communityshop SGF Members’ Update June 2017
In this issue 2
SGF ACHIEVES MAJOR AWARD
Booker Merger SGF Healthy Living Programme
3
Resource Efficient Scotland
4&5
Mini Summit
6 Business Rates
Pete Cheema, Chief Executive, and Pauline Mullen, Business Manager, Scottish Grocers Federation
SGF is delighted to announce an historic first for the organisation. In a UK-wide competition the Federation has been recognised as the Best Food and Drink Trade Association by leading industrypublication Trade Monthly Magazine. Speaking on the awards Rachel Davenport, Awards Coordinator at Trade Monthly said, “The 2017 Food & Drink Awards raises a glass to those whose
devotion, innovative thinking, and tireless efforts have seen them achieve outstanding results. The extraordinary performance delivered by those in this industry, deserves to be both rewarded and recognised, and we are proud to have that honour.” SGF Chief Executive Pete Cheema said, “We are delighted to accept this award on behalf of our members and on behalf of our National
Executive. It is a recognition of the success we have had in promoting and supporting our industry. We are committed to demonstrating value to all our members and helping to advance their interests. This award is not just for SGF but for the entire convenience retail industry in Scotland. This is a proud day for all of us. The award gives us a great platform for moving towards our centenary year in 2018.” Since 2015 SGF has seen its retail and corporate membership increase significantly, has radically restructured its events to make them more relevant to members and created effective partnerships with the Scottish government and other key stakeholders. 2016 also saw the Federation playing a pivotal role in establishing the first Cross Party Group on Independent Convenience Stores in the Scottish Parliament.
NVP GUIDE BECOMES THE GOLD STANDARD 7 The Voluntary Action Fund Notes From the President
8 New Laws for NVP Products
SGF’s retailers’ guide to the Scottish regulations on Nicotine Vapour Products (NVPs) has proved to be a major success in enabling stores to comply with the new laws. Three and a half thousand hard copies of the guide have now been distributed to retailers though local authority Trading Standards. Commenting
on the hugely positive impact, Peter Adamson, Chair of Trading Standards Scotland said, “The printed guides produced by the Scottish Grocers Federation are an excellent resource for Scottish local authority trading standards, and are being distributed to those selling NVPs to ensure they are aware of the new NVP legislation. They are clear and informative and are well received by retailers.” The new regulations, which came into effect on 1st April mean that NVPs are now fully age-restricted products, sale by
staff under-18 must be authorised and introduced a new tobacco and NVP register. The guide was produced in partnership with the Scottish government. SGF Head of Policy Dr John Lee said, “We are delighted that the guide has proved to be such a success. It ensures that our members are trading within the law and promoting responsi ble community retailing. This type of partnership with the Scottish government – and with trading standards – is what we want to build on for the future.”
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Tesco Booker merger all about growth Charles Wilson, CEO of Booker Wholesale, gave the keynote address to this year’s SGF Business Summit. The appearance of such a highprofile industry figure – and the recent announcement on the proposed merger with Tesco – ensured a big attendance as almost 200 delegates packed the Inchyra Grange Hotel in Falkirk. The theme of the summit was the impact of technology on retail but, as Wilson himself readily admitted, it was inevitable that the audience would want his views on the background to and potential impact of the proposed merger. His message was clear and consistent: the key driver for both Tesco and Booker was the potential for growth in a highly competitive market. The synergies and strategic fit that both parties brought to the table would drive growth, ensure efficiencies across the supply chain, deliver a better service to retailers and ultimately improve the offer to consumers. The key aim was to optimise efficiencies and ensure that there was no waste across the supply chain. During a lively panel discussion, it was put to the Booker CEO that the merger would
Charles Wilson, CEO of Booker Wholesale, with SGF Chief Executive Pete Cheema.
strengthen the hand of a large supermarket which had in reality been trying to drive independent retailers out of the market. Wilson responded strongly by saying that this was missing the point: anyone who could analyse the numbers could see that the real threat now and in the future would come from companies like Amazon and their internet-based grocery offer. Commenting on the summit, Charles Wilson said: “I was delighted to attend the SGF Summit. The big turnout highlighted how successful SGF has become in putting on events which provide their members with
real value and something tangible to take back to the business.” The event also saw an excellent presentation from Booker retailer Mandeep Singh from Sheffield. He showed how being proactive on social media can boost both sales and footfall and concluded strongly that “technology is the best weapon we have for fighting back”. Another key speaker was Keith Brown MSP, Scottish Government Secretary for the Economy. Brown reiterated his pledge to work with SGF and support the Federation’s Scottish Parliament Cross Party Group on Independent Convenience Stores. SGF Chief Executive Pete Cheema commented: “We received outstanding support for our event from both Booker and Coca-Cola and this helped to ensure its success. Having Charles Wilson on the programme undoubtedly helped to ensure that this was one of our best attended events. Delegates got to hear at first-hand about the Tesco merger – the biggest development in our industry for decades. We also saw how technology can help retailers to take advantage of changing shopping behaviour and stay competitive.”
