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For the American entrepreneur, businessman and trader, see William Henry Low.

William Low & Co plc
IndustryRetail
Founded1868
FounderJames Low
William Low
William Rettie
Defunct2 September 1994
FateTaken over by Tesco
SuccessorTesco
HeadquartersDundee, Scotland, UK
Key people
Philip Rettie
Ian Stewart
James Millar[1]
ProductsGroceries
Number of employees
8,981[2]
SubsidiariesLowfreeze
McTatties

William Low & Co plc, popularly referred to as Willie Low's and latterly marketed as Wm Low,[3][4] was a chain of supermarkets headquartered in Dundee, Scotland. Initially founded in 1868, Low's had branches throughout Scotland, North East England, Cumbria and Yorkshire. As a group it was smaller than most of its competitors and often served small towns, although it still had several large hypermarkets.[5] Low's use to trade on their Scottishness as a unique selling point in Scotland. [6] At one stage, the company also ran a chain of frozen food stores known as Lowfreeze.[6] Lowfreeze was sold in 1987 to Bejam.

The remaining business was purchased by Tesco for £257M in 1994. Tesco had to compete with rival competitor Sainsbury's for the chain, with both companies looking to expand their foothold in Scotland. Following on from the takeover, the 57 William Low stores were converted to Tesco. Prior to this, there were only around 17 Tesco branches in Scotland. The purchase of Wm Low by Tesco moved them to the largest supermarket chain in the United Kingdom, beating Sainsbury's for the first time.[7]

Early years

James Low, who was born near Kirriemuir in 1849, completed a grocery apprenticeship in Kirriemuir before moving to Dundee in 1866. Two years later, with a £300 bank loan from Clydesdale Bank, he opened his own grocery store at 19 Hunter Street. By 1870 he was listed in the Dundee Directory as a grocery, tea and wine merchant at 11-13 Hunter Street. At this point, James's younger brother William joined the business at the age of 12.[8] A year later James Low and William Lindsay, a local preserve, confectionery and bakery manufacturing business owner, formed a partnership, Low & Lindsay, and by 1874 they had a further branch at 304 Perth Road and had moved into wholesaling. In 1879, James's younger brother, William, bought the business and it was renamed William Low & Co. By 1881, the Dundee Directory listed the business as wholesale grocers and wine merchants,[8] and the business had seven branches across Dundee.[9] In 1884, the company opened a warehouse and headquarters at Blackness Road.[9]

In 1885, William Rettie joined Low in partnership. Rettie was described in the 1877 Dundee Directory as a grocery and tea dealer, with stores in Rosebank Street and Dudhope Street. Rettie had married Low's sister, Annie in 1884.[9][10] The Dundee Directory of 1885 had listed that the company had eight stores.[11] The company opened a wholesale department in Glasgow in 1888, which facilitated the opening of six stores in the city by 1895, and the expansion of the business to 46 stores across different towns, including Crieff, Inverness and Stirling.[9] The company further expanded two years later when they purchased Farrquar and Farrell, an Edinburgh based tea and provision merchant for £5,000. The company continued to expand, and by the turn of the century, the business had 64 stores spread from Hawick in the South to Dingwall in the Highlands.[9] In 1917, the company became a private limited company with William Low as chairman.[12] The business not only had grocery stores, but their own bakery, bottling factory and butchery departments producing goods.[13] William Rettie died in 1922, and was replaced as Managing director by his son Archibald, while William Low died in 1936 a year after his only son.[14] At the start of World War II, Low's had eighty four branches and it was one of the larger grocery multiples but still smaller than the giants like Home and Colonial Stores.[15]

After World War II

By 1951, the company had recorded pre tax profits of £57,013.[16] In the same year Archibald died and would be replaced by his nephew Philip Rettie, joined by William Low's grandson Ian Stewart, who become joint managing directors in 1953.[14][17][18] During the 1950s, the company started a modernisation programme with the business closing smaller non profitable stores, replacing them with larger stores, and in 1958 opened it's first self-service store as an experiment in Bellshill.[19][20] A year later James Millar joined as the company's financial controller.[17] The self-service experiment by 1960, had grown to nine stores and by a year later reported that they accounted for 34% of the companies sales.[19] The company however would not follow other multiples, keeping a similar line as Sainsbury's by not adopting the issuing of trading stamps.[21]

