RETAIL
THE WEEK IN
EMERGENCY FUNDING
FINANCIAL SUPPORT
PORTALS OPEN FOR GRANT FUNDING
HOME DELIVERY
DELIVERY SERVICES SKYROCKET
OVER 600K DELIVERIES A WEEK
SHOPPERS GO LOCAL VIRTUAL ‘WHIPROUND’ RETAIL IS BROKEN RETAILER INTERVIEW
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THE WEEK IN RETAIL
EDITOR’S COMMENT SHARE YOUR NEWS AND VIEWS WITH ME AT ABEGLEY@55NORTH.COM
CAN WE MAKE HOME DELIVERY STICK IN THE LONG TERM? There are many interesting questions that covid-19 is posing the convenience retailing industry. One of the most interesting is home delivery. On the face of it and if done well, it can add £10,000 onto a store’s weekly turnover without impacting on in-store sales. That’s effectively like adding another small store onto the one you’ve got. There aren’t many solutions that can transform a store’s fortunes so dramatically. Home delivery has been bubbling around for a while with a lot of retailers talking about it but far fewer actually doing it. ACS’s Local Shop Report for 2019, for instance, found that only 10% of retailers were actively offering a home delivery service. Compare that with the findings of an ACS survey revealed this week that found that a whopping 65% of stores are now delivering products direct to their customers’ homes. Necessity may very well be the mother of invention and it just shows what the industry is capable of when it puts its mind to it. Coronavirus has massively accelerated the adoption of home delivery, that’s undeniable. But the bigger question is, what will happen
when lockdown ends and we return to normality, whatever that looks like? Having been forced to learn the basics of running a home delivery model and having established a database of shoppers who use the service, it seems like it would be a wasted opportunity to let home delivery slide after the dust has settled. It’s also highly likely that many shoppers who use home delivery services during lockdown will start to rely on them and find them useful and convenient. Why would you want to risk losing those sales in a post-coronavirus world? In fact, the sales that retailers make via home delivery could potentially end up being the most profitable legacy of covid-19 of all for our sector. Let’s face it, many shoppers will go back to using supermarkets - but a solid home delivery business has the potential to outlast the virus and continue delivering incremental store sales and profits long into the future. This is a gift horse that coronavirus has parked on our doorstep. It might be foolish to look it in the mouth.
ANTONYBEGLEY ANTONYBEGLEY @ANTONYBEGLEY
ANTONY BEGLEY, EDITOR
WEDNESDAY 6TH MAY 2020 / ISSUE 3 / SLRMAG.CO.UK / 3
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CONTENTS
WEDNESDAY 6TH MAY 2020 / ISSUE 3 WWW.SLRMAG.COM
6
13
THIS WEEK’S NEWS IN BRIEF
RECOGNITION COMES IN MANY FORMS
Government urged to back shopworker protection legislation as Scotland ploughs on with DRS.
Coronavirus outbreak sees the ‘key worker’ status of local retailers celebrated in a very unusual way.
10
16
COVID-19 UPDATE
18
14
OPINION
HOW’S YOUR WEEK BEEN… CRAIG DUNCAN? The former Costcutter Head of Business Development bought his first store in March.
21
PICKS OF THE WEEK
A ROUND-UP OF THE LATEST CORONAVIRUS
PROFESSOR LEIGH SPARKS SAYS RETAIL IS
WHAT NEW PRODUCTS ARE HITTING
NEWS FROM THE LAST SEVEN DAYS.
BROKEN. HOW DO WE FIX IT?
SHELVES THIS WEEK?
RESEARCH
20
OUT THE BOX
23
FASCIA UPDATE: COSTCUTTER
OVER A THIRD OF BRITS PLAN TO KEEP
NEW ONLINE WHIP-ROUND PLATFORM
THE SYMBOL GROUP IS AWARDED
SHOPPING LOCALLY AFTER LOCKDOWN.
ENSURES MONEY RAISED IS SPENT IN
GROCERYAID’S ‘GOLD’ STATUS.
LOCAL SHOPS.
TWITTER.COM/SLRMAG
WWW.FACEBOOK.COM/SLRMAG
WWW.SLRMAG.CO.UK
WEDNESDAY 6TH MAY 2020 / ISSUE 3 / SLRMAG.CO.UK / 5
NEWS DIGEST
THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
ALCOHOL CONSUMPTION SLOWS
SHOPWORKER PROTECTION
Somewhat remarkably, the
SGF URGES GOVERNMENT TO BACK SHOPWORKERS
results of the latest survey
SGF URGES SCOTTISH GOVERNMENT TO BACK VITAL
from CGA claims to show
SHOPWORKER PROTECTION LEGISLATION
that the majority of Brits are
The SGF is putting the Scottish government under pressure to support key legislation aimed at protecting convenience staff from abuse. In a strongly-worded letter to the Cabinet Secretary for Justice, SGF made it clear that one positive legacy of the current Covid-19 crisis must be to create a safer in-store environment. The intervention comes as the process around Daniel Johnson MSP’s Protection of Workers Bill reaches a crucial phase: the Economy Committee will approve the Bill to parliament or reject it this month.
drinking the same or less during lockdown. Some 83% of respondents said they were drinking the same, less or no alcohol while only 17% of respondents say they are drinking more than they did.
