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CONTENTS
4 CHIEF EXECUTIVE’S WELCOME
25 THE LAST 25 YEARS...
Chief Executive Pete Cheema takes a look back at the last year – and a look forward to the future.
A fond look back at the achievements of SGF over the last quarter of a century.
6 A WORD FROM THE PRESIDENT
34 FOOD-TO-GO FEEDING GROWTH
Outgoing President Dennis Williams hails a hugely successful tenure.
IGD’s Gavin Rothwell predicts that food to go will continue to grow.
8 INTRO TO THE VICE PRESIDENT
38 CONVENIENCE: A SLEEPING GIANT?
Incoming President Asim Sarwar lays out his plans and priorities.
Blake Gladman of KAM Media says it’s time convenience fulfilled its potential.
12 PUBLIC AFFAIRS UPDATE
40 A NEW ERA FOR HEALTHY LIVING
Head of Policy & Public Affairs John Lee reflects on a hectic but productive year.
The SGF Healthy Living Programme looks ahead under new Director Kathryn Neil.
14 SHOPWORKERS BILL
44 SYMBOL GUIDE
Daniel Johnson MSP offers an update on his vital Protection of Shopworkers Bill.
A handy guide to choosing the right symbol or fascia group for you.
16 FOOD TO GO GRANT
60 CORPORATE MEMBERS GUIDE
Cabinet Secretary Fergus Ewing discusses the Government’s £250,000 grant.
A full list of SGF’s many Corporate Members.
18 CROSS-PARTY GROUP REPORT
A guide to key upcoming SGF events.
3
62 DIARY DATES
It’s been a great year for the Cross-Party Group, says Gordon MacDonald MSP.
22 LICENSING REVIEW TLT’s Stephen McGowan consider a year of upheaval and challenges.
The SGF Handbook 2018-19 was produced and published on behalf of SGF by 55 North Ltd.
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4
SGF INSIGHT CHIEF EXECUTIVE’S WELCOME
OUR FUTURE DEPENDS ON CLOSER TIES to the Federation and ensured that it has not only survived but thrived for 100 years. This award is special. No doubt. 100 years is a genuine landmark. It’s a time for us to celebrate the past but perhaps more importantly, the centenary marks a point in time when we should think about how we take the SGF and our industry forward. I think it’s safe to say that SGF has changed out of all recognition over the past three years or so. We need to keep this momentum for change going. Our industry is at the beginning of the biggest period of change it has seen for decades. We believe there is a key role for SGF here in providing leadership and bringing the different parts of the value chain together – retailers, suppliers, symbol groups and wholesalers – to ensure the
As convenience retail enters the biggest period of uncertainty it has faced in decades, SGF Chief Executive Pete Cheema throws out a challenge to the industry.
A
industry in Scotland takes the opportunities these changes will undoubtedly bring. These kinds of speeches don’t usually t the 2018 Scottish Local
include a challenge but as I said I wanted
Retailer Rewards SGF was
this speech to be a bit different. I wanted
honoured with a special
to challenge the key people in our industry,
award to celebrate and
most of whom were at the event to work with
recognise
us and support us to make this happen!
its
centenary
year. We were tremendously
I mentioned that there are always
grateful to be recognised in
congratulations in this type of speech.
this way – it meant a great deal to us, as does
Again this one was a bit different. The
our overall partnership with SLR.
congratulations were really not for us but for
It was my honour to accept the award and,
everyone who has been a friend, partner or
of course, this meant giving the obligatory
member of the Scottish Grocers’ Federation
speech. These kinds of speeches usually
throughout its 100-year history. We are
follow a very traditional format: a long list
simply the custodians of a long tradition and
of people are thanked, you hear about
a proud heritage.
how special the award is and there’s a lot of congratulations all round.
On behalf of the Federation, the National Executive and all of our members we were
I wanted this speech to be a bit different.
delighted to accept this award. The challenge
There was indeed a long list of people to
to the industry (and to SGF) has been thrown
thank – in fact there are 100 years-worth of
down. Let’s all pick it up in 2019 – work with
people to thank. In reality this award was
SGF to ensure our sector thrives and prospers.
really for them: the people who gave so much
We are stronger together.
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6
SGF INSIGHT A WORD FROM THE PRESIDENT
TWO YEARS OF CHANGE AND UPHEAVAL As his tenure draws to a close, SGF President Dennis Williams reflects on his time in office and looks forward to a bright future for the Federation.
T
he pace of modern life is truly bewildering. It
we were honoured with the Scottish Local Retailer of the
is difficult to believe that I am now moving
Year Award at the SLR Rewards event this year.
towards the end of my two-year term in
This kind of big investment also shows how important
office as President of SGF. One of the main
it is to have a strong working relationship with a symbol
reasons for time disappearing so rapidly
group. I know that Asim Sarwar will make this one of
is the demands of the role itself. There is a
the key areas of his Presidency. He is right to do so. The
constant need to contribute effectively to
constantly changing market, the ever present threat of
SGF but also to look after your own business. All this has
competition and changing customer habits mean that we
come against the backdrop of major changes in the retail
have to have a strong partnership with our symbol group.
industry: the merger of Tesco and Booker, the proposed merger of Sainsbury’s and Asda, Landmark and Todays coming together, the collapse of Palmer and Harvey and so on.
This helps to drive up standards and helps to ensure a disciplined approach to retailing. All of this touches on a key role for SGF itself. To bring together the industry: retailers, suppliers and symbol
From the point of view of my own business, change
groups. We are in a unique position to do this. Pete and
has been just as big a factor. As many of you will know
the team at SGF have put in place the kind of changes that
my store is now in direct competition with Aldi. From the
have helped to keep our membership growing. We had
outset we have got on the front foot with this. One of
great attendance from retailers at our events this year and
the key changes we’ve made is to bring in a completely
once again the First Minister will give the keynote address
new food to go area. This has been a major investment
at conference – this by itself is a clear indicator of the
but along with the self-service coffee it’s working well and
influence the Federation now has.
is hugely popular with customers. We’ve viewed the Aldi
The centenary year has been a great opportunity to
development as an opportunity to make changes and to
look back, to celebrate the past. But it also has to be an
invest in the business, and we are confident it will work. I
opportunity to look forward and ensure SGF evolves
think it is fair to say that the commitment we have shown
and adapts to ensure we continue to offer value to our
to investing in our business was one of the reasons why
members and key stakeholders.
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8
SGF INSIGHT AN INTRODUCTION TO THE VICE PRESIDENT
GROWING STRONGER WITH THE SYMBOLS and opportunities the next few years will inevitably bring. Conference 2018 – with the First Minister in attendance – will be an ideal opportunity for me to set out the vision for my Presidency. Over the next 12 months I will work closely with the team at SGF to ensure the strategic
A retailer-first philosophy coupled to a strong focus on the role of symbol groups will be front and centre when SGF VicePresident Asim Sarwar takes the hot seat.
B
plan is relevant to a changing market and a changing industry. Retailers have to feel that SGF is there to support them and champion ecoming the Vice-President
their interests. But there is an equally
of
important need to demonstrate value to
the
Scottish
Federation
Grocers’ its
the symbol groups, convenience mults
centenary year is certainly
and Co-ops who form the backbone of the
a great opportunity and
Federation.
without
during
great
SGF has given a priority to a range of
challenge. As ever there is
doubt
a
activities aimed at bringing together the
always a hard act to follow. My colleague
key stakeholders in our industry: suppliers,
Dennis Williams along with Pete Cheema and
wholesalers and retailers. Politically, SGF is
his team, have brought tremendous drive
already doing this very effectively with the
and energy to the success of SGF.
first-ever Scottish Parliament cross party
Being a very high-profile, and indeed a
group on independent convenience stores.
multi-award-winning, retailer has helped
Similarly, SGF’s events such as its conferences,
Dennis to ensure that SGF has kept retailers
study tour and golf day are all aimed at
at the forefront of everything it has done
providing learning, networking and business
over the two years of his presidency. This
opportunities for its corporate members,
is absolutely right and proper: retailers
retail members and wider stakeholders.
must be at the heart of the Federation.
SGF has a key role to play in providing
What I hope I can bring to the role when
leadership for our industry across the entire
I take over the office of President at our
value chain. Developing this leadership
centenary conference is to put an equally
role and taking it forward will be one of the
strong focus on the importance of symbol
main aims for me during my presidency. By
groups and their relationships with retailers.
working closely with the team at SGF I am
Strong symbol groups, with a coherent and
sure that I can contribute fully to this agenda
effective strategy for supporting retailers
and ensure that we build on all of the great
and driving up standards, are absolutely vital
work that has been put in place over the past
if our industry is to rise to the challenges
few years.
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10
SGF INSIGHT HOW THE FEDERATION WORKS FOR MEMBERS
HOW THE FEDERATION WORKS FOR MEMBERS
T
he Scottish Grocers’ Federation is
£4 billion. At the top of the Federation is its National
the national trade association for
Executive, comprising leading figures in the
the
industry
industry in Scotland. The National Executive has full
in Scotland. It was established in
decision making powers on every aspect of SGF’s
1918 to ensure that grocers had a
work: budgets, income, staffing, campaigning,
national body to represent them
membership, political engagement and lobbying.
as government began to take a
Members are drawn from three different categories,
more directive and (controlling) approach to
representing the key strands of the industry:
the grocery retail industry. SGF is now seen as
independent retailers, convenience multiples and
the authoritative voice of the industry with key
Co-operatives. Meetings of the National Executive
policy and decision makers. The industry itself is
are chaired by the President of SGF (a two-year
increasingly seen as being an important part of
post). The Chief Executive is a full member of the
Scotland’s economy: there are 5,300 convenience
National Executive. SGF’s buying group, PGMA, is
stores in Scotland, these stores provide over 41,000
represented by its Chief Executive who sits on the
jobs and the total value of sales per annum is some
SGF National Executive as an observer.
convenience
store
NATIONAL EXECUTIVE MEMBERS: Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
Dennis Williams, President Pete Cheema, Chief Executive Immediate Past President – Abdul Majid, Nisa Bellshill Harris Aslam, Director, Eros Retail Bill Adye, Owner, Drummore Stores, Stranraer David Archibald, Property and Development Director, McColls Jamie Buchanan, Company Stores Director, C.J. Lang and Son Ltd Jamie Davison, Sales Director, Costcutter Supermarkets Graeme Fraser, Booker Premier Mike Leonard (Vice-President), United Wholesale Scotland Kathryn McCusker, Owner, SPAR Hawick Craig Brown, Sales Director, J.W. Filshill Ltd (Keystore) David Livingstone, Retail Director, Batleys Fiona McInnes, Chief Executive, Clydebank Co-operative Colin McLean, Chief Operating Officer, Scotmid John McNeill, the Co-operative Food’s Operational Director for Scotland, Northern Ireland and Isle of Man Tom Slaven, Retail Director, United Wholesale Grocers Saleem Sadiq, Owner, SPAR Renfrew Sukhi Sanga, Owner, Premier Coylton Graham Watson, Owner, Moniaive Stores Damian Scholes, Business Development Manager, Payzone
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SGF represents ALL the key symbol groups, Co-operatives and multiples currently operating in Scotland Q Batleys Q Booker Premier Q Clydebank Co-operative Q The Co-operative Q Costcutter Supermarkets Q Day Today Q Keystore Q Londis Q McColls Q Mace Q Nisa Q Scotmid Q SPAR Q Tesco One Stop Q United Wholesale Grocers Q United Wholesale Scotland
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12
SGF INSIGHT PUBLIC AFFAIRS UPDATE
SITUATION REPORTS –
ONGOING MAJOR ISSUES
SGF Head of Public Affairs Dr John Lee outlines the key areas of concern for Scotland’s independent retailers.
