SLR March 2017 by 55 North

FORECOURTS FLYING

Special report into a growing market

KATE BIRD

The Sun CMO on new loyalty scheme

3,400

COST, COST AND MORE COST!

With rates, minimum wage, pensions, tax and squeezed margins how are retailers to cope? SLR

AR R EW D S

2017

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FREE-FROM

The next big thing?

RTD REVIVAL

RTDs back on track

SWA AWARDS

All the winners

SLR Rewards 2017 â&#x20AC;&#x201C; The full shortlist is inside! p32 09/03/2017 14:38:14

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March 2017

Contents

Contents ISSUE 167

NEWS p4 p5 p6 p8 p12 p20 p22 p24

Booker-Tesco merger Booker senior management team hits the road to reassure retailers. Coke u-turn on DRS Soft drinks giant shocks industry with about-turn on recycling scheme. Retail crime It’s ‘time to crush the epidemic of retail crime’, says SGF at annual crime seminar. Tobacco smuggling hardline NFRN welcomes proposed quadrupling fines for repeat smuggling offenders. News Extra Wholesale Achievers United Wholesale (Scotland) named Champion of Champions. Product News Quorn unveils big marketing budget and Diet Coke unveils Holly Willoughby as ambassador. Off- News Absolut launches limited edition bottle while Carling refreshes its branding. Newstrade The Scottish Sun set to drive footfall with new cash incentive for regular readers.

INSIDE BUSINESS p26 MARKET RESEARCH Shoppercentric New survey finds quality is key, and the big weekly shop is dying fast. p30 Trending #Free-From The industry’s thoughts on one of the fastest growing categories. p31 2 Minutes Of Your Time Kate Bird Marketing boss for The Sun unveils the paper’s new cash loyalty scheme. p32 SLR Rewards 2017 Full shortlist All the runners and riders for this year’s SLR Rewards. p33 Forecourts fuelling growth Special extended report into the resurgence of the forecourt. p43 SLR Rewards Winners The final three of last year’s winners report back on their Rewards. p46 Woodlands Local All the latest news from Falkirk, including some product trials and a new media screen. p50 Hotlines A digest of some of the latest products to hit the shelves. p62 Under The Counter The Auld Yin takes his usual sardonic look at the retailing industry. FEATURES p52 Must Stocks SLR’s guide to some categories and products that are vital in every Scottish convenience store. p56 Confectionery How to stay ahead of the game in a fastchanging category and rapidly evolving shopper habits. p60 RTDs The once all-conquering RTD is making a comeback thanks to a surge in popularity for premium premix products.

ON THE COVER p16 Cost, cost and more cost It’s time to support retailers as they face cost increases across the board, as well as dwindling margins.

www.slrmag.co.uk

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MARCH 2017 | SLR

06/03/2017 16:38:16

News INDUSTRY CONSOLIDATION Booker tours UK to explain Tesco merger to retailers

MFG appoints Deary Motor Fuel Group (MFG) has named Paul Deary as its new head of food services. “This is a key appointment as we strive to build a first class ‘food to go’ offer for our customers,” said Richard Baker, the company’s Retail Director. Deary joins from rival forecourt operator Applegreen, where he was UK Head of Food Operations. MFG operates forecourts in Scotland under the Shell, BP and Jet brands.

Battery found in chocolate bunny Suspected food tampering caused the Co-op to recall all supplies of a Germanmanufactured chocolate bunny last month. A small battery was

Booker hits the road to reassure retailers on Tesco Booker Chief Executive Charles Wilson hit the road last month with his senior team to host a series of roadshows around the UK to reassure Premier, Londis, Musgrave and Family Shopper retailers that the proposed merger with Tesco is in the best interests of them, their families and their customers. Edinburgh Premier retailer Linda Williams was among those at the opening event at Hampden Park in Glasgow in Scotland and reports leaving the event in high spirits, convinced that the move will further enhance Booker’s reputation, and her ability to deliver for her customers.

“Charles Wilson made it very clear that this merger is simply the latest step in the same journey that we have been on since he took over at Booker 12 years ago,” Linda told

SLR at the event. “Under the terms of the new deal we will be able to offer our customers better choice, price and service than ever before. Our buying power is likely to be second to none, so I think that this can only be good news for Premier retailers and I’m excited about the future.” The event was split into a morning session for Premier retailers and an afternoon session aimed at Londis, Budgens and Family Shopper operators. The early session saw around 40 Premier retailers attend where they heard from Wilson and new Premier Brand Director Martyn Parkinson, as well as Booker’s Head of Retail Operations Steve Fox.

found inside one of the £1 lines and sparked a withdrawal from all 2,800 Co-op stores and an appeal to those who had already bought any of around 3,000 bunnies already sold.

Steve Murrells takes over at Co-op Steve Murrells, the Co-op’s food business head since joining in 2012, is to replace Richard Pennycook as Chief Executive at the company. Pennycook joined the company at the height of its crisis in 2013 and is credited with steadying the ship and helping rebuild its troubled bank. He said: “The CEO who is to lead the renewal phase in 2018 has to be the CEO who builds the plan in 2017.”

Aldi overtakes Co-op Discount retailer Aldi has overtaken the Co-op to become Britain’s fifth largest supermarket, according to data from Kantar Worldpanel. Sales at the German-owned company rose sharply in the quarter to the end of January, up 12.4% to £1.72bn, representing a share of 6.2% in the UK grocery market. The Co-op retains 6% of the market at £1.66bn. Tesco, Sainsbury’s, Asda and Morrisons, in that order, remain the largest retailers in the UK.

SLR | MARCH 2017

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TOBACCO Retailer competition offers cash prizes

Imperial Tobacco offer retailers £10k prize As an engagement incentive, Imperial Tobacco is offering independent retailers the opportunity to win prizes up to £10,000. By purchasing an outer of Gold Leaf or gV Bright Yellow (30g or 50g Pouches) through participating wholesalers, retailers will gain entry into a prize draw. The first draw takes place at depot-level, with the winning trader receiving £250 credit on all Imperial Tobacco products. All of the £250 winners will also be automatically entered into a grand prize draw, where one lucky retailer will win £10,000. The two runners-up will win £3,000 and £2,000 respectively. The incentive scheme runs between February 20 and April 21. Retailers are already preparing for the May 20 deadline for the final removal from sale of non-compliant tobacco stock. After that date, retailers will only be allowed to sell standardised packs which comply with the new EU and British legislation. For prize draw terms, visit www.imperial-trade. co.uk. SHOPPER SPENDING Survey says quarter could cut spending

Brexit ‘to impact’ spending More than 25% of Scottish consumers are concerned about the impact of Brexit on their spending plans over the next 12 months (against a UK average of 20%), while almost two-thirds worry about their lack of disposable income, according to a new Total Retail report by PwC. The survey of more than 1,000 UK shoppers reveals that price is still the most important factor for determining customer loyalty – 62% of Scottish respondents say they return to a retailer because prices are good (59% across the UK). Other important reasons are trust in the brand (46% in Scotland and 43% across UK), and items being in stock (37% in Scotland and UK). Almost six in 10 Scottish and UK consumers only shop with companies they trust to minimise online security risks.

CHARITY

Scotmid answers Childline’s fundraising call

Scotmid Co-operative’s rallying call to raise funds for one-year charity partner Childline has prompted a strong response from the company’s staff, members and customers with £136,000 already reached at the halfway stage. A list of activities scheduled over coming months including a sponsored skydive, a cycle ride, a triathlon and a ski challenge, are set to further boost the amount of money raised. The aim of the partnership is to raise £300,000, which will allow Childline to answer around 75,000 calls, emails and online messages from children and young people who need someone to listen to them. Elaine Chalmers, head of Childline for Scotland, said: “Scotmid have done amazingly well in their fundraising efforts. This money will go towards helping and supporting more children and answering more contacts.” John Brodie, Chief Executive of Scotmid Co-operative, said: “Congratulations to everyone, who has been involved in this first key stage of our fundraising drive for Childline.”

www.slrmag.co.uk

06/03/2017 16:38:17

News RETAIL CRIME Latest report shows huge increase on violence against retailers

Coca-Cola shocks industry with dramatic u-turn on DRS Coca-Cola has shocked the local retailing industry in Scotland with the news that it has thrown its support behind the deposit return scheme (DRS) for drinks bottles in Scotland. The u-turn has been brought about by a desire to reduce littering and boost recycling, says the company, and represents a major policy shift. The deposit return scheme (DRS) is designed to encourage consumers to return their drinks bottles by adding a small refundable charge at sale. Coca-Cola has reportedly said that it has “embarked on a major review” of its sustainable packaging strategy to understand what role it can play in unlocking “the full potential of a circular economy in Great Britain”. Despite sustained high profile opposition to the DRS, Coca-Cola now believes that “the time is right to trial new interventions such as a well-designed deposit return scheme for drinks containers, starting in Scotland where conversations are underway”. The Scottish Grocers’ Federation has responded by saying that while it understands Coca-Cola’s reasons, it remains convinced that DRS will badly affect local retailers. SGF Chief Executive Pete Cheema commented: “It is reasonable for Coca-Cola to suggest that DRS should be considered as a potential solution to the problems

with litter and recycling. However, we firmly believe that DRS would have a significantly negative impact on convenience store retailers. The Scottish government should continue with its process of evidence gathering, feasibility studies and stakeholder engagement before it makes any decision on DRS – this process must take into account the concerns of the retail industry in Scotland. In 2015 kerbside recycling helped to increase Scotland’s recycling rate to over 44% of all waste collected.”

research and training charity, has appointed Sian Brenchley as its new Director of Corporate Communications and Allan Edwards as its new Director of Stakeholder Relations.

Topps Champions League cards unveiled Topps has launched the official UEFA Champions League edition of its Match Attax range. Collectors of the new-look packs stars, including Lionel Messi, Cristiano Ronaldo, Robert Lewandowski and Sergio Agüero, all featuring the latest statistics on attributes such as tackling, speed, passing and shooting. UEFA Champions League Match Attax starter packs retail at £4.99, featuring a collector’s binder, game mat, guide and a packet of cards, including a gold limited edition player.

blu owner Fontem announces new CEO

P&G to cull slower moving SKUs performance and demonstrate the best value for the shopper. “This work has already started and will be an ongoing journey as we partner with retailers for simpler, faster, more focused growth.” Drake added that research had proved time and again that “less is more” in local retailing with shoppers

IGD, the food and grocery

can add new cards with top

RANGING P&G to practice what it preaches by dropping slowest selling lines

P&G is to cut 30% of its product range in a long-awaited cull of slowmoving SKUs. John Drake, the company’s Director of Convenience, said the company’s strategy was to drive innovation. He said: “We are simplifying our line-up to enable retailers to focus on the power SKUs that drive category

IGD bolsters comms team

finding it easier to seek out what they want when there are fewer products to choose from. The cut in SKU count will allow P&G to concentrate its support on a tighter product range and generate value for both shoppers and independent retailers, added the company.

Fontem Ventures, owner of the vaping range blu, has appointed Titus Wouda Kuipers as its new CEO. Kuipers previously worked as Operations Director at Fontem Ventures’ parent company Imperial Brands and brings over 25 years’ experience.

Key appointments at GroceryAid GroceryAid has appointed Ruston Smith as the new Chair of the Board of Trustees. Smith,

ILLICIT TOBACCO

Group Pensions and Insurable

Gantry removed for selling illegal tobacco

Risk Director at Tesco, takes over

Imperial Tobacco has removed its gantry from a London retailer’s store after a staff member was convicted of selling illegal tobacco. The Mala Mini Mart in Wembley was stripped of the tobacco display unit on January 16 after the owner, Girirathan Cyrilratnaraja, was found to be in fundamental breach of the conditions of his agreement with Imperial. Imperial also withdrew all sales support and revoked Cyrilratnaraja’s membership of its retailer reward scheme. Peter Nelson, Imperial Tobacco Anti-Illicit Trade Manager, said: “Imperial has a ‘no tolerance’ policy when retailers have been convicted of selling illegal tobacco. It is important to remember that it is not a victimless crime, threatening legitimate local businesses, as well as funding organised criminal activity.” Retailers who know of anyone supplying illegal cigarettes should contact Crimestoppers anonymously on 0800 555 111 or the Customs Hotline on 0800 59 5000.

Executive Chairman at Palmer &

from Chris Etherington, Deputy Harvey. The charity made a further two key appointments to its leadership team. Jane Hill has been appointed to the new position of Fundraising Director and Mandi Leonard will take over from current Welfare Development Director, Cathy Mercer, upon her retirement.

KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

www.slrmag.co.uk

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MARCH 2017 | SLR

06/03/2017 16:38:17

News RETAIL CRIME Industry body calls on stakeholders to tackle what has become an ‘epidemic’

Aldi to replace BHS at Cameron Toll The former BHS store at Cameron Toll Shopping Centre in Edinburgh is being taken over by Aldi. The 20,000sq ft store closed its doors last summer after the company collapsed but work is due to start shortly by Aldi to have the site operational later this year.

Two men admit machete attack on retailer Two men have admitted a machete attack on a shopkeeper during an attempted robbery at A&A newsagents in South Trinity Road in Edinburgh in August. Liam McMeechan and David Allan assaulted Tahir Ahmed and tried to steal cash but Tahir fought them off. Sentencing will take place next month.

RS McColl’s PO worker embezzles £134k

SGF: time to ‘crush the epidemic of crime’ Scotland is in the grip of a wave of shoplifting which often involves violence and verbal abuse towards staff, according to one of the key findings of the latest annual retail crime survey carried out by the Scottish Grocers’ Federation (SGF). The survey is compiled from data provided by Scottish independent convenience stores. The report showed that while in 2015 the overwhelming majority (92%) of respondents said they regularly experienced shoplifting, that figure rose to 100% in 2016. The findings back up figures from Police Scotland showing that in 2016 there were 28,000 shoplifting incidents in Scotland. Around 25% of convenience stores regularly experience physical

and verbal abuse, with the main trigger for violence being a request for ID or a refusal of sale. The conference also heard from Daniel Johnson MSP about his work with the SGF to look at potential legislation in the Scottish Parliament to give shop workers the same legal protection as emergency workers. SGF Chief Executive Pete Cheema said: “Shoplifting is a growing problem and physical and verbal abuse are day to day realities for many stores. Increasingly retailers are being asked to implement legislation within their stores, particularly around age verification. It’s when they try to do this that they suffer from physical and verbal abuse. Shop staff need extra protection and we are working to bring forward legislation to the

Scottish Parliament to make shops safer for staff and customers.” Daniel Johnson, Labour MSP for Edinburgh South and a former retailer himself, commented: “I am committed to working with the SGF, USDAW and others to bring forward a bill in the Scottish Parliament to improve the protection for shopworkers. We are asking shop workers to uphold the law on a regular basis – especially on alcohol on tobacco. According to the research, that’s when tempers can flare and serious problems occur. We need to recognise that and look at offering more protection in law.” ACC Mark Williams of Police Scotland said: “Violence and abuse directed at shop workers is completely unacceptable.”

A man has admitted embezzling more than £134,000 from an Edinburgh Post Office to feed a gambling habit. Daryl Louden, 26, from Edinburgh, pleaded guilty to embezzling £134,177 from the Post Office at RS McColl’s shop in Ferry Road between January 1and September 29 2016. Sentence was deferred at Edinburgh Sheriff Court and Louden was bailed.

Crossgates former Post Ofﬁce sold

IN-STORE TECHNOLOGY

BigDL big success Mobile phone-based discount and deal marketing tool Big DL has seen app downloads increased by 76% in the final quarter of 2016 with retailer deal views increasing by 49% to 462,476. The number of enabled convenience stores increased to almost 1,500 locations. Matt Norbury, CEO of bigDL, said its summer marketing had led to a dramatic rise in app downloads and engagement. “Having joined forces with the Today’s Group and News UK in 2016, national rollout of our beacon and mobile coupon technology across the convenience sector continues. We are looking forward to continued rapid growth in 2017.”

Crossgates Stores in Fife, which previously traded as a Post Office, has been sold and has re-opened as a convenience store. After 17 years at the store, the vendor John Gordon decided to place to the property on the market to allow him to retire. The property sits on the main road through the village of Crossgates in Fife and benefits from high footfall as well as being perfectly positioned within the village. Within just a couple of months John sold the business to Alex Jarrett who he had known prior to the sale.