Regional Manager
(Scotland and Northern England) Motor Fuel Group, the UK’s largest independent petrol station operator, is looking for a Regional Manager based in Scotland to lead a team covering around 100 contract managed sites, using your skills and experience to grow the business across fuel, food to go and store ranges. Candidates will need: • A proven record of deliveringxxx standards and performance across multiple sites in the independent, motor fuel or grocery multiples sector. • To have successfully developed and managed a regional team. • Great commercial acumen. • The ability to communicate and influence a range of stakeholders. • Strong financial planning and control skills. In return we offer a competitive salary and benefits package. Visit www.motorfuelgroup.com go to the Vacancies section and apply online now!
6 I SLRMAG.CO.UK / WEDNESDAY 6TH MAY 2020 / ISSUE 3
NEWS DIGEST
THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
DEPOSIT RETURN SCHEME
SCOTLAND PLOUGHS ON WITH DRS DESPITE COVID-19 THE INTRODUCTION OF A DEPOSIT RETURN SCHEME IN SCOTLAND MOVES A STEP CLOSER AS KEY COMMITTEE VOTES THROUGH PROPOSALS PAVING THE WAY FOR THE SCHEME.
Scotland’s proposed Deposit Return Scheme has moved a step closer after the Environment, Climate Change and Land Reform Committee voted through the proposals after a formal debate. The scheme was recently delayed by 15 months until July 2022 and will see customers pay a 20p deposit when buying drinks in cans and bottles which will be refunded when they take them back to a store for recycling.
A proposal to charge a deposit on disposable coffee cups has been parked for the time being as the government maintains its focus on tackling Covid-19 but is likely to make a return in the future.
SNAPPY LANDS BLAKEMORE Snappy Shopper, the mobile app and web-based convenience store home delivery platform, has secured its most significant deal to date after finalising a partnership with West Midlandsbased Spar wholesaler AF Blakemore. Following very successful
SPAR SCOTLAND VETERAN DAVID LAMB RETIRES
trials in the Wrexham area, AF Blakemore plans to offer Snappy Shopper in up to 250 sites across Blakemore Retail’s company-owned stores and its
David Lamb, Trading Director at Spar Scotland wholesaler and retailer CJ Lang, retired at the end of April after 25 years with the Dundee-based company. CJ Lang boss Colin McLean said: “Over the years David has made a significant contribution to the Board and has helped steer the direction of the business. In the two years since I’ve joined Spar Scotland, David has been
a huge asset in sharing his wealth of experience in wholesale trading with CJ Lang and Spar UK.” Lamb added: “I am very proud of the role I have played alongside CJ Lang colleagues and Independent customers in building the success of Spar in Scotland. Now though, I’m looking forward to enjoying more time with my wife and family.”
independent retail estate.
MFG SEEKS SCOTLAND MANAGER Motor Fuel Group, the UK’s largest independent petrol station operator, is looking for a Regional Manager based in Scotland to lead a team covering around 100 contract managed sites. Apply here.
WEDNESDAY 6TH MAY 2020 / ISSUE 3 / SLRMAG.CO.UK / 7
NEWS SPECIAL
COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
RETAIL GRANTS SCHEME OPENS
M&S DELIVERS Marks & Spencer has launched its first ever home delivery service, just ahead of its partnership with Ocado. Some 142 outlets will be offering a limited range of around 130 food and household items through Deliveroo. Deliveries will take 30 minutes and there is a £4.99 charge.
BEST-ONE FOOD BOXES
APPLICATIONS FOR RETAIL GRANTS THROUGH THE EXTENDED RETAIL, HOSPITALITY & LEISURE GRANTS SCHEME ARE NOW OPEN.
F
Best-one has launched a foodbox campaign to help stores to stock the products they need if they want to start providing food parcels to the vulnerable and those staying at home. Retailers can buy products from Best-one’s recommended core list, advertise the
inance Secretary Kate Forbes MSP confirmed in Parliament yesterday that the extension to the Retail, Hospitality & Leisure Grants Scheme is now in effect. This means that retailers can apply for grants for any second and subsequent shop premises they have. David Lonsdale, Director of the Scottish Retail Consortium, said: “These grants provide urgently needed support for retailers operating who are trying to weather the current crisis, particularly those deemed non-
DAVID LONSDALE, DIRECTOR OF THE SCOTTISH RETAIL CONSORTIUM
essential and currently in hibernation. “With this extension now open it’s vital that local authorities swiftly process grant applications to allow retailers access to the cash they need to keep afloat and aid high streets across Scotland, which have been left reeling by coronavirus.”
service they can offer to their community and then deliver the package to those in need for a fixed price.
