DECEMBER 2016 | ISSUE 164
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Festive Sales DRIVE YOUR
WITH
SHOPPERS ARE LOOKING FOR GREAT CHOICE AND VALUE AT CHRISTMAS! CALL CALL US US ON ON 01236 01236 852 852 580 580
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AT THE TOP TABLE
Independent retail CPG meets again
E-CIGS
Are you ready for a busy year ahead? DECEMBER 2016 | ISSUE 164
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BRING ON 2017! The industry predicts what the new year will bring for local retailers
ENTRY KIT INSIDE!
THE MOST REWARDING AWARDS PROGRAMME IN THE UK IS BACK – AND IT’S BETTER THAN EVER!
RETAILER OF THE YEAR REPORTS BACK FROM NACS! | LAST MINUTE CHRISTMAS | E-CIGS SLR - Cover.indd 1
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December 2016
Contents
Contents ISSUE 164
SPECIAL PULL-OUT SLR Rewards 11 May 2017. All you need to know about the most Rewarding event of the year. Categories explained, and all the support you need for your entry. NEWS p6 p7 p8 p10 p12 p32 p34
Independent Retail CPG meets again Cabinet Minister addresses Cross Party Group. Nisa to supply McColls Nisa agres deal to supply McColl’s on former Co-op sites. Minimum wage hike draws fire SGF expresses dismay at latest planned rise in National Living Wage. Star Retailer home delivery scheme Heineken deal with Deliveroo to launch home delivery scheme from c-stores. News Extra Generation Z A new report says more can be done to attract the highly-motivated 15-24 age group. Product News Febreze recruit Paul O’Grady, Muller sponsors atheltics, Oreo new flavour decided by vote. Off-Trade News MPs call for wine duty cut, minimum pricing impact in Scotland. new Bell’s TV ad campaign.
INSIDE BUSINESS p36 2 Minutes of Your Time Charles Ireland Diageo’s new GB General Manager has definite ideas on collaboration. p38 Opinion Gillian Barker Long-standing National Grocers Benevolent Fund General Director bids a fond farewell. p40 Trending Christmas Is it still the most wonderful time of the year for retailers, or has the fizz gone out of the festivities? p42 Spar Fresh Foods workshop Report from Spar’s Fresh Foods Roadshow, learning about trends and best practices. p44 NACS Review Retailer of the Year Harris Aslam outlines what he learned from this year’s NACS Show in Atlanta. p46 SLR Rewards 2016 winners Two winning retailers report back on their trips to Amsterdam and to see Justin Bieber. p48 Parliamentary Exhibition SLR and SGF team up once more to launch the Scottish Local Shop Report direct to ministers and MSPs at Holyrood. p50 Woodlands Local The latest update from our store in Falkirk as a massive Christmas Cracker campaign kicks off. p56 Hotlines Round up of the latest product launches and big budget media and marketing campaigns.
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FEATURES p58 Last Minute Christmas Make the most of impulse opportunities with this review of festive trends and latest product news. Get manufacturers top tips and recommendations. p54 E-Cigs The growth in the category continues, and with EUTPD2 legislation deadlines looming, there is plenty to discuss in this issue.
ON THE COVER p18 What’s in store 2017 Our survey of opinion and insight, ever. Leading figures from right across the industry give their views on the next 12 months and beyond.
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News LOBBYING Independent Retail Cross Party Group meets for second time at Holyrood
Tobacco merger runs out of puff US tobacco firm Reynolds rejected a $47bn US dollar (£38.3 bn) takeover bid by British American Tobacco (BAT). The combined company would have been the world’s largest listed tobacco company. BAT already has a stake of over 40% in the firm. Reynolds was involved last year in the takeover of its US rival Lorillard, which prompted regulators to force the move of several brands, including Kool, Salem and Winston, which are now handled by Imperial Tobacco.