A DEPOSIT RETURN SCHEME FOR SCOTLAND
by 2019. Throughout this process SGF will
The Scottish Government want to design a
as to get the best possible outcome for the
deposit return scheme which will provide
independent convenience store industry.
increased
recycling
rates
and
quality
seek to inform and influence the proposals so
Circular Economy. This will present a
PROTECTION OF WORKERS (RETAIL AND AGE-RESTRICTED SALES ETC.) (SCOTLAND) BILL
significant challenge to the viability and
Daniel Johnson MSP recently introduced
profitability of retailers. It is expected, that
his Protection of Workers Bill to the Scottish
following the public consultation, a Bill will
Parliament. The Bill will create new offences
be introduced to the Scottish Parliament with
around assault and abuse of workers who are
subsequent DRS legislation being put in place
involved in the sale of age-restricted items
of recycling, reductions in littering and contribute to Scotland’s shift to a more
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PUBLIC AFFAIRS UPDATE SGF INSIGHT
13
like alcohol and tobacco. It sets out a further proposal of creating a
any potential increases to both the NMW and NLW only in line with
statutory aggravation when these cases come to be sentenced. His
inflation as opposed to the previous rise of 4.4%.
Members’ Bill is now subject to a three-stage parliamentary scrutiny process. Ensuring that the Bill is approved is of crucial importance,
TOBACCO LEGISLATION
so SGF will work with Daniel to help ensure that the Bill achieves the
The Scottish Government’s Tobacco Control Action Plan 2018 sets out
required support from MSPs.
their five year strategy for reducing the associated harms with tobacco.
SCOTTISH PARLIAMENT CROSS-PARTY GROUP ON INDEPENDENT CONVENIENCE STORES
They state that they “will gather evidence, assess the potential impacts of, and potentially legislate where appropriate” for further restricting the availability of tobacco products and consider legislating to
The Cross Party Group (CPG) was set up in 2016 following a proposal
introduce conditions for registration or licensing of retail. Other actions
from the SGF and MSP Gordon MacDonald. The CPG meets quarterly
include consulting on the detail of restricting domestic advertising
and provides a unique cross-sectoral platform for retailers to engage
and promotion of e-cigarettes and considering price interventions
directly with MSPs on the issues and challenges facing the independent
for tobacco products. SGF will lobby the Scottish Government to
convenience store industry in Scotland. To date the CPG has discussed
ensure that any proposed actions do not disproportionately burden
a range of subjects including: illicit trade and its impact on business;
convenience sector retailers.
protection of retail workers; deposit return in Scotland; convenience stores and their role in supporting Scottish businesses; and the future
ILLICIT TRADE
of retail.
The sale of illicit products impinges directly on the retail sector
SOFT DRINKS INDUSTRY LEVY (SDIL)
and can cover a range of products including tobacco, alcohol and pharmaceuticals. For example, in 2016/17 illicit and cross-border
SDIL came into force on the 6th of April 2018. Many producers across
tobacco sales cost UK shops approximately £3.9 billion in lost revenue.
the industry have responded by reformulating their products to
SGF recognise the importance of tackling illicit trade for convenience
reduce sugar content. SGF agree with the UK Government’s threshold
retail and so are members of the Scottish Anti Illicit Trade Group,
of 75% milk content in milk drinks. Milk drinks should not be included
which brings together public and private sectors with a clear focus
in this levy and milk drinks with a milk content of 75% will be subject
and strategic aim of reducing the scale, impact and costs of illicit trade
to the PHE’s sugar reduction targets which will be reviewed in 2020.
throughout Scotland. SGF will continue to be vigilant and proactive in
SGF suggested that Food Standards Scotland review this at this time.
this area.
Importantly, Dairy UK has found no correlation between the milk content of a product and its added sugar content.
SGF–SCOTTISH GOVERNMENT CAPITAL INVESTMENT PROGRAMME
MINIMUM UNIT PRICING
SGF were delighted to secure and administer a new £250,000 capital
On the 1st of May 2018 the Scottish Government implemented the
investment programme from the Scottish Government to support
Minimum Unit Pricing of alcohol.
independent convenience stores to introduce food-to-go stations
This represents a major intervention in the market place and is the
within their stores. Retailers were able to apply for up to £7,500 grant-
first time a policy like this has been implemented across a national
matched funding to install new food-to-go facilities. The award criteria
jurisdiction. The SGF retailers guide to MUP – produced in partnership
encouraged retailers to focus on locally sourced products and healthy
with the Scottish government – has been issued to all SGF members.
eating options. The grant period – which was oversubscribed – ran
The SGF guide has also been distributed by local authorities and
from 1st March to 30th April 2018. This was a unique opportunity
Licensing Standards Officers. The transition has been very smooth with
for convenience store retailers to innovate and respond to changing
no fall-off in sales. For C-stores, MUP probably has helped to create
customer demands through the development of a food-to-go offering.
more of a level playing field in terms of the competitiveness of the beers, wines and spirits category.
MINIMUM WAGE
RETAIL CRIME The implications of retail crime are far reaching. SGF’s Crime Report 2018 highlights that in-store crime can be incidents such as theft,
Convenience sector retailers operate in a hyper-competitive market
robbery, burglary, violence and verbal abuse. The SGF crime survey
and staff costs are a key element of this. SGF have been in regular
revealed that a staggering 100% of respondents experienced some
dialogue with the Low Pay Commission to highlight the costs retailers
form of crime in their store in the last 12 months. The SGF Safer
face in relation to increasing staff costs, particularly the consequences
Business Guide contains a package of guidance which helps retailers
of minimum wage rises. SGF have urged the LPC to take a cautious
to assess and address the risks they face. SGF are also working with
approach to increasing both the National Minimum Wage (NMW)
Daniel Johnson MSP to get legislation in place to give shop workers
and the National Living Wage (NLW). SGF have asked LPC to keep
additional legal protection.
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14
BUSINESS INSIGHT PROTECTION OF SHOPWORKERS BILL
IT’S JUST PART OF THE JOB T
BY DANIEL JOHNSON MSP That is the all too familiar and far too depressing refrain I hear from workers when I ask about violence and abuse at work.
hat is why, for the past couple
example bouncers, bar staff and restaurant
of years, I have been working
workers.
closely
Grocers’
with
the
Scottish
Federation
I want to challenge the idea that violence
and
and abuse are inherent in the workplace with
USDAW, the trade union, to
a new law, and we are close to lodging it in
bring forward legislation in
Parliament. If passed, that law will create new
the Scottish Government to
offences and aggravations for those caught
protect workers from the violence and abuse
abusing and assaulting workers.
they face on a regular basis. The survey work
The new law will also send a clear message:
that has been done by SGF shows how big a
Q A message to those who would be violent
problem it is for retailers: 99% of respondents
or abusive that this is totally unacceptable.
to the SGF Crime Survey in 2018 reported
Q A message to police and prosecutors that
receiving abuse or violence last year. The
the Parliament and the public believe
frequency has also increased, and for some it
this is an important crime and should be
can be weekly or even daily.
prioritised.
My interest in this area is sparked from my
Q And also a message to retailers that you
experience as a shopkeeper in Edinburgh
should feel safe at work, that you should
prior to being elected. I know that the
never accept violence or abuse, and that
most difficult times are when you have to
you will have the full protection of the law
challenge a customer – whether for proof of
when it happens.
age, or for suspected shoplifting – and I know the tension that causes.
I thank the SGF and its members for their
For that reason, my proposal is that the
support so far, and I know I can count on
law will also apply to people who regularly
retailers to make their voices heard when the
have to challenge people for proof of age, for
bill is lodged.
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BUSINESS INSIGHT FOOD TO GO GRANT
FOOD TO GO
BY FERGUS EWING MSP
In 2018 SGF launched a new £250,000 capital investment programme to help smaller independent convenience stores introduce food-to-go stations. The grant programme was developed in partnership with the Scottish government and was announced by the Rural Economy Cabinet Secretary Fergus Ewing MSP at the SGF Annual Conference 2017.
F
Over 100 applications were received and approximately 70 stores were successful in being awarded a grant of up to £7,500. Grants were awarded to stores all over Scotland, including a good representation from rural and island communities. Very helpfully, the Scottish government recognised that ‘traditional’ food-to-go offerings could be included in applications. Commenting on the success of the project the Cabinet Secretary said: “Food-to-go is fast becoming a growth market for many retailers but introducing the
ood-to-go stations offer a range
offer comes at an additional cost which can
of fresh hot and cold food and
present a challenge to small independent
drink to customers and the
grocers who are already operating on tight
Scottish
margins.
fund
Government-backed grants
“I was therefore delighted to support this
covering 50% of the cost of re-
provided
small
competitive fund in collaboration with the
fitting the store, new equipment
Scottish Grocers’ Federation to provide some
and displays as part of the government’s
much needed support to those who want to
overall efforts to support small businesses.
diversify and expand their offer to consumers.
Food-to-go is fast becoming a growth
It also provides a great opportunity to further
market for many retailers but introducing the
showcase the best of Scottish produce and
offer comes at an additional cost which can
encourage a shift towards healthier options.
present a challenge to small independent
“I appreciate just how much benefit
grocers who are already operating on tight
Scotland’s shop owners bring to local
margins.
communities, by providing vital services,
This competitive fund provided some
sustaining
and
creating
jobs,
and
much needed support to those retailers
contributing to the economy. The Scottish
who wanted to diversify and expand their
Government shares the SGF’s ambition to
offer to consumers. It also provided a great
improve Scotland’s trading environment, and
opportunity to further showcase the best
I hope we’ll continue to work together for
of Scottish produce and encourage a shift
many years to come, in order to achieve that.”
towards healthier options.