SLR | MARCH 2017

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TOBACCO Leading manufacurer launches retailer-facing website

Philip Morris unveils educational website Philip Morris Limited (PML), the UK arm of the international tobacco company, has developed an online

educational and interactive website for tobacco retailers. The MyDrive Online website features videos and other content to help steer retailers through the next round of plain packaging legislation. A MyDrive Online app is also available. In preparation for the transition to plain packaging, Philip Morris sent Federation of Independent Retailers President Ralph Patel and award-winning retailer Dee Sedani to Australia to learn how retailers there have managed the transition since it came into force in 2012. Ralph Patel said that meeting like-minded retailers can help educate the UK trade on best practice to cope with plain packaging. Videos of their visit feature on the website www.pmimydrive.co.uk. www.slrmag.co.uk

06/03/2017 16:38:18

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06/03/2017 16:38:19 24/01/2017 14:14

News SMUGGLING Proposals for far stiffer fines welcomed by the industry

Q The Food Retailer has entered administration. The company, which bought 36 convenience stores from the Co-op a year ago and rebranded them as Budgens, has collapsed under mounting difficulties. Two of the stores are in Scotland – in Paisley and Prestwick. As Scottish Local Retailer went to press, all the affected stores were still trading. The Co-op issued a statement, saying if no buyer could be found for the stores, it would make “every effort” to find alternative employment for those employees affected. Q Bestway has reported

NFRN welcomes tougher ﬁnes for tobacco smugglers New plans for tougher penalties for tobacco smugglers, which include quadrupling the fines imposed on persistent offenders, are a step in the right direction, said the NFRN. Chief Executive Paul Baxter said: “The NFRN has repeatedly called on HMRC, the government, police and trading standards to take tougher action against persistent offenders as their actions threaten the livelihoods of responsible tobacco retailers. We are pleased to hear that HMRC wants to clamp down more severely on persistent and shameless smugglers, distributors and sellers of illicit tobacco as we feel strongly that there are too few prosecutions and when cases do come to court that the punishments do not fit the severity of the crime. “As the illicit tobacco market continues to grow, irreparable damage is done to the businesses of independent retailers and the communities that they

serve. The NFRN looks forward to contributing to the HMRC consultation and supporting its calls for tougher new civil penalties and a fourfold increase in fines.” The NFRN and Imperial Tobacco recently sent out 50,000 anti-illicit trade packs branded ‘Suspect it? Report it!’ as part of a campaign to raise awareness among retailers and their smoker customers of the multitude of threats illicit tobacco has on retailers and the government.

turnover up 9% to £3.28bn. Profits in the year to June 2016 rose 6% to £413.3m before tax. In a statement, the company said all its business units had performed profitably, however Bestway Wholesale profits dropped from nearly £45m to under £20m. In addition to its convenience stores and wholesale operation, the Group has UK interests in pharmacy, and overseas businesses in banking and cement manufacture. Zameer Choudrey, the Group’s Chief Executive, said 2016 had been a year of consolidation. “Despite difficult business conditions in the UK, we have maintained our market share across the Wholesale and Pharmacy businesses.” Q Drinks manufacturer Pernod Ricard has celebrated strong first half results for 2016/17. Overall sales were up 4% to just over £5bn. The company citied growth in overseas markets, notably China, Russia and the USA, and for its Absolut, Martell and Chivas brands. Alexandre Ricard, Chairman and Chief Executive Officer, said: “Our half-year results are strong, delivering a continued performance improvement. Our strategy remains consistent and is driving results.”

SLR | MARCH 2017

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MOBILE PAYMENTS Vouchering and loyalty platform goes live in more symbol groups

Zapper extends trials across symbol groups All-in-one mobile payment, vouchering and loyalty platform Zapper has followed up a successful trial in Nisa stores around Peterborough in December 2016 with the launch of a new set of preoof of concept trials with a raft of additional symbol groups around the UK. The solution will soon be trialled in Booker (Premier, Londis, Family Shopper), P&H, Spar, Bestway / Bestone and through NFRN. To expand its offering to work more closely with major FMCG brands, Zapper has also launched a vouchering campaign with Coca Cola to send brand specific digital vouchers via the Zapper app to consumers directing them into Nisa stores. This will enable brands such as Coca-Cola to understand consumer purchase trends and basket data, which will, in turn enable them to send brand targeted offers, promotions and vouchers to consumers based on previous spend. Gerry Hooper, CEO Zapper UK said: “Whilst Zapper is already one of the UK’s largest all-in-one solutions to provide mobile payments, insights and rewards to the hospitality industry, it’s now leading the way for the convenience retail sector. “We have developed a smart and versatile platform to enable the smallest independent store to the largest convenience retailer to offer consumers the ability to pay using their mobile phone and take advantage of the many money saving features of the Zapper app.”

CRIME Huge hike in violent crims

‘40% increase’ in volence against shopworkers Retail employees’ union USDAW has called for action to prevent violence, threats and abuse against shopworkers after new data collected by the British Retail Consortium showed there was a 40% increase in offences involving abuse or violence against shopworkers. This represented a rise from 41 to 51 per 1,000 shopworkers during 2016. The results also suggest a third of them did not report to their employer a violent attack by a customer. John Hannett, the union’s General Secretary said: “All too often shopworkers encounter violence, threats and abuse for simply doing their job. “Retail crime remains too high and there needs to be action to protect shopworkers. It is time for the Government to act by providing stiffer penalties for those who assault shopworkers. Retail staff have a crucial role in our communities and that role must be valued and respected.” The Scottish Grocers’ Federation hosted a seminar last month in Tulliallan to tackle the problem of retail crime. www.slrmag.co.uk

06/03/2017 16:38:20

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06/03/2017 16:38:28 17/02/2017 10:56

News Extra

Wholesaling | Scottish Wholesale Achievers 2017

NewsExtra SPECIAL FORECOURT EXTENDED REPORT P33 INDUSTRY AWARDS Glasgow wholesaler takes top gong at wholesale awards

Convenience Matters with the SGF The classic HBO TV series The Wire focused on the interminable – and seemingly unwinnable – war of attrition between the police and the drug gangs in the US city of Baltimore. The ‘war’ dragged on, using up time and resources, with the strategies employed by one side simply being nullified by the other. Something similar is going on with the debate on a deposit return system (DRS). The Scottish Government’s evidence gathering and feasibility studies have gone for over 18 months now and the environmental lobbying groups have continued their own campaigns – some of which are allegedly supported by the manufacturers of the reverse vending machines central to many deposit return systems. Recently the Scottish Daily Mail launched its own campaign in support of a DRS, with Jeremy Paxman employed to endorse it. Paxman outrageously compared those responsible for the tragedy of high school shootings in America to the responsibility of the ‘soft drinks’ industry for litter and other environmental damage. So far SGF has had success in highlighting the serious problems DRS would pose for convenience store retailers. It’s fair to say that, of all the arguments used against DRS, the impact on retailers has been the most effective in holding off any real progress towards implementing a deposit return system. Making the retailers’ case in the DRS debate is a big drain on our time and resources but it’s a battle in which we must be present. If we can’t hold it off for ever then, at the very least, we need a system that works for everyone. Ideally one which might actually contribute to the profits of convenience stores.

SLR | MARCH 2017

SLR March 2017.indd 12

United Wholesale (Scotland) named Scotland’s top wholesale business

Achievers, the 15th annual event organised by the Scottish Wholesale Association, saw businesses and individuals from across all sectors of the wholesale industry in Scotland recognised for professionalism and excellence. United Wholesale (Scotland), the Glasgow and Grangemouth based delivered wholesaler and cash & carry, scooped the Champion of Champions accolade in this year’s Scottish Wholesale Achievers awards. The event, organised by the Scottish Wholesale Association (SWA), who hosted at the Sheraton Grand in Edinburgh by BBC Scotland TV presenter Catriona Shearer. It was a successful night for United Wholesale (Scotland), who also triumphed in the Employee of the Year category with the wholesaler’s fresh food specialist Jason McLeod picking up the trophy. The company also took Best Licensed Operation, Best Marketing Initiative (for its campaign to advertise and promote its revamped Grangemouth M9 Cash & Carry) and Best Symbol Group for Day-Today. Other category winners included JW Filshill for Best Delivered Operation (Retail) and United Wholesale Grocers who won Best Cash & Carry. The individual award for Supplier Sales Executive of the Year award went to Fiona Nisbet, National Accounts Executive at Mars Chocolate, who impressed the independent judging panel with her ability ‘to get the best outcome for her wholesale customers and employer’. The Project Scotland award, which highlights suppliers’ understanding and commitment to the sector, was won by AG Barr for its relaunch of Irn-Bru with a new design to differentiate the sugar-free version from the original. Best Advertising Campaign saw The Famous Grouse ‘Full of Character’ coming out on top, seeing off imaginative competition from Aunt Bessie’s ‘I’m a Celebrity’; Haribo ‘Kids’ Voices – Platform’; and Tennent’s ‘T5s’ – whose ‘goalkeeper fails’ advert had the 500-strong audience at the event rolling in the aisles. Kate Salmon, SWA Executive Director, said: “Fairness is paramount to Achievers and although our awards have evolved over the years, what has remained consistent is our integrity – our uncompromising standards and high values across all aspects of the competition and we will continue to build on this in partnership with entrants, supplier sponsors and independent judges.” The SWA will welcome all the Achievers awards winners to its annual conference to be held at Crieff Hydro on June 9th-11th.

United Wholesale (Scotland), Champion of Champions

United Wholesale Grocers named Best Cash & Carry.

AG Barr won the Project Scotland gong.

JW Filshill collects the Best Delivered Operation award.

www.slrmag.co.uk

06/03/2017 16:38:31

Comment

WHEN COSTS KEEP RISING, SOMETHING HAS TO GIVE It’s a simple fact that the cost of doing business just keeps on rising in local retailing, and that cost is rising far quicker than most retailers are able to easily cope with. With margins being constantly eroded and competition reaching an unprecedented level, how exactly are retailers supposed to maintain successful, profitable businesses? This month’s cover story goes into great detail about the increasing cost of business but few retailers will need reminding of the increasing burdens of the minimum wage, rates, utility bills, stakeholder pensions, waste disposal and a plethora of other costs which only ever seem to move in one direction. And that’s before the impacts of reduced margins on many services and products and the constant downward pressure on margins caused by an industrywide long-term commitment to the likes of deep cut promotions and £1 price marks. I’ve lost count of how many times the buy-price of products we buy for Woodlands Local has risen yet the price to the customer remains the same. So who loses out? Only the retailer. And the harsh reality is that probably 80% or more of our annual sales in Woodlands Local are of products that don’t even deliver a margin of 10%, and often far lower than that. This model is not sustainable. It can be very frustrating to listen to everyone from the Government to the man in the street repeatedly saying how much they value the local retailing industry, how important it is to the fabric of every community in this country and how vital is to the wider Scottish economy. Yet very rarely does that translate into action that positively impacts upon retailers. If all of these stakeholders genuinely mean what they say then the time to put their money where their mouth is is now. It’s extremely telling that incoming SGF President Dennis Williams outlined in SLR in his very first interview as President how his biggest concern of all was addressing the increasing cost of business for local retailers. The Cross-Party Group on Independent Retailing is one of the most important media we have for influencing the Scottish Government and ensuring the decisionmakers understand the plight of retailers. I would urge you to get involved and help make our voice heard. If the Government wants a sustainable, long term independent retailing trade serving every corner of our nation then it’s time they accepted the commercial realities and created a playing field that gives our industry the chance not just to survive but to flourish.

ANTONY BEGLEY, PUBLISHING DIRECTOR

SLR | MARCH 2017

SLR March 2017.indd 14

EDITORIAL Publishing Director & Editor Antony Begley 0141 222 5380 | abegley@55north.com Editoral Assistant Iain Hoey 0141 222 5385 | ihoey@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com

ADVERTISING Advertising Manager Susan Dignon 0141 222 5384 | sdignon@55north.com

DESIGN Design & Digital Manager Richard Chaudhry 0141 222 5300 | rchaudhry@55north.com Designer Lisa Deakin 0141 222 5388 | ldeakin@55north.com

EVENTS Events & Operations Manager Cara Begley 0141 222 5381 | cbegley@55north.com Events & Operations Assistant Chloe Buchanan 0141 222 5383 | cbuchanan@55north.com

CIRCULATION & SUBSCRIPTIONS Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers may obtain copies by annual subscription at £50 (UK), £62 (Europe airmail), £99 (Worldwide airmail). 55 North Ltd, Waterloo Chambers, 19 Waterloo Street, Glasgow, G2 6AY Tel: 0141 22 22 100 Fax: 0141 22 22 177 Website: www.55north.com Twitter: www.twitter.com/slrmag DISCLAIMER The publisher cannot accept responsibility for any unsolicited material lost or damaged in the post. All text and layout is the copyright of 55 North Ltd. Nothing in this magazine may be reproduced in whole or part without the written permission of the publisher. All copyrights are recognised and used specifically for the purpose of criticism and review. Although the magazine has endevoured to ensure all information is correct at time of print, prices and availability may change. This magazine is fully independent and not affiliated in any way with the companies mentioned herein. Scottish Local Retailer is produced monthly by 55 North Ltd.

www.slrmag.co.uk

06/03/2017 16:38:34

HI! STREET

digital media

A HI! STREET SCREEN HERE.

MEANS BIG SALES HERE.

Hi! Street Digital Media provide convenience retailers and FMCG brands with a unique opportunity to target shoppers at the vital moment of purchase decision-making. Our high bright digital media screens, placed in premium convenience stores throughout the UK are proven to increase sales of promoted products by an average of

15.3%, whilst also increasing both footfall and basket size. Our screens are supplied completely

FREE of charge to retailers who meet our criteria. To find out how you can be part of our fast-growing network of retailers, please visit: www.histreetdigital.com SLR March 2017.indd 15

06/03/2017 16:38:34

SLR Cover Story

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With a perfect storm of constantly rising costs and constantly falling margins, more and more retailers are finding it increasingly difficult to maintain sustainable businesses – so what lies ahead for an industry that forms the very fabric of practically every community in Scotland? BY SIMON WALTON

ith the current furore around business rates revaluations filling plenty of column inches and air time, the wider issue of the rising cost of business has once more risen to the top of the retail agenda in Scotland. The harsh reality for most local retailers in Scotland is that the huge increase in rates that many face is only the latest in a seemingly endless roll call of major cost increases: rates, national minimum wage, stakeholder pensions, waste, recycling removal. The list goes on. And all of this is in addition to constant downward pressure on pricing across a whole raft of product and service categories, which is inevitably squeezing already tight margins for retailers. The big question, then, is what exactly is it that’s going to change to provide a glimmer of hope for an industry widely hailed as sitting at the very heart of the vast majority of Scottish communities? Westminster and Holyrood politicians are quick to recognise the value of retail to the wider economy, and to the 16

SLR | MARCH 2017

SLR March 2017.indd 16

social fabric of our communities – but are far less enthusiastic when it comes to actually providing a level playing field that gives local retailers a chance to build and maintain businesses that are viable in the longterm.

PEOPLE AND PROPERTY People and property are always going to be the most expensive overheads for convenience retailing businesses. New figures from independent researchers Retail Economics suggest that convenience retail is currently seeing rises in both these factors approaching 5%. With typical average margins in a small store running at below 20%, that’s a big increase in costs to absorb. In an economy where overall consumer price indices remain largely stagnant, businesses are significantly impacted by these rising costs. Speaking in support of the Cost of Doing Business Report from the Money Advice Trust, Chief Executive Joanna Elson was concerned that what the Trust considers to be the heroes of our economy – small businesses – are under fire, something that represents a

real threat to the wider economy. “Whether it’s the local corner shop we pop into on the way home from work or an independent butchers, we all benefit from their success,” said Elson. “That success has a ripple effect across the UK as small businesses help to make other businesses tick by acting as contractors or putting money into the supply chain. They bring choice and opportunity to us all and it is essential that we nurture these businesses to ensure they continue to revive our economy. It is therefore vital that the Government, creditors, regulators and the free advice sector work together to contribute to our growth.”

