It struggled to make profits during the 2000s, as superstore operators such as Asda, Tesco and Sainsbury's introduced their own budget brands, and foreign competitors such as Lidl, Aldi and Netto (who all arrived in the United Kingdom during the first half of the 1990s) expanded.

[1] For this reason, the plan was abandoned and the best Kwik Save shops were converted, based on location and market demand, receiving a full refurbishment.

On 27 February 2006, Somerfield Stores Ltd sold the brand and the remaining 171 shops to BTTF, an investment vehicle headed by Paul Niklas, for an undisclosed sum.

[13] According to a report in PR Week in April 2006, Kwik Save hired a marketing agency in a bid to revitalise the brand and reposition it as an alternative to the leading supermarkets.

[15] In December 2006, The Sunday Times reported that Kwik Save was suffering from a "sharp fall in sales and mounting losses", and was seeking another financial injection.

[16] On 22 January 2007, it was reported that Kwik Save was suffering problems over delays in payment to its major suppliers, with stocks of many core products being limited as a result.

BBC News also reported that Arla Foods UK stopped delivering fresh milk to the Kwik Save chain in the week beginning 21 May 2007, due to "payment problems".

[24] In April 2012, the Kwik Save brand was relaunched by its new owners Costcutter as a more budget oriented fascia offering for members of its symbol group of independently owned convenience shops.

[citation needed] Kwik Save shops were primarily aimed at the lower end of the food market, a position which was maintained throughout the company's history, except for the introduction of some non-food lines during the Somerfield era.

In the early years, when the company had little in the way of effective competition, this was a clear recipe for success among the millions of people who might have found the mainstream supermarkets expensive, so the brand was highly regarded.

Kwik Save was seen for many years as the poor relation of Somerfield, consisting only of shops which were considered unsuitable for conversion to the more upmarket fascia, resulting in a further dilution of brand strength.

In an effort to modernise the Kwik Save brand when under Somerfield ownership, the company undertook a programme to renovate its shops, which included new staff uniforms (a black and white chequered shirt which replaced the red T-shirts), new "Asda style" shelves to replace the wooden warehouse racking (referred to as "boards and beams"), new floors, checkouts, colour schemes and lighting.

Renovated shops devoted more space to fresh foods, introduced new features, such as bakeries, and removed the requirement for customers to pay for carrier bags which, for many years, was symbolic of the Kwik Save business model.

[27] In the 1990s, Kwik Save used adverts featuring Michael Barrymore promoting the Kwiksave Freephone Helpline, which people could call if they wanted to report prices cheaper elsewhere.