SLR August 2016 by 55 North

Frozen Food market set to grow | How retailers can use social media | Woodlands new refit False Front.indd 1

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SEAN RUSSELL

AUGUST 2016 | ISSUE 160

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Costcutter Head of Digital offers social media guide

NIALL HASSARD

New regular licensing advice column from TLT

TAKING OUR OWN ADVICE

Having spent years advising retailers to continually invest in their stores, SLR takes its own advice with a full refit of Woodlands Local

CAT MAN PLAN

16 pages of

catman support

LUNCH BUNCH Leveraging the lunch mission

GUMS & MINTS

Profit-busting opportunities explored Frozen food market to grow | New Irn-Bru variant | SLR Reward winners in focus Front Cover.indd 1

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On the jjourney together

in Scotllaand

JET is THE fuel brand of independent dealers in Scotland. Our network of 50 independent Scottish forecourts is going from strength to strength. JET now supplies more fuel to Scottish independent dealers than any of its main competitors*. Backed by Phillips 66, JET is Scotland’s ONLY branded dealer supplier with its own UK refinery, supplying 14 billion litres of fuel during 2015 into the UK market. Get in touch to find out why more and more independent Scottish dealers are making JET their fuel supplier of choice. Call us on 01926 404 333 or email connect2jet@p66.com; what we offer might surprise you. JourneywithJET

* Source – Catalist latest release. Dealer site volume only, excluding sites owned by UK nationwide site operators – Certas Energy, Cooperative, Euro Garages, MOTO, Motor Fuels Group, MRH, Roadchef, and Waitrose

@JETPetrol

Official fuel partner of

August 2016

Contents

Contents ISSUE 160

NEWS P6

P10 P12

P20 P22

MADL amasses a multitide of followers The Facebook and Twitter accounts for Nisa’s Making a Difference Locally charity have experienced a significant uplift in customer engagement following an investment in its social media strategy. Imperial attempts to smoke out Baccy Boy A new poster designed by Imperial Tobacco aims to crack down on illegal tobacco sellers as the latest move in its anti-illicit tobacco campaign. Nisa rewards community retailers Three Scottish c-stores were among the winners of Nisa’s Shop Local competition, which encouraged customers to nominate their favourite store. Co-op sells stores to McColl’s McColl’s is to buy 300 of Co-op’s smallest food stores in a deal worth £117m. News Extra Anti-smuggling campaign starts at Scottish airports Passengers at three leading airports in Scotland will now see specially designed posters reminding them about the consequences of bringing back tobacco to sell. Product News Mars Sweet Sundays returns for the fifth year in a row, and Wrigley targets drivers with new gum holder. Off-trade News Jack Daniels PMPs, record low on underage drinking, and more from the drinks world.

INSIDE BUSINESS P24 Market Research Frozen Food market set to grow The latest Frozen Food report, based on a raft of up to date market research, suggests the frozen food retail market will grow over the next 12 months. P26 Store Advice How can I utilise social media for my store? Sean Russell, Head of Digital at Costcutter Supermarkets Group, tells retailers how to use social media to their advantage. P28 2016 Rewards SLR catches up with Omar Nasir, the winner of the ThinkSmart Innovation Award, and the winner of the Food to Go Award, Sam Ali. P30 Woodlands Local Exclusive Irn Bru taste-test event, and more from SLR’s own store. P38 Hotlines Kraft Heinz Duo Pots, Ready Brek new pack design, and more new products to arrive on shelf. FEATURES P40 Category Management Effective and efficient category management remains a fundamental cornerstone of modern convenience store management. P58 Mints & Gum A tillpoint staple, the mints and gums category has long played a surprisingly important role in the weekly turnover of most convenience stores, generating significant profits into the bargain. P62 Lunch With its experiences of handling a very busy lunch time at its own Woodlands Local store, SLR goes in search of some great ideas that retailers can consider if they want to turbo-charge their lunchtime offering. www.slrmag.co.uk

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ON THE COVER p16 A look inside the refit… The refit of Woodlands Local has been driven by a desire to entirely restructure the store around a mission-shopping ethos.

AUGUST 2016 | SLR

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News SYMBOL GROUPS Costcutter unveils latest digital campaign

Frozen food sales set to grow in 2017 Sales of frozen food in retail are set to grow further according to the new The Frozen Food Report II. The report says value of frozen food sold in the UK in retail is now worth £5.73bn and predicts the value of retail sales will continue to grow at between 1% and 2% over the next five years, driven by innovation and

Costcutter launches YouTube ad Costcutter has continued to invest in its digital marketing strategy with the launch of new YouTube video ads which the company says will deliver over twice the average engagement levels for the channel. The ads follow the successful proximity marketing campaigns, a social media training programme for retailers and a significant increase

in the group’s digital advertising. The 15 second adverts were part of the Love Local Deals campaign and designed to drive social engagement with the brand and footfall into store. “We’re always looking for new ways to engage shoppers and established channels like YouTube offer effective ways of communicating our deals with target audiences,” said Sean

Russell, Head of Digital for Costcutter Supermarkets Group. “We know that 75% of shoppers are likely to go into a Costcutter store after engaging with us through digital channels. With over 640,000 video views, and 91% of people watching the whole ad, this is another great example of how we are helping our retailers thrive.”

demand for convenience. The report, which is produced by British Frozen Food Federation, brings together research from leading names including Kantar Worldpanel and BRC-Nielsen.

One-Stop unveils social media guide One-Stop has launched a social media guide for its franchisees to help drive sales, footfall and community engagement. The toolkit has been developed by One-Stop’s digital marketing team to help retailers create online engagement and drive footfall. It has been designed to benefit all levels from novice to experienced, covering a multitude of platforms including Facebook and Twitter. The development of the toolkit was done together with franchisees that are already using social media successfully in their community to give hints and advice.

Birds Eye and Molson Coors incentivise Premier Birds Eye and Molson Coors are among several major brands that have joined forces with reward scheme epoints to incentivise over 3,000 Premier retailers throughout the UK to meet set criteria including stocking the core range and meeting brand compliance. Retailers will be rewarded with the epoints currency which can be spent on a choice of millions of products and experiences. The number of epoints that each retailer is rewarded with will be determined during store visits from epoints representatives who will check a retailer’s stock against the

FORECOURTS New food to go and coffee solution developed

JET launches exclusive coffee and food-to-go concept for forecourts Fuel brand JET and coffee machine provider eXpresso PLUS have teamed up to launch ‘Snack on the Go’, an exclusive coffee and food-to-go concept to drive forecourt footfall across JET’s network. JET and eXpresso PLUS initially joined forces last year to introduce a coffee-to-go initiative for JET dealers and JET’s Retail Services Team has now bolstered the offering with the launch of a food-to-go offering to sit alongside the coffee, available to all existing and new JET sites. As well as a Lavazza coffee machine, dealers can choose to add display areas for hot food, sweet treats and chilled items. Dealers will receive support from eXpresso PLUS and Country Choice to perfect ranging and merchandising and the ‘Snack on the Go’ units can be branded to a dealer’s requirements. Stuart Cufflin, Transport and Retail Contracts Manager at JET, comments: “We’re always looking to help JET dealers drive footfall onto their forecourts and we believe ‘Snack on the Go’ will do just that. With the continued trend toward forecourts becoming convenience destinations, coffee and food-to-go present strong commercial opportunities that dealers can – and should be taking advantage of.” Lauren Tyler, Marketing Manager, at eXpresso PLUS,

adds: “The demand for food-to-go in the convenience sector has seen a 33% year on year growth. Breakfast-togo has seen the highest increase with 64% of consumers buying a hot drink with their purchase. Forecourts are ideally placed to capitalise on this trend and we’re confident that those JET dealers who choose to introduce ‘Snack on the Go’ will see their shop sales increase.”

reward criteria set by brands. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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News RESPONSIBLE RETAILING Pioneering proxy purchasing awareness campaign launches in Leith

Edinburgh local retailers drive proxy purchasing initiative Local retailers are at the forefront of a new partnership initiative in the Leith area of Edinburgh to tackle the issue of proxy purchasing. Leith was chosen as, outside of London, it is the most densely populated urban area in the UK. As part of the ‘You’re Asking for It’ campaign local retailers are working alongside Police Scotland and the City of Edinburgh Council to raise awareness on the risks and penalties associated with buying alcohol for anyone under the age of 18. The campaign has been developed by the Scottish Alcohol Industry Partnership (SAIP) and follows-on from a very successful campaign in North Lanarkshire in 2015. Campaign packs have been delivered to every licensed retail premises in the area. During the campaign, a giant digital advertising screen will be on display on Leith Walk, one of

Edinburgh’s busiest thoroughfares, warning the public about the seriousness of the crime if they are found to be involved in proxy purchasing. In addition to raising awareness, the campaign also looks to encourage communities to come forward and report proxy purchasing and to give confidence to shop staff to challenge anyone they suspect of buying alcohol for underage drinkers. John Lee, Head of Public Affairs at Scottish Grocers’ Federation (SGF) and Chair of the SAIP Campaigns Group, said: “ Responsible retailing and initiatives such as Challenge 25 have significantly helped reduce the number of direct sales of alcohol to under 18s, but young people are increasingly accessing alcohol by other means. “Asking an adult to buy alcohol for them is one of the most common

tactics used. This campaign raises awareness of the serious consequences of buying alcohol on behalf of a young person and provides support for retailers in the area – there is very little retailers can do by themselves to solve this problem and we need a multi-agency partnership approach.

Usdaw welcomes Co-op staff assurances Shopworkers’ trade union Usdaw has received assurances from the Co-op for the 3,600 staff in the 298 Co-op stores that are being sold to McColls, subject to a Competition and Markets Authority review. Usdaw National Officer John Gorle said: “Whenever staff are transferred to a new employer, there is always uncertainty about the future. So we welcome the Co-op’s assurances that terms and conditions of employment will be safeguarded and staff will continue to have secure jobs with a future.”

Glasgow Uni: focus on sugar ‘misleading’ Scientists from the University of Glasgow have concluded from a major study of over 130,000 people that focusing health messages on sugar in isolation in the battle against obesity may mislead consumers on the need to also reduce overall calories,

CO-OP Almost 300 stores sold to fund development of convenience, own-brand led strategy

Co-op sells 298 smaller food stores The Co-op Group has agreed the sale of 298 of its smaller stores to McColl’s for £117m as part of its strategy of refocusing its store estate on a convenience, own-brand led shopping experience. Some 57 of those store are in Scotland. The sale of the stores, which are 1,700 sq ft on average to, is subject to approval from the CMA and McColl’s shareholders. The sale proceeds will be re-invested to further deliver the Co-op’s strategy, which over the past 12 months has seen the Co-op become the most frequently visited food

retailer in the UK. In the last two years The Co-op has opened close to 200 new stores and in 2016 is actively pursuing 100 new store acquisitions. Steve Murrells, CEO of Co-op Food, said: “The Co-op Food business continues to move forward with a clear momentum and purpose to deliver a compelling and convenient shopping experience for our millions of customers and members. The proceeds will be reinvested to drive sustainable growth for our members in future.”

including those from fat. Although sugar is currently being targeted in initiatives such as the sugar tax, the researchers concluded from a study of 132,479 people from across the UK that it was fat that made the biggest contribution to the overall calorie intake of the individuals studied.

Mars unveils £23m site investment Mars Food UK has announced a £23m investment into its King’s

TOBACCO

Lynn manufacturing site during

JTI removes 25th illegal tobacco gantry

the official opening of its new

Tobacco giant JTI has removed its tobacco gantry from Premier Food & Wine in Dudden Hill Lane, Willesden following action by Brent Trading Standards. This marks the 25th gantry to be removed by the company and follows owner Ketan Patel being fined and ordered to pay costs of £2,600 for selling illegal cigarettes and tobacco. Charlie Cunningham-Reid, UK Head of Corporate Affairs commented: “This is the 25th time JTI has removed a gantry from a retailer found to be selling illegal tobacco and this clearly demonstrates our resolve in taking action against this activity. If this type of crime continues, customers will lose trust in their local shops as the false impression grows that all of the independent trade is rife with ‘dodgy cigarettes’. “Our commitment to support the actions of Trading Standards and HM Revenue & Customs is steadfast and we must work together to take a stand against illegal tobacco.” Retailers aware of criminals supplying illegal cigarettes in their area should call Crimestoppers on 0800 555 111 or the Customs Hotline on 0800 59 5000.

Hon. Elizabeth Truss – Secretary

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£6m office facilities by The Rt. of State for Environment, Food and Rural Affairs. The King’s Lynn site, which currently employs nearly 300 people is set to create 28 new full time jobs as part of the investment in new manufacturing capabilities for the manufacture of Uncle Ben’s Ready to Heat rice. The new production line will be completed early in 2017.

AUGUST 2016 | SLR

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News SYMBOL GROUPS Focus on social media pays off for Nisa’s community involvement campaign

One-Stop opens customer programme to franchisees One-Stop’s ‘My Local One Stop’ customer satisfaction programme which launched in 2013 to help the group get more in touch with customers and understand in greater detail what makes them tick has been rolled out to franchisee stores. The programme gives One-Stop retailers live customer feedback, reported in real time to enable them to make business decisions and changes that make a difference to customers.