Commercial property vacancies rise The town centre vacancy rate for Scotland was 9.2% in October 2016, up from 7.5% in July 2016. This is lower than the average
Cabinet Secretary addresses CPG as momentum builds Keith Brown, the Cabinet Secretary for Economy, Jobs and Fair Work, addressed a packed room last month as the second meeting of the Cross Party Group (CPG) on Independent Convenience Stores took place at Holyrood. Offering a direct method to influence and inform key politicians from all political parties, the CPG represents a massive opportunity for the local retailing industry in Scotland to ensure its voice is heard at the top table. The CPG was recently given formal approval by the Parliamentary Standards Committee and the willingness of Brown to engage with the group already is a hugely positive sign. The Minister offered his overview
of how the Scottish Government is supporting businesses in Scotland, before taking questions from the large audience. Brown also accepted SGF Chief Executive Pete Cheema’s request to help arrange a meeting at Westminster to further the aims of
the CPG down south as well as in Holyrood. The turnout on the night – around 50 people once more from every area of the trade – was again commended as “an exceptional turn out” by CPG Convener Gordon MacDonald MSP. Dr John Lee, the SGF’s head of policy and public affairs, welcomed the presence of the Minister as a great indication of how seriously the CPG is being taken at Holyood. He said: “Coming so early in the life of the Group, a commitment from the Cabinet Secretary that the Scottish Government will fully engage with and support the work of the CPG is a major result. This means that the CPG has already extended its reach into not only the Scottish Parliament but the UK Government too.”
vacancy rate for the UK, which dropped to 9.5% in October 2016 from 10.1% in July 2016. “The spike in the shop vacancy rate is a cause for concern,” said David Lonsdale, Director of the Scottish Retail Consortium. “If property costs in general, and business rates in particular, continue to escalate, we should all be concerned about the likely investment-sapping impact on our local communities up and down the country.”
Amazon Top Up added to PayPoint
WHOLESALE Managing Director quits Landmark
CHRISTMAS
Williams steps down at Landmark
Last minute sales
Landmark Wholesale Managing Director Martin Williams is to leave the company at the end of this month. The company issued a statement which said: “Martin has been an instrumental part of our success. We didn’t want him to leave, but we respect his decision. He leaves with our best wishes for his future career.” Williams said after 33 years the time was right to step down. “I have served as a director of Landmark for 19 years,” he said. “I am proud of the
Group, its members, and my record as MD. I thank the Board for their support in agreeing an amicable departure which will take place at the end of December. I have made many friends in my time at Landmark and I leave behind some great memories.” The company has commenced a recruitment process to find a suitable individual to take on the wide-ranging remit and, in the interim, other directors will share the responsibilities of the role.
Around 20% of shoppers leave it until the week before Christmas to do their shopping, so retailers need to be ready for a late rush, says a new survey from him! According to the figures, 8% of shoppers actually do food and drink shopping on Christmas Day itself, representing an opportunity for convenience retailers, and an opportunity to promote last minute deals.
PayPoint has added Amazon Top Up to its range of digital vouchers. Customers can now buy a voucher in cash to top
OBITUARY
Ewen Chisholm – gone but not forgotten
up their Amazon account at PayPoint terminal. Steve O’Neill, Group Marketing Director at PayPoint, said: “Amazon Top Up makes over 150 million products instantly available to customers who do not have access to online payment methods, want to control their household spending by using cash or want to buy a top up as a gift.” PayPoint is making branded assets available
Ewen Chisholm, Sales Director for Stephens the Bakers and hugely popular figure in Scotland’s local retailing trade, has suddenly and unexpectedly passed away on Saturday 29 October 2016, on his return from a mountain biking trip with his son. Ewen, who previously held senior positions with David Sands, HIM and CJ Lang & Son, is survived by his parents Alastair and Tina, brothers Jamie and Rory, his wife Vicky, and his children Sandy and Cameron. In a short statement, Ewen’s family expressed their shock. “Ewen is a
huge character, who only cared about others, leaving us all and hundreds of friends with a big loss. The support and messages have been overwhelming and give us all great strength. Support and protection of his immediate family are now our priority, so we kindly ask for everyone’s help with this.” Antony Begley, Publisher of SLR and long-standing friend, commented: “Ewen was most of the enthusaistic, energetic people you could ever meet. A true gentleman and always great company. He will be sorely missed by many.”