MINIMUM WAGE In principle, most retailers accept the social value of a minimum wage. What many find harder to deal with is the commercial reality of a continually increasing minimum wage. Simply increasing the minimum wage without understanding the commercial and social context is a very blunt tool to solve a very complex problem. This April’s 50p rise www.slrmag.co.uk

06/03/2017 16:38:38

The Rising Cost Of Business

Cover Story

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in the minimum hourly rate (to £7.20 for over 25s), for instance, is only likely to result in a should also be applauded for enhancing the potential further cut back in staff hours, and Small Business Bonus Scheme which means yet more personal hours devoted to working that nearly 100,000 firms across Scotland in the business, rather than developing it. will benefit from either reduced or zero Is that what the Government was hoping to business rates. At present all properties with achieve? a Rateable Value (RV) of more than £35,000 When he spoke to SLR in January, Scottish pay the ‘large’ multiplier which subsidises Grocers’ Federation President Dennis those businesses with a combined RV up to Williams said: “I’m all for giving someone a reasonable wage. I have no issue with that at all. The problem is, once again, the constraints Y��r f��e��s� placed on a small business with the overhead thatY��r represents. I know that staff hours f��e��s� are getting cut back, people are not getting replaced, and people who own businesses are M��t� needing tof��e��s� work longer hours.” Dennis also highlighted the vital role that M��t� �r f��e��s� local retailing plays in offering versatile e��s� employment opportunities for young starters, OR OCK’S M part timers, and later-life workers, as well as providing full time careers, all within local M��t� M��t� M��t� M��t� ��e��s� f��e��s� f��e��s� M��t� communities. Williams says that by making f��e��s� f��e��s� 14 M��t� f��e��s� it harder for employers to take on new people, and including £18,000, and M��t� 78£10,000 M��t� f��e��s� wage legislation is making business + RV current where below no 14 f��e��s� development in this sector difficult. “Owners rates are paid, tapering to 25% 32 + 78 Y��r even longer in their businesses, are working relief at RV £18,000. From 1 April f��e��s� leaving less time to work on development and 2017 this lower threshold will be increased to 32 Y��r M��t� creating employment opportunities. That’s RV £15,000 and all RVs below £51,000 will f��e��s� 14 14 14 W��k �e��s� f��e��s� going to take out a lot of the dynamism of the 14benefit from the reduced rate poundage.” D�� 8 7+ 878 7 + 7+14 sector That’s of little comfort to small businesses W��k and not be good for the local economy 8 f��e��s� 7832+ F�� at all.” who face huge hikes in their rates, however. A�� 32 D�� 14 32+ 14 Y��r Y��r ��r 32 ��e��s� f��e��s� f��e��s� Y��r 78 +3278 SLR’s F��Woodlands Local store faces a very + f��e��s� A�� Y��r RATES RUCKUS significant increase of £7,000 on its rateable f��e��s� O�� 32 M�� year, and our business is not The latest elephant in the room however value this 2 3 Y��r ��k f��e��s� D�� D�� D�� is the rates revaluation. TheO��link between unusual. �e��s� D�� M�� rates and deemed property Director of the Scottish Retail Consortium D�� F�� F��value, F�� as opposed J�� J�� F�� retailers A�� A�� A�� to business turnover, means that David Lonsdale said: “The Finance Secretary D�� A�� F��N�� D�� can find themselves paying more, even in J�� has at least acknowledged our concerns about A�� J�� F�� a declining business. With revaluations business rates by keeping the poundage rate N�� F�� A�� O�� O�� O�� M�� M�� M�� S�� O�� A�� still underway, it’s still possible that overall M�� in line with the UK, and with his plans to alter O�� business rates bills will run ahead ofM�� inﬂation, the threshold of the Large Business Rates S�� O�� currently 1.6% on J��the Consumer Supplement. However, 5,077 retail premises J�� J�� M�� Prices O�� J�� J�� J�� M�� Index, measured by the Office for National will continue to pay higher business rates than J�� N�� N��asN�� J�� J�� N�� Burke, who is Director of Statistics. David they would in comparable premises down N�� J�� Rating at JLL, the financial and professional south and many of those retailers are also set J�� J�� S�� S�� S�� N�� firm, said the detailed picture on to begin forking out for the Apprenticeship N��servicesS�� S�� business rates offered some good news, but Levy from April. These public policy costs S�� only in that Scottish retailers are paying no are a significant burden to retailers and are S�� more than elsewhere in the UK. difficult to absorb.” “The decision to match the ‘small’ multiplier in England at 46.6 pence in the pound TAXING ISSUES ensures parity with small ratepayers south of The cost of establishing and administrating the border and puts Scotland on a level playing the workplace pension scheme is another SC

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form of indirect taxation, while just over the horizon there’s another a huge change to taxation coming in the shape of the Inland Revenue’s ‘Making Tax Digital’ initiative. This will require a complete overhaul of the way businesses report liabilities and pay their dues, again incurring more financial and time costs. Although the exact details of the overhaul have yet to be finalised, Scottish accountants and business advisors Springfords advise retailers to begin preparing now in order to minimise costly disruption down the line. Corporate Tax Partner Jimmy Hair said: “With limited exceptions, small unincorporated businesses will, from April 2018, be compelled to keep digital records using HMRC-compatible software and apps and submit quarterly digital updates. VAT and corporation tax will be included from April 2019 and 2020 respectively.” In their Cost of Doing Business report, the Money Advice Trust welcomed the impending abolition of the annual tax return, but had concerns over the extra workload that the Making Tax Digital initiative will put on retailers and business owners in general. “This will be a significant upheaval. It is vital that the Government manage this transition to real-time accounting, and that any penalties for missed deadlines are proportionate.” The personal tax burden is also set to rise to its highest level since 1986, according to think tank the Institute for Fiscal Studies. Less money in the pockets of consumers means less money at the tillpoint.

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OR OR OR OCK’S OCMK’S OCMK’S M K’SOR OC M OR OCK’S M K’SOR M K’SOR M OC Government field,” he said. “The OCScottish

MARGIN REDUCTIONS Lower and lower margins on many staple local retailing products and services as well as increased transaction charges and dwindling commissions are a constant reminder of the costs of doing business. Continually burdening small business with higher costs while margins and profits are falling is simply unsustainable. The Scottish and UK Governments have routinely and enthusiastically lauded the local retailing sector for providing a unique service to our nation’s communities. The real issue here is whether they are prepared to put their money where their mouths are and create the conditions for this industry to ﬂourish in the long term. MARCH 2017 | SLR

06/03/2017 16:38:55

Your Guides Through Change Profiling the JTI sales force With just months to go until May 2017, JTI continues to support retailers with its ‘Your Guide Through Change’ initiative. JTI’s clear and practical steps aim to ensure retailers are prepared for the TPD2 and plain packaging legislative changes, providing online training modules, educational videos and information packs. JTI also recognises the importance of working face to face with retailers and listening to their feedback, so our salesforce is on hand to support the trade with personal visits and tailored advice to address any questions in the lead up to 20th May 2017.

From 20th May 2017 tobacco and e-cigarette products must comply with new legislation. What are the changes?

Minimum 20 cigarettes Minimum 30g rolling tobacco No branded packaging for cigarettes and rolling tobacco

Increased health warnings

What should I be doing now? • Maintaining availability at all times is of vital importance to ensure that retailers become a destination store of choice for existing adult smokers • Price is one of the key factors for existing adult smokers when choosing where to shop for tobacco2 so retailers should look to remain competitive by selling at RRP or below, as PMPs are phased out3

£2,000 LOST SALES Tobacco shoppers can be worth £2,000 a year1

54%

of shoppers regularly check the price of tobacco2

1. JTI Estimates. 2. JTI/IPSOS Shopper Missions Research 2016. 3. Retailers are of course free to sell JTI products at whatever price they choose.

SLR March 2017.indd Profiling the JTI sales18 force Advertorial A3 DPS AW Mk2.indd 1

06/03/2017 16:38:59

Retailer insight Here, tobacco retailer, Jazz Goraya, talks about how Your Guide Through Change and how his JTI sales rep, James Honey, has supported him through this transition period:

Jazz Goraya, Tobacco Retailer Nisa Local “When the TPD2 legislation was announced, it left many questions for retailers and also for customers. I’ve worked closely with my JTI rep James Honey, who has supported me throughout the changes and ensured that I am prepared for when they come into effect. “Having James around to answer any questions or concerns that I might have or that my customers might ask me has been invaluable and I’m now confident that my store and my staff are ready for TPD2. I’d encourage other retailers to take advantage of the valuable, free advice from their local JTI rep.”

James Honey, JTI sales representative, talks about how he has supported retailers, including Jazz Goraya ahead of TPD2: “JTI has been supporting retailers throughout the build up to TPD2 in a number of ways, including online resources, POS materials but perhaps most importantly by ensuring we, the reps, are fully equipped to support retailers when we visit them in store. “When Joseph told me that his customers were asking him the same questions about pack sizes, I was able to provide him with a poster explaining the changes, and suggest that he point them towards the packchanges.co.uk website for more information.”

Where do I find more information? JTI has created training modules and a number of informative videos containing everything retailers need to know about TPD2. To access these free resources, visit the legislation hub of JTI Advance (https://www.jtiadvance.co.uk/article/tobacco-products-directive) or ask your sales representative.

If you haven’t signed up yet, speak to your sales rep or contact JTI’s Customer Care Line on 0800 163 503. JTI’s UK trading company is Gallaher Limited.

SLR March 2017.indd 19

06/03/2017 16:38:59 20/02/2017 14:48

News

Products

Chocolate bars to shrink Chocolate manufacturers are planning to reduce the size of

ProductNews

some of their best known brands by 20% in a bid to comply with

ALL THE LATEST NPD – P50

new guidelines on cutting sugar. Companies such as Mars, Nestlé and Cadbury plan to shrink the size of household name chocolate bars such as KitKats, Mars bars and Dairy Milk in order to reduce their sugar content. The manufacturers have agreed to reduce the size of their bars to avoid being named and shamed in a report on childhood obesity which is due to be published next month.

Famous spread renamed After over 30 years on the market, I Can’t Believe It’s Not

FREE FROM Quorn unveils a major media blitz

Quorn to crack c-stores Hoping to increase its availability into the convenience sector, Quorn has launched a £10m marketing campaign following IRI research that 73% of meat-free product shoppers are not vegetarian. The recognisable orange packaging has been updated, now with PMP options, and is supported by POS material and a sustained 49-week national advertising campaign covering TV and social media. “We’re developing a core range specifically for the convenience channel”, said Julian Cooke, Head of UK Category Management.

“We’re offering five chilled products to satisfy the growing food to go and food for tonight missions, complemented by five frozen products targeting the food for later occasion.” TV ads will showcase the range’s variety, as well as the versatility of Quorn products. A new website providing consumers with recipe ideas has also been launched in support. The relaunch comes as Kantar research confirms that the basket spend of meat-free and meat-reducing shoppers is four times the national average.

Butter has undergone a rebrand and is now called I Can’t Believe it’s so Good for Everything. The new-look spread has already hit UK shelves, but Unilever has splashed out £1m on a TV advertising campaign to convince viewers of the new name, with the ad hitting screens this month.

Unilever bid dropped Kraft Heinz has abandoned its plan to buy rival food giant Unilever following initial rejection. A Unilever spokesperson said that the company saw “no merit, either financial or strategic” in Kraft’s offer, which was estimated to be worth around £115bn.

SOFT DRINKS TV star signs up with Coke

Holly goes on a Diet Diet Coke has announced Holly Willoughby as its new brand ambassador for 2017. She will work with Diet Coke to promote campaigns celebrating friendship, travel, fashion and fun. Willoughby said: “I’ve always been a big Diet Coke fan, right from the original ‘Break’ ads we all remember with great fondness. The brand is well known for celebrating friendship, fashion and fun, which are all very important to me. I’m excited to be involved!”

Michael Mullen, a spokesman for the Kraft, commented via email that: “Kraft Heinz’s interest was made public at an extremely early stage.”

CONFECTONERY NFL player touches down with Skittles

Superbowl comes to Scotland

Weetabix price warning issued Cereal company, Weetabix, has become the latest brand to warn of price rises sparked by the lower pound. Although the company takes its wheat from

FROZEN

Unilever ice cream Unilever is seeking to generate retail growth for its ice cream portfolio and help drive value into the impulse ice cream category with a £7m Talking Ice Cream campaign, which includes new freezers and point-of-sale materials, promotions and a range of new products designed to tap into on-the-go ice cream. The new 80p range includes Wall’s Solero strawberry smoothie, Feast Sandwich and Wall’s Duo. There is also new Magnum Double Raspberry and Magnum Double Coconut. The launch is supported by a £10m marketing spend. They are available in a pack of three with a recommended price of £3.69, as well as OOH singles at £1.90. Additionally, new Calippo Combo mixes vanilla ice cream and strawberry fruit ice. “We know that ice cream is a footfall generator as well as an impulse purchase,” said a Unilever spokesperson. “Therefore, as a business, we are committed to helping our partners unlock the sales opportunities the category presents.”

within 50 miles of its processing plants in Northampton, wheat is priced in dollars and the weaker the value of the pound means it takes more pounds to buy dollar-

Super Bowl 51 took place in Houston, Texas last month and retired NFL star Marshawn Lynch made the trip to Houston, Renfrewshire to publicise Skittles. Equipped with a pushbike and a bag full of sweets, Lynch met with residents to drive awareness of the brand as well as the upcoming game.

listed items. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | MARCH 2017

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www.slrmag.co.uk

06/03/2017 16:39:00

SLR March 2017.indd 21

06/03/2017 16:39:01

News

Off-Trade

Heineken extends sponsorship deal Heineken has extended its

Off-TradeNews

23-year sponsorship of the UEFA Champions League for a further three years. The Dutch beer brand will continue as an official partner of the football competition until summer 2021. The previous agreement was due to end in 2018.

Gin is safe The future of gin is safe, according to UK horticultural experts who have been working to conserve juniper, the spirit’s key ingredient. The UK National Tree Seed Project announced it had now collected and protected seeds of juniper plants from across the country. Since it began in 2013, the project has “banked” 5.8 million seeds from 6,500 UK trees, and it will continue cataloguing until 2018.

RTD CATEGORY BACK IN BUSINESS P60 VODKA asymmetric bottle sure to turn heads

Absolut launches limited edition bottle design Absolut, the UK’s number one premium vodka, has launched its latest eyecatching limited edition bottle, Absolut Facet, with an RRP of £18.75. The distinctive asymmetric blue bottle and gem-like appearance is designed to stand out on shelf by catching the light in unique ways. Adam Boita, Head of Marketing at Pernod Ricard UK, explained: “We have seen strong

growth for Absolut in the off-trade (+10.9% by value), demonstrating that limited edition offerings such as Facet are resonating with customers. As the leaders in the category, we want to continue this growth by pushing the boundaries and bring innovative new products and unique ideas to the forefront through bold designs that excite consumers and drive engagement.”

Spar showcases craft beer Spar ran an instore event in

LEGISLATION

February to showcase its range

Concern over alcohol delivery service

of craft, ale and world beers. There was new point of sale in store to support the event, coupled with substantial social media and digital activity to highlight some of the deals on offer. “As part of Spar’s commitment to support regional and local

WHISKEY

Diageo unveils new Irish whiskey Diageo has announced plans to launch a new brand of blended Irish whiskey. Roe & Co. is named after one of the distillers that helped create the golden era of Irish whiskey in the 19th century. Michael Creed, the Irish government’s Minister for Agriculture, Food and the Marine, said that the time was right for Diageo to be moving into Ireland’s most famous export. “Irish whiskey is experiencing a renaissance and is truly an Irish success story,” Creed said. “It is now the fastest growing spirit drink in the world with global sales increasing by over 300% and record exports of over �400 million in the last 10 years.” The drink will join Johnnie Walker, Diageo’s ﬂagship Scotch whisky, as well as more regional names like Buchanan’s and Windsor.

The rules covering the legal sale of alcohol are in the spotlight following the launch of Edinburgh’s first city-wide home delivery alcoholic drinks service. Drinkly.co.uk offers beers, wines and spirits delivered to customers’ doors within one hour of ordering. Although the service requires some form of age identification and a credit card to access, concerns have been voiced that there might be difficulty in monitoring this closely. A key worry is a potential rise in underage drinking.

suppliers, the event [provided] shoppers with a glimpse of its increased presence in the craft beer and ale category,” said Laura McNally, Spar UK senior marketing manager.

Scotch whisky associations team up The Scotch Whisky Association is to work in partnership with the Scottish Craft Distillers Association to help celebrate “record expansion” in the Scotch whisky sector and its continued contribution to the UK’s economy. To this end, the trade bodies have signed a memorandum of understanding, which details their plans to grow recognition of

SPIRITS Franchise increases its single picks offering

One Stop broadens its spirits range One Stop has added a further 10 spirit lines to its already 300-strong single pick lines available to franchisees. New additions to the range available for single pick include Vodka lines such as Ciroc, Grey Goose and Absolut. Greenall’s and Tanqueray Gins have been added, along with Jim Beam White Bourbon, Chivas Regal Whisky, Jura Origin Whisky and Antica Sambuca. The group’s three for £5 offer on beer has also been expanded. New lines included in the deal are Brew Dog Punk, Flat Tyre, Piston Head, Brooklyn Lager and Goose IPA. One Stop has also launched Tyskie fourpack (RRP £4.75) due to demand, and Red Stripe stubby bottles on an ongoing five for £5 deal.

the Scotch whisky industry. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | MARCH 2017

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www.slrmag.co.uk

06/03/2017 16:39:03

Off-Trade

News

BEER & CIDER Carling updates packaging

Carling refreshes branding Carling has unveiled a brand redesign across its full range this month. The make-over introduces a consistent design across the entire Carling portfolio, which includes Original Lager, Cider, Citrus Twist, and Premier. Carling, the second most popular lager brand in Scotland after Tennent’s (according to analysts CGA), hopes to maintain its position and relevance to consumers by continued investment in the Brand and innovation across its portfolio. Jim Shearer, Carling brand Director, commented: “The new identity is simple yet proud, reinforcing Carling’s values – genuine, dependable and

unpretentious, cementing and driving our position as Britain’s original and best-loved lager.” Carling partnered with design agency BrandOpus on the refresh. Its CEO, Nir Wegrzyn, said: “It was important for us that the new identity be instantly

recognisable as Carling, but enough of a visual shift to move the brand perception forward to reinforce its number one status. We organised the brand in a much more consistent way that would appeal to new consumers and loyal drinkers alike.”

Michael says: Possibly. Your Premises Licence (including the layout plan) sets out the capacity and location of your alcohol display area. If your new shelves create an alcohol display that is either wider or taller than your existing display you will need to seek permission from your local licensing board before you can display additional alcohol. Bear in mind that if your alcohol display area is decreasing in size you may have to decrease this area by varying the Premises Licence before you can use the area for general produce. This can be a complex area of licensing law so it’s best to seek expert advice.

