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.

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• 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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Tui New Affordable All Inclusive Hotels

Tui unveils new affordable hotels concept

By Phil Davies

Jul 25, 2013 06:44AM GMT

 

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A new concept of affordable three-star all inclusive hotels aimed at price-conscious holidaymakers is being introduced by Tui Travel.

SuneoClub is the first international group-wide ‘unique concept’ created by Europe’s largest tour operating group.

The properties will be exclusive to Tui Travel and initially be available in Menorca, Cyprus and Turkey from next summer.

SuneoClub will be sold exclusively through First Choice in the UK.

Designed and developed by company experts across all mainstream source markets, the initiative aims to appeal to international audiences.

The move is the latest in Tui’s drive towards modernising its offering in the mainstream holiday sector.

The hotels will offer modern rooms designed with a neutral base featuring splashes of bright colour.

Deputy chief executive Johan Lundgren said: “What’s great is that SuneoClub is the first of our international group-wide concepts.

“We have been working collaboratively across all our source markets and together we’ve created something truly innovative.

“SuneoClub has been designed for travellers looking for incredible value on a budget. This links directly into our mainstream strategy of designing holidays for specific customer segments.

“This product will deliver great quality at a really affordable price for our customers.”

First Choice product director Mark Hall added: “The SuneoClub hotels offer great value for money to customers, and we are delighted to introduce them from next summer.

“Our customers have told us that a comfortable and fun environment is really important to them for their holiday – therefore SuneoClub has been designed to provide excellent service, food and comfort teamed with a fun and relaxing sun and beach location.”

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Luxury

Opinion: Is luxury one of travel's most dangerous words?

Jul 24, 2013 08:27AM GMT

 

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The word luxury is becoming so over-used in travel that it is losing its meaning, says Brighter Group's Steve Dunne

Is luxury the most over-used word in the travel sector?

I only ask because most weeks I will typically have several new business tenders cross my desk that heavily feature the word.

The range of companies seeking PR or marketing services is eclectic at the moment – from boutique hotels to tourist boards, from international resorts to global hotel chains and from cruise lines to airlines.

While they are all vastly different products, with different customer profiles and different price ranges, one word seems to unite them all – luxury.

Nearly every brand, product and organisation in the travel sector, it would seem, cannot resist using the word.

I’ve never done a study on it but I wouldn’t mind betting it is one of the most common descriptive words in our industry for a product – any product.

But here’s the thing. Luxury is also one of the most dangerous words around, for luxury means different things to different people.

You and I, for example, may have very different views on what constitutes luxury – having arrived at our perception of the word by way of upbringing, cultural exposure and, of course, personal taste.

And if every brand uses the phrase luxury to differentiate itself then, by default, those brands are not truly differentiating themselves.

So why is it that everyone in travel seems to be jumping on the luxury bandwagon when marketing their product?

Why does every marketing person bandy the phrase around at the drop of a hat? Why is every press release and copy on websites and in brochures full of the word luxury?

One can only conclude that there may be a degree of laziness involved or, more likely, that these brands have simply run out of ideas on how to express themselves and differentiate their product.

Of course we are seeing that some travel brands have spotted this and have set to work changing their description, for example we now see emerging variations on a theme such as ultra-luxury, six-star, premium and upper premium.

However this doesn’t solve the problem; replacing one cliché with another rarely does. 

What travel brands need to do may be as simple as revisiting the vision and mission of the brand.

What is its position in the marketplace? How does it appeal to the emotional instinct of its target audience? What are its values and how do they resonate with the target customer?

Knowing the answers to those questions and positioning messages accordingly will prevent brands from hiding behind clichés that at best do not differentiate them and at worst fail to meet the expectations they build up in the customer.

So the next time you come across a travel brand using the word luxury ask – what makes you so different?  And let’s see what’s in a word.

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Cyprus Oil Spill

Cyprus Economy

WHEN it came to choosing between Scylla (a disastrous exit from the Eurozone) and Charybdis (the German crewcut), Cyprus chose to stay in the Eurozone. Whether this painful and courageous decision to save the island’s banks and its economy from total collapse was correct we shall never know.

At the present time discussions are continuing on the way forward and the banks should reopen for business tomorrow (Thursday).

Unlike countries outside the Eurozone, Cyprus was unable to devalue its currency or embark on a process ‘quantitative easing’; effectively printing more banknotes to stimulate the economy.

Since the bailout was announced, I have received literally hundreds of questions from those planning to holiday here asking if it’s safe, are there riots, will I be robbed? While those with those with property on the island have been sending me questions about their mortgage repayments and other matters.

Is it safe to visit Cyprus?

In a word YES – do not believe the stories you read in the gutter press, like the one that was recently published by “The Sun”:

“FAMILIES heading to Cyprus for Easter are being told to take plenty of euros – and try not to get MUGGED.”

The extraordinary Foreign Office advice came as the island teetered on the brink of financial meltdown.”

This is a lie; the advice from the Foreign Office says nothing about being mugged. The Foreign Office advises that visitors to the island should take“appropriate security precautions against theft.” This is the same advice it offers to British nationals travelling to many parts of the world – it doesn’t mean you should wear a crash helmet and a suit of armour when you visit the island to avoid being mugged!

My wife and I have lived in Cyprus for eleven years without any problems – and I first want to assure all those planning to visit that the island is perfectly safe – don’t cancel your holiday.

Contrary to other reports in the foreign press my wife and I, who bank with the Laiki, have been withdrawing cash from their machines and paying in shops, supermarkets and petrol stations with our Laiki debit cards.

Property and mortgages

I have received questions from many people asking if they should continue making their regular mortgage repayments to their banks in Cyprus, even though some of them are in difficulty and may not be around for much longer.

In a word, the answer is YES. Failing to maintain your mortgage repayments could result in penalties imposed by the bank for non-payment and the potential loss of the property.

Finance minister Michalis Sarris announced on state TV that alternative arrangements will be made for those with mortgages with the Liaki (Cyprus Popular) Bank.

Non-performing loans

As you may have read, the Laiki bank is to become the island’s ‘Bad Bank’ and will take over all non-performing loans. As regular readers will know, Cyprus had a unique way of classifying loans as non-performing as it did not count fully secured loans as non-performing even though they have not been serviced in 90 days.

I know that that many thousands of people, both Cypriot and foreign, were deceived into buying property built on land that a developer had mortgaged; a material fact that was concealed from them by disreputable developers, lawyers and banks.

The questions I am being asked is what will happen if the developer’s mortgage is classified as non-performing and is transferred to the Laiki ‘Bad Bank’.

I’m afraid it’s too early to say. Until the Memorandum of Understanding has been ratified by the Eurogroup and is in the public domain, no-one can say.

However, I would hope at the very least that those who have bought property with a mortgage and who are maintaining their mortgage repayments will be protected.

Commercial property

As well as property prices taking a dramatic tumble, commercial rents are also facing a downturn.

Many local businesses will face closure as the recession deepens resulting in many commercial properties coming onto the market. This will put further downward pressure on rents as well as prices – and if offshore companies decide to move elsewhere, further downward pressure will be put on prices of residential and commercial property as well as rents.