Our Healthy Living Programme continues to grow from strength to strength The SGF Healthy Living Programme (sponsored by the Scottish Government) continues to succeed and the good news is that a new structure and business plan have been approved and now only await the final decision on the budget to deliver the actions in the plan. The most recent new activity has been the introduction of Healthy Eating Days held in convenience stores where pupils from the local Primary School visit the stores and, of
course, the Big Breakfast which is held in the local schools. The SGF Healthy Living Team make the first contact with the school Head Teacher and organise the day as well as attending on the day to give the children an educational talk on the benefits of healthier eating. They are given samples of fruit to eat and leave with a “goodie” bag. The schools are delighted with this activity and usually work on a “health” project around this day. The retailer gains very much from the profile that the store receives with parents of the children, increasing their footfall to the store and of course gives the store that real “community shop” feel! So far this year 2,500 primary school children have attended one of those events and the response is just “FANTASTIC”. If you have not yet held one of those
events then all you have to do is contact the SGF Healthy Living Team through Ann on 0131 343 7602 and we will do the rest! If in doubt then feel free to contact a store such as Greens of Markinch, Broadway Premier Edinburgh, Spar Hawick, Brownlies in Biggar, Day to Day in Ayr, Mo’s Convenience Blantyre, Usave-Touch Dunfermline, who will all wonder why you have not already done so! Nothing but happy smiling children!
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Convenience stores advised to act fast to enjoy Scottish Government funding
Free support to reduce your energy, water and raw material bills Resource Efficient Scotland is a programme from Zero Waste Scotland, funded by the Scottish Government and the European Regional Development Fund.
Convenience stores in Scotland can use the loan from Resource Efficient Scotland to reduce energy use and boost profit by installing new refrigerators or upgrading to LED lighting”
The programme provides expert advice and support to small and medium sized enterprises (SMEs). It makes reducing resource use and unlocking savings on energy, water and waste as quick and easy as possible. Through the programme, SMEs can also access financial support to fund resource efficiency improvements, including a range of interest-free loans and grants from the Scottish Government. Find out about the support available to your business by speaking to one of Resource Efficient Scotland’s friendly advisors on 0808 808 2268, or by visiting www.resourceefficientscotland.com
Did you know… • Businesses that access free Resource Efficient Scotland support identify average savings of £16,000 per year • In the past four years, Resource Efficient Scotland has provided £23.5m to Scottish businesses • Nine out of 10 business that received free Resource Efficient Scotland support would recommend the programme to a colleague
Resource Efficient Scotland is supporting small business owners to cut energy use, save money and boost their profits
Convenience stores in Scotland can access up to £100,000 in funding from the Scottish Government and European Development Fund to reduce energy use and boost profits. Energy, water and waste are major costs for convenience store owners. And with the price of electricity and water in Scotland expected to rise over the coming years, small businesses are bracing to take a hit to their profitability. To help convenience stores to hold onto their hard earned profits, the Scottish Government’s Resource Efficient Scotland programme is encouraging business owners to apply for free support and funding to cut their resource use. The support currently available includes interest-free loans of up to £100,000 and capital grants of 30% of the cost of purchasing equipment to cut energy, water and waste costs. Goldenacre Mini Market in Edinburgh is one of hundreds of stores in Scotland to receive a Scottish Government loan through Resource Efficient Scotland. The store used this to buy new double-glazed refrigerators and upgrade to energy efficient lighting. As a result, it is saving almost £1,800 on its yearly energy bill. “I am delighted with the new refrigeration cabinets and the LED lighting,” said Aleem Farooqi, Goldenacre Mini Market owner. “The support from Resource Efficient Scotland helped me to identify and fund the changes to my shop, and I am really happy with the results.’” At the other end of the country, Harris Community Shop in the Outer Hebrides also received support from Resource Efficient Scotland. It used the funding to buy highefficiency refrigerated display cabinets. The cabinets have reduced energy use by around 40%, saving £3,750 per year. “Resource Efficient Scotland made it easy to justify the investment in new refrigerated displays,” said Chris Ross, Harris Community Shop Chairman. “The money we save will be reinvested into expanding the business and enhancing the quality of service for the community.” To find out how you can access funding and support while it is still available, and use it to save your business money, call Resource Efficient Scotland at 0808 808 2268 or email enquiries@resourceefficientscotland.com.