The company quickly expanded its self-service stores, so by 1962 the business operated twenty six of them out of its portfolio of seventy five, with some branches having off-licences, and larger stores getting in-store butchery counters.[21] With the increase in turnover seen at self-service stores, the company opened their first supermarkets in Aberdeen and Broughty Ferry in 1963, following these up with further supermarkets opening in Lochee, Wishaw, Arbroath, Corstorphine, Fort William, Helensburgh and Kirkcaldy. At the same time older stores were being closed.[21] Sandy Leslie, who would later become the company's Retail Director stated that it was square footage of stores not the number of branches that was the new criteria to be measured by.[21] However, as the boss of fellow grocery chain Moores Stores would also state, the cost of developing supermarkets was expensive, there was too many supermarkets to be successful.[20][22][23] By the end of 1969, the company had modernised the store portfolio and had nineteen supermarkets, eighteen self-service stores and just five counter service shops, a reduction of thirty three stores from the total in 1962.[24] Supermarkets in 1969 accounted for 78% of the company's profits, with the business making a pre-tax profit of £260,180, but the profit margin was being squeezed by the growth of supermarket rivals.[24]

Modernisation and growth

Logo used during the 1970s and early 1980s (black and white version)

The company would continue to grow its supermarket portfolio, and by 1972 it had grown to thirty one with just ten self-service stores, an increase of floorspace of 25%, with James Millar stating that none if their stores were older than 15 years old.[25] This was further accentuated with the opening of a new head office and distribution centre at Dryburgh Industrial Estate in Dundee in October 1972, which jncorporated modern data processing and warehousing methods.[26][27] The company became a public limited company in 1973, launching on to the London Stock Exchange.[28] In 1975 the company launched the first Scottish freezer chain with the opening of the first Lowfreeze store in Glenrothes.[29] The company opened it's largest supermarket to date in 1976, with a brand new store in Irvine.[30] This was followed by the 1978 opening of the company's first superstore in Perth at the cost of £1.5 million.[25] The company moved into the low end of the market in 1976, when they launched their Discount Price Policy which was a year earlier than Tesco's own Operation Checkout.[31] By 1980, the average size of the stores had doubled since 1972, with the company having 46 supermarkets and 13 Lowfreeze stores.[25] Lowfreeze by this point were generating over £5 million of the company's £74 million turnover (far greater than 1970 when it was just £9 million), but the company's profit margins had fallen from 4.1% in 1970 to 2.4% by 1980.[32][33]

This shop in Dundee was originally opened as a William Low branch in the late 1970s. (Following the removal of newer signs, faint traces from the original "William Low" lettering are visible.)

Low's continued to grow in the 1980s included replacing stores, as in Kirkcaldy where a new superstore was opened in 1981, which not only sold food but also sold non grocery products like DIY and Bedding, and had a 125 seater restaurant.[34][35] Further developments included the new 10,000 sq.ft. store on the junction of Queensferry Road and Kings Road in Rosyth, a 20,000 sq.ft store in Baltic Chambers, Grangemouth and further new stores in Wishaw, Oban and Linlithgow that opened in 1982.[36] Low's moved into the fast food business in 1981, with the opening of McTatties, with restaurants opening in Glasgow and Edinburgh but this was unsuccessful and closed just a year later at a write down of £775,000.[37][38] During 1982, it was reported that Hintons, another supermarket chain were planning a takeover of Low's, and the current market valuation was £12 million.[39] Wm Low also rose to be included as number 400 in the Times 1000, a list of top UK Companies in 1984, whereas in 1976 it was not even listed.[40][41]

In 1984, Wm Low attempted but failed to take over Hintons, which later became part of Safeway.[6][37] By 1984 the company had reduced the number of stores, with WM Low's having 45, and Lowfreeze having dropped from a high of 17 to 16. However the average size of their stores had grown from 6,000 sq.ft in 1980 to 11,000 sq.ft, and turnover had grown to £150 million by 1984. The company had now an estimated 10% of the Scottish grocery market and had seen profit margins rise to 3.5%.[42] In 1985, Wm Low took over Laws Stores at a cost of £6.8 million.[43][40] Laws had a group predominantly based in the north-east of England with a portfolio of smaller stores than Wm Low. James Millar said of the deal,

We are no longer confined to Scotland's 5 million population as our market - we have broken out of that restriction to an almost limitless growth potential for the future.[37]

Laws was not the only acquisition that Low's tried to complete in 1985, with discussions held with Northern England based Hillards that went no further.[37] In 1985, Philip Rettie retired, leaving Ian Stewart, now deputy chairman as the only family member on the board, with the finance director James Millar taking on the role of Managing director.[42] During 1986 Wm Low closed unprofitable Laws stores, but the company's profits fell by £400,000, dragged down by Laws performance.[44][6] In 1987, Wm Low sold its frozen food chain, Lowfreeze, to Bejam for £3.8 million as it was only providing £10 million to the company's £233 million turnover.[40][37] During the same year, Low's lost out to Argyll in bidding for the UK business of Safeway.[6]

