The Week In Retail Issue 37

RETAIL

THE WEEK IN

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Issue 37 Wednesday 6th Jnauary 2021

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THE WEEK IN RETAIL

EDITOR’S COMMENT SHARE YOUR NEWS AND VIEWS WITH ME AT ABEGLEY@55NORTH.COM

AS YOU WERE...

After all the mild euphoria of December with its vaccine-fuelled promise of a better 2021, it didn’t take long for reality to bite as the whole of the UK slipped back into full lockdown with only a few days of the new year under our belts. Rising, record numbers of cases and an ominous new strain of the virus means we’re not even back where we started – we’re in worse shape than ever. Nicola Sturgeon says she’s more concerned now than she was during the original lockdown last March.

Throw into the equation Boris’s last-minute post-Brexit deal crammed full of concessions and all the derring-do bluster in the world can’t disguise the fact that 2021 already has the hallmarks of another annus horribilis.

Anybody who says they’ve both read and understood the 1,200+ page post-Brexit trade agreement has either not read it or not understood it – so there is a long, long way to go before we start getting any decent clarity on what sorts of impacts it will have on the local retailing sector.

Efficient business operation relies on efficient planning but to plan efficiently you need to have some idea of what you’re planning for. You need to have narrowed down the likely scenarios to at least a manageable shortlist – but that’s simply not possible when Brexit and full lockdown collide and we’ve almost literally no idea what’s coming down the track in the next few days and weeks, never mind the next six, 12 or 24 months.

If a company as big, rich and high-powered as Sainsbury’s finds itself having to list Spar own-label products to make up for availability shortfalls, you know there’s a problem.

To coin an infuriating phrase however, we are where we are – and local retailing has proven itself over the last year to be among the most flexible, proactive, responsive and creative sectors of all when it comes to dealing with the realities of our transformed world.

Unfortunately, it looks like we’re going to need a lot more of the same in 2021. May the force be with you, my friends.

ANTONYBEGLEY ANTONYBEGLEY ANTONYBEGLEY

ANTONY BEGLEY, EDITOR

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 3

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CONTENTS

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 WWW.SLRMAG.CO.UK

6

11 THIS WEEK’S NEWS IN BRIEF

A £4.6bn lockdown support package is unveiled and the UK agrees to a trade deal of sorts with the EU.

8 COVID-19 UPDATE

A ROUND-UP OF THE LATEST

19 COVID VACCINE

Retail trade union Usdaw urges Health Secretary Matt Hancock to urgently prioritise vaccination for retailers and delivery drivers.

Three retailers see their services to the community, charity and the retail trade recognised with awards.

27 LOCAL SOURCING: ALDI

33 PICKS OF THE WEEK

DISCOUNTER PLANS TO SPEND £3.5BN

35 OUT THE BOX: NEARST

MORE A YEAR ON BRITISH PRODUCE.

CORONAVIRUS-RELATED NEWS. 15 RESEARCH: 2020’S KEY TRENDS

29 CATEGORY INSIGHT: FROZEN

BARCLAYCARD HIGHLIGHTS THE FIVE KEY TRENDS THAT DEFINED 2020.

25 PRODUCT OF THE YEAR AWARDS

TWITTER.COM/SLRMAG

NEW YEAR HONOURS LIST

A FOOTFALL-BOOSTING REAL-TIME LOCAL PRODUCT AVAILABILITY SOLUTION, AS

THE MUCH OVERLOOKED CATEGORY

USED BY LONDIS, NISA AND BUDGENS.

CONTINUED ITS SUSTAINED PERIOD OF

41 BEFORE YOU GO...

GROWTH WITH A STRONG FINISH TO 2020.

WWW.FACEBOOK.COM/SLRMAG

OUR LATEST RETAIL RANDOMS.

WWW.SLRMAG.CO.UK

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 5

NEWS DIGEST

THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/

POSTMASTER PLEDGE Applications opened on Monday for two serving Postmasters to join the Board of Post Office as NonExecutive Directors for the

BUSINESS SUPPORT

£4.6BN FUNDING PACKAGE UNVEILED

THE TREASURY IS MAKING £4.6BN OF FUNDING AVAILABLE TO HELP RETAILERS THROUGH THE LATEST LOCKDOWN.

first time in its history. The move will ensure that the experience and interests of 8,000 Postmasters are directly reflected in the decisions of the Post Office’s main Board.

WAREHOUSE WOMEN JJ Foodservice has announced that 23% of its Enfield warehouse staff are now female – helping the wholesaler to exceed its target

As the UK moved into a third major lockdown, Chancellor Rishi Sunak unveiled a new £4.6bn funding package designed to support businesses in the retail, hospitality and leisure sectors.

Businesses will receive a one-off grant of up to £9,000 to more than 600,000 business properties.

Almost £600m is also being made available for local authorities and the devolved administrations to support other businesses not eligible for the grants. Additionally, the Scottish government will receive £375m in

Barnett consequential revenues as part of the package, although Scottish Finance Secretary Kate Forbes was “both surprised and disappointed” to find out this wasn’t new cash, but part of a previously announced package.

Scottish Retail Consortium director David Lonsdale said: “It’s vital a fair portion of these newly devolved funds are swiftly used to prop up so-called non-essential retailers here in Scotland whose businesses are balanced on a knife-edge whilst prevented from opening.”

of 20%. In 2017, JJ pledged to employ more females to encourage a greater diversity

CJ LANG ADDS 14 IN 2ND HALF OF 2020

of talent in the business. Back then, only 4% of the Enfield warehouse team were female.