CO-OP MASKS Central England Co-op has provided face visors for all 7,200 permanent and temporary staff across its food stores and petrol stations. The visors are not compulsory and the decision on wearing one is down to the individual colleague.
10 I SLRMAG.CO.UK / WEDNESDAY 6TH MAY 2020 / ISSUE 3
THE SUN PLANS FREE BIG THANK YOU GIGS FOR RETAILERS Registration has opened for the Big Thank You Tour, a musical extravaganza being organised by The Sun and Virgin Radio to acknowledge the efforts of key workers, including local retailers, during the coronavirus outbreak. The tour will see arena shows in Glasgow, London and Manchester later this year and tickets are free to retailers. Anyone classified as a key worker can apply for a pair of tickets and 35,000 are
available. The tour hits Glasgow on 1 November and will feature a roster of chart-topping talent. The London leg will also include The Sun’s Who Cares Wins awards. Registration closes at end of June, when a ballot will randomly select the gig-goers. All attendees must be aged 14 or over, and under-18s must be accompanied by an adult.
NEWS SPECIAL
COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
HOME DELIVERY ‘SKY-ROCKETS’ DURING COVID-19
ROBOT REVOLUTION With social distancing anticipated to be in place in some form until 2022, one innovative solution may be the use of ‘collaborative robots’ – cobots.
N
NEW ACS FIGURES SHOW THAT SOME 600,000 GROCERY DELIVERIES ARE BEING MADE EVERY WEEK UNDER LOCKDOWN.
how to create a home delivery service. “The way that local shops have responded to the coronavirus crisis to support people in their communities has been nothing short of incredible,” said ACS CEO James Lowman. “Home delivery services are a lifeline for local people, especially for those who are self-isolating, elderly, or otherwise unable to leave the house.”
‘BOUNCE BACK’ LOAN SCHEME OPENS The application portal for the Bounce Back Loan Scheme is now open and can be accessed here. The scheme helps small and medium-sized businesses to borrow between £2,000 and £50,000. The UK government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.
Cobots can increase productivity without breaking the twometre rule and can work alongside staff to ensure that staffing levels remain relatively normal.
Loan terms will be up to six years. No repayments will be due during the first 12 months and the government will work with lenders to agree a low rate of interest for the remaining period of the loan. The scheme will be delivered through a network of accredited lenders.
TECH SOLUTIONS
ew figures released in the last week by the Association of Convenience Stores (ACS) have revealed that home delivery by convenience stores has ‘sky-rocketed’ during lockdown with around 600,000 deliveries being made a week. The findings also show that around 65% of local retailers are now offering this service, a huge hike from the 10% figure featured in ACS’s 2019 Local Shop Report. ACS said more than 30,000 businesses had read its guidance on
They can be used for a range of tasks including serving food and drink to customers. They are available to hire from £65 a day from www. bots.co.uk.
WEDNESDAY 6TH MAY 2020 / ISSUE 3 / SLRMAG.CO.UK / 11
RETAIL TH E W EE K IN
LEGISLATION
S O C IA L D IS TA N C IN G
2-M ET RE RU LE BE CO M ES LA W RETAILER INTE
RVIEW
H OW’S YO U R W EE K BE EN…
L IN D A W IL L IA M S? SC AN, PAY, GO! TH E LATE ST NP D NF RN FU ND HI TS £200K
CORONAVIRUS
+ WHAT WILL THE ‘NEW NORMAL’ LOO
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T E S T IN G T IM E S F O R LOCAL R E TA IL E R S K LI K E?
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NEWS SPECIAL
COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
YOU KNOW THINGS HAVE CHANGED
WHEN...
L
IF LOCAL RETAILERS FELT UNDERVALUED FOR MANY YEARS, CORONAVIRUS HAS CHANGED ALL OF THAT WITH THEIR ‘KEY WORKER’ STATUS BEING CELEBRATED IN SOME VERY UNUSUAL WAYS.
ocal retailers across the UK could be forgiven for having felt a little undervalued by over the years despite providing essential products and services to the communities they serve from dawn till dusk seven days a week. Coronavirus has changed all of that, however, with the thoroughly deserved ‘key worker’ status bestowed on local retailers, placing them in the same bracket as NHS workers and first responders. This recognition is long overdue and has come in many forms, some of them a little unusual. Take Top Trumps, the iconic card game which most retailers over the age of 30 will remember from their childhood. Top Trumps has just launched a new Britain At Its Best game recognising the ‘Unsung Heroes’ that have kept Britain fed, watered, safe and healthy over the last couple of months. The game celebrates those key workers who have “saved Britain
hero and would each score 10 (or even 11) out of 10 by any reckoning if we had devised a Hero category.” The game costs £5 and is available at winningmoves.co.uk. Meanwhile, US toy giant Mattel has launched a collection of #ThankYouHeroes Fisher-Price action figures celebrating the “everyday heroes” on the front line of the coronavirus pandemic – and yes, there’s a little ‘grocery store worker’ among them.
during the pandemic” and includes everyone from doctors and nurses to binmen and couriers. Among those commemorated in playing card form are shop workers. Claire Simon from Top Trumps, says: “Every single front-line key worker is, of course, a heroine and
WEDNESDAY 6TH MAY 2020 / ISSUE 3 / SLRMAG.CO.UK / 13
RETAILER INTERVIEW
CRAIG DUNCAN KEYSTORE MADDISTON, FALKIRK
HOW’S YOUR WEEK BEEN…..
