SLR August 2017

JAMES LOWMAN

DRS the ‘wrong way to go’

AUGUST 2017 | ISSUE 172

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McCOLL’S DEAL ROCKS THE INDUSTRY

Sole-supplier deal with Morrisons set to reverberate around the wholesale industry

SALEEM TAKES THE TABLETS

SLR Reward winner collects tech prize

PRICE-MARKED EXPERIMENT

Woodlands Local runs price-mark test

CATMAN FOR 2017

Your guide to modern category management

Win a REAL diamond worth £1,000 with Diamond White & SLR! p25

August 2017

Contents

Contents ISSUE 167

NEWS p4

p5

p6

p8

p10

p18 p20 p22

HMRC u-turn on digital tax filing welcomed HMRC’s decision to abandon a new digital tax filing system for small businesses is welcome news.

McColl’s sole supplier deal with Morrisons C-store and newsagent chain McColl’s strikes a groundbreaking supplier deal with Morrisons supermarket.

Wholesalers back kerbside recycling over DRS The SWA has reaffirmed its opposition to a Deposit Return Scheme for Scotland.

PayPoint ATM ‘eliminates banking charges’ New data shows PayPoint’s ATM has completely eradicated banking charges for over 2,000 retailers.

News Extra Credit and debit card surcharges Levying surcharges for credit and debit card payments outlawed from 2018.

Product News Walkers puts core flavours in jeopardy as new campaign asks public to ‘Choose me or lose me’.

Off-Trade Heineken celebrates five years of its awardwinning Star Retailer scheme with a website revamp.

Newstrade More trouble for Johnston Press as it plans to make ‘significant’ editorial staff cuts.

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INSIDE BUSINESS p24 Research Digest A round-up of the latest facts and figures most relevant to the Scottish local retail industry. p26 Opinion James Lowman ACS Chief Executive says the proposed Deposit Return Scheme would be ineffective. p28 SLR Rewards 2017 Crisps and Snacks winner Saleem Sadiq was rewarded with five Asus tablets, which he plans to use in the launch of a new Spar Renfrew loyalty scheme. p30 Woodlands Local Work starts on a procedures and processes overhaul as we future-proof the business. p34 Hotlines A selection of the some of the latest products to consider stocking. p62 Under The Counter The Auld Yin pops up in Falkirk to witness an unusual excursion for the Queen.

FEATURES p36 Back to School As the summer holidays end, parents are looking to pack lunchboxes with healthier options. p38 Impulse Today’s ultra-competitive trading environment means unplanned purchases have never been more important for local retailers. p44 Category Management Your indispensible guide to category management in the modenr retailing era. p60 Carbonated Drinks It’s a sector that continues to perform, with low- and no-sugar options adding some extra fizz.

SPECIALS p25 Win a real cut diamond worth £1000 with SLR & Diamond White! www.slrmag.co.uk

ON THE COVER p14 What’s in store for Nisa and Palmer & Harvey as McColl’s signs sole supplier deal with Morrisson’s?

AUGUST 2017 | SLR

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News TAX RETURNS Lobbying activity helps benefit retailers

Primula lifts GroceryAid five-a-side cup More than 30 teams contested the recent annual GroceryAid five-a-side tournament, raising £20,000 for the industry charity in the process. This total is enough to send around 67 carers on a much-needed respite break during the summer months.

The final was contested by Primula Cheese and Dee Set, with the players showing their talent in a nail-biting match.

Congratulations to Primula, whose 2–0 win was enough to lift the Cup and earn a Fitbit for each player.

Nuts to nutrition Angela White has joined PepsiCo UK in the role of Commercial Senior Director – Nutrition. She will oversee the commercial performance of PepsiCo’s Nutrition portfolio which includes Tropicana, Naked and Quaker.

White joins from KP Snacks

HMRC u-turn over digital tax returns welcome news Small businesses including local retailers have been exempted from proposals for tax returns to be filed digitally four times a year. The government has also delayed its proposed implementation for larger firms.

The move follows a 2016 consultation process, during which the National Federation of Retail Newsagents (NFRN) called for the process to be voluntary, rather than mandatory, and only applicable to businesses with an income threshold above £85,000 – the current threshold for VAT – which is the current exemption.

In addition, the NFRN called for greater communication and guidance for small businesses, which could be less digitally able, along with additional support from

accountants and tax agents and from HMRC to make available software and training for small businesses.

Last month, the Treasury revealed exemptions to the proposals for the smallest businesses and delays to the timetable to allow more time for other companies to plan for the overhaul.

This follows widespread concern voiced about the initial timetable, with the House of Lords’ Economic Affairs Committee saying the previous timetable for implantation of making tax digital was “rushed” and that many small businesses were not ready to cope with the additional administrative and financial demands of digital taxation and quarterly reporting.

NFRN Chief Executive Paul Baxter commented: “Since the plans were

first outlined the NFRN and our members have been very vocal and at every opportunity we have put forward our concerns about the full impact digital returns could have for small independent retailers.

“We have always maintained that any such process should be voluntary rather than mandatory and only applicable to an income threshold above £85,000. We are pleased that the government has sat up, listened to our concerns and, much more importantly, taken note of them.

“For small independent retailers finding time to manage all the costs associated with their businesses is already time consuming and challenging and this would have been an added and unnecessary burden.”

where she was the Director for Retailer Brands and GM for Nuts, and returns to PepsiCo after eight years away.

Minimum pricing appeal begins at Supreme Court The UK’s highest court has begun hearing the latest appeal against minimum pricing for alcohol. The Scotch Whisky Association’s case against the measure is being assessed by the Supreme Court in London.

The policy was approved by MSPs at Holyrood in 2012, but has been tied up in a succession of court challenges amid claims it breaches European law.

2,500 products suffer ‘shrinkflation’ Over 2,500 products have shrunk in size over the past five years, but are being sold for the same price, according to new figures from the Office for National Statistics.

These include everything from dozens of confectionery bars and fresh juice products to toilet paper, coffee, sugar and jam, with at least part of the blame

FOOTFALL DRIVERS Premier cust cost of staples to drive footfall

Premier targets footfall with cut price staples Premier, the UK’s biggest symbol group, has lowered the wholesale price on bread, milk and sugar so Premier retailers can offer market leading, everyday low prices on these important convenience products.

Kingsmill 50/50 will be available for shoppers at just 79p, Wisemans Milk at 2 x 2 Litres for £2 and 1kg of Whitworths sugar is only 69p, which all deliver outstanding value and gives shoppers a reason to choose Premier stores, while still delivering a minimum of 20% POR for retailers.

These deals are exclusive to Premier retailers and form part of the group’s commitment to help drive footfall into stores. Bread, milk and sugar have been specifically selected as these are the top three products for sales and driving footfall in the convenience market. The deals are also being featured on the Premier promotional leaflet.

“Premier retailers have told us they need to drive more footfall into

their store and bread, milk and sugar are the most important products to achieve this,” said Martyn Parkinson, Brand Director – Premier. “As well as offering shoppers great value, it’s really important that we maintain our retailers margin and at 20% POR across the three deals, we are helping them make more cash profit as their rate of sale will increase. We are confident that incremental sales will go up too, as once shoppers are in store, they see the great choice, price and service delivered by Premier retailers.”

CRISP & SNACKS

KP buys Butterkist from Tangerine KP Snacks has purchased the Butterkist brand from retro sweet maker Tangerine Confectionery. Butterkist’s manufacturing site in Pontefract, West Yorkshire and its 140 employees will become part of KP’s business.

Mark Thorpe, CEO of KP Snacks, said: “Butterkist is an iconic brand with a 100-year heritage and the number one branded popcorn in the UK.” Tangerine will now focus on sugar confectionery, accelerating development of its Barratt, Dip Dab and Fruit Salad brands. CEO Anthony Francheterre said: “We are proud to have been instrumental in Butterkist’s development and pleased to pass the baton to KP Snacks to continue its success story.”

The companies will work to ensure a seamless transition.

being attributed to Brexit.

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News SUPPLIER AGREEMENTS New supermarket deal has implications for Nisa and P&H

McColl’s signs historic sole supplier deal with Morrisons

Best-one own label a hit

McColl’s has signed a supply deal with Morrisons which will see the supermarket chain become the sole wholesale supplier for the convenience retailer’s growing network of c-stores and newsagents.

A phased rollout starts in January 2018.

Nisa currently holds two contracts to supply McColl’s, one of which expires in June next year and one in June 2020. McColl’s was Nisa’s biggest customer, accounting for roughly 35% of its sales, and also a shareholder.

Sainsbury’s is currently looking to buy Nisa, and it is understood that McColl’s wanted the mult to improve its £130m offer. Nisa retailers have been told however that the Sainsbury’s proposal was

brand of +26% in value and

not conditional on Nisa retaining the McColl’s contract.

Commenting on the arrangement, McColl’s Chief Executive Jonathan Miller, said: “In McColl’s, Morrisons gain a long-term partner of significant scale with a growing neighbourhood convenience estate and in Morrisons we gain access to their best-inclass sourcing and manufacturing capabilities.

“This will enable us to provide our customers with the highest quality

fresh food through the relaunch of the much loved and trusted Safeway brand.”

Morrisons recently introduced a range of fresh, frozen and ambient lines under the revived Safeway brand, which McColl’s will enjoy exclusively for a 12-month period.

Alongside Sainbury’s wooing of Nisa, the agreement comes as Tesco proposes to merge with Booker. It gives Morrisons a foothold back in the fast-growing convenience market after shedding its M-local stores in 2015 to focus on its core supermarket business.

The move is likely to have profound implications for both Nisa and Palmer & Harvey who currently supply McColl’s. See cover story, p14.

Bestway Wholesale says its new own–label offer best-one is proving a winner with retailers.

Initial tracking of the launch products saw overall growth against the previous Best-in +40% in volume sales in the initial two-week period since launching at the beginning of July with volume sales of biscuits and soft drinks growing by 96.7% and 39.8% respectively.

Clydesdale plastic £10 note goes live in September Clydesdale Bank has announced the launch date for its second plastic bank note. The new £10 polymer note will enter circulation on 21st September and features Scottish poet Robert Burns on the front and views of Edinburgh’s Old and New towns on the reverse.

Certas SuperStation Gala Dinner confirmed

SYMBOLS First ever Londis wine festival gets thumbs up

SOCIAL MEDIA

NFRN partners with Zapper to drive sales and loyalty

Certas Energy has confirmed

Costcutter unveils Facebook canvas

that its SuperStation Gala Dinner

Payment and loyalty solution Zapper has partnered with the National Federation of Retail Newsagents (NFRN), which represents more than 15,000 independent retailers across the United Kingdom and the Republic of Ireland.

Margaret McCloskey, Head of Operations at NFRN commented: “Our NFRN members are really excited about Zapper’s cost-effective platform to help them stand out in a competitive market. This combined solution will enable independent retailers to offer digital loyalty cards, send targeted in-app promotions and accept mobile payments. Never before have independent retailers been able to do this, as well as, track their users’ purchase habits and create targeted marketing campaigns via the app to help grow their profitability.”

Jon Birt, Retail Sales Director Zapper UK, said: “Knowing your customers and rewarding their

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loyalty could not be easier or more affordable for all stores of varying size and format. We are thrilled to be endorsed by NFRN and very much look forward to working with the Federation throughout the UK.” With Zapper payments, shoppers just open the app, then scan a QR code on the screen at the till to pay, automatically update their loyalty cards and instantly redeem any available vouchers – all with just one tap. With every transaction, the app collects valuable data about each shopper which means store owners can now not only understand who buys what and when, but then communicate with those shoppers directly via the app and ask why.

and Awards Evening will take place on Thursday 12th October at Chesford Grange, near Leamington Spa. Now in its sixth year, the SuperStation initiative is designed to raise the quality and standards of forecourts across the UK and is open to around

As part of its social media strategy, Costcutter Supermarkets Group has launched a Facebook canvas to support its multi-channel ‘Tasty in no Time’ own brand campaign.

Launched last month, the ‘Tasty in no Time’ Facebook Canvas focuses on the Group’s hero summer recipe, for homemade burgers, using all own brand Independent products. Facebook Canvas allows users to build a unique experience with the combination of text, images, videos, carousels and product feeds as well as targeting the content to specific users.

700 Gulf and Pace branded forecourts across the UK.

Gulf revs up Cars 3 promo A Los Angeles Car-Crazy Adventure is on offer to one lucky family as Gulf launches a new forecourt promotion in conjunction with Disney Pixar and its new animated sequel film, Cars 3.

Free to all customers who spend £25 or more at any participating Gulf Service Station before 30th August 2017, the competition is running in tandem with the cinema launch of Cars 3 which follows the ongoing adventures of the legendary ‘Lightning McQueen’.

AUGUST 2017 | SLR

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News DRS SWA continues to argue against DRS

SWA launches legal hotline The Scottish Wholesale Association has joined forces with licensing legal firm TLT to launch a bespoke licensing hotline service for its members.

The new service will give wholesalers that are members of the association access to some of the leading licensing lawyers in Scotland including Stephen McGowan, who leads the TLT team, partner Caroline Loudon, legal director Niall Hassard and solicitor Michael McDougall.

Members will receive an initial free consultation with a discounted rate for additional follow-up legal services. Other benefits will include access to a licence health check and TLT licensing seminars.

Filshill videos to reveal all Glasgow wholesaler JW Filshill is launching a year-long video marketing campaign called

Wholesalers back kerbside recycling over DRS plans The Scottish Wholesale Association (SWA) has continued to voice its disappointment at the Scottish Government’s decision to ask its environment agency Zero Waste Scotland to undertake further modelling on different deposit return systems.

Figures from Zero Waste Scotland (ZWS) released by the Scottish Government show that retailers in Scotland will face start-up costs of at least £40.7m if a deposit return scheme (DRS) is introduced.

The data was released by the agency as part of its final summary of evidence gathering into the potential impact of a DRS in Scotland.

Kate Salmon, Executive Director of the SWA, said: “We are disappointed that the Scottish Government has decided to move to the next stage

of modelling potential schemes. We remain convinced that a deposit return scheme would involve significant and unnecessary costs and disruption for wholesalers, retailers, manufacturers and consumers.

“ZWS’s own figures show the disruption of the existing kerbside recycling system would result in only marginal benefit of £3-6m in terms of direct reduced litter costs for local authorities.

“Using the German experience and costs scaled to Scotland, ZWS figures show a £40.7m set-up cost and £44.5m annual ongoing costs.

We believe the additional costs in terms of extra warehousing space, administration, hygiene issues involved in back-hauling waste products and the potential for fraud

mean the actual costs to business have been under estimated.”

Commenting on the announcement by Environment Secretary Roseanna Cunningham that progress will be overseen by a steering group involving representatives from the packaging industry, retailers and environmental groups, and followed by a full public consultation, Salmon said: “We trust the steering group will fully examine the business reality of this proposal.

“While we are satisfied that options will then be put to the public for consultation before ministers reach a final decision, Scotland’s wholesalers will continue to engage with the Scottish Government on this issue and continue to make the case for investment in the existing successful kerbside system.”

‘Leading The Way’ revealing how the award-winning business operates.

The videos – each one lasting around three minutes – will show how the wholesaler engages with its staff, customers and suppliers, offering insight into every aspect of the business, from how orders are picked,

FINANCE C-store chain sees growth after acquiring 298 stores

FORECOURTS

McColl’s gains momentum from former Co-op stores

Gulf staff look sharp in new uniforms

store deliveries are made, promotions are run as well as staff training and community involvement. “Nothing is out of bounds,” explained Simon Hannah, Managing Director.