ALDI RECORD SALES Discounter Aldi has reported record Christmas sales, boosted by the popularity of its premium products. In the four weeks to 24 December, the discounter’s sales rose by 10.6% compared with the same period in 2019.

Spar Scotland wholesaler and retailer CJ Lang added 14 new stores during the second half of 2020 with particular success in the north of the country with four new sites joining.

Mike Leonard, Sales Director, said: “We are looking at progressive independent retailers everywhere from Aberdeenshire and Invernessshire upwards as well as all other areas of Scotland. We know we are delivering

6 I SLRMAG.CO.UK / ISSUE 37 / WEDNESDAY 6TH JANUARY 2021

excellent service to independent retailers with a great in-store offer, coinvestment opportunities, one-to-one regional business development manager support, a quality own label range and store development opportunities.

We can offer as many as three multi-temp deliveries a week to this part of the country. The north of Scotland will continue to be a huge focus in 2021.”

NEWS DIGEST

THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/

BREXIT

BREXIT LEAVES UK WITH TRADE AGREEMENT OF SORTS

APPLEGREEN TO GO PRIVATE Founders of Applegreen have unveiled plans to take the company private in a deal that values the group at

THE UK OFFICIALLY LEFT THE EU TRADING RULES AT 11PM ON

about £650m. The company’s

31 DECEMBER WITH A POST-BREXIT DEAL IN PLACE THAT BOTH

independent directors agreed

PARTIES COULD LIVE WITH.

unanimously to the deal with a consortium including B&J

The UK finally and formal left the European Union at 11pm on 31 December 2020 with a post-Brexit trade deal in place, ending many months of disagreements over future business rules. The departure took place after a recall of Parliament on 30 December to vote the deal through and happened a year after the UK officially left the trading bloc.

Prime Minister Boris Johnson hailed the development, stating: “We have taken back control of our laws and our destiny.” He also claimed the post-Brexit agreement represented a “good deal for the whole of Europe”

although several key concessions had to be made to get the deal across the finishing line.

The UK and EU now form two separate markets with the end of free movement and the full implications of this for retailers remain unclear.

Boris Johnson said the £668bn a year agreement would “protect jobs across this country” and “enable UK goods to be sold without tariffs, without quotas in the EU market”.

There will however be significant changes to how people travel between the EU and UK, and to the way they live and work.

Holdings, which already holds a 41.3% shareholding.

ASDA TRIALS VEGAN Asda is set to trial a vegan butcher counter in its Watford store in partnership with vegan specialist Kbox Global. Named Veelicious, it will run as a six-month trial, kicking off to coincide with Veganuary.

SITING WARNING The Association of

SAINSBURY’S SELLING SPAR LINES

Convenience Stores has

Sainsbury’s stores in Northern Ireland are selling SPAR-branded products as part of a contingency plan for Brexit and the new Irish Sea border.

Northern Ireland SPAR wholesaler Henderson Group has reportedly signed a deal with the supermarket to stock around 70 SPAR own-label products.

According to reports, the deal is a “temporary supply agreement” to ensure availability for customers. The SPAR lines help compensate for a small number of Sainsbury’s lines that are temporarily unavailable while border arrangements are confirmed.

(HFSS) food products can be

warned that restrictions on where high fat, sugar and salt sited in convenience stores will have a significant impact on more than a fifth of local shops.

The ban could see HFSS lines banned at store entrances, aisle ends and at till points, as well as ending promotions such as buy-one-get-one-free offers.

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 7

NEWS SPECIAL

COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/

The introduction of a third

ALCOHOL TAKEAWAY BAN INTRODUCED

national lockdown for England

A BAN ON HOSPITALITY OUTLETS SELLING ALCOHOL TAKEAWAYS

and new Brexit red tape at

GOES LIVE TODAY IN ENGLAND AS PART OF THE NEW LOCKDOWN

borders has not created

REGIME.

DELIVERY OPPORTUNITY

severe delays, says the home delivery expert ParcelHero, however supermarket slots remain scarce in some areas, presenting an opportunity for local retailers offering home delivery.

MORRISONS VACCINE CENTRES Morrisons has offered three of its car parks for use to roll out drive-thru Covid-19 vaccines centres with another 47 stores set to take part in the near future, subject to suitability.

FOOTFALL FREEFALL Footfall across UK retail destinations fell by 23.2% last week compared to the previous week, according to figures from Springboard. Footfall across the UK was 55.7% lower than in the same week in 2019 as the impact of more Covid-19 restrictions kicked in. Footfall in Tier 4 locations was 72.2% lower than the previous year but only 33.9% lower in Tier 3.

Alcohol takeaways are banned from today until 15 February in England as Prime Minister Boris Johnson clamps down on socialising under the new lockdown regime.

All restaurants, pubs and other hospitality settings have been forced to close their doors under the new rules with a tightening of the restrictions imposed under tier 4 of the PM’s regionalised system. The new rules mean restaurants are able to sell food and soft drinks for delivery, click-and-collect and takeaway but will no longer be able to serve takeaway or clickand-collect alcohol.

The ban is driven by concerns that customers buying takeaway alcohol from pub and bar doors would then congregate with friends nearby to drink.

GREGGS FACING FIRST LOSS FOR 36 YEARS Greggs says it is anticipating a loss of up to £15m for the year, its first annual loss in 36 years since it was first listed on the stock exchange in 1984. The company said it also does not expect profits to return to pre-Covid levels until 2022 at the earliest.