to retailers to promote the new service. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG
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News DISTRIBUTION Nisa agrees to supply McColl’s new sites
Nisa agrees deal to supply McColl’s on former Co-op sites The distribution arm of Nisa is to supply a portfolio of 298 convenience stores, recently acquired by McColl’s in a deal from the Co-operative Group. Fifty-nine of the locations are in Scotland. Nisa was awarded the supply contract after a competitive process. Subject to McColl’s receiving
Completion and Markets Authority clearance for the acquisition, Nisa will begin supplying the first of the new stores in January, followed by a rollout which will see all of the new store portfolio transitioned by June 2017. In a statement, the company claims the new portfolio will allow McColl’s to accelerate its long-term strategy of expanding its convenience store operations, while increasing its exposure to the growth category of fresh and chilled food products. Jonathan Miller, CEO of McColl’s, said he was pleased with awarding the supply contract. “Nisa’s quality fresh and chilled food supply strongly complements our ongoing expansion in the convenience sector, and will enable us to provide our new customers with a full range of high quality products at competitive prices.” His counterpart at Nisa, Nick Read, said this was clear progress against their strategy to be the partner of choice for both retailers and wholesalers. “The McColl’s contract win closely follows our appointment to supply Bourne Leisure, demonstrating Nisa’s unique ability to provide a strong, varied and comprehensive offer to a diverse range of retail formats.”
Shoppers have no Christmas budget Over one half (57%) UK consumers only have a rough idea of their budget for Christmas, according to a survey on 2016 Christmas spending by Epos Now. Almost a quarter (23%) admit they have no budget at all for their Christmas shopping. “Every year the money experts warn us to keep to our budget at Christmas. It seems that the majority of shoppers don’t even set a budget in the first place,” says Jacyn Heavens, CEO Epos Now.
IGD says food-to-go to take bigger bite Researchers IGD have predicted that the burgeoning food-to-go market will be worth £21.7bn by 2021, up from £16.1bn this year, offering significant opportunities for growth. Of the five segments identified by IGD, convenience is set to
APPOINTMENT SGF name UWS man as new Vice-President.
Mike Leonard named new SGF Vice President United Wholesale Scotland’s Mike Leonard has been unveiled as the Scottish Grocers Federation’s new Vice-President, as part of its succession planning towards its centenary year in 2018. The SGF National Executive has unanimously backed the appointment, nominated by the President Dennis Williams. Leonard has a wealth of experience, gained through senior positions in both the retail and wholesale sectors of the industry, and is currently controller of the highly successful Day-Today arm at United Wholesale Scotland. “Mike has just the right character and experience that we need to complete the new Presidential team,” said Williams. “There is no doubt in my mind that he is the right person for the job and the National Executive has recognised this with their unanimous support”. Leonard will assume the role of President at the SGF annual conference in 2018.
be the biggest non-specialist growth channel, with, as the report forecasts, sales worth as much as £3.3bn in five years’ time, just behind coffee shops and almost three times the predicted revenue for multiples.
AG Barr give extra for Christmas carnival Irn-bru will be running an extensive digital campaign this year with special edition Christmas packs to get shoppers
TOBACCO LEGISLATION Customer-facing campaign to increase awareness
CONFECTIONERY
JTI launches information campaign
Famous name behind sweet new business
JTI is launching an information campaign to educate existing adult smokers on the changes starting to affect their tobacco packaging as a result of new UK and EU regulations. The communication, based around the consumer website www. packchanges.co.uk, is designed to support the retail trade by providing factual information about the changes to adult smokers after Ipsos research shows that almost half of the UK’s nine million smokers are not fully aware that packs are changing. Trade support is offered through JTI’s Advance training
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modules, which currently show a marked change in preparedness. Comparable questions over a six month period show that retailer understanding has vastly improved, with over 90% of test results showing that retailers are aware of when the new legislation is coming in, an uplift of 33%. A similar increase in understanding is seen when asked about which cigarette pack sizes will be banned from May 2017. There’s more help at www.JTIAdvance.co.uk, which features an innovative barcode scanner and fingerprint sign-in, a shopping list and margin calculator.
The third generation of the Hancock wholesale dynasty has set up a new confectionery business. HS Wholesale Sweets has been established by brothers, David and Michael Hancock, recreating a modern-day version of thei grandparents’ business. Joint MD David Hancock said: “It was a logical decision to return the Hancock family back into the world of wholesale confectionery.”
in a festive mood, including its new Irn-Bru XTRA variant. The brand is also running a Christmas on-pack promotion on its 750ml glass bottles, as part of its continuing headline sponsorship of Carnival at the SECC in Glasgow. Carnival has become an integral part of Christmas for Scottish consumers and last year attracted over 150,000 visitors.