CRAIG DUNCAN
FORMER COSTCUTTER HEAD OF BUSINESS DEVELOPMENT FOR SCOTLAND HAS RECENTLY FULFILLED THE AMBITION OF A LIFETIME BY BUYING HIS FIRST STORE JUST TWO MINUTES FROM HIS HOME IN A SMALL VILLAGE OUTSIDE FALKIRK.
think coronavirus was going to turn into the issue it has. But I’ve been so lost in preparing for taking over the business that I didn’t really get much of a chance to think about it.
YOU MOVED IN JUST A COUPLE OF WEEKS BEFORE LOCKDOWN THEN? Yes, it was a couple of weeks before lockdown and about a week before customers started acting a bit funny and buying loads of toilet roll and pasta. It was only when I went on what was only my third trip to the cash and carry and got refused entry because I hadn’t registered that I realised things were getting a bit serious.
HAD YOU ALWAYS FANCIED BEING A RETAILER? HOW’S YOUR WEEK BEEN CRAIG? Busy! And a bit mad, but in a good way. I’ve only been in the store since the start of March and the first couple of months have been a real experience, I can tell you.
HOW AWARE WERE YOU OF CORONAVIRUS WHEN YOU DECIDED TO BECOME A RETAILER? We actually started the process of buying the store at the end of last summer and even when we got into the deep legal stuff in January I still didn’t
14 I SLRMAG.CO.UK / WEDNESDAY 6TH MAY 2020 / ISSUE 3
Having worked in retail for decades, I’d always had an idea in the back of my head of about building a chain of stores – so better late than never, I guess!
WHAT’S THE STORE LIKE? Small, and very close to my house! It’s only 500sq ft which presents a few problems around both social distancing and storage, but I literally live two minutes away so I know it quite well. It was fully refitted last year so it’s in good condition. I’ve known the previous owner a long time and he’s been great. He really helped before I moved in
RETAILER INTERVIEW
CRAIG DUNCAN KEYSTORE MADDISTON, FALKIRK
and even since. I obviously know the catchment area well and I’ve retained some of the staff so I haven’t entirely been thrown in at the deep end.
we also see quite a few very big baskets every day with people spending £40 or £50 on core grocery, for instance, which is remarkable.
HOW’S IT TRADING SO FAR?
WHICH CATEGORIES ARE PERFORMING FOR YOU?
Way ahead of my forecasts, which were obviously done before coronavirus. It’s like Christmas every day. Availability has just about got back to a stable position and Filshill have been great. I’m still having to do trips to the cash and carry most days but that’s because the stock is selling through quickly and the store doesn’t have much storage space, if you don’t include my garage at home!
Obviously we do ok with cigarettes and alcohol but our chilled business is doing extremely well and our Stephen’s Bakery range is flying. We’ve also quadrupled sales of butchery products that we get from our local Johnstone’s Butchers. But honestly, we’re selling lots of everything at this point!
COULDN’T HAVE BOUGHT A BUSINESS AT A BETTER TIME? In a sense, that’s true. We’re trading way ahead of where we thought we’d be so it allows us to build up a little fighting fund because you never know what’s round the corner. In another sense, it’s quite dispiriting because I know I’ve been spoiled by the recent big increase in sales because at some point they will go back to normal, whatever that means.
ENJOY IT WHILE IT LASTS? I wouldn’t say that, exactly. It’s a deeply saddening crisis in so many ways, but it’s very fulfilling to feel like we’re offering a really useful service to the people in the village at a time when they really rely on us.
HOW IS FOOTFALL AND BASKET SPEND? Footfall is solid enough and we see new faces pretty much every day, probably because a lot of people can’t face driving to the supermarket to stand in queues outside and also risk contracting the virus. Basket spend is a mixed bag. We’re seeing a lot of little shops throughout the day but
SO YOU DON’T REGRET THE MOVE? Absolutely not. I’m really enjoying it, particularly the interaction with customers. I haven’t worked behind a till for 25 years so it’s nice to get to know the customers and feel like I’m providing a service they value. My only regret is that I didn’t do this 25 years ago.
PLANS FOR THE FUTURE? The plan was always to use this small store as a sort of test bed to get my feet under the table, but I will definitely be looking to add more stores, possibly as early as next year.