The company cut 820 jobs at the end of 2020 as sales in the final quarter of the year fell by nearly 20%.

Total yearly sales were down nearly a third to £811m, but government support helped to limit pre-tax losses.

8 I SLRMAG.CO.UK / ISSUE 37 / WEDNESDAY 6TH JANUARY 2021

Greggs has been developing its takeaway business and a delivery tie-up with Just Eat. It has also seen strong sales through its partnership with Iceland and still intends to open around 100 new stores in the year ahead.

NEWS SPECIAL

COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/

LOCKDOWN BITES ACROSS THE UK

D2C IN HUGE GROWTH The number of suppliers and manufacturers selling direct to consumers (D2C), by-passing traditional retail channels, is set to grow D2C by a whopping £24bn by 2023, according to research from Barclays Corporate Banking.

ALL FOUR NATIONS IN THE UK HAVE RETURNED TO FULL LOCKDOWN

D

IN RESPONSE TO A RISE IN INFECTIONS AND THE EMERGENCE OF A MORE CONTAGIOUS STRAIN OF CORONAVIRUS.

espite optimism at the end of 2020 as new vaccines began to become available, a rise in infections and the emergence of a more contagious strain of coronavirus has led all four UK nations to reintroduce strict lockdowns which forbid anyone from leaving their home except for essential purposes.

UK PM Boris Johnson announced a full national lockdown while Scottish FM Nicola Sturgeon confirmed a lockdown for all of mainland Scotland.

Wales entered alert level 4 on Sunday

20 December while from 8 Jan, similar rules will apply in Northern Ireland.

Nicola Sturgeon said: “We are now seeing a steeply rising trend of infections. Indeed, it is no exaggeration to say that I am more concerned about the situation we face now than I have been at any time since March last year.”

She also told the Scottish Parliament that the steep increase in coronavirus infections and the intensity of pressure on the NHS have created a race between the virus and the vaccines now coming online.

The latest Government data shows that coronavirus cases are now rising fast again driven by a new variant of the virus thought to be much more easily transmissible than other strains. Almost 61,000 confirmed cases were announced on Tuesday – the highest daily figure reported since testing became more widely available. Chief Medical Officer for England Chris Whitty says the UK case rate increased by 70% in the two weeks to 30 December.

There have been more than 2.7 million confirmed cases of coronavirus in the UK and over 75,000 people have died, government figures show. However, these figures include only people who have died within 28 days of testing positive for coronavirus and other measures suggest the number of deaths is higher.

A new estimate from the Office for National Statistics suggests around one in 50 people in England are estimated to have the virus.

TECH SOLUTIONS

DAILY CASES REACH RECORD LEVELS

The growth could see over 100,000 jobs created in the next three years as major suppliers increasingly shift focus onto selling product directly to shoppers.

The surge in suppliers going direct will mean sales through this channel are predicted to total £120bn in 2023, an increase from £96bn this year.

PERNOD RICARD HAS BEEN AMONG THE SUPPLIERS SELLING PRODUCT DIRECT TO CONSUMERS.

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 9

COVID-19

VACCINATION PRIORITISATION USDAW

USDAW: ‘PRIORITISE RETAILERS FOR VACCINE’ SHOPWORKERS TRADE UNION USDAW HAS WRITTEN TO SECRETARY OF STATE FOR HEALTH MATT HANCOCK DEMANDING URGENT PRIORITISATION OF VACCINATION FOR RETAILERS.

R

etail trade union Usdaw has formally written to health and business ministers, including Secretary of State for Health Matt Hancock, calling for urgent Government intervention to protect key workers in the essential service of food retailing, as the rate of Covid infections continues to grow.

Usdaw is calling for the Government to ensure that frontline retail staff are prioritised for vaccination and Covid testing, along with full pay and support

for those who are ill, self-isolating or shielding. The union is also urging retailers to reinstate and reinforce necessary safety measures in shops and for customers to follow the rules, while giving shopworkers the respect they deserve.

Paddy Lillis, Usdaw General Secretary, says: “Retail staff are working with the public every day and are not only suffering increased abuse, but are also deeply worried about catching Covid-19. That must be taken into

account by the Government when assessing risk levels and priority for vaccines and testing.

“We are calling on the Government to ensure that retail workers and delivery drivers are given priority, because they provide the essential service of keeping the nation fed. We are also looking for support from the Government, retail employers and the shopping public to help make food stores and deliveries as safe as possible for customers and staff alike.”

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 11

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COVID-19

VACCINATION PRIORITISATION USDAW

Full text of the letter:

Dear Mr Sharma and Mr Hancock , In light of the recent rise in cases and the new strain of Coronavirus, many retail workers are at a greater risk of catching the virus and bringing it home to their families.

Supermarket workers and delivery drivers have worked throughout the pandemic to keep the country supplied

with essentials. As tighter restrictions are introduced , they continue to go to work in public-facing roles and deal with hundreds of customers every day.

Usdaw is calling for essential retail workers and delivery drivers to be given priority in the rollout of vaccinations

and mass testing, to reflect the level of risk that they face .

As an immediate priority, we expect retailers to revisit their risk assessments, in consultation with the Union , to

ensure that: l

Customer numbers are limited and queuing systems are put in place to get into shops, with trained security staff in

place where appropriate . Where maximum customer numbers have previously been increased , employers must look again at this and consider whether they need to be reduced to earlier levels. l

Clear signage is in place telling customers to wear face coverings. Enforcement of the law on face coverings remains the responsibility of the police , and we call on the police to implement regular spot checks.

l l

Customers are reminded to shop alone and not along with other members of their household , wherever possible .