Aldi on the look out for 300 staff in 2017 Local retailers should be careful as Aldi has announced that it is looking to recruit 300 employees across Scotland within 2017, as it continues to attract more new customers than any other UK supermarket.

The jobs throughout Scotland are predominantly at Store Assistant, Assistant Store Manager and Deputy Store Manager level and, as the UK’s highest paying supermarket, all store employees will earn a

McColl’s Retail Group has posted interim results for the six months ending May 28, 2017, a period which saw the integration of 298 stores bought from the Co-op.

Total revenue was up 7.6% to £504.8m helped by the Co-op stores, around two-thirds of which were trading at the half year and all by the end of July.

Like-for-like sales rose by 0.2% in the first half and by 1.4% in Q2, in part supported by favourable weather.

Adjusted EBITDA increased to £16.5m despite being impacted by £1.3m pre-opening costs relating to the acquisition. Profit before tax, impacted by £2.3m exceptional costs and £1.3m pre-opening costs, was £4.5m.

The Group now has 1,292 convenience stores and 358

newsagents – an 80% increase in c-stores since the IPO in 2014.

Jonathan Miller, McColl’s Chief Executive, said the business has continued to gain momentum: “We are delighted to have completed the integration of the acquired stores, on time and on budget.

We have welcomed over 3,500 new colleagues who have done a great job through the transition, and early trading is in line with our expectations. With all 298 stores now on board, they are expected to make a material contribution to sales and profit in the second half of the year and beyond,” he added.

“Our focus remains on enhancing our convenience proposition through growing market share, developing our product ranges and delivering excellent customer service.”

Gulf has launched a new heritage-inspired uniform range that will be rolled out across its forecourts in Scotland from August.

Certas Energy’s Retail Marketing Manager, Gerry Welsh, said: “The Scottish public will see a collection that is modern and attractive whilst reflecting Gulf’s rich racing heritage. It was also important to provide our staff with clothing that was comfortable, practical and they could wear with pride.”

minimum of £8.53 an hour.

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DO YOU SELL E-CIGARETTES IN SCOTLAND? STORE From 1st April 2017, under the Health (Tobacco, Nicotine etc. and Care) (Scotland) Act 2016, all retailers of nicotine vapour products in Scotland are required to be registered by law.

If retailers do not register and continue to sell nicotine vapour products, they could face a fine of up to ÂŁ20,000 and could be sentenced to up to 6 months in prison.

ACT NOW! Retailers have until 1st October 2017 to register their business. Registration is QUICK, FREE and EASY. The simplest way is online at: www.tobaccoregisterscotland.org Alternatively, paper applications can be downloaded from the website, or obtained by telephoning the Scottish Government on 0131 244 2169

News FOOTFALL DRIVERS New offer helps reduce banking charges for retailers

Bad weather won’t hamper Nisa’s picnic plans As part of its summer-long ‘Come Rain or Shine’ marketing campaign, Nisa is offering shoppers the chance to win one of six picnic party kits throughout August. The ‘win a picnic party’ competition will give away two picnic hampers, containing food and drink worth over £100, every week for three weeks, concluding on August 20.

Union concern over Glasgow McVitie’s factory The GMB Scotland trade union is seeking reassurance from biscuit maker McVitie’s over its longterm commitment to production at its factory in Glasgow.

GMB Scotland said the company had been silent over the future of investment at the Tollcross site, which employs more than 500 people. McVitie’s owner Pladis said it had invested more than £5m at the site in the

PayPoint ATM ‘eliminates bank charges for over 2,000 retailers’ PayPoint has announced that over half of the retailers that are part of tis 4,200-strong ATM network have completely removed all banking charges for their PayPoint business over the past 12 months.

Research by the company has shown that the cost of banking remains the top issue facing retailers for the second year running as banks continue to withdraw support and branches across the country.

PayPoint’s ATMs benefit from the unique Net Settlement system, meaning any incoming bill payment cash is netted off against outgoing cash withdrawals.

In addition, PayPoint has announced a new cashback offer for retailers signing up to a PayPoint ATM and PayPoint One at the same time, giving retailers the opportunity to earn £1,500 back over 5 years.

This offer is available to both new and existing retailers.

Anthony Sappor, ATM Product Manager at PayPoint plc commented: “I am delighted to announce this new offer so that more retailers can benefit from

reduced banking charges and offer a vital service to their customers. As bank branches continue to close, ATMs within convenience stores are becoming more in demand, driving footfall and cost benefits to retailers.”

last few years and added that employees and union representatives “will be the first to know” if there were any changes to its operations.

New sales boss for Bestway In a new restructure designed to drive further growth, Tony Holmes has been appointed Sales Director of Bestway Wholesale. The past year has seen the company return to good profit and EBITDA growth after a sustained period of investment in the financial year 2015/16.

The new structure will see Holmes head up all sales routeto-market functions – including the company’s contact telesales service in Perth – and marketing.

Greenergy appoints Suresite Suresite has been appointed by Greenergy to provide wetstock management across its 220 Esso Dealer network. The long term arrangement is currently being rolled out and provides Esso Dealers with access to the UK’s most advanced realtime solution. The business only launched its wetstock

TOBACCO New report ignores efforts of retailers, says industyry body

SYMBOLS

SGF slams Stirling Uni tobacco report

First Londis wine festival sees 60% growth

The Scottish Grocers’ Federation (SGF)has strongly criticised a report from the University of Stirling which suggests that tobacco companies are attempting to influence retailers to reduce the impact of the tobacco display ban.

SGF argues that the report ignores the significant efforts undertaken by local retailers to comply with the tobacco display ban. Equally importantly the report ignores the impact of the plain packaging of tobacco products which has been in force in all stores across Scotland since May of this year.

SGF Head of Public Affairs Dr John Lee, said: “The restrictions imposed by the display ban are much more severe in Scotland than in the rest of the UK. Taken together with plain packaging this means stores simply cannot ‘promote’ or ‘position’ cigarettes in the way the report asserts. If customers could

Londis has declared its first ever ‘Wine Festival’ a success with the four week promotion delivering sales growth of +60% across the Londis estate, as well as attracting new footfall to the store and new shoppers to the category.

Deals included half price on Silent Lake and Isla Negra, as well as Oyster Bay and 19 Crimes for less than £8. All the deals delivered a minimum of 15% POR for retailers.

“The feedback from our retailers regarding the wine festival has been fantastic and we have seen some superb in store execution across the estate” said Martin Swadling, Brand Director – Londis.

“Having market leading deals really showed shoppers the value available at Londis.”

see behind the shutters on the gantry all they would see are rows of drab olive-green packs with no branding and very graphic health warnings. The strong impression we have from this report is that the authors have not visited any stores and are unaware of the most recent policy and legislative developments.

Tobacco is an entirely legal product – in 2016 the UK Treasury earned £11.5bn per year from the sale of these products – and as such retailers will undoubtedly have contact with tobacco companies.

“In Scotland compliance has been very high, with at least 98% of stores implementing it, with non-compliance restricted almost entirely to minor contraventions. The refurbishment of shops with new or adapted gantries has resulted in the removal of nearly all commercial brand messages. Retailers should be congratulated on this.”

management service in 2016.

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Save on cash banking with a PayPoint ATM NEW £300 a year cashback offer*

“ We’ve saved, on average £600 a month on cash banking fees since having a PayPoint ATM.” Linda Sood Falcon News, Portsmouth April 2017

Join over 4,000 PayPoint retailers with a PayPoint ATM

Visit paypoint.com/atm or talk to your Territory Development Manager *From 26 June 2017, £300 cashback will be available to retailers taking a PayPoint ATM alongside any PayPoint One package. Retailers must have an existing non-PayPoint ATM that has a high volume of cash withdrawals per month. Cashback is available yearly for a period of five (5) years for retailers who meet transaction volume requirements and other applicable terms. Contact enquiries@paypoint.com for full terms and more information.

News Extra

Card Payment Surcharges

NewsExtra RETHINKING CATEGORY MANAGEMENT P44 CARD PAYMENTS Surcharges banned from January 2018

Convenience Matters with the SGF The large number of stores in Scotland and the services and jobs they provide means that convenience stores must now be seen as a vital part of both the economic and social infrastructures of every community in Scotland. Local convenience stores now offer a range of important services including bill and utility payments, post office services, click & collect and ATMs. Scottish Grocers’ Federation has undertaken an analysis exercise with service providers and our members. This has shown that at least £175m in payments for rent and council tax is collected via convenience stores in Scotland every year. At a time when every local authority in Scotland is under significant financial pressure, convenience stores are helping funds to flow into the public sector. Just as importantly, this is providing people an easily accessible physical place in the community where they can pay for these housing- and servicerelated bills. If people were unable to do this, there could be consequences for housing tenure with a possible knockon effect on homelessness, adequate funds for local services and increased pressure on councils and our communities.

Increasingly, providing these services is actually coming at a cost to store owners as bank charges rise and commission payments fall. Through positive conversations we need to have the ambition to create new – and hitherto unimagined – partnerships with local government and other key partners in our towns to sustain the quality of place in Scotland, with the convenience store seen as a key contributor to the local economy, social interaction, housing, services and amenities.

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Credit and debit card surcharges to be banned Under new legislation, retailers will no longer be able to add surcharges to customers paying by credit or debit card from January next year.

Retailers will no longer be able to charge consumers extra for paying by debit or credit card, the government has announced. From January next year, businesses will not be allowed to add any surcharges for card payments.

While the new legislation was not aimed primarily at retailers but at the “worst offenders” like airlines and food delivery apps, the changes will affect a significant number of local retailers who currently add a fee for cards payments below a set transaction level.

The Treasure estimates that in 2010 alone consumers spent £473m on such charges. The new legislation follows a directive from the European Union which bans surcharges on Visa and Mastercard payments, although the UK government has gone further by also banning charges on American Express and also on Paypal.

While campaigners welcomed the move, saying it was great news for consumers, the changes will impact upon the margins of retailers as they will still incur a transaction fee for every credit or debit card payment, regardless of basket spend. Under the Consumer Rights Regulations, businesses are currently entitled to charge a sum “that reflects their

own costs in processing a transaction”.

Banks typically charge large retailers between 10p and 20p for each debit card transaction, or 0.6% for credit cards, a significant amount to lose on every transaction.

The announcement has also raised questions of how such ban will be policed in practice.

The problem is exacerbated by the huge growth in the use of contactless cards which are often used to pay for small basket spends, often below £2. The number of contactless cards in the UK has grown from 38 million in 2013 to 79 million just a couple of years later, according to the 2016 UK Card Payments Report from the UK Cards Association.

During 2016, the number of transactions using all payment cards increased by 9.2% to 17 billion, with corresponding values up by 6.6% to £856bn, sys the same report. Debit cards accounted for the majority of transactions, given their higher numbers relative to credit and charge cards. The number of debit card transactions increased by 9.4% to 14 billion, with values up by 8.0% to £670bn. Of this, the number of purchases amounted to 11 billion (up 12%), corresponding to a total spend of £486bn (up 11%). www.slrmag.co.uk

Comment

WHAT NEXT AS McCOLL’S HOOKS UP WITH MORRISONS? The dull moments in local retailing are few and far between these days – but wasn’t it always thus? Following a period when the major multiples seemed to lose interest in convenience after many ill-fated attempts to transfer their big box model to the local retailing stage, it increasingly appears that they are back in the game with a vengeance.

Tesco and Booker looks like a done deal, but Sainsbury’s courting of Nisa took a dramatic turn just as SLR was going to press as McColl’s announced that it was ditching Nisa (and Palmer & Harvey, who supply its cigarettes) in favour of a sole supply deal with Morrisons. Trying to pick the bones out of that deal is a complex task. What does it tell us about the supermarkets’ interest in convenience? Where does it leave the Sainsbury’s deal? What will the impact be on Nisa and P&H? Let’s start with the easy questions. There’s no doubt that this is a very, very serious blow for Nisa. McColl’s accounts for over a third of its sales. That’s a sore one. Nisa has been getting increasingly creative of late, supplying chill to JW Filshill, for instance, and is back in profit but it’s going to take an awful lot of creativity to fill a hole that size. One-third of £1.4bn is a big, big hole.

The news clearly came as a surprise to Nisa with Chief Executive Nick Read stating his disappointment that “the tender process has been halted nine weeks early – before there had been a chance for follow up conversations and proposals – especially when sales at Nisa-supplied McColl’s stores were 8.4% ahead of budget”.

How this affects a potential takeover of Nisa by Sainsbury’s is anybody’s guess, but it certainly doesn’t strengthen Nisa’s bargaining position.

Likewise, the McColl’s deal doesn’t do P&H any favours either, particularly considering the financial turmoil it’s currently in. The business made a loss of £6.6m on sales of £4.4bn last year and has reportedly got to come up with £50m ahead of a September deadline. McColl’s Chief Executive Jonathan Miller implied that P&H’s financial woes played a part in the decision to go with Morrisons, citing the supermarket’s ability to provide “security and stability” as a factor.

Just to confuse matters further, P&H’s biggest customer – Tesco – is merging with Booker, which has obvious implications for the future. Why would Tesco-Booker buy tobacco from a competitor (other than to appease the Competitions and Markets Authority in the short term)?

There’s also the novelty factor of the Safeway brand exclusively returning to shelves in McColl’s in the form of a 400-strong own label range as Morrisons finally does something with a brand it paid £3bn for 13 years ago.

It’s a funny old game, is retailing.

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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.

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© 55 North Ltd. 2017 ISSN 1740-2409.

ANTONY BEGLEY, PUBLISHING DIRECTOR

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SLR | AUGUST 2017 www.slrmag.co.uk

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Cover Story

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SLR | AUGUST 2017

McColl’s Tie Up With Morrisons

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McColl’s Tie Up With Morrisons

Cover Story

MORRISONS DEAL SPELLS TROUBLE FOR NISA AND P&H The news that McColl’s has struck a £1bn sole supplier deal with supermarket Morrisons throws the future of large parts of the wholesaling industry into disarray with Nisa and P&H among those nearest the front of the firing line.

BY ANTONY BEGLEY

T

he news that McColl’s had signed a sole supplier agreement with supermarket Morrisons caught many off guard including, it seems, their existing key suppliers Nisa and Palmer & Harvey (P&H). It was widely known that McColl’s, which operates around 1,650 convenience stores and newsagents, was in the process of negotiating with several potential suppliers but Nisa Chief Executive Nick Read’s disappointment at how the tendering process had been terminated nine weeks early clearly indicates the deal came as a surprise to him.

The ramifications for both the wider wholesaling and local retailing industries are profound, particularly with the merger of Tesco and Booker rumbling on in the background and the prospect of a takeover of Nisa by Sainsbury’s making lots of column inches in both the trade and national press. Where does that deal lie now with Nisa set to lose 35% of its turnover?

Following a series of high profile flops in the convenience store sector by the major mults, it wasn’t that long ago that the big boys seemed to have lost their passion for small stores. The peak of that episode was arguably Morrisons M-Local experiment which, after huge investment, was flogged off at a bargain basement price – £25m for a chain of 140 stores – only for the My Local business (as it became) to collapse completely less than a year later. Unsurprisingly, it then all went quiet for a while.

But that peace was shattered in January this year when Tesco

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AUGUST 2017 | SLR

15

Cover Story

McColl’s Tie Up With Morrisons

announced the Booker deal, triggering a tidal wave of activity in board rooms across the country as Tesco’s rivals hatched plans to prevent them losing ground to their great competitor.

It quickly emerged that Sainsbury’s had started sniffing around Nisa, a business still in a weakened position after the Costcutter split in 2013 and the collapse of major customer My Local. In the ensuing turmoil, McColl’s appeared to be opportunistically attempting to leverage its position as Nisa’s largest customer to try to make Sainsbury’s sweeten its £130m proposed takeover deal.