WEDNESDAY 6TH MAY 2020 / ISSUE 3 / SLRMAG.CO.UK / 15
osers: The corner-shop comeback
RESEARCH
page 7
SHOPPING LOCALLY BY ANTONY BEGLEY
gthy queues becoming an issue at some major supermarkets, many UK tores to source their food and other goods.
der in April found that 41% of Brits have been shopping in their local corner shops more often than usual during lockdown.
LOCKDOWN DRIVING
6% said they will continue to use their neighbourhood stores more nds, compared to 19% who will use them less.
LOCAL LOYALTY?
n for the shift to shopping locally in lockdown were to dodge the entrance s at supermarkets. The third most common reason was to support local nt financial squeeze, showing community spirit among UK consumers that any, after the pandemic.
n from 1965 to 1980) are increasing their visits to local stores the most, with are also the age group most likely to continue THAT to go to their NEW RESEARCH HAS HIGHLIGHTED TWO INneighbourhood FIVE BRITS HAVE USED LOCAL SHOPS MORE DURING LOCKDOWN AND OVER (26%) A THIRD AREsilent PLANNING TO CONTINUE TO SHOP LOCALLY WHEN LOCKDOWN lockdown, at 43%. Only a quarter of the generation were inclined FINALLY ENDS. e during the coronavirus pandemic, but this could be because almost a quarter unable to leave their home. After lockdown ends, 30% of this generation plan e.
y
a
says sa, h er ny ets”. a, w by of
n
Reasons UK shoppers are using their local stores more I want to avoid crowded supermarkets
54%
I want to avoid queue outside supermarkets
54%
I want to support local businesses
46% 39%
I donʼt want to travel as far They have items that are sold out in supermarkets
32%
I couldnʼt book an online supermarket delivery slot
24%
They have items not available in supermarkets
24%
I am currently unable to reach supermarkets Other
13% 2% 10%
20%
30%
40%
50%
60%
Source: Finder research, April 2020
T
he often heart-breaking impact of coronavirus on our world is there for all to see but amidst the sadness, chaos and despair, there are some small positives to be taken. An apparent shift to a more caring, compassionate society is one potentially transformative trend while, closer to home, it’s increasingly looking like more and more shoppers are both using local stores more frequently and enjoying the experience. A survey published in the last week by personal finance company Finder.com has found that two in five consumers in Britain have used local shops more during lockdown than they ever have in the past – and a third are planning to continue to shop locally when lockdown ends. With empty shelves and lengthy queues becoming an issue at
s, may be freely reproduced as long as the source is cited with a link to www.finder.com/uk/shopping-deals#corona-paper. 16 I SLRMAG.CO.UK / WEDNESDAY 6TH MAY 2020 / ISSUE 3
First came the stockpiling
RESEARCH
page 3
First came the stockpiling
SHOPPING LOCALLY BY ANTONY BEGLEY
As the coronavirus outbreak took hold in the UK in March 20
As the coronavirus outbreak took hold in the UK in March 2020, many shoppers responded by stockpiling essential goods and groceries. essential goods and groceries. Finder surveyed 2,000 Brits in the week after lockdown was
60% of those polled admitted to stockpiling items, spending
out23 more than those in any other region, spending Finder surveyed 2,000 Brits in the week after lockdown was imposed on March, and discovered that an averag 60% of those polled admitted to stockpiling items, spending an average of £57.09 forked Hand sanitisereach. was theLondoners most scarce item, with almost two i were the most frequently bought items, with three fifths of out more than those in any other region, spending an average of £104.95. in our graphics, below.
Extrapolating resultsTinned to the wider British public, 31 Hand sanitiser was the most scarce item, with almost two in five Brits unable toFinderʼs get any. goods spent an extra £1.8 billion in total as the pandemic unfolded were the most frequently bought items, with three fifths of stockpilers purchasing them. Full results are The move to higher-volume grocery trips is a trend that ha in our graphics, below. nationʼs largest supermarket chain, confirming that the num
halved, but the size of the average shopping basket doubled
First came the stockpiling Extrapolating Finderʼs results to the wider British public, 31.2 million panic-buying shoppers potentially Overall, in March, the period of panic-buying was followed spent an extra £1.8 billion in total as the pandemic unfolded. consumer confidence.