2 metre distancing markers around the shopfloor, and in queuing areas are in place and properly monitored . Oneway systems should be in place wherever possible .

l

Incidents of violence and abuse are not tolerated . Employers must back up their staff when dealing with abusive customers and those who refuse to follow social distancing measures.

l l l l

Enhanced cleaning measures in place on the shop floor and in back areas.

PPE, hand sanitiser and cleaning products available for all staff.

Doorstep only delivery procedures are in place to protect drivers.

Staff who are sick or need to self-isolate for Covid related absence are paid full pay and not subject to disciplinary absence procedures.

l

Workers who are at additional risk are protected , in line with Government advice for their area. Specific legal protections for pregnant women must be followed .

l

Local managers engage with Union Health and Safety reps to ensure that all agreed measures are being followed .

The above measures have policy implications for the Departments for Health and BEIS and as such I am writing you both on this issue . Given the urgency of the situation I look forward to receiving a response as soon as possible .

Yours sincerely, PADDY LILLIS

Usdaw General Secretary

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 13

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RESEARCH

2020 KEY TRENDS BARCLAYCARD

THE FIVE TRENDS THAT DEFINED 2020 BARCLAYCARD HIGHLIGHTS THE FIVE KEY TRENDS THAT DEFINED 2020, A YEAR LIKE NO OTHER, AND DISCUSSES THE POTENTIAL IMPACTS OF THE GROWTH OF THE ‘INSPERIENCE ECONOMY’.

“Spending on ordering takeaways online surged 49.1% and those offering services such as meal subscriptions grew by 62.4%.”

I

t will come as little surprise to learn that consumer spending declined in 2020, a year that will live long in the memory for all the wrong reasons thanks to coronavirus. Yet this statistic only tells a very small part of the tale as lifestyle changes and rapidly shifting consumer habits led to a reshaped retail sector with growth in many areas, not least in independent retailing.

Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, reveals that spending on essential items rose by 4.1% YOY in 2020, largely driven by supermarket shopping, which saw an

overall growth of 15.7%, with online grocery shopping surging 70.3% as the demand for delivery services increased.

These trends, along with lower prices at the petrol pump, also contributed to a decline in spend on fuel, which dropped by 20.3%.

This growth of what Barclaycard refers to as the ‘insperience economy’ saw digital services, subscriptions and home delivery boom as Brits spent more time at home under Covid-19 restrictions.

To help retailers learn from 2020 and tap into the key shifts, Barclaycard has identified five key trends.

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 15

RESEARCH

2020 KEY TRENDS BARCLAYCARD

1 2 3 4 5

TURBULENT TIME FOR HIGHSTREET RETAILERS AND HOSPITALITY

Spending on non-essential items contracted 11.3%, as social distancing restrictions had a significant impact on high-street retailers and the hospitality sector.

While the ‘Eat Out to Help Out’ initiative provided a boost to restaurants, restrictive measures throughout the year saw overall spending fall 47.0%. Bars and pubs were inevitably also impacted by social distancing restrictions, seeing an overall drop of 36.7%.

THE GROWTH OF THE ‘INSPERIENCE ECONOMY’

As consumers spent more time at home this led to a rise in demand for digital entertainment, services and experiences. Boxsets and games consoles increased in popularity with spending on digital subscriptions and electronics seeing growths of 31.5% and 10.8% respectively.

Meanwhile, spending on ordering takeaways online surged 49.1% and those offering services such as meal subscriptions grew by 62.4%, as fresh, hassle-free dinner options became a mainstay in many households.

BOOM IN HOME IMPROVEMENTS

Many Brits also took the opportunity to spruce up their indoor and outdoor living spaces. After non-essential shops re-opened in June, spending at home improvement and DIY stores surged, driving an overall growth of 9.8% YOY. Furniture stores also enjoyed an overall uplift of 5.3%, as shoppers invested in big-ticket purchases.

STAYING LOCAL

A key positive outcome of 2020 was that support for independent businesses flourished, as many Brits chose to shop locally. Specialist food and drink stores – including convenience stores as well as offlicences, butchers and bakeries – saw an overall uplift of 28.6% YOY. This is supported by Barclaycard’s consumer confidence research, which revealed that over half (57%) of Brits said they wanted to increase their support of nearby businesses as a result of lockdown restrictions.

A trend towards staying local has been seen in travel behaviour too.

August and September saw more holidaymakers embark on staycations over trips abroad, with UK hotels, resorts & accommodation seeing their smallest declines since the first national lockdown, at 19.1% and 18.1% respectively – a noticeable improvement on May (-89.8%).

However, overall travel – including airlines and travel agents – declined by 61.1% in August and 63.1% in September.

CONSUMER ESCAPISM AND PICK-ME-UPS Sports & outdoor retailers enjoyed significant growth in 2020, rising 7.2% overall, with the temporary closure of gyms encouraging Brits to purchase workout equipment and seek new ways to exercise inside and outdoors.

Support for florists has also bloomed with purchases up 22.7% as Brits treated themselves and showed friends and family from afar they were missed. Many also took up new hobbies and crafts (9.8% rise) and added new companions to their households, with vets and pets seeing a 10.7% uplift in 2020.

Raheel Ahmed, Barclaycard’s Head of Consumer Products, said: “2020 has accelerated many trends. E-commerce has seen huge growth, working from home has meant many are shopping more locally and experiences within the home, such as virtual workouts have become the norm. Spending within the retail, travel and hospitality sectors has been acutely impacted. However, we have also seen many businesses become more agile and move online.