Very
encouragingly
the
food-to-go
To qualify for the grant funding retailers
initiative was mentioned in the Programme
had to show a commitment to offering
for Government for 2019, giving a real chance
at least some healthy eating options and
that it could be renewed and expanded next
locally-sourced products.
year. Watch this space.
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BUSINESS INSIGHT CROSS PARTY GROUP REPORT
F
ormed
on
20th
September
2016, the Scottish Parliament Cross-Party Group (CPG) on Independent
Convenience
Stores is now entering its third year. The CPG ensures MSPs are appraised of the issues and
challenges facing independent convenience stores and highlights the contribution that local neighbourhood shops make to Scotland’s communities and economy. The CPG has grown and has numerous business members from Booker and Scotmid to the Scottish Grocers Federation and the Scottish Wholesale Association, and many individuals from across the retail sector. The CPG has served as a real democratic platform for the sector. Members of the group have been able to question directly the Cabinet Secretary for the Economy, Jobs and Fair Work about business rates, the national living wage, and the extension to the small business bonus scheme were. Other guests have included Police Scotland
CROSS PARTY GROUP
BY GORDON MACDONALD MSP
and the HMRC to discuss illicit trade and counterfeit products, as well as platforming members such as Dr John Lee of the Scottish Grocers’ Federation who led discussions on deposit return schemes and the challenges involved (namely, the cost of running and administering such schemes and issues relating to storage and the use of reverse vending machines). To date we have formed sub-groups
Now in its third year and growing in numbers, the Scottish Parliament CrossParty Group on Independent Convenience Stores is a voice for retailers that Holyrood listens to.
to focus on three key areas of concern: convenience stores and the economy, retail crime, and community involvement.
age restricted items like alcohol and tobacco.
The sub-groups have been effective in
The community engagement sub-group
influencing the Scottish Government. The
and the Scottish Grocers’ Federation Health
economy sub-group have worked with
Living Team participated in St Andrews Day
the Scottish Grocers’ Federation and the
celebrations that provided customers with
University of Stirling on a number of projects
healthy food tasting sessions in stores.
concerning the true cost of employment and
I was delighted to be able to create
the economic importance of the retail sector.
this forum for independent convenience
The retail crime sub-group have worked on
stores to strengthen their voice in The
a members’ bill for the protection of retail
Scottish Parliament. Going forward, we will
workers, which would create new offences
continue to represent the sector and provide
around assault and abuse of retail workers
independent convenience stores with a
and those who were involved in the sale of
strong voice in the Scottish Parliament.
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CROSS PARTY GROUP BUSINESS INSIGHT
19
ABOVE: The historic inaugural meeting of the Cross-Party Group on Independent Convenience Stores.
RIGHT: Meetings of the Cross-Party Group on Independent Convenience Stores have been consistently well attended since launch by an impressive array of retailers, wholeslaers, suppliers, industry bodies, academics and significant numbers of MSPs from all major parties.
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20
BUSINESS INSIGHT CROSS PARTY GROUP
The Cross-Party Group has proven to be an extremely productive forum for sharing the concerns and challenges of the local retailing industry with leading politicians who play a key role in shaping the legislation that affects our industry.
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xxx
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BUSINESS INSIGHT LICENSING REVIEW
LICENSING REVIEW
BY STEPHEN MCGOWAN, TLT LLP
2018 has been a busy year in the world of licensing. It is often difficult to keep track of where we are and what a licence holder needs to be doing. In order to help, the licensing team at TLT have highlighted three of 2018’s key developments.
MINIMUM UNIT PRICING (“MUP”)
Shortly afterwards, following a public consultation,
MUP has long been seen by the Scottish Government
a minimum unit price of 50p was set with it coming
as a vital tool in combating Scotland’s unhealthy
into force on 1 May 2018. MUP applies to any
relationship with alcohol. It is suggested by the
premises that sells alcohol under and in accordance
Government that tackling the price of high strength
with a premises licence, i.e. a convenience store or
alcohol can help reduce alcohol consumption and
restaurant. In practice it is both a criminal offence
the related health harms. MUP was first introduced
and a breach of a premises licence to sell alcohol at
by the Alcohol (Minimum Pricing) (Scotland) Act
a price below its MUP, i.e. the price per unit (50p) x
2012 and after almost six years of appeals the
the strength of alcohol x the volume of the alcohol.
Supreme Court on 15 November 2017 found
Local authority Licensing Standards Officers are
that the legislation underpinning MUP was legal.
responsible for enforcing MUP. Importantly, the
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
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24
BUSINESS INSIGHT LICENSING REVIEW
2012 Act contains a sunset clause meaning the
licence holders sit their refresher training as soon as
legislation will expire after the sixth year unless the
possible and submit that training along with their
Scottish Parliament takes a positive step to extend
renewal application so that the two processes are
it. There will be an going evaluation process to
dealt with at the same time. Further announcements
assist the Parliament in their decision.
on this are expected but the message is certainly to
Guidance from SGF on how to implement MUP can be found at https://www.scottishshop.org.uk/ images/SGF-MUP-Communications.pdf
PERSONAL LICENCE RENEWALS & REFRESHER
get yourself booked on a refresher course asap. You should as a matter of urgency identify any staff members with Personal Licences that are expiring, and arrange for them to attend a refresher training course as soon as possible, and make sure they do both (a) lodge the renewal application
Five years after the debacle of Personal Licence
and (b) submit the evidence of refresher training,
refresher training, we are faced once again with the
within the relevant timescales. If you are in any way
prospect of thousands of Personal Licence holders
concerned about this, then call the SGF licensing
losing their licences should they fail to renew
hotline to seek further advice.
and refresh their licences. This in turn potentially jeopardies licensed premises’ authorisation to sell
NEW LICENSING BOARD POLICIES
alcohol should their premises manager not renew
All licensing boards should have their updated
their personal licence. There are two separate
statements of licensing policy in place by November
mechanisms: renewing your personal licence; and
2018. These policies will govern how the licensing
refreshing your training.
board deals with applications for at least the next
The law requires that renewal applications are
four years. Operators in the retail sector will want to
lodged no earlier than twelve months prior to
pay particular attention to a board’s over provision
expiry and no later than three months before expiry.
assessment as it will set out any areas where there
The first personal licences issued under the Act are
will be a presumption against the grant of any new
deemed to have an expiry date of 1 September
licence or application to increase licensed hours or
2019 and therefore, the window for first renewal
the alcohol capacity, i.e. it might curtail your ability
applications opened on 31 August 2018 and closes
to refurbish an existing store to have an enhanced
31 May 2019.
alcohol offer or open a new licensed store. For
In order to renew a personal licence the following
example, at the time of writing, Dundee licensing
must be lodged with the licensing board during the
board proposed to have an overprovision zone for
aforementioned window: (1) renewal application
off sales across its whole area; whilst Glasgow is
form; (2) two passport photographs (one certified);
proposing to add 5 or 6 new overprovision zones,
(3) evidence of training (see below); and (4)
and Edinburgh is proposing 38 (thirty-eight) new
payment of the £50 fee.
areas.
This renewal process is occurring at the same time as the separate requirement for refresher training, which must be sat and passed by the 10 year anniversary of the licence (before 1 September 2019) and the updated certificate lodged with the relevant board within 3 months of that date (before 1 December 2019). Having these two separate processes is very confusing. The Scottish Government have recommended that personal
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
The TLT-supplied SGF licensing hotline is free to use for all SGF members and is available 24/7 throughout the year. The number is 0333 006 1996. The SGF Employment law hotline is also free and you can reach them on 0333 006 1995. WWW.SCOTTISHSHOP.ORG.UK
MEMORY LANE: THE LAST 25 YEARS BUSINESS INSIGHT
25
SGF: WORKING
TIRELESSLY ON BEHALF OF THE INDUSTRY The SGF has been working tirelessly on behalf of its Members and the entire industry for 100 years. We take a look back at the last 25 years to see the progress that has been made.
1993
CONFERENCE AT TURNBERRY In 1993, we had an excellent double act steering the SGF with chief executive Lawrie Dewar and Bill Adye as President. Bill and his wife, Tina, were outstanding figureheads for the SGF, attending industry events across the UK on our behalf and always throwing themselves into the task in hand with typical enthusiasm. All of these events – at that time and now –
WWW.SCOTTISHSHOP.ORG.UK
provide opportunities for members to meet.
SUCCESSFUL YEAR
In 1993, with the support of our suppliers,
An unprecedented number of events, initiatives and
we decided to hold our conference at one
successes, alongside increased collaboration with our
of Scotland’s most prestigious resorts,
English, Irish and European counterparts made 1993 a
Turnberry. It was our 75th anniversary year
hugely successful year for the SGF. Our final big event
and marked a significant turning point for
was the 75th Anniversary Dinner in the Hospitality Inn,
the SGF.
Glasgow.
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
26
BUSINESS INSIGHT MEMORY LANE: THE LAST 25 YEARS
1994 SCOTT LANDSBURGH BECOMES PRESIDENT
SUNDAY LICENSING LAWS The Scottish Retailers’ Licensing Law Reform Group
Scott Landsburgh, an accountant who owned one of the
had been formed at the beginning of 1993 with Scott
busiest Spar stores in the Dundee area, became our new
Landsburgh appointed chairman and Lawrie Dewar
President and chose Crime, Competition and Poverty as
as secretary. This group was set up to encourage the
his theme.
Government to make changes in the law to allow the sale of alcohol in off-licences on Sundays.
He predicted that there was no room for complacency in an independent sector that had already seen many
Our campaign became a national one with the multiples,
retailers’ market share heavily eroded by the multiples
wholesalers, cash and carrys, co-operatives and most
and unrealistic rents in several areas threatening perfectly
independents getting behind it.
viable businesses. At that time, most independent stores were open on
NATIONAL LOTTERY LAUNCH
Sundays yet anyone wishing to buy alcohol had to go to the pub, leaving stores to block off their drinks sections.
One very significant development was the high-profile launch of the National Lottery. The first draw, televised
This was a big victory for the SGF with stores eventually
live from a store in Bearsden, near Glasgow, took place on
allowed to sell alcohol on a Sunday, between 12.30pm
November 19, 1994.
and 10pm, from December 1994.
