Oct 15, 2012

ADM Londis plc, the Irish grocery retail group, today revealed the major impact its Centralised Chilled Distribution facility has had across its network of Londis retailers nationwide.  Over 90% of retailers have reported widespread satisfaction with the facility which has delivered average price savings of over 6% and increased margin to their businesses.  The successful impact of the Chilled Programme was detailed at the ADM Londis National Retailer Conference in Killarney where Phase II of the Chilled programme was unveiled.

The evolution of Centralised Chill for Londis retailers has considerably enhanced their ability to compete across the key chilled, deli, meats and cakes categories.  Facilitated by the development of Londis’ bespoke web based ordering platform iSIS, which provides live information on product sales, stock levels and best sellers Londis Centralised Chill has signalled a competitive step change for the Group.  Suppliers to Londis have also welcomed Centralised Chill with the Group reporting that turnover of participating suppliers has increased on average by 60% as a result of the nationwide distribution network now provided through Londis. 

Reflecting on the benefits of Centralised Chill to his store, Londis retailer, John Shiel commented “since Londis launched its Centralised Chill facility I have experienced significant savings in terms of price reductions and operational efficiencies. We have more products on promotion than ever before and my consumers have commented on the value we are delivering.  Furthermore, Centralised Chill means that I have much greater control over the offering which means we’re experiencing less waste which is crucial to my chilled margin”.   

Building on this success, the Group has now announced the roll out of Phase II.  This evolution of the Group’s Centralised Chill offering will bring more market leading brands on line with a corresponding reduction in supplier deliveries on the shop floor leading to even greater operational savings for retailers.  With the addition of over 400 product lines as part of Phase II, the Chilled offering from Londis will grow to approximately 1,200 products.  Such is the breadth of the range that most leading dairywall brands are now available to Londis retailers through the centralised chill facility. 

Phase II will also result in the availability of Nisa Today’s chilled private label range to the full Londis estate on a weekly basis.   Coupled with the immense growth of the Londis own brand range, which has more than doubled since the advent of Centralised Chill, Londis retailers are well placed to respond to the greater consumer demand for private label.  Furthermore, as we move towards the crucial festive trading season, Londis retailers will be guaranteed a consistent level of festive stock including turkeys, hams, fish, puddings, fruit and veg which will now be delivered via the Chilled facility avoiding any seasonal supply issues.  Technology has played a big role in the success of the Centralised Chill offering with last year’s roll out of iSIS and the provision of iPAD technology to each Londis retailer. 

A survey of their retailers, in advance of today’s conference highlights unanimous retailer support for the Group’s technology deployment with Londis retailers citing enhanced flexibility, mobility, enhanced visibility of deals and a more targeted consumer offering as the principal benefits of the Group’s technology investments. 

Concluding, Stephen O’Riordan, CEO, ADM Londis said, “The immediate impact of the Centralised Chilled Distribution programme has been felt right across our estate of Londis retailers. As a Group owned by retailers for retailers, our priority is ensuring that savings generated are passed on to our retail members. As a result Londis retailers  are in a new place competitively and Londis consumers are enjoying a vibrant in store offering, broader ranges and lower prices, which given the continued pressures on household purses will be welcomed.  Of course, the success of Centralised Chill is due in no small part to the effort and dedication of our supplier partners, and we are delighted that these suppliers are also experiencing benefits in the form of higher turnover through our distribution facility”.     

The 2012 ADM Londis Retailer Conference took place at the Malton Hotel in Killarney with Miriam O’Callaghan acting as MC for the 200 Londis retailers attending. The Conference featured guest speakers Alf Dunbar an expert in customer service, Dr Melrona Kirrane who spoke on the topic of consumer psychology and Irish soccer legend Niall Quinn who spoke on his experiences in both sport and business.

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