“Hopefully with a vaccine being rolled out in 2021 we will see green shoots for the most severely impacted sectors. Having said that, some of the trends and changes we’ve seen in customer habits may be here to stay.”

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 17

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PEOPLE NEWS

NEW YEAR HONOURS LIST RETAIL RECIPIENTS

RETAILERS RECOGNISED GRAHAM WATSON, BEM AND TEAM

THE QUEEN’S NEW YEAR HONOURS LIST SAW A NUMBER OF RETAILERS HONOURED FOR THEIR SERVICES TO THEIR COMMUNITIES, CHARITY AND THE RETAIL TRADE.

LINDA CARRINGTON, BEM

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 19

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PEOPLE NEWS

NEW YEAR’S HONOURS LIST RETAIL RECIPIENTS

A

fter the year that was 2020 and the heroic role that local retailers played in serving communities across the UK in the most trying of circumstances, it seems entirely fitting that a number of retailers have been recognised in the Queen’s New Year Honours List.

Lanarkshire Nisa retailer Abdul Majid has been honoured with an MBE while both Dumfries & Galloway Premier retailer Graham Watson and Grimsby Spar retailer Linda Carrington were honoured with a British Empire Medal (BEM).

Former Scottish Grocers’ Federation (SGF) President Abdul Majid was awarded the MBE on the recommendation of the Prime Minister and on the advice of the independent Main Honours Committee following an independent assessment process.

Based in Bellshill, Abdul is a hugely respected figure within the industry and is widely seen as being a driving force behind the restructuring of SGF in 2015, which saw Pete Cheema take the reins as CEO and re-established the Federation as a major force within the industry.

The award was made for outstanding service to the local community, Scottish retail and to charities at home and abroad.

Abdul said: “I am surprised but humbled to be bestowed the award of MBE in the Queens New Year’s honours. I would like to thank my family and friends as well as my retailer

colleagues at the SGF for their love and support. I would also like to offer a special mention for the wonderful people at the following charities for all their efforts locally and abroad: Sarwar Foundation, St Andrews Hospice and Maggie’s Lanarkshire. And finally, I’d also like to thank the good people of Bellshill for putting up with me these past 37 years!”

Commenting on his BEM, Graham Watson said: “I am genuinely moved and humbled by this and would like to take this opportunity to thank everyone who lives in Moniaive and Glencairn and right throughout Southwest Scotland who have supported the shop over the last year. In particular I’d like to big up all our fantastic staff who have given their all in support of the shop and the community as a whole – thank you.”

Linda Carrington, who manages AF Blakemore’s Laceby Lodge forecourt convenience store in Grimsby, was also deservedly recognised for her exceptional services to the community during Covid-19. She has almost 40 years of service with the company.

Linda commented: “I am truly honoured to receive this BEM award.

When I first found out about it, I couldn’t believe it – in fact, I actually deleted the Honours email as I didn’t think it was real! I couldn’t have achieved this recognition without the hard work of my team, so I see it as an honour for all my colleagues who have worked tirelessly throughout the year to keep essential services going for the

community. It’s fantastic to know that we’re really making a difference.”

A customer who Linda delivered to, Steve Trist, whose wife has been shielding, commented: “As lockdown took its toll, the team literally became our lifeline. Living in a rural area and having no close family or friends who were not themselves in isolation, we were not well-placed to get through.

“I can’t start to tell you how important and how valued and appreciated their help was and still is.

In such difficult times it is clear that Mrs Carrington and her team were themselves on the frontline. I feel very privileged to have met such helpful, kind, caring and supportive people.”

ABDUL MAJID, MBE

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 21

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Beer, Cider, Wines & Spirits Retailer of the Year Fresh, Chilled & Frozen Retailer of the Year Sustainability Retailer of the Year

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r Broadway Linda Williams, Premiein rgh Convenience Store, Ed bu Covid Hero Award

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Londis Solo Convenience Store, Baillieston Confectionery Retailer of the Year

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Jack’s of Blantyre

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GIVE YOUR

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NPD

SLR PRODUCTS OF THE YEAR AWARDS VOTING DEADLINE

LAST CHANCE TO VOTE FOR YOUR PICK OF 2020’S NPD! AS VOTED FOR BY RETAILERS THE VOTING FOR THE INAUGURAL SLR PRODUCTS OF THE YEAR AWARDS CLOSES AT 5PM ON FRIDAY – SO DON’T MISS YOUR CHANCE TO PICK YOUR FAVOURITE NPD OF 2020.

CAS YOU T VOT R N O WE S !

A

s all local retailers know, engaging and new products are the lifeblood of the local retailing industry and we’re helping celebrate the best NPD of 2020 – with the winners chosen exclusively by local retailers.

New products play a vital role in helping generate excitement among customers in-store and on social media, as well as driving footfall, sales and profits. Over the last year, arguably more than ever, retailers have relied on a steady

stream of innovative, engaging and attention-grabbing new products – and the big brands haven’t let them down.

Which is why Scottish Local Retailer has introduced the SLR Products of the Year Awards for 2020 with every winner chosen by the people that matter most: local retailers themselves.

All local retailers will be eligible to vote for their favourite products of 2020. The winners will be announced in a special supplement this month.