1995
1997 DEVOLUTION
In this year we had the opportunity to meet
It seemed that there was a genuine
the Prime Minister, John Major, at a dinner
commitment by the then Labour
in Glasgow and were able to discuss various
government to push for Scottish
aspects of licensing matters.
devolution, and it also seemed likely that the Conservative Party would find it difficult to avoid taking some sort of action on this. The British Retail Consortium set up a working group on Scottish devolution to look
1996 YOUNGEST PRESIDENT
at how it would affect retailing in Scotland. Eddie Thompson, a BRC member via his Dundee-based business Morning
David Sands became the SGF’s youngest ever President in April 1996. David was
Noon
the fifth generation of the Sands family to run the David Sands retail business. In
chairman of the group with Lawrie
his first speech as President – made at Crieff Hydro – he focused on opportunities
Dewar as secretary. The working
and threats, and quoted his grandfather David Sands, who was President in 1954.
group considered the four main
&
Night,
was
appointed
areas – taxation, subsidiarity, land He had also seen great opportunities for progress, even if long hours, limited
property and planning – plus other
holidays and low profit margins didn’t make the grocery trade an easy one at that
issues for retailers in Scotland such
time.
as competition policy, standards and regulations.
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MEMORY LANE: THE LAST 25 YEARS BUSINESS INSIGHT
1998
LEGISLATION PILES UP This was a year that saw yet more legislation come into force, starting positively with the introduction
1999
stores starting from April 1. European legislation
SCOTTISH PARLIAMENT OPENS
also continued to creep in, with the EC Working
The new Scottish Parliament offered an
Time Directive coming into force on October
excellent opportunity to get closer to key
1. It covered the limitation of the working week
decision-makers without having to travel to
(48 hours), the number of hours in any 24 hours
Westminster, bringing government closer
(eight) for night workers and the entitlement for
to the people and encouraging greater
all workers to have at least 24 hours off in any
involvement by the SGF.
of a 50% rate relief scheme for certain village
27
seven days. Young workers would require to have two days off in any seven-day period.
The fact that rural and peripheral areas were over-represented in the Scottish Parliament
EDDIE THOMPSON BECOMES PRESIDENT
to counter-balance large populations in the central belt presented a further opportunity to promote the independent retail sector –
Eddie Thompson took over as President, setting
and encourage MSPs to take more interest
out a number of objectives for the next two years
in the often critical role that independent
including his involvement – and the SGF’s support
businesses play in local economies.
– in the Scottish Retail Consortium (SRC). The SRC was launched in 1999 and enabled us to play a key role in matters relating to the new Scottish Parliament.
ALAN LEIGHTON SPEAKS AT CONFERENCE The Annual Conference was held at Peebles Hydro with speakers including the much-admired Alan Leighton, then chief executive of Asda.
STUDY TOUR: GERMANY This year’s study tour saw a group travel to Germany where they visited various parts of the Frankfurt area, including Koblenz and Mosel. As well as store visits, the study tour included a visit to Asbach Brandy and the Binding brewery.
TRADE RELATIONS
2000 FAREWELL TO LAWRIE DEWAR MBE In December, President Dougie Edgar paid tribute to departing chief executive Lawrie Dewar for his dedication
David Sands and Lawrie Dewar held a meeting
over the previous 20 years, during which he helped grow
with the Scottish Licensed Trade Association to
and develop the SGF, and also enhance its profile.
discuss a number of issues dealing with publicity on current and future legislation regarding
Lawrie left the trade organisation in a strong position with
identity cards and underage drinking. A meeting
net assets of £1.2m and a staff of 50.
was also held with the Scottish Wholesale Association to explore ways of working closer
Former President and Spar retailer Scott Landsburgh,
together on relevant issues.
a long-term supporter of the SGF, was appointed chief executive.
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28
BUSINESS INSIGHT MEMORY LANE: THE LAST 25 YEARS
2001
2002 RECORD CONFERENCE ATTENDANCE
SERVICE CULTURE
A record 420 delegates attended the Annual Conference
Service was the watchword for 2001 and the theme for the annual conference
at St Andrews Bay Hotel in Fife when Jim Botterill received
at Gleneagles at which the President, Dougie Edgar, spoke of the importance
the presidential chain of office from outgoing President
of store development as a key element of service.
Dougie Edgar. The new President outlined his plans for the Federation for the next two years – these included
NEW STAFF & MEMBERS Jim Amabile joined SGF as membership development officer in February
relaunching the SGF helpline and also a new marketing and educational initiative on underage drinking and agerelated purchasing.
2001 and took over as managing director of PGMA (Scotland) when Sarah Jeffrey retired in June after many dedicated years with the company. The Scottish Co-op added 170 stores as SGF members.
HEALTHY EATING According to the Scottish Government, most Scots were
FOOT & MOUTH DISEASE
failing to eat a healthy diet. A campaign to improve the nation’s eating habits was launched and the Government
The foot and mouth disease crisis created problems for SGF members in
agreed to work with all sectors of the food industry
exclusion zone areas. A significant reduction in tourism was reported and
and the media to improve consumption of fresh fruit
prominent members such as Bill Adye of Drummore and Hamish Stewart of
and vegetables, and reduce our high-fat diet. The SGF
Biggar were examples of those who felt that current financial arrangements
would go on to launch a groundbreaking healthy eating
to help farmers should be extended to badly affected retailers.
initiative.
OPERATION SHOPKEEP Operation Shopkeep, first set up in 1996, was relaunched in September 2001. The campaign’s chairman Hamish Stewart and President Dougie Edgar both spoke at the event along with two retailers who were victims of crime. SGF guidelines for controlling crime in convenience stores were made available and a training manual was prepared by Support Training.
BANKING FIRST The convenience store sector saw the launch of the first convenience store bank in Scotland at leading members Botterills in Inverkeithing, Fife. The service, a partnership between Spar and the Bank of Scotland, meant that for the first time in Scotland, customers could shop and bank in their local store.
IFGA & NACS
2003 NEW FASCIA The SGF’s buying arm PGMA (Scotland) launched
2C
–
convenience
in
your
Chief executive Scott Landsburgh attended the IFGA conference in Vienna
community, a fascia trading group backed by
and, with President Dougie Edgar, the US National Association of Convenience
the buying power of Nisa-Today’s.
Stores (NACS) global summit in Las Vegas in October. During a study tour at this time, they concluded that Scottish stores compared favourably to their
THE NICHOLSON COMMITTEE
American counterparts and had higher non-fuel average turnover.
Scott Landsburgh and Pete Cheema, SGF Vice-President, were appointed to a new
NATIONAL LOTTERY
off-licence review committee – set up by the Justice Minister Cathie Jamieson – which
This would again be operated by Camelot, and the SGF was represented
was a recommendation of the Nicholson
by Eddie Thompson at the Neighbourhood Lottery Alliance. Here it was
Committee, established to review Scottish
reported that independents would continue to have a 60% market share.
licensing law as it applied to on- and off-sales of alcohol in Scotland.
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MEMORY LANE: THE LAST 25 YEARS BUSINESS INSIGHT
29
2004 HEALTHY LIVING NEIGHBOURHOOD SHOP INITIATIVE
FAMILIAR NAMES DISAPPEAR Consolidation in the Scottish
The initiative was launched by Robert
convenience sector saw both
Wiseman Dairies, CJ Lang & Sons, David
Sokolowski Convenience Stores
Sands, Morning Noon & Night and
(13) and Morning Noon & Night
Aberness.
(50) acquired by another SGF member, Scotmid. Falkirk-based
Originally known as the Wise Food
Argee’s outlets were bought by
Project, it subsequently went on to
Dundee-based Spar wholesaler,
become the Healthy Living Partnership.
CJ Lang.
2005
2006 ST ANDREWS BAY
NEW CHIEF EXECUTIVE
The SGF returned to St Andrews for its Annual Conference
John Drummond, previously with Morning Noon
for the fifth year running with 450 in attendance. New
& Night, joined the SGF as its new chief executive.
President Pete Cheema’s first duty was to present
John brought with him 35 years’ experience in
Eddie Thompson and Scott Landsburgh with honorary
the independent retail and wholesale sectors in
membership.
Scotland. A number of major issues came under the microscope, including the review of the Licensing (Scotland) Act and
2007
areas such as trading hours, fees and promotions as well as the lack of consistency in the interpretation of planning laws. It was also noted that the SGF’s most recent Retail Crime Survey revealed an increase in the number of crimes against independent retailers.
HOLYROOD MANIFESTO The SGF invited MSPs to attend the launch of its manifesto ahead of the Scottish Parliament elections in May 2007. Key areas covered in the manifesto were retail crime, healthy living, planning issues and the 100% Proof Campaign for a universal proof of age card. The Scottish Parliament elections saw the SNP become the new minority Government.
ACS LINK UP
2008 LOBBYING & LEGISLATION The burden of red tape and bureaucracy was a focus this year, although the SGF noted that having a Scottish
As part of the desire to have more influence at both Holyrood and
Parliament made a huge difference in its ability to
Westminster an agreement between the SGF and Association of
make its voice heard.
Convenience Stores was arranged.
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30
BUSINESS INSIGHT MEMORY LANE: THE LAST 25 YEARS
2009
ANNUAL CONFERENCE This year’s conference returned to St Andrews, chaired by Brian Taylor, BBC Scotland’s political
2014
editor. Colin Landsburgh, in his second year as
ILLICIT TRADE
President, welcomed delegates to the event which
The SGF again joined forces with the SWA and also the Scottish
tackled issues such as the proposed ban on the
Anti-Illicit Trade Group (SAITG) to highlight the escalating
display of tobacco products and inconsistencies
economic and community costs of the illicit trade in counterfeit
in the implementation of the Licensing (Scotland)
goods at a Parliamentary Reception at Holyrood in January.
Act. Hosted by Jenny Marra, MSP for North East Scotland and
2010
attended by MSPs including Kenny MacAskill, the Cabinet
SGF HEALTHY LIVING PROGRAMME
Secretary for Justice, the reception highlighted the dangers of the illicit trade that continues to cost the economy billions of
Public Health Minister Shona Robison announced
pounds a year and blights communities across Scotland.
an investment of £679,000 in the SGF Healthy Living
Programme
over
three
years. This
investment would enable more stores to get
PARLIAMENTARY DEBATE
involved in the programme – now in Phase 4 –
The SNP’s Gordon MacDonald, MSP for Edinburgh Pentlands,
and enable local authorities to expand the range
sponsored the first-ever debate on convenience stores in the
of products as well as create a Gold Standard for
Scottish Parliament in August. He expressed concern at the
stores which improved the promotion of healthier
impact and expansion of the supermarkets and discounters
products.
while the Minister for Enterprise, Fergus Ewing MSP, pledged to work with convenience store retailers.