Imperial Tobacco doesn’t ‘like’ smuggling Imperal Tobacco has revealed the latest instalment in its Suspect it? Report it! anti-illicit trade campaign targeting the increasingly common practice of illegal sales of tobacco through social media websites. Imperial Tobacco not only monitors the activity of online sellers, but shares any ensuing intelligence with law enforcement. Peter Nelson, Imperial Tobacco AntiIllicit Trade Manager commented: “Online isn’t an area that’s traditionally associated with the illicit tobacco trade, but Imperial Tobacco has observed a notable increase in the volume of illegal cigarettes and hand rolling tobacco being offered for sale

Nisa’s Shop Local campaign flourishes on social media Nisa’s Shop Local campaign has been boosted significantly by increasingly effective use of social media with customers across the UK championing the cause of local shops on Facebook and Twitter. Between 20th June and 4th July, when the campaign was promoted on Twitter and Facebook, the campaign’s #lovetobelocal hashtag received over 320,000 impressions on Twitter, while it was seen by almost 18,000 people on Facebook through Nisa and Making a Difference Locally’s pages. Shop Local aims to raise awareness of the importance of local businesses and celebrate the positive impact they have on their communities. The growing traction of the campaign was also evident through the number of nominations Nisa members’ stores received through the campaign’s dedicated website – www.lovetobelocal.co.uk – with 141 unique entries put forward

by customers. Fifteen of those retailers will now receive £1,000 to donate to good causes in their local communities, further emphasising the importat role played by the local shop. “Through our Shop Local campaign, we urged shoppers to get behind their local stores and support their community retailers who provide an invaluable service to many people, particularly the elderly and vulnerable,” said Steve Leach, business unit director for independent and specialist at Nisa. “Shoppers really got behind the

campaign, recognising the value of local businesses and the social and economic benefits they bring to communities. Now thanks to the engagement created by our online campaign, 15 communities will benefit further through £1,000 donations to be spent on local good causes.” Research conducted by Nisa prior to the campaign highlighted that around half of shoppers believed that their local community benefited from having an independent local store, while a fifth saw the local store as an integral part of their community.

through various social media platforms and is taking steps to crack down on offenders.”

Nisa spins to win Nisa launched its 2016 ‘Spin to Win’ competition last month to further engage consumers with its online summer campaign, offering them the chance to win prizes every week. Following the success of last year’s competition, the Spin to Win campaign was relaunched last month offering @NisaLocally social media followers the opportunity to win a range of prizes each week, including tickets to a Merlin resort, a Joules picnic hamper and case of Lipton Raspberry Ice Tea, and one of five high quality

NEWSTRADE Leading publisher and money-saving work together to support tretailers

News UK and bigDL join forces to support local retailers Newspaper publisher News UK has joined forces with bigDL, the consumer money-saving app and retail marketing tool, to help drive sales in independent convenience stores. The partnership, which will enable News UK to further strengthen its relationship with retailers, will initially see over 2,000 independent stores roll out bigDL’s breadth of marketing tools. Major brands will also team up with bigDL and News UK to offer exclusive mobile coupons on their products, which can be redeemed in participating stores via

the bigDL app. The bigDL solution includes a range of digital communication tools that enable retailers and brands to connect with consumers via their mobile devices. Central to bigDL’s technology is its mobile application, which is integrated with mobile coupon and beacon technology. The popular deals app provides consumers with a comprehensive view of the best discounts on the high street and online. It brings together offers from over 70,000 retailers and will now include exclusive

bigDL mobile coupons that can be redeemed in the participating stores. The coupons will be funded by major brands who have also joined forces with bigDL and News UK. Retailers involved in the scheme will also be able to add their own store offers to the bigDL ‘deal stream’. Greg Deacon, Head of Retail Trade Marketing News UK, said: “The next phase of our MyPerfectShop program in conjunction with bigDL will enable us to better engage with retailers, helping them to drive further footfall, loyalty and spend from the shopper.”

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

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News NATIONAL LIVING WAGE Industry body meets Low Pay bosses to highlight impact of National Living Wage

Q Diageo Great Britain has delivered a robust set of results with net sales up 4%. The GB business is in its third year of continuous growth, winning a share in both the on and the off trade channels, and delivering its highest rate of top-line growth for a decade. Charles Ireland, General Manager GB, Ireland and France says the performance has been driven by the success of the reserve business, where Cîroc has overtaken Grey Goose to become the leading Super Premium Vodka brand in 2015. Q AB InBev has published its Second Quarter and Half Year 2016 Results. Jason Warner, BU President, North Europe, commented: “Since taking over Corona in January 2015 it is now the fastest growing lager brand in the country, with strong double-digit volume

SGF meets Low Pay Commission over Living Wage With the National Living Wage (NLW) one of the biggest issues facing independent retailers, SGF has met with the senior team from the Low Pay Commission (LPC) – including the Chair of the LPC, Sir Christopher Norgrove – to highlight the impact of the living wage and to call for a freeze on further increases. The Commission was visiting Dundee as part of a UK-wide programme of visits to gather evidence on the effects of the NLW. SGF presented the results of its members’ survey on the impact of the NLW on independent retailers. The results showed that increased employment costs was the biggest factor affecting a decision to lay off staff. Some 75% of respondents said that they were reducing staff hours as a direct response

to the NLW. One of the most telling statistics from the survey, however, related to the age-profile of staff in the convenience store sector in Scotland – 80% of staff are in the 25 plus age range. SGF Head of Public Affairs, John Lee, commented: “We are beginning to understand why the NLW is having such a serious impact on the independent convenience store sector: 80% of staff are in the age group which have to be paid the NLW. This is leading to significant increases in wage costs across the sector with a serious knock-on effect on staff numbers and staff hours. We had a very positive and constructive meeting with the LPC and our sense is that they do appreciate the impact on our industry and are minded to be cautious about recommending further increases.”

growth due to increased distribution and successful campaigns. Stella Artois’ strong performance has been driven by its superior offering and premium positioning through a Be Legacy campaign and sponsorship of Wimbledon while Budweiser’s football

WHOLESALE UWG liveries fleet

NEWSTRADE

United drives up awareness of Lifestyle Express

NFRN welcomes end to cut price Express and Star

activations including Dream Goal and FA Cup have been incremental to the brands performance this year.” Q James Hall, the Spar wholesaler for the north of England, has announced the acquisition of North East Convenience Stores (NECS), a 30 store multi award winning family owned chain based in the North East of England. James Hall now serves over 600 stores in the North of England. The Vadhera brothers, Naveen and Sanjeev, have agreed to a sale of their 30 store group but will remain with NECS as Executive Management with NECS becoming a subsidiary of the James Hall Group of

Glasgow wholesaler United Wholesale Grocers (UWG) has updated the design of four of its delivery lorries to drive awareness of the Lifestyle Express brand. It is anticipated the entire fleet will be branded by the end of the year. UWG has two depots in Glasgow, in Polmadie and Springburn, and is a member of Landmark Wholesale. Amaan Ramzan, Director at UWG, said: “While people may recognise the Lifestyle Express logo, we wanted to bring the brand to life and by featuring a store front with real people it’s really improved consumer awareness of Lifestyle Express. “The lorries are really capturing people’s attention and everyone loves them, including customers, staff and suppliers, and it is good to see they appreciate our investment and commitment to the brand.”

The National Federation of Retail Newsagents (NFRN) has welcomed a u-turn by Northern & Shell on its pricing strategy for the Daily Star, Saturday Daily Express and Monday to Friday editions of the Scottish Express which has seen original recommended cover prices reinstated. NFRN Chief Executive Paul Baxter said: “Halving the price of these titles may have given readers a great deal and there have been some sales gains as a result, but the move has never sat well with independent retailers who have been concerned about Northern & Shell devaluing the market. “The NFRN has always believed that the newspaper market is fairly priced and we were pleased that rival tabloid publishers were not encouraged to enter into a circulation war. Reinstating the original cover prices and doubling retailers’ terms is a move that will be welcomed by our members.”

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HAMLET SUMMER AD CAMPAIGN KV AWO img emb.pdf 1 2016-06-28 15:40:08

CMY

News Extra

Illicit Tobacco | Anti-Smuggling Campaign

NewsExtra FIND OUT THE LATEST CATEGORY MANAGEMENT ADVICE P40 ILLICIT TOBACCO TMA ad campaign kicks off warning passengers against bringing back tobacco to sell

Convenience Matters with the SGF Change is a fact of life. The recent political upheaval in the UK has demonstrated the truth of that old cliché all too clearly. Uncertainty seems to be the only thing we can be certain of, and in Scotland we have the double-whammy of being in a potential second independence referendum scenario. SGF has been working hard to make sure we have some kind of influence on events. We are making a big push to set up the first-ever cross party group in the Scottish Parliament on independent convenience stores. Such a group will help us bring retailing issues directly into parliament and can question Ministers on their plans for future legislation. We have established a working relationship with the Scotland Office in Whitehall to allow us to influence reserved matters and other UK-level issues. We have asked them to look at the entry of companies like Amazon into the grocery market because the SGF is concerned that these companies often receive tax advantages which could put more pressure on independent retailers in an already hypercompetitive market. We recently attended a roundtable meeting with the Secretary of State for Scotland where we fed in the potential problems for retailers which Brexit might bring. We have also just met with the senior team from the Low Pay Commission – including the Chair of the LPC, Sir Christopher Norgrove – to highlight the impact of the living wage and to call for a freeze on further increases. We are being as proactive as we can to ensure we influence legislation for the benefit of our members and try to keep the cumulative impact of cost increases to a minimum.

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Anti-smuggling campaign starts at Scottish airports Planning to bring tobacco into the UK? Don’t sell it on – it’s illegal

Passengers at three leading airports in Scotland will now see specially designed posters reminding them about the consequences of bringing back Bringing abroad of the tobacco with thetobacco intent toback sell. from As a member and selling it on is a criminal Scottish Anti Illicit Trade Group, theoffence... UK tobacco industry (through the Tobacco Manufacturers Association) has funded an advertising campaign to raise passenger awareness that reselling tobacco purchased abroad is illegal. The four-week campaign runs in Glasgow, Edinburgh and Aberdeen airports with the posters strategically placed in the departure areas of the airports to help educate passengers who may not be fully aware that bringing tobacco products into the UK and selling them on is a criminal offence. Tobacco smuggling brings criminality into communities across the UK and costs the UK taxpayer an estimated £2.1bn per annum, or £6 million per day. Those caught selling on tobacco in the UK which has been bought abroad could face penalties of up to seven years in jail. Research has shown that some passengers do not know how much tobacco they can bring back into the UK or that selling tobacco bought overseas in the UK is illegal. While tobacco duties and retail prices are generally lower in the majority of overseas This advertising campaign is supported by the Tobacco Manufacturers’ Association (TMA)

destinations, they are much lower in some countries, like Poland, Romania and Bulgaria. There a pack of 20 premium cigarettes typically costs less than £3.00, compared to more than £9.00 in the UK. Giles Roca, Director General of the TMA, commented: “As people head abroad for their summer holidays, we are taking this opportunity to remind them with this new campaign that it is illegal to bring back tobacco from overseas and then sell it on in Scotland. “Reselling tobacco bought overseas is not a victimless crime. This practice affects many hardworking independent shopkeepers who are deprived of legitimate tobacco sales and related footfall. This year we are also extending the reach of the campaign to include those leaving by ferry by covering the country’s busiest port at Dover. Our advice is simple: don’t be tempted.” Chair of the Scottish Anti-Illicit Trade Group, Inspector Frank McCann from Police Scotland’s Specialist Crime Division, said: “Serious organised crime groups make a lot of money from illicit tobacco products. This not only affects individuals but can also have a negative impact on communities and the wider economy. We have a responsibility to act on this, to make our communities safer.” www.slrmag.co.uk

03/08/2016 17:28:53

W E

Unique Drumstick and Refreshers flavours now available as Bon Bons Now the fastest growing Bon Bons brands Already the most widely distributed Bon Bons brand The Bon Bons category is seeing consistent double digit growth (up +19% year on year)*

STOCK UP NOW! * Source: IRI total marketplace value data to 03.01.16

Comment

PRACTISING WHAT WE PREACH I make no apologies for taking our own Woodlands Local store in Falkirk as the subject of this month’s comment. When we initially set out on our epic adventure as the first magazine in the world to buy a convenience store, we knew that we would be testing ourselves to the max. And it turns out that we have indeed been tested to the max on countless occasions. Running a convenience store is not for the faint hearted, as you well know. When we bought the store we knew that we would have to practice what we preached in SLR. It’s all very well being a journalist and telling readers how to run their business. It’s an entirely different matter to actually run a convenience store and attempt to take your own advice, the same advice you’re putting into print every month. I can with some clarity remember how, five or six years ago, I was a firm member of the ‘how bloody hard can it be to keep a fixture neat and tidy?’ camp. Three years down the line as a retailer, I know exactly how bloody hard it can be. And I understand all the reasons that make it hard. One key piece of advice we repeatedly offered to retailers through the pages of SLR was the fundamental importance of constant reinvestment in the business. With retrospect, this can look dangerously like a glib piece of advice from a journalist sitting behind a desk. Investing in the business can be a very tough commitment to make, especially if business is slow and there’s no obvious source of cash for investment. I have personally discovered just how easy it is to find excuses why it’s not the right time to invest. But we decided that if we were for a long time prepared to talk the talk, we now had to be true to our word and walk the walk. We accepted that Woodlands Local, to be blunt, was underperforming. After so much change and investment, sales growth hasn’t been as dramatic as we would have liked. But when we faced reality, we knew why. Much of our prior investment was in systems, infrastructure and stuff that customers don’t see. What we needed in order to unlock the growth opportunity was to sort out the shopfloor itself and make the store look like the sort of store that I would want to shop in. So I’m very, very proud that we’ve achieved that. Woodlands Local looks, for first time, like a modern convenience store. I would invite anyone who fancies a look to come along and talk to us and see what we’ve done. A word of thanks too must go to Graham Mason of shopfitters Direct Shelving Service who made such a great job of the refit. Their approach, attitude and workmanship was top rate. Don’t get me wrong. We’re nervous. We know investment is vital and we hope we’ve done the right things and we know that the store should see sales growth now - but nothing is guaranteed in this game, as we all know. We’re giving it our best shot and that’s all we can do.