During 1988, Ian Stewart, the final family member on the board retired.[45] In April 1989, Wm Low attempted to a friendly take over of Budgens, a small supermarket chain based mainly in the South East of England. The bid however was withdrawn in May, after it was discovered that Budgens loan commitments were greater than previously be reported to them.[46][47][37] The pulling out of the takeover had cost Low's £2.5 million as a result of fees and having to pay for underwriting commitments which are no longer required. The company opened new stores in Dumfries and Northallerton.[28] In the 1988–89 trading year, Low's turnover exceeded £300 million for the first time and the company'sprofit margin had increased to 5.8%.[48][49] Low's by the start of the decade had 46 stores and 276,000 sq.ft, however at by the end of the 1980s the company had 63 supermarkets and 713,000 sq.ft of selling space.[37] The business at this point was the 10th largest Scottish company.[27]

In 1990, Low's were in discussion with Isosceles, owners of Gateway Supermarkets to purchase 81 stores for £212 million, with some to be be sold off to the Co-operative Wholesale Society to help fund the move, but this fell through as Low's did not want to take on Gateway's smaller outdated stores.[50][37] In 1991 the company made a pre-tax profit of £23.6 million, but in 1992 they had fallen to £19 million, even though the company had invested in five news stores including Milngavie and Whitehaven, which had added a further 100,000 sq.ft of retailing space to the company.[51][52]

Expansion into the north and midlands of England was a priority, with the £12 million, 30,000 sq ft (2,800 m2) Loughborough store opening in 1993. The company announced that this was the furthest south that the business would grow to as it was at the limit of the company's distribution network.[53]

The Scottish Business Insider quoted that Low's yearly performance figures for the 1990s were:[2]

  • 1991: £354 million turnover, £21 million profit
  • 1992: £394 million turnover, £23 million profit
  • 1993: £253 million turnover, £20 million profit
  • 1994: £446 million turnover, £21 million profit

Staff numbers at Low's, prior to the takeover had been reasonably static, from 8799 employees in 1991 to 8981 in 1994.[2]

The takeover

The takeover battle for William Low started on 14 July 1994, when Tesco announced its formal bid of £154 million for the company to dramatically improve its Scottish portfolio and an assurance it would not cherry pick the best stores.[54][55] J Sainsbury two weeks later launched a counter-bid of £210 million, with chairman David Sainsbury stating

Sainsbury was in the strongest position to unlock the potential of Low's stores. 'Our offer provides a fair price to Wm Low's investors and if accepted will provide a good return on investment to our shareholders.[56]

Sainsbury was keen to gain a stronger foothold in Scotland, having only 3 stores in Scotland at the time of the bid.[57] Tesco at the time had 7.1% of the Scottish grocery market, while Sainsbury's had 4.9% against Low's 6.6%.[56] Analysis at the time predicted that the cost, although 14 times what Low's earnings were, would be the same as building 25 new stores.[54] Analysts reported that Sainsbury's were interested in Low's 17 larger stores and its distribution centres, with Sainsbury's suggesting they had received bids for some of the smaller stores.[58]

The Argyll Group, owners of Safeway and Scotland's biggest grocery retailer, announced in July 1994 that it would not be making a bid for Wm Low.[59] Tesco reacted with an improved offer of £247 million and Sainsbury's withdrew from the battle, with David Sainsbury stating,

The original price Tesco offered for Wm Low made it fairly cheap. At the price Tesco will be paying now, we believe it can't possibly make a decent return.[60]

At the time Tesco products were on average 9% cheaper than Low's with analysts predicting that Tesco could lift the company's profits by £15 million.[61] However Tesco also had to take on Low's debt which stood at £77 million.[62] Tesco formally took over Wm Low on 2 September 1994 for a total sum of £257 million, ending 126 years of business.[63]. The purchase of Wm Low doubled Tesco's Scottish market share from 7.6% to 15.3% in 1995.[64]

Tesco closed the Dundee headquarters of Wm Low with the loss of 300 jobs, opening a smaller Tesco Scottish office to deal with local suppliers that only employed 20 people. [65] A re-fit programme followed and Tesco scanning tills were installed at every store by August 1995, with the refit being completed by the end of 1996 at a cost of £35 million.[55] At the time of the Tesco take over, a number of new Wm Low Stores were earmarked for development. These were ultimately launched as Tescos but had been planned by Wm Low. This included Aviemore,[66] Cupar, Falkirk and Dunblane, opened between 1995 and 1996.[67]