That conversation plainly didn’t play out as McColl’s Chief Executive Jonathan Miller had hoped, culminating in last month’s shock announcement that the chain was ditching both Nisa and P&H (who supplied McColl’s with tobacco) in favour of a £1bn sole supplier deal with Morrisons. The attractions for both parties are obvious. Morrisons gets to return to convenience through the back door, literally and

35%

of the current debacle are particularly attractive. He explains: “We either get taken over by Sainsbury’s and become a Nisa turnover accounted for by McColl’s very, very small part of their business, or we don’t get taken over by Sainsbury’s and are left with a business that will instantly become 35% smaller when McColl’s transfers to Morrisons. We will lose a lot of our buying power and that could have a very profound effect.

“What Nisa retailers need is a clear statement from Nisa on what the future looks like. I, like many retailers, am very fearful of our future and what we need very quickly is clarity and stability and leadership to reassure us and allow us to continue investing in our businesses.”

Nick Read’s statement in the aftermath outlining how “with strong trading, our recently announced new bank financing, and several new

“We either get taken over by Sainsbury’s and become a very small part of their business, or we don’t get taken over by Sainsbury’s and are left with a business 35% smaller when McColl’s transfers to Morrisons.”

- ABDUL MAJID, NISA RETAILER

metaphorically, without the hassle of actually running shops, while McColl’s gets a great fresh and chilled offer as well as “security and stability” – Miller’s words – which by implication were lacking in the existing Nisa and P&H supply agreements.

Perhaps less significantly, McColl’s also gets exclusive access to the Safeway brand that had been dormant since Morrisons bought the supermarket chain for £3bn around 13 years ago. Safeway’s reemergence will be in the form of a range of 400 or so own label products carrying the Safeway badge, a brand that was historically popular in Scotland.

“There’s no question that McColl’s boss Jonathan Miller has done a great job of negotiating a really strong deal for his business,” commented Scottish Grocers’ Federation Chief Executive Pete Cheema. “The Morrisons deal gives McColl’s access to a fantastic chill and freeze range that will have a hugely positive impact for them and I’m sure that Morrisons’ experience in the convenience industry will also play an important role and help McColl’s develop as a retailer.”

The wider question however, said Cheema, is what the deal will mean to Nisa and P&H. A lot of retailers in Scotland are asking the same question, one of them being prominent Bellshill Nisa retailer Abdul Majid.

“We have been told that the McColl’s deal will have little or no bearing on how Sainsbury’s approaches the Nisa deal, given that a major element of that supply deal runs out next year anyway,” Abdul told SLR. “Having said that, we were told that a formal offer would have been submitted by Sainsbury’s by now – and we’re still waiting.”

Abdul says Nisa retailers and members are “stuck between a rock and a hard place” because neither of the two most likely outcomes 16

SLR | AUGUST 2017

business wins, we remain well positioned to provide a sustainable business model for the benefit of all our Members” may go some way to assuaging the concerns of Abdul and his fellow Nisa retailers.

But if the future looks challenging for Nisa retailers, those relying on P&H looks even bleaker. The UK’s biggest cigarette supplier made a loss of £6.6m on sales of £4.4bn last year and has already had to undergo a refinancing deal with JTI and Imperial Tobacco.

The business reportedly must come up with another £50m ahead of a September deadline to service its debt.

This financial situation undoubtedly played a part in the McColl’s decision and the situation now looks to have gotten a whole lot worse for P&H. There is also the not insignificant question of what happens down the line when Tesco, P&H’s biggest customer of all, completes its merger with Booker. Even the most optimistic P&H executive would struggle to convince himself that Tesco will continue to buy cigarettes from what in effect becomes a competitor. Tesco has been at pains to point out that it will continue to buy from P&H but this may have more to do with mollifying the Competitions and Markets Authority to allow the Booker deal to go through than anything else.

And all the while there must be some interesting discussions going on at Costcutter too, a major client of P&H’s, and they must be keeping a very, very watchful eye on developments. “The inescapable conclusion is that there are more deals to come,” said SGF boss Pete Cheema.

“There will be more twists and turns before this whole situation settles down and I would simply urge retailers not to rush into any impulsive decisions. It makes far more sense to let the situation develop and play out, then make decisions based on how the land lies at that point when everything will hopefully be a lot clearer for all concerned.” www.slrmag.co.uk

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News

Products

Down is the new up Orangina has revealed a new upside-down can design,

ProductNews

available in 330ml formats in both Original and Light variants. The topsy-turvy can is intended to create standout on shelf, while encouraging consumers to mix the orange pulp inside. The new can designs are available now as single units, RSP 89p and packs of six, RSP £3.69.

Aviko Potato Gratin Aviko has added a Cream & Cheese Potato Gratin to its Convenience range. Already a best-seller in the foodservice industry, where Aviko is perhaps more well-known, the new gratin has an RSP of 99p. Each 150g pack contains two individuallywrapped portions. It is made from fresh sliced potato, cream and cheese. Like the rest of the five-stong range, it is also glutenfree and suitable for vegetarians.

LOW OR NO SUGAR IS THE WAY FORWARD FOR CARBS P60 CRISPS AND SNACKS Consumers to decide fate of classic crisp flavours

Walkers favourites face axe Is this the end of the road for Salt & Vinegar?

Walkers is giving customers the chance to keep their favourite crisps or risk losing them to a brandnew flavour, with its latest campaign ‘Choose me or Lose me?’

Consumers can vote between classic and new flavours either by purchasing a single pack or voting online. Three core flavours are in jeopardy, with Salt & Vinegar being challenged by Lime & Black Pepper, Prawn Cocktail taking on Paprika and Smoky Bacon versus Bacon & Cheddar.

The flavours chosen for the campaign are complementary to one another, with the ‘challengers’ all best-sellers abroad, such as Lime & Black Pepper from Australia, Paprika from Spain, and Bacon & Cheddar from the USA. Walkers expects the challengers will bring in new shoppers to the category as per its previous flavour campaigns.

Thomas Barkholt, Marketing Director at PepsiCo, commented: “We know our consumers feel passionately about their favourite Walkers flavours

and we wanted to give them the opportunity to vote in regard to which flavours will be staying.

“We are confident that by bringing back the voting element, this campaign will really capture consumers’ interest, stimulating demand and driving growth in the savoury snacks category.”

The campaign runs across 32.5g singles, 32.5g PMPs, 50g Grab Bags and key multi-pack formats (3x6 packs and 1x22 packs).

It’s available now in cases of eight from JB Foods and other wholesalers.

Yollies’ Emoji Movie promo Kerry Foods is running an onpack promotion across Yollies, Cheestrings and Scoffies to mark the release in cinemas of The Emoji Movie. Consumers can upload a selfie to have a chance of winning Emoji-themed prizes such as lunchboxes and stationery sets. The promotion is supported by a seven-week ad campaign.

Panasonic powers up Spider-Man promo Panasonic Batteries has teamed up with the new Spider-Man: Homecoming movie for an on-pack promotion giving consumers the chance to win themed prizes, including a family trip to New York. Promotional packs are also available with an extra-free batteries promotion,

POT SNACKS

SOFT DRINKS

Pot Noodle is launching two new flavours this month, inspired by popular dishes from across the globe.

Ready to eat in the usual four minutes, Chicken Korma and BBQ Pulled Pork have been selected to tap into the growing trend for world food, whilst appealing to consumers who are looking to enjoy a quick-to-make hot snack.

The new flavours will be supported by a £3m marketing campaign in line with the brand’s ‘You Can Make It’ activity, which targets busy young go-getters.

Monique Rossi, Pot Noodle Marketing Manager for brand owner Unilever UK, said: “We expect these new flavours to excite our loyal Pot Noodle fans who are looking for something new to try; as well as attracting new consumers to the category.”

Packaged in the standard plastic pot, the new variants also benefit from an updated design featuring a textured effect and vibrant colour palette to provide optimum standout on-shelf.

Pot Noodle Chicken Korma and BBQ Pulled Pork roll out from July, and are available in cases of 12 with an RSP of £1.19 per unit.

Coca-Cola European Partners (CCEP) has announced the reformulation of the regular Capri-Sun flavours, marking the next step in its journey to provide retailers with more low-sugar soft drink options.

From early 2018, the regular Capri-Sun variants across the 330ml and 200ml pouch formats will contain 50% less sugar. This means the original flavours will be levy exempt.

The new recipes are part of a £30m investment (2012–2017) by CCEP that has focused on reformulation and NPD to provide consumers with a wide choice of lowerand no-sugar options.

Simon Harrison, Operational Marketing Director GB at CCEP, said: “We’re confident that the lower sugar Capri-Sun will be a popular choice with shoppers looking for a great tasting, sugar and calorie reduced juice drink.”

Pot Noodle goes global

Capri-Sun cuts sugar

to offer shoppers more added value.

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SLR | AUGUST 2017

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Products

News

Orange is the new Nibble from McVitie’s McVitie’s has added a new Milk Chocolate Orange variant to its Digestives Nibbles range. The new product is available in a

SEASONAL Gum and sugar giant launches Halloween range

Wrigley adds five spooky SKUs to its seasonal Halloween range

120g sharing pouch at an RSP

Following a successful supermarket-based trial last year, Wrigley is now launching Skittles Fruits and Sours Tubs across all channels in time for Halloween. The new tubs have an RSP of £5 and are ideal for trick or treaters, containing 29 individual 26g packs of Skittles Fruits and Skittles Crazy Sours.

To support the new tubs, Skittles is taking consumers back to the dark side for the third year running.

Containing five frightening flavours (Forbidden Fruit, Midnight Lime, Blood Orange, Pomegranate and Dark Berry), Skittles Darkside is again available in a pouch format, and new for this year, as funsize.

Starburst also features in the seasonal range, with its creepy ‘Trick or Treat’ limited edition sharing bags giving consumers a tense surprise when they taste one of the sweet or sour edition flavours, including Apple, Orange and

spend for 2017.

Raspberry. The pouch formats and sharing bags are aimed at consumers looking to host their own spooktacular parties.

The limited-edition range will be available for three months and runs alongside Skittles Fruits Funsize, which is available all year round.

Dan Newell, Wrigley Confections Marketing Manager, said: “Skittles Fruits Funsize was the number one contributor to Total Confectionery Funsize growth during Halloween 2016 and we are expecting it to be even bigger this year. We are excited to have expanded our range and are giving retailers all they need to enhance in store theatre.”

A bespoke suite of Halloween-themed POS including dedicated cardboard units and clipstrips is available. Retailers can request it by calling 01752 752 094 or by visiting www.wrigley.com/uk.

of £1.99. Digestive Nibbles has added £12.9m to the biscuit category since launching last year, and the range is being backed by a £4m marketing

Rizla rolls out natural hemp paper and tips range Imperial Tobacco has expanded its Rizla offering with the launch of Rizla Natura, a range of papers and tips manufactured from what the company is calling responsibly-sourced hemp. Rizla Natura papers are available now in both Regular and King Size variants containing 50 and 32 papers. RSPs are 27p and 75p per pack respectively. Natura Tips RSP is 74p for a pack of 120.

Colman’s grabs a slice of the pie mix market Colman’s has added four new ‘pie meal makers’ to its existing portfolio. The new additions have been designed to help consumers make traditional British pie dishes at home from

POT SNACKS Premier Foods chases single-serve market

Batchelors goes to pot Premier Foods has launched its popular Batchelors Pasta ‘n’ Sauce range into a new single serve pot format, targeted at time-poor customers looking for an easy-to-prepare, low fat meal solution.

The new pots are available in four top-selling flavours – Cheese & Broccoli, Chicken & Mushroom, Mac ‘n’ Cheese and Cheese & Pancetta – and the move exposes the brand to more lunchtime and onthe-go occasions. With single serve eating occasions growing at 10%, Premier is confident the launch will have a “very positive” impact on the category. Batchelors Pasta ‘n’ Sauce pots are available now in cases of 6 x 65g with an RSP of £1.09 per unit.

Mark Alldred, Brand Director of Quick Meals & Snacks at Premier, said: “The range will cater for shoppers that want a tasty, convenient solution.”

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scratch, and tap into the 10 SOFT DRINKS

Volvic lets it out Volvic has kicked-off its biggest marketing campaign to date, running across its Touch of Fruit and Juiced ranges.

Titled ‘Let It Out’, the £3m initiative runs until the end of August. It takes in a complete packaging refresh, out-of-home and YouTube advertising, TV sponsorship, social media activity, a News UK partnership, large-scale depot takeovers and a nationwide sampling campaign.

million pie occasions that the company says happen every year in the UK. The range comprises Fish, Vegetable, Chicken and Steak variants, all carrying the same RSP of £1.05.

Rubicon celebrates Diwali with special packs AG Barr has unveiled special packs of Rubicon to mark the Diwali festival. Available from September, Rubicon’s Mango, Guava and Passion flavours will be available in both one litre plain and price-marked celebration packs (£1.29 Mango and Guava; £1.39 Passion).

These have a premium look and feel to help shoppers celebrate the renowned international festival of lights.

AUGUST 2017 | SLR

19

News

Off-Trade

Don’t call it whisky Kingsbarns Distillery has unveiled a two-year-old Spirit

Off-TradeNews

Drink, its first release to be matured in oak casks. The drink can’t be called Scotch whisky as it hasn’t been matured for at least three years. It represents another milestone along the road to the distillery’s production of its first single malt, scheduled for 2018.

Pernod offloads distillery Pernod Ricard has sold the Glenallachie Distillery to a trio of whisky industry veterans. The Glenallachie Consortium of Billy Walker, Graham Stevenson and Trisha Savage also picked up the Glenallachie single malt brand and the MacNair’s and White Heather blended scotch brands as part of the deal. The sale is part of Pernod Ricard’s strategy to focus on its priority spirits and wines brands and to adjust its industrial footprint to its needs.

Fringe benefits for Pickering’s

ALL THE LATEST RANTS FROM UTC P62 BEER Heineken marks milestone with revamped retailer scheme

Heineken celebrates five years of Star Retailer Heineken’s award-winning Star Retailer scheme has gone from strength to strength since its launch in 2012. Now, on the scheme’s fifth anniversary, Heineken has revealed the next evolution of the Star Retailer scheme.

Since its launch, the scheme has delivered £60m extra sales to the category in the convenience channel. Its range, category and store space advice has enabled 96% of retailers to improve their range and 83% to experience a sales increase as a result, as well as giving out £1.8m worth of rewards to retailers who have followed the principles.

Five years on, the scheme has been revamped to ensure its enduring relevance in helping retailers continue to make the most of their beer and cider sales.

As shopper behaviour changes, the channel and the category also continue to change. The scheme now provides more in-depth insights which highlight the growing focus on shopper occasions and missions and how to provide range and product based on these needs.

The scheme also has an increased focus on the trend towards premiumisation. With every £1 spent on alcohol in the UK, 65p is spent on lager.

As premium is the biggest segment within lager it’s imperative that retailers have a good selection in their chiller. Star Retailer’s core product recommendations have been up-weighted to premium lines such as Amstel and Kronenbourg 1664 to help retailers make the most of this trend and increase basket spend.

Heineken has also refreshed the Star Retailer website to house the advice in one place and make it simpler to navigate.

Retailers can also access the latest findings on shopper needs and learn how to maximise space and improve store functionality..

A planner has been introduced to inspire customers to plan the products they need for events including big sporting occasions or cultural events like Chinese New Year and Australia Day. Toby Lancaster, Category and Shopper Marketing Director at Heineken, said: “The feedback from our customers has been really positive and we are sure they will be delighted with the new and improved advice and website. We hope to help retailers to stay one step ahead of changing customer purchasing habits and make sure they get the most from the beer and cider category.”