As the coronavirus outbreak took hold in the UK in March 20
The move to higher-volume grocery trips is a trend that has continuedessential into lockdown, with Tesco, the goods and groceries. Most commonly stockpiled items M nationʼs largest supermarket chain, confirming that the number of customer transactions in April nearly Finder surveyed 2,000 Brits in the week after lockdown was food (59%) Ha 60%Tinned of those polled admitted to stockpiling items, spending halved, but the size of the average shopping basket doubled. Overall, in March, the period of panic-buying was followed by a huge
Crispsthan (52%) Dr out more those in any other region, spending an averag Toilet paper (56%) To sales decrease, and ascarce hugeitem, loss Hand sanitiser wasas the most withof almost two Dry food, such pasta (49%) Mei wereCleaning the mostsupplies frequently bought items, with three fifths of (45%) Cle in our graphics, below.
supermarkets, many UK consumers visits to local stores the most, with 45% consumer confidence. have turned to local stores to source using them more. They are also the age their food and other goods. group most likely to continue to go Extrapolating Finderʼs results to the wider British public, 31 spent an extra £1.8 billion in total as the pandemic unfolded The research conducted in April to their neighbourhood shops more among 2,000 UKcommonly shoppers foundstockpiled that frequently after lockdown, Most at 43%. commonly The move to higher-volume grocery trips is a trend that ha Most items sold-out items nationʼs largest supermarket chain, confirming that the num 41% of Brits have been shopping in The results echo recent figures halved, but the size of the average shopping basket doubled their localTinned greengrocers, butchers and from digital banking brand Revolut food (59%) Hand sanitiser (38%) convenience stores more often than who analysed spending data threesuchOverall, in March, the period of panic-buying was followed Crisps (52%) Dryforfood, as pasta (26%) consumer confidence. usual during lockdown. million banking app users in March Toilet paper (56%) Toilet paper (22%) Possibly even more interesting and revealed a surge in sales at local Dry food, such as pasta (49%)convenience stores. Revolut Medicine (23%) is the finding that 36% said they will says that Most commonly stockpiled items M Any content from this paper, including illustrations, may be freely reproduced as long as the sourc supplies (45%) supplies (21%) continue Cleaning to use their neighbourhood convenience retail chainsCleaning like Nisa, Tinned food (59%) Ha stores more frequently after lockdown McColls and Costcutter “each saw an Crisps (52%) Dr ends with just 19% saying they would increase in the number of transactions Toilet paper (56%) To Dry food, such as pasta (49%) Me use them less. larger than any of the UK’s major Cleaning supplies (45%) Cle The two main reasons given were supermarkets”. to avoid entrance queues and steer The greatest uplift of all was at Nisa, clear of crowds at supermarkets. where the value of sales grew by 52%. Vitally, the third most common However, the number of transactions reason was to support local businesses was only up by 15%, reflecting an during the current financial squeeze, increase in the amount customers are showing community spirit among prepared to spend each time they shop UK consumers that will hopefully locally. continue after the pandemic. To view the full Finder report, Generation X shoppers (born from visit www.finder.com/uk/shoppingSource: Finder survey, March 2020 Any content from this paper, including illustrations, may be freely reproduced as long as the sourc 1965 to 1980) are increasing their deals#corona-paper. Any content from this paper, including illustrations, may be freely reproduced as long as the source is cited with a link to www.finder.com/uk/shopping-deals#corona-paper. WEDNESDAY 6TH MAY 2020 / ISSUE 3 / SLRMAG.CO.UK / 17
OPINION
RETAIL IS BROKEN PROFESSOR LEIGH SPARKS, PROFESSOR OF RETAIL STUDIES AT THE UNIVERSITY OF STIRLING
RETAIL IS BROKEN.
HOW DO WE FIX IT?
CAN WE REALLY BE SATISFIED WITH THE RETAILING SYSTEM AND THE TOWNS WE HAVE, ONCE THE DUST SORT OF SETTLES FROM THE PANDEMIC, ASKS PROFESSOR LEIGH SPARKS?
T
he retail system in the UK is broken. It works for quite a lot of people most of the time, but mainly the affluent and those with cars. When it does work, it does so at the expense of both society and local economies. For others it provides a marginal existence. It is not sustainable in the broadest sense. We have accepted the ways things have been for many years, in the pursuit of low prices. Our retailers have become disassociated from their local markets, consumers, towns and places – and even more distant from many of the suppliers on which they rely. Covid-19 must alter our perceptions and challenge our willingness to accept this ‘bargain’. We deserve better in so many ways. This is not to say that multiple and large-scale retailing does not have its place – it does. But do they pay their way, and should they be more responsible (to producers, consumers, suppliers, places, communities) in their dealings? Should we engineer more of a balance in the system to provide properly for more of our population, both economically and socially? So, what might we want our retail sector to look like?
