classed as ‘non-essential’.
AO.com was hit by the online downturn last year, which saw it focus on profitable sales and exiting loss-making parts of its business, including the Tesco trial.
Sainsbury’s – Lloyds Pharmacy
LloydsPharmacy revealed it was pulling out of 237 pharmacy sites within Sainsbury’s supermarkets in January 2023, seven years after buying the in-store services for £125 million.
The pharmacy chain said at the time that it was ditching the concessions following a strategic review which it launched “in response to changing market conditions”.
It comes amid government funding concerns across the pharmacy sector.
The concession closures put more than 2,000 jobs at risk.
LloydsPharmacy chief executive Kevin Birch said: “This decision has not been an easy one and we understand that our patients and customers may have questions about how the change will affect them.
“We would like to thank them for their continued support and assure them that we are committed to providing a smooth transition over the coming months.”
Asda – B&Q
B&Q ended its Asda in-store concessions in February 2023, as the DIY retailer focuses on its smaller format high street stores.
The eight shop-in-shops it had opened since the partnership was formed in 2020 closed in March.
The move affected 57 members of staff, who were all offered alternative employment at B&Q’s stores.
An Asda spokesperson said: “Following a test-and-learn trial between B&Q and Asda, both businesses will continue to build on the learnings but will not be continuing with the concessions in Asda stores.
“The proposition was well received by customers and Asda will use the lessons learned to help inform its wider concessions strategy.”
1 Comment. Leave new
Why don’t the supermarkets use their excess space to compete with the variety store discounters such as B&M, Home Bargains and Poundland? There are lots of fast-moving lines in these stores which would sell well in supermarkets.