Famous Grouse raises £600k The Famous Grouse is toasting the success of its partnership with RSPB which has reached the fundraising milestone of £600,000. The money will help the charity continue its vital conservation work supporting endangered grouse species throughout the UK. The partnership commenced in 2008 when The Black Grouse whisky was launched. Fifty pence from the sale of every bottle in the UK was donated to help save the black grouse, which was on the UK Red List of Species of Conservation Concern. The £100,000 mark was reached in 2010, and the partnership has gone from strength to strength since.

BEER Stella extends commitment to clean water charity

Stella Artois has announced a multi-year extension of its ‘Buy the lady a drink’ partnership with charity Water.org. To mark the agreement, the brand launched a selection of limited edition bottle packs, exclusive to the UK. Each pack purchased will fund six months of clean water for one person in the developing world.

www.slrmag.co.uk

SLR March 2017.indd 23

Stephen says: Yes, your employee is spot on. You will most likely require permission from PPL (http:// www.ppluk.com/) and PRS (www. prsformusic.com). You can apply for a licence from both online. You should also check your Premises Licence’s Operating Plan allows for Recorded Music and if it doesn’t you will have to apply for a major variation of your Premises Licence. Q: I’m in the process of refitting my shop and will be fitting new shelves in the alcohol section. Do I need to tell anyone?

WHISKY Charity appeal reaches high

Stella pledges Water.org support

Q: I want to start playing some background music in store and a member of my staff said she thinks that you need permission to do so. Can you advise?

WHOLESALING

Bestway joins AWRS Bestway Wholesale is the latest wholesaler to sign up to the Government’s Alcohol Wholesale Registration Scheme which comes into force in April to tackle non-duty paid stock sales.

Q: Help! I have lost the principle (and only) copy of my Premises Licence and a local police officer visited the store to say I need the summary on display or I’ll be charged. Michael says: First you should report your Premises Licence as lost to Police and they should provide you with a receipt number. With this number you can then request a duplicate copy of your licence from your licensing board. You will have to do this in writing and there will be a fee (usually about £50). I suggest you retain a copy of this correspondence so you can advise the police officer that you have a reasonable excuse as to why you don’t have your licence on display.

MARCH 2017 | SLR

06/03/2017 16:39:04

News

Newstrade

UK magazines see net fall of almost 6% The latest ABC figures published last month show that paid-for UK

News& Magazines

magazines audited by ABC lost sales at an average rate of 5.9% year on year on the second half of 2016. It’s not all bad news however, as 130 out of the total of 357 titles audited by ABC actually increased their circulation figures over the same period. The combined print and digital editions figures highlight that the majority of magazine titles are losing sales, but the magazine industry is holding up better than the newspaper industry in general. Among the best performing titles are: Q Times Literary Supplement: up 27.6% year to 32,166 Q The Spectator: +15.2% to 82,585 Q Good Housekeeping: +11% to

NEW MEDIA SCREEN COMING TO WOODLANDS LOCAL P49 LOYALTY SCHEME The Sun launches new cash-driven reward scheme for loyal customers

The Sun to drive sales with £5 cash shopper incentive scheme

Scotland’s biggest selling newspaper has launched a new incentive scheme that rewards loyal shoppers with cash payments in a move that will drive purchase frequency in stores across Scotland. The new Sun Savers programme is being trialled in Scotland and will see regular readers earn £5 in cash every month. Described as “the richest loyalty scheme in the country” by The Sun, the programme will see readers collect a code every

time they buy a copy, with a fiver being paid every time they reach the 28-codes mark. The codes are collected via a simple-to-use app or through a dedicated website

and the cash can be drawn at any time. Kate Bird, Chief Marketing Officer at The Sun, told SLR: “The whole programme encourages habit, and incentivises our readers to come back to buy the paper every day. It is hugely beneficial to retailers as we are encouraging people not to forget to pick a copy up.” The initiative is being supported through activity in the newspaper, as well as email, social media and direct mail activity.

454,697 Q New Statesman: +5.3% to 34,025 Q Country Living: +12.5% to 188,915 Conversely, some of those magazines suffering the largest declines in circulation include: Q Glamour: -25.6% to 260,422 Q Look: -22.2% to 90,315 Q Star: -17.6% to 122,630 Q Heat: -16.5% to 136,470 Q Empire: -15.3% to 123,004 Q Hello!: -15.5% to 225,986 Q Now: -17.3% to 104,937 In newspapers from a UK-wide

CIRCULATION

Private Eye hits biggest ever sales ﬁgure Private Eye Editor and Have I Got News For You TV star Ian Hislop has hailed the title’s “biggest sales figures ever” as the satirical magazine recorded a 9% sales increase in the second half of 2016, representing the title’s biggest ever print circulation. Hislop welcomed the news as “quite something, given that print is meant to be dead”. Private Eye’s ABC-audited circulation figure for its Christmas 2016 issue was 287,334 copies, the biggest single issue sales figure in the title’s entire 55-year history.

perspective, The Observer and The Times were the only UK national newspapers to grow their paid-for print sales year on year in January. The Observer rose 1.4% to 185,752 and paid-for sales of The Times rose 3.8% year on year to 379,861. The Times is now just 21,000 copies behind the Daily Telegraph. The Sun put in the best overall month on month performance in January, up 3.4% compared with the traditionally slower month of December, helped by the success of its popular annual

ABC FIGURES US giant on the up in UK

Time’s UK brands expand reach Time has hailed the latest set of ABC results as confirmation the position of its UK brands as some of the most actively purchased on the newsstand, delivering revenue for retailers. The company saw progress across its portfolio of brands including NME, TV Times, What’s On TV, Woman, Marie Claire, Ideal Home, and Country Homes & Interiors. Marcus Rich, CEO of Time UK, said: “Time brands are some of the best-selling magazine brands on the UK newsstand and we continue to develop our print products to fuel our consumers’ passions.” The company saw circulation increases for titles including TV Times (+2%), Pick Me Up (1.9%), woman&home (+4%) and Country Life (+2%).

CIRCULATION

Johnston Press reports slowdown in steep sales decline Johnston Press, the publisher of the i and more than 200 regional titles, said a precipitous fall in sales slowed in the fourth quarter of 2016 to leave revenues down 14% for the year on a like-for-like basis. Excluding the £24m acquisition of the i in April, fourth-quarter sales were down 11%, compared with 16% in the third quarter. Including the i, the third quarter was down 5% and for the final three months of the year was up 1%. The full year was down 6%. Like-for-like circulation revenues declined 9% over the 12 months, but were up 11% when including the i, helped by a 10p price increase. Ashley Highfield, Johnston Press Chief Executive, said: “We remain focused on delivering on our strategic priorities of growing our overall audience, driving the further success of the i newspaper, delivering a more efficient editorial and sales operation and strengthening the balance sheet. The publisher’s balance sheet remains under pressure from a £220m debt pile.

£9.50 holidays promotion. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | MARCH 2017

SLR March 2017.indd 24

www.slrmag.co.uk

06/03/2017 16:39:06

IT PAYS TO SELL THE SCOTTISH SUN THIS LITTLE PIGGY WILL BRING YOU CUSTOMERS

INTRODUCING SUN SAVERS. IT'S OUR NEW LOYALTY SCHEME FOR READERS. EACH MONTH THEY CAN EARN £5 CASH, JUST FOR PICKING UP THE PAPER EVERY DAY. MEANING YOU CAN BRING HOME THE BACON.

SLR March 2017.indd 25

Readers collect a code each day

28 codes = £5 cash

Readers can earn up to £6 a year

06/03/2017 16:39:06

Inside Business

Market Research | Shopper Stock Take Survey

SHOPPER STOCK TAKE

The new 2017 Shopper Stock Take survey findings suggest shopper priorities are changing towards a quality-led model with fewer and fewer seeing benefit in single trip big-basket shop.

A “Shoppers who do lots of small shops and claim rarely or never to do a main shop has increased to 16%, up from 11%.” SHOPPER STOCK TAKE 2017.

SLR | MARCH 2017

SLR March 2017.indd 26

new report says shoppers are placing better product quality and service higher in their priorities above competitive or cheapest prices. The second annual ‘Shopper Stock Take’ report from Shoppercentric, the independent shopper research agency, also claims that the trend away from the big weekly shop is continuing with fewer and fewer customers shopping this way.. The report measured opinion from over 1,000 shoppers across the UK, asking them about their expectations of the grocery retail sector. Increasing amounts of hard evidence are backing up the anecdotal reports of shoppers abandoning the weekly big shop habit in favour of a little and often approach. The proportion of shoppers who do lots of small shops and claim rarely or never to do a main shop has grown to 16%, up from 11% in 2016. On average, these shoppers visit six different stores a fortnight – revealing very little loyalty to any particular brand or store. Shoppercentric says, however, that 23% of shoppers still do a main shop and try to avoid top-up shops in between. That said, some 47% of shopper regularly use the convenience channel, up 8% year-on-year, according to the report. The Shopper Stock Take also found that

more of us have become quite promiscuous in our shopping habits, with 61% combining a main shop with periodic top ups, a fall from 67% the previous year. Just over half of all shoppers (51%) still remain faithful to a single store or supermarket, or a small combination of outlets, since that number agreed with the statement that fewer, bigger shops were more efficient than lots of little ones – down from 58% in 2016. “Big box grocery retail is not the future so it’s important that changes in shopper behaviour are noted – and acted upon,” said Danielle Pinnington, Managing Director at Shoppercentric. “It’s also essential news for the brands that supply these retailers, because small store distribution and ranging takes far more thinking than the one-size-fits-all template.” Retailers too, have to shape up to serving the expectations of a diverse customer base, the report suggests. There is a list of priorities that around half of all shoppers questioned say are critically important. Contrary to popular perception, the demands that top the list of shopper desires is product quality, with 54% of shoppers looking for good quality fresh meat, fish and produce. Great service comes in a close second place with exactly half of shoppers putting that top of their priorities, a significant increase from 2016 – up 11%. Competitive pricing, as opposed to cheapest price, has fallen from 60% of shoppers seeing it as a critically important priority to 49%. Having the cheapest prices also fell, six points down to 37%. “The changing priorities for today’s UK shoppers are critical to note and retailers must recognise that price is but one part of the value equation, along with time efficiency as well as satisfaction,” observes Pinnington. “With low prices having almost become a given, the more added value elements are now performing a critical role in differentiating between competitors. The retail experience, www.slrmag.co.uk

06/03/2017 16:39:06

Shopper Stock Take Survey | Market Research

of which service is a core part, is becoming more of a focus for shoppers who want to feel important to the retailer, rather than just being a walking wallet. And they want their needs to be recognised and reﬂected, through retail experiences that save time and ultimately make life easier.”

67% of UK shoppers agreed that ‘I prefer it if the money I spend benefits local businesses’.

they would prefer it if the money they spend benefits British businesses, and almost the same figure agreed when that was subtly changed to benefitting local businesses. There’s obviously lots for local retailers to ponder, and be encouraged by, in the Shopper Stock Take. “It’s no small task,” concluded Pinnington. “There is a very real need for a back to basics approach, with good housekeeping, clean and clear promotions and good stock availability etc., to ease shopper frustration and prevent undermining a positive retail experience. “This year retailers must get amongst their shoppers, see retail through their eyes, build the stores, merchandise the categories and create the digital solutions that truly support the purchase process. Everything counts to the shopper as they continue to ﬂex their spending powers.”

Inside Business

“Big box grocery retail is not the future so it’s important that changes in shopper behaviour are noted – and acted upon.” DANIELLE PINNINGTON.

Giving the customer what they want is not confined to product though, as the report alludes. There are some factors which are seriously annoying shoppers, with rude or unfriendly staff top of the hit list. Across all five channels covered in the report (from multiples to specialists) there was an 8% rise in dissatisfaction with customer service – with 62% noting it as their main shopping concern, keeping it above the bug-bear of long queues, a problem for 8% more shoppers than last year. Other leading causes of complaint included promoted products running out too quickly and messy shelves. The trend for ethical shopping makes a strong showing in the 2017 report. When prompted, 66% of UK shoppers agreed that www.slrmag.co.uk

SLR March 2017.indd 27

MARCH 2017 | SLR

06/03/2017 16:39:06

PART

5 G N I R E N T R A P … S S E C C U S R FO

THE CONTINUING IMPORTANCE OF TOBACCO Tobacco remains one of the UK’s largest FMCG categories and a significant contributor to store turnover.1 On 20 May 2017 the EUTPD II and standardised packaging regulations come into force and current branded tobacco packs legally can no longer be sold.

TRANSITION PERIOD Examples of standardised pack designs. For illustrative purposes only, and subject to change.

MAY 2016

MAY 2017

20 LESS THAN THREE MONTHS TO GO UNTIL ALL RETAILERS NEED TO BE COMPLIANT! From 20 May 2016 standardised packs may begin to appear in the market. Between now and 20 May 2017, retailers are allowed to sell both current packs and standardised packs.

From 20 May 2017 retailers are only allowed to sell standardised packs • Cigarette packs must be 20 sticks or more • Roll-your-own tobacco pouches must be 30g or more • Price Marked Packs no longer allowed

For Tobacco Traders Only

SLR March 2017.indd 42204 PFS_ TRADE 28 AD A4 DPS (Part 5) AW.indd All Pages

06/03/2017 16:39:06

“Imperial’s START packs have been an invaluable tool during the transition to EUTPD II and standardised packaging, providing me with expert support around competitive pricing, merchandising, availability, range and more. By selling at RRP or below2, I’m maintaining customer loyalty and protecting footfall during this important time for the category.” Harvey Sanghera, King’s Norton Supermarket.

HARVEY’S TIPS FOR MANAGING THE TRANSITION

START

•SUPPORT•TRAINING•AVAILABILITY•RANGE•TRUST•

SUPPORT: “With support from my Imperial rep I am rotating my stock to ensure sell through of branded packs ahead of the EUTPD II deadline”

TRAINING: “I make sure my staff and adult smoker customers know all about the new legislation by using Imperial Tobacco resources like price lists, START packs and Consumer Information Cards.”

AVAILABILITY: “I’m checking for out-of-stocks of popular brands, replenishing my gantry daily to ensure my customers remain loyal and selling through current branded packs first.”

RANGE: “As 10 packs and smaller weight RYO leave the market, I’m filling gaps in my gantry with larger pack formats from the same brand family.”

TRUST: “I have a great relationship with my Imperial rep. Together, we’re Partnering for Success to ensure the future success of the tobacco category in the independent sector.”

D N A I I D P T U E H G U O R G H N I T G A … K C A P D E S I D R A D N A ST ducts

ce of their pro rch 2016 the selling pri 1 IGD Resea to determine e at all times fre are rs ubt, retaile

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2 For the avo

www.imperial-trade.co.uk

SLR March 2017.indd 29

06/03/2017 16:39:07 03/02/2017 14:49

Inside Business

What’s Trending | #Free-From Food

WHAT’S TRENDING?

#free-from

No longer just a dietary requirement for those with certain intolerances, more and more people are making free-from a lifestyle choice and part of their way of life. What does that mean for retailers keen to engage with the market? Franck Casonato Giacopazzis & Co At the moment we don’t stock too many “free from” products in our Milnathort shop but we do stock a decent range in the Kinross store. I personally think that it is something that we should be giving some serious thought to in the near future. We have tried it in the past but they were not selling that well. Perhaps we were just too early. The relatively high prices may also have had something to do with it so if they manage to produce more of it and as a consequence reduce the cost, it may be an opportunity to give more options at a reasonable price for the customer and for the retailer to keep acceptable margins. Next month

We do stock a range of gluten-free items that were merchandised on an individual basis for customers usually suffering from a medical condition. However, over the last couple of years it has changed to customers making lifestyle choices to omit the likes of gluten, lactose, meat, sugar, salt and so on from their diet. We now stock many more niche products as requested by customers. This provides a difference from our competition and encourages loyalty from our customers. We started with a few products but we have expanded into more categories in store and I only see that growing.

Julian Cooke Head of UK Category Management, Quorn The huge rise in demand for healthier and more sustainable food choices, without having to compromise on taste or quality, is driving the growth of the meat free market. Contrary to what many retailers think, meat free products are not just for vegetarians, In fact, seven out of ten shoppers who buy market-leading Quorn are non-vegetarians. This falls against the backdrop of one third of Britons now actively choosing to eat less meat. The meat free market is also good for other categories as shoppers buying these products spend three times as much as other shoppers.

Stuart Harrison Senior Grocery Buyer, Filshill There is a lot of emphasis on “free from” at the moment. The looming sugar tax, general wellbeing, Coeliacs, and of course self-diagnosed Coeliacs. It could be a huge category in retail. There are more and more suppliers coming out with a “free from” range and we must now sit up take notice. At Filshill, we are lucky we have a fantastic partner to assist retailers with this category in Greencity Wholefoods. My only concern would be the premium pricing that some of these products still hold. Premium pricing can be achieved where quality is high, so manufacturers need to consider this when pricing their products.

