Easyjet Stelios to launch budget food store

Sir Stelios wants to being his low-cost expertise to food retailing

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EasyJet founder Sir Stelios Haji-Ioannou is launching a low-cost food retail business to undercut low prices offered by budget supermarkets Aldi and Lidl.

The entrepreneur announced plans for a pilot site in Croydon as his easyGroup company aims to cash in on the very cheapest end of the grocery market.

EasyJet founder Sir Stelios Haji-Ioannou

The new business will focus on a limited range of tinned and packet foods.

It has set up a website, easyFoodstore.com, which promises to be "coming soon".

Sir Stelios said: "I have a feeling that there is a gap in the food retail market – a niche below some of the current budget operators such as Aldi and Lidl.

"Concentrating on affordable, basic 'no-brand-name' packet and tinned foods at bargain prices, easyFoodstore underlines the need for additional reliable day-to-day provision of basic foodstuffs."

He added that no other details had been decided yet.

Sir Stelios said that the business could be expanded next year by taking advantage of weak property prices to buy up freehold retail sites.

The new grocery will aim to compete with supermarkets like Aldi

Recent retail figures suggest the UK grocery market is becoming increasingly polarised with the strongest sales gains coming at the top and bottom ends - with the likes of Waitrose doing well on one side and Aldi and Lidl on the other.

Sir Stelios said the venture was still at a very early stage, with a pilot store to open on the ground floor of a nine-storey building easyGroup has acquired in Croydon which is also expected to house its easyHotel, easyOffice and easyGym businesses.

The entrepreneur remains a major shareholder in easyJet but has recently objected to management plans to buy a fleet of new Airbus aircraft, threatening to take directors to court if the move destroys shareholder value.

• Related Stories:
• EasyJet Revenue Up 10.5% In Third Quarter
• EasyJet: Budget Airline Joins FTSE 100

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Cyprus Airways

Approval sought for emergency aid for Cyprus Airways

By Phil Davies

Aug 05, 2013 08:28AM GMT

 

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The Cypriot government is seeking clearance from Brussels to pump €17 million of emergency aid into Cyprus Airways in an effort to save it from bankruptcy.

However, the European Commission has already signaled concerns about continuing efforts to save the loss-making airline from collapse, according to the Sunday Times.

The commission opened an inquiry in March into whether the rescue attempts are in breach of EU laws on state aid.

A plan to restructure the carrier, which made losses of €55.8 million last year, are due to be presented to the EC this month.

Cyprus Airways received a government loan of €73 million at the end of last year and a further €31.3 million in January.

The government of Cyprus wants to provide the additional funding to enable Cyprus Airways to continue to fly tourists and potential investors into its two international airports.

Plans to turn the airline around include cutting its fleet from nine to six aircraft and make further redundancies to add to 490 jobs which are being cut by the end of the year. Staff that remain face a pay cut.

Cypriot finance minister Harris Georgiades, quoted by the newspaper, said: “We feel a locally-based carrier will give service to the economy. It won’t be profitable without radical decisions.”

But the commission said it doubted whether a “credible restructuring plan” is in place for the airline.

Cyprus Airways recently cut fares by 30% on routes to 15 destinations in Europe and the Middle East.

Measures to boost tourism include the implementation of an open sky policy to tempt foreign airlines to use the country’s airports for connecting flights.

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