The Distribution Centre at the Dryburgh Estate in Dundee became the Tesco Customer Service Centre and one of two Scottish Distribution Depots for Tesco. The Distribution Centre was built in the mid 1970s by Wm Low with an expected 25 years life span. In 2006, Tesco announced the closure of the Dundee depot to create a brand new centre in Livingston on the site of the former NEC factory, which would also replace the current distribution centre already based in Livingston (now open as of October 2007).[68] The adjacent customer service centre was unaffected by the closure. The warehouse at Dundee was demolished in 2019.[69]

Prior to the take over, sales had been falling at a rate of 6%, a figure that Tesco reversed to a growth of 25% at the end of 1994-95 in the former Low's stores.[6]

1964 Aberdeen Typhoid outbreak

Main article: 1964 Aberdeen typhoid outbreak

On 6 and 7 May 1964, the Aberdeen branch delicatessen used a tin of Argentinian corned beef that had not been processed properly (and was infected with typhoid).[70] Due to the fact that the meat was sliced using a communal deli slicer, approximately 500 people were diagnosed in Aberdeen in 1964 with suspected typhoid. William Low was never successful in the city again with their branch closing in the city three years later.

References and footnotes

  1. ^ Agriculture in Scotland. H.M. Stationery Office. 1985. p. 14.
  2. ^ a b c Data collated by Centre for the Study of Retailing in Scotland Archived 27 September 2007 at the Wayback Machine (csrs.ac.uk). Sourced from Scottish Business Insider, January editions 1991-1998 (inc) and 2000-2004 (inc). Document retrieved 25 December 2006.
  3. ^ "From Woolies to Willie Lows: Lost shops of Inverness in six photos". Press and Journal. 30 April 2023.
  4. ^ "WM Low & Co plc". Bloomberg. Retrieved 13 March 2024.
  5. ^ Hypermarkets and Superstores. A World Survey. Euromonitor Publications Limited. 1983. p. 13.
  6. ^ a b c d e f Sparks. L (1 October 1995). "Restructuring Scottish grocery retailing: the rise and demise of Shoprite and Wm Low". International Journal of Retail & Distribution Management. 23 (10): 28–36. doi:10.1108/09590559510102469.
  7. ^ Nigel Piercy (2002). Market-led Strategic Change. A Guide to Transforming the Process of Going to Market. Elsevier Science & Technology Books. p. 712. ISBN 9780750652254.
  8. ^ a b Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. pp. 6–7. ISBN 9780900019364.
  9. ^ a b c d e Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 8. ISBN 9780900019364.
  10. ^ Publication Issue 56. The Society. 1953. ISBN 978-0-900019-56-2.
  11. ^ The Dundee Directory. 1885. p. 224.
  12. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 9. ISBN 9780900019364.
  13. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. pp. 10–11. ISBN 9780900019364.
  14. ^ a b Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 24. ISBN 9780900019364.
  15. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 34. ISBN 9780900019364.
  16. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 41. ISBN 9780900019364.
  17. ^ a b Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 40. ISBN 9780900019364.
  18. ^ Burdge, Richard (4 September 2013). "Businessman and Ballindean farmer Philip Rettie dies aged 86". The Courier. DC Thomson & Co, Ltd. Retrieved 17 January 2014.
  19. ^ a b Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 42. ISBN 9780900019364.
  20. ^ a b Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 47. ISBN 9780900019364.
  21. ^ a b c d Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 46. ISBN 9780900019364.
  22. ^ "Supermarkets:Moores". Investors Chronicle and Money Market Review. Vol. 219. 1963. p. 188.
  23. ^ "Wright's Biscuits". The Economist. Vol. 209. 1963. p. 177.
  24. ^ a b Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 48. ISBN 9780900019364.
  25. ^ a b c Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 51. ISBN 9780900019364.
  26. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 55. ISBN 9780900019364.
  27. ^ a b Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 61. ISBN 9780900019364.
  28. ^ a b "Low takes big loss on Budgens". The Herald. 16 May 1989.
  29. ^ "Modern Refrigeration". Modern Refrigeration. Vol. 78. 1975. p. 64.