#ratesrevaluation We want to hearv how your business has fared under the rates revaluation. Email abegley@55north.com

SLR | MARCH 2017

SLR March 2017.indd 30

Donna Morgan Best-one @ Brownlies

www.slrmag.co.uk

06/03/2017 16:39:08

Kate Bird, Chief Marketing Officer, The Sun | 2 Minutes

Inside Business

Kate Bird The Sun is launching a loyalty scheme this month with the launch of a new initiative offering regular readers cash every month simply for buying the UK’s favourite newspaper. Chief Marketing Officer Kate Bird explains how the scheme works, and why it’s great news for retailers. SO, TELL US WHAT THE NEW SUN SAVERS PROGRAMME IS ALL ABOUT?

HOW ARE YOU COMMUNICATING SUN SAVERS TO CONSUMERS?

Sun Savers is the brand new loyalty scheme from The Sun, that rewards our regular readers with £5 cash every month. It’s the richest loyalty scheme in the country and one that rewards with cash, so they can spend their reward on whatever they like.

The Scottish Sun newspaper, as the most widely read newspaper in the country, is where we will inform our customers about the programme. Everyday Scottish Sun readers are our target audience, after all, so it makes sense to talk to them via the newspapers they’re reading every day anyway. This activity will be amplified however with large scale email communications programmes, heavyweight social media activity and a substantial direct mail campaign. All of this activity will be geared towards reminding readers to download the app or visit our website and scan the daily code every day.

HOW DOES IT WORK IN PRACTICE FOR SHOPPERS? The mechanic is very simple. Shoppers just download the Savers app, or visit the website, and enter the code that appears in the newspaper every day. Once they reach 28 codes, a fiver goes straight into their digital Sun wallet and can be withdrawn at any time. Shoppers can keep saving their cash up every month, or withdraw it every time they reach 28 codes. It couldn’t be simpler.

AND FOR RETAILERS? The good news for retailers is that no action is required on their part at all. Everything is done via the app or website so retailers can go about their day with no changes and no extra work whatsoever.

WHAT ARE THE THREE BIGGEST THINGS THE NEW SCHEME WILL DELIVER? First and foremost, very happy customers! The launch of Sun Savers allows The Sun to become the home of value to our readers, putting a bit of extra cash back in their pockets every month. Secondly, we will also expect to see a sales impact, with our readers keeping or increasing their momentum in buying The Sun. Lastly and most importantly, Sun Savers will allow us to have a more personal relationship with our readers, so we can offer them more value that is actually relevant to them.

www.slrmag.co.uk

SLR March 2017.indd 31

SUN SAVERS IS GOING TO BE THE RICHEST REWARD SCHEME IN THE UK FOR CUSTOMERS, BUT HOW IS THIS GOING TO BENEFIT LOCAL RETAILERS IN SCOTLAND? The whole programme has been specially created to encourage habit. It incentivises our readers to come back to buy the paper every day. This will clearly be hugely beneficial to Scotland’s local retailers as we are encouraging people not to forget to pick us up every day! We also hope that customers who perhaps don’t buy the paper seven days a week but only, say, buy it Monday to Friday, will be encouraged to pick it up at their local store on weekends too. This will help to drive footfall and drive basket spend for retailers. It really is a win-win programme that benefits customers and retailers.

DO YOU THINK THE INTRODUCTION OF SUN SAVERS WILL INCREASE SALES OF THE SCOTTISH SUN? The programme isn’t specifically designed to see massive uplifts in the newspaper sales; it is there to maintain our current readers, by rewarding their purchase behaviour. But we wouldn’t be surprised to see sales rise!

FACTFILE Kate Bird was appointed CMO of The Sun in November 2016, having worked as Betting and Gaming Marketing Director at The Sun from December 2015, where she successfully launched the brand’s own bookmaker, Sun Bets. Kate joined The Sun after building a career working at The Times, Coral, and the BBC, and a stint in the USA at the Wall Street Journal, in various marketing roles. Based in The News Building in London, she is responsible for marketing The Sun in print and digital, and its betting and gaming products.

MARCH 2017 | SLR

06/03/2017 16:39:09

SLR

AR R EW D S

2017

SLR REWARDS REWARDS CEREMONY: 11 MAY 2017

SLR REWARDS: SHORTLIST The shortlist for this year’s SLR Rewards has been unveiled following the successful completion of the first phase of judging. BEER & CIDER RETAILER OF THE YEAR

FOOD TO GO RETAILER OF THE YEAR

Best-One @ Brownlies Costcutter Kelty Day Today Wallyford Nisa Local Greens of Markinch

David’s Kitchen Glenrothes Day Today 10 O’Clock Shop Giacopazzi’s, Kinross

BISCUITS RETAILER OF THE YEAR Best-One @ Brownlies Scotfresh Cardonald Spar Abronhill

CONFECTIONERY RETAILER OF THE YEAR Ardeer Service Station Clydebank Co-operative Society – Dalmuir KeyStore Spar Abronhill Spar Euro Garages Lomondgate

CRISPS & SNACKS RETAILER OF THE YEAR Giacopazzi’s, Milnathort JET Maybole Service Station Spar Renfrew

ECIGS RETAILER OF THE YEAR Certas Gulf Coatbridge Scotfresh Denny Branch SPAR Euro Garages Lomondgate

FRESH & CHILLED RETAILER OF THE YEAR Giacopazzi’s, Kinross Nisa Local Pinkie Farm Convenience Store Spar Renfrew Spar Tarves

COMMUNITY INVOLVEMENT RETAILER OF THE YEAR Family Shopper Blantyre Nisa Local Leven Nisa Local Pinkie Farm Convenience Store Premier Smeaton Stores

NEW STORE OF THE YEAR Ardeer Service Station Costcutter Kelty Giacopazzi’s, Kinross

MAKING THE MOST OF MILK

BEST REFIT OF THE YEAR

Spar Boswell Park Spar Leven Street, Motherwell Spar Renfrew

Day Today 10 O’Clock Shop Premier Linktown Local Spar Carmondean

NEWSTRADE RETAILER OF THE YEAR

RESPONSIBLE RETAILER OF THE YEAR

Giacopazzi’s, Milnathort Killie Convenience Spar Coatbridge

Certas Gulf Kirkintilloch Day Today Lochside Day Today Maryhill

SOFT DRINKS RETAILER OF THE YEAR

THINKSMART INNOVATION AWARD

Ardeer Service Station Londis Inveraray Spar Renfrew Spar Thornliebank

Ardeer Service Station Nisa Local Greens of Markinch Spar Renfrew

SPIRITS RETAILER OF THE YEAR Best-One @ Brownlies Day Today @ Renfrew Nisa Local Greens of Markinch

TEAM OF THE YEAR Giacopazzi’s, Kinross Nisa Local Leven Sinclair General Stores

WWW.SLRAWARDS.COM SLR March 2017.indd 32

06/03/2017 16:39:10

Forecourts

FORECOURTS DRIVING GROWTH IN SCOTLAND

www.slrmag.co.uk

SLR March 2017.indd 33

Special Report

The forecourt sector in Scotland is enjoying an extremely positive period and today’s modern, slick forecourts are unrecognisable from the scruffy petrol stations of a decade ago. SLR takes a closer look at what’s driving this growth, and where forecourt retailers should be focusing their attentions in future.

MARCH 2017 | SLR

06/03/2017 16:39:12

Join the winning team! Supported locally by the largest Scottish based sales team in the symbol sector!

ss, busine nd our nd a a p , x s e e o remis king t p o e lo h sional t e s f r e prof t We we ling the size o n a c p ignifi e for us quadru would need s bvious choic een e sb eo knew w SPAR was th ived ha t. ve rece he store's r a o h p e p w u s .T ort tations sts and e supp and th r expec ed all foreca u o d n ey can ed yo way be nce has exce standards th a e . h m perfor mers know t the entrance aybole o M e t v R s o A u R ab y , SP our c ith SPA Brian Connoll w t c e exp

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Speak to us today * Subject to terms and conditions. Maximum amount available for store development £20,000. £2,500 membership fee saving based on higher tier.

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SLR March 2017.indd 34

www.facebook.com/ SPARintheUK

@SPARintheUK

Channel: SPAR UK

06/03/2017 16:39:13

Forecourts

one are the days when forecourts were the grubby, unloved cousins of the retail industry. While once the best a drive-in customer could expect was half a dozen pumps and a kiosk selling a warm can of Red Bull, a packet of crisps and a Mars Bar, today’s next-generation forecourts offer everything a shopper could want or need. Forecourts across Scotland have responded to evolving shopper trends and increased competition from the major multiples in some style. Indeed, the last Association

the go. The modern forecourt provides a full food-to-go range, both hot and cold, backed up by a strong traditional convenience offer and a solid range of fresh food, particularly fruit and veg. The ACS report shows that 77% of UK forecourts now offer cold food-to-go, 70% have a coffee machine, 46% have a hot food counter, 35% have incorporated an instore bakery and 29% offer a microwave for customer use. Fuel brand Jet’s Retail Accounts Manager for Scotland, Paul Yates, says that forecourts

of Convenience Stores (ACS) Forecourt Report explicitly acknowledges this point, emphasising the marked trend of forecourts blossoming into both a fuel stop and a fullyﬂedged convenience store. Nigel Gray, Retail Director at Nisa, comments: “One of the challenges of running a forecourt is the historical consumer perception of what they used to be as opposed to what they could become; the perception that they were a necessity rather than a destination shop for fresh food, meal solutions and a broader range of services and products that are much more common now.” The future, concludes the report, was that “forecourt retailers need to move their focus away from being a ‘pump with a shop’ to ‘a shop with a pump’”. So if retailers are to follow this guidance, what are the key opportunities that lie ahead? Where should they be focusing their efforts in building a modern forecourt operation that will bring shoppers to the door regardless of whether or not they require fuel?

are fast becoming ‘convenience hubs’ to buy fuel, do a top-up shop, collect online orders and grab a quick lunch with a coffee. “With the average commuter spending more than £10 a day on lunch, takeaway coffees and other food (that’s an incredible £2,500 a year!), it’s easy to see why forecourt operators are keen to maximise on this trend.” Yates has observed a rising consumer demand for high quality on-the-go coffee, which led to Jet’s decision in 2015 to join forces with eXpresso Plus to introduce a coffee-to-go initiative for its independent dealer network. With 48% of food-to-go shoppers making unplanned additional purchases there are strong commercial arguments for enhancing a forecourt’s range. In July 2016, Jet announced its decision to enhance its eXpresso Plus alliance and launched ‘Snack on the Go’, a coffee and foodto-go concept to help drive forecourt footfall across its UK dealer network, which includes 50 Scottish sites. As forecourts emerge as destination sites for an increasing number of customers thanks to this improved offer, the availability of parking is an important positive for many forecourts in Scotland. CJ Lang’s Marketing Coordinator Terri Plummer suggests: “Residential neighbourhood community-based forecourts

FOOD-TO-GO IS GOOD TO GO Food-to-go is a megatrend in convenience retailing in general, so it’s no surprise that food to go should be a key focus in forecourts too – particularly as many of the shoppers who arrive at a forecourt are by definition on www.slrmag.co.uk

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Special Report

are now in many cases becoming the main supplier for local daily provisions. Here, we see a real mix of shoppers. Some arrive by car to take full advantage of the exclusive parking. Just as many customers arrive by foot, using the forecourt as their local convenience store, more so than the transient out of town location. It’s at these that shoppers are more likely to arrive by car to fill up their vehicle with fuel, but also expect to be offered body fuel with a real Food-to-Go offer meeting needs of a completely different shopper.” Senior Retail Insight Manager at grocery research organisation IGD, Gavin Rothwell, also champions the forecourt as leading the way on many fronts when it comes to improved food-to-go options. He says: “Foodto-go shoppers are especially interested in products that suit particular diets, with 34% looking for a larger range of vegetarian products, 25% more dairy-free products and 23% seeking more vegan or gluten-free options.” He urges forecourt retailers to cater to consumers looking for options for an alternative mission, beyond the classic coffee and lunch options. He says: “Although many retailers and specialists are focusing their efforts on breakfast, this is a relatively small market and spend per trip can be quite modest. We’re therefore expecting to see a broader focus on alternative missions at different times of day – some of this might be evening meals, but there may also be opportunities at other times of day, for example a post-work snack or post-gym energy boost.”

KEEPING IT CLEAN When it comes to creating customer loyalty, first impressions count. Whilst the initial attraction for many will be the fuel price, forecourt operators should still strive to offer a bright and welcoming environment to entice new customers onto their forecourt and retain those who are already familiar with the site. Keeping a forecourt clean is a significant but vital undertaking. Matt Clayton, Gilbarco Veeder-Root UK Sales Director, says that a proactive approach should be taken when it comes to site maintenance. “Poorly maintained pumps lead to excessive downtime,” he says. “Capturing and retaining customers is vital for a successful forecourt. Excessive queues, slow dispensing and visually unwelcoming forecourts are all factors in lost fuel and shop sales to more convenient and appealing forecourts.” Maintaining a clean and tidy forecourt needs daily attention in order to pick up on any issue before it can escalate. Lorraine Binnie, Director of CSC Forecourt Services says that the forecourt should be surveyed MARCH 2017 | SLR

06/03/2017 16:39:15

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20/02/2017 06/03/2017 12:41:43 16:39:18

Special Report

Forecourts

regularly so that big cleaning operations can be kept to a minimum. She says: “We have found that bookings of annual forecourt cleaning have increased and retailers are placing more importance in having an annual deep clean, realising the role it plays in increasing customer ﬂow. “Retailers need help with most areas of forecourt cleaning. They don’t have the equipment necessary to deal with canopy and forecourt surface cleaning or the safety equipment necessary to carry out this work safely. Possibly some feel it’s not a necessity. However, for a fairly low investment, the site can be transformed from a grubby and uninviting to a brighter, cleaner place for people to buy fuel and shop confidently.” Jet gives every site in its network a full branding valet each year. Paul Yates explains: “All Jet dealers automatically benefit from a free forecourt deep clean on the anniversary of their site being imaged. Provided by CSC Forecourt Services, cleaning of the canopy fascia, under canopy forecourt surfaces and pole sign are included, ensuring each forecourt looks at its very best.” Yates says dealers can also book an additional clean or services throughout the year including a car and Jet wash bay valeting and cleaning of forecourt surface areas outside of the canopy. “As you can imagine, it’s a significant cost to appoint specialists to undertake these annual cleans, but it is money very well spent as we know how important clean sites and facilities are to our customers,” he says.

FUELLING FOOTFALL Despite the focus on retail, forecourts remain by definition a place for drivers to top up on fuel. There is of course an ongoing battle between the supermarkets and dedicated fuel suppliers, but in recent years the price gap has been closing, which is great news for 38

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independent retailers. Thankfully, the major multiples have also failed to find a solution to the problem that they are plagued by: the physical disconnect of their main store to their petrol station. Forecourts don’t suffer from this disconnect and can therefor offer the convenience that modern, time-poor shoppers are seeking. In research by the AA, the gap between the big four supermarkets and dedicated fuel retailers has dropped below 3p for the first time in a year. The AA said that driver confidence in supermarkets having cheapest pump prices has been called into question recently, discovering that both petrol and diesel was on average cheaper at Jet fuel stations between mid-January and midFebruary 2017 than at Sainsbury’s forecourts. With this key selling point all but nullified, there is very little to recommend supermarket fuelling stations to a shopper over the more convenient and comprehensive offer available at a forecourt. A growing opportunity for forecourts is the burgeoning electric vehicle market, with sales of hybrid and electric vehicles increasing exponentially. As of October last year, 90,000 plug-in vehicles were registered in the UK, with a third of those purchased in 2016 alone. Compare this to the 138 electric vehicles that came onto our roads in 2010. “As this trend continues, sites offering charging for electric vehicles will become a destination, and those without charging facilities will become more unattractive,” says Paul Gallagher, a consultant in JLL’s alternative property team. “It may seem like a big investment, but statistical evidence shows that electric and hybrid drivers park for longer because they want to make sure their vehicles are charged up enough to reach their next destination.” One of the main barriers for electric vehicle charging is the time it takes to ‘fill up’ with www.slrmag.co.uk

06/03/2017 16:39:20

Forecourts

Special Report

JET CASE STUDY: USING FOOD-TO-GO TO DRIVE FOOTFALL Following a £60,000 shop and external refit in 2015, Jet’s Parkhouse Garage in Ardrossan, North Ayrshire, teamed up with Spar as its symbol partner. During the refit, emphasis was placed on enhancing the site’s food-to-go options, and it now boasts a range of fresh cream cakes, pastries, sausage rolls and pies from a local supplier. The ready to eat goods are delivered daily and have proven hugely popular with customers. New chillers offer a wide range of chilled food-to-go products including sandwiches and drinks. Crisps and confectionery are also displayed prominently. Many food-to-go items are included in Spar’s special price deals and multibuy offers. The forecourt is located opposite a secondary school, and a hot food rollover machine was introduced, providing a constant supply of hot and fresh hot dogs and burgers. It is popular among the large numbers of students who visit before and after school and during the lunchtime period. The machine has proved a great hit, with growing sales and positive feedback received. A hot water dispensing tap is located next to a range of instant noodle pots so customers can prepare them with hot water on site ready to eat. This too proved itself popular among local schoolchildren, as well as commuters looking for a quick hot snack. A microwave is also available for customers to heat up chilled food-to-go items or ready meals, of which there is a good selection located nearby. Parkhouse also has a modern Tchibo ‘Bean to Cup’ coffee machine which grinds its own coffee beans to provide caffè latte, espresso, Americano and cappuccino. It also vends hot chocolate and hot water for tea. An ongoing loyalty card scheme gives repeat customers their ninth cup free of charge. By introducing new product ranges, choosing the correct stock for the customer demographic and ensuring the shop’s design encourages sales, Parkhouse continues to go from strength to strength.

www.slrmag.co.uk

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MARCH 2017 | SLR

06/03/2017 16:39:21

JET

THE fuel brand of independent Scottish dealers

From Dumfries in the south to Thurso in the north, and from Kyle of Lochalsh in the west to Duns in the east, JETâ&#x20AC;&#x2122;s network of independent Scottish forecourts is going from strength to strength. In Scotland alone, we now supply over 1 billion litres of fuel to independent dealers, other oil companies, hypermarkets, major resellers, and commercial and marine customers.