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News MINIMUM WAGE Autumn statement draws criticism
Costcutter revamps Shopper First Costcutter Supermarkets Group has launched its Shopper First Programme, a brand transformation programme to drive retailer sales growth. The initiative includes a new Costcutter brand designed to connect with shoppers, stand out from the crowd, and make Costcutter retailers more relevant to the lives their shoppers live. Although not in Scotland yet, the programme is intended to cover all stores by the end of
SGF ‘dismayed’ at latest minimum wage hike announcement Scottish Grocers’ Federation has criticised the decision by the Chancellor of the Exchequer to increase the National Living Wage to £7.50 per hour. Philip Hammond made the announcement in his first Autumn Statement as Chancellor. “We are dismayed at yet another cost increase landing on retailers,” said Pete Cheema, SGF chief executive. “We know that last year, for the first time since 2012, there were noticeable reductions in the number of stores and the number of jobs in the Scottish convenience store industry. We can see clear evidence that local shops simply cannot absorb these
ever increasing costs. Retailers will be forced to reduce staff hours even more, take on more work themselves and put investment plans on hold”. The Scottish Local Shop Report for 2016 showed that almost a quarter of convenience store retailers in Scotland already work more than 70 hours per week. The increase in the National Living Wage comes into effect in April 2017.
November next year. APPOINTMENT Step up at Spar UK
Scottish sales peak October’s Scottish retail sales increased by 0.6% on a like-forlike basis compared to October 2015, according to figures from the Scottish Retail Consortium and accountancy KPMG. It’s the first growth since January 2014, excluding Easter distortions, and outperformed the 3-month and the 12-month averages of -0.6% and -1.5% respectively.
ECR UK expands mentoring initiative IGD’s Efficient Consumer Response (ECR) UK is set to expand its mentoring scheme in 2017, with the aim of establishing 100 partnerships between retailers, manufacturers, wholesalers and foodservice companies. The scheme partners ‘rising stars’ with senior professionals to help fast-track their careers and promote mutual understanding and collaboration.
Customer insight award for One Stop One Stop and its engagement programme “Food for Thought” has been recognised for converting operational insights into actions that drive loyalty and brand performance. The scheme was recognised by researchers SMG at their Client Connect event in London recently. Mark Williams, Retail, Property, and Distribution Director at One Stop, commented: “We’re dedicated to improving our customers’
Ian Taylor promoted to SPAR UK’s retail director Ian Taylor, formerly SPAR UK’s Head of Retail, has been promoted to the role of retail director of the business. In this more senior position, Taylor will remain in charge of growing Spar’s national accounts business and developing the formats offer. He will also define the formats plan for Spar’s More Together strategy towards success. Debbie Robinson, Spar UK managing director said “Since joining Spar in 2012, Ian has worked incredibly hard and brought his passion and expertise in format development to the business. “Thanks to his dedication and talent, the face of our stores has changed significantly. Our retailers have won a huge number of awards around the UK having adopted his recommendations in store format development. Ian’s expertise has
BOARDROOM
Wholesale changes at Today’s Today’s Group, the UK’s largest buying group with purchasing power of £5.7bn, has re-elected to its board Simon Hannah, the managing director of Filshill, the Scottish wholesale and delivery business. The AGM in late November heard that Today’s Group continues to represent 150 wholesale members, 460 symbol group retailers and 1,970 retail club members in Great Britain.
helped drive the SPAR business forward and shape our strategy for the future,” she said.
NEWSTRADE National paper criticised for offering “less than half price” online subscription
Daily Mail slammed for cut price online deal The NFRN has erupted in anger after a pull out supplement in the Daily Mail advertised subscriptions to its online offer at half the price of the newspaper. The newspaper carried an insert marketing the digital edition at “less than half price.” Subscribers receive the first edition of the newspaper on their tablets and smartphones shortly after it goes to print at around 11pm
each night, while the final edition will be delivered overnight. The news came as NFRN statistics revealed that the Daily Mail is currently the worst performer in terms of delivery into newsagents this year as it has missed the cut off deadline into news wholesalers 802 times between January and October. NFRN Chief Executive Paul Baxter said: “The Mail’s marketing of its
digital edition shows a tremendous lack of respect for hardworking news retailers who almost daily are having to go out of their way to get the product into the hands of readers because it is consistently arriving late. For too long we have been castigating the Mail for its pitiful delivery performance and then it gives its loyal sellers another kick in the teeth.”
experience.” KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG
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News DELIVERY Deliveroo to tie up with Heineken
Teenage alcohol sales fall in Scotland A new Scottish government report shows that sales of alcohol to school pupils have fallen. The data is part of the Scottish Adolescent Lifestyle and Substance Use Survey (SALSUS) and shows that since 2002 the number of 15-year old pupils buying alcohol from a shop fell from 18% to 6%. However, the report also highlighted that, for young people, the most common sources of alcohol are now from the home, relatives and friends.