  30. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. ISBN 9780900019364.
  31. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 53. ISBN 9780900019364.
  32. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 52. ISBN 9780900019364.
  33. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 54. ISBN 9780900019364.
  34. ^ "Wm Low's big move into Kirkcaldy's brand new Postings". Fife Today. 19 October 2018.
  35. ^ "The hope and hype behind the launch The Postings in Kirkcaldy". Fife Today. 14 September 2018.
  36. ^ "Scottish Developments". The Estates Gazette. Vol. 260. October 1982. p. 188.
  37. ^ a b c d e f g h Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 58-59. ISBN 9780900019364.
  38. ^ "Failed ventures". Caterer & Hotelkeeper. Vol. 173. 1982. p. 38.
  39. ^ "London Onlooker". Financial Times. January 1982.
  40. ^ a b c The Effect of Internal Growth and Takeover Activity on Concentration Levels in Retailing University of Stirling Working papers, 2005. Retailing in Scotland. Article retrieved 24 December 2007
  41. ^ Margaret Allen (1986). The Times 1000. Times Books. p. 40. ISBN 978-0-7230-0282-6.
  42. ^ a b Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 56. ISBN 9780900019364.
  43. ^ "Supermarket industry changes". Environment & Planning A. 28: 1474-1477. 1996.
  44. ^ J Love (1986). Scottish Economy.
  45. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 60. ISBN 9780900019364.
  46. ^ Athanasios Kouloridas (2008). The Law and Economics of Takeovers. An Acquirer's Perspective. Bloomsbury Publishing. p. 62. ISBN 978-1-84731-429-1.
  47. ^ "Takeover Panel". Accountancy. 105. Society of Incorporated Accountants and Auditors: 97. 1990.
  48. ^ "WM Low plc". Retail Business. Retail Trade Reviews. Vol. 9–16. EIU. 1989. p. 57.
  49. ^ Stewart Howe (2000). William Low & Co. A Family Business History. Abertay Historical Society. p. 57. ISBN 9780900019364.
  50. ^ "Getting the customer exactly right is the relevant way beyond 1992 Europe". Quick Frozen Foods International. 1 July 1990.
  51. ^ "Wm Low expansion continues". The Herald. 29 July 1992.
  52. ^ "A tough year over for Low". The Herald. 8 November 1991.
  53. ^ "Conquering space: the recent development of Wm Low". Environment & Planning A. 28. Pion Limited: 1478. 1996.
  54. ^ a b "View from City Road: Wm Low in supermarket hot seat". The Independent. 14 July 1994.
  55. ^ a b "Tesco to spend pounds 65m developing Wm Low stores". The Independent. 20 September 1994.
  56. ^ a b "Sainsbury tops Tesco bid for Wm. Low". UPI. 28 July 1994.
  57. ^ Calder, Colin. "Defeated Sainsbury to spend Pounds 100m". Sunday Times. Times Newspapers.
  58. ^ "Sainsbury trumps rival with pounds 210m bid for Wm Low: Analysts expect Tesco to increase its offer for the Scottish chain next week". The Independent. 28 July 1994.
  59. ^ "Sainsbury checks out Tesco bid for Low". The Herald. 15 July 1994.
  60. ^ "Tesco takes the Low Road to Scotland". JS Journal. September 1994. p. 3.
  61. ^ "Sainsbury checked by Tesco's pounds 247m bid: MacLaurin wins the war for William Low supermarket chain as rival declines to better 360p-a-share offer". The Independent. 3 August 1994.
  62. ^ "NEWS TESCO OUTBIDS SAINSBURY FOR SCOTLAND'S LOW CHAIN". Supermarket News. 8 August 1994.
  63. ^ "Tesco's sales overtake Sainsbury's for first time". Marketing Week. 14 April 1995.
  64. ^ Supply-side Changes in Food Retailing in Scotland, Healthscotland.Com, Document Retrieved 26 December 2006.
  65. ^ "Civic leaders question Tesco chairman on William Low takeover. No comfort for Dundee on loss of 300 jobs". The Herald. 11 August 1994.
  66. ^ JLP Development Consultancy Article retrieved 26 November 2007.
  67. ^ "Tesco expands in Scotland. #30m investment programme will create 915 jobs". The Herald. 22 September 1995.
  68. ^ "Tesco axes 432 jobs at distribution centre". scotsman.com. Retrieved 19 December 2019.
  69. ^ "Work begins to demolish former Tesco depot in Dundee". Evening Telegraph. ISSN 0307-1235. Retrieved 19 December 2019.
  70. ^ Diack, Lesley and Smith, David, Sensationalism and Secrecy: The Aberdeen Typhoid Outbreak, 1964 Archived 4 September 2006 at the Wayback Machine, History Scotland Magazine at historyscotland.com. Article retrieved 19 December 2006
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