2011
MEMBERSHIP Membership store numbers grew as the SGF welcomed hundreds of new stores including Spar, Nisa, Costcutter, Premier and McColl’s.
2015 Chief executive John Drummond announced his decision to retire in April after leading the SGF for nearly
2012
For corporate members, a new three-tier system
10 years. Spar retailer Pete Cheema was named as the
was established with Gold, Silver and Bronze
new chief executive, having served on the National
options.
Executive for 16 years and as President from 2006-08.
MINIMUM UNIT PRICING ON ALCOHOL
Over a three-day period in early January, the SGF and
The Alcohol (Minimum Pricing) (Scotland) Act
Scottish Local Retailer magazine teamed up to host an
2012 was passed in June but was tied up in a
exhibition in the Scottish Parliament, highlighting the
succession of court challenges, meaning that it
role local convenience stores play in their communities.
was never implemented until six years later.
More than 80 MSPs stopped by, including First Minister
SCOTTISH PARLIAMENT EXHIBITION
Nicola Sturgeon and her predecessor Alex Salmond.
2013 SWA COLLABORATION
LOCAL SHOP REPORT SGF published the first-ever Scottish Local Shop Report. The data in the report would be used to drive home the importance of the independent convenience store
The SGF joined forces with the Scottish Wholesale Association to produce a
sector to key policy and decision-makers in the run-up to
new trade guide for independent retailers and wholesalers selling tobacco,
the Scottish election in 2016. Developed in partnership
helping them comply with the new changes to tobacco display requirements
with the ACS, the report confirmed that local shops in
included in the Tobacco and Primary Medical Services (Scotland) Act 2010.
Scotland provided 44,000 jobs.
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MEMORY LANE: THE LAST 25 YEARS BUSINESS INSIGHT
31
2016 The SGF kicked off 2016 with the parliamentary launch in January of the Latest Scottish Local Shop Report at Holyrood. For the second year running the SGF also staged an exhibition at the Scottish Parliament to engage with MSPs, meeting with First Minister Nicola Sturgeon and opposition party leaders Ruth Davidson, Kezia Dugdale and Patrick Harvie.
CREATING AN SGF FOR THE FUTURE It had become apparent that there was a need to restructure the SGF to make it more relevant to its members. Chief executive Pete Cheema put new procedures in place and, in partnership with the National Executive, adapted its structure and Constitution to work more effectively for members. This
occasion for both the SGF and wider industry and a major
included changes to the SGF Board, PGMA (Scotland) and the
step forward in enabling retailers to meet regularly and
SGF Healthy Living Programme.
engage with MSPs. SNP MSP Gordon MacDonald was elected convener with the SGF’s John Lee, appointed secretary.
CROSS PARTY GROUP Over 50 retail representatives gathered for the first meeting
DEPOSIT RETURN SCHEME
of the Scottish Parliament Cross Party Group on Independent
With the proposed deposit return scheme still very much a
Convenience Stores. This was a historic and significant
concern, environment agency Zero Waste Scotland asked
2017
for evidence on the feasibility of implementing a scheme and Pete Cheema led a joint response from the SGF and ACS pointing out the challenges retailers would face.
AN EVOLVING MARKETPLACE
SUGAR TAX
In 2017, there was more industry upheaval than most of
The SGF expressed strong disappointment at the UK
us could possibly have imagined, including: Booker and
Chancellor’s announcement in the Budget that a sugar tax
Tesco £3.7bn merger; over 75% of Nisa’s members voting in
was to be levied on the soft drinks industry in a bid to curb
favour of a £137.5m takeover bid from the Co-op; Palmer &
the country’s obesity. The levy, to be introduced in April 2018,
Harvey collapsing into administration; and McColl’s signing
would have serious implications for independent retailers, the
of a deal with Morrisons which would see the supermarket
SGF warned.
become its sole supplier.
SGF MINI SUMMIT profile line-up of speakers, including Charles Wilson, CEO of
SGF-SCOTTISH GOVERNMENT CAPITAL INVESTMENT PROGRAMME
Booker and Cabinet Secretary Keith Brown.
A new £250,000 capital investment programme to
The SGF’s Mini Summit at the end of April attracted a high-
LAUNCH OF AWRS
support small independent grocers introduce Food to Go stations in their stores was announced by Rural
April 1 marked the launch of the Alcohol Wholesale
Economy Secretary Fergus Ewing at the 2017 SGF
Registration Scheme to stop illegal alcohol, where duty has
Conference.
not been paid, entering the supply chain.
MINIMUM UNIT PRICING
The Scottish Government-backed fund would provide grants covering 50% of the cost of refitting the store, new equipment and displays as part of our
The Scottish Government finally announced that it would
efforts to support small businesses. The grant was to
introduce minimum pricing (MUP) for alcohol on May 1.
be administered by SGF.
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34
BUSINESS INSIGHT ON TREND: FOOD TO GO GROWTH
FOOD-TO-GO TAKES A BITE OUT OF GROCERY RETAIL WITH GROWTH TO £22.8BN PREDICTED BY 2023 BY GAVIN ROTHWELL
Research organisation IGD’s Head of Foodto-Go offers four key takeaways from a sector that shows no signs of slowing down any time soon. GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
WWW.SCOTTISHSHOP.ORG.UK
ON TREND: FOOD TO GO GROWTH BUSINESS INSIGHT
T
he UK’s food-to-go sector is set to
year being EAT17 and the Co-op, have focused on
grow at twice the rate of overall
enhancing the range of food-to-go options on offer
grocery retail, with international
to meet more missions more effectively.”
research organisation IGD predicting
IGD’s food-to-go research splits the
THE PARTNERSHIPS TREND OF THE PAST YEAR HAS MUCH FURTHER TO RUN
market into five segments, with the organisation’s
“Across food-to-go, collaboration between partners
latest forecasts suggesting food-to-go specialists
with the same values and mutually beneficial
will experience the fastest growth. Increasing fusion
propositions, have been in the ascendance.
between the different segments within the market
Crussh and Sainsbury’s, M&S and Wasabi are two
is also anticipated as businesses look to extend
high profile collaborations, but there are already
their core capability into new areas.
many more underway and we expect significant
the channel to grow to £22.8bn by 2023, up from £17.8bn in 2018.
35
development here. Larger retail stores undergoing
2018
2023
CAGR
remodelling in particular offer some great
value
value
2018 – 2023
(£bn) (£bn)
opportunities for collaborations between retailers
(%)
Food-to-go specialists
4.9
6.4
5.7
Quick service restaurants (QSRs)
5.6
6.9
4.3
Coffee specialists
3.1
4.0
5.3
Convenience, forecourt & other retailers
2.8
3.6
4.9
Supermarkets & hypermarkets
1.4
1.8
5.3
Total
17.8 22.8
5.0
and food-to-go partners.”
EVOLVING WITH CONSUMERS’ DEMANDS IN HEALTH AND WELLNESS AND AROUND SUSTAINABILITY IS INCREASINGLY CRITICAL “The best food-to-go operators are highly attuned to the wider mindset of their shoppers. They have
Gavin Rothwell, Head of Food-to-Go at IGD,
responded to shape their wider propositions
says: “The food-to-go market remains a strong
accordingly. Increasingly this will become expected
growth opportunity that continues to provide a
by food-to-go consumers, and those that don’t
great source of inspiration and innovation. We’re
keep up will stand out.”
forecasting solid growth across each of the five
strong as more consumers buy food-to-go more
FOOD-TO-GO IS INCREASINGLY MOVING BEYOND THE HIGH STREET, AS OPERATORS LOOK TO OPEN UP NEW TYPES OF LOCATION
often and as more operators target different types
“While online ordering and delivery is one aspect
of locations and missions.”
of this, perhaps in its current form the online
segments, but this will become harder to come by for operators, retailers and suppliers amid an increasingly competitive landscape. But while growth will slow, we’re expecting it to remain
INCREASING BLURRING BETWEEN THE DIFFERENT SEGMENTS
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opportunity will only be transformational for a select few. More widely however, getting into new, different types of locations, including forecourts and
“As more business look to extend their food-to-
other travel locations, is likely to be an increasingly
go capability, retailers and food-to-go operators
significant route to growth for a growing number of
alike will look to add new capabilities to meet
players in food-to-go. Across a variety of missions,
more missions. Specifically, food-to-go specialists
locations and segments, the food-to-go market
as diverse as Greggs and Coco di Mama have
remains worthy of considerable focus and attention
been bolstering their coffee credentials, while
for those looking to grow food and drink businesses
convenience stores, among the most notable this
over the next five years.”
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38
BUSINESS INSIGHT THE CONVENIENCE MARKET
BACK TO THE FUTURE
T
Why is it that independents represent over 40% of the UK’s convenience stores, but can only muster under 20% of sales? KAM Media’s Blake Gladman thinks retailers must address the past before they can move forward.
BY BLAKE GLADMAN
he independent convenience market
to symbol stores, who have around 7% less share of
has been a sleeping giant for too long.
stores but almost double the share of sales. It’s clear
Sure, it’s resilient – fortifying the walls
that there is a huge, untapped, opportunity for the
as the hounds of the symbols and
independent sector in convenience that is just not
supermarkets attack from all sides. Yet
being realised.
hunkering down and battening the
So why do we think this is the case? Well, the
hatches is not a strategy for the long
obvious answer is to say that independent stores
term. Each year we see market data that suggests
do not have the same, consistent, standards as their
the total convenience market is in growth, yet I
more developed symbol fascia counterparts, and of
would wager that the independents are not putting
course they will never have the same buying power
their heads above the parapet enough to see the
and centralised management of the supermarket
potential riches on offer.
c-stores. This is arguably the case and certainly the
Put simply, independents make up close to 42% of
reason that we see such a gap in terms of their scale
total convenience stores in the UK, yet they account
versus their share of spend. With a lack of consistent
for approximately 18% of total sales. Compare this
quality in fresh, competitive prices, high customer
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
WWW.SCOTTISHSHOP.ORG.UK
THE CONVENIENCE MARKET BUSINESS INSIGHT
service levels and enticing store environments it’s
box company. Will Shu was 33 when he created
little wonder that the majority of independents are
Deliveroo and Guka Tavberidze, was 28 when he
struggling to hit the sales numbers that would be
founded Savse smoothies, now recording sales in
deemed routine by their more established cousins.
excess of £12m per annum.
However, I’m sure I’ve seen this picture before.