EDITORIAL Publishing Director Antony Begley 0141 222 5380 | abegley@55north.com Editoral Assistants Iain Hoey 0141 222 5385 | ihoey@55north.com Émer O’Toole 0141 222 5387 | eotoole@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com

ADVERTISING Advertising Manager Susan Dignon 0141 222 5384 | sdignon@55north.com Special Project Sales Manager Donald Stephenson 0141 222 5387 | dstephenson@55north.com

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

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

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

ANTONY BEGLEY, PUBLISHING DIRECTOR

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Cover Story

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Woodlands Local Refit

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Woodlands Local Refit

Cover Story

FOLLOWING W OUR OWN ADVICE AT WOODLANDS After three years of running SLR’s own Woodlands Local store in Falkirk, we have finally completed the last phase of our complete refit programme – and the result is a modern, bright convenience store that’s ready for growth. BY ANTONY BEGLEY

hen SLR first set out on the path to buying and running its own convenience store over four years ago, it’s fair to say that we had no idea what lay ahead. To say that we have learned a lot about local retailing over the last few years is understatement bordering on the farcical. From the process of simply finding and buying a store through to last month’s completion of the final phase of our full refit programme, the challenges have been consistently daunting – and there is absolutely no doubt that our understanding of just what retailers go through on a day to day basis makes SLR a unique title not only in Scotland or even the UK, but across the globe. It has been an exciting four years – of that there is absolutely no doubt – but it has also been an exceptionally difficult and challenging period, so you can imagine the mix of relief, satisfaction, pleasure and anticipation that the team at Woodlands felt when the final stage of our refit was completed at the end of July. That final phase saw a new floor going down, all-new shelving going in around the store and the final cosmetic touches being applied as SLR went to press. After so much work and so much investment, it’s difficult to describe the feeling of walking into what is to all intents and purposes a completely new store from the one we bought three years ago.

CONSTANT INVESTMENT It has been a slow and costly experience – in excess of £100,000 of investment has gone into the store in the last three years – but www.slrmag.co.uk

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Cover Story

Woodlands Local Refit

“In excess of £100,000 of investment has gone into the store in the last three years but we have been determined to practice what we have long preached in SLR.”

we have been determined to practice what he have long preached in SLR. Constantly reinvesting in your store has been a mantra in SLR for the last 13 or 14 years, so it’s only right that we put our advice into practice in our own store, tough as that has been. We are confident, however, that the investment will reap rewards. Today’s customers have very high expectations when they enter a store. They expect a great, clean, bright, tidy shopping environment. They expect low everyday pricing. They expect great promotions. They expect a broad range of great brands. They expect brilliant customer service. They expect a smiling face and a few words of conversation. They expect to be recognised and known. They expect their local store to be active in their community. To be frank, they expect a lot – and it’s our job to deliver against those expectations seven days a week. That is our job. But our goal is not just to meet those expectations but to exceed them. At the heart of all of this is an attractive, welcoming store and we now believe that, finally, we have just such a store. The work done by Graham Mason’s team from Direct Shelving Service who carried out this final phase of the refit has been nothing less than immaculate. The team were considerate, friendly and enthusiastic, engaging well with our customers and our staff as parts of the store remained open throughout. As for the quality of the work, we simply can’t fault it. The new floor replaced a tired, torn and battered floor that was simply unsightly. Likewise, the new shelving transforms the way the store looks. It’s not actually easy to explain why the shelving looks so much better than what it was before, given that most of it is covered up by product, but for some reason it just does.

FINAL PHASE This final phase completes a three stage process that started with ripping out the guts of the store and replacing it – electricity supply, wiring, Epos system – and progressed onto all new eco-friendly refrigeration, LED motion-sensitive lighting, voltage optimisers and a full refit of the counter area and hot food section. 18

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The store is basically unrecognisable from the day we took it over in May 2013. But the stark reality is that the refit is really only the start of the hard work. The reason we committed to the final refit in the first place was to allow for a full re-working of the store layout. The biggest change will see us swap the fresh and chilled section of the store with the licensed section. The licence amendment application was being submitted as SLR went to press and it is our plan to move the fresh and chilled section to the front of the store to drive sales in these higher margin categories. The alcohol will be moved to the back of the store and, while we will have slightly less space for alcohol, much more of that space will be chilled to allow us to carry a broader range of chilled beers, ciders, wines and RTDs. The other major change is a shift towards a mission-shopping based layout. New areas are being created in the store for lunch, meal for tonight, big night in, pound zone and so on. A new section facing the hot food range will now offer pastries, doughnuts and other sweet treats, for instance. At the front of the store three new standalone shelving ‘islands’ replace the old 4m run of solid shelving which has many benefits. Firstly, they create sight lines from most areas of the shop, including the till, which will allow every customer to see the new fresh and chilled range (previously it had been hidden away at the back of the store). Secondly, they create a feeling of space. Thirdly, they also allow us to introduce a second dedicated promotions bay. We also intend to regularly remerchandise these islands so that they don’t become ‘wallpaper’ for customers. The bays facing the tillpoint will be re-worked every three weeks to drive impulse sales and will be used to highlight NPD and strong promotions, for instance. As for the range, we have worked hard with a team from Costcutter to implement their Independent own label range. The work is not yet complete but we have integrated Independent lines throughout the store, working to a basic principle of only carrying one premium branded option and one Independent value option for as many www.slrmag.co.uk

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Woodlands Local Refit

Cover Story

products as possible. Costcutter are also supplying our full fresh, chilled and frozen ranges. The net result is that we will be delisting literally hundreds of lines to focus on, and give more space to, lines that are successful and have a high rate of sale. This is happening right across every category in the store and we expect to drive significant efficiencies as well as savings in stock-holding by maintaining a tighter range. Over the next few months we will carry detailed overviews of the ‘technical’ work we are carrying out in the store within the Woodlands Local pages of SLR, for anyone that’s interested. We will explain the rationale behind the new range and the delistings, demonstrate the planograms we will use to maintain every fixture and show precisely how we are monitoring the range as time goes by, adding new lines and delisting others. We will also show how we will be using the Woodlands Local Rewards Club to leverage the refit, bring new customers to the store and communicate all the work we’re doing. It’s an interesting and nervous time for us at Woodlands Local as we cross our fingers that all the work converts into sales uplifts. But we can content ourselves with the knowledge that we are indeed practising what we preach in SLR. Just as it says on the front of the magazine: “We understand retail because we’re retailers too.”

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News

Products

CHOCOLATE CONFECTIONERY

Sweet Sundays Returns Mars Chocolate UK is bringing back its Sweet Sundays promotion for the fifth year in a row. The popular initiative offers consumers the chance to get their hands on free cinema tickets on a Sunday. The campaign will capitalise on the popularity of cinema – the UK’s favourite out-ofhome activity- by attempting to capture consumer attention with a bold new packaging design which will feature across many of Mars Chocolate’s best-selling bitesize products. These include Malteasers, Galaxy Minstrels, Galaxy Counters, M&M’s, Revels and Milky Way Magic Stars. A media investment of £13m will see Malteasers on air continuously for the remainder of 2016, whilst M&M’s are backed by a £8.5m media spend and will air every other week for a total of 26 weeks this year. Bep Dhaliwal, trade communications manager at Mars Chocolate UK said: “Sweet Sundays has been proven to drive Bitesize category growth, increasing incremental value of the Bitesize category by 13 per cent last year. Returning bigger and better than ever, we’re confident the promotion will continue to increase in popularity with consumers so retailers are advised to maximise the opportunity for increased awareness in store, using our new range of POS solutions to capture their attention.” To take advantage of Sweet Sundays, consumers must purchase six promotional Mars Bitesize Standard pouches or three Mars Bitesize More to Share pouches, before registering online to receive their tickets.

ProductNews CASHING IN ON THE LUNCH MISSION P56 GUM Market leader identifies new growth opportunity for retailers

Wrigley targets drivers with new gum holder Wrigley has identified in-car consumption as a clear growth opportunity and has created a new specialised in-car gum holder, tailored to fit bottles of Extra and Airwaves, for easy consumption. Whilst gum is the second most consumed product in the car, Wrigley established that drivers would be less likely to consume it if difficult to reach whilst driving and the device aims to tackle this issue. Wrigley is offering its new holder to consumers free with every bottle of gum purchased from July to mid-September. The promotion is expected to deliver a 7.5% uplift to sales of Extra and Airwaves during the activation period and will provide consumers with a hassle free solution for storing gum in-car. The launch of the product is being supported with a national media campaign aimed at maximising reach and accelerating awareness during the promotional period. This includes a dedicated 20 second radio ad, which will run for four weeks until midAugust, and TV advertising campaign during the same time period. Formats in the offer include; Extra Peppermint (60 pc), Extra Spearmint (60 pc), Extra White & Extra White Bubblemint (46pc), Extra Ice Peppermint (46pc) and Airwaves Menthol & Eucalyptus (46 pc) Bottles. PET FOOD Mars unveils cat soup range

New range of Mars cat soups Mars Petcare has unveiled a new range of ‘superpremium’ soup for cats range under the Whiskas and Sheba brands.Whiskas Creamy Soups provide a complete and balanced mealand feature a lower chunk to sauce ratio than standard cat food. It is available now in Poultry, Fish and Meat variants in packs of 12 at a promotional rrp of £3. Whiskas is supporting the launch with a £10m investment package that includes in-store activity and display items. Widespread sampling and digital campaigns are also planned. Nine million households will see a Whiskas TV advert every four weeks, and one million cat owners will receive a free sample every 12 weeks.

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A Sheba Soup range has also arrived and is available in 40g mini pack sizes, with packs of 4 carrying a £1.99 rrp, coming in Chicken, Tuna, and Ocean Fish & Vegetable varieties. The launch is being supported by a heavyweight £3m investment, including a new TV campaign and digital activity, as well as an in-store focus across the country. www.slrmag.co.uk

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Products

News

PORRIDGE

New Quaker Oats range from Pepsico SUGAR CONFECTIONERY Chewits revives ice cream variant

Chewits revives ice cream variant in response to demand Chewits is bringing back vintage flavour Ice Cream after being “bombarded with requests from fans”. It joins Strawberry, Blackcurrant, Fruit Salad, Orange and Cola in the current Chewits portfolio. Bobby’s Foods will be exclusively selling Ice Cream single cases from August 2016. “We’ve got the right partner in Bobby’s to ensure we drive distribution in an important channel,” said Bev Rushbrook, Commercial Manager for parent brand Cloetta UK. The resurrected variant is available to trade in multipack formats from this month. “Ice Cream flavour Chewits consistently tops our favourite flavour polls by our half a million Facebook fans despite it not even being in the range. And recently demand for Ice Cream Chewits has been so high that we couldn’t ignore it.” The launch is supported by an extensive sampling

SOFT DRINKS

Rita Ora sweet talks at CocaCola Taste Lounge Singer Rita Ora was the guest of honour at the Coca-Cola Sugar Free Taste Lounge in London which marked the launch of the new Coca-Cola Zero Sugar on the 7th of July. “I’ve always been a huge Coca-Cola fan so I’m happy that there’s now a Coca-Cola that tastes just as good as the classic but without the sugar,” the star commented. “If you’re like me and love the original Coca-Cola but want to enjoy it without the sugar then this is perfect for you.” www.slrmag.co.uk

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campaign which sees Chewie the Chewiesaurus visit a number of tourist and seaside locations. Social media activity and consumer competitions are also planned. Pepsico-owned Quaker Oats has launched two new ranges of porridge sachets with enhanced nutritional qualities. The company says trhe products were developed to meet increasing consumer demand for positive nutrition in the form of simple, wholesome ingredients. The new ‘Super Goodness’ range of products delivers all the benefits of Quaker Oats, with a selection of added nutritional benefits thrown in for good measure. The Super Goodness Grains range contains protein, fibre, and omega 3 and are available in Original (10 x 30.7g); Apple, Cinnamon and Raisin (8 x 38.1g); and Raspberry & Cranberry (10 x 38.5g) variants. The Super Goodness Super Fruits range contains Vitamin B6, C, D and mineral Zinc to support the immune system and are available in Blueberry, Cranberry and Guava (10 x 35g); and Raspberry, Apple and Acai (10 x35.6g) variants. Both ranges are made from 100% wholegrain oats with beta-glucan, which can help lower blood cholesterol levels. Both variants carry an RRP of £2.99. Duncan McKay, Senior Marketing Manager at Grains UK, commented: “Taste, health and convenience continue to be important drivers at breakfast time, but consumers are also increasingly seeking a wholesome breakfast which is made with nutritious ingredients. “Hot cereals continue to meet this demand and Quaker Oats has been instrumental in driving growth in the cereals category by 65%, with sales doubling over the last seven years.”

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News

Off-Trade

Off-TradeNews ALL THE LATEST CATEGORY ADVICE FROM HEINEKEN P48

Barrel-aged beer The Craft Beer Clan have released a series of whiskey barrel-aged beers. The beers have spent up to nine months maturing in casks, with each recipe carefully developed to complement the character of the regional whiskey casks. The four 8% variants (Spruce Ale, Imperial Stout, Red Rye Ale and Golden Ale) retail for £5.