18 I SLRMAG.CO.UK / WEDNESDAY 6TH MAY 2020 / ISSUE 3
OPINION
RETAIL IS BROKEN PROFESSOR LEIGH SPARKS, PROFESSOR OF RETAIL STUDIES AT THE UNIVERSITY OF STIRLING
Q It needs to work for all. Food banks are not an acceptable component of any advanced economic system. We need an enhanced local focus, reducing dependency on long, complex, supply chains. This is about local neighbourhoods and places as well as the local supply chains and assets that are required to break our over-dependence on international and distant supply. A renewed focus on community, support and place has been demonstrable in recent weeks and we need to build on this. We have great local producers and products and we must connect better our producers and our consumers, in our accessible locations of towns and town centres. Q This implies a rebalanced sector with switches from national multiple chains to local and independent operations; from physical to digital taxation; and from a reliance on the car and out-of-town stores to in-town and neighbourhood stores and markets. We have proven through the last six weeks that previously impossible solutions are not that, and that we can rethink our approach and systems. We cannot go back to what has been failing us generally. Some initial thoughts might include: Q A rebalancing of taxation between digital and physical retail to accept and reflect what has now changed in business operations. If we want physical stores we have to stop taxing them out of business whilst allowing others a free pass at using, but not paying for, common good (such as the roads they currently use for delivery). Q International tax avoidance by multi-national businesses should be stopped. Such sleights of hand are killing our economy and society Q Immediate substantial increases in income for ‘key workers’ and those marginalised in our economy. These people have demonstrated their real value to our economy and society. Q Disincentivise retail components damaging the concept of place and not paying their true social and
economic costs e.g. out-of-town car-focused stores. Some of this can be done by fair taxation (including abolition of rates for high street independent retailers), however there might also be a need to directly challenge rights of operation. Q Change the VAT system to reward the reuse of historical and existing buildings rather than –– as currently happens – rewarding new build on often greenfield sites. Allied to this there needs to be substantial economic protection and support for independent producers and retailers to encourage their sustainability and growth. Convenience stores have done a fabulous job in the pandemic; let’s show it afterwards by making the ‘playing field’ rather more level. The proportion of such stores’ spend in local areas is far higher than other businesses and they are the glue of the social networks we claim to value. This is about a rebalancing, not an abolition of mass retailing and production. The current retail food system has failed us, and no amount of post Covid-19 ‘back to normal’ rhetoric should be accepted. The ‘old normal’ did not supply or nourish the nation in the way it should; we now have to be able to feed our country on a sustainable healthy basis focused around towns and place. This will require a radical shift in thinking and operations. The world has changed. Ending lockdown and returning to the old ways is not an acceptable or sustainable way forward. We have seen that alternative futures and ways of doing things are possible. We must take this opportunity to change our towns and communities for the better, and it starts with local retailing and local producers.
A fuller version is available at www.stirlingretail.com.
WEDNESDAY 6TH MAY 2020 / ISSUE 3 / SLRMAG.CO.UK / 19
NOW THAT’S A GOOD IDEA…
OUT THE BOX COLLECTION POT
ORGANISE WHIP-ROUNDS THE EASY WAY A NEW PARTNERSHIP BETWEEN MICONEX AND COLLECTION POT MAKES IT EASIER THAN EVER TO ORGANISE ONLINE COLLECTIONS FOR ANYONE FROM STAFF AND TEACHERS TO KEY WORKERS AND GOOD CAUSES.
WHAT COULD RETAILERS USE IT FOR? The uses are limited only by their imagination. They could set up a Collection Pot to let local customers show their appreciation for the hard-working staff in the store. They could organise a Collection Pot to thank the local nursery or to show their appreciation for NHS workers in their local community. The list is endless.
WHAT’S THE BIG IDEA? Collection Pot, an online service that allows anyone to organise online collections while also ensuring that the money raised is spent in local businesses.
HOW DOES THAT WORK? Retailers can simply set up a Collection Pot then ask for donations from whoever they choose, using social media, in-store POS, local press or whatever channels they choose. The money donated is collected online and then converted into a pre-paid MasterCard that can be used in stores in the local area that participate in Miconex’s Town and City Gift Card programme.
A MODERN VERSION OF THE ‘WHIP ROUND’? Exactly. With cash less common than ever and lockdown in place, Collection Pot allows retailers to collect money digitally for any type of good cause – and hand that money out in a format that ensures the money donated is spent locally.
20 I SLRMAG.CO.UK / WEDNESDAY 6TH MAY 2020 / ISSUE 3
AND THE MONEY IS RETAINED IN THE LOCAL ECONOMY? That’s the key point. The company behind Collection Pot initially allowed the donations to be converted by the grateful recipients into Amazon vouchers or vouchers for big brands like Apple, but Miconex worked with them to develop a system through its Town and City Gift Card programme that ensured that every penny donated would be spent in hyper-local businesses.
HOW MANY CITIES AND TOWNS OPERATE A TOWN AND CITY GIFT CARD PROGRAMME? Forty-three at the moment, but that number is growing constantly with 20 more in the pipeline. Around 5,500 businesses across the UK currently accept the cards and, what’s more, the typical ‘overspend’ is 65%. In other words, if a recipient receives a £10 card, they typically spend £16.50 in the store.
