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THIS WEEK'S NEWS
ASDA TARGETS CONVENIENCE MARKET WITH NEW FORMAT
ASDA IS ENTERING THE CONVENIENCE MARKET THROUGH A TRIALWITH FORECOURT OPERATOR EG GROUP AND IS TRIALLING B&QCONCESSIONS IN-STORE.
Asda is targeting the UK convenience market with the launch of a new format in partnership with forecourt specialist EG Group.
The trial of ‘Asda On The Move’ will initially roll out at three forecourts in Ashby, Leamore and Primley in the Midlands.
The supermarket is also collaborating on an in-store concept with B&Q offering customers a compact B&Q ‘shop within a shop’ within superstores.
The moves follow the launch of the supermarket’s partnership with Uber Eats in July, which has now been expanded to 25 stores.
USDAW: FUND BUSINESS RATES CUT WITH ONLINE SALES TAX
RETAIL TRADE UNION USDAW HAS URGED HM TREASURY TOIMPLEMENT AN ONLINE SALES TAX TO FUND A CUT IN BUSINESSRATES FOR BRICKS AND MORTAR RETAILERS.
Shopworkers trade union Usdaw has responded this week to an HM Treasury consultation on the current business rates system by asking the Government to implement an online sales tax that would fund a cut in business rates and create a level playing field between online and bricks and mortar retail.
Coronavirus has accelerated a shift to online sales, which now account for a record high of 30.7% of all retail sales.
Usdaw General Secretary Paddy Lillis said: “Usdaw urges the Government to tackle the growing and excessive competitive imbalance between high street stores and online retail before it’s too late. Business rates have long been a burden on the retail sector and have contributed massively to store closures and job losses, while at the same time stifling growth and investment.
“If the Government wants our High Streets to survive and thrive, it should be working to level the playing field between online and bricks and mortar retail.”
POST OFFICE CONSULTATION KICKS OFF
The Post Office has launched a 12-week consultation asking how Postmasters and commercial partners who operate multiple branches want to be involved in the development and execution of business decisions.
The consultation will include in-depth discussions followed by a survey of over 8,000 Postmasters on options such as establishing regional or thematic forums that could advise and influence business decisions. A separate survey and qualitative discussions will take place with all its commercial partners.
Amanda Jones, Post Office Retail and Franchise Network Director, said: “This consultation is part of our efforts to reset our relationship with Postmasters.”
PRODUCTION OF £2 AND 2P COINS HALTED
The Royal Mint has announced that it will cease to produce new 2p or £2 coins for the next decade, although production could return if needed.
The move is the result of the build-up of a ‘coin mountain’ as demand for the coins has dropped significantly, in sharp contrast to the demand for banknotes which has grown.
These coins have not been needed because lots of old coins were returned to circulation when the 12-sided £1 coin was launched in March 2017 and shoppers rushed to send the old format pound coins back to the bank in the six month window available. The issue was revealed in a report on the future of cash by the National Audit Office warning it could become harder to access by those who rely on it. Ten years ago, cash was used in six out of 10 transactions but by 2019 it was only being used in less than three in 10 purchases.
CO-OP DELIVERS
The Co-op has reported afour-fold increase in onlinefood orders in the half year to 4July, fuelled by the coronaviruspandemic. The retailer isaiming to provide online homedelivery and click & collectfrom over 650 of its stores bythe end of this year.
SHRINKRWAP SHRUNK
Waitrose is accelerating itsplans to stop using singleuseplastic by ending theuse of shrinkwrap on allof its own label multipacktinned grocery products. Themajority of multibuy cans willnow be available loose, withthe exception of tuna andtomatoes, which will move to arecyclable card sleeve.
PORTMAN CHAIR
The Portman Group hasappointed Philip Rycroft asits new Chair. He replaces SirMartin Narey, who steppeddown in November 2019. Acivil servant for over 30 years,Rycroft was most recently thePermeant Secretary to theDepartment for Exiting the EU.His private sector experienceincludes a stint as an adviserto Scottish & Newcastle.
FREEZE FIGHT
Angela Rayner, Deputy Leaderof the Labour Party, has hailedthe efforts of low-paid keyworkers during the coronaviruspandemic and says her partywill fight any attempt to freezeminimum wage rates. Thestatement was in responseto the Low Pay Commissionwarning that planned rises maybe ‘unaffordable‘ for employersin a recession.
CONFEX TWC TIE-UP
Wholesale buying groupConfex has partnered with dataand digital specialists TWC tolaunch a new reporting servicethat will provide unique insightsto both Confex’ membersand suppliers to help themunderstand market influencesand monetise opportunitiesfrom the group’s sales data.
ICELAND TRIAL
Iceland has teamed up with offlicencechain Bargain Boozeto launch dedicated BargainBooze sections in three of itsThe Food Warehouse stores.The partnership will more thandouble the size of the BWSoffer in these stores, takingtotal SKU count to over 1,000products.