Bud goes to dub festival Budweiser has announced a three-year global partnership with massive international electronic music festival Tomorrowland as part of their collaboration with Dutch DJ and producer Tiësto. The deal included a nationwide competition offering consumers a chance to join the Budweiser tour bus to the festival in Boom, Belgium.

Kronenbourg transports you to the mountains

NON-ALCOHOLIC DISTILLATES Diageo backs new non-alcoholic distilled spirit

Diageo backs first ever distilled non-alcoholic spirit Seedlip Spirits giant Diageo has confirmed its first investment in a distilled non-alcoholic spirit as part of a funded accelerator programme for entrepreneurs launching and scaling innovative drinks brands. Distill Ventures, the Diageobacked business, is launching Seedlip (RRP £27.99), the world’s first distilled non-alcoholic spirits brand. It was created by entrepreneur Ben Branson to solve the dilemma of ‘what-to-drink-whenyou’re-not-drinking’. Branson said: “With

Seedlip we’re effectively developing a new drinks category, appealing to consumers looking for a refined alternative to alcohol. This really was pioneering work and partnering with Distill Ventures has helped me shape the product I dreamed of.”” Shilen Patel, co-founder of Distill Ventures added: “We continue to explore and invest in this area and, in Seedlip, we have found a unique product which gives people a complex and refined drinking experience.”

Heineken are offering shoppers

BEER

thousands of chances to win a

The San Miguel Rich List

variety of highly desirable pizes, including a trip for four to the Alsatian mountains, Germany, with a new on-pack promotion. The marketing campaign, titled ‘Alsace-tians’, plays on its title, with graphic of both a mountainous landscape and an Alsatian hound.

Morgenrot gets crafty Manchester-based importer Morgenrot has grown its Spanish portfolio with the launch of two craft beers from Rioja’s Cervecera Artesana. The new beers are 4.9% bottle-conditioned lager Palax and 5.4% double-fermented ale Ceriux Rubia.

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Beer brand San Miguel has announced a campaign in partnership with The Guardian and The Discovery Channel. The campaign focuses on the quest to find ‘life rich’ individuals from across the globe who have unique, compelling, aspirational human stories, four of whom who will bring the campaign to life in a series of videos. The company will release this series of short films through YouTube, Facebook and video on demand, as well as commercial TV spots through their Discovery Channel partnership, in order to reach targeted audiences during peak programming from July through until December 2016. The Guardian will feature a series of DPS advertorials from early August until the end of the year. Liam Newton, Carlsberg UK’s Vice President of Marketing, said: “This campaign is based on our brand research which showed that San Miguel drinkers value experiences and are continually looking for fulfilling ways to live their lives. This campaign responds directly to that desire and is intended to build brand equity with our ‘experience seeking’ audience.” The UK ad campaign is designed to give insight into the brand’s 125-year history as well as promising a future full of rich experiences under the banner of “And The Best is Yet to Come”.

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Off-Trade

ALCOHOL HARM

Diageo tackle alcohol abuse Diageo is one of 12 leading producers of beer, wine, and spirits who are signatories of the Producers Commitments Report to tackle alcohol-related harm. The latest report shows signatory companies have stepped up implementation of their Commitments to contribute to the global target of reducing alcohol-related harm by 10% by 2025. WHISKY

Famous Fridays Winners The Famous Grouse has released the winners of its ‘Famous Fridays’ headliner competition. The competition which launched at the beginning of July by Scotland’s favourite whisky gave four talented artists or bands the chance to win a headline slot at The Famous Grouse House this Edinburgh Festival. Winners were: electronic pop rock band DMS; pop band The Mink Soled; acoustic singer Adriana Spina; and indie folk singer Lou Mclean.

UNDERAGE DRINKING Under-age drinking falls to lowest level on record

Portman group regulation report sees record low on underage drinking The Portman Group has published its Annual Marketing Regulation Report for 2015, revealing that the rates of 11 to 15-year-olds drinking has fallen to the lowest level on record. This year’s report highlights the range of work undertaken by the Group to help alcohol companies market their products responsibly and includes a new video animation to explain the rules and remit of the Portman Group Codes In 2015, there were six complaints made to the Portman Group. Four were formally investigated. Of the four cases formally investigated, one complaint was upheld and three were not upheld. In the same year there were 592 advice requests made to the Portman Group. The Portman Group Codes of Practice cover the naming, packaging and promotion of alcoholic products and the sponsorship of events by alcohol

brands. The first Code was launched in 1996, initially to prevent the marketing of alcohol to under 18s. Today, official government figures show rates of underage drinking are at record lows. Over the last 20 years the Code’s remit has been widened and its rules updated to keep pace with the changes of modern marketing. Secretary to the independent complaints panel, Henry Ashworth said: ‘‘As the 20th anniversary of the Portman Group Code approaches, I am delighted to see positive trends around young people’s drinking continue. This is an area that the industry works incredibly hard on, both in careful marketing and through their outreach programmes. We look forward to the future and will do all we can to ensure positive trends continue.”

CIDER Heineken’s Strongbow brand aims to own the Olympics

Strongbow aims for Olympic wins With all eyes on Rio, Strongbow is positioning itself at the heart of the action with UK fans in their latest TV advert. The six-week campaign, in line with the cider brand’s sponsorship of Team GB ahead of the upcoming Olympics, kicked off on 14 July with a 30-second TV spot. The advert is a rallying cry for the nation to come together and cheer on Team GB at the games this summer, featuring clips of people in locations all across the country watching the games unfold. It is the first campaign to feature the full Strongbow range, including Original, Dark Fruits and Cloudy Apple variants. Marketing director at brand owners Heineken, Cindy Tervoort, commented: We want to bring back the excitement we all felt during London 2012 and www.slrmag.co.uk

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News

Q: A store across the street from us had a “Wimbledon” theme display set up near the front door with champagne and strawberries on the day of the Men’s Final. I thought alcohol had to stay on the shelves? Stephen Says: Whilst it was great for us all to celebrate Andy bagging his second title, alcohol can only be displayed in areas as shown on your premises licence layout plan. These are the areas approved by the licensing board. If a temporary table or display was set up with alcohol outside the designated areas this would breach the licensing Act and is a criminal offence. Remember that there are special rules over the advertising of alcohol products remaining within these approved areas too. Q: My store is near to a British Forces Garrison and service personnel try to use their military I.D. as proof of age when purchasing alcohol. I insist on a passport or driving licence but my manager argues military I.D. is acceptable – what is the position? Niall Says: Whilst the licence holder has ultimate discretion to operate a policy on acceptable forms of I.D., as part of the Challenge 25 criteria, the list of acceptable I.D. was expanded in October 2013 to include MOD Form 90. The full list is: passport; a European Union photocard driving licence; a Ministry of Defence Form 90; a photographic identity card bearing the PASS hologram; a national identity card issued by a European Union member state (other than the United Kingdom, Norway, Iceland, Liechtenstein or Switzerland); or a Biometric Immigration Document. Q: I’ve heard there is to be a crackdown in illegal workers in the restaurant trade. Will this affect convenience stores?

rally the nation to get behind Team GB. The pride and enthusiasm we experienced as a nation in 2012 was incredibly special, and we anticipate that our campaign will help the nation feel it once again.” The campaign will run across a range of media channels including TV, out of home, video on demand, radio, digital, and social.

Stephen Says: There are draft regulations which, if enacted will prevent someone from applying for a licence if he/she has been convicted of immigration offences. This will apply to any licensed premises including the retail trade. There is no firm date as to when these rules will kick in, so keep an eye out for updates in SLR.

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Inside Business

Market Research

FROZEN FOOD MARKET SET TO GROW

SAYS LATEST RESEARCH

The latest Frozen Food report, based on a raft of up to date market research, suggests the frozen food retail market will grow over the next 12 months. BY ANTONY BEGLEY

“The case for frozen food is no longer in dispute thanks to our members who have built up a significant bank of evidence to promote the nutritional, cost, quality and sustainability benefits of frozen.” BRIAN YOUNG, BFFF CHIEF EXECUTIVE

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ales of frozen food in retail are set to grow further according to a new report produced using the latest research from Kantar Worldpanel, BRC-Nielsen, Horizons, CGA Strategy and MCA. The Frozen Food Report II, produced by British Frozen Food Federation, states that the value of frozen food sold in the UK in retail is now worth £5.73bn. The report also predicts that the value of retail sales will continue to grow at between 1% and 2% over the next five years, driven by innovation and demand for convenience. As well as examining the development of the frozen food market in the last five years, it also highlights the opportunities and challenges it faces in the next five years. It does this by on four broad themes: 1. market growth 2. changing customer perceptions 3. food industry drivers 4. the future of frozen The report highlights how, unlike the vast majority of other market sectors, frozen has succeeded in avoiding price deflation. This is particularly true at the premium and discount ends of the spectrum, a fact that the report puts down to customers’ recognition of the value and quality that frozen products deliver.

This is evidenced by the value growth of a number of a key product categories including pizza, ice cream and frozen vegetables which are all in double digit growth over the last five years. Commenting on the launch, BFFF Chief Executive, Brian Young said: “The UK’s frozen food industry is a real success story and I am proud to say that, despite a challenging period for the entire food industry, the sector has demonstrated its resilience and has enjoyed solid growth. In the next five years we are set to enjoy further growth as the industry continues to innovate and respond to changing consumer demands. “The case for frozen food is no longer in dispute thanks in part to BFFF and our members who have built up a significant bank of evidence to promote the nutritional, cost, quality and sustainability benefits of frozen.”

STAR PERFORMERS In the last five years, the frozen market has seen some particularly impressive growth figures in a number of product categories, including: Q Pizza – up 11.1% in value Q Ice cream – up 23.7% in value Q Vegetables – up 13% in value

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Inside Business

Store Advice | Making Social Media Work For You

HOW CAN I UTILISE SOCIAL MEDIA FOR MY STORE? Social media has become one of the most powerful tools in a retailer’s armoury for driving footfall, sales and community engagement – and it’s easy to do well. SEAN RUSSELL, HEAD OF DIGITAL, COSTCUTTER SUPERMARKETS GROUP

he headline is what the majority of retailers usually ask me. It’s very rarely “why should I use it?” as most retailers already recognise that social media is now just a part of everyday life and thus provides numerous opportunities such as raising awareness and communicating competitive advantage to the local community. Yet many retailers are either nervous about getting started with social, or have created an initial presence without having a clear content strategy, resulting in their social endeavours being short-lived. Admittedly, it can quickly become a confusing and fruitless drain on resources if you are not clear on what you are

doing. That’s why a focused, disciplined and tactful approach is key to reaping the rewards such as footfall and sales. As Head of Digital at Costcutter, one of the ways that I help our retailers thrive is by empowering them to engage their consumers via social media. This is done via our social media training programme which, after a successful pilot, we are now rolling out to all of our retailers. By creating local social media pages that are linked to our master retail brand pages, our retailers can communicate their personality to a highly targeted audience whilst maintaining brand consistency. As part of the programme we run a number of face-to-face group workshops, individual and tailored online training sessions, whilst also providing on-going support. Typically, we would begin with Facebook training before advancing to other channels such as Twitter. This is because it has the scale, but allows retailers to get to grips with the principles in a much more forgiving environment. A great example of a retailer who has worked with our digital team to use his Facebook page to directly increase in-store sales is Mace retailer Alan Kasch.

Alan runs his store in Worcester and, during a recent sporting event, took the opportunity to use the event to increase store footfall and sales. Alan used his Facebook page in the build up to a key game to promote a snack and alcohol offer to local Facebook users. The promotion proved so popular that sales leading up to the game rose to the extent that extra staff had to be called in to replenish stock. Another member who has seen fantastic results is the award-winning Derek Ritchie of Costcutter Ellon. He has successfully used Facebook’s paid advertising to boost posts to the local community, targeting specific consumers by age, gender and interests. This activity has proved to be a cost-effective alternative to advertising in the local paper, not least because Facebook provides detailed analysis on reach and engagement levels – so Derek knows what does and doesn’t work for his store. At Costcutter we offer social media training for free and its available to all of our members as part of a wider initiative called ‘Your Sell More Toolkit’, a package of new tools and ideas that helps retailers grow sales and get more from their partnership with the Group.

WOODLANDSlocal GETTING SOCIAL IN WOODLANDS LOCAL Social media has been an important part of Woodlands Local’s armoury for a long time with significant and regular activity happening on Facebook and Twitter. Much of the work relates to our Woodlands Local Reward Club and aims to promote membership and make both members and non-members aware of the deals we have running at any point in time. We use Facebook principally for driving awareness and, when we have a strong campaign running – like our #AnyoneButEngland campaign during the Euros – Facebook can be great for generating conversations, awareness and laughs. This is particularly true when we promote Tweets which is quite cheap (£20 to £30) but gets our message out to many thousands of new people in the Falkirk area. We also use Facebook and Twitter to let people know about developments at the shop like new deals, new products, the refit and so on. It only takes a few minutes a day and it can make a big difference in-store.