Couriers Deliveroo to make house calls for Heineken Heineken is bringing new sales opportunities to its network of Star Retailer customers through a new agreement with on-demand delivery service Deliveroo. The agreement will see the launch of Brew House, an online brand through which shoppers will be able to order beer and cider but have it delivered to their door directly from local stores via the Deliveroo app.
Star Retailers will be able to confirm Brew House orders via a tablet set up by Deliveroo before the local rider picks up and delivers the order. A joint statement says the partnership represents an opportunity for Star Retailer stores to drive sales on quieter week days. Craig Clarkson, off-trade and category director at Heineken, said Deliveroo alcohol delivery has been
hugely successful since its launch in June. “We identified the service as the perfect partner to help our customers fully embrace the digital revolution and boost their sales. Brew House has been designed as a vehicle to bring retailers and shoppers closer and we are looking forward to seeing the service roll out with our customers across the nation.”
Lidl to open in Eurocentral Discount chain Lidl is set to move into the 122,000 sq ft Titan building in Eurocentral, following an off-market deal secured by Colliers International. It follows Lidl exchanging contracts on a 50-acre site at Eurocentral, where it is to build its new Scottish Distribution Centre. Adrienne Howells, head of warehouse expansion at Lidl, said the retailer needed extra
SUPPLIERS Small manufacturers to gain from new strategy
Small business to bag big boost from Co-op A new small business charter just launched by the Coop vows to double its number of local suppliers. The community retailer has pledged to increase the number of small suppliers it works with to 1,200 by the end of 2017. The charter sets out to foster closer relationships and support for local suppliers by, among other measures, sharing technical expertise and practical support, while understanding the challenges faced by small suppliers
to create the best route to market. There will be help with legislation and, importantly, no exclusivity requirements, in a bid to help small businesses to grow. UK Food Minister, George Eustice, said small and medium food and drink manufacturers generated more than £22bn a year and employed over 127,000 people. “It is great to see a major retailer like the Co-op supporting local suppliers and producers, bringing a real boost to communities around the country.”
space to service its burgeoning Scottish operation, while it
NEWSTRADE
builds the new 624,000 sq ft
Telegraph increases TPAI rate for retailers
warehouse.
GroceryAid luncheon raises £325,000 Over 870 people from across the grocery industry attended a recent Sporting Heroes Luncheon, raising more than £325,000 for GroceryAid. This will enable the charity to support around 216 beneficiaries for 12 months. Steve Rider returned as event host and guests were entertained by former England manager Kevin Keegan, and comedian and impressionist Rory Bremner.
Scottish winery reaches 30 Cairn O’Mohr, the berry fruit winery in rural Perthshire, is celebrating its 30th year of winemaking in Scotland. The Errol based business has been making berry wines since 1987. The award-winning range has gained a reputation among local producers for sourcing fruit from
The Daily Telegraph has provided some early Christmas cheer by increasing the rates paid to home news delivery retailers for handling thirdparty advertising inserts (TPAIs). The broadsheet publisher has confirmed that all rates will go up by 7.64% to reflect the recent increases in the national minimum wage and the introduction of the living wage. The new rates will be backdated to 1 April 2016 and will run until 31 March 2017. NFRN chief executive Paul Baxter said: “While we can understand why publishers are keen to accept advertising inserts, there has to be recognition in return of the additional costs these can incur for retailers.”
CHARITY Make A Difference Locally campaign generates over £1m for local charities
Nisa local charity donations top £1m mark in 2016 Following a second consecutive record month of donations, Nisa’s charity, Making a Difference Locally, has now donated over £1m to good causes in 2016. Over the last 10 months a total of 1,355 donations have been made to 964 causes throughout the UK, including charities, schools, sports clubs and more. The millionth pound was donated by the Nisa Local on Moston Street in Birches Head to support St. Matthew’s Church with their World War One community window project. The Nisa Local donated £1,260 through Making a Difference Locally to the church to aid completion of their new stained glass window commemorating the centenary of the First World War, and the donation will also allow the church to hold free commemorative events for the local community over
the next two years, up to the 100th anniversary of the armistice in late 2018. Kate Carroll, Making a Difference Locally charity manager, commented: “We are delighted to have supported almost 1,000 good causes over the last 10 months alone, as these donations will have a positive impact on so many communities across the UK. It is incredibly rewarding to see so many Nisa members engaging with their communities through Making a Difference Locally and we expect to see many more retailers supporting local causes over the festive period.” Making a Difference Locally raises funds in independently owned convenience stores that are members of the Nisa family. The charity has been supporting good causes since 2008 and to date has donated over £8m in total.