* Source: Phillips 66 analysis based on Catalistâ&#x20AC;&#x2122;s latest price data.

SLR March 2017.indd 40All Pages SLR_DPS_0117.indd

06/03/2017 16:39:23

More and more Scottish dealers are making JET their fuel supplier of choice and here’s why... • Security of supply: JET is Scotland’s only branded dealer supplier with its own UK refinery – offering security and flexibility • Competitive supply price: Our competitive supply price meant that JET was the lowest priced nonhypermarket fuel brand in Scotland in 2016* • An award-winning standards and service programme: Our ‘Proud to be Jet’ standards and service programme rewards dealers who deliver high standards and offer excellent customer facilities

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• Big brand alliances: Our brand partnership with SPAR UK enables JET dealers to transform their sites into convenience destinations that maximise on both fuel and food sales • Retail support: Our compelling range of retail support services and partner offers help dealers to drive forecourt footfall and customer loyalty • Flexible food-to-go solution: ‘Snack on the Go’ - our exclusive coffee and food-to-go concept with eXpresso PLUS and Country Choice - helps dealers capitalise on the growth in food-to-go sales

JET is 100% committed to the future of fuel retailing in Scotland and the continued expansion of our dealer network. We’d love to talk to you about how we could help your business thrive now and into the future.

T 01926 404 333 W jetlocal.co.uk E connect2jet@p66.com JourneywithJET @JETPetrol

• Consumer promotions: At no cost to our dealers, our innovative national and local promotions have been proven to drive up forecourt footfall and fuel volumes

06/03/2017 16:39:25 20/01/2017 17:23

Special Report

Forecourts

“Having two fuel card options gives our dealers better access to thousands of consumers nationally, while also keeping their local customer base happy.” STUART CUFFLIN, TRANSPORT AND RETAIL SERVICES MANAGER, JET

many opting for at-home charging ports – but the technology is evolving rapidly. Powerstar, which specialises in large power storage solutions, has developed charging technology that can fill up an electric vehicle in just 20 minutes. Still slow in comparison to filling up a petrol or diesel car, but hardly an excessive period of time – and it gives the shopper 20 minutes to browse the store and pick up a coffee, a newspaper, a bite of lunch, a snack, a treat or something for tonight’s dinner. Robert Hughes, Business Development Director at Powerstar, said: “For individual users, the main thing that’s going to inﬂuence you or me is ‘how do we charge it?’ You can put in a home solution, a little plug-in thing at the side of the garage. The trouble is, your car doesn’t stay in the garage. It’s like saying ‘the answer to all my petrol station problems is having a petrol pump inside my garage’ – it’s not as easy as that.” Installing EV charging stations is all about time, then. Short enough not to be inconvenient for drivers, but long enough to give them the chance to spend some time in store and hopefully pick up a few items.

ADD SERVICES! Being a fuel provider is the forecourt’s obvious USP, but there are additional services which retailers could implement making them an essential stopping point for drivers. Features such as car-washing and tyre-filling facilities are expected, as well as the availability of special buy items like in-car essentials or wood and coal. Greg Deacon, Independents Sales Manager at News UK, the company behind The Sun and the Times, expects more forecourts to become US-style click and collect sites in the future. He says: “You can pay for your fuel at the pump, then collect a drive-through coffee, Subway or food-to-go without leaving your car. If you can add more services, it’s a great way to differentiate.” Many forecourts are becoming click and collect pick-up locations with Amazon shoppers able to collect their purchases from parcel lockers located in a number of fuelling stations. As forecourts are both accessible and secure on a round-the-clock basis, having an 42

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Amazon parcel locker can attract more drivers to the stations who may then decide to buy other items from the shop while they are there. Photo-Me’s selfservice laundry units are starting to gain ground across Scotland. The units provide not one but two reasons for shoppers to visit – to put their clothes into the machine and then collect it when it’s finished. It’s innovation like this that may be the way forward in future. Denis McCormack’s Spar store in Polbeth and Mahmood Saleem’s Nisa store in Stevenston both have units installed.

CREATING LOYALTY New technology is another area where fuel retailers can differentiate themselves from their competitors. Jet has reported positive results from its dealer network since it launched a three-month trial of the mobile app, Waze. Waze uses adverts that draw the user’s attention to a branded location pin which highlights each Jet site’s exact location. If the user taps on the pin, more information is presented and they can ask the app to take them directly to the site. With over four million views in just three months, it has proven successful in raising brand awareness and driving forecourt footfall. Dealers should want to give their customers options for how to pay for their fuel and goods. They should want to meet local consumers’ needs, but also attract new customers from further afield. In response to this, many dealers have been enhancing their fuel card option for their network. Jet’s well-established JetCard targets local consumers and businesses seeking convenience and value, with no minimum usage and no deposit required. The fuel brand’s best performing Scottish site has

25% of its fuel sales going through JetCard, proving how effective this kind of offer can be when taken up by local businesses. For businesses, package deals are available for customers with larger ﬂeets who want national coverage. Since spring 2014, Jet has also offered the Fleetone card through UK Fuels Ltd, offering special deals for customers with a network of vehicles. The Fleetone card is already accepted at over 3,000 multi-branded fuel stations nationwide including all Jet forecourts. At the same time, Jet has expanded its card cross-acceptance across major forecourt brands, giving Jet dealers better access to millions of consumers across the country. Stuart Cufﬂin, Transport and Retail Services Manager at Jet, comments: “Helping our dealers’ businesses thrive is a fundamental part of our dealer package and we believe having two fuel card options gives our dealers better access to thousands of consumers nationally, while also keeping their local customer base happy. It’s a win-win for dealers and consumers.” Forecourts are an increasingly competitive marketplace, and by using fuel as a key footfall driving element to their proposition, they can further enhance their in-store offering to ensure they become go-to locations for drivers. The forecourt has noticeably evolved from being a fuel provider with a small kiosk to a convenience store in its own right. As a drive-by location it has the potential to offer a number of services for consumers on the move, from picking up something for dinner, posting or collecting a parcel to grabbing a pick-me-up treat. To make their business more desirable, forecourts should aim to deliver in all areas, not just fuel. www.slrmag.co.uk

06/03/2017 16:39:27

SLR REWARDS

JOHN SCORES WITH MILK!

Spar Charlotte Dundas manager John Swinney has high hopes and a good view for Scotland’s World Cup qualifying match at Hampden later this year, thanks to his award-winning milk fixture.

ith milk being a key category in any c-store – and the most valuable liquid you sell! – competition for Müller’s Making the Most of Milk award was fierce. In a Spar-dominated shortlist, John Swinney’s Charlotte Dundas store, a 2,911sq ft CJ Lang-owned store with great overall standards took home the prestigious SLR Milk Vendor of the Year award. A regular contender in SLR Rewards shortlists, the store’s prize-winning 2-metre milk fixture was easy to spot from the front door thanks to a prominent siting and strong signage, the cabinet itself is regularly tended to and spotlessly clean and the range and merchandising is spot on. POS throughout the store reminds customers to pick up a pint too. Every box was ticked.

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The reward, sponsored by Müller Milk & Ingredients, will see John head to Hampden on September 4 to watch Scotland’s national team (hopefully) displaying some talent and commitment on the pitch against Malta in a vital world cup qualifying match. He isn’t getting the cheap seats in this deal, with the prize including a view from a VIP box with complimentary dinner and drinks. John is an avid football follower, although he doesn’t go quite as much as he used to. “I used to have a season ticket for Celtic Park – my seat was about five rows from the back though!” Hopefully the VIP experience will give him a slightly better view, and he thinks we might be in with a shot: “I like Gordon Strachan, he’s been good as an international manager and I think we might just manage a win over Malta.”

THE WINNING STRATEGY Q Placement – the milk fixture is easy to spot from the front door thanks to prominent siting and strong signage. Q Keeping it clean – a well presented, spotlessly clean cabinet that reassures customers of quality. Q Signposting – POS throughout the store that reminds customers to pick up a pint.

MARCH 2017 | SLR

06/03/2017 16:39:31

SLR REWARDS

HARRIS HEADS TO CHARDON D’OR Refitting a store is an expensive gamble, but for Harris Aslam it paid off several times over after he added yet another trophy to his bulging awards cabinet.

ot content with picking up the E-cigs, Confectionery and overall Scottish Local Retailer of the year awards, Harris Aslam also took home the award for the Best Refit of the Year. He now looks forward to spending an evening in Glasgow where he will dine at the much-lauded Brian Maule at Chardon d’Or restaurant. The win, as well as his others, was well deserved following the fullscale refit of the Nisa Greens of Markinch store, which is unrecognisable from what came before. The transformation was designed around a mission-shopping ethos, featuring a carefully constructed to feature a number of specific zones from fruit and veg to ready meals to confectionery, moving fresh, locally sourced food to the front of the store, organising the reimagined 4,800sq ft space, removing clutter and providing optimum convenience. Harris is yet to have his meal, but only because business is booming and he is waiting until a quieter time. “We’re always about innovating,” he said. “The Markinch Store was especially good because we knocked it down and started from scratch and it was all done within four months. And the thing is we’re always reviewing and re-evaluating and innovating, we see what works and what we can improve. The response from our shopper has been massive.” The refit is continuing to pay off as Nisa Greens of Markinch has been shortlisted in three categories at the upcoming SLR Rewards: Beer & Cider Retailer of the Year, Spirits Retailer of the Year and the ThinkSmart Innovation Award, and Harris is hoping for a repeat performance on 11 May at Grand Central Hotel, Glasgow.

HARRIS’ REFITTING ADVICE Q Constant reviewing – don’t be afraid to disrupt the process with new ideas. Q Bespoke designs – creating a unique fixture can be more cost effective. Q Work closely with shopfitters – a hands on approach will deliver the results you want.

SLR | MARCH 2017 www.slrmag.co.uk

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06/03/2017 16:39:33

SLR REWARDS

PARKHALL TEAM ARE IN A LEAGUE OF THEIR OWN Colette Gilliland’s Clydebank Co-op / Keystore Parkhall workforce are immortalised on Topps trading cards following their Team of the Year win.

ometimes it’s in adversity that a really fantastic team comes into its own and shows its worth, and so it was in Clydebank Co-op / Keystore Parkhall. Manager Colette Gilliland hadn’t been in the store long when the effects of a personal tragedy struck but it was thanks to her team that she got through. Colette was so appreciative that she even wrote a poem individually thanking every member of her team. Members of the team are always brimming with ideas and the managers are more than

www.slrmag.co.uk

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willing to listen, with employees having suggested what the store should be selling, helping to bring in popular products such as Graham’s Ice Cream as well as installing a well-received slushy machine. The prize for Team of the Year sees the Clydebank team join the likes of Arsenal F.C., Minions and WWE stars as they are immortalised in their very own set of Topps trading cards – a truly money-can’t-buy reward! They are very limited edition so don’t expect to be able to pick up a pack down at your local c-store.

WHAT MAKES A GREAT TEAM Q Give everyone a voice – listen to your employees’ suggestions. Q Support each other – help team members who are struggling with an issue. Q Be positive – a happy team is a winning team.

MARCH 2017 | SLR

06/03/2017 16:39:40

WOODLANDSlocal

Inside Business

Woodlands Local | Monthly Update

ANOTHER ALLACTION MONTH AT WOODLANDS BY ANTONY BEGLEY

t’s been another hectic month of seasonal activity in Falkirk for us as we plough through Valentine’s Day and into HALF Easter. We’ve also kicked off PRICE! HALF a number of new tech-based PRICE! initiatives in-store and some £1.69 £1.00 NPD trials with a number of HALF major suppliers. PRICE! A key development HALF this month has been the PRICE! 99P 59P completion of all of the preparation work that was HALF PRICE! required to facilitate our HALF change of ePos system to PRICE! Retail Data Partnership’s £1.99 £1.99 (RDP) ShopMate system. Transferring ePos suppliers is never an easy task at the best of times, but with the added integration issues around our Darius for Retail shopper engagement solution, it’s been a busy month trying to ensure the switchover is as pain-free as possible. Importing our entire product file into the new system with the correct sales prices involved literally scanning every single product in the shop. A fun task, as you can imagine. If we didn’t do it, however, the new system would simply apply RSPs across every product which would wipe out all of our existing promotional pricing and all of our products that have been priced at below or above RSP for specific reasons. The support we received from the helpdesk at RDP was exceptional however, so the process was smooth and the work completed within a few days. All of the product files we require have also now been imported, including those of our two key suppliers: Filshill and Costcutter. The RDP system should save us hours, if not days, of work every month as it automatically imports all promotions and all updated price files, including for news and magazines. Because of the integration issues we had through using more than one wholesaler, we could never do

SLR | MARCH 2017

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this before and had to manually import all promotional items every three weeks. A painstaking and time-consuming task that was prone to human error. The new system will be live by the time this issue of SLR hits the streets so we’re looking forward to an efficient, time-saving system.

As part of this process we will have to migrate all of our 150 or so Woodlands Local Rewards Club members onto the new system, complete with new key fobs. This again is another complex task but the Rewards Club is vitally important to the business so we are approaching it full of enthusiasm and energy. We are intending to use the introduction of the new ePos system as an opportunity to do some heavyweight work around Rewards Club recruitment and have a programme of activity social media, in-store and leaﬂetting to promote the Club. We can obviously also communicate with existing members through Darius for Retail itself. Expect to see an up-weighted programme of activity through the Rewards Club over the next few months as we seek to deliver great value to members, and drive sales and footfall in the store. We have already agreed some high value activity for members with major brand like Coca-Cola and Wrigley which will roll out very soon.

MEDIA SCREEN MOVE Another important development in the pipeline is the introduction of a new media screen in the main window of the store provided by Hi Street Digital Media. The screen will advertise products and promotions from major brands in the store, as well as symbol-group specific activity. In trials the screens have been proven to significantly drive sales of promoted products, so we’re excited to see how that plays out in Woodlands. We expect the screen to be installed by the www.slrmag.co.uk

06/03/2017 16:39:41

Monthly Update | Woodlands Local

Inside Business

time the next issue of SLR comes out – so watch this space.

NPD TIME With customers always keen on new products, we’re also trialling some new lines from major manufacturers at the moment. We’ve just kicked off a three-month trial with Diageo on their new range of £1.50 price marked premix RTD cans. The 6-strong range includes Gordon’s, Smirnoff and Captain Morgan’s lines and we’ve double faced all of the products in the chiller to give them a chance to perform. We already sell a decent volume of a smaller range of these lines, but that’s at over £2 a can. We are very hopeful that the new £1.50 PMPs will see sales given a major boost. Again, we will report back on this trial over the next couple of months so here’s hoping we see some good uplifts. As SLR went to press we were also conducting some in-store sampling work to let our customers trial some new lines that might excite them. First up we have new Drench in cans, which we expect to sell well. Drench sells solidly in the store so we won’t be surprised if the sampling sessions lead to some sales increases for the brand. Once that’s done we will be sampling new

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Pepsi Max Ginger, a completely new and very interesting line. I can’t recall a ginger ﬂavoured cola in the past so I am curious to see how our customers take to the product. We will be sampling it to let as many customers as possible try this new taste sensation.

ROOF WOES Regular readers will not be surprised to hear that our roof problems continue. Despite two previous repairs to the roof, the leaks have once again returned. It’s a ﬂat roof so we are always going to have problems but we really need to find a solution that works. So far we’ve had quotes up to £7.5k for the repair. Not an investment we’re keen to make, but we have to find a solution somehow.

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MARCH 2017 | SLR

06/03/2017 16:39:42

Inside Business

Woodlands Local | Diageo RTD Trial

In-store trial: Diageo RTD PMP cans

Woodlands Local is taking a fresh look at its RTD offering this month with the launch of a trial of Diageo’s new range of price marked cans.