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Inside Business

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SLR REWARDS

THINKING SMART Thanks to winning the first ever ThinkSmart Innovation at this year’s SLR Rewards, Spar Leven Street owner Omar Nasir picked up a new Apple Watch, as well as the satisfaction of knowing his hard work is paying off.

reated in 2003 to recognise and reward innovation and excellence in Scottish c-stores, the SLR Rewards have blossomed into a unique event in the UK retailing calendar. To keep up with the changes in local retailing, three new categories were introduced this year to give innovative, progressive retailers more chances to win. These are Ecigs Retailer of the Year, Team of the Year, and the ThinkSmart Innovation Award. There’s no doubt that technology plays an important role in any modern c-store. Sponsored by Paypoint, the ThinkSmart Innovation Award recognises the most inventive uses of technology in Scottish c-stores. Motherwell Spar retailer Omar Nasir was the very first recipient of this award thanks to a highly innovative tobacco gantry that he introduced into his store. Omar’s next-generation tobacco vending machine gantry has LED screens that make great use of ‘lost’ space behind the till while also increasing security and reducing shrinkage. A twin door unit holds 96 product lines and a separate single door unit holds 48. The dividers inside are moveable and so as range reviews take place, changes can easily be accommodated. “You just press a button on the till and the pack dispenses itself, meaning you don’t have to go through the flaps

searching for a product,” says Omar. The screens on the gantry also allow Omar to display rotating special offers, advertisements and local community information and charity news to his customers. The screens are linked to other screens set up around the store with one a 32” TV in the shop window dedicated to taking customer communication to the next level. Steve O’Neill, Group Marketing Director at category sponsor, Paypoint, says: “At PayPoint, we’re proud of our 20-year history of tech-led innovation so we were especially proud to sponsor the ThinkSmart Innovation Award.” “Our congratulations to category winner, Omar Narsir of Spar Leven St, who picked up the award for both his vision and commitment to sourcing a next generation vending machine-style gantry which features three digital screens, allowing him to advertise products and information to his customers.”

“Omar is a great example of the many entrepreneurial retailers who are driving growth through innovation in the convenience industry.” STEVE O’NEILL, GROUP MARKETING DIRECTOR AT PAYPOINT

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SLR REWARDS

GOOD TO GO

The winner of this year’s Food To Go award was Glasgow One-Stop retailer Sam Ali for her stunning store-within-a-store concept – and she picked up a £500 Amazon voucher for her efforts.

ood to go is one of the fastest growing and most important categories in local retailing with many great concepts out there as retailers strive to make the most of this exciting opportunity. One such retailer is Sam Ali who owns a One-Stop store in George Street in Glasgow. Sam’s food to go offering simply blew the judges away with a combination of world class execution and a great range of products. Effectively a store within a store, Sam’s food to go offering sits at the heart of the Strathclyde University campus and offers nutritious, tasty and great value food to go to a hungry, willing audience. “The win meant a lot to me,” says Sam. “We had just opened up so it was a real morale boost for the shop because we’ve worked hard to get everything up and running and looking good. It was one thing to have people come in and be really enthusiastic about it, but to actually win an award was such an honour.” Sam says the reaction from customers has been fantastic, which is great news. “We have

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the award displayed up behind the counter and we’ve had a lot of people noticing and congratulating us,” she says. “There’s a lot of local clientele here and we get the same people coming in day-in day-out which is really satisfying because it shows we’re doing something right, and they all seem to think the award is well deserved. We’ve also had quite a few of our competitors coming in as well to see what we’ve done right, presumably so they can try and copy us, which is flattering.” As for the prize, Sam intends to put her £500 worth of Amazon vouchers towards a new Apple Macbook. She says: “I’ve been wanting to buy one for a while and have just been waiting for an excuse!” Sponsor XXXXX of XXXXXX said: “During the judging we saw some really amazing food to go concepts but Sam’s Make Your Own solution was just wonderful. It was a great idea, which is important, but it was so well executed in-store. “Even during the visit the store was packed so it’s clear that the idea is a winner and Sam’s customers love it. And I can understand why!” AUGUST 2016 | SLR

03/08/2016 17:57:02

WOODLANDSlocal

Inside Business

Woodlands Local | Monthly Update

WELCOME TO

WOODLANDS LOCAL 2.0! We can hardly contain our excitement as we complete the final refit of Woodlands Local with a new floor and all-new shelving, giving our customers a massively improved shopping environment.

t has been a long time coming, but this month has marked a very significant development of our proposition in Falkirk. As SLR went to press we were in the final stages of completing Phase II of our refit of Woodlands Local, involving the laying of a new floor and the installation of all-new shelving, as well as finishing off a few small cosmetic issues around the store. It’s a hugely important development for us because, for the very first time since we took over three years ago, the store now looks like a truly modern, bright, clean convenience store. Coming after the refit of the till, counter and hot food area in Phase I, the latest refit means we now have a real platform upon which to build an efficient and professional store that will deliver for us and for our customers.

PROFESSIONAL JOB The refit was carried out by an experienced and, we would have to say, an extremely enthusiastic, friendly and effective team from Direct Shelving Service. Graham Mason’s staff were hugely accommodating and interacted exceptionally with both our own store staff and our customers.

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Much of the store was kept open during the refit, which was both a surprise and a relief. We had fully expected to have to close the store completely for at least two days – but the reality is that, compare to the previous week, sales were only down by between £100 and £150 per day during the refit, which was fantastic news. While the physical refit is important, it is actually only the start of a process of refocusing the entire store, applying all the lessons we’ve learned over the last three years to reshape the store to better suit the shopping habits and needs of our customers.

MISSION SHOPPING The entire store is being re-laid with a ‘mission shopping’ ethos with distinct areas of the store dedicated to breakfast, lunch, meal for tonight, big night in and so on. This involves, for example, siting raw chicken and mince, for example, directly next to and adjacent from pasta, pasta sauces, rice, fresh veg and so on, to ensure that customers looking for a meal for tonight www.slrmag.co.uk

03/08/2016 19:09:09

Monthly Update | Woodlands Local

Inside Business

A WORD FROM THE BOSS

can find everything they need for the most popular recipes within arm’s reach. It’s all about making it easy for customers. The biggest difference of all will be when we swap the alcohol section at the front of the store with the fresh and chilled section at the back. It is our hope that bringing chilled foods, fruit, veg, milk and dairy to the front of the store will grow sales in these high margin, high volume categories. We anticipate that the impact on alcohol sales will be minimal, or may even be positive. The area dedicated to alcohol will actually fall but the amount of chilled space will increase which will allow us to add a broader range of chilled white and rose wines, a bigger range of larger pack beers and ciders (8 packs and bigger) and it will allow us to increase the facings of our most popular 4-pack beers and ciders. This should help drive sales and minimise re-stocking and availability issues.

OWN LABEL RANGE Another key development in the refit will be the introduction of a large selection www.slrmag.co.uk

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of products from Cosctcutter’s own label ‘Independent’ range. This will be the first time we have stocked an own label range in the store and the general merchandising principle throughout the store will be to offer one premium option (Heinz Salad Cream, for instance) and one own label option (Independent Salad Cream). This should help de-clutter the store by removing lots of unnecessary range proliferation. We anticipate that this process alone will remove over 200 lines from the store. These de-listed lines will then be ‘repurposed’ and sold through as promotions. As we create our own dedicated POS and customer leaflets, we can sell these delisted products through as part of our standard three-weekly promotional programme. The refit also introduces two new dedicated promotional bays and a one metre £1 bay for the first time. One promo gondola end sits right at the front door – the first thing a customer sees – while the other sits near the hot food counter, visible from anywhere at the front of the store.

Well, what can I say? What a couple of weeks it’s been! There’s been lots of 14 and 16 hour days but when you look at Woodlands Local after our refit it’s hard to believe it’s the same store. We knew the new floor and shelving would make a difference but I just can’t tell you how much it transforms the place. The guys from DSS, Graham Mason’s shopfitting company, were just immense. Nothing was too much trouble and they were so friendly and courteous to everyone, customers and staff alike. Best of all, the quality of the workmanship was fantastic. I’m a bit of a handyman myself so I recognise good quality work when I see it. The feedback from customers has already started and most of it is unprompted. They just walk in and say ‘wow’ most of the time. The difference is that extreme. But the hard work only really begins now because we’re basically reworking every single category across the store and that involves a lot of work. We’re up to our eyes in Epos data and floor drawings and licence applications and planograms. But it’s exciting. I have to admit that. I’m delighted to see the look on our customers’ faces and I’m confident that the refit will deliver improvements where it matters most: in the till. I would also have to say a wee word of thanks to our team at the store show have certainly played their part, particularly Melissa and Marlyn who have worked extra hours without having to be asked and have helped us deliver our vision as quick as possible. It’s a people business, this, as we all know, and I’m lucky to have some great people around me. It’s also worth saying a wee thank you to John and Hugh from Costcutter who have been brilliant in heping is get our ranging and merchandising right, particularly when it comes to frozen and chilled. Your support is very much appreciated guys.

Gerry

AUGUST 2016 | SLR

03/08/2016 19:09:12

Inside Business

Woodlands Local | In-store sampling

WOODLANDSlocal

WOODLANDS

WORLD EXCLUSIVE! OUR CUSTOMERS 1ST TO RATE

ZER0-SUGAR IRN BRU Woodlands Local premiered the new soft drink from Barr at a world-exclusive in-store taste-test event, asking the loyal customers what they thought.

or the first time in 35 years, Irn-Bru has unveiled a brand new permanent product to its line up in the form of Irn-Bru Xtra: a sugar-free option that loses none of the flavour. The launch comes four months after the Chancellor announced a tax on sugary soft drinks, which is due to be levied in 2018. The new drink, that rolls out in August, has apparently been a year in the making, the team behind it working tirelessly through trial and error to create a sugar free Irn-Bru alternative without affecting the signature taste. On 22 July, Woodlands local hosted the world exclusive public-premier of Irn Bru Xtra at an in-store taste-testing event. As the slick packaging for the new soda is yet to begin production, we were left with a stack of unmarked tin can, and after tasting it ourselves we were not a hundred per cent convinced, despite the reassurance of the Barr representative, that inside the can was not just regular old Irn Bru. But if you need a little more evidence than our word that they taste identical, then just ask those who swung by the Woodland’s Local exclusive launch to try out the new product for themselves. “You can’t taste the sweeteners which makes such a difference,” said Alan Campbell, one of the first tasters of the day. “It really tastes like it’s got sugar in it,” mused NHS staff Alan Barclay. The sentiments of Alan and Alan were backed up by Mrs Sharky (and her camera-shy dog Bobby) who proclaimed it was “just like the real thing but without

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the sugar – it tastes exactly the same!” The most enthusiastic about the new drink were the younger tasters, with both Andrew Barrett and Andrew Lance leaving the event with grins from ear to ear and telling us that we had made their day. There were, of course, the one or two Irn-Bru loyalists who told us in no uncertain terms that they preferred the original – whether or not we believe them is another matter – but the common phrase among our tasters of all ages was “I would definitely buy that.” “The soft drinks market is evolving and consumers want more choice,” said Adrian Troy, AG Barr’s Head of Marketing. “Irn-Bru is ideally-placed to respond positively to shoppers’ changing attitudes. Irn-Bru Xtra has performed exceptionally well in consumer research with a high percentage of both regular and low calorie carbonates consumers saying they would buy it, demonstrating the fantastic incremental growth opportunity for retailers.” Irn-Bru Xtra will be available in a range of pack formats including 330ml cans (singles and multipacks), 500ml and 2-litre PET and 750ml glass bottles in both plain and pricemarked options. The new product will be backed by a £2m investment, including a new outdoor advertising campaign and range of POS. “Scottish shoppers already spend more on Irn-Bru regular and sugar-free than any other soft drinks brand and these sales are incremental to the category,” added Troy.

www.slrmag.co.uk

03/08/2016 19:09:19

“Re

“

“T

Inside Business

In-store sampling | Woodlands Local

“A thumbs up from me.” WILLAM MCPHEE

“It’s better than the diet one.” CHRISTOPHER FORSYTH

“Aye, I’d definitely buy it.” ANDREW BARRETT

“Just like the real thing but without the sugar – it taste’s exactly the same”

“Really, really nice.”

GRANT SMITH

MARGO SHARKEY

“It tastes like Irn Bru”

“Woof”

BOBBY THE DOG

RONNIE PEEBLES

“It really tastes like it’s got sugar in it” ALAN BARCLAY

“That’s really nice!”