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Scottish Grocers’ Federation
Mini Summit 2017 This year’s Mini Summit focussed on technology as we believe that utilising technology is one of the most effective means retailers have in responding to changing shopping patterns and customer behaviours.
Exhibitors
Once again, we attracted top-level speakers and a very high attendance rate and we are determined to keep building on our success at our future events.
• Camelot
This was one of SGF’s most successful events ever with over 200 delegates attending!
• Dragon Soop
Speakers
• St Helier Sparkling Beverages
• Pete Cheema, Chief Executive, SGF
• CR Stocktaking Services
• Charles Booker, Chief Executive, Booker
• Golden Casket
• Jamil Mohammed, Group Digital Director, Booker
• Keep Scotland Beautiful
• Mandeep Singh, Booker Retailer
• KP Snacks
• Andrew Frost, Retail Sales Manager, VCA Technology
• Maxxium
• Mark Biscoe, Commercial Director, Big DL/IAT
• MHouse Solutions
• Gerry Hooper, CEO Zapper
• Nestlé Confectionery
• Michael McDougall, Specialist Licensing Solicitors, TLT
• Paterson Arran
• Keith Brown MSP, Cabinet Secretary for Economy, Jobs and Fair Work Supporting Business
• Resource Efficient Scotland
Chair • Keith Black, National Account Manager, Maxxium UK Ltd
Sponsors
• AGL Wealth Management Ltd • Bobby’s
• Corinthian Brands
• HCC Black Strong Ciders
• SGF Health Living Programme • Snowshock • Subway • Golden Wonder • Under Age Sales • VCA Technology • Vertex Refrigeration, Air Condition and Shopfitting • Whyte and Mackay • Zapper
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2017 REVALUATION
BE PREPARED! The general revaluation took place in Scotland 01 April 2017, whereby all commercial properties were reassessed with rate payers advised of the new rateable value as proposed by the Assessor. Values are based on hypothetical rents as analysed as at 01 April 2015, in the main, when dealing with retail/offices and industrial/warehouse premises.
KEY DATES
and beyond should appeals not be registered.
RELIEF AVAILABILITY A number of areas are available to assist in dealing with non-domestic rate charges: • Small Business Bonus Scheme:
There are a number of key dates which are critical for consideration
100% Relief – Up to £15,000 rateable value (RV).
• 01 April 2017 – The effective date of the revaluation. Valuation notices and, as a result, rate demand notices will have been issued confirming the basis on the non-domestic rate calculation for the financial year 2017/2018.
25% Relief – £15,001 RV - £18,000 RV
• July 2017 – The proposed date of reporting to the Scottish Ministers by the Barclay Review, currently reviewing all aspects of non-domestic rates and how they are derived in Scotland. This review, while scheduled to report in July, is likely to be extended in view of the various representations that have been made. However, in our view, don’t be fooled into thinking that the Barclay Review will provide solutions regarding the current rateable values as proposed. The review and any actions therein, are likely to be after the appeal deadline date has passed and as such could create, in effect a false sense of security. • 30 September 2017 – The final date for appeals against the revaluation assessments. In the event that are appeals are not lodged by this date, there will be little opportunity to review the rates calculation, unless there is a material change of circumstance or an error in the initial value. Critical that appeals are lodged. In the event that there is unlikely to be any success in an appeal, they can always be withdrawn – however, there is limited scope to appeal thereafter against the revaluation assessment and values will be fixed until 01 April 2022.
APPROACH TO VALUE The results of the revaluation have created a number of situations in various areas, whereby values have enhanced considerably. When dealing with approach to value, in some cases the Assessor has departed from traditional zoning methods in valuing retail property, adopting an overall approach, this has led to substantial increases in values across the central belt. The revaluation is intended to take into account various swings/trends in value based on rental evidence, in some cases where rateable values have reduced, there remains question marks as to whether the levels of reductions as proposed are sufficient, bearing in mind the difficulties associated with the property market up to 01 April 2015 (the tone date for rental analysis).
TRANSITIONAL RELIEF Introduced to the hospitality sector following representations from the various bodies. Limits the increase to 12.5% plus inflation during 2017/2018 year, however no confirmation of approach to be adopted thereafter. The full impact of any proposed increases will flow through into the 2018/2019 year
25% Relief – When companies have a number of properties where the combined rateable value does not exceed £35,000 RV and the individual properties have a rateable value under £18,000 • Empty Properties – Commercial properties receive 50% relief for the first three months, thereafter charged at 90%. Industrial/warehouse/stores receive 100% for six months, thereafter charged at 90%. • Fresh Start – 50% relief in the first year in occupation, where rateable value is £65,000 or under. Property requires to be empty previously for a minimum period of 12 months. • New Start – New build owner after 01 April 2013, 100% relief granted for 15 months. • Listed Buildings – While empty, receive 100% relief. These are the principal areas of relief for non-domestic properties, full investigation should be carried out to ascertain whether any relief can be achieved.