within 25 miles of the winery. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG
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MAXIMISE ALCOHOL SALES WITH ADVICE FROM Diageo has extended its My Store Matters programme with the launch of a NEW category advice initiative designed to help convenience retailers grow their alcohol sales. Using the latest market insights, ‘Inspire. Display. Sell’ presents retailers with a series of easy to follow and simple to activate principles, packaged together under three key pillars. Through a combination of tactics, from stocking the best sellers to making the category easy to shop, convenience retailers can grow their alcohol sales by up to £9k (13%) per year1– it’s that simple. Ninety percent of UK households buy alcohol but only 1 in 3 buys it through convenience2. Diageo estimates that by encouraging new adult alcohol shoppers to consider convenience and existing shoppers to spend more per shop, there is a huge sales incremental opportunity3 to be had. Read on to find out whether you are implementing the three core principles of ‘Inspire. Display. Sell’.
INSPIRE
How do you engage and inspire your convenience shoppers? Do you:
Tap into the top three missions for convenience shoppers - ‘Something for Tonight’, ‘Top Up’ and ‘Gifting’4?
Stock ‘Must Stock’ lines? A core range of the bestselling products can increase alcohol sales by up to 64%3
Make alcohol visible and accessible in-store? Off-fixture displays can help grow sales by over 18%3
Enhance your must stock lines with additional SKUs, such as new, premium and local or seasonal products, to excite shoppers?
BACK STRONG
INNOVATION! It is currently driving 10% of BWS growth in convenience5
1
The SMIRNOFF, CAPTAIN MORGAN, BELL’S, GORDON’S, BAILEYS and HAIG CLUB words and associated logos are trade marks. © DIAGEO 2015 Nielsen Scantrack – data to 26.03.16 2Nielsen Homescan 3Nielsen Scantrack – data to 26.03.16 4Kantar Worldpanel Jan 2016 5Nielsen Scantrack – data to 18.06.16
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DISPLAY
Make it easy for shoppers to find what they are looking for in store with these four key merchandising rules: 1 BLOCKING Sub-categories should be blocked together (such as vodka, gin and rum) as it helps shoppers see what a store has to offer more easily. Consider vertical blocking for larger fixtures to make them easier to navigate
2 BRAND SIGNPOSTS Brand leaders, such as Smirnoff and Gordon’s, are recognisable - place them in the centre of the sub-category to make them stand out
3 CLEAR PRICING Shoppers are less likely to make a purchase if they are unsure of the cost. Ensure the price of each product is clearly labelled
4 FRIDGE SPACE Maximise fridge space – half of all beers or ciders purchased in the convenience channel are consumed on the same day so tap into this opportunity by providing a greater variety of chilled ready-to-drink beverages
PUTTING IT INTO PRACTICE TOP SHELF Premium products
EYE LEVEL Fastest selling categories
BOTTOM SHELF Light to dark spirits, left to right
SELL
Do you follow these three simple tips to improve value perception of alcohol within the convenience channel? Stock PMPs to reassure your customers they are getting the best value? Run promotions in-store to drive impulse purchases and positive value perception amongst shoppers?
Did you know that staff initiated conversations can triple sales?
Upskill staff in the area of alcohol and ensure they can talk to customers confidently about the category, encouraging trade up and driving associated purchases?
HEAR IT FROM THE TRADE Julian Taylor Green, Spar says: “Alcohol is extremely important to my business as both a footfall and profit driving category. To maximise my sales it’s essential that I get the core range right, ensure I have the best layout and that I make sure I keep my display refreshed. “ The ‘Inspire, Display, Sell’ advice will help retailers to go on this journey. Inspire is where this starts, giving you the basics to get your offer correct and to make sure your range is right. Display gives you key information about what ‘good’ looks like, and of course Sell is how we convert all of this best practice into tangible sales.”