LINDA HUNTER

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“It’s good, taste’s really different – it’s made my day!” ANDREW LANCE

AUGUST 2016 | SLR

03/08/2016 19:09:55

WOODLANDSlocal

Inside Business

Woodlands Local | Inside The Refit

A LOOK INSIDE THE REFIT…

The refit of Woodlands Local is far more than a cosmetic upgrade – it has been driven by a desire to entirely restructure the store around a mission-shopping ethos. BY ANTONY BEGLEY

hile the things that will strike shoppers first when they see the new and improved Woodlands Store will be purely cosmetic – shiny new floor, brand new shelving – the more fundamental changes will take slightly longer to absorb. The macro layout of the store is in the process of being entirely restructured as we move towards a mission-shopping based approach. The refit forms an integral part of that strategy, not least the introduction of three standalone shelving islands where a single 4m fixture used to run. These islands create 12 opportunities for focused bays where previously we only had a confectionery fixture and a snacks fixture. These bays will introduce entirely new sections and will generate much better sight lines throughout the store, enabling customers to quickly and easily see that we have moved the fresh and chilled section to the front of the store, swapping it with the alcohol section which moves to the back. Our key focus here is to drive sales of high volume, high margin chilled lines. We anticipate that sales of alcohol will not suffer from being moved to the back as alcohol is a far less impulsive category. The fact that much more of the alcohol section will now be chilled

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www.slrmag.co.uk

03/08/2016 19:09:57

Inside The Refit | Woodlands Local

www.slrmag.co.uk

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Inside Business

AUGUST 2016 | SLR

03/08/2016 19:10:18

WOODLANDSlocal

Inside Business

Woodlands Local | Inside The Refit

may even increase sales of beer, cider, wine and RTDs. As part of our commitment to making more of our fresh and chilled offering, we have started buying fresh, chilled and frozen from Costcutter, as well as an extensive range of Costcutter’s Independent own label range. This is the first time we have carried an own label range in We’re treating the hot food part of the Woodlands and we have high hopes that the store as another individual mission and range will meet with significant demand from we’re adding a facing island to offer a range value-focused shoppers. of ambient cookies, doughnuts, pastries The two key ‘missions’ we are targeting from and so on for the first time. The island sits the new fresh and chilled bay are ‘breakfast and precisely where shoppers wait as their fresh lunch’ and meal for tonight’. The chilled bay sandwiches, rolls, wraps, pies and pasties are nearest the front door will now host a wide range prepared and served and we are hopeful of a of chilled lunch items: freshly made sandwiches good volume of sales from the sweet treats and rolls, yoghurts, pasties, pies, prepared fruit, island. healthier snacks and so on. It will take time to get our customers used The ambient ‘island’ directly facing this to this new expanded range but we will be breakfast and lunch bay will then host a range working hard on social media, through our of ambient breakfast and lunch items such as Woodlands Local Rewards Club and using breakfast bars, nuts, snacks, Pot Noodles, pasta in-store communications materials to ensure pots and so on. The idea is clearly to avoid ‘menu we get the message across as quickly and fatigue’ by offering range of options to our efficiently as possible. shoppers. We also intend to have an official opening Similarly, the ‘food for tonight’ section will day party once we’ve completed all of the offer a mix of options from ready meals and easy re-ranging and merchandising with lots of to prepare foods through to all the ingredients giveaway stock, goody bags and a chance to for making the most popular range of meals. For sample the Independent range in particular. the first time we now have a range of fresh meats The addition of two new freezers also – mince and chicken – and by siting allows us to greatly improve our these next to the fresh veg display we frozen offering with a double LICENCE APPLICATION As part of the refit we will be moving the hope to drive bigger baskets. Again, door freezer dedicated to food alcohol section to the back of the store which directly facing this fixture is an and ingredients, and a single will require a minor variation to our licence. ambient island offering everything door freezer for take home and We are working with Niall Hassard of TLT else shoppers need to make a full impulse ice cream and desserts. Solicitors on this but it should be a reasonably meal: pasta and rice, pasta sauces, This is also being supplied straightforward process as we are slightly noodles, accompaniments, tinned through Costcutter. reducing the amount space dedicated to veg and so on. But the physical refit has been alcohol and moving it away from the front Featuring heavily in the chilled the catalyst for all this activity and of the store to the back. A new layout plan food for tonight section is a full it is working a treat. The team has been drawn and the application is being range of Independent ready meals at Woodlands is excited and are processed. which are well presented, good working harder than ever to make quality and great value. the dream come true.

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www.slrmag.co.uk

03/08/2016 19:10:22

Inside The Refit | Woodlands Local

Inside Business

WOODLANDS PICKS

SLR’s own store trials the latest products at the moment to give local retailers an indication of how the biggest product launches can be marketed in store. Here’s Woodlands pick of the best products currently on shelf.

What? Heinz Pasta Shapes & Sauce Why? Parents seek meal solutions that can be made quickly and conveniently that their children will enjoy, and the Heinz Pasta Shapes & Sauce enables them to dish up a fun, tasty dinner. Marketing support: Kraft Heinz is supporting the new lines with a fully integrated media campaign to drive awareness alongside engaging in-store activation. RRP: £1.19 for pasta shapes and £1.55 for pasta sauce. Woodlands thought: This new product range from Heinz gives the shelf something new for customers to try, and adds excitement to children’s mealtimes.

What? Mikado Double Dipped Why? Mikado’s light and crunchy texture has been hugely popular among consumers since its launch in 2009 and the new line is bound to attract chocaholic customers. Marketing support: The new product is available this month and will be supported by in-store and online activity throughout August. RRP: £1.35 Woodlands thought: This is a strong brand that is well recognised by shoppers. it’s just a great addition to the range and will appeal to those looking for something a little different from a normal chocolate bar.

What? Nestle Fruit Pastels Infusions Why? With adults making up two thirds of all fruit sugar confectionery consumption occasions, there is a gap in the market for fruit sugar products with a more grown up flavour proposition. Marketing support: The Infusions launch coincides with advertising from Rowntree’s £5.6 million masterbrand campaign, which showcases the full Rowntree’s range. RRP: £1.29 Woodlands thought: With the growth in the pouch sales, this latest range from Nestle looks to be a real winner with both young and old customers.

What? Whiskas Cat Soup Why? The super-premium Cat Soup segment is a huge emerging space, and consumer research has shown excitement and demand for innovation like this. Marketing support: The launch is supported by a £10m investment package from Whiskas including a new TV campaign and online sample giveaways. RRP: £3 for a pack of 12 Woodlands thought: The pet food category is a very mature one, so when something truly new comes along, you have to try it. Also, spending on household pets is at an all-time high as owners look at ways to give their furry friends something new at meal times.

What? Homepride cooking sauces Why? The new All American Texan Chilli range hops on the back of the ever-growing Americana cuisine market, and the new ‘Extra Veg’ Pasta Bake range will appeal to the more health conscious consumer looking to reach their five-a-day target. Marketing support: Homepride is going live with £900k TV campaign with extra focus on the All America Sticky range. RRP: £1.69 Woodlands thought: Pasta sauce is a household essential for most, and Homepride is easily one of the most recognisable brands. The slightly more adventurous customer is bound to step outside their tomato-and-basil comfort zone and try out these new ranges.

What? Yollies Why? The world’s first yoghurt on a stick is now available in singles packs, a new format which will help parents buy a healthier, convenient snack for their kids on-the-go. Marketing support: A series of fun online videos titled ‘Yollies World of Weird’, where children have to guess what’s hidden inside a box by using only their hands to feel the various weird objects, is supporting the new range. RRP: 59p Woodlands thought: This is a special treat for parents to buy for kids in store – an interesting alternative to sugared sweets or chocolate. It’s a fun, well-priced product with some great shelf appeal. We expect this to be a firm favourite with our younger shoppers.

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03/08/2016 19:10:24

Hotlines

Product News & Media Watch

Ready Brek J. Lyons Ready Brek has unveiled a new pack design and teddy bear character to relaunch the brand. Available in two flavours, Ready Brek Original and Ready Brek Chocolate come in price mark and nonprice mark packs. The new design has now been rolled out.

Kids Duo Pot Kraft Heinz Kraft Heinz is introducing more exciting characters to its Heinz Duo Pots pasta range. This July, Warner Bros favourites Scooby Doo and DC Super Friends join the existing portfolio. The new additions offer a relevant and modern solution for consumers looking for new formats to engage their children and bring fun to mealtimes.

JPS LEPs Imperial Tobacco Imperial tobacco has released limited edition packs of JPS, telling the story of of the iconic brand. The packs, showing pictures such as Union Jacks, motorbikes, bowler hats and Big Ben, are available in JPS Blue, Black, White, Silver and Menthol in King Size 19s and Superkings 19s formats, all with an RRP of £7.59 a pack.

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Barr’s biggest soft drinks launch in the last decade Irn-Bru has unveiled Irn-Bru Xtra, the first permanent new product from the brand in 35 years and one free from sugar. The launch comes four months after the Chancellor announced a tax on sugary soft drinks, which is due to be levied in 2018. “The soft drinks market is evolving and consumers want more choice,” says Adrian Troy, head of marketing at AG Barr. “IRN-BRU XTRA has performed exceptionally well in consumer research with a high percentage of both Regular and Low Calorie carbonates consumers saying they would buy it, demonstrating the fantastic incremental growth opportunity for retailers.” IRN-BRU XTRA will be available in a comprehensive range of pack formats including 330ml cans (singles and multipacks), 500ml and 2 litre PET and 750ml glass bottles in both plain and price-marked options. The product will be backed by a heavyweight £2m investment, including a new outdoor advertising campaign, complemented by a range of POS. “Scottish shoppers already spend more on IRN-BRU regular and sugar free than any other soft drinks brand and these sales are incremental to the category,” adds Troy.

Quick Hot Meals Kraft Heinz From mid-July, Heinz is extending its portfolio with the addition of Heinz Full of Flavour quick hot meal solutions. The range will include various flavours – including Spanish chorizo, Mediterranean vegetable and Thai – of microwaveable wet pots (RRP £2.29), Cous Cous instant dry pots (RRP £1.19), and noodles and pasta instant dry sachets (RRP 75p).

Frozen Desserts Mars Mars Chocolate Drinks and Treats has launched a range of frozen desserts featuring three of the top confectionery brands – TWIX Cheesecake, MALTESERS Pavlova and MARS Dessert Bar all with an RRP of £2.99. Mars hopes that the new reasonably priced range will maximise sales in the frozen dessert category.

Red Bull PMPs Xxxxxxxxxx Red Bull is targeting gamers with their new £4.49 PMP fourpacks. The launch is in line with their Red Bull 5G event with packs offering consumers a chance to compete in the North versus South gaming tournament with a grand prize of an all-expenses paid trip to Japan. The packs are available from 8 August.

www.slrmag.co.uk

03/08/2016 18:00:54

Product News & Media Watch Dairy Milk Chopped Nut Mondel z International

Spreads PMP Kerry Foods

Cadbury Dairy Milk have increased their tablet range with the addition of a new Chopped Nut variant. The 95g bar combines hazelnut chunks with the signature Dairy Milk chocolate in £1 price marked packs. It follows the success of their fruit and nut tablet launched last November.

Kery foods is aiming to boost sales of spreads and margarines for retailers with a line-up of Kerrymaid PMPs. The range will be made up of 500g tubs of Kerrymaid Buttery (PMP £1.49), Kerrymaid Sunflower Light (PMP £1.49), Kerrymaid Spreadable (PMP £1.69) and Kerrymaid Olive (PMP £1.69)

MEDIAwatch

Hotlines



Persil tells consumers to get down and dirty Persil is launching a new £4.5m ‘Dirt is Good’ campaign. It will run from July-September, targeting: TV, cinema, social media and be supported by an on pack promotion and the launch of the Persil Wild Explorers app, geared towards children. The campaign encourages families to spend time outdoors.

Wrigley’s encourage shoppers to shine Bassets Juicy Chews Mondelez

Heinz Creationz Kraft Heinz

After joining forces in February, Maynard and Bassets have added a new line to their popular Juicy Chews range, specifically designed to entice adult consumers. The 165g packs are available in cherry, orange and strawberry flavours and carry an RRP of £1.30.

Kraft Heinz is revamping their beans and pulses range and introducing four new varieties: Mexican Beanz, Ved Chilli Beanz, Curry Lentils and Tagine Chickpeas. The 390g cans, which boast to contain two of your five a day, RRP at £1.29 each and can be bought in cases of six.

Wrigley’s Extra sugarfree gum has rolled out a new TV campaign titled ‘Time to Shine’. The media push focuses on harnessing inner confidence and rising to the occasion and reminding consumers that when your mouth feels fresh, you feel at your best.

Kerry Foods is music to consumer’s ears Kerry Foods is teaming up with Universal Music to offer consumers a free music download when they purchase a promotional pack of Attack A Snak or Cheestrings. The new onpack promotion will run until late September. The free download is worth 99p.

Tortilla tussle from Doritos Long Life Bwaffle Stute Foods

Vimto Jelly Beans Nichols Plc

Bwaffle, an individually-wrapped 55g waffle with a 15g sachet of hazelnut chocolate spread with an rrp of 79p, has been launched by Stute Foods. It is available in a 14 x 1 display box, as well as a counter and floor stand, and has a shelf life of four months.

Tangerine Confectionery has collaborated with Vimto for a range of mini jelly beans in Original Vimto, Cherry Vimto and strawberry Vimto flavours. The product will be available in three pack formats: 38g and 200g bags as well as a £1 PMP. They are dairy free and suitable for vegetarians.

Doritos has launched a new TV and internet campaign where shoppers will have the chance to eliminate one of two new flavours: Flavour ‘A’ (Sizzling Salsa) and Flavour ‘B’ (Ultimate Cheeseburger) 200g, (RRP £1.99) via Facebook, Twitter and a dedicated website. the winning flavour will roll out into market later in the year.

Sandwich-inspired crisp range Walkers and Heinz have released six limited edition sandwich-inspired crisp flavours, including bacon & tomato ketchup, cheese toastie & Worchester sauce; and sausage & brown sauce variants. For 11 weeks, an onpack promotion offers consumers the chance to win £10,000 every week.

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

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03/08/2016 18:01:04

Feature

Category Management

Keep

R O G E T A C E G A N A M at the at the

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core core www.slrmag.co.uk

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Category Management

Feature

SLR’S TOP 10 CATEGORY MANAGEMENT TIPS 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 Be sure to make promotions highly visible Walk your shop like a customer – do you like the layout? Are you being disrupted? Q Regularly visit your competitors – how does your ranging and merchandising compare? Q Use secondary and tertiary sitings Q Make good use of POS and other in-store theatre.