What do all these people have in common, apart
In fact, I’m sure that this disproportionate share of
from the fact they are incredibly successful? They all
sales is a challenge that the independent sector has
saw an opportunity for a successful business within
faced for many, many years. So, the real question is
the food and drink industry. Admittedly, Logan Plant
why haven’t we seen any significant and tangible
is the son of Led Zeppelin front man, Robert Plant so
improvements in this time?
perhaps he had a bit of a helping hand. Still, there
We know from KAM Media’s recent research report
may not be a stairway to heaven but there must be a
into Generation Z that 41% of 18 to 24-year-olds
stairway to success for somebody looking to make a
want to run their own business. We also know the
splash in the convenience sector.
sort of trends that would appeal to both budding
Ultimately, the question remains, why aren’t we
entrepreneurs and to the younger generation.
seeing more, younger, entrepreneurs looking to
Trends such as local and authentic are influential
the grocery retail sector as a potential business
factors for example. There would certainly be an
opportunity? Perhaps the answer lies in history, or
appeal in owning an independent business that can
more specifically in the perception of history.
source products/ingredients from the local area, that
Your local shop down the road is still, in most parts,
can compete against the established ‘big boys’, that
thought of as the same store you went to 20, 30 or 40
can use social media and the internet to connect and
years ago. The place you buy a newspaper from, or
engage with its customer base and that can make a
where you go when you’ve run out of milk or bread
difference to a community.
and pick up a few bits and bobs whilst you’re there.
We can also see that there is a relative lack of
As an industry we’re still guilty of concentrating
investment into the independent channel from
on products and ranges rather than occasions and
the current incumbents. The latest ACS Local Shop
experiences. A modern-day retail store is less about
Report shows that average annual investment by
the individual products they sell and more about
independent retailers is £7,000, half that of symbol
the mission it can satisfy and the pleasure it can
retailers, and barely a drop in the ocean compared to
provide. Clearly you have to have products to sell
the multiples, who invest an average of £38,000 per
but think about what you hear from restaurants and
store per annum. It’s no surprise to learn that there is
foodservice outlets in the media. There’s not a lot of
a direct correlation between level of investment and
talk about how many tubs of mayonnaise they need
store turnover.
to purchase per week but about how they need to
How can independents expect to keep pace when they’re not putting the necessary investment into their stores to keep up with the latest demands for fresh and food to-go?
meet customer expectations, deliver an experience and wow the senses. It’s little wonder anyone wants to start a business whose focus appears to be fixated on profit
The report also shows another startling statistic
margins, cost control and range reviews… where’s
in terms of store ownership. The age breakdown of
the excitement in that? We need to look outwards
symbol and independent retailers who own their
rather than inwards and recognise that we’re all
convenience store shows that only 9% of them are
playing in the same park – providing a service to
under 30, and 18% are between 31 and 40. Compare
our customers. Take a lesson from other industries
that with the 49% who are over 50 and you can begin
who have a thriving, buzzing independent sector
to piece together a picture of what’s preventing the
and who attract real innovation and entrepreneurial
independent sector from maximising the tools it has
spirit.
at its disposal.
There’s a ‘whole lotta love’ for the independent
Logan Plant, founder of Beavertown Brewery, who
sector, but we need to learn to shout loudly and
recently sold a stake to Heineken for £40m, set up
proudly about the assets we have in order to ensure
the business aged 32. Hello Fresh founder, Dominik
that the independent retail channel isn’t consigned
Richter, was 26 when he set up the successful meal
to the history books.
WWW.SCOTTISHSHOP.ORG.UK
39
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
40
BUSINESS INSIGHT HEALTHY LIVING PROGRAMME
NEW ERA FOR HEALTHY LIVING PROGRAMME BY KATHRYN NEIL
W
hen
the
SGF
Healthy
Living Programme (HLP)
accelerate that shift.
first sparked into life in
It’s also worth noting that the Programme was
2004 with the aim of
first initiated not by the Scottish Government but by
improving the accessibility
suppliers and retailers like Robert Wiseman Dairies,
of healthy affordable foods,
Aberness, Botterills, CJ Lang & Son, David Sands,
particularly
deprived
and Morning Noon and Night. This wasn’t a solution
areas, very few people could have predicted the
imposed on the sector; it was an initiative driven by
revolution that it helped kick start.
a sector keen to be the agents of positive change in
in
Back then, it was a rare convenience store that had a decent range of fresh fruit and veg and the chilled market was similarly in its infancy.
The SGF Healthy Living Programme helped kick start a fresh and chilled revolution in local retailing – but the hard work is only just beginning, says Programme Director Kathryn Neil.
the Programme can certainly claim to have helped
communities right across Scotland.
NEW ERA, NEW CHALLENGES
Fast-forward to 2018 and there’s hardly a refit
I’ve been with the Programme since day one and
takes place in Scotland that doesn’t involve creating
officially took over its management in June this year,
more fresh and chilled space and putting it in higher
right at a very important stage in its development.
footfall areas of the store.
In the local retailing arena we’ve been focusing
When the Programme was first launched I think
almost exclusively on fresh produce and we’ve been
a lot of local retailers, and plenty more in the wider
exceptionally successful in working with retailers to
industry, were a little skeptical about its prospects
ensure that fresh fruit and veg is widely available
of success. A lot of retailers thought our aim of
these days.
making healthier, affordable foods available to a
There are now 2,226 retailers in Scotland who
wider audience was commendable but they just
have HLP stands or POS in store and we’re currently
didn’t believe that stocking fruit and veg would be
in the midst of a trial in 120 McColl’s stores. But the
commercially viable.
next phase of the project is to work with retailers to
Now, of course, it’s an entirely different kettle of fish. If you look at most convenience stores in
widen the scope of healthier products they stock, not just fresh produce.
Scotland these days the fresh and chilled fixture is
And that is a significant challenge, not least
a fundamental part of their offer. Fresh and chilled
because it’s a fiendishly difficult task to provide a
now gets a lot more space in-store and more often
working definition of what constitutes ‘healthier’.
than not it’s sited in a very prominent high-traffic
With the growth of healthier consumption patterns
position.
among consumers and current vegetarian and
Much as I’d like to, I’d be lying if I said this change
vegan megatrends there is undoubtedly an appetite
was entirely the result of the HLP though; consumer
among both consumers and retailers for healthier
buying habits have moved progressively towards
lines. The problem is that defining a healthy product
healthier consumption over the years but I think
is, at a practical level, extremely challenging. The
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
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HAPPY 100 YEAR ANNIVERSARY!
FROM THE
Looking forward to continuing our special relationship for the next 100 years *Kantar Worldpanel, Value Sales, Take home non-alcohol brands, MAT to 22.05.17, Total Scotland
42
BUSINESS INSIGHT HEALTHY LIVING PROGRAMME
reality is that many products that most retailers
to the new Best Start Food voucher scheme. This
would instinctively believe to be healthier turn out
will commence with a trial scheme in February
not be when they are measured against the Scottish
2019. Best Start will offer families below a certain
Government’s complex criteria.
household income vouchers which can be used to
The oft-cited example is tinned tuna. On the
buy fresh produce, milk, pulses and both tinned and
face of it, this seems healthy enough. But as most
frozen fruit and veg. Local retailers will be able to
tinned tuna has been heavily processed, most of the
sign up to accept the vouchers.
omega-3 oils that make tuna nutritionally desirable
This represents an important revenue opportunity
have been stripped out. The result? Tinned tuna
for retailers. We expect that a smart card system
doesn’t make it onto the healthier list.
will be implemented at some point next summer
That is just one instance of what is a real and
which will mean that retailers will get cash for the
very serious challenge. In an ideal world we would
vouchers they take straight away. We are currently
provide local retailers with a big list of every SKU
working with the Scottish Government on the
that meets the criteria but in practical terms that’s
implementation of the scheme and also on training
just about impossible to do.
retailers on how to operate the scheme in-store.
The Scottish Government’s criteria take into account a whole range of factors including things
ONWARDS AND UPWARDS
like salt, sugar and saturated fat content but the
It’s been a challenging few months for the HLP, what
problems of examining every single product in a
with GDPR, recruitment and a shifting focus – but
store and giving it a tick or a cross are obvious.
it’s also been great fun. My long experience of the
We’re currently working hard to solve this problem,
Programme means I understand retailers’ concerns
and to ensure it will be one that retailers are happy
and I understand that everything we do has to take
with; my years of working within the local retailing
account of their legitimate commercial interests.
trade mean I am very conversant with the practical
We have a great track record of working with
issues retailers face in-store and will help represent
retailers and we fully intend to build on that in the
those concerns and challenges when working with
future, not least with an ongoing commitment to
the Government to find a solution.
our very popular Big Breakfast and Healthy Living
The Scottish Government has also recently
Days.
launched a consultation on the ‘Promotion of
We’ve held a combined total of 55 of these
High Salt and High Sugar Products’. The headline-
across Scotland so far. That means we’ve got our
grabbing outcome of this consultation is likely to be
healthy living message in front of a total of over
some form of restriction on the sale of confectionery
10,500 children and have been able to help them
at the tillpoint as well as constraints on how these
understand the importance of a good breakfast and
types of products can be promoted.
a good diet.
I can’t predict with 100% accuracy that this is
More and more wholesalers and symbol groups
what the consultation will lead to, but the fact that
are now encouraging their retailers to participate.
these issues have already been made public in the
That’s fantastic for us, retailers and the community.
THE HLP TEAM Q PROGRAMME DIRECTOR KATHRYN NEIL Q KEY ACCOUNTS MANAGER JOHN DRUMMOND
‘Scotland’s Diet & Healthy Weight Delivery Plan’
The events are basically a ready-made solution
document that was published in July certainly
for retailers and we can even provide them with a
suggests that we can expect movement in this area.
step-by-step guide to hosting one, as well as help
WEST
I would therefore encourage local retailers to
organise the day and liaise with the local school
YVONNE MACDONALD
embrace these developments and start making
Q DEVELOPMENT MANAGER
involved. Q DEVELOPMENT MANAGER
plans for the continuing evolution of the retail
A focus on encouraging retailers to embrace
environment. It’s entirely understandable that
‘impulse fruit’ and healthier meal deals is also going
GLASGOW
retailers will find these changes difficult but I would
to feature in our future plans to help improve the
GILLIAN EDGAR
ask that these challenges are tackled in a positive
nation’s health.
manner.
This is a job that is only part done. In fact, it will
Q DEVELOPMENT MANAGER
When the consultation is concluded we will have
arguably never be completed, but the HLP has made
NORTH
a much clearer picture of how the future lies and the
enormous strides so far. I can only offer massive
CATHERINE STEWART
role that the Programme can then take in helping
thanks to all the retailers across the country who got
retailers move forward.
involved. We couldn’t have done it without them –
One change definitely on the horizon is the migration of the Healthy Start voucher scheme GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
Q DEVELOPMENT MANAGER
and there’s a lot more we need to do together in the
CENTRAL
future.
