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Food, Beverage & Hospitality
Published: 27 Aug 2014

Budget Bakery

Extra
Croissants are just one of the items on sale at the 99p Stores

British discount retailer 99p Stores is tapping into the flourishing food-to-go market with the launch of a takeaway bakery and coffee concept in one of its UK shops.

The first bakery, which opened in the chain's Northampton store earlier this month, sells a range of pre-prepared baguettes, pastries and croissants for 99p ($1.65) each.

Meanwhile, hot drinks – including lattes, cappuccinos and hot chocolate – will be produced using a Nescafe Alegria machine and will all retail at 99p. The store will also offer a deal that includes a takeaway coffee and pastry for £1.59, a significant saving on the price offered at many high-street coffee shops. The retailer is set to refit 60 stores this year, many of which will include the new bakery and coffee option.

The move is another example of a discount retailer extending its remit and moving more into the mainstream – a trend that Stylus has been tracking for some time. In the UK, major supermarkets are losing ground to cut-price rivals such as German-owned Aldi and Lidl, while in Europe, one-euro stores are proving a hit with budget-conscious consumers.

As reported earlier this year, supermarket giant Tesco installed pound-shop zones in hundreds of its UK outlets in a bid to tap into the popularity of budget stores. For more on the way in which the climate of economic austerity is driving the dominance of discount retailers, as well as responsive tech and dining models, see Rebranding Budget.

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