Y R O T N E M E G

SLR talks to some of the biggest brands in the business representing the key categories in local retailing to seek the best advice available to help retailers achieve world-class category management.

hese days, there’s more to category management that there used to be. The days of looking at a store purely category by category are over. The growth of the a mission-based approach have changed all of that and this has huge implications for all aspects of category management. Best practice still looks like it always has and is just as important now as it ever was, but the way the categories interplay with one another is changing. At it’s most basic level, this requires retailers to ask why customers are coming in-store, whether that is for breakfast, lunch or a big night in. Many retailers have already started to ensure they have all the relevant products for making basic evening meals grouped together in-store, with a suggestion for tonight’s dinner perhaps (whether or not they are discounted in a ‘dinner deal’). Being ‘solution driven’ isn’t necessarily about promoting these ‘solutions’, more that the ranging and merchandising considerations have been made with satisfying a specific shopper’s ‘mission’ in mind. But sitting below that big picture approach is the age-old set of principles that underpin great category management. Ranging, merchandising and availability are as vital as always. Crucial to creating www.slrmag.co.uk

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and maintaining a best-in-class approach to category management is being open to listening to the advice of suppliers, wholesalers, trade magazines – pretty much anyone who has anything helpful to say on the matter to help you perfect your category management skills instore. There’s a reason the suppliers spend hundreds of thousands of pounds on reserarch and category management systems: they work. They ensure that you are stocking the right range, possibly the single most important thing you can do as a retailer. Presenting it will and ensuring 100% availability, or as near to it as you can manage, is the next step. The advancement of modern EPoS systems has made it easier than ever to ensure that you have the right range in stock; running range reviews and identifying which lines are below the acceptable sales threshold is possible at the click of a mouse. As with everything else in local retailing, category management is a process that never ends. It’s not something that’s ever finished. But if you want to get the very most out of your store, then efficient and effective category management is an absolute must. Over the next 14 pages you will see some of the latest and best category management available from some of the biggest brands in the business. Enjoy. AUGUST 2016 | SLR

03/08/2016 17:22:37

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03/08/2016 17:22:37 29/01/2016 16:47

Take a bigger bite of the biscuit opportunity! Stocking the best sellers can grow * your biscuit sales by as much as 13%! “

“Following the Better Biscuits Best Sellers relay, my biscuit sales have grown by 13%.*

Just shows what you can achieve by focusing on the top sellers!”

Sandeep Bains, Simply Fresh, Faversham

Page: 1 of 1

Go to www.betterbiscuits.com to book a relay for your store!

†

Visit our one-stop shop for total biscuit category advice Advice covering all manufacturers and brands Specific ranges for Symbols & Independents and Forecourt stores Ranges and layouts for different fixture sizes *Based on 6 week store trials, May 2016 †Limited number available

Catagory management.indd C&I BBBB 2 pager update 44 SLR - 3587 Final AW.indd 2

03/08/2016 17:22:38

Printed6

Planograms

For full range lists, visit www.betterbiscuits.com Planogram: 1 Bay - Front View

2m Symbols & Independents fixture

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Project: UB Perfect Store 2014

1m Symbols & Independents fixture

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File: C:\Users\kurylowA\Desktop\Core range POGs\1 Bay SymIndHS.psa

Top 20 Best Sellers Symbols & Independents

McVitie’s Milk Choc Digestives 300g

Tunnocks Teacakes 6x24g

McVitie’s Dark Choc Digestives 300g

Fox’s Milk Choc Chunkie Cookies 180g

McVitie’s Digestives 300g

Tunnocks Wafer Caramel / Milk Choc 4x26g

McVitie’s Jaffa Cakes 150g

McVitie’s All Butter Shortbread 200g

Cadbury Milk Chocolate Fingers 114g

Jacob’s Cream Crackers 200g

Printed: File: C:\Users\kurylowA\Desktop\Core rangeMcVitie’s POGs\2Ginger Bay SymIndHS.psa McVitie’s Milk Choc Hobnobs 300g Nuts 250g 6 03/02/2016 16

Oreo Cookies Original 154g

Bahlsen Choco Leibniz Milk Choc 125g

Nestle Kit Kat 2 Finger 7x20.8g

Jacob’s Tuc Sandwich 150g

Maryland Cookies Choc Chip 145g

Crawford’s Bourbon Creams 150g

McVitie’s Rich Tea 250g

McVitie’s Fruit Shortcake 200g

Go to www.betterbiscuits.com to: Find the perfect ranges and layout for your store

Catagory management.indd 45

Enter our competitions

Book a biscuits relay†

03/08/2016 17:22:39 20/07/2016 14:33

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

Catagory management.indd 46

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

03/08/2016 17:22:42

TOP 10 SELLING GUM

RECOMMENDED GUM RANGE:

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

INTRODUCING DOUBLEMINT: Ideal for impulse occasions, the new Doublemint sugarfree mints portfolio has something for every mint usage occasion with a variety of formats.

REMEMBER TO CHAMPIO N NEW PRODUCTS SUCH AS WRIGLEY’S DOUBLEMINT TO CASH IN ON EARLY DEMAND!

The range includes a single roll pack of pressed mints (28g), smaller dual-coloured pressed mints within a bottle (70pc) and sharing bags of hardboiled mints (115g, 36pc). Doublemint gum is also now sugarfree.

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:

HIM! HIM! 2016 CTP – Available at: http://www.hscic.gov.uk/catalogue/PUB17137/CDHS2013-Executive-Summary.pdf. Last accessed October 2015 Ipsos Reasons to Chew 2014 Nielsen Scantrack Independents and Symbols VROS L12W to 18.06.16 (excluding bubblegum and skus in < 10% distribution)

Catagory management.indd 47

03/08/2016 17:22:44

13.8%

of Convenience Stores (independent and symbol) sales comes from alcohol1

Catagory management.indd 48

rands B e

57%

of category value comes from 10 core brands2

Pre

Co r

Cid

eer Cate

B r&

Product s ium

66%

of shoppers buy premium brands3

03/08/2016 17:22:51

Catagory management.indd 49

03/08/2016 17:22:56

Become an e-cig expert Need to know facts from JTI

To enable retailers to maximise sales from the e-cigarette category, JTI has created an informative guide which is available now to download at jtiadvance.co.uk Here, JTI provides a snapshot of the information contained in the category guide.

The e-cigarette Market overview category explained ÂŁ158m Nearly 2 million

In order to maximise sales, retailers must be knowledgeable about the various devices available, their USPs and how they work.

- the retail sales value of e-cigarettes in the UK last year.

Training staff to have these informed conversations is crucial to maximising e-cigarette sales.

Cigalikes

LED tip lights up when a draw is taken

40.9%

Vapour is drawn out through the mouthpiece

Battery powers up and activates the cartomizer

Microprocessor activates the LED

Rechargeables hold

- the number of adult vapers that currently exist in the UK.

Atomizer heats the e-liquid and turns it into vapour

value share of the e-cigarette market3 LED

Battery

Cartridge and Atomizer*

(Disposable and rechargeable devices available)

Closed tanks STOCK UP NOW ON LOGIC PRO

Charging Port Allows the battery to be re-charged

Battery Assembly Houses the battery and the electronics

Activation Button Press to activate device

Open tanks

of vapers

Mouthpiece The vapour is drawn out through the mouthpiece

Replaceable coil Heats the e-liquid turning it into vapour. Replace coil when device performance drops

Tanks are the fastest growing devices in the category4 and are used by

87%

Capsule Replace capsule once finished or if you want to change flavour.

Charging port Allows the battery to be re-charged

Catagory management.indd E-Cigarette Cat Guide DPS50Advertorial.indd All Pages

Activation Button Press to activate device

Tank Compartment Holds the flavoured e-liquid

Mouthpiece The vapour is drawn out through the mouthpiece

03/08/2016 17:22:56

JT Co 4.

Managing the category Retailers can maximise their profit opportunities within the e-cigarette category by following the below steps.

Stay stocked up • It's vital that the e-cigarette merchandising unit maintains 100% availability 24/7 to help guarantee repeat visits from local customers and maximise the profit potential of the category • Use a good EPoS System to monitor sales, identify trends and inform purchasing decisions

Think about your customers • Offering an e-cigarette range alongside traditional tobacco will ensure the store is a one-stop destination for existing adult smokers and vapers

Educate your staff • Ensure staff are well trained on how to educate vapers about the e-cigarette category and range stocked in store

TPD2 – how will it affect e-cigarettes? For now no action is required from retailers, but from May 2017, e-cigarette products will have to adhere to the following regulations: • Health warnings must cover 30% of the e-cigarette pack • 10ml max volume for e-liquid bottles • 20mg/ml max concentration of nicotine in e-liquids • 2ml max volume for e-liquids in cartridges and single-use devices In the meantime, retailers should concentrate on training staff and ensuring they have the right range and availability.

Merchandise correctly • Visibility is key – ensure e-cigarettes are located prominently in store, preferably on the counter top in a clear and tidy bespoke countertop unit

Where can I find more support? Retailers can download the category guide and complete the e-cigarette training module at www.JTIAdvance.co.uk

Continue to make the most of your JTI sales visit to ask any questions you have on the category or contact JTI’s Customer Care Line on 0800 163 503. JTI’s UK trading company is Gallaher Limited. 1. Nielsen Scan Track FY 2015 retail sales value of e-cigarettes Conventional retail only. 2. TNS Omnibus MAT Q1 2016. 3. Nielsen Scan Track YTD w/e 25/06/2016. 4. Nielsen Scan Track YTD w/e 25/06/2016 vs YTD 2015. 5. TNS Omnibus MAT Q1 2016.

Catagory management.indd 51

NEW

JTI Advance App JTI has also launched the new JTI Advance app – available to download now from Google Play and the App Store. Designed with retailer needs at the forefront, the app features an innovative barcode scanner and fingerprint sign-in, a shopping list, a margin calculator and training modules.

03/08/2016 17:22:57 08/07/2016 13:00

PART

G N I R E PARTN C C E SS… U S R O F

WHAT IS HAPPENING? The EUTPD II is a series of new rules regarding the way tobacco products are manufactured, packaged and sold within the EU. The UK Government has chosen to add extra legislation in the form of standardised – or ‘plain’ – packaging. This new legislation will affect everybody involved in the tobacco category, including you.

WHEN IS IT HAPPENING? Examples of standardised pack designs. For illustrative purposes only, and subject to change.

TRANSITION PERIOD MAY 2016

MAY 2017

20 From 20 May 2016 standardised packs may begin to appear in the market. Between now and 20 May 2017, retailers are allowed to sell both current packs and standardised packs.

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

WHAT WILL GANTRIES LOOK LIKE? Over the coming months towards 20 May, 2017 tobacco gantries will begin to comprise of a mixture of current branded packs and standardised packs.

STANDARDISED PACKS ON SHELF

We look forward to working with the trade to help deliver a smooth transition to May 20, 2017 when only standardised packs can be sold. MIXED STOCK ON SHELF

For Tobacco Traders Only

Catagory management.indd 41601 PFS_ TRADE AD A452DPS (Part 3)_AW2.indd All Pages

03/08/2016 17:22:57

SED

PRICING YOUR TOBACCO COMPETITIVELY The recent EUTPD II and standardised packaging manufacturing deadline on 20 MAY 2016 means the manufacturing of Price Marked Packs (PMPs) is no longer permitted. Previously, PMPs provided a clear way for retailers to communicate their tobacco product pricing, reassuring tobacco shoppers they were getting good value while helping to drive in-store footfall and protect retailers’ turnovers. Recent retailer feedback suggests there are major concerns around the potential loss of tobacco shoppers once PMPs disappear from the market. Ensure that you retain shopper trust by adopting a transparent pricing strategy.

PMPs are phasing out from 20 May 2016

Make sure you price your standard branded stock competitively…

INSTILLING SHOPPER CONFIDENCE STEPS TO SUCCESS Reassure shoppers that despite the loss of PMPs your clear pricing policy continues to offer good value on tobacco Make your customers aware that you sell tobacco products at the recommended retail price or below*

Price competitively and keep your shoppers loyal

…ahead of standardised packaging from 20 May 2017

Experience in Australia suggests retailers who adopted clear and sensible pricing strategies prior to and post the introduction of standardised packaging have only seen a minimal impact on their tobacco sales.

Display a current price list in your store Don’t forget you can create and download your free fully compliant price list from MyTobaccoPriceList.co.uk

For more information on the legislation visit

www.imperial-trade.co.uk or www.imperial-ignite.co.uk

D N A I I D P T U E H G U O R G H N I T G A … K C A P D E S I D R A D N A ST Sources: *Please note that retailers are free to determine the price of their products at all times The content of this document is without prejudice to Imperial Tobacco’s position that the Standardised Packaging Regulations are unlawful and subject to the outcome of Imperial Tobacco’s ongoing legal challenge.

www.imperial-trade.co.uk

Catagory management.indd 53

03/08/2016 17:22:58 06/06/2016 16:38

Catagory management.indd 54

03/08/2016 17:22:58

Catagory management.indd 55

03/08/2016 17:22:59

Mission: Lunch

Feature

THINKING OUTSIDE THE

LUNCHBOX F

With its experiences of handling a very busy lunch time at its own Woodlands Local store, SLR goes in search of some great ideas that retailers can consider if they want to turbo-charge their lunchtime offering.

ood to go has been the biggest success story in local retailing in the last few years and the biggest driver behind that trend has been the lunch mission. The lunchtime market has grown significantly in the last few years due to busy lifestyles meaning consumers demand food in convenient formats. Eating habits are changing, with snacking featuring more prominently in everyday food consumption as a result of increasingly busy lifestyles. Lunchtime presents a key opportunity when it comes to driving sales. In order to accommodate their customers and potentially maximise the opportunity, retailers need to understand how to stock the right products and effectively merchandise their range. Where once the solution was a pre-packed sandwich and a soft drink, today’s consumers appear to be more open to a wider array of potential solutions. Wrigley says we are seeing more and more meal deals include a variety of snacking options to meet the needs of the consumer. In-store placement, POS and convenient pack formats are key when it comes to driving sales of food that can be eaten on the move at lunchtime. Retailers can link related products at lunchtime, giving the shopper a wider, but still relevant, choice. Cross merchandising in this way will ultimately help to drive incremental purchases and increase revenue. Batchelors ‘Deliciously Thick’ Cup a Soup is a popular choice at lunchtime for consumers who are seeking quick and convenient foods. 56

SLR | AUGUST 2016

Lunch x.indd 56

BY ÉMER O’TOOLE

£2.2 bn is the total value of the food-to-go mission in UK convenience stores.