SPIRITS

Craft distiller Pickering’s Gin has launched an exclusive bottling in partnership with Edinburgh Festival Fringe to celebrate the 70th anniversary of its original Bombay gin recipe, which remains preserved on a scrap of paper. This month also marks the birth of the fringe festival concept 70 years ago in Edinburgh. The one-off run of 650 bottles has been distilled precisely to the old recipe exactly 70 years on from its creation. Pickering’s Original

Darnley’s Gin returns to Scotland Darnley’s Gin has brought production home to Scotland with the opening of a new gin distillery and visitor centre at Kingsbarns in the East Neuk of Fife.

Previously distilled in London, the award-winning premium Scottish gin will now be exclusively produced in Scotland.

The new distillery is installed in what was once a derelict farm cottage in the grounds of its sister Kingsbarns Whisky Distillery. It marks a significant investment for the business and will support Darnley’s Gin’s growth plans both at home and in overseas markets.

The year-long renovation of the Darnley’s Gin ‘cottage’ has focused on creating a distillery with traditional techniques and craftsmanship at its heart. Scott Gowans, Darnley’s newly-appointed Gin Distiller, will oversee all aspects of production and recipe development.

1947 gin is priced at £29.95 (70cl).

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SLR | AUGUST 2017

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Off-Trade

News

SPIRITS Premium vodka brand gets down with the kids

Glen’s Platinum rocks this summer’s festivals

Glen’s Platinum Vodka has been announced as headline sponsor for Glen’s Party at the Palace, as well as a major sponsor for Belladrum Tartan Heart Festival, in Inverness and Y Not Festival, in Derbyshire.

Collectively, the events are expected to attract more than 130,000 revellers, who will see performances from the likes of Stereophonics, Sister Sledge, Kaiser Chiefs and Amy Macdonald.

Glen’s will be supporting the festivals with

various promotional activities. In addition to being the only vodka product available at all three events, each festival will also have a designated Glen’s Platinum Vodka Marquee.

There will be a Glen’s Platinum ball pit at each event, and attendees will be given the chance to win branded festival necessities such as sunglasses and waterproof ponchos.

The Loch Lomond Group will be investing more than £1.5m in promotional activities for Glen’s Platinum Vodka throughout the year.

SPIRITS William Grant shines light on drinks industry

Premium Spirits power ahead The growing trend for premiumisation has been highlighted in the latest Annual Report from William Grant and Sons.

The spirit manufacturer’s 2017 evaluation of consumer behaviour and trends affecting the drinks industry has revealed that Premium Spirits now accounts for £339m in the off-trade, up +12.7% and growing ahead of the total market.

The BWS market has grown by almost £207m in the last year, with spirits accounting for almost 30% of the growth. The Spirits sector accounts for a quarter of all BWS spend and the category has added £59m in incremental value sales in the last 12 months.

Now worth almost £4bn, the +1.5% growth in Spirits is due to, the report says, shoppers purchasing more frequently, and more shoppers entering the sector.

The fastest-growing spirits were gin (+15.8%) and flavoured/spiced rum (+12.7%).

www.slrmag.co.uk

BEER

Tennent’s saves summer Tennent’s Lager is looking to serve up summer salvation to consumers lacking scorching summer plans with its new on-pack promotion.

The competition is the latest activation to be announced from the brand as part of their ongoing ‘Here To Serve’ campaign, which sees Tennent’s solve all manner of problems for the people of Scotland.The new summer on-pack promotion offers consumers the chance to win prizes worth a total of £80,000. Up for grabs are banter-branded beach towels and a number of holidays to several top destinations.

A total of 700,000 packs in 10, 12, 15 and 20 pack SKUS have been wrapped with the promotion.

Q: My local licensing standards officer recently inspected my store and advised that the photocopied premises licence I have on display isn’t acceptable. What should I do?

The licensing standards officer is correct. You must have either the principal premises licence (i.e. the original) or a certificated copy on display. A certified copy is signed on every page by your solicitor to confirm it is a true copy of the original. If you have neither then you can request a duplicate from your local licensing board for a fee (around £25–£50). You should also report the licence as lost to the police (www.scotland.police.uk/ contact-us/report-lost-property).

Q: I want to start stocking craft brew kits in my store. Do I need to merchandise these kits in the designated alcohol display area?

No – the craft beer kit does not fall into the statutory definition of alcohol so you are free to display this anywhere in your store (the definition of alcohol does not include ingredients used to make alcohol). You should also bear in mind that as the kit falls into the category of a “branded nonalcoholic product” then you can also merchandise it within the designated alcohol display area if you wish.

Q:The licensing police sergeant has been in touch to ask that we take part in a bottle marking scheme. I’m told that this would involve certain products being marked so that they can be traced back to my store. Do I need to join?

You are under no obligation to join such a scheme unless it has been added as a condition of your premises licence further to the grant, variation, or review of your premises licence. While as a responsible operator you should of course consider joining, you should be aware that under 18s being found in possession of marked bottles does not always mean that the alcohol has been illegally sold, instead it could be attributable to theft etc. It may be worth speaking to a specialist licensing lawyer.

AUGUST 2017 | SLR

21

News

Newstrade

NEWSPAPERS

Trinity Mirror print advertising slumps 27% Daily Record publisher Trinity Mirror is on the look out for a further £5m in cost savings after reporting a £55m decline in revenue to £320m for the first six months of the year as print advertising revenue across the group fell 27% over the period. Circulation revenue also fell, by 9.9%, to £145.7m while digital income grew 4.3% to £41.4m.

The group is targeting £20m of structural cost savings for the year, up from its original target of £15m, after coming in “ahead of target” at £10m in savings for the 26 weeks to July 2.

Adjusted operating profit for the group was down £6.5m year-on-year to £62.6m for the six-month period although the group reduced its net debt by £8.1m to £22.4m Simon Fox, Trinity Mirror’s Chief Executive, said: “Whilst the trading environment for print in the first half was volatile, we remain on course to meet expectations for the year. I continue to anticipate that the second half will show improving revenue momentum as we benefit from initiatives implemented during the first half of the year.”

Trinity Mirror chairman David Grigson has said he will step down from the board of directors next year after six years in post, to be replaced

by Helen Stevenson.

News& Magazines SEE THE LATEST PRODUCTS TO HIT THE SHELVES P34 REGIONAL PRESS Tough times continue to leading regional newspaper firm

Johnston Press strife continues with ‘significant’ editorial staff cuts Major regional publisher Johnston Press has said it plans to cut a “significant” number of journalists from its Scottish weekly titles, following its latest strategic review in response to what it termed “challenges faced by the print industry”.

The company said audiences were switching to digital platforms, and pointed the finger at tech industry behemoths like Facebook and Google for changing the way people consume news today. The company has not specified how many editorial roles could be lost but the National Union of Journalists (NUJ) has reportedly

estimated that around 25 jobs are at risk across 24 of the company’s 28 Scottish weekly titles.

Johnston Press said: “We have seen over the past year at least a number of newspapers closing or being put up for sale as publishers struggle to confront the challenges. This restructure is designed to ensure our news brands are able to continue to

serve their communities – as their only source of trusted local news.

However, it does mean that there will be a significant reduction in the number of editorial roles.”

The company confirmed that it is working closely with the NUJ in Scotland, and will continue to do so, to ensure it can achieve the “best outcome for affected staff within the new structure”.

According to the NUJ, the four titles not facing job cuts are the Falkirk Herald, Fife Free Press, Southern Reporter and Stornoway Gazette. The union added they had been identified as “prime” titles which would be given extra support.

NATIONAL NEWSPAPERS Guardian owner makes progress on reducing losses

Guardian cuts losses by more than one-third The Guardian Media Group has announced that it has cut its losses by more than a third to £45m in the last financial year and more than quadrupled its number of paying members, as it seeks to break even within two years.

Total revenues increased by 2.4% to £214.5m in the year to April 2, thanks to the popularity of its membership scheme, one-off contributions and growth in international operations.

Paid-for membership, a core part of the Guardian’s plans to counteract the steep falls in print ad revenue affecting all newspaper publishers and slow digital ad growth, rose from 50,000 to more than 230,000. The number of readers paying for print and digital subscriptions stayed stable at about 185,000 and there have been more than

190,000 one-off contributions. Last April’s 20p cover price increase also helped buoy revenues.

The Guardian newspaper increased its total digital revenues by 15% per cent to £94.1m, including membership income, contributions and philanthropic and grant-funded income.

GMG Chief Executive David Pemsel said: “More people are paying for Guardian journalism than ever before. This is helping to build a strong foundation from which we will continue to invest in some of the most trusted journalism in the world.”

Losses from running the business were £44.7m – down from £68.7m the previous year. At a pre-tax level, the Guardian made a loss of just £200,000.

DIGITAL

Metro ‘fastest growing news website’ The Metro was the fastest growing national newspaper website in June, up 99% year-on-year to 2.7m unique browsers per day, according to the Audit Bureau of Circulations.

Metro is produced alongside Mail Online which remained the most popular UK newspaper online with 15.4m unique browsers per day in June. The Sun is closing the gap on The Mirror with 5.3m browsers per day versus 5.6m.

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

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SLR | AUGUST 2017

www.slrmag.co.uk

Inside Business

Research Digest

RETAILS HOURS WORKED STILL FALLING The latest BRC Retail Employment Report shows that hours worked in retail continue to fall year on year, although the rate of change has slowed to -3.3% from -3.9% in the first quarter of 2017. Unsurprisingly, a similar pattern was seen in the number of employees, with the rate of reduction slowing to -1.5% from -2.2% last quarter.

The later timing of Easter, and the sales surge that came with it – boosting total sales growth for the quarter to 2.7% – increased retailers’ need for hours, partially offset the significant downward pressure on the demand for retail labour, as a result of profound structural change.

The BRC expects to see hours and employment continue to fall. Fifteen percent of retailers in the survey are expecting to reduce employment levels in the next quarter compared to none in Q2 2016. As financial reality and the march of technology continue, “further reductions in hours and employment will almost certainly be seen”, says the report.

Conditions in the retail labour market do not reflect those in the wider economy, where the current rate of unemployment is at a record low of 4.6%.

98% HAVE ‘GREEN HABITS’ New research of over 2,000 Scots has found that as much as 98% of Scots do something to help the environment on a weekly basis, including recycling (80%) and turning lights off (73%). Scots were also the most likely to take shorter showers (34%) to help save the planet out of all groups surveyed in a research commissioned by The Vegan Society.

The survey showed that Brits in general are a green bunch, with 95% doing something every week to help the planet.

Environmentally-friendly habits include taking re-usable bags to the shop (58%), trying to walk or cycle instead of driving (41%), using eco bulbs (49%), turning off taps when brushing teeth (54%) and only boiling as much water as they need (51%).

LIKE-FOR-LIKE SALES HIKE The SRC-KPMG Scottish Retail Sales Monitor for June 2017 shows Scottish sales increased by 0.2% on a like-for-like basis compared to June 2016, when they had decreased by 1.4%. On a six-month basis, like-for-like sales fell by 0.2%, the first negative rate since last November.

Total Food sales grew by 4.2% versus June 2016, when they had increased by 0.1%. This pulls the 12-month averages to 1.5%, the fastest since April 2014.

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SLR | AUGUST 2017

60% CHANGE SHOPPING HABITS WHEN SCHOOL’S OUT

IGD research shows the majority of consumers significantly change their shopping habits during the summer months when school’s out.

R

esearch from IGD has revealed the difference in shoppers’ traditional summer shopping behaviours with children being home during the day.

With most shoppers with children (60%) claiming they change their shopping habits during the summer months, the research highlights areas for local retailers to be aware of when meeting summer demand.

The survey of over 1,700 shoppers found that 26% opt for the big weekly shop to avoid going in-store frequently with their children while the same percentage prefer smaller top-up shops to restock supplies that run out faster. Saving money is also a priority with 22% of parent shoppers saying they stock up the freezer to help spread the cost.

Vanessa Henry, Shopper Insight Manager at IGD, said: “Families’ routines can be disrupted by the school holidays with play dates, sports and other children’s activities, which means shoppers aren’t always as

organised as during term time. There are also more meals and snacks to cater for as a lot of children will be at home over these weeks – the fridge might need filling up on a more frequent basis with more mouths to feed.

“For the industry, it’s important that retailers and suppliers can respond to the needs of different shoppers over these holidays to make the shopping process easier for busy parents. With parents looking to keep children entertained during the holidays, convenient pack formats and on-the-go food and drink solutions are increasingly relevant.

Family recipe ideas, quick and easy lunch solutions and larger pack sizes are likely to appeal to mums stocking up for the holidays.”

As well as changing routines, shoppers also alter their diets with nearly half (47%) tending to eat healthier foods during the summer.

Over three in ten (31%) shoppers spend more on food and groceries for picnics during the summer months than any other time.

PRICE KEY WHEN CHOOSING SUGAR CONFECTIONERY New data from the latest Shopper Intelligence grocery shopper measurement programme has confirmed price is consumers’ most important consideration when it comes to shopping for sugar confectionery, just ahead of quality, stock availability, range, layout and offer. Over 100,000 responses found that confectionery ranked highly (62%) as a grab and go purchase and low as a browse purchase (20%), indicating that retailers have

a small window to drive purchase. Out of this 62%, the main facilitators of a quick purchase were product standout, (43%), ease of shop (43%) and prominent promotional display (23%).

Some 40% of shoppers also said confectionery items were purchased just for them, but a much higher than average proportion of shoppers were buying for their children (11% vs. a 4% average).

Over half (53%) of surveyed shoppers said they

planned to buy confectionery prior visiting the store, placing it among the leastplanned category in store.

A total of 18% of the 53% of shoppers planned to purchase a specific brand, and 15% actually bought the intended brand, indicating a conversion rate of 85% and a high level of brand loyalty among planned shoppers.

Nearly half of confectionery buyers (46%) who bought hadn’t planned to buy prior to visiting the store.

www.slrmag.co.uk

Win A Diamond With Diamond White | Reader Competition

Inside Business

WIN A CUT DIAMOND WORTH £1000!

This is your chance to win a REAL DIAMOND worth £1,000 at RSP with Diamond White and SLR! THE COMPETITION: Q This is exclusive in Scotland to SLR readers!

Q Diamond White is available at Booker, JW Filshill (delivered), United Wholesale (Scotland) and United Wholesale Grocers.

Q One Diamond White cider independent stockist will win a £1,000 diamond!

Q 10 runner up entrants will win a case of Diamond White each.

Q Simply create an outstanding Diamond White display – take a photograph and email it to john.dawson@brookfielddrinks.co.uk including your business name and address with ‘Competition’ as the subject line.

Q Help is at hand: Send for your free Diamond White POS kit by emailing john.dawson@brookfielddrinks.co.uk including your business name and address and write ‘Diamond POS kit’ in the subject or pick it up from your local wholesaler and use it to build your display Q Judges: SLR Publishing Director Antony Begley and Nigel McNally MD of Brookfield Drinks, owners of Diamond White . The winners will be notified on September 20th 2017. Judges’ decision is final.

Q Terms and conditions are available for viewing on: diamondcider. com/tradecomp and at www.slrmag.co.uk ABOUT DIAMOND WHITE: Q Diamond White is the Great British crafted cider with a superior recipe, a premium production method, high apple content and triple filtration.

Q One of the top selling premium ciders in the UK independent sector. Price marked 500 ml can exclusively for independents – great customer value at £1.25 per 500ml can.

Q Consumer promotion on 500,000 cans where 10 x £1,000 diamonds will be won. Promo cans now in distribution. Each can has a unique number under the ring pull ring which the consumer enters into the Facebook linked Win a Diamond micro web-site.