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 25

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BUYING BRITISH ALDI UK

ALDI TO SPEND £3.5BN MORE WITH BRITISH SUPPLIERS ALDI HAS ANNOUNCED PLANS TO INCREASE THE AMOUNT OF FOOD AND DRINK IT BUYS FROM BRITISH

W

SUPPLIERS BY £3.5BN A YEAR WITHIN FIVE YEARS – AND EXTENDS IMMEDIATE PAYMENT TERMS FOR SMALL SUPPLIERS.

ith Brexit ramping up the uncertainty in retail, German discounter Aldi has announced that it will increase its spend with British food and drink suppliers by an additional £3.5bn over the next five years.

The company is investing £500m in new and upgraded stores, distribution centres and its supply chain in 2021, which it says will create over 4,000 jobs as well as new opportunities for British food and drink producers.

Giles Hurley, Chief Executive Officer at Aldi UK, said: “We are expecting significant sales growth in 2021 as we open new stores and bring Aldi to more locations across the UK. With the vast majority of our grocery products now coming from British suppliers, our growth will lead to additional jobs and investment in our UK supply chain.”

The commitment from Aldi is expected to help hundreds of small British businesses continue to grow with the supermarket and invest for the future.

One example is Manchester Drinks Company whose ongoing partnership with Aldi began in 2015 to supply the supermarket with a range of gins and gin liqueurs. This has helped the supplier enjoy significant growth, leading to a new site that employs 19 people. It has also been able to invest in a new production line to meet the growing demand from Aldi.

Richard Benjamin, Co-Owner at Manchester Drinks Company, said: “Our new contract with Aldi is a fantastic

opportunity to showcase our flavoured gins and liqueurs to shoppers across the country, and will help to provide stability for our business in an uncertain climate.”

Aldi has also confirmed that the immediate payment terms for small suppliers it introduced at the start of the Coronavirus pandemic will be extended until the end of 2021.

The commitment means that the supermarket will continue to process payments for suppliers with an annual turnover of less than £1m with Aldi as soon as they are submitted. The move will benefit more than 1,000 small British businesses in the supermarket’s supply chain.

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 27

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CATEGORY INSIGHT

FROZEN BRITISH FROZEN FOOD FEDERATION / BIRDS EYE

FROZEN CONTINUES SOLID GROWTH THE OFTEN OVERLOOKED FROZEN CATEGORY CONTINUED ITS SUSTAINED PERIOD OF GROWTH WITH A STRONG FINISH TO 2020, OUTSTRIPPING EVERY OTHER CATEGORY APART FROM ALCOHOL.

£252M SALES ADDED IN SEP-NOV 2020

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F

rozen is a category that doesn’t often get much attention in local retailing, which is surprising given that it’s a category that has been in solid growth in recent years. Unsexy as it is, frozen has quietly grown in both volume and value as an increasing number of shoppers realise the benefits that frozen food has to offer, not least of which is zero food waste – something that has become more important to shoppers during the pandemic.

Indeed, the category added another £252m in sales in the last three-month period, according to the latest Kantar figures released by the British Frozen Food Federation. So, is it a category that local retailers should be focusing more attention on? The latest lockdown indicates that the virus is far from beaten and the shopping trends learned over the last year may well persist long into the future.

The research reveals that the frozen food aisle has been the star performer of grocery retail in the last 12 months, performing better in terms of value and volume percentage growth than any other category apart from alcohol.

The latest figures for the 12 months to 29 November show that the overall grocery market

grew 11.3% in value and 9.0% in volume over the 52-week period. Frozen food sales outperformed total grocery growth in both value (+13.8%) and volume (+11.5%), adding £871m in sales.

The figures reveal that of the nine frozen categories reported by Kantar all are in value growth, with six in double digit growth. It is a similar picture in volume with eight categories in growth, of which five are in double digit growth.

Average price has also increased by 2.0%, slightly behind the 2.1% for total grocery, whereas the average price of fresh and chilled has declined by 0.8%.

Tesco remains the leading frozen food retailer with 23% of sales by value, slightly down year-onyear, but almost double that of the second largest retailer of frozen food Asda with 12.5%. Waitrose, M&S and Ocado all saw a small increase in their share of frozen sales in the last 12 months. Iceland showed a slight decline in share but still recorded significant value growth along with all retailers.

Commenting on the figures, Richard Harrow, BFFF Chief Executive said: “In grocery retail frozen food has had a fantastic year with many consumers increasing their frozen food purchasing or indeed finding the frozen aisle for

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 29

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CATEGORY INSIGHT

FROZEN BRITISH FROZEN FOOD FEDERATION / BIRD’S EYE

“Frozen added £871m in sales value in the year to the end of November and exceeded the fresh and chilled category in both value and volume in percentage growth.”

BIRD’S EYE VIEW OF CONVENIENCE FROZEN FASTSTATS: Q 74% of local retailers have seen demand for frozen food grow this year Q 42% say frozen grew more than any other category Q Over a third have expanded their freezer space to meet this demand Q Only 40% regularly include frozen food in their product orders Q Frozen ready meals and savoury meal accompaniments have seen the biggest increases with retailers Q Pizza and ice cream remain the most popular overall

Frozen experts Birds Eye recently worked with research specialists KAM Media to better understand the obstacles

the first time. During December many retailers were reporting demand remained high especially for frozen turkey crowns and seasonal products, with shoppers emptying freezers as quickly as they could be stocked.

“Whilst this year’s performance has been driven by the changing shopping habits due to the pandemic and the return to the big weekly shop, many consumers have been converted to buying more frozen products by the long shelf-life, reduced food waste, value for money and variety of food on offer.”