70%

of food-to-go purchasing decisions are made in store.

3 SNACKS PER DAY is what the younger generation consumes on average.

£1.5 bn

is the number of snacking occasions food to go represents annually for adolescents and young adults in the UK.

£27.5m 60%

adults buy lunch out-of-home each year.

of micro-snacking is purchased to be consumed at lunch.

The range is available in: Thai Inspired Chicken & Sweet Potato; Mediterranean Style Tomato & Red Pepper; Southern Style Pulled Pork, and Classic Carrot and Coriander. Sandwiches — or their savoury equivalent — along with confectionery, crisps and soft drinks are all popular lunchtime options, according to Mondelez International. By grouping these together and within arm’s reach, the shopper can immediately browse a wide range of options, leading to potential additional purchases and ultimately improving overall customer satisfaction. Susan Nash, Trade Communications Manager at Mondelez International, says: “Why not try grouping several lunchtime items together in a meal deal? By offering better value when buying a sandwich, chocolate or crisps and a drink together, retailers can create those extra purchases in-store that are key to driving revenue. We recommend communicating meal deal offers outside the store to drive awareness.” Confectionery is an ideal product to include in meal deals, for example new Cadbury Time Out Wafer which hit the shelves in February, gives the bar a contemporary new twist. Cadbury singles are customer favourites and this year the range will be supported by ‘Obey Your Mouth’; a brand new campaign that taps into consumer needs for a great chocolate experience. Success isn’t just about stocking bestsellers. Customers shop by mission, so it is crucial that retailers recognise this to ensure they are getting the best return from the fixture. www.slrmag.co.uk

03/08/2016 17:40:37

Mission: Lunch

“Retailers should consider what their own customers look for in-store at lunchtime, and merchandise accordingly to take full advantage of this day-part.” SUSAN NASH, TRADE COMMUNICATIONS MANAGER AT MONDEL Z INTERNATIONAL.

Feature

ON A MISSION:

CONTROL

Food to Go MERCHANDISING ADVICE Jon Eatly, Wrigley Customer Excellence Director, gives his seven simple steps to help retailers successfully maximise sales alongside meal deals: 1. Visibility is key and popular products should be located at eye level to take advantage of incremental sales. 2. Availability is crucial. Remember to re-stock each morning and prior to peak traffic times. A fully stocked display will help maximise your profit potential and guarantee repeat visits from customers. 3. In order to ensure shoppers are aware of the choice and range on offer, it is important to keep a clear and tidy confectionery display – this will also make restocking easier and quicker. 4. Encourage additional purchases using cross category promotions, such as ‘buy a sandwich, drink and confectionery for £3’ • Single price point ‘Meal Deal’ promotions are growing in popularity, allowing shoppers to satisfy all of their needs in one go. This includes meal offers and in store deals which include a sandwich, drink and confectionery, e.g. Skittles or Starburst, for a reduced cost. 5. Rotate stock regularly so that older stock is sold through first. 6. In order to raise sales and capitalise on early consumer demand it’s vital that independent retailers champion new products in store. 7. Make the most of your meal deal display by using eye-catching POS materials to encourage customers to upgrade.

CONFECTIONERY ON THE GO For consumers looking for a sweet treat as part of their meal deal, Wrigley’s single packs of Skittles (55g), Starburst (45g) and Skittles bottle (125g) are perfectly suited to the occasion. The bottle format for original Skittles Fruits variant, also taps into the growing consumer demand for confectionery products to enjoy on the go. The neat red container is designed to stand out on shelf, with an easy to open re-sealable lid ensuring people can enjoy Skittles when on the move. With bottles being the second most impulsive confectionery purchase format (55%), this innovative new pack offers a great sales opportunity for retailers.

SAVOURY SNACKS Ritz launched a deliciously innovative new baked potato snack, Ritz Crisp & Thin, last year. The brand is now worth £13m, and is now the number one driver of category growth with a 28 per cent repeat rate, one of the highest of all launches within the category in the last five years. The brand has also taken the popular Sweet Red Chilli variant from its sharing bag range into its on-the-go format and promotional 59p pricemarked packs will be introduced for all variants within the 30g range.

www.slrmag.co.uk

Lunch x.indd 57

Food to go represents

15% 95% of Wrigley’s gum portfolio is sugarfree

of all shopper missions in the convenience channel*

Chewing sugarfree gum helps keep teeth clean and healthy after snacking on the go**

Tom Lynch, Senior Category Manager, Wrigley, says:

“

Shoppers are looking for solutions within convenience, whether it’s a meal deal or simply having relevant products i.e. Sandwiches, soft drinks, confectionery and gum merchandised together so they are easy to find. Use additional merchandising units from manufacturers to locate impulse lines such as gum and confectionery beside food to go to drive additional sales.

Work with your Wrigley representative to help maximise your gum sales, or visit www.wrigley.com/uk

”

* HIM! 2016 CTP **Extra sugarfree gum is beneficial for dental health as it helps to neutralise plaque acids

AUGUST 2016 | SLR

03/08/2016 17:40:40

Feature

Mints & Gum

KEEPING IT

FRESH

A tillpoint staple, the mints and gums category has long played a surprisingly important role in the weekly turnover of most convenience stores, generating significant profits into the bargain. SLR casts its eye at the category and considers what the ideal range should look like and how it should be merchandised. BY ÉMER O’TOOLE

lthough mints are a functional impulse product, Cloetta says the category has struggled over the last few years. Own label mints have been outperforming brands as more and more consumers are seeking out great value and becoming increasingly budget savvy. The current trends within the mints and gum category are set to continue, as many consumers become braver with flavour, look for fun, fresh and innovative options and explore different strengths of mints. Consumers’ lives are becoming increasingly busy and there is a demand for products to meet this lifestyle. A trend in the category is a bottle format for consumers on the go who want to save products for later, that can be easily stored in a car or bag. Wrigley’s new in-car gum holder has been designed 58

SLR | AUGUST 2016

Gums and Mints.indd 58

to make bottles of Extra and Airwaves more conveniently placed while driving. The gum holder will be free with every gum bottle purchased from now until September. As snacking occasions and eating on the go increases, it is more important than ever to ensure teeth are kept clean and healthy throughout the day. Wrigley says that eating and drinking causes the plaque PH in our mouths to decrease due to the production of plaque acid, which can be dangerous for our teeth. Chewing sugar free gum for as little as twenty minutes after eating or drinking is a great addition to twice-a-day brushing because it increases the production of saliva. This not only accelerates the clearance of food debris but also helps to neutralise plaque acids and remineralise tooth enamel. A 2015 Smint survey of 2000 adults in the UK reveals that

22m

is the number of UK shoppers who buy into the mints and gums category.

£148.5m is the total value of the mints and gums category.

34%

of customers say visibility is their greatest barrier to purchase.

www.slrmag.co.uk

03/08/2016 17:31:34

5020339_Trebor Mighties Grocer A4 Advert_HI RES.pdf

20/07/2016

16:20

Feature

Mints & Gum

“The way people shop has changed dramatically in recent times and understanding shopper missions and what drives purchases is critical.” SHANKAR IYER, SMINT PRODUCT MANAGER

WRIGLEY’S EXTRA SHINES WITH NEW TV CAMPAIGN A new TV campaign has been introduced for Wrigley’s Extra sugar free gum. The ‘Time to Shine’ campaign lends fresh focus to the Extra brand, focusing on harnessing inner confidence, and rising to the occasion. Julio Guijarro, Marketing Director for Wrigley UK, says: “Time to Shine celebrates the potential of what can happen when you’re feeling confident, at your best and ready for life’s everyday defining moments. The advertising ‘road block’ is a first for Wrigley UK, in fact it is a first for Mars globally. We are really excited to be showcasing our new campaign in this way, reaching over 4 million consumers all at once.”

65% of people are most conscious of their breath first thing in the morning, and a fifth say fresh breath is a concern after eating a meal. “Retailers will be all too familiar with customers popping in to grab a last minute breath freshener before that important meeting,” says Shankar Iyer, Smint’s Project Manager. With a fifth of those surveyed saying fresh breath is a concern after eating a meal, it is worth placing mints and gum beside the food to go section. A prominent place at the till points with good eye line vision will increase the likelihood that customers spot the product and make a purchase. Of course, this is also the point of the most footfall in a store and therefore offers the greatest potential for sales. Another great location is with the newspapers and magazines, where there is a longer dwell time as consumers browse the shelves looking for something to read with their breakfast or lunch and are then attracted by a sweet or refreshing accompaniment. Retailers should be stocking the market leaders but also inspiring shoppers with fun new products which may compete on price and appeal. Stocking innovative new flavour ranges helps to stay on top of consumer trends and offer a substantial and varied choice to appeal to every age or demographic. Softmints Lemon Mint was launched last year and aims to drive innovation and incremental sales within the mints category. Create a clean and 60

SLR | AUGUST 2016

Gums and Mints.indd 60

MINTS AND GUMS MERCHANDISING TIPS FROM MONDELÉZ INTERNATIONAL 1. Focus on bestselling lines 2. Place best sellers in bestselling area 3. Only dual face very top sellers, where space allows 4. Use manufacturer point of sales material 5. Make the most of brand investment – have displays in-store when consumer will be most aware of products 6. Keep shelves fully stocked 7. Keep shelves tidy to help consumers scan the fixture 8. Make pricing clear 9. Maximise use of promotional stock.

tidy display that is eye-catching, fun and also easy for the customer to locate what they are looking for. Make use of exciting POS materials from manufacturers and brands to sign post the mints to create more of a colourful and aesthetic display. Using a wide range of pack formats can appeal to multiple consumers, so definitely stock up on single roll packs, pellets, bottles and also a variety of flavours. Pricing should be very clear and attract customers to the display. Multiple offers such as ‘two for 80p’ will offer something extra to customers looking for great value and can ultimately increase basket spend. PMPs offer advantages for both customers and retailers, according to 2015 him! research. Shoppers say PMPs help to make the hunt for value easier, with almost half saying PMPs make them feel more at ease in store because they don’t have to ask the price. Clarity and transparency was described as a major benefit for 50% of customers. They also said that a PMP is the second most influential factor when deciding what product to buy in a c-store. This may be why 30% of consumers say they would be more likely to buy a pricemarked product on impulse, with three out of four UK shoppers buying PMPs at least some of the time from convenience stores and why independent retailers agree that PMPs sell faster than standard packs. Trebor count lines are available in 50p PMPs to help retailers make the most of the popularity of the brand. Mints and gum is a small category, but it is a crucial sales driver in c-stores if organised well. Retailers should stock market leaders but stocking innovative new flavour ranges as well helps to stay on top of consumer trends, and offers a substantial and varied choice to appeal to every age or demographic.

www.slrmag.co.uk

03/08/2016 17:31:37

UTC

NOW YOU’RE TALKING MY LANGUAGE…

UTC has always been impressed by the breadth of cultures, creeds and languages he encounters on his adventures in local retailing, so you can just imagine how he felt upon seeing this convenience store in Airdrie. The local retailer in question, clearly bilingual, had thoughtfully translated his banning order on canine customers into the local dialect. That’s community involvement for you, right there.

YOU WANT…GOLD!

Ever since a trip to Euro 2008 in Vienna with Coca-Cola ended with UTC standing on a Viennese bar room table with Spandau Ballet’s Tony Hadley singing ‘Gold’ – true story – he can’t see the precious metal without coming over all aglow. Hadley had been the star turn for the VIP guests like UTC and, enjoying football and beer in equal measure, the superstar singer thoroughly got into the swing of things and ended up striking up an unlikely friendship with SLR’s superstar columnist. So, when UTC’s cousin in Dubai sent him a pic of a new gold-themed store that’s opened up there for the super-rich, UTC was overcome with emotion and rushed in to see his boss to ask if he could have his Apple Mac gold-plated too. The response he got was, alas, unrepeatable in this fine organ.

RITA ORA. THAT IS ALL.

CAT SOUP. YES, THAT’S SOUP FOR CATS. “Cat soup?” the auld yin responded? “You mean, like, soup for cats?” And, incredible as it may seem, Mars Petcare has indeed launched a range of cat soups. “So, it’s like soup that you make at home but it’s for cats?” “Do you heat it up?” Unfortunately, we couldn’t get anything more intelligent than that out of UTC on the subject.

UTC.indd 62

SLR | AUGUST 2016

Unlikely as it seems, UTC shares a common trait with global Scottish DJ superstar Calvin Harris: a deep-seated and mostly unhealthy interest in pop diva Rita Ora. So when Coca-Cola sent him a pic of Rita in a fetching red outfit to promote something or other, the auld yin’s attention was duly grabbed and he nearly choked on his Irn-Bru Xtra. He was last seen mumbling something about “the youth of today” while mopping fizzy drink off his shirt with his tie.

www.slrmag.co.uk

03/08/2016 17:33:31

The GroceryAid Helpline is totally confidential. Call our Helpline and whatever you want to talk about will remain in strict confidence. This free service offers support 24 hours a day, 7 days a week. For practical support go to www.groceryaid.org.uk or talk in confidence to one of our professional advisors on 08088 021122. Real lives. Real problems. Real help. GroceryAid

@groceryaid

GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Reg. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683

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