WIN A DIAMOND WORTH £1000

READERS EXCLUSIVE!

MU SUM THIS ST ME ST RS OC K

WITH DIAMOND WHITE CIDER & SLR Check out the Trade Only competition above PLUS Every promotional can gives your customers a chance to win a diamond. One diamond can be won every week for TEN weeks!

Stock up now for sparkling sales

For illustration purposes only

www.diamondcider.com facebook.com/diamondcider john.dawson@brookfielddrinks.co.uk 01234 783034 For your FREE ‘Win a Diamond’ POS kit email John Dawson or collect from your Cash and Carry or ring the above number.

Full terms and conditions for the trade ‘Win a Diamond’ competition are available on www.diamondcider.com/tradecomp

www.slrmag.co.uk

AUGUST 2017 | SLR

25

Inside Business

Opinion | James Lowman, ACS

DRS WOULD BE ‘INEFFECTIVE’, PLACING ‘UNNECESSARY BURDENS’ ON SECTOR ACS Chief Executive James Lowman supports sister organisation SGF’s view that the proposed Deposit Return Scheme would be ineffective and would place a mountain of unnecessary practical burdens on retailers.

T

he Scottish Government recently announced its intention to look more closely into the feasibility of a Deposit Return Scheme (DRS) for bottles and cans, commissioning research to look at different models of DRS and their impact on retailers, consumers and the existing ways in which people recycle.

While this is currently just being considered officially in Scotland, authorities in England and Wales are likely keeping a close eye on proceedings.

Our view at the Association of Convenience Stores has been consistent that a scheme would not be effective, and would place unnecessary burdens on the convenience sector.

Together with our counterparts in Scotland, the Scottish Grocers’ Federation, we commissioned independently-facilitated focus groups and polling with consumers and retailers to explore issues around recycling and operating a DRS model and other options.

The retailers we spoke to identified issues 26

SLR | AUGUST 2017

that you will probably relate to, for example, not having space in store to take bottles and cans. They also raised issues like health and safety and hygiene problems when storing used packaging brought back to the store by customers, and they were concerned about potential confrontations with customers over what can and can’t be accepted under a DRS scheme.

“Perhaps more importantly, consumers didn’t see DRS as the right way to improve recycling.”

That’s without getting into the challenges of installing large reverse vending machines.

Thankfully this evidence has been recognised by the Scottish Parliament’s Climate Change and Land Reform Committee.

Perhaps more importantly, consumers didn’t see DRS as the right way to improve recycling. In general, they prefer kerbside collection at their homes, and in fact taking some packaging out of the system of kerbside collection would make this less financially viable.

That’s not to say there aren’t improvements that could be made to kerbside collection, for example, more consistency on what can be left in different bins, and clearer information to help people to separate waste.

This is an important debate, not just for our sector but for many other businesses and indeed for the environment. We hope the Scottish Government will think carefully and deeply about the best ways to improve recycling, and work with retailers to define the right way forward. www.slrmag.co.uk

9 9 Scottish Grocers’ Federation

99 Not Out ANNUAL CONFERENCE 2017

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SEWLARRDS

R

2017

SALEEM KEEPS TAKING THE TABLETS! Spar Renfrew retailer Saleem Sadiq was the star of the crisps and snacks show at this year’s SLR Rewards and picked up not one but five swish Asus tablets that he intends to use in his store to help launch a new loyalty scheme, among other things.

A serial award winner, Saleem Sadiq’s Spar store in Renfrew never disappoints.

Store standards are simply phenomenal at all times and Saleem’s willingness to innovate, try new concepts and invest constantly in his store has helped him pick up a mountain of trade awards over the years, as well as a huge and very loyal customer base.

But loyalty is changing these days, as all progressive retailers are aware, and nobody is more aware of that than Saleem. That’s why he’s working with a number of tech suppliers to trial some great solutions in his store to launch a formal loyalty scheme for his customers.

A new food to go solution in the store has helped grow footfall and Saleem is keen to give these new shoppers, as well as existing regular customers more and more reasons to keep coming back to their favourite local retailer.

So the fact that Saleem picked up not one but five awesome Asus tablets at this year’s SLR Rewards, courtesy of Crisps & Snacks category sponsors Walkers, was music to his ears.

“I was genuinely in the process of looking at various tablets to buy for the shop,” says Saleem. “We wanted to

have some that our staff could use but we were also looking to add one or two tablets that would be customer-facing to allow us to let customers sign up instore. So when we learned that we’d won five tablets at the SLR Rewards we were over the moon! Thanks SLR, and thanks Walkers – we are genuinely delighted.

It’s the perfect prize.”

Saleem is currently working with a tech partner to build mounting units on the shop floor where some of the tablets will be fixed so that customers can easily sign up and find out more about the new loyalty scheme. With a new seated cafe area in the store, it’s the perfect solution for customers to join the loyalty club while enjoying a sub, a sandwich or a new Stone Willy’s pizza or f’real milkshake.

“We know that we need to do more with technology and data in the store so winning this Reward has given us a great boost and I look forward to watching our customers sign up in-store as we launch and build the loyalty club,” said Saleem. “And hopefully our customers will pick up a few bags of Walkers crisps when they’re in buying their pizzas and shakes!”

WWW.SLRAWARDS.COM

Saleem’s tablets will be used to launch a loyalty club to drive sales in his rapidly expanding food to go section.

# Th i n kSm a r t

2

The UK’s leading tech, data, digital and loyalty conference for the convenience trade returns.

www.slrmag.co.uk/thinksmart2

Inside Business

Woodlands Local | Monthly Update

The revolution is underway!

WOODLANDSlocal

We have started work on an overhaul of all procedures and processes in Woodlands which means a lot of work – an awful lot of work – but we believe it’s what we have to do to future-proof the business in an increasingly difficult retail environment.

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BY ANTONY BEGLEY

I

t’s never easy to accept things aren’t working out as planned, but that’s exactly what we had to do recently at Woodlands Local as we realised it was more than a few cosmetic tweaks we had to make to future-proof a business being battered by sluggish sales and rocketing costs. The last few weeks have been a good example with a mix of torrential rain and the traditional Falkirk holiday period ensuring both footfall and sales were down on last year while our wage bill has duly risen by several thousands of pounds .

The answer was never going to be working harder to sell a few more bags of crisps, a few more rolls and a few more cans of juice. We know we need a fundamental overhaul of the business and how manage every tiny aspect of the store. It’s a daunting task and the replanning process has already consumed many man-hours, often late at night with a bottle of beer in hand!

We have split this into three distinct phases: Q In-depth analysis of the business as it stands Q A reworking of the entire way the store is laid out and operated Q The implementation of these plans The first phase is well underway. We are turning the shop upside down to ensure we understand how every section, fixture and product is performing. We are examining sales by hourly period, by shift, by day, by week and by month. We are collating percentage and cash margins on every line and we are drawing up a list of products that have earned their keep and those that are failing. We will be ruthless.

And what we’re looking for at every point is an opportunity to grow profits.

It’s a nightmarish task but we reckon when we’re finished the process we will at least understand the store much, much better.

Arguably we should have made all of these learnings by now, but we are where we are and we’ve got to start somewhere.

The first phase will produce a set of procedures that will govern every aspect of how

SLR | AUGUST 2017

we run the store. From how newspaper returns are handled to how rolls are filled, from how ordering is done to how the hot hold is cleaned, from using the Epos efficiently to logging licensing and hygiene issues. Everything.

The resulting Procedures Manual will probably remain a work in progress for ever as it will constantly need refining and updating.

But the Procedures Manual will be the ‘go to’ document for all staff, new and existing.

The goal here is to remove inefficiencies. I believe all our staff work very hard and make the best decisions they can in all situations – but we want the Procedures Manual to prevent them even having to make those decisions.

We will require training, a reworking of the macro space layout and new planograms for each fixture. Every month we will try to keep you updated on how the Procedures Manual is progressing – and the impact it is having.

Some fixture reworking has already taken place, an extended 2-ltr and multipack soft drinks fixture swallowing up a largely unsuccessful £1 bay – perhaps since so many products are priced at £1 these days.

www.slrmag.co.uk

ISN’T IT TIME

YOU MADE A

delicious difference to your sales?

With the UK’s No.1 meat free brand* • Sales growth +10.7%* • High basket spend category with shoppers spending 4 times as much as the average convenience store shopper** • £10m media support in 2017 *Source; IRI 52we 28th Jan 17 – TOTAL UK VALUE SALES. **Kantar World Panel 2016 Quorn products contain Mycoprotein, which is nutritious because it’s a source of protein.

STOCK UP ON

TODAY

Inside Business

Woodlands Local | In-Store Trials

CHEWING OVER THE PRICEMARKED PACK DEBATE

WOODLANDSlocal

The role of price-marked packs in local retailing has been debated time and again, so we decided to put them to the test with the help of Wrigley in a unique in-store test.

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P

rice-marked packs. Retailers tend to either love them or hate them. Spar isn’t keen on them, Premier loves them – and it’s easy to see both sides of the debate.

Price marks restrict the margins retailers can make, particularly when buy prices rise but the price mark doesn’t. But customers love them because they deliver a promise of value and a reassurance that they are paying a fair price. So which way to go?

It’s with this in mind that Woodlands Local is currently working on a research project with Wrigley to directly compare the sales of products which are identical in every way, except for that important little price mark on the outside of the pack.

For the last month we’ve been selling a range of Wrigley sugar products – Starburst and Skittles – in the usual siting in-store and we have been monitoring sales all the while.

As of the start of August however, these packs were directly replaced with price-marked equivalents. Nothing else will change. There will be no extra facings or more premium sitings.

Only the actual packs themselves will change.

Come the end of August we’ll compare and contrast and we’ll be bringing you the results, hopefully contributing our tuppence worth into the debate about the role of pricemarked packs in convenience.

Tune in next month to find out what the numbers are telling us and what we have learned about the role of the price-marked pack...

Quorn continues to do the trick In the final month of our trial of a range of meat-free Quorn products, we have been pleasantly surprised to find that the brand is building a loyal following.

QUORN SALES STATS (SEVEN WEEK PERIOD) 1. Quorn Sausages – 31 (£1.99 RSP) 2. Quorn Cottage Pie – 22 (£2.29 RSP) 3. Quorn Deli Ham – 16 (£1.50 RSP) 4. Quorn Lasagne – 15 (£2.49 RSP) 5. Quorn Nuggets – 34 (£2.29 RSP)

MEAT-FREE: THE FACTS Q The meat-free category is now worth over £270m Q 73% of meat-free product purchasers are non-vegetarian Q Almost 9.5 million people buy into the category Q The Quorn brand accounts for more than half of all meat-free sales

SLR | AUGUST 2017

As reported in last month’s issue, we have been trialling a range of five meatfree products from category champion Quorn. The trial is part of our attempt to embrace the burgeoning ‘free-from’ opportunity, despite our reservations that our corner of Falkirk is perhaps not quite ready for this new trend!

With around 9.5 million people buying into meat-free products these days, according to IRI data, and almost three quarters of those non-vegetarians it seems that a significant minority of shoppers are looking for healthier, guilt-free products. It also helps that meat-free shoppers spend four times as much in-store as non-meat free shoppers, according to Kantar.

After having sold a surprising 62

units in just the fist few weeks of the trial, we now have more robust data to analyse. The results, as you can see, show that sales have slowed a little but remain remarkably consistent. Bear in mind that July was a slow month generally in Woodlands as it tallied with the traditional Falkirk holiday period, so we are more than pleased with the results.

The clear favourites were Quorn Nuggets and Quorn Sausages but every line has sold in reasonably solid volumes.

The lines will be permanently listed now and we’ve also added a range of gluten-free and dairy-free products as we see just how far we can go with the free-from market. www.slrmag.co.uk

What’s New? | Woodlands Local

Inside Business

WHAT’S NEW THIS MONTH? GAINING AN EDGE

NUTRITIONALLY-ENRICHED REFRESHMENT

WHAT? Edge e-liquids range WHY? Sales of e-liquids in the shop remain steady but slow. We put this down to the high price points of the Blu and Logic ranges we carry (around £5) so we’ve snapped up a range of seven British-made e-liquids at Booker that retail at just £2.50. We sold two within five minutes of putting them on the shelves so we’re hopeful! The range we now carry includes Forest Fruits, Strawberry & Lime, Blackcurrant, Virginia Tobacco, Strawberry Milkshake and British Tobacco flavours.

WHAT? Nurishment range WHY? Having moved all of our dairy lines out of the milk fridge to attempt to drive sales we have been left with a couple of shelves in what is now a dedicated milk fridge. We’ve decided to fill one shelf with Yazoo, already a big seller, and we’ve added a four-strong range of Nurishment lines which we hope will appeal to the many young people who drop into the shop before and after playing football on the pitch along the road most nights. We’re hoping the nutritionally-enriched lines will offer a healthier option to our customers – and something a little different.

PASTA PROFITS

STICK THE KETTLE MULTIPACKS ON

WHAT? Top’s Cuisine chilled pasta range WHY? Similarly, we’ve tapped into Filshill’s new Nisa chilled range to try a couple of pasta classics: Carbonara and Arrabiata. The price point is good at just £1.29 and the packaging looks the part.

WHAT? Kettle Chips multipacks WHY? Kettle Chips have long been decent lines in the store so we thought we’d give these multipacks a go, seeing as we seem to be selling more and more multipacks of crisps these days – probably because they’re all priced at just £1. The three variants we’ve gone for are Sea Salt & Balsamic Vinegar, Lightly Salted and the variety pack.

They’re on promo at pretty much half-price so they should fly – then we’ll see whether they still turn over when they go back up to £1.99. You never know, because these seem to enjoy a relatively small but loyal following.

CHIP SHOP CLASSICS

PIZZA THE ACTION

WHAT? McCoy’s Chip Shop range WHY? Strong flavours tend to do the trick in Woodlands so the new McCoy’s Chips range looks like a sure fire winner. Based on classic chip shop flavours, the Salt & Vinegar and Curry Sauce variants are already starting to shift well, price marked at £1. We’ve filled the shelf out with some £1 bag versions of the bestselling standard McCoy’s lines in the shop, Cheese & Onion and Flame Grilled Steak.

WHAT? Pizza Mia chilled pizza range WHY? Now that Filshill has access to Nisa’s chilled range, we’ve tried to add a bit of variety into our chilled offering with a couple of Pizza Mia pizzas. At £2.99 they’re decent value and the Barbecue Chicken and Meat Feast variants are in line with our shoppers’ typical tastes.

www.slrmag.co.uk

AUGUST 2017 | SLR

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Hotlines

Product News & Media Watch

Starburst Strawberry Wrigley Following a successful launch in the United States earlier this year, Wrigley has introduced Starburst Strawberry to the UK. The ‘Unexplainably Juicy’ limited edition packs will be made up solely of consumer favourite strawberryflavoured chews. Starburst Strawberry is available in single (45g), hanging bag (150g) and sharing pouch (165g) formats, including PMP options. A wide range of POS material is available.

Mexican Chicken sandwich Costcutter Costcutter has added a limitededition Mexican Chicken sandwich to its Independent range, filled with marinated chicken breast, tomato salsa, soured cream, lettuce, tomato, mature cheddar cheese and sweetcorn on soft malted bread, Price-marked at £2.69, the Mexican Chicken sandwich is available now and can be sold individually or part of the Group’s £3 meal deal offer.

Jelly Babies Tropical Maynards Bassetts Maynards Bassetts is bringing a taste of the tropics to the UK with the launch of Jelly Babies Tropical.

The new bag features the iconic Jelly Babies characters in Mango, Banana and Pineapple flavours.

The launch is supported by a total brand spend of £6m during 2017, including TV, PR and digital activity.

