With news emerging that five Wilko stores will be brought back to high streets and retail parks by new owner The Range, Retail Week explores what the value variety retailer has been doing to cement its place as a staple in UK retail
Value variety chain The Range has been a part of British retail since it opened its doors in 1989 under its previous name, CDS Superstores, and is best known for its assortment of home, leisure and garden products.
Being a business known for keeping itself to itself, the retailer hit the headlines in September when it was announced that it would acquire Wilko’s brand, website and intellectual property for £5m, and it resumed online trading in mid-October.
Despite trading for more than three decades, it seems The Range has recently found its momentum. We take a look at its journey to becoming a successful discounter and popular UK retailer.
Journey to growth
Former market trader turned billionaire Chris Dawson founded The Range in Plymouth nearly 35 years ago and the business has steadily grown to reach a portfolio of over 210 stores stocking 65,000 products.
UK sales soared 34.5% to £1.2bn in 2020 off the back of lockdowns, with sales steadying to a growth of 4.3% in 2021.
“The Range is one of the UK’s fastest expanding retailers and has really taken advantage of some major opportunities in recent years,” says Retail Week data and insights director Lisa Byfield-Green.
“It gained a lot of new customers and footfall in 2020 during the pandemic, as its classification as an essential retailer allowed stores to remain open when others were closed.
“During the pandemic, the retailer acquired a huge number of new customers, many of which have remained loyal.”
Dawson remains The Range’s executive chair after handing over the role of chief executive to Nigel Oddy in 2017. Oddy was replaced by Alex Simpkin in 2019.
Pre-Covid, The Range’s leadership debated floating the business. Since Simpkin took the top job, The Range has more than doubled its total online sales to 10% of total sales in 2020, with plans to double that to more than 20%.
Simpkin told Retail Week the company is “excited” with the new Wilko store openings as they will “complement” its existing multichannel offer.
He says: “The business continues to seek opportunities to expand its growing store portfolio and has ambitions to open 20 to 25 new stores next year, subject to availability.
“The group is in a strong position to deliver on its ambitious growth plans and we head into our Christmas period with an exciting range that our valued customers will love.”
Byfield-Green is also confident The Range can keep its momentum and believes the discounter could be “back in double-digit growth” in future.
Overcoming competition
The Range’s emphasis on its retail park locations plays a huge part in its growing success as out-of-town destinations have been performing and recovering more strongly than high streets and shopping centres since the pandemic.
The retailer has been capitalising on this and bringing Wilko back to bricks and mortar is expected to continue that success.
This decision is a “savvy one” according to Byfield-Green as it helps bring new customers into the stores.
GlobalData retail analyst Sophie Mitchell agrees: “It bought Wilko’s IP relatively inexpensively. The Wilko brand is trusted by consumers and it should help to build The Range’s brand further by association.
“The Range’s biggest rivals are the other discounters. Both B&M and Poundland added to their store estates through the Wilko administration, despite already having much larger store estates than The Range.
“Through opening Wilko stores, it will be an opportunity for The Range to increase its store estate and have a greater presence across the UK.”
By having a growing store portfolio, improved online channel and taking over Wilko’s brand and website, The Range has a better chance to compete with the other discounters online and offline.
But Mitchell says it “cannot be assumed” that reopening Wilko stores will be successful for The Range based on shoppers’ love for the brand alone.
“The Range will need to invest in keeping prices low and making Wilko competitive with the other discounters,” she says.
“A highly strategic approach to where it reopens stores will also be essential.”
No comments yet