HOW DO I FIND OUT MORE? Email Colin Munro at Miconex here: colin@mi-cnx.com or visit www.mi-cnx.com
NPD AND MEDIA
PICKS OF THE WEEK TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
MINI MEX
FUNCTIONAL JUICE
EUROPEAN
Jacob’s Mini Cheddars have
Tropicana has added a
FAVOURITES
launched a range of 6 x 26g
330ml Energise variant to its
Lorenz Snacks is adding two
multipack Mexican flavours
Essentials range of functional
products to its Crunchips
that scale up in heat: Lime
juices featuring pineapple,
range of 80g snacks. The new
& Chilli, Nacho Cheese
passion fruit, banana, ginseng
flavours are Terrifying Jalapeno
& Jalapeno, and Chipotle
and magnesium to fight
& Cream Cheese Inferno and
Chicken Wings.
tiredness.
Incredible Paprika & Sour
RSP: £1.89
RSP: £1.99
Cream Pleasure. RSP: £1
MENTHOL OPTIONS
POPCORN FILM DEAL
SAUCY SNACKING
JTI has added two new
Butterkist is offering shoppers
New from Seabrook Crisps is a
menthol flavours to its nicotine
a half price NOW TV Sky
‘Lea & Perrins’ Worcestershire
salt Logic Compact Intense
Cinema Pass with each
Sauce addition to its Crinkle
range, Berry Mint and Polar
purchase of 3 x 60g microwave
Cut range. Available in a 6 x
Menthol. The new flavours
popcorn until 30 November.
25g multipack, a 150g sharing
come in packs of two and
The deal runs across all four
bag and an 80g £1 PMP bag.
help retailers prepare for this
flavours: salted, sweet &
RSP: £1.00
month’s cigarette Menthol Ban.
salted, sweet, and butter.
RSP: £5.99
RSP: £2.00
WEDNESDAY 6TH MAY 2020 / ISSUE 3 / SLRMAG.CO.UK / 21
Time to Make the Change to Costcutter Peter Juty, Costcutter Meopham
It’s time to make the change from operating on your own, to having the expert help and support required to grow your business. Unique Shopper First insights to tailor your store to attract new shoppers Fantastic support with the best BDM to store ratio in the sector Amazing range, including Co-op Own Brand products n Unmatched commercial terms including a rebate of up to 6%
Time to ! e g n a h C e h t t e k c o P Peter Juty joined Costcutter in late 2019 and has already grown his sales by 15%
join our thriving community of independent retailers Y To get in touch at www.freshstart.costcutter.co.uk
SYMBOL SPECIAL
GROCERYAID ACCOLADE COSTCUTTER SUPERMARKETS GROUP
COSTCUTTER AWARDED GOLD STATUS BY GROCERYAID Costcutter Supermarkets Group has been awarded the top ‘Gold’ status by industry charity GroceryAid in recognition of its outstanding retailer support.
T
he extensive efforts of Costcutter and its retailers have been rewarded with a special ‘Gold’ status award from industry charity GroceryAid. The charity was founded in 1857 and helps people from the grocery and convenience industry – from the largest factory through to the smallest store. The award recognises companies that have supported GroceryAid’s three critical pillars of support – awareness, fundraising and volunteering. Since becoming an active supporter of GroceryAid in 2017, Costcutter has held a number of fundraising events, including a charity golf day in 2019 which raised over £13,000. The group has also run internal awareness campaigns and worked with suppliers and colleagues to raise funds for the cause. Robbie Moore, Head of Commercial at Costcutter and co-chair of the GroceryAid Northern Network and volunteer, said: “We have been working with GroceryAid for many years now and fully support the outstanding work they do across the grocery industry. Since becoming an active
supporter, one of our own colleagues experienced their support first-hand after struggling with his mental health following the death of his father and a stressful phase at work. The emotional support he received from GroceryAid played a huge part in his recovery and we’re so proud that he is now an ambassador for the cause. “As the retail sector, alongside the rest of the UK, faces challenging and uncertain times due to Covid-19, the support offered by charities like GroceryAid has never been more critical. We will continue to champion their work for our own retailers, and the wider convenience retail sector.” Steve Barnes, CEO of GroceryAid, added: “Costcutter has worked hard to achieve a GroceryAid Gold Award and I am delighted that we were able to recognise their support in this way. “The industry has endured some turbulent recent times but never has their enthusiasm to do the right thing for industry colleagues wavered. We are proud to work so closely with such a progressive organisation and we thank all those involved in achieving this award for their endeavours.”
WEDNESDAY 6TH MAY 2020 / ISSUE 3 / SLRMAG.CO.UK / 23
n ee b er ev n s a h s es en r a w Lees’ brand a
B awarrand eness
76%
**
of Scots like Lees Snowballs *
Our delicious snowballs and teacakes have been family favourites for almost 90 years. Following last year’s TV campaign, awareness is at its highest level ever, with 76% of Scots surveyed saying they liked Lees Snowballs and 44% buying Lees products every month. There’s never been a better time to stock up.
Scotland loves Lees 01236 441 600
sales@leesofscotland.co.uk *Source: JLral. Post TV Campaign Evaluation- Sept 2019 **Refers to Scots who viewed the 2019 TV ad