He added: “Sadly, out-of-home has been decimated by the pandemic. Sales of frozen food are forecast to drop to £1.4bn for the year.” Harrow said this figure could drop further in the wake of tighter lockdown restrictions.

Even before this impact the total frozen food market, retail and foodservice, will have declined by £187m, or a 2.1% during 2020.

Harrow concluded: “I hope 2021 will see the return of a more balanced market and a substantial recovery in out of home sales. At the same time, I’m confident that retail sales will remain strong and that shoppers renewed enthusiasm for frozen food will continue.”

independent retailers face in the category to help it support the channel.

Through a dedicated survey of 200 independent UK retailers, the findings highlight how the demand for frozen food has expanded since the lockdown in March, with 42% of respondents citing how the frozen category grew at a greater rate compared to other product categories. Nearly three quarters of participants have seen demand for frozen grow overall, at least in line with other categories.

The growth of frozen food seen by independent retailers mirrors the nationwide picture at a grocery level and reinforces the attractive proposition that frozen food offers, especially with ready meals and savoury meal accompaniments, which saw the biggest demand surge according to retailers.

The research demonstrates that frozen has great appeal to shoppers due to its convenience and variety. Almost one-fifth (19%) of retailers plan to invest more in the frozen category over the coming months and over one-third increased their freezer space in store during 2020.

Chris West, Channel Controller at Birds Eye commented: “On the back of these findings, Birds Eye remains committed to working with independent retailers in order to help expand their frozen food offering and better meet changing shopper demands.”

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 31

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NOW THAT’S A GOOD IDEA…

OUT THE BOX NEARST

REAL-TIME LOCAL PRODUCT AVAILABILITY TECH NearSt, A GOOGLE-BACKED BRITISH RETAIL TECH BUSINESS HAS RAISED £2M IN SEED FUNDING TO FUEL GROWTH OF ITS FOOTFALL-BOOSTING REAL-TIME LOCAL PRODUCT AVAILABILITY SOLUTION, AS USED BY LONDIS, NISA AND BUDGENS.

WHAT’S THE BIG IDEA? A real-time local product availability tech solution from a British company called NearSt that makes products on physical store shelves visible to shoppers searching online nearby.

HOW DOES THAT WORK? In simple terms, the solution drives footfall by letting physical retailers show live in-store inventory to people searching online nearby. NearSt is backed by Google who use the technology to show real-time local product availability directly in search results on the main search page, as well as across Shopping, Google Maps, and other Local Listings. It’s also used by Facebook as part of its drive to boost its local shopping capabilities.

WHERE DID THE IDEA COME FROM? NearSt was founded in 2015 by Max Kreijn and Nick Brackenbury, who had worked together developing digital experiences for major brands at a top global agency. Kreijn came up with the concept in a literal lightbulb moment, when a bulb went in his flat and he searched online to see where he could buy a replacement. He says: “I was shown lots of places where I could order it online, but I couldn’t find out which local shops had one for me to pop out and

buy.” The pair started out by spending two months cycling around London on Boris Bikes visiting hundreds of shops to understand why no one had solved this, before starting work on the first NearSt prototype.

IS IT BEING USED IN CONVENIENCE? Yes, it’s already used by Nisa, Londis and Budgens as well as in other nonfood stores including luxury boutiques Creed, Christopher Kane and Hirsh.

HOW DOES IT ACTUALLY WORK? Retailers install a small piece of software that automatically connects to any type of Epos or inventory management system. The entire in-store inventory then starts to appear in local search results, sending nearby shoppers in-store who might otherwise have ordered online. Steve Tonks of Lincolnshirebased DIY shop Tonwood Home Hardware said: “It took us a year to upload 500 products on our website, compared to using NearSt which uploaded 29,000 online instantly.”

HOW MUCH DOES IT COST? Retailers pay a one-time connection fee of £399 and then NearSt’s core search product is free, with the option of

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 35

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NOW THAT’S A GOOD IDEA…

OUT THE BOX NEARST

KEY PANDEMIC LEARNINGS 1. UNCERTAINTY DRIVES PEOPLE TO CHECK BEFORE THEY TRAVEL This has been clear from the very first lockdown and has been demonstrated effectively again by the November lockdown

2. CUSTOMERS ARE ESTABLISHING A NEW EXPECTATION OF CONVENIENCE While life returned to a comparative level of normality over the summer, the sustained increase in shoppers looking for products locally suggests that once customers realise they can easily check local stock, they continue doing so.

3. SHOPPING LOCAL, ONLINE, IS HERE TO STAY The sustained nature of the pandemic

purchasing weekly add-ons to drive additional local visibility. In addition to listing a shop’s products in Google, NearSt also provides detailed insights to the retailer about what’s popular with customers searching nearby.

WHY IS IT IN THE NEWS? It has just completed a £2m funding round including funding from Grosvenor Group, one of the world’s largest privately-owned international property companies. In 2020, demand for the solution tripled as shoppers flooded online in unprecedented numbers to find out what’s in stock in nearby shops during the pandemic. The latest funding takes the total raised to £5m – following an earlier £2m raise in February 2020.

WHY ARE SHOPPERS USING IT? NearSt says the tech is helping shoppers realise that buying local is often faster and easier than ordering on Amazon and providing a welcome boost for convenience stores. The company has seen a three-fold increase in local product search demand throughout 2020, and will use the cash

combined with retailers adopting tech that helps them serve local shoppers online better, is powerfully habit forming.

Once shoppers realise they can shop locally in a much easier way, and retailers are used to offering this, we are unlikely to decommission these new services.