WOODLANDSlocal

BY ANTONY BEGLEY

TDs have long been an important category in Woodlands Local, particularly at the premium premix end of the market where we have been successful at building solid repeat sales through products like Gordon’s Gin & Tonic and Smirnoff & Cola. We have sold these products at well over £2 per can so the launch of a new range of £1.50 price marked cans from Diageo across six of its key RTD lines seemed an opportunity too good to pass up. Premix is in fact the only RTD category in growth and it is estimated that the premix opportunity is worth around £760 per year per customer to retailers. There’s little doubt that the move to price-marked packs will help drive sales in-store, given that reassurance of value that price-marked packs deliver. CTP figures also show that sales of price marked packs are typically 50% higher than plain pack.The fact that the price mark is considerably lower than the previous RSP will also be an important factor in growing sales. To put our theory to the test, we are working with Diageo to run a three month trial on its new range of 250ml £1.50PM products. This range includes: Q Gordon’s & Tonic Q Gordon’s & Slimline Tonic Q Smirnoff & Cola Q Smirnoff & Diet Cola Q Captain Morgan’s & Cola Q Smirnoff & Cranberry

We will also be supporting the trial by featuring the lines in our next customer leaﬂet and by driving awareness through posts on our Facebook page. Dedicated shelftalkers will also be created and our staff have been trained to understand the key benefits of the products and to be able to upsell and encourage relevant shoppers to try the products. Look out in the next issue of SLR to see how the trial is going and how our shoppers are responding.

We are following Diageo’s best practice guidelines for siting and merchandising the products, which includes stocking the lines in the chiller as the vast majority of RTD premix products are purchased to be consumed immediately. Consequently, we have sited the products as follows: 3 In the chiller 3 Prominently, just below eye level 3 Alongside out other RTD products and ﬂavoured ciders 3 Increased space for the range: double facings for all 6 lines 3 Sited near our big night in ambient fixture

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which has large format crisps, nuts, confectionery & soft drinks

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Hi Street Digital Signage Trial | Woodlands Local

Inside Business

SIGNAGE SOLUTION TAILOR-MADE FOR LOCAL RETAILING

Our latest tech-based project at Woodlands will see us install an in-store high resolution digital media screen, enhancing the look of the store and driving sales and footfall. BY ANTONY BEGLEY

s regular readers of these pages will know, we’re always keen at Woodlands Local to trial great new ideas and concepts, particularly those that help enhance the look and feel of the store. The latest neat idea to catch our eye is a high-quality media screen solution from Hi Street Digital Media, a relatively new company in convenience retailing. The concept is in essence deceptively simple: high definition digital media screens are fitted to an outward-facing window of the store free of charge to the retailer and feature a range of ads from major brands as well as providing space for symbol group-specific promotions. One of the most attractive qualities of the solution is that it has been brought to market by a team who first and foremost understand local retailing – and have then created a tech solution to suit their aims. This isn’t true of many digital and tech solutions which can often be created by companies who may be very technically gifted, but who have very little understanding of the intricacies of retailing. Led by Non Executive Chairman Mark Craze, former CEO of global media and marketing giant Havas Media, the senior team at Hi Street also includes former Group Commercial Director for The Grocer Jonathan Daniels – a man who knows the convenience and grocery retail marketplace better than most. For us, this is a quick-win solution as it will instantly help enhance the appearance of the store and will help drive sales of key brands. Tests carried out in pilot stores by Hi Street have delivered very encouraging results: the screens have increased sales of promoted

products by an average of 15.3%, whilst increasing footfall and basket size by 4.3% and 6.8% respectively. The question we are very keen to answer in our little corner of Falkirk is, will the solution have the same impact for us? Managing Partner Sales & Marketing Jonathan Daniels is confident it will, saying: “Our solution provides convenience retailers and FMCG brands with a unique opportunity to target shoppers at the vital moment of decision making prior to purchase. Our trials have shown clearly that the solution works and we are entirely confident that it will deliver for Woodlands Local too.” With a contacts book like Daniels, it’s no surprise that many of the world’s biggest brands are already on board with many more keen to utilise the medium to engage with convenience shoppers and increase sales through the convenience channel. The beauty of the system is that it is tailored for each store and only carries content on products that are available in the store. It will also allow us at Woodlands to run our own content and promotions. So far, a site visit has been carried out by Hi Street and, with very little required of the store other than a space in the window, an internet connection and a power supply, we should be up and running in the very near future. “I’m really looking forward to seeing the screen deliver for the store and its customers,” says Daniels. “We’ve had huge interest in our unique offering and we’re in the middle of a lot of installation in Scotland and across the UK.” Look out in the next issue of SLR for an update on progress.

15.3% Increase in sales of promoted products during campaign

“I’m really looking forward to seeing our screen deliver for the store, its customers and the brands.” JONATHAN DANIELS, MANAGING PARTNER SALES & MARKETING

www.histreetdigital.com www.slrmag.co.uk

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Hotlines

Product News & Media Watch

Doritos Heatburst Pepsico Doritos has launched new Doritos Heatburst: a dual-flavoured tortilla chip available in BBQ and Chipotle Cream varieties, which contain mini chilli capsules which burst when crunched. The £1 PMP product is supported by a high profile TV and digital advertising campaign.

Walkers re-seals the deal

Heinz no added sugar Beanz Kraft Heinz Introducing a new recipe to its iconic portfolio, Kraft Heinz has launched Heinz No Added Sugar Beanz, offering families an alternative reduced sugar choice. As well as xontaining no artificial sweeteners, colours or flavours, refreshed packaging will also be rolled out across 415g cans and 4 x 200g snap pots. The launch is supported by a digital marketing campaign.

McCoy’s Chips KP Snacks Ridged-crips brand McCoy’s has launched new offering, McCoy’s Chips, a crinkle cut chip that brings a full-on chip shop experience. Available now to convenience and impulse retailers, the new range comes in 70g £1 PMPs in Salt & Vinegar and Curry flavours. KP snacks has pledged a jam-packed year of promotions and campaigns to support the McCoy’s brand.

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Walkers has launched a new re-sealable 175g Sharing Pack, plus an on-pack promotion as part of its UEFA Champions League (UCL) sponsorship. The Sharing Pack is available in the four best-selling Walkers core flavours: Ready Salted, Cheese & Onion, Salt & Vinegar and Prawn Cocktail. The launch is supported by an eight-week television campaign. Its coincides with the ‘Snap & Share’ promotion, where shoppers can win UCL-related prizes, including match tickets, PS4 consoles and Pro Evolution Soccer games, as well as official UCL adidas footballs. The promotion runs until late April across key Walkers SKUs including Tear ‘n’ Share, Grab Bags, and

McVitie’s Digestive Thins United Biscuits UK biscuiteer McVitie’s has unleashed its biggest NPD for 2017 with the launch of new McVitie’s Digestives Thins which the brand describes as a thin and light biscuit with a delicate crisp, that lets you enjoy the taste of McVitie’s Digestives biscuits in a modern and more refined way. Thins are available in Milk Chocolate, Milk Chocolate and Cappuccino and Dark Chocolate 180g variants and carry a £1.79 RRP.

the new Sharing Packs. John Savage, UK brand manager at Walkers Crisps at PepsiCo, commented: “Watching a football match with friends or family is an ideal occasion for sharing snacks, so the UEFA Champions League is the perfect match for the launch of our re-sealable Sharing Packs. The football-themed ‘Snap & Share’ on-pack promotion was designed to appeal to fans who love the social occasion around the UCL. Featuring on brightly coloured promotional packs that will have unprecedented stand-out on shelf, shoppers will find it hard to miss. The new range carries an RRP of £1.50.

Mini Babybel Comic Relief The Bel Group In the spirit of Red Nose Day (24 March) Babybel has launched its limited-edition Comic Relief donation packs into stores across the UK. Each individual pack of Mini Babybel will donate 10p to Comic Relief and over the past 10 years Bel has donated almost £1 million to this great cause.

Monster Energy Citron Ultra CCEP Helping retailers build on the success of the sugar-free Monster Energy Ultra range amid growing demand for lighter options, Coca-Cola European Partners has launched a new Monster Citron variant. Packaged in a yellow 500ml can, the latest addition to the Monster range carries an RRP of £1.39 for plain packs. It is also available in a £1.19 PMP format.

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Product News & Media Watch Orangina Lucozade Ribena Suntory Set to meet the growing demands for PMP, Orangina has announced that it will be launching its first ever price marked pack with a 420ml bottle priced at £1. The launch will be supported with in-store POS available to independent retailers and wholesalers, including shelf barkers, strippers and posters to draw attention to the new pack.

Cadbury Oreo Mint and Peanut Butter Mondelez International Cadbury Dairy Milk has launched two new Cadbury Dairy Milk Oreo variants. The two new bars (RRP £1.49) have a flavoured cream filling in two popular flavours – Mint and Peanut Butter – with added chunks of Oreo cookie, covered in Cadbury Dairy Milk chocolate. The launch is supported by a £3m marketing investment including OOH, PR and digital support.

MEDIAwatch

Hotlines



Planters peanuts on parade Following its full launch into the UK grocery and convenience channel in July 2016, Planters is set to air its first ever UK multi media campaign. The £2.5m media investment is led by a 30-second ad featuring Mr Peanut parading with a number of other fruit and nut characters, and a catchy tune to showcase the brand’s ‘fun loving personality’.

Haribo bags happiness Starburst Very Berry Wrigley

Market Deli pack redesign PepsiCo

Very Berry is the latest variant to join the Starburst Portfolio. Available in four flavours – Strawberry, Raspberry, Blueberry and Cranberry – Starburst Very Berry is available in single (45g RRP 49p), hanging bag (150g PMP £1) and sharing pouch (192g RRP £1.30) formats.

Market Deli has introduced a new pack design to emphasise its quality credentials and highlight that the crisps are made with authentic deli ingredients. The distinctive new packaging rolls out across all variants, including Mediterranean Balsamic Vinegar, Cornish Mature Cheddar and Anglesey Sea Salt. Singles and sharing bags come in at RRPs of 83p and £2 respectively.

Haribo is back on TV, kick starting a year-long advertising campaign with ‘little bags of happy!’ in support of the Starmix multipack. The creative shows a mum treating her children to a mini bag each of Haribo Starmix, whilst the loud-speaker announcer describes them as “little bags of happy” in the brand’s signature kid’s voice.

Butterkist shares the love Following a relaunch to its pack design, popcorn brand Butterkist launches a new TV campaign which goes live from 6 March. Central to the ad is a big bowl of Butterkist, that helps friends and family connect, acting as a catalyst for bringing people together. The campaign features the strapline ‘Butterkist makes the sharing moment’.

Comfort comes to life Haribo Easter Haribo

Cadbury Tarts Premier Foods

Haribo has launched a line-up of seasonal treats ready for Easter hunting, sharing and gifting. Included in the range are the Chick ‘n’ Mix gift box, Springtime Friends, Jelly Bunnies and Fizzy Farm Animals sharing bags. The seasonal packs will sit alongside the brand’s all yearround favourites this Easter.

Available now, Premier Foods has launched a range of Choc Tarts into the market under the Cadbury Cakes brand ahead of the Easter period. The range comprises of three popular Cadbury flavours: Crunchie, Flake and Caramel, in addition to Mini Egg Choc Tarts. The range carries an rrp of £1.99 and will is being supported with in-store activation, sampling and a social media campaign.

On screens now, fabric conditioner brand Comfort has launched a new TV campaign. Backed by a substantial £5m marketing investment, the ‘Secret Life of Clothes’ advert features a woman leaving her clothes at the end of her bed after a night out, and as she leaves the room, the items take on human-like personas.

Believe in Belvita Breakfast The breakfast biscuit brand has created two new 10-second TV ads as part of a £4m campaign which explores how eating breakfast can impact our mornings and aims to demonstrate how contagious a good morning can be. The advert was captured on a commuter train on the morning of January 16, said to be the most depressing day of the year.

For all the latest product news, head to www.slrmag.co.uk/category/product-news/ www.slrmag.co.uk

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Feature

Must Stocks

GIVE THEM WHAT THEY WANT Monitoring trends and knowing your customers shopping habits is key when it comes to choosing what products to stock, but certain brands and products remain absolute necessities, regardless of your store’s customer profile or location. BY IAIN HOEY

y their nature, convenience stores have less ﬂoor space to stock marginal lines than larger channels. That, though, is a major strength of the c-store channel — giving the customer the ability to find exactly what they are looking for quickly and with complete confidence. The challenge for the retailer is to make sure that their stock reﬂects the needs of their customers. The fundamentals are, however, generally the same: always provide availability of core lines, offer a wide variety, create in store theatre, and pay attention to trends. Retailers need to keep a close eye on trends and customer preferences unique to their stores to maximise the return on space available.

KEEPING TRACK OF TRENDS Knowing your customers and their shopping habits is imperative when it comes to making sure shelves are stocked appropriately and creating customer loyalty. Richard Gardner, National Account Manager at McEwans stresses that retailers should listen to their local shoppers in order to maintain this relationship. “Scottish based retailers will know all too well that their regular customers have their favourite beers, for example. Speak to your customers and find out what beers they might be interested in you adding to your shelves. After all, they’re the ones who will choose to shop elsewhere if you don’t give them what they want.” Gardner also encourages retailers to look at the ever growing pool of data. “To attract more customers you need to keep an eye on changing trends. Manufacturers will research trends and customers’ behaviour, so ask to see any data that gives you better insight into stocking their products. McEwan’s IPA, for example, is a direct response to the changing tastes of younger drinkers and has proved to 52

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WRIGLEY’S FIVE SIMPLE STEPS TO HELP SUCCESSFULLY MANAGE SALES Q Availability is key – remember to re-stock each morning and prior to peak traffic times Q Stock the best-sellers Q Champion new products Q Multiple sitings – to drive additional purchases and ultimately maximise sales Q Offer a wide choice of pack formats and flavours to meet different consumer demands www.slrmag.co.uk

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Feature

Must Stocks

be very popular across Scotland. A famous, heritage brand with a modern beer loved by lager and ale drinkers alike – surely that’s a must stock.” As brands carry out continual innovation it can be difficult to keep up with all the latest trends – not to mention the risk that comes with stocking an unknown entity. Gardner urges retailers to keep a good relationship with sales reps to know how products are selling across the board because if it’s selling well elsewhere then it is worth considering. All a new product might need is a little in store theatre to push local consumer awareness, and so retailers should take advantage of any POS materials on offer. “If a product is doing well, if it’s regularly in the top spot in its category then you need to know so you can capitalise upon it,” Gardner says. “Don’t be frightened to choose a new product over another if it’s not doing as well as you’d hoped. Ask your sales rep for POS packs too to help promote the products on your shelves, not only will this make your shop more inviting but it’ll certainly give the customer a chance to try something new, or keep in mind that when it comes to ‘must haves’ they need not go anywhere else.” Amy Burgess, Trade Communications Manager at Coca-Cola European Partners advises retailers to take advantage of special occasions such as Valentines Day and Easter with special dispalys to encourage shoppers to stock up for the event. “Where space is available, secondary sighting is a great way to help boost sales in-store,” she says. “Once the main display has been utilised, retailers could benefit from showcasing products in other areas, such as close to the entrance of the store, aisle ends or adjacent to the till queuing lane to help attract shoppers’ attention and prompt purchase.”

AG BARR MUST STOCKS Q Irn-Bru continues to be the number one Scottish grocery brand Q The Barr Family range is the Scotland’s biggest range of flavours Q Rubicon is the UK’s top Exotic Juice Drink brand Q Strathmore is a quality trusted quality water brand growing at 22% in Scotland Q Rockstar is Scotland’s favourite big can flavoured energy brand Q Snapple has built a loyal following in Scotland with sales up by +53% year-onyear

TRIAL AND ERROR Retailers will already know what brands to stock, but with so many widening their portfolio with new permanent and limited edition lines, and a limited amount of shelf space, it can be a tricky thing to get right. SLR provides monthly guides to the best and newest products available to the convenience sector, but every store is different and retailers will know what their customers want. For some categories, it can be a case off too much choice, but all it takes a little trial and error. Take gum for instance. Wrigley are constantly working on new products, and with gum positioned generally near the till point, it is a predominantly impulse driven category with 62% of single gum packs being unplanned purchases (AGS Research). There are so many ﬂavours and varieties that monitoring what sells is imperative – it might sound obvious to say, but if it isn’t selling, don’t stock it. New Wrigleys products, formats and ﬂavours are constantly popping up such as Cool Breeze Bottles, Extra white, in-car gum holders, PMPs, hanging bags and beyond. Retailers should continuously monitor what products are popular with their shoppers and keep these lines well stocked on their shelves.