A full range of POS will also be available to help retailers drive excitement in store.

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SLR | AUGUST 2017

GoodnessKNOWS: Mars’ biggest launch in 20 years Mars Chocolate has announced the launch of GoodnessKNOWS, the company’s biggest brand launch in the UK since Celebrations.

Presented in four squares made from fruit, whole nuts, rolled oats and dipped in dark chocolate, GoodnessKNOWS can be eaten all at once, or broken up through the day.

Available this month, the new bar will be available in three varieties: Cranberry & Almond; Blueberry & Almond; and Apple, Peanut & Almond. It contains no artificial colours, flavours or preservatives, and weighs in at under 160 calories.

Good causes will also benefit from the new product. The brand will channel 10% of all sales profits to the ‘GoodnessKNOWS Fund’ that will support community projects and local initiatives.

Michele Oliver, VP – Marketing for Mars Chocolate UK, said: “Following a successful launch in the US last year where it became the third largest brand in its first six months, we’re thrilled to launch GoodnessKNOWS in the UK. “Not only is GoodnessKNOWS a greattasting treat, it provides the consumer with that little bit more – a product that can help to spread a little bit of goodness in their communities by giving back to good causes in a small way.”

Each GoodnessKNOWS single bar will carry an RSP of 90p, while a pack of three bars will RSP at £1.99.

Cadbury Dairy Milk Tiffin Mondelez Mondelez has brought back Cadbury Dairy Milk Tiffin as a permanent range addition to help drive excitement and growth within the tablets category. Available to order now, the 200g tablet combines the tastes and textures of biscuit and fruit covered in Cadbury Dairy Milk chocolate. Cadbury said it received an “incredible” response from the public when the bar was released as a limited edition last summer.

Quaker To Go range PepsiCo Porridge To Go Breakfast Squares and Fruit & Oat Squeeze pouches are both part of the new ‘Quaker To Go’ range. The former is available in two flavours as a single-serve (55g, RSP 75p) or twin pack (2 x 55g, RSP £1.39). Fruit & Oat Squeeze pouches (200g, RSP £1.39) is available in Red Fruit; Apple & Cinnamon; and Blueberry flavours.

Homepride Kids range Premier Foods Containing 80g of ‘hidden veg’ per serving, the Homepride Kids range is aimed squarely at parents with young, fussy eaters. Seven different flavours are available, giving a taste of Italian, Chinese, Caribbean, Indian and Thai dishes. Each pouch (RSP £1.29) contains two servings and has no added sugar, salt or preservatives.

www.slrmag.co.uk

Product News & Media Watch Walkers Oven Baked Fusions PepsiCo Walkers has added a new Fusions range to its Oven Baked selection.

The new snacks are available in Thai Chilli & Lime; Spicy Tomato & Herbs; and Cheddar & Red Pepper variants. All are available in multipacks with the latter two also available as singles. The range has an RSP of 70p for 35g single serve packs and £1.80 for the 6 x 22g multipacks.

Lucozade Sport FitWater Lucozade Ribena Suntory Lucozade Sport has rolled out a new produce, FitWater. Available in cases of 12, FitWater comes in 600ml bottles at an RSP of 89p. It taps into the fastestgrowing segment in soft drinks – functional water. The launch will be supported by a £3m media spend in September across outdoor, experiential and social media. A full range of point of sale materials will be available later this month.

Juices and Smoothies Spar Brand

Swan Kingsize Cigarette Tubes and Tubing Machine Republic Technologies New from Swan, Kingsize Cigarette Tubes taps into the £1.9m tubing market with a product that allows consumers to make their own cigarettes. Packs of 100 Standard tubes have an RSP of 99p (£1.98 for 200), with Menthol priced at £1.25 and £2.50. To help fill the tubes, a Swan tubing machine (RSP £3.64) is also available.

Spar has refreshed its juices and smoothies ranges for summer, with Mixed Berry joining the Spar Brand 250ml Smoothies (RSP £1) line-up.

A range of one litre Smoothies (RSP £2) also joins the roster, in Mango & Passionfruit and Strawberry & Banana flavours. Finally, new Cranberry & Raspberry flavour slots into the one litre Juice range (PM two for £2.25, keeping Spar’s offering “relevant for 2017”.

Hotlines



MEDIAwatch Much ado about nutting KP Nuts is back on screens for the first time in 24 years as part of a new £3m multimedia campaign, which also features on over 1,300 out-of-home sites. Online, instore and social media activity is also scheduled. The ad – titled ‘The Nut Nut’s Nut’ – encourages yearround consumption of nuts by driving KP’s taste and quality credentials.

Tasty refreshment for the nation Britvic has launched a £3.5m marketing campaign to support Robinsons Refresh’d, spearheaded by two TV ads. These feature a drinking straw bouncing around the countryside on a search for the ultimate in fruity refreshment. Other activity includes outdoor advertising, social media and a nationwide sampling campaign.

Feeling good about soft drinks Nichols has launched a £2.2m campaign for its adult soft drink Feel Good Drinks. The brand is giving away over 70,000 samples in cities across the UK throughout the summer, supported by online, PR, outdoor and broadcast activity. The brand also filmed 100 women taking a skinny-dip in Malaga, to be featured in a forthcoming ad.

Top banger status for Richmond Goodness Bars The Food Doctor

Polish confectionery Hancocks

Healthy snacking brand The Food Doctor has rolled out a four-strong range of 40g Goodness Bars.

Variants include Apple & Walnut, Apricot & Almond, Fig & Mango and Pineapple & Banana. RSP is approximately £1.20 and bars come in SRPs of 20. Stand-out till displays and POS are available. For further information or to stock, contact hello@thefooddoctor.com.

Hancocks has introduced a limited range of Polish confectionery under the Wawel brand. The six products are initially available in Scotland from the Glasgow depot only. These are: Milk Chocolate & Peanut; White Chocolate & Peanut; Truffle; and Chocolate & Fruit treats (all 195g, RSP £1); Chocolate Mints (165g, RSP £1); and Krowka Mleczna Creamy Fudge (250g, RSP £1.69).

Richmond has returned to TV screens to celebrate its status as the nation’s favourite sausage. The new advert centres on a local hero to demonstrate what it is like to be the ‘nation’s favourite’. The ad coincides with the re-launch of the brand, which includes a packaging redesign to modernise and enhance its quality credentials to shoppers.

Choose your cheese Jacob’s is highlighting the introduction of three new Mini Cheddars flavours with a new TV advert. Set in the fictitious Cheddar Appreciation Society’s private members club, the ad features a group of eccentric Cheddar lovers adorned with costume mouse ears and whiskers. The new variants will be available for a limited period only.

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

AUGUST 2017 | SLR

35

Feature

Back To School

HEALTHY START

BY ANTONY BEGLEY

A

ugust is a key month for retailers, especially those who live within walking distance of schools, colleges or universities. After a summer where sales can be distorted by the change in shopper profile while schools and colleges are off, it marks the month when the pupils and students are back, and for retailers, that represents an opportunity. The question to answer is: what to put in the lunchbox?

The answer to that question is increasingly focused around the ‘healthier’ opportunity, but value remains a priority, as it always does these days.

VALUE VITAL “Young adult students usually have a limited income and are attracted to discounts and multibuys when shopping in order to save money, so the key to reaching the young adult market is offering value,” says Amy Burgess, Trade Communications Manager at Coca-Cola European Partners (CCEP).

“To target these consumers, retailers should look to stock formats like 1.75L bottles of Coca-Cola Zero Sugar for sharing and 330ml multipacks of Fanta, to enhance perceptions of value for student customers.

“PMPs also help to highlight value and encourage young adult student shoppers to try new products. We offer a wide range of price-marked Coca-Cola packs across both our immediate and future consumption formats, including £1 500ml bottles, 65p 330ml cans, and 1.75L PET bottles priced at £1.69.

“We also offer a large selection of other PMP products including £1 500ml bottles of Fanta, 89p Capri Sun pouches and £1.19 cans of Monster Energy and Monster Energy Ultra, while the entire Relentless energy range is available in £1 packs.”

HEALTHIER OPTIONS Along with value, today’s shoppers are increasingly seeking healthier options for breakfast, lunch and dinner. Fruit is practically a given when it comes to the lunchbox, but most parents have probably had their child return home with everything in the lunchbox eaten apart from the slightly bashed banana and an untouched apple.

Current market trends show, therefore, that parents are looking for products that are healthy, without compromising on taste. To meet this demand for a healthy and convenient snack, fruit-pot specialist 36

SLR | AUGUST 2017

As pupils and students start back after summer, their lunchboxes are in desperate need of filling – and healthier options are the way to go.

Nature’s Finest offers a range of 220g pots in Mandarin, Peach, Pineapple and Tropical Fruits, with a fork included.

But there sometimes needs to be a little bargaining chip tucked in besides the sandwiches to make sure kids eat everything.

Whilst this might be a chocolate bar or a bag of sweets, it doesn’t mean it can’t be healthy as part of a balanced diet.

“An increased awareness of healthier eating is having a major impact in savoury snacks, as consumers look for more permissible options,” says Susan Nash, Trade Communication Manager at Mondelez International. “The trend is driving a shift away from snacks such as crisps – which may be considered unhealthy – and a growing appetite for products which are baked, not fried. As a result, the Crisps category is currently seeing a decline of -6.0% in value sales, while Popcorn and Savoury Snacks are growing at +1.6% and +13.9%, respectively.”

Mondelez-owned Ritz is focused on unlocking new occasions and has already successfully tapped into growing consumer demand for ‘better for you’ snacks with the launch of Ritz Crisp & Thin, which is now available in 30g packs, making them ideal for the on-the-go lunchbox occasion, in three popular flavours: Cream Cheese & Onion; Sea Salt & Vinegar and Sweet Red Chilli.

Protein and meat snacking are both becoming increasingly popular within the lunchbox snacking category as there is greater awareness of the benefits of protein and ‘better for you’ snacks amongst consumers.

To further meet this demand, in March 2017, Pepperami launched a new Beef variant to sit

CCEP’S BACK TO SCHOOL AND COLLEGE ADVICE Q Choice and value for money are important for young adult students, so it is important to offer a balanced range with a selection of premium and value brands, different pack formats, original and low sugar options, and a variety of different flavours, sub-brands and variants.

Q Consider the success of existing ranges, and consumer demand for other options when exploring new lines to stock.

Q Keep up to date with new product development and the brands that are benefiting from marketing investment as these are the lines that can attract the greatest interest from consumers.

alongside its pork sausage snack. “We predict the market for protein and meat snacks will continue to rise over the next year and as a brand we are committed to meeting consumer needs and responding to current trends,” says Pavan Chandra, Senior Brand Manager at Peperami’s parent company Jack Link’s.

HYDRATION Hydration is always important and even in this area, the trend is clearly towards healthier low and no sugar options. “Young adult students are increasingly health conscious and it’s a trend only set to grow in 2017 and beyond,” says CCEP’s Burgess. “As a result, low or zero sugar drinks are playing an increasingly important role and we offer calorie free versions across our portfolio, including the fastest growing top-five cola brand Coca-Cola Zero Sugar and Monster Energy Ultra.”

Burgess says there will be a continued focus from CCEP in 2017 on the innovation of lower or zero calorie products to meet this increasing consumer demand, and help retailers offer more choice to young adult student shoppers.

She explains: “2017 has already seen the latest zero-calorie options hit the market, including new Monster Energy Ultra Citron and glacéau smartwater sparkling. They join brand portfolios that have enjoyed sales success over the last 12 months, thanks to their low or zero calorie formula.

“These new additions to our portfolio are the result of a £30m investment (2012-2017) in reformulation and new product development, all of which is focused on providing great tasting lower and no sugar drinks.”

Since 2005, CCEP has launched 29 new drinks with reduced sugar or calories and every product it offers has a lower or no sugar option. The message is clear. And it’s the same strategy across the board from other water and soft drinks suppliers like AG Barr, Britvic and Lucozade Ribena Suntory.

AG Barr’s Strathmore Water continues its three-year sponsorship deal as the bottled water at all British Athletics events through to 2019 and the continued promotion in schools of healthy, active lifestyles make the 330ml bottles a good fit for the kids’ lunch occasion.

Also from AG Barr is children’s favourite Simply Fruity in 330ml sports-cap bottles available in four flavours: Orange, Blackcurrant & Apple, Strawberry and Apple.

The manufacturer says it is popular with kids under the age of 10, with sales figures currently at over 20 million bottles every year. www.slrmag.co.uk

e t s a t n u s i r p a C great R A G U S D E D D A O N with

AVAILABLE IN PACKS OF 5 AND 10 STOCK UP NOW!

THE TASTE OF FUN CAPRI-SUN® and the Pouch Shape™ are trademarks of the Capri Sun Group

Impulse

Feature

TIME TO

freshen up

IMPULSE SALES? Impulse sales are the heart and soul of local retailing, helping to push up basket spend and deliver the vital extra sales and profits that today’s retailers vitally require in today’s uber-competitive marketplace.

BY ANTONY BEGLEY

U

nplanned purchases are what local retailing is all about these days and never have they been so important.

Driving regular footfall is one thing, but capitalising on it is what makes convenience retailing tick in today’s ultracompetitive trading environment. Encouraging every shopper to add just a single item into their basket that they hadn’t intended to buy can make a huge effect on a store’s profitability at the end of a year – but where to start? The key is in being proactive.

But what exactly does proactive mean?

Well, it turns out it means a lot of things, but all of them involve putting a little extra thought and a little extra effort into ensuring that your store is set up to offer customers as many nudges as possible to encourage them to add an item or two onto their planned basket spend.

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SLR | AUGUST 2017

UPSELLING One of the most successful methods of driving impulse sales is in the efficient, but notoriously difficult practice of upselling at the till. It’s easy to do it badly, as countless retailers in train stations do by offering every shopper an enormous bar of chocolate for £1, regardless of what they’re already buying or whether they look like the sort of person who might want a slab of chocolate.

Do it well however and it can drive huge incremental sales. The former David Sands business made it a core activity in their stores, often choosing highly desirable, high margin, high value products like punnets of local strawberries to turbo-charge basket spend.

Who doesn’t like fresh, local strawberries?

CJ Lang now routinely practises upselling at the till and while it can be difficult to ensure staff completely ‘buy in’ to the idea, when it’s done well it works wonders.

THE RIGHT RANGE Not everyone has access to plump local strawberries of course, but staying aware of the key impulse categories means you needn’t miss out. They key impulse categories – certainly in terms of driving volume sales – remain the old favourites: confectionery, gum, soft drinks, crisps and snacks.

The most obvious place to drive impulse sales is at the tillpoint, but don’t forget to put in place a strategy that will create impulse sales throughout the store. Aisle ends are great for promotional stock and clip strips can be used throughout, particularly for linked purchases. The area around the entrance is great for dump bins and seasonal displays and even on all major fixtures you can still push up impulse sales by keeping the fastest rate of sale products at eye level.

Every fixture on your store should be laid out with impulse purchases in mind.

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Introducing goodnessKNOWS®. Each pack contains

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4.6m planned media spend!

10% of profits go to a good cause ®/™/Design/Mars ©Mars 2017.

New goodnessKNOWS® comes in 3 delicious flavours: Cranberry & Almond, Blueberry & Almond and Apple, Peanut & Almond.

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Feature

Impulse

MERCHANDISING GUM Wrigley’s five simple steps to help successfully manage gum sales…

1. Availability is key – gum is more impulsive than any other confectionery line so re-stock each morning and prior to peak traffic times.

