The union of Kwik Save and Somerfield has been described as 'a marriage made in hell.' Even kindlier commentators view the couple rather like two drunks propping each other up - if they can.
The creation of one strong contender from pairs of relative weaklings is rarely achieved. Thus, as the various components of British Leyland came together, the British-owned car industry dwindled away to virtually nothing.
The strong do tend to get stronger and the weak weaker (notably in supermarketing). But decisive management, backed by a cohesive organisation and pursuing a differentiated strategy, might still achieve miracles. Alas, the lack of clear decision, genuine cohesion and a meaningful difference explains the relative decline of the two partners.
Kwik Save is the sadder case, since for many years it had a truly unique selling proposition that carved out high profits and rapid growth. All formulas, though, eventually run out of steam. The strategic rethink forced on Asda by crisis is needed by all companies periodically - preferably when crisis is far away.
One of Britain's star retailers has just begun such an exercise. Retailing in the Milennium will not be the same: competition and e-commerce alone will see to that. Strategies forged for the 1990s have a limited shelf-life in any consumer business: witness PCs.
Compaq was riding the thickest winning streak in PC history in mid-1996 when it launched 'Crossroads', a project that challenged the company and all its works, above all the victorious strategy. With 15 cross-functional teams hard at work, the whole process was completed in a scant eight weeks.
If the supermarket twain can do likewise, they have a chance. The key issues are (1) how to strengthen and grow the core business (2) which new products and markets to invest in (3) how to reinforce the development and professional growth of all employees. For Compaq, the answers produced a transformed strategy and sweeping reorganisation.
Transformation comes especially hard to retailers, largely becayse they are unable or unwilling to break with the past. Make that break (and do it fast - eight weeks, remember) and even marriages made in hell can become heaven.
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