JEN LUBBERS
WWW.SCOTTISHSHOP.ORG.UK
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44
FASCIA, SYMBOLS & FRANCHISES
BETTER TOGETHER? Perennially rising costs and ever-tougher competition mean that in today’s local retailing industry the choice is less about whether to join a symbol group or fascia than it is about which one to join. Without the backing of a major group it’s becoming all but impossible for many retailers to maintain a competitive offering. So what exactly should a retailer do?
L
et’s be honest, for many independent local retailers in Scotland these days the choice is less whether to join a fascia group or franchise and more about which one to join. Life as an unaffiliated independent is looking increasingly unsustainable for many as the costs of
being in business just seem to keep growing by the week.
The lure of becoming part of something bigger is an enticing one and is one of the few decisions that an unaffiliated retailer can make that is all but certain to improve the business. Access to much greater buying power and all the benefits that come with being part of a larger organisation can be the difference between profit and loss in today’s ultracompetitive market. Joining a symbol group or fascia doesn’t mean that retailers need to lose their independence – quite the opposite. While the various groups all have different criteria that members must meet in terms of buying commitments and compliance, the one thing they all share is commitment to allowing local retailers to retain their independent status, something that’s non-negotiable for most. But joining a group offers all the benefits of being
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
WWW.SCOTTISHSHOP.ORG.UK
FASCIA, SYMBOLS & FRANCHISES
part of a nationwide collective of like-minded
you might want to consider joining a cash & carry-
retailers with access to big buying power and
based symbol group where you would normally go
the many invaluable support mechanisms that
into depot and pick up the goods yourself.
membership of a symbol group brings.
The pros for retailers considering joining or
The attractiveness of that offer can be assessed
switching symbol groups are numerous, not least
by simply looking at the sheer number of stores
because of the support a fascia can offer a retailer
that now belong to one symbol group or another.
in every aspect of running their convenience
In 2002 around 22% of stores were members; that
store, from exclusive discounts and buying power
number is fast approaching the 50% mark today.
to staff training, running a social media page and
One other point worth noting is that very, very few
availability of new technologies.
retailers decide to return to being unaffiliated after
Being part of a symbol group gives you the
joining a group. They may subsequently switch
backing and the knowledge, from promotions to
symbols, but they don’t tend to go back to being
posters and displays, along with the merchandising
unaffiliated once they’ve had a taste of what’s on
system and product knowledge to help make your
offer as part of a bigger group.
business a success.
So whether you are considering joining one of
Groups will send several reps and provide supplier
these groups for the first time, or are considering
contacts. They can offer an in-depth analysis of
moving from one to another, this guide will provide
what you should stock, where you should stock it
you with the key data you need to make a fully
and how much you should be making.
informed decision as to which fascia is right for you.
The support and advice that is given regarding
The great news is that the range of choices
store development should soothe shop owners
available has never been greater. Each partner
who are nervous of change, and groups may
has its own particular strengths, but they all offer
introduce their own recommended shopfitter to
buying power, a household name above the door
give you help with project planning and store
and a comprehensive support network covering
layout. Many also have their own consultants who
everything a retailer needs to remain competitive
can do detailed reports on potential or increased
in today’s retail environment.
turnover.
Choosing a symbol group can seem an
These can be simple or very detailed, taking into
intimidating task. It is a big commitment, especially
account the demographic area around the shop
if you are already tied into a contract or faced with
and local competition.
joining fees – whether this is in the form of an
Sometimes there will be a fee, but it may be worth
admin charge, buying shares or paying for signage
the cost as often it gives additional industry-specific
or delivery. But there is no doubt it can pay huge
information that will support any application. This
dividends.
information, when backed by the weight of a
How to decide which symbol group is right for you will ultimately depend on your shoppers and what they want you to offer them.
symbol brand, can add an influential supporting voice to any finance application. Retailers
should
ask
themselves
whether
It might come down to the kind of store
remaining unaffiliated is detrimental to their
standards you are prepared to meet and your ways
potential as a business. Whatever level you decide
of working. If, for example, you are simply looking
to go in at, it is best to do your research before
for a way of running promotions effectively then
determining which symbol group is right for you.
WWW.SCOTTISHSHOP.ORG.UK
45
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
Shopper’s Favourite Symbol Retailer 2018 Shopper’s Favourite Community Retailer 2018
|
Shopper’s Favourite Convenience Retailer 2018
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48
FASCIA, SYMBOLS & FRANCHISES
DEVELOP THRIVE AND
account celebrates partner successes as well as offering industry news, trading advice and Nisa business updates. Nisa’s
flexible
model
provides
its
retailers with an unbeatable breadth of range comprising over 13,000 SKUs. This is supported by Nisa’s award-winning own label range, Heritage. This provides retailers with more than 800 great quality products at affordable prices and includes numerous award-winning lines such as the Heritage wine range launched in 2017. Nisa retailers now also have access to a wide selection of Co-op’s high-quality own-brand products across all categories. This is all delivered by Nisa’s industry-leading supply chain, which retailers can trust with an impressive 99.9% of deliveries made on the day and 95% successfully made on time. Nisa understands its retailers and their marketplace, enabling them to modify their offer to match the ‘local’ demographic and to create bespoke planograms and layouts
W
within their individual sites. Through Nisa membership retailers can
ith multi award-win-
backed by competitive prices and promotions
take advantage of the Retail Academy which
ning
with access to a deeper range.
provides a complete training solution to
stores
such
as Ardeer Services,
Independent retailers have the option to
Greens of Markinch,
operate under a choice of symbol fascias: Nisa
Pinkie Farm Conven-
Local, Nisa Extra and dual-branded, whereby
Retailers are offered a full support structure
ience Store and Gia-
a partner can maintain their local identity
comprising a strong field team covering
copazzi’s Milnathort,
whilst also benefiting from the strength of
Retail Development Managers and Regional
to name a few, Nisa is the proven partner
the Nisa brand. Alternatively, retailers can opt
Retail Managers, in addition to Fresh
of choice for many market-leading, inde-
to trade under their own independent fascia.
Food Development Managers and Store
Nisa offers flexibility to retailers with their
Development Managers who help further
pendently minded retailers in Scotland.
develop staff and help provide the best possible customer service.
We have worked tirelessly for more than
Store of the Future Evolution format. This is a
40 years to ensure that we provide all of
move towards a more modular development
the tools required to compete against
format,
individual
is key. As such its retailers can support
the ever-increasing competition in the
demographic and shopping missions of
local good causes through Nisa’s Making a
convenience retail sector. Importantly, we
every store, Nisa Abbey View in Dunfermline
Difference Locally charity, which has donated
don’t operate any company-owned stores,
being one of the recent such developments.
more than £7.8m to UK communities since its
accommodating
the
develop stores. Nisa also knows community involvement
so don’t compete with our retail partners
A complete retail support package is
and don’t have restrictive loyalty levels that
offered, which comprises a strong retail-
impact on margin and the ability to trade
focused
category
the partner website and can rely on superb
independently.
team,
an
enhanced
launch 10 years ago. Retailers can join the Nisa group through
management system, a staff training facility
support from the skilled in-house staff
In May 2018 the Co-op completed its
and a comprehensive marketing package
involved in the joining process.
acquisition of Nisa Retail Limited. The
incorporating bespoke leaflets, personalised
wholesale
an
Nisa FM radio, point of sale material and
environment in which independent retailers
national advertising. Excellent social media
can flourish. It brings enhanced buying
support is also provided with partners
capability, allowing Nisa Partners to trade
receiving assistance in running their own
their businesses in the way they choose,
sites. And the corporate Nisa Retail Twitter
operation
will
provide
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
Complete the form at www.join-nisa.co.uk/contact-us or contact our development team on 0800 542 7490. WWW.SCOTTISHSHOP.ORG.UK
O T D E T T I M M CO
S R E L I A T E R R OU SINCE 1977
“I chose Nisa and have stayed with them because of the wide range of chilled and ambient products available just a click away, with the best prices in the market and great promotions for our customers. I’m so glad to be a part of Nisa as availability of stock is great with great delivery services.
I joined Nisa as an independent retailer many years ago, then I moved my store under the Nisa brand fascia in 2016, when we rebuilt the whole new building and we designed our store with Nisa’s outstanding designing and merchandising team. Recently we’ve also had a great chance to try Co-op’s best-selling own-label range which has increased my shopping basket.”
Join the family... visit www.join-nisa.co.uk
I’m looking forward to what’s to come in the future with Nisa. Mahmood Saleem, Nisa Local, Ardeer Services, Stevenston, Scotland
“SCOTTISH CONSUMERS LOVE THE ONE STOP OFFER AND OUR WEEKLY SALES PROVE IT!” “If you would have told me that our average weekly sales would increase by 350% in less than two years I would have said you were mad, but that’s exactly what’s happened! One of the main reasons we chose One Stop is because they are retailers, not wholesalers. To some retailers franchising might seem restrictive, but I promise you that the benefits far outweigh that. The reason so many shops are failing is because they stay the same, the convenience landscape is changing drastically and we’ve been successful because we’ve been innovative and moved with the times. Surely everyone’s goal is to grow their business and to make life easier for themselves, so you can focus on what truly matters to your customers, providing the best customer service possible. The franchise model is a proven, successful format that takes all the worry and stress out of retailing. One Stop face into the same issues that we do, which is why you have support across every aspect of your business. My honest advice to all Scottish retailers who are worrying about the future, like I was, would be to think differently and explore franchising – it’s the best business decision we’ve ever made and we are so excited for the future!” Yasmine Mohammed,
One Stop Stoneyburn, West Lothian
Our weekly sales have increased by 350%, in less than two years!
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Winner: Shop Layout. Winner: Availabilty
2016
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WINNER FRANCHISE GROUP OF THE YEAR
HOW A * £50,000 REFIT COULD TRANSFORM YOUR STORE Running a store is hard work, and we want to make sure you are profiting from all of the hours you are putting in, which is why we would like you to consider becoming a One Stop Franchise.
We have the expertise and tools that will grow sales and profits, from our market-leading EPoS systems with auto replenishment, to our focus on people training to help you focus doing the right thing for your customers and your store.
The £50,000* investment that One Stop makes will transform your store into a fresher and brighter environment that your customers will love. Our market-leading promotions will give customers that extra reason to come to you. We have great £3 lunchtime meal deals, 2 for £4 evening meal solutions, strong fresh and produce deals, milk, bread, and eggs for £1 and great everyday low prices on daily essentials.