CONCLUSIONS Barclay Review – Will not provide the solutions in the short to medium term and are likely to be long term adjustments, should any be actioned upon as ultimately recommended. Appeals – Must be lodged by 30 September 2017. The appeal will require to outline the formal grounds of appeal when dealing with the reasons for objecting to the proposed rateable value and incorporate an alternate value. Rate Relief – Full investigation should be carried out to ensure that all avenues in terms of maximising the relief availability is exhausted. The system in Scotland differs from the approach taken in England, whereby appeals can be lodged at any time. In view of the legislation in Scotland, there are very limited opportunities to appeal beyond 30 September in the year of the revaluation. This presents a very small window of opportunity in which to ensure that any rate liability as proposed is fair and reasonable. Professional advice should be sought in terms of the proposals as outlined and appeals duly lodged in order to contest any values put forward by the Assessors. For further commentary and/or discussion please contact Andrew Reilly at Andrew Reilly Associates Ltd.
Andrew Reilly MRICS IRRV Director Andrew Reilly Associates Ltd • Property Consultants Chartered Surveyors • 31 Rutland Square, Edinburgh, EH1 2BW T: 0131 229 9885 • M: 07795 568254 • E: a.reilly@andrewreillyassociates.co.uk
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Notes from the
President
W
Are you a business with a desire to support a good
By encouraging individuals and groups to work
cause and the money to do it, but you don’t know
together, and providing them with the means to do
where to start? Then we can help you.
so, we help them to achieve more, assisting their
Voluntary Action Fund (VAF) is a Fife-based
common effort to grow. As a result, we make their
organisation that takes the strain out of charitable, funding go further. VAF has the contacts, expertise and capacity
giving leaving generous businesses and
to manage charitable giving for businesses, large
philanthropists to get on with their day job.
and small, as well as for groups of businesses and
Last year VAF distributed almost £16m to community projects and good causes on behalf of the Scottish Government and private donors. We have 35 years of experience in this field
professional and commercial associations. We have a database containing the details of hundreds of charities across Scotland that
and now we’re seeking to expand our work to
we’ve worked with over the years and business
help businesses, whatever their size, to manage
connections across Scotland. In addition, we have
their charitable giving and corporate social
experience of working with private donors and high
responsibility (CSR) projects.
net worth individuals. We’re successful because we have a well-
At the heart of everything VAF does is its commitment to promote equality of opportunity,
established and audited fund management
diversity and inclusive growth.
process and a transparent and measureable, outcomes-based system of reporting.
What marks us out as different from other
From promoting available funds, assessing
fund managers, is our commitment building relationships, shared values, trust and reciprocity.
applications and distributing funds through to the monitoring and evaluation of progress and publication and dissemination of outcome-based reports, VAF brings a high degree of professionalism, rigour and fairness to the grant-making process. VAF is the only social funder that promises ‘more than just money’ to the people it works with, helping to build long-term, sustainable relationships between businesses and the charities they support.
We are
• Zapper
delighted
• Big DL
to
welcome on board SGF’s newest corporate members
• Nabco Scotland • AGL Wealth Management Ltd • Andrew Reilly Associates • Kato Enterprises • Velocity Worldwide • The Retail Data Partnership • Natural Balance Foods
e seem to be in a never-ending cycle of referenda and elections. Whether it is the Independence Referendum, the referendum to leave the EU, local elections or the UK general election, big political decisions are always on top of us. Underlying all of this is the fact that we can’t take our foot off the gas when it comes to political engagement, influencing and lobbying. There are big issues impacting on our industry at both UK and a Scottish level. Obviously one of the biggest issues we have is the National Living Wage – the retail industry has seen the biggest impact with over 500,000 workers affected. There is a real danger that if this continues to rise our businesses will become unsustainable. Another issue is the possibility that a Deposit Return Scheme might be introduced in Scotland. This would impose significant costs and disruption on retailers. I recently attended a roundtable event on deposit return, organised by the Scottish Government. It was painfully clear that the environmental lobbying groups campaigning for the scheme have absolutely no idea of the potential impact on businesses. Our invitation to them was to visit a store, get behind the checkout and get some real-world experience of the potential impact. We will see how many of them take this up. These two issues are just examples of why we need to keep up the pressure politically. Our cross party group is a great way of doing this and we are holding a hustings event to give SGF members an opportunity to engage with the key issues in the UK general election. A big factor in making sure this engagement is a success is the active involvement of retailers. Increasingly ‘going local’ and letting our own MSPs and MPs know directly how they can support our industry will be the key to success. Yours
s i n n e D