2. Stock best-sellers such as Extra Peppermint, Extra Spearmint, Extra White and Airwaves.

3. Champion new products – e.g. Extra resealable 21 piece hanging bag, and Extra Cool Breeze Bottle.

4. Multiple gum sitings – e.g. next to a second till point, confectionery aisle or dental section to drive additional purchases.

5. Offer a wide choice of pack formats and flavours – to meet different consumer demands e.g. stock bottles, stick and pellets, as well as a variety of flavours.

40

GUM CATEGORY ADVICE PROFIT Q By optimising your gum sales you will grow total front of store profits.

Q Gum is a significant margin provider. At RRP, Wrigley’s gum typically delivers over 30% profit.

IMPULSE Q Almost half of shoppers in the UK buy gum.

Q Nine out of 10 of shoppers who interact with gum will buy it.

Q 62% of single gum purchases are unplanned, so make your gum range visible at front of store and shoppers will buy it!

DESIRE Q Almost half of gum consumers chew gum weekly and expect to find it at the front of store.

Q Ranging gum at the front of store ensures your shopper’s ‘must have’ product is available.

EFFICIENT Q Gum displays are highly space efficient and are easily merchandised.

Q Typically, a standard impulse gum display holds 608 individual packs.

HEALTHY Q Sugarfree gum provides shoppers with a guilt-free healthy option.

Q Extra Sugarfree gum is accredited by the Oral Health Foundation.

NPD

GUM GAME

NPD is a particularly strong driver so why not dedicate some permanent tillpoint space to NPD? There is no shortage of great new products for retailers to build activity around, often backed by big money marketing spend.

A great example is new goodnessKNOWS from Mars, available this month. Mars describes the new brand as its “biggest launch in 20 years” and is throwing £4.6m behind the launch. Even better, 10% of profits from sales will go to a “Goodness Knows Fund” that will support community projects and local initiatives.

Coming in four snackable squares with fruit, whole nuts, rolled oats and dipped in dark chocolate, goodnessKNOWS is pitched as a shareable treat that can be eaten all at once, or broken up through the day. The product will be available in three varieties: Cranberry & Almond, Blueberry & Almond and Apple, Peanut & Almond, all with an RRP of 90p.

It contains no artificial colours, flavours or preservatives and contains fewer than 160 calories.

Michele Oliver, VP – Marketing – Mars Chocolate UK, says: “Following a successful launch in the US last year where it became the third largest brand in its first six months, we’re thrilled to launch goodnessKNOWS in the UK. “It has been created to fit in with people’s busy lifestyles, coming in four squares that can be enjoyed all at once or eaten throughout the day. However, it is not just snacking on the go, consumers increasingly want products that match the values they live by.

Not only is goodnessKNOWS a great-tasting treat, it provides the consumer with that little bit more – a product that can help to spread a little bit of goodness in their communities by giving back to good causes in a small way.”

Cadbury Dairy Milk has also been busy on the NPD front with its Big Taste lines in a handy 43g single format that is ideal for the impulse market. Cadbury Dairy Milk Big Taste Toffee Whole Nut combines the textures of whole nuts with toffee smothered in Cadbury Dairy Milk chocolate. The product is ideal for shoppers looking for textured eats, chunky bites and intense chocolatey flavours when they’re on-the-go or during the afternoon dip.

No overview of impulse sales would be complete without a look at the daddy of impulse sales, gum. The category is worth over £263m [Nielsen, Mar 2017], although a whopping £248m of that is accounted for by Wrigley alone.

As in so many categories these days, the growth is coming through sugar-free variants and Wrigley expects this trend to continue – so this should be reflected in the gum fixture in-store.

The Wrigley Extra brand alone is worth £205m with the core flavours – Peppermint and Spearmint – mopping up £131m worth of sales themselves.

NPD is just as vital in the gum category when it comes to creating impulse sales and the launch of the Extra gum bottle range has helped grow the category and encourage customers to trade up. Julio Guijarro, Marketing Director, Wrigley UK, says: “Bottle formats are seeing increasing success, with the trend towards snacking at work and eating and drinking on the road being key to their performance.

Consumers are looking for a convenient way to keep their teeth clean and healthy after eating and drinking, when brushing isn’t possible. Wrigley’s bottle formats (offering both 46 and 60 pellets) meet this demand – they’re ideal for desk or car and are a great oral care solution for those who graze frequently throughout the day.

They have seen 19% growth in the last 12 months [Neilsen, Mar 2017].

New price marked packs and price marked hanging bags have also helped add some excitement into the category.

SLR | AUGUST 2017 017

KEY IMPULSE POINTS Tillpoint End of Aisle Clip strips Shelves by the till Q At the door Q Eyeline on shelf Q Q Q Q

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Feature

Impulse

AG BARR’S SOFT DRINKS MERCHANDISING ADVICE Q Soft Drinks is one of the most profitable categories in your store, so ensure that your soft drinks fixture is highly visible, well presented and located in a high football area between the door and the till.

Q Effective ranging, space allocation and stock availability are the most important elements to get right.

Q Make it easy for customers to find what they want by grouping categories and brands within them together. Then identify your best performing brands in each category and stock these at eye level with adequate facings to ‘signpost’ segments.

Q Restock regularly, especially during the summer months to take advantage of the increase in ‘drink now’ impulse purchases. If a product is selling out regularly increase the number of facings. Empty shelves equate to lost sales, so we’d advise reviewing your range and space allocation often based on your own sales data and local knowledge.

Q Retailers need to ensure that their range is tailored to local tastes, so they should talk to their customers to find out what they want, stocking the top performing brands in each category as we as brands tailored to regional and local tastes.

CONFECTIONERY Confectionery is another must at the tillpoint, as Susan Nash, Trade Communications Manager at Mondelez International explains: “The confectionery category is one of the biggest opportunities to drive sales in store. Confectionery is the most impulsive category [CPT 2015], meaning it can really help you drive your sales – in particular incremental sales. Around 19% of shoppers will visit just the till area and nowhere else in store [HIM, 2014].

“A huge 70% of purchase decisions are made in store, which makes display and category management vitally important tools. By stocking a range of exciting confectionery singles and merchandising them effectively, retailers can ensure they make the most of the impulse opportunity.”

CADBURY’S FOUR KEY STEPS TO MAXIMISING IMPULSE CONFECTIONERY SALES 1. Make it easy for consumers to find products.

2. Use impactful units to help display products clearly.

3. Create displays that inspire purchases throughout the year – a massive 70% of purchase decisions are made in store.

4. Customers expect ‘on the go’ snacks to be visible and accessible from the front of the store, so merchandising them by other relevant products can be very effective.

42

SLR | AUGUST 2017

SOFT DRINKS Scotland’s £830m soft drinks category [IRI, Jan 2017] continues to be one of the most profitable categories for convenience retailers, particularly in summer – and plays a vital role in impulse sales.

But to keep leveraging the category as efficiently as possible, retailers must keep up with the latest shopper trends, says Adrian Troy, Marketing Director at AG Barr.

“The soft drinks market has evolved, with shoppers increasingly looking for greater choice at the fixture,” he says. “AG Barr is encouraging retailers to ensure that their soft drinks range includes a wide variety of low and zero sugar variants to cater for the needs of all Scottish shoppers.”

Troy highlights Irn-Bru Sugar Free, Scotland’s No.1 low-calorie flavoured carbonate [IRI, Jan 2017], as a must stock, as well as IrnBru Xtra, the first new permanent product from Irn-Bru in 35 years.

The same low and no sugar trend applies to flavoured waters and energy drinks – so it’s vital that retailers review their ranges to ensure they are not missing out on impulse sales by failing to stock the lines shoppers are looking for.

Positioning in-store also plays a key role – for example, shoppers that are looking for a healthy option tend to look at the water fixture in the chiller, so AG Barr recommends that Rubicon Spring is stocked in the chiller cabinet, sited between carbonates and water. Irn-Bru Xtra should be merchandised between Irn-Bru’s regular and sugar-free brand variants.

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Category Management

Feature

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HOW PROACTIVE IS YOUR APPROACH TO...

CATEGORY

MANAGEMENT?

44

SLR | AUGUST 2017

www.slrmag.co.uk

Category Management

Feature

Efficient category management is vital to maximising sales and profits in a convenience store; the fact that it can be a time-consuming and tricky task should not put retailers off, says SLR.

W

hat exactly does category management mean? The true answer is probably that it means different things to different retailers, but the endgame is exactly the same: optimising sales and profits in your store. The bones of category management are pretty simple to outline, but actually implementing them in a live retail environment can be another thing entirely. With so many moving parts in a typical Scottish convenience store, it can be a devilishly complex task to properly manage every category in the store, paying particular attention to the top eight or 10 categories that deliver the vast majority of sales and profits.

In reality, it’s practically impossible to be aware of every variable every time, which is why it makes sense to accept your limitations and instead rely on the technology and support that’s out there in abundance to help make the critical task of category management quicker and easier for you and your team. If there was ever any doubt, the answer is no longer about working harder, it’s all about working smarter.

One of the smartest things you can do, of course, is remain open to taking on board the advice of the many massive suppliers who are prepared to work with you to make the best of your business. If you win, they win. It’s that simple.

Knowing your customers’ shopping habits gives you a distinct advantage when it comes to getting them to fill their basket.

Thankfully you’re not alone in trying to work this out, as this indispensible guide to category management shows.

Yes, we all know that manufacturers are www.slrmag.co.uk

prone to offering category advice that is biased to some extent towards their own products and brands – but an experienced retailer can spot these subtle biases quickly and easily and will still find much that is useful in the plethora of advice available from companies like Wrigley, Tetley, Heineken, Blu, pladis and Imperial Tobacco.

These companies spend millions understanding their category, investing in it, launching new products to liven it up, and more. Most of the time they really do know what they’re talking about and they only way they can make sales is when you make sales.

It’s an interdependent relationship and requires both parties to play the game and work together to deliver the crucial sales all stores need in today’s marketplace.

The reality is that these companies do indeed have a strong interest in category growth, not just brand growth – and if the category grows, retailers benefit.

when it comes to the key categories. Good category management in top categories looks remarkably similar across convenience stores. The fact that the beer fixture is in a different place and is a different size in each store doesn’t fundamentally affect how that fixture should look, for instance. Best practice is best practice and that’s what every retailer is aiming for. Ranging and merchandising those categories that drive the revenue of every store requires a structure that should be replicated throughout the land.

It is highly likely that around 90% of your sales come from around eight or so categories. These are the categories that keep your store alive and are the reason most people come into your store at all. With a limited amount of time at your disposal, the smart route is to focus firstly on these categories.

UNIQUE CHALLENGES

At the heart of category management are some very simple focuses: availability, range and merchandising. or, to put that another way: get the right range for your customer base, keep it in stock at all times, make sure your products are where customers can easily find them and make the fixture attractive and eyecatching.

Every single convenience store in Scotland is different, which brings category management challenges not faced to the same extent by supermarkets or discounters where the big box format is replicated almost like-for-like across stores.

That doesn’t mean however that each store should be treated differently, particularly

THE BASICS

AUGUST 2017 | SLR

45

Feature

Category Management

even non-existent at the other. The goal for modern

If you’re a member of a symbol group, you should have as much support and advice as you need to achieve all of these aims day in, day out. The trick is to keep checking that the advice you are following is reliable and up to date, and that you are implementing that advice efficiently and effectively. With a thousand tasks to complete every day, category management is often pushed down the priority list to make room for issues that are seen as more pressing. But it’s vital to diary in some regular time to review your practices, particularly around those key categories.

retailers is to move up the ladder at all times.

RANGE

APPROACHES TO CATEGORY MANAGEMENT There are a number of ways (as defined by IGD) that retailers will typically approach category management, from the extremely proactive at one end of the spectrum to to the extremely reactive, or

1. Strategic (full process, cross-functional collaboration, customised research & initiatives, strategic alignment) 2. Innovative (shorter streamlined process, little customised research, selective investment, test new initiatives) 3. Tactical (informal process, tactical quick wins, ranging & merchandising, promotions, etc) 4. Transactional (sales-focused approach only, minimise costs) 5. Do not actively practice category management 46

SLR | AUGUST 2017

Modern Epos systems make checking your sales data a breeze. Merging that storespecific data with regional or national data provided by your symbol group or by a big manufacturer is the real challenge here. It’s more of an art than a science. While you may have some very quirky sales trends the truth is likely to be that your perfect range isn’t all that different from a store a hundred miles away.

Review your range regularly and don’t be afraid to delist slow-selling lines and add in NPD, particularly if that NPD is backed by big-money marketing campaigns.

AVAILABILITY You can’t sell it if you’re customer can’t find it. Put in places measures to ensure your ordering system gets enough stock in on each delivery to make sure you don’t end up with out of stocks. This is clearly even more vital in key categories and in categories with high rates of sale like soft drinks, tobacco and alcohol.

It’s also important to put in place systems that make sure stock in the storeroom makes its way regularly and efficiently onto the shelves. There’s little more frustrating than missing sales of a product because the shelf was empty but there was a case of it sitting the store room. www.slrmag.co.uk

Category Management

MERCHANDISING Most retailers have access to more POS than they could possibly use but the vast majority of it is free and much of it is great quality.

Whether its HODs or shelf edge strips, bus stops or wobblers, there’s plenty of equipment available to bring a fixture to life and push up those critical impulse sales.

A little bit of in-store theatre can also go a long way, especially if it’s themed around important or seasonal events like big sporting competitions, local community events, Easter, Halloween or Christmas.

Create some excitement and your customers will buy into it and appreciate the effort.

MISSION SHOPPING One trend that has impacted on traditional category management practices has been mission shopping. Creating mission zones in store – for breakfast or dinner for tonight or big night in, for example – has blurred the category management lines, dragging products into areas of the store where they’ve never been before.

The key here is in communicating these zones efficiently to shoppers. They’ll still set out to look for a 2-ltr bottle of Irn-Bru on your ambient carbs fixture unless you make it easy for them to understand the big night in fixture by signposting it clearly and explaining to them why the fixture exists.

Mission shopping only adds another layer of complexity to an already complex process but it doesn’t change any of the fundamentals of category management.

At the end of the day, we know that we can’t get it right every time – but that shouldn’t stop us trying. Every improvement you make helps create a better environment for your customers and happy customers spend more.

This guide will help you achieve exactly that – and don’t be afraid to contact the manufacturers featured if you want more support and help from them. www.slrmag.co.uk

1 0 1

CATMAN

Feature

The bare minimum that retailers should be aiming to achieve should include: Q Review EPoS and place orders according to sales, not habits Q Listen to advice from suppliers Q Regularly review range and delist slow sellers Q Know what NPD will be in greatest demand Q Train staff to minimise out of stocks Q Make promotions highly visible Q Walk your shop like a customer – do you like the layout? Does it encourage you to spend more?

Q Regularly visit your competitors – how does your ranging and merchandising compare?

Q Use secondary and tertiary sitings Q Make use of POS and other in-store theatre

AUGUST 2017 | SLR

47

ON A MISSION:

CONTROL

Consumer shopping habits are changing and retailers need to think about making stores easier to navigate based on key shopper missions at different times of the day. Understanding these individual shopper missions will enable retailers to merchandise effectively, and in turn boost sales.

77%

of consu useful to h mers find it ave purchased commonly pro merchand ducts ised together 1

Retailers need to think about making stores simple to navigate through cross merchandising and cross category promotions. Wrigley has identified its top two missions to ensure efficient mission management in store.

Food to go represents 15% of all shopper missions2 in the convenience

channel , as shoppers look for simple solutions and value for money via meal deals and promotions, such as sandwiches, soft drinks, confectionery and gum merchandised together so they are easy to find.