“The tech is helping shoppers realise that buying local is often faster and easier than ordering on Amazon.”

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 37

SUPPORTING GROCERY COLLEAGUES The GroceryAid Covid-19 Fund is designed to help colleagues who need support now and throughout the full impact of the pandemic.

Grocery colleagues have access to:

“Amid the huge challenge of Covid-19 our trade has done a great job of keeping the nation fed. GroceryAid has raised a special Covid-19 fund to help our industry colleagues at this time of need. The 24/7 Helpline will deal with concerns and assist with financial stress caused by this terrible virus.”

- Charles Wilson, GroceryAid President

Mental Health Support Offering ‘in the moment’ emotional and practical support for colleagues dealing with shock, anxiety and stress through BACP trained counsellors, our Health and Wellbeing portal and Woebot, our AI Robot App. Bereavement Financial Assistance Providing financial assistance for the loss of a loved one through Covid-19. Available to colleagues who lose a partner or the immediate family of a colleague who has passed away as a result of Covid-19 whilst working in our industry.

Crisis Grants Non-repayable grants, designed to help with financial emergencies. This is available for colleagues experiencing unexpected financial difficulties due to Covid-19 with a year’s industry service.

GroceryAid Helpline: 08088 021 122 Visit: www.groceryaid.org.uk Follow us:

NOW THAT’S A GOOD IDEA…

OUT THE BOX NEARST

LOCAL SEARCH AND RETAIL IN STATS: Q Searches for “shopping near me” have grown 200% in the past two years (Google Data, March 2018) Q 46% of global shoppers confirm inventory online before going to store (Google Data, 2019) Q 83% of online shoppers are willing to go in-store if they can confirm a product’s availability beforehand (Frederic Clement, Increase Footfall In Your Store With Google Local Inventory Ads) Q 85% of UK consumers still prefer to physically purchase products in-store, and 78% like to see and feel products in person before buying online (marketingsignals.com) Q More than half of UK consumers (55%) prefer to buy local brands (IRI European Shopper Insights Survey, 2020) Q 90% of Global Shoppers who visited a store in the last week said they used online search prior to going in-store (Google Data, 2019) Q 80% of customer go into

injection to accelerate uptake by retailers in the UK with a wave of new hires. With almost a third of all Google searches relating to location and over 80% of all retail spending still taking place in physical shops, NearSt believes there is a lot to win in the high street’s fight against the online giants.

WHAT ARE NEARST SAYING? “NearSt’s funding comes at a time of seismic shifts in how we shop and what it means to be a retailer,” said co-founder Nick Brackenbury. “We all know that the pandemic has driven shopping behaviours online; what’s often overlooked are the millions of people now going online to search for things locally on the high street.

“We’ve witnessed extraordinary growth in ‘local-availability’ searches throughout 2020. In the first lockdown customers searching for products nearby surged 620% compared to February levels, before levelling off at a 270% increase between July and September. While this most recent lockdown has driven another 500% surge, what’s clear is that shoppers are getting used to going online to find things in the local businesses they prefer to buy from.

“Online shopping is often positioned as the death knell for the high street – we think it’s far from this, and will rather be the foundation of a vibrant and healthy future for brick-and-mortar shops.”

stores to buy when they

HOW DO I FIND OUT MORE?

need something immediately

Visit www.near.st to learn more about signing up. And if you’re quick, you might be among the 100 retailers who get the solution free to celebrate the new round of funding.

(Google Data, 2019)

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 39

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BEFORE YOU GO

RETAIL RANDOMS SYNTHETIC ALCOHOL / FOOD WASTE

SYNTHETIC ALCOHOL: THE SMART SOLUTION TO DRY JANUARY

After the excesses of the festive period, January is always a popular time for gin-soaked Brits to give their livers a break. But for the smart and pedantic among us, there may be a neat get-out solution to avoiding booze this month: synthetic alcohol.

What is synthetic alcohol? Well, it’s sort of an alcohol-free alcohol that still delivers “all the benefits but without the use of ethanol”. The website also implies that it is a hangover-free product, which would be nice.

Produced by British-based business GABA Labs, which is apparently a pioneer in the alcohol alternative space, a new botanical spirit called Sentia launches this month containing GABA (gamma-aminobutyric acid) which is a naturally occurring substance that allegedly produces a calming effect, enhancing conviviality and sociability.

If you fancy a look, check out sentiaspirits.com.

FOOD WASTE ON AN EPIC SCALE Among the many unintended consequences of a short-notice third lockdown is the fact that somewhere in the region of 15 million school dinners are heading for the bin – perfectly good but perishable food that will simply end up going to landfill.

National waste collections company BusinessWaste. co.uk, which is tasked with collecting the mountains of food waste, have calculated that three million school meals are served each day with the cost of each meal approximately £2.

That makes £6m a day or £30m a week.

Spokesperson Mark Hall said: “This is a national disaster because schools typically order a week in advance. The

government have well and truly let the schools down, they have allowed them to open and prepare for the weeks ahead, which of course means stocking the fridges high for this week’s school dinners and now those dinners are going in the bin.

“The schools simply don’t have the freezers required to store all the perishable food and that unfortunately will mean the vast majority is to be thrown away. The amount of food waste caused by a sudden lockdown is staggering – if they had been given warning then it could have been sent to other places, but now food banks will be overwhelmed and they typically only take non-perishable goods.”

WEDNESDAY 6TH JANUARY 2021 / ISSUE 37 / SLRMAG.CO.UK / 41

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