For more information on Diageo’s NEW My Store Matters advice, visit WWW.MYSTOREMATTERS.net or speak to your local rep today.
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News Extra
Analysis | New Customer Research
NewsExtra SLR REWARDS ENTRY KIT CENTRE PAGES SPECIAL PULL OUT
Ignore Generation Z at your cost CUSTOMER DEMOGRAPHICS Convenience shopper base is changing says report
Convenience Matters with the SGF As highlighted in last month’s SLR, illicit trade continues to be a big problem. Worryingly, survey evidence suggests that there are some retailers who are not as alive to the issue as they should be. The problem doesn’t stop there. If there’s a lack of taking the matter seriously amongst retailers it can be just as much of a problem with some enforcement authorities and their lack of vigour when it comes to actually doing something about illicit trade. SGF is just about to launch another three-day exhibition in the Scottish Parliament. We are going to use this as a platform to get across key messages about illicit trade. The Scottish Anti Illicit Trade Group, chaired by Police Scotland and hosted by the Scottish Business Resilience Centre, has put together an excellent briefing paper for us to give to MSPs. This is a good example of collaborative working – SGF has been the industry sector lead on the Group for some time and it’s a very effective way of connecting with key agencies such as HMRC, Trading Standards, UK Border Force and the Police. The paper very effectively highlights the scale of the problem and uses case studies to show what’s being done to tackle it. We know from our previous experience that there is often a lack of awareness amongst politicians about Illicit trade. As such we will be targeting the 30% of MSPs who are entirely new to the Scottish Parliament. It’s vital that we engage them in protecting legitimate businesses and keeping our communities free from crime. On behalf of their constituents politicians have to start getting involved in tackling this issue.
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Independent retail research agency Shoppercentric says that retailers who ignore the teenage market are costing themselves future profits. The Generation Z (ages 15-24) represents willing long term future customers. Getting to know their likely future retail behaviours and trends will pay big dividends, says the new comprehensive report. There’s been a significant change of perspective and priorities among the younger generation. With long term housing aspirations receding out of reach of all but the most affluent, there’s a much greater emphasis on affordable luxury, experience, and everyday indulgence. It’s causing a change that’s breeding a generation of young shoppers who have a Sense of their own worth, and are prepared to spend on life’s little luxuries. This report unveils a shop-happy and digitally-savvy generation who are open to influence by retailers, but also have high expectations. “Generation Z are a fascinating section of the shopper population,” said Danielle Pinning, managing director of Shoppercentric. “They’ve grown up in a truly connected world and are starting to access the kind of money that means they can flex their spending power. A lot has already been written about who they are as consumers, but there’s been no particular focus for those interested in shoppers. We wanted to take a closer look at what their expectations and needs are since they could give a real pointer to where the future of
retail lies, if we take the time to listen to them.” Among the findings, a healthy 80% or more think retailers already consider them to be an important age group, far more than the shopping population at large. However, only around half believe retailers understand their age group. That doesn’t stop almost a quarter who firmly believe they can make difference in future, and change the world in which they live. While it may come as no surprise to find that this demographic is top of the
Danielle Pinning, Soppercentric MD.
usage chart for every major social media channel – prompting retailers to engage by whatever tool best suits them – although Facebook is almost ubiquitous. Pinnington concludes: “We’re all aware that Generation Z are easily bored, but on the flip side, they have great confidence and a terrific support system provided by social media which helps them to manage risk when they’re choosing what to buy. Plus they’re aware that retailers are interested in them and that they’re worth getting to know – this is in stark contrast to how many older shoppers feel. “Generation Z know that they’re being courted, so it stands to reason that they expect to be impressed before they part with their cash,” concluded Pinnington. “This apparent selfassurance is important because it will set a high bar against which retailers and brands will be judged. Retailers will need to deliver to that brief and make it fun both instore and online.” www.slrmag.co.uk
30/11/2016 16:04:45
NEW zero SUGAR GREAT COKE TASTE THE FASTEST GROWING TOP TEN COLA BRAND IN CONVENIENCE* £10M MARKETING SPEND STOCK UP NOW *AC Nielsen MAT w/e 1.10.16. ©2016 The Coca-Cola Company. All rights reserved. COCA-COLA, COCA-COLA ZERO, TASTE THE FEELING and the CONTOUR BOTTLE are registered trademarks of The Coca-Cola Company.
