Laugfs Sunup Supermarkets to be rebranded as Laugfs Supermarkets

Tuesday, 29 November 2011 01:45 -     - {{hitsCtrl.values.hits}}

By Dinali Goonewardene

Laugfs Sunup Supermarkets Pvt Ltd. will be rebranded as Laugfs Supermarkets, given the superior strength of the Laugfs brand and the fact that customers are comparatively unaware of the Sunup brand.

The supermarket will expand to 50 outlets within the next three years from the present 25, Laugfs Sunup Chief Executive Officer Ravi Dahanayake told the Daily FT.

Strategic research carried out by MTI Consulting revealed that the Sunup brand was not known and the Laugfs brand associated with Laugfs Gas was strong, he said. “When a customer walks in they call it Laugfs not Sunup,” he said.

The company will need Rs. 250 million to Rs. 300 million to expand and will use internally-generated funds. The stores are presently located in the Western Province and are differentiated by being located either next to a fuel station or restaurant.

The supermarket at Havelock Town is located next to a restaurant and fuel station and the one in Negombo is next to the Jade Restaurant, offering Chinese food and owned by Laugfs. The supermarket is also differentiated through its extensive product range of 30,000 products, special service and polite teams.

Busy periods are the festive months of April and December although October 2011 has seen steady growth, recording an 8% month-on-month increase. “Consumer sentiment appears to be improving; we see an improvement in lifestyles in Sri Lanka, with youngsters getting new jobs and people from villages too shopping at supermarkets,” Dahanayake said.

The supermarket has 12 departments, ranging from grocery to wines and pharmaceuticals, with each department carrying 4,000-6,000 products. The floor plan facilitates a smooth flow of customers and shelf space favours fast-moving items.