IS STORE THEATRE IMPORTANT TO THE ‘MUST STOCK’ CONCEPT? “Absolutely. So long as it’s is within the confines of licencing rules, you need to grab your customer’s eye and show them that not only are you stocking their ‘must haves’ but also other items that they may need too. Keep your shelves well stocked, products facing forward, make sure promotions are in prime position and tell your customers about what you’ve got on offer too. Consider taking your ‘must have’ store theatre online too. If you’ve got a Facebook page, then post images of the things that people are most likely to need and consider ‘must haves’ at certain times of year. Sporting tournaments are a great way to promote your beer selections. A simple post pointing to a Six Nations Rugby deal, for example, will get people through your door.” RICHARD GARDNER, NATIONAL ACCOUNT MANAGER AT MCEWAN’S

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MCEWANS.CO.UK

scotland’s sold on them. McEwan’s brews not just one, but two of the best-selling ales in Scotland. Champion is the country’s favourite premium bottled ale and Export is the nation’s most popular canned ale.*

so don’t think twice about calling 0131 339 3300 to stock up now.

*Source: IRI, MAT to 31st December 2016, Single unit value sales.

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Feature

Confectionery

KEEPING CUSTOMERS SWEET With shifting consumer shopping patterns and increasingly health-conscious shoppers, staying on top of the confectionery category can be a tricky business. SLR is here to help. BY IAIN HOEY

he in-store customer magnet that is such as dumpbins and counter units. the confectionery aisle is undeniably New products are always frontrunners in the evolving in the face of an increasing category and retailers should take advantage Q Focus on the bestselling lines. trend towards healthier living, with of available POS to drive awareness of the Q Have a range that covers all need states: Kantar research indicating that latest innovations. A popular confectionery self-eat, sharing and gifting confectionery. 92% of consumers are actively trying to trend is blending, which is the combining of Q Place best sellers in the central point of reduce their sugar intake. This may mean brand favourites to create exciting new tastes vision. size reduction and recipe reformulation for and textures. Cadbury has returned consumer Q Use manufacturers’ point of sale material. many shelf staples, but the brands are all attention to its tablets range with the launch Q Make the most of brand investment by doing their utmost to make sure sales in the of two new Cadbury Dairy Milk Oreo variants: having displays in store when consumers category stays strong. Mint and Peanut Butter (RRP £1.49). Each will be most aware of products as a result “Confectionery is the number one snack flavour is added to the creamy, Oreo-filled of advertising or media investment. and the most impulsive category available centre and covered in Cadbury Dairy Milk Q Don’t forget the basics: keep fully stocked to convenience stores,” says Susan Nash, chocolate. and keep the display tidy. Trade Communications Manager at “Some consumers are looking for Q Group products with similar attributes Mondelez International. “This excitement. Tempting innovations adjacent to each other (e.g. ‘containing scale and impulsivity means that delight them are key to nuts’). that confectionery is a critically driving sales,” says Nash. “The important category in your most exciting new products shoppers who pick up store and if its potential is fully in confectionery have been all unintended items from an maximised, it can play a huge about blowing apart category aisle end role in driving incremental sales.” boundaries and bringing First and foremost, retailers together different flavours, should focus on getting the main textures and brands, which drive new confectionery display merchandised neatly consumers to the category.” with strong availability of core lines. Multifacing and multi-siting key lines can help PMPS entice shoppers into making impulse According to him! research, more than two purchases, especially when in prime locations thirds of shoppers buy PMPs in convenience such as at eye level placement, alongside stores, seeing the on pack flash as an savoury snacks, and using all available POS indication of good value, with half of shoppers saying they feel reassured that they are not being overcharged. SKITTLES FRUITS AND SOURS Wrigley recently unveiled new Skittles Fruits and Sours – a mixture of Strawberry, Blackcurrant and The Big Yellow Bag has recently given its Lime flavours from Skittles Fruits; along with Sour Pineapple, Sour Raspberry and Sour Mandarin recognisable hanging bags a fresh new look. from Skittles Crazy Sours. The PMP £1 yellow packaging has a refreshed The new combination is available in singles (55g), hanging bags (125g) and sharing pouches logo and film as well as new additions to its (174g). Pricemarked pack versions of the 55g (49p RSP) and 125g (£1 RSP) bags are also extensive range of more than 65 varieties, available. including chocolate eclairs, crystallised pear To coincide with the launch, the brand returned to TV screens with its rainbow-eating giraffe drops and chocolate dipped fudge. advert with the strap line ‘Discover the Rainbow, Taste the Rainbow’. The ad is running for 26 weeks Following the successful launch in 2015 and forms part of the brand’s multi-million-pound investment for 2017, of £1 PMP hanging bags, in summer 2016 which is also being supported with bespoke digital activity across Wrigley launched a new range of 49p social media platforms, and in-depot with dedicated POS material. PMP across its best-selling Skittles (55g) and Starburst (45g) singles formats. The PMP’s are designed to help retailers in the

TOP CONFECTIONERY TIPS FROM MONDELEZ

37%

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Feature

Confectionery

convenience channel drive confectionery sales by offering consumers top performing sugar confectionery brands at an attractive price.

to Claire Caley, Seasonal Brand Manager at Haribo UK, urging retailers to create a wide offering for the occasion. “Sweets also have an important role to play, adding much-needed variety into the seasonal A SPECIAL OCCASION aisle through pack With Christmas and sizes, flavours, textures Valentines having just and fun,” she says. passed, and with Red “With sales of total Nose Day this month Easter confectionery and Easter just around worth over £338m, the corner, excitementthe seasonal aisle is a key driving events are seemingly destination for shoppers.” always on the horizon, and Promoting old classics so making sure popular as much as new flavours value of the UK seasonal offerings are well keeps confectionery sales confectionery market stocked is imperative for ticking over, with Mars hoping creating excitement in c-stores. to see a spike in conjunction Following a successful 2016 Easter to its Malteasers on pack Red Nose season, which saw Cadbury Creme Egg (RRP Day promotion. The brand is calling for 58p) achieve a 5.1% uplift in sales of the the nation’s support to raise £1m this Red gooey favourite, the chocolate egg continues Nose Day (March 24) as it launches its new to prove itself a confectionery must stock. campaign, which encourages consumers Their popularity combined with their small to #bakeamillion for Comic Relief. Mars size and seasonal availability make them the Chocolate’s range of Malteasers singles and perfect fit for POS placement to encourage pouches, and Malteasers Teasers single bars impulse buying. are all flashed with “You Bake, We Donate And it’s not just all about chocolate when £1million”. it comes to Easter confectionery, according

£5.5bn

REDUCED SUGAR

STARBURST VERY BERRY Wrigley has added a new variant to its Starburst portfolio: Starburst Very Berry. The chew is offered in four flavours: Strawberry, Raspberry, Blueberry and Cranberry. Single (45g), hanging bag (150g) and sharing pouch (192g) formats are available including 49p and £1 PMP options. A wide range of POS material is available to retailers looking to support the launch, whilst Wrigley’s dedicated field force is on hand to share merchandising advice. Hundreds of cash and carry depots are being supported by off-shelf cardboard activation to encourage product trials in store.

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Data from IRI market research values the UK confectionery market at worth over £5.5bn. Whilst the supermarkets are openly shunning sugary snacks at POS in favour of healthier options such as fruit and nut mixes, c-stores continue their quiet rebellion against the media’s demonization of sugar. And as littleand-often shopping rises, many shoppers are increasing the frequency of their top-up shop, in turn creating more opportunities to target the impulse buyer. In the face of reduced bar sizes and price hiking, new healthier, reduced sugar and sugar free options are springing up from many major brands, including sugar free Trebor Mighties, and Fruittella 30% Less Sugar. The latter, which is available in strawberry and summer fruits variants, saw positive response to during testing with consumers saying they taste just as great but make them feel a little bit better about indulging. “Keeping up with latest knowledge and understanding on how the shopper shops and what the consumer is looking for is important if retailers are to make the very most of the opportunities the confectionery category can create,” Nash concludes. “There are also fundamental merchandising principles that retailers are advised to follow, such as stocking the bestsellers, keeping shelves fully stocked, and pricing products clearly. Success is about making confectionery easy to shop

WIN WITH CRÈME EGG Cadbury launched its first new creative campaign for the seasonal favourite in four years: It’s Creme Egg Hunting Season. The brand is giving retailers another chance to win in the lead up to the spring season with its ‘Take a Shelfie’ competition. For the chance to win up to £250 in Love2Shop vouchers, all retailers simply need to do is upload a photo of their Gooless Cadbury Creme Egg display before 31st March 2017 on www. deliciousdisplay.co.uk, to be entered into the prize draw.

in your store.”

WRIGLEY’S CONFECTIONERY MERCHANDISING TIPS Q Visibility is key in such an impulsive category so popular confectionery items should be located just below eye level, at ‘buy level’, to take advantage of incremental sales. Q Availability is crucial – remember to restock each morning and prior to peak traffic times. A fully stocked display will help maximise your profit potential and guarantee repeat visits from customers. Q Ensure shoppers are aware of the choice and range on offer by keeping a clear and tidy confectionery display and merchandising by format and subcategory. Q Rotate stock regularly so that older stock is sold through first. Q Champion new products in store to raise sales and capitalise on early consumer demand. Q Use eye-catching POS materials to draw attention to your confectionery display encouraging customers to buy on impulse.

90%

of retailers say that an easy to follow layout is important

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Feature

RTDs

AS READY AS THEY’VE EVER BEEN As at home consumption rises, SLR speaks to industry experts on what ready to drink offers are essential and on the rise in the Off-Trade sector. BY IAIN HOEY

raditional RTDs continue to be must-stocks for licensed retailers, generating £27.4m worth of sales for Scotland’s retailers (Nielsen data), and developments in ﬂavours and formats have helped maintain an interest in the sector. The alcohol shelves have seen notable growth of pre-mix cans and bottles of spirits and mixer, and frozen ready-made drinks. The latter is a surprise hit, accounting for big seasonal sales and proving that the category is dynamic and moving with the times. A key demographic for RTDs are 18-24 year olds, according to SHS Drink’s research, which WKD sees as an opportunity to attract a new generation of customers, aiming to attract one million new drinkers and generate £38m of incremental sales in the category. The brand plans to drive these sales with a reinvented packaging which will be seen on Original Blue WKD, WKD Iron Brew, new WKD Berry and WKD Passion Fruit, which are all available to c-stores. The 18-24 year olds are also the most impulsive, according to the research, which is down to the ability to plan a social gathering at the touch of a button, which makes c-stores a missionshopping destination for lastminute alcohol purchases. Value for money is a key sales driver in every category and RTDs are no different, with pricemarked packaging signposting this for consumers. “PMPs have been one of the major growth areas within the RTD category in the impulse sector in Scotland – sales of PMPs increased around 40% both in volume and in value in 2016, and the growth is likely to continue this year,” says Amanda Grabham, Head of Brand Marketing – Alcohol at SHS drinks. 60

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SHS shows that a large proportion of RTD drinkers drink with friends for a night in on average once a week, with most being consumed on Friday and Saturday evenings, and so Grabham urges retailers to make sure there is plenty of stock in the chillers for these peak occasions.

MIX IT UP FOR SUMMER “We’re definitely seeing a continuing trend for pre-mixed drinks,” says Claire Kendall, Senior Customer Category Development Manager at Diageo, highlighting its growth of 14%, higher than beer, wine and cider in the impulse category. With summer on the horizon the trend looks to continue with launch by Diageo of a full range of six £1.50 price-marked RTD cans across the Gordon’s, Smirnoff and Captain Morgan brands. Recent research has shown that pricemarked pack sales are 50% ahead of plain pack, so retailers should stock up now to cash in. Kendall emphasises the importance of keeping the lines cool. “Over 50% of alcohol purchased in a convenience store is for consumption on the same day, so conveniently packaged products are perfectly suited, particularly when stocked in the chilled area.” Diageo’s bestselling RTDs are, Gordon’s gin and tonic, Pimm’s & Lemonade and Captain Morgan & Cola. Some 90% of RTDs are consumed within two hours of purchase, so maintaining good stocks of chilled product is critical. Retailers should focus on stocking top sellers, but where the space is available Kendall recommends that stores should increase their range, but also keep ahead of trends by trialling new products, which delivered £5m to the market in the past year (Nielsen data).

FAST FACTS FROM DIAGEO (Data from Nielsen Scantrack to September 2016) Q Pre-mix is currently the only RTD category in growth, seeing a 14.4% increase year on year Q The total RTD category is currently in slight decline at -0.5% Q Pre-mix is growing faster than beer, wine and cider in impulse Q There is a £760 per year pre-mix opportunity per convenience outlet Q Half of customers prefer ‘Single Price Promotion’ on alcohol in convenience stores Q 16% of shoppers are more likely to buy premix is it has a PMP

SHS DRINKS’ TIPS FOR MERCHANDISING RTDS 1) Make the display clear and easy for shoppers to navigate by arranging together by brand and flavour 2) Stock a mix of pack formats for different occasions 3) Have plenty of chilled stock available 4) Review range regularly using EPOS data to identify slow sellers 5) Give more space to traditional bottled RTDs during key calendar events 6) Position RTDs adjacent to fruit ciders

TOP 7 BRANDS IN SCOTLAND (Percentage of market) 1) WKD (20%) 2) Dragon Soup (12%) 3) Smirnoff Ice (9%) 4) Jack Daniel’s & Cola (5%) 5) Crabbie’s Ginger Beer (5%) 6) Gordon’s Gin & Tonic (4%) 7) Gordon’s Diet Gin & Tonic (4%)

www.slrmag.co.uk

06/03/2017 16:40:07

STOCK UP

NOW

n Now i

£1.5P0s PM

Tap into a £760 per year premix opportunity1 with best-selling spirit brands Sales of PMP products are 50% greater than plain packs2 Stocking in the fridge can increase rate of sale by up to 120%3 Premix is the only RTD category in growth4 Please drink responsibly. 1: Based on stocking Diageo 6 SKUs, HIM! 2015, Nielsen Scantrack to Sept 16. 2: HIM! CTP 2016. 3: Nielsen Scantrack to Sep 16. 4: +14.4% value growth MAT.

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UTC

CRANK UP THE CAFFEINE

See who can sook the hardest… UTC’s not much of a burger fan at the best of times – he’s more of a Gregg’s steak slice man at heart – but that didn’t stop one of his considerate workmates at SLR Towers presenting with what they thought was a lovely wee pressie last month to help liven up Valentine’s Day for him and Mrs UTC. While the auld yin was adamant that his Valentine’s Day was in no need of livening up, he grudgingly accepted the gift, which turned out to be a Burger King cup. But not just any old Burger King cup. No siree. It was a special Valentine’s Cup with two straws so that UTC and his dearly beloved could stare longingly into each other’s eyes as they shared a soft drink of their choice. Needless to say, the auld boy wasn’t impressed, saying there was “nae chance” he was going to “share slebbers with her indoors”. And anyway, he’d already bought her his customary Valentine’s gift of a bottle of Cherry Lambrini and a Dairy Milk.

Despite Ross Kerr and the SGF Healthy Living Programme’s best efforts, UTC remains resolutely committed to a high fat, high sugar, high alcohol, high tobacco, high everything diet. He’s lasted the best part of century consuming what he likes and he’s not about to change now. You get the idea. So he was fair chuffed last month to hear about an unapologetically unfashionable product launch: extra high caffeine tea. Surrounded by colleagues drinking decaffeinated tea and strawberry & elderﬂower tea and mango & dandelion tea, the auld fella was delighted to see a return to old fashioned values. Tea you can stand your spoon up in. Apparently a company called Hi Tea enlisted the help of food scientists from Queen Margaret University to basically see how much caffeine they could cram into a cup of tea. Three times the level of a normal cup turned out to be the answer. Never having bought into the whole trendy coffee thing, UTC has braved the interweb to order a box online and will no doubt be seen swinging from the chandeliers some time soon.

ROBBING IS A BLAST

Something ﬁshy about that KitKat...

A keen-eyed reader kindly forwarded UTC a wee news story recently about how he had been in Japan and come across an exotic confectionery sensation: KitKat sushi. For reasons best known to the Japanese, the delicacy comes in three flavours: tuna sushi (actually tastes like raspberry), seaweed-wrapped sushi omelette (pumpkin pudding flavour) and sea urchin sushi (Hokkaido melon with mascarpone cheese). It would be impossible to describe the expression on UTC’s face as he listened to this story unfold. So we won’t bother.

SLR | MARCH 2017

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Earning a living as he does from the local retailing trade, UTC takes a morose satisfaction in hearing of robbers getting to spend some time at Her Majesty’s pleasure for their frankly appalling deeds. But he was astonished to discover while perusing his copy of The Sun that a gang in London were jailed for 30 years for using highly combustible oxy-acetylene gas to literally blow up ATMs outside Post Offices and banks. Debris was often found 40 metres away as the gangs pumped the gas into the ATM then blew it up with an electric charge. Stupidity knows no bounds in the criminal mind. www.slrmag.co.uk

06/03/2017 16:40:07

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NEW zero SUGAR GREAT COKE TASTE THE FASTEST GROWING TOP FIVE COLA BRAND* £4.5M MARKETING SPEND STOCK UP NOW To find out more contact us at connect@ccep.com or call our Customer Hub on 0808 1 000 000 *AC Nielsen Total Market: MAT w/e 24.12.16. ©2017 The Coca-Cola Company. All rights reserved. COCA-COLA, COCA-COLA ZERO, TASTE THE FEELING and the CONTOUR BOTTLE are registered trademarks of The Coca-Cola Company.

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