EFFECTIVE MISSION MANAGEMENT FOR RETAILERS: USE ADDITIONAL MERCHANDISING UNITS to locate impulse lines such as gum and confectionery beside food to go to drive additional sales

Hot Beverages on the Go provides

retailers with a shopper mission which enhances the possibility for dual siting’s.

With 29% of chewing occasions taking

place directly after consuming hot drinks3, retailers can place small gum displays beside coffee machines to encourage additional impulse purchases and boost product visibility.

CONSIDER CROSS MERCHANDISING confectionery, snacks and soft drinks to create a ‘Food to go’ fixture UP-WEIGHT BASKET SPEND by offering a cross-category promotion with coffee and gum

DUAL SITING’S boost product visibility and an association with the product and the mealtime occasion USE GONDOLA END DISPLAYS to engage shoppers with a specific mission area

TOP 10 SELLING GUM

RECOMMENDED GUM RANGE:

4

1. Extra Peppermint Bottle Pellets 60’s Single 2. Extra Spearmint Bottle Pellets 60’s Single 3. Extra Peppermint Pellets 10’s Single 4. Extra Spearmint Pellets 10’s Single 5. Extra White Bubblemint Pellets 10’s Single 6. Extra Cool Breeze Pellets 10’s Single 7. Extra White Bubblemint Bottle Pellets 46’s Single 8. Airwaves Menthol & Eucalyptus Pellets 10’s Single 9. Extra Ice Peppermint Pellets 10’s Single 10. Extra White Bottle Pellets 46’s Single

PRICE MARKED PACKS Top selling lines EXTRA® White Bubblemint and AIRWAVES® Menthol & Eucalyptus 46 piece bottles are now available in £2 RRP price marked packs, joining the no.1 and no.2 best selling SKUs. The bottle format is driving growth, up 11.4% in the last year.

Designed to help retailers improve rate of sale, PMPs from Wrigley appeal to customers looking for value for money from trusted brands.

Work with your Wrigley representative to help maximise your gum sales, or visit www.wrigley.com/uk Ref 1: Ref 2: Ref 3: Ref 4: Ref 5:

HIM! 2016 CTP HIM! 2016 CTP Ipsos Reasons to Chew 2014 Nielsen Scantrack Independents and Symbols VROS L12W to 25.02.17 (excluding bubblegum and skus in < 10% distribution) HIM! Omni-Channel Barometer 2015

MORE T THIRDS HAN TWO OF S BUY PM HOPPERS CONVEN PS FROM IENCE S TORES! 5

Stock up on Scotland's favourite hot beverage the right teas can boost sales and profits.

Category Drivers Balanced promotional plans Added value/PMP

Occasions & Events Inspiration

Ranging & Merchandising Education

TOP SELLING BRANDS

67% OF TEA SALES

COME FROM THE

41%

TOP 4 BRANDS Total Scotland

13%

7%

AC Nielsen Scotland volume share 17.6.17

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Black teas are currently over trading in convenience stores.

Everyday tea sales volume %age share AC Nielsen 17.6.16

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By 2027 non-black tea will be as popular as black tea With improved lifestyles, healthier sectors are attractive to shoppers

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TOP SELLERS IN TEA

Top Everyday Black

Top Speciality

Margins are HIGHER in the growth sectors in tea

TOP SKUs in the key sectors will deliver more

Keep your offering FRESH with products that add a Wow factor

Top Black Decaf

Top Green

Top Fruit & Herbal

Top Redbush

Impulse AC Nielsen Unit ROS 17.6.17

MERCHANDISING THAT MATTERS CORE RANGE

MORE SPACE FOR TEA

Stock the top sellers in each tea segment you select for your store Stock top brands in everyday black and include a mix of pack sizes to cater to different shopper missions

Complement your core range with a selection of teas from the on trend segments to drive growth in tea sales and appeal to a broader age range, the Tetley Super range taps into the interest in health and sales are strong.

Demonstrate value and give shoppers the confidence to buy.

Take care not to drive prices down and leave room for higher margin added value teas

Offer smaller pack sizes to cater to different shopper missions and encourage trial of new higher margin teas

INSPI RE

PACKS LER

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Linking products to an occasion e.g. breakfast or health, can help sales across categories and encourage shoppers to put more products in their basket.

To find out more about Tetley go to: www.tetley.co.uk facebook.com/TheTetleyTeaFolk twitter.com/tetley_teafolk Tel: 0800387227

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MAXIMISING THE TOBACCO CATEGORY IN A POST-STANDARDISED-MARKET Darsh & Rishi Patel own two stores in the Southampton area and have recently opened their third, located next door to a large national convenience retailer. Their main business objective is to increase footfall in all three stores and despite recent legislative developments they firmly believe the tobacco category remains a key driver in helping to achieve this.

WE ASKED DARSH ABOUT HIS CONCERNS AROUND THE NEW LEGISLATION...

I was worried about customers being confused with EUTPD II and standardised packaging, and blaming retailers for it. I was also concerned that people would think that national retailers would price more competitively than independent stores, especially as price marked packs were phasing out.

Imperial understood that independent retailers like Darsh had legitimate concerns around the new legislation, and were determined to provide a best practice framework to partner for success moving forwards!

QUALITY

BLEND

For Tobacco Traders Only

HOW IMPERIAL HELPED DARSH MANAGE THE TRANSITION… What support did your Imperial Tobacco sales representative provide you with?

“

Our sales rep was really supportive and proactive in guiding us through the legislation.

The START packs she provided us with contained many resources and tools which helped my staff and me offer our customers the best service while being legally compliant.

”

What actions did you take in store?

“

We worked with our rep to merchandise our gantries and label all products before plain packaging came in so we became familiar with the new layout. We also did the same in our stock rooms to ensure we maintained availability, plus continued to stock up the gantry while rotating stock to ensure we sold through all branded packs before the May 20 deadline.

”

How did you help your consumers?

“

We made sure that all our staff were fully trained on the brand variants so they could advise our customers and minimise transaction times. Something else that helped inform the customers were the information cards around the legislation and how it affected them as smokers. We also made sure that we clearly displayed that we priced at RRP or below* to ensure we kept our customers loyal.

”

WHAT IS YOUR ADVICE TO OTHER INDEPENDENT RETAILERS? Continue to work with your Imperial Tobacco rep. You only need to make small changes in your store, but they can have a really positive impact.

DARSH’S TOP TIPS FOR FUTURE SUCCESS

1 2

Pick your top selling lines and order an additional three outers of those – availability is key!

3

Organise your stock room and make sure you label all stock so you can see what brands you have and what needs to be ordered to avoid mistakes.

4

Invest in staff training. With the help of our rep we make sure our customers receive the best service possible. We also keep training records that are signed by our employees so we can keep track of their development.

5

Avoid over pricing: always price at RRP or below* and communicate this clearly with a price board and sticker. This fosters shopper loyalty and benefits us through increased footfall and basket spend.

Make sure you restock your gantry regularly. We find first thing in the morning and mid-afternoon after the lunch time rush works best.

D N A I I D P T U E H G U O R …TH R D I S E D PAC K AG I N G STAN DA *For the avoidance of doubt, retailers are free at all times to determine the selling price of their products.

www.imperial-trade.co.uk

Feature

Carbonated Drinks

LOW SUGAR KEEPS CARBS MARKET BUBBLING OVER

From cola to water, value to premium, and everything in between, the carbonated drinks sector continues to perform and it’s all about low or no sugar these days.

BY IAIN HOEY

M

ost local retailers in Scotland won’t need to be reminded that the country’s £830m soft drinks category [IRI Jan 2017] continues to be one of the most profitable in the business. But while the versatility and diversity of the category is one of its key strengths, there’s zero doubt about where the major manufacturers see the future of the category: zero or low sugar.

Carbonated drinks will be among the hardest hit following the sugar tax, and manufacturers have already made big progress with NPD and reformulations to meet evolving consumer tastes, but retailers need to be on board too if they are the continue to get the best out of a vital category.

“For retailers, offering a wide choice of different products, including a range of flavours and variants, as well as pack formats, is the key to making the most of soft drinks sales,” says Amy Burgess, Trade Communications Manager at Coca-Cola European Partners (CCEP).

“Especially important is keeping a wide selection of low or zero sugar drinks, and retailers should constantly review their soft drinks range as manufacturers innovate new lighter options to meet rising consumer demand for healthier options.”

Burgess also confirms that CCEP’s future strategy will be focused on innovation in the lower or zero calorie end of the market, following the huge relaunch of Coca-Cola Zero Sugar last year.

AG Barr seems to be in agreement, with Adrian Troy, Marketing Director, stating his belief that the industry should be “encouraging retailers to ensure that their soft drinks range includes a wide variety of low and zero sugar variants to cater for the needs of all Scottish shoppers”.

The trick, says Troy, is providing consumers with low and zero calorie alternatives but still 60

SLR | AUGUST 2017

retaining the full-flavour provided by their sugary counterparts. Barr’s response to this challenge was the launch around a year ago of Irn-Bru Xtra.

CCEP’s response was the launch of CocaCola Zero Sugar last summer, which “followed years of research and development to get the recipe even closer to the 130-year-old original to encourage more Coca-Cola Classic drinkers to give it a try”.

Burgess quotes data showing that this new sugar-free segment is actually driving incremental growth rather than just swapping consumers between categories.

“The launch of the [Zero] variant has attracted entirely new consumers to the cola sector,” she says. Since the launch of CocaCola Zero Sugar in July, 60% of its volume growth has been incremental to the Cola segment and 77% incremental to the Coke portfolio [Kantar, Oct 2016].

The launch of Coca-Cola Zero Sugar was supported by a £14.5m campaign followed by a £10m marketing investment to support the Share a Coke campaign, including sampling.

CCEP is clearly taking the zero sugar issue seriously.

The company has also launched a new vanilla variant of Coca-Cola Zero Sugar and a reformulation of the popular Coke Zero Cherry variant will also launch later this summer with a new and improved Coca-Cola Zero Sugar taste.

Trystan Farnworth, Commercial Director, Convenience & Impulse at Britvic, is also on message: “The company has taken bold steps to help consumers make healthy choices through reformulating its drinks without compromising taste or quality.” One of the company’s most significant launches has been Pepsi Max Ginger, the first cola and ginger flavour to hit the UK market, designed to “appeal to health-conscious consumers who don’t want to sacrifice on taste but are

looking to limit their sugar intake”.

But it’s not just colas and flavoured carbonates getting the ‘low or no’ treatment.

The huge energy category is also very rapidly migrating towards zero sugar with key brands like Monster, Rockstar and Red Bull all offering an increasing number of sugarreduced options.

It’s a similar story for flavoured carbonated water: a small but significant part of the market is being affected with low and no sugar options rapidly replacing full sugar variants.

The likelihood is that the majority of carbonated drinks NPD from most major manufacturers going forward will probably incorporate a calorie reduction or elimination element.

Having said all of that, Coca-Cola Classic remains the biggest-selling brand in the soft drinks category [Nielsen Mar 2017] so it’s not time yet to throw the baby out with the bath water. The trick here will be to keep a constant eye on your fixture and run your Epos data regularly to ensure that the range you have on display reflects your customers’ preferences.

AG BARR’S TIPS FOR TOP CARB SALES: Q Ensure fixture is highly visible, well presented and in a high footfall area Q Group brands within categories Q Stock top performers at eye level Q Restock regularly Q Carry out regular range re-evaluation

www.slrmag.co.uk

zero SUGAR

GREAT COKE TASTE THE UK’S FASTEST GROWING COLA BRAND* RANGE EXPANDS WITH THE LAUNCH OF ZERO SUGAR CHERRY AND VANILLA STOCK UP NOW! To find out more contact us at connect@ccep.com or call our Customer Hub on 0808 1 000 000 *From the Top 5 Cola Brands, AC Nielsen value MAT to w/e 08.04.17 . ©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

UTC

ACCORDIAN AWARENESS MONTH

YOUR USUAL ROLL AND SQUARE, MA’AM? Keen Royal watchers will be aware that the Queen paid a wee visit to Falkirk last month. The party line was that she was visiting the spectacular engineering feat that is the Falkirk Wheel – but we know better. Her real reason for visiting Falkirk was actually for a secret visit to Woodlands Local for a roll and square sausage, wee touch of brown sauce. UTC was there to doff his flat cap and pay his respects. Fortunately he also managed to grab a wee photie of her too, as you can see here.

His admiration turned sour though when he discovered he was having to cough up the £1.40 for her roll because she’s the Queen and famously doesn’t carry cash.

‘IS THAT YOUR BEST EFFORT?’: GREAT SALES PITCHES OF OUR TIME Every day UTC receives a ton of what seems to be the PR trick of the moment: sales pitches disguised as research. So when an online office furniture company sent him a ‘research-based’ release listing “the awkward situations” that office workers have walked in on, he knew he was onto a winner.

According to this ‘study’, 25% had chanced upon a disciplinary meeting, 21% had stumbled into a heart-to-heart and 8% had walked in on an “intimate encounter”. Panic not, however. Said office supplies outfit had just the dab to avoid such embarrassing accidents: a meeting room name generator.

UTC wondered out loud if the generator had a ‘don’t come in because I’m sacking this nugget’ option, or maybe a ‘don’t come in because I’m dry-humping my secretary’ setting.

62

SLR | AUGUST 2017

Among his many fetishes UTC has a fondness for collecting special national or international ‘celebration’ or ‘awareness’ months. You know the sort of thing. Turkey Lover’s Month, Adopta-Cat Month, Potty Training Awareness Month. (Yes, these are all ‘real’ events.)

But his gob was smacked to discover that last month was officially ‘Accordian Awareness Month’. He spent the next half hour questioning his long-suffering co-workers about whether they’d ever been anywhere near someone playing an accordian and not been aware of it. Turns out the accordian has roughly the same qualities to his ear as the bagpipes appear to have on everyone who isn’t Scottish.

Jimmy Shand my arse, was his succinct conclusion.

THE CLAIRVOYANT SIGN WRITER...

UTC, it will come as no surprise, is fond of quenching his thirst after a long day grafting at his typewriter with a wee trip to the Rhoderick Dhu pub downstairs from the office at the end of his shift (and sometime’s even at lunchtime if the boss isn’t in that day). During one such visit last month he was tickled to see a blackboard outside the Roddy Dhu advertising that evening’s Celtic match against Linfield in Northern Ireland.

The writer of said blackboard was clearly a clairvoyant, albeit predicting trouble at that match was always going to be a safe bet.

True enough, the match descended into all sorts of dark chaos with a half bottle of Buckie thrown onto the pitch and a Celtic player goading the opposition fans at the end of the match by tying a Celtic scarf to the goalposts. But alas, or perhaps fortunately, no boxing ensued.

www.slrmag.co.uk

Promoting Responsible Community Retailing to ensure a sustainable and prosperous convenience industry in Scotland

Join us at

CHANCE TO WIN £10,000

THE DUKE’S

IN CASH HOLE ONE PRIZE

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SGF Annual Golf Day Thursday 7th September 2017 The Duke’s Course, Old Course Hotel, St Andrews The Scottish Grocers’ Federation will once again be hosting a fantastic retail trade Golf Day to bring suppliers, wholesalers and retailers together – and we would like you to be involved!

The event will bring the industry together in beautiful surroundings at the home of golf.

ce n a d n e t t A is FREE s r for Retaile ati at Contact Iro book the SGF tce now. your pla

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The Duke’s Course has spectacular views over the St Andrews countryside to the sea.

The 18 hole par 71 Duke’s Course is a 7,271 yard heathland course that provides a great test for all golfers.

Originally designed by Peter Thomson, fivetimes Open Champion, the Duke’s was revised and renovated by Tim Liddy in 2006.

To book, or for more information, contact Irati Ugarte – i.ugarte@scotgrocersfed.co.uk (0131 343 3300)