SGF Handbook 2018/19

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Scottish Grocers’ Federation

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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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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

GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018

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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16

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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18

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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22

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

WWW.SCOTTISHSHOP.ORG.UK



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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GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018


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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GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018


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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GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018


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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

WWW.SCOTTISHSHOP.ORG.UK

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.”

GUIDE TO BETTER BUSINESS SGF HANDBOOK 2018


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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

WWW.SCOTTISHSHOP.ORG.UK


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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


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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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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


56

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.


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