With our backup and insight from retailing in over 900 stores 7 days per week, we continue to innovate and develop our offer and services. We truly understand what customers want and need. If you want to invigorate your business, we’d love to hear from you, so feel free to get in touch with our team at anytime.
Find out how you could profit more from One Stop Call: 01543 363 003 Twitter: @1StopFranchise Visit: www.openaonestop.co.uk *ex VAT. Subject to terms and conditions of contract.
DO YOU WANT TO BE PART OF SOMETHING SPECIAL?
Join Day-Today to become the very best in retail! The Day-Today group offers retailers the perfect package of a fresh, modern and professional image in your area, and combined with the right core range, fantastic value and friendly service, you will have everything in place to succeed. We have a store redevelopment programme that is second to none in the industry, focussed on providing independent retailers with the support they need to stay ahead of the We have a nationally recognised consumer campaign and underpinned by high-quality fully integrated point of sale material and social media marketing. Our next generation stores project a truly professional image, both externally and internally to your customers. Equipment, modelling and ranging planned to the last detail.
Day-Today represents local shopping at its very best.
BEST SYMBOL GROUP 2017 AND 2018
BEST SYMBOL GROUP 2017 AND 2018
“We’re up against some of the top stores in the country and it’s quite good to get that recognition in such a short space of time.” “I think the success is down to a number of things.” “For a retailer like us, we have to make sure the community can get everything they need at a local supermarket without having to go to one of the giant stores.” Imran Ali, Award-Winning Day-today Bourtreehill The Biggest & Best Symbol Group in Scotland
In-House Chill & Freeze
500+ Stores
Market Leading Technology
Best In-Store Promotions
Dedicated Support Team, Project Managers,
Free Leaflets
Business Development Managers
Free POS
and an In-House Merchandising Team.
Contact David Thomson
07741 905 373
www.uniteduk.com
mylocaldaytoday
Join our first class team Meet one of our newest members, Daryl Philp We initially decided to join the SPAR Brand due to the extensive support network and we’re really glad that we made the right choice. SPAR has given us so much time and support and were fantastic with the shopfitting and making all required adaptations needed to convert a former bank to a store. Our customers have also loved the SPAR Brand. With such an extensive range in the own brand label, including their ‘best in class’ chilled range, our customers love the quality and range of products we offer as well as big brands at reasonable prices. We’re so happy that we chose SPAR; we joined a brand but became part of a family. Daryl Philp Owner - SPAR Aberdour
SparScotlandOfficial
@SparScotland
Recruiting across Scotland Your chance to join us and grow • • • • • • •
SPAR, a trusted, award-winning brand Great product availability Best in class chill offer Margin enhancing, exclusive own brand offer Dedicated account management Regular store callage Business development, not box pushers To join the best, award-winning • A business partner, business in Scotland. not a supplier Call us now on 01382 512000
CJ Lang & Son Ltd, Longtown Distribution Centre, 78 Longtown Road, Dundee, DD4 8JU www.cjlang.co.uk www.sparscotland.co.uk
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FASCIA, SYMBOLS & FRANCHISES
DEVELOP AND THRIVE
Committed to helping Scotland’s independent retailers thrive, Costcutter Supermarkets Group is leveraging its new supply agreement with the Co-op to offer retailers an exceptional range and simplified commercial terms.
And our new rebate scheme rewards their purchasing, offering up to 6% rebate every six weeks. Last year we launched our unique Shopper First Programme: a transformation programme that brings together shopper insights and sales-driving range initiatives, along with new brand and store design. Every retailer has been provided with detailed shopper profile information for their store, including details of our five core shopper personas. Our retailers can better understand their potential local shoppers with this insight and use it to develop a truly local offer that attracts new shoppers into their store. Combined with the new Coop relationship, our retailers will be better placed to respond to key shopper missions, especially when it comes to the all-important fresh food and food-to-go categories. Our new Costcutter brand and store designs – which have been created to connect with today’s shoppers, stand out from the crowd and transform the in-store experience – have already been rolled out to dozens of stores. The fully flexible modular approach allows retailers to invest at a pace that suits their individual needs and focus on the key shopper missions. This new look Costcutter sits alongside the Mace fascia, so retailers can select the right brand for their store, all underpinned by shopper insights. Soon we will also be adding a Co-op franchise offer to our store portfolio. Already successfully trialled at one
O
ur
of our company-owned stores, it will provide our retailers with an alternative brand help
all of this is our direct to store
to attract shoppers, while
independent retailers thrive,
mission
is
to
facility, which lets retailers
allowing the store owner to
giving them the support
source local and specialist
they need to grow their
products.
business by meeting the
take a step back from the dayto-day running of the store, as
In conjunction with our new
their team will benefit from the ‘by
changing needs of their local
supply deal, we’ve also simplified our
the book’ store management that Co-op will
shoppers.
commercial terms. Costcutter retailers can
provide.
Following a wholesale supply agreement
now benefit from the most transparent and
By putting the needs of shoppers first, we
with the Co-op, our retailers are even better
easy to understand terms in the market,
are providing our retailers with the ability
placed to meet the needs of their shoppers
boosted by a rebate scheme that cannot be
to meet changing shopper expectations
with an improved range, offer and delivery
bettered. We’ve returned to our no levy, no
and buying habits, delivered through fresh,
service. Over 13,000 lines are available. The
surcharge model, backed by competitive
modern store brands that engage with
Co-op own-brand range is rolling out and will
bench-marked pricing, so our retailers can
shoppers and help them to continue to grow
eventually offer 2,000 SKUs. Complementing
clearly understand the costs to their business.
their business.
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
WWW.SCOTTISHSHOP.ORG.UK
Helping you grow your business by putting shoppers first
Are you looking for a partner that will work with you to grow your business to its full potential? Look at what Costcutter can offer you! Fresh, new store brand Right range for your store Support from a team of experts Great promotional package Cutting edge technology solutions Great rebates - earn up to 6%
Our UNIQUE shopper insights drive new footfall AND increase sales with existing shoppers
Give us a call:
01904 232 505 l Come and meet the team l Let us show you our stores www.costcuttersupermarketsgroup.com
60
CORPORATE MEMBERS
PLATINUM
GOLD
SILVER
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
WWW.SCOTTISHSHOP.ORG.UK
CORPORATE MEMBERS
61
BRONZE
For more information on becoming a corporate member and on membership in general contact the Scottish Grocers Federation on 0131 343 3300
WWW.SCOTTISHSHOP.ORG.UK
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
62
SGF DIARY 2019
2019 DIARY JANUARY
Wednesday 30th
SGF Finance & Events Committee Meeting
Fife Creamery Training Centre, Kirkcaldy
SGF National Executive Meeting
Fife Creamery Training Centre, Kirkcaldy
SGF Cross Party Group Meeting
Scottish Parliament, Edinburgh Committee
Room 3 at 6 -7.30pm
Thursday 7th (TBC)
SGF Crime Seminar
RBS Business School Gogarburn
(TBC)
SGF Study Tour
Dunoon
APRIL
Wednesday 30th
SGF Mini Summit
McDonald Inchyra Hotel, Falkirk
MAY
Wednesday 22nd
SGF Finance & Events Committee Meeting
Federation House, Edinburgh
SGF National Executive Meeting
Federation House, Edinburgh
AGMs
Federation House, Edinburgh
SGF Cross Party Group Meeting
Scottish Parliament, Edinburgh Committee
FEBRUARY
MARCH
JUNE
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
Room 3 at 6 -7.30pm
(TBC)
SGF Networking Event
RBS Business School Gogarburn
Wednesday 28th
SGF Finance & Events Committee Meeting
Federation House, Edinburgh
SGF National Executive Meeting
Federation House, Edinburgh
SGF Cross Party Group Meeting
Scottish Parliament, Edinburgh Committee
Room 3 at 6 -7.30pm
Wednesday 11th
SGF Golf Outing
Cameron House, Loch Lomond
1st to 4th
NACS Congress
Georgia World Congress Center, Atlanta, USA
(TBC)
SGF Annual Conference
TBC
Wednesday 27th
SGF Finance & Events Committee Meeting
Federation House, Edinburgh
SGF National Executive Meeting
Federation House, Edinburgh
SGF Cross Party Group Meeting
Scottish Parliament, Edinburgh Committee
GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018
Room 3 at 6 -7.30pm
WWW.SCOTTISHSHOP.ORG.UK
Helping you to make an extra 3% Gross Profit Ease of use
Simple to use touch screen till software
Backoffice admin software
Cigarette Gantry integration
Indepth reporting and analysis
Touch screen handheld device to control the shop from the shopfloor
Supplier Data links with all major Wholesalers
Credit Card integration
Weekly health check reports to guide you to improve your sales and margin.
Access to background database with over 100,000 products
Benefits of MPos ✓ Built around a retailer, not a computer user ✓ Simple to use till, powerful admin tools ✓ Built from retailers perspective ✓ Reduces labour by downloading products, price changes, invoices and promotions
✓ Reduces labour by allowing one click order generation and one click invoice downloads - easily shave off 10 hours of work per store
✓ Increased control on stock; all stock deliveries downloaded and all stock adjustments emailed to the owner; NO stock is unaccounted for
✓ Emails store performance to the user with real actionable data once a week rather than stats heavy reports that overwhelm the user
✓ Based in Scotland with excellent support and training program
✓ Easy to use Hand Held terminal to control the store from shop floor ✓ Integration with Credit Card terminals, Zapper, Cigarette Gantry, Loyalty Schemes and more ✓ Developed and supported by people that know the retail trade
So How much Could our System make for you? We can demonstrate a 3% uplift in Gross Profit in using our system.
£5,000 £10,000 £15,000 £20,000 £25,000
£7,800 Current Weekly Turnover Extra profit per annum
£15,600 £23,400 £31,200 £39,000
Even a Single Lane system can more than pay for itself in the first 4 months!
MHouse, 349 Shields Road, Motherwell, ML1 2LD
Tel: 0800 242 5360 email sales@mhousesolutions.com
PARTNERSHIP OPPORTUNITIES
Over 800 Subway® stores now open in non-high street locations
l High rental returns l Flexibility in terms of space and design
including convenience stores,
l Full menu on sale every hour you trade*
forecourt sites, transport
l No need for grills or fryers
hubs, visitor attractions, universities and colleges
l Proven control systems l On-going training and support (*subject to local authority permissions, licenses and approvals)
To find out more visit
www.subwayfranchising.com or contact Alice Chalmers 07908 548559 Subway® is a Registered Trademark of Subway IP LLC. ©2018 Subway IP LLC.