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Comment
RECOGNITION AND REWARD FOSTERS BETTER BUSINESS This is it. The countdown has begun. The SLR Rewards are launched in this issue with a one-off earlier date than normal – May 11th – to accommodate Ramadan. Now, I don’t mind admitting that this will be my first attendance, and I also don’t mind admitting that I’m looking forward to it immensely. I’m sure you are too. It’s been a recurring topic of conversation, with everyone I’ve met, up and down the country. It’s clear to me how important the Rewards are, and how eagerly they are anticipated. I’ve been involved in many events over the years – taking part, organising, and even presenting. One thing keeps coming round every time. You can tell which nights are the best, because there’s a real sense of anticipation from everyone involved. That, and the fact that there’s still a full house at closing time. Whether it’s socialising, making new friends, or doing a late-night deal, I’m told the most difficult part of organising the SLR Rewards, is wrapping the party before breakfast. Don’t of course take my word for it. You can read about the experiences of Rewards winners in every issue, including this one. Among them, the reigning Retailer of the Year – Harris Aslam – is just back from the ultimate SLR Reward, a trip to Atlanta to take part in NACS – the global convenience store conference. You can share in his learning experiences in this issue, and catch up with another raft of Rewards winners too. Whether it’s recognition for your team, or an opportunity to meet suppliers and clients, or simply a great night out, I expect everyone who comes along to the SLR Rewards has a real ambition to be up on stage with a trophy in hand. I feel that’s the real value of the Rewards, because that’s got to be good for business. If taking part means taking another look at how your business runs, then that’s bound to impress your clients just a little bit more. If you’re ambitious about your business, I’d urge you to take a look at the categories in the SLR Rewards and ask yourself if you think you’re doing the best you can, and if you think you’re good enough to be judged. Entering might just be the tonic you, your team and your customers are looking for. The winning, of course, is not confined to the staged categories. The events team, led by Cara and Chloe, has been extremely busy already. I’ve been impressed by the huge effort they’ve already put into making sure that the entertainment, excitement, and rewarding runs perfectly to plan throughout the day. They’re harder working here at SLR Rewards than any other event with which I’ve been involved. You’ll see for yourself on the day. So, whether near of far, get involved, whether as an attendee, an entrant, or a corporate partner. I’m sure it’s going to be a fabulous time for everyone and I’m really looking forward to being at Glasgow’s Grand Central Hotel on 11 May. See you there.
EDITORIAL Publishing Director Antony Begley 0141 222 5380 | abegley@55north.com Editor Simon Walton 0141 222 5387 | swalton@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.
SIMON WALTON, EDITOR
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© 55 North Ltd. 2016 ISSN 1740-2409.
www.slrmag.co.uk
30/11/2016 10:11:45
*Source: Nielsen Scantrack Convenience Data w/e 13th August 2016
LIFT YOUR CHRISTMAS SPIRITS SALES
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Cover Story
What’s In Store 2017?
WHAT’S IN STORE FOR 2017? A new year and a new raft of challenges. It would be easy to say that while the detail may change, the issues have a familiar theme. However, in 2017, that’s not the case, as the retail sector faces some challenges and opportunities that are brand new to the sector. It’ll take some clever insight to remain on top of a landmark year. Looking at the equivalent preview from 12 months ago, our columnists all proved their expertise, and vision – and many were bang on the money. With the same calibre of contributor this time around, you’ll be hard pressed to find a clearer crystal ball. Our panel of future-watchers accurately predicted the political influences that would affect the retail sector, and the pressure that the industry would put on government for reform. Although the timetable of legislation was clear for all to see, our panel understood the implications, and offered valuable insight. From digital technology to the rise of a new generation, read on to hear what this year’s contributors think will unfold over the next 12 months.
ABDUL MAJID OWNER, NISA LOCAL BELLSHILL 2017 has the potential to be a great year for convenience retailers. In my opinion minimum unit pricing on alcohol will be the biggest sales opportunity for all retailers. With the multiples not able to sell below cost, the convenience sector will have a great opportunity to convert lost customers back to local shopping. Brexit negotiations and a second Independence referendum will dominate the political landscape, and with pound at record lows this will impact our shelf prices. Retail prices are bound to rise and with this comes opportunity to improve profit margins. For me, 2017 is about improving the bottom line and looking for new revenue streams with food to a great opportunity. Our core business is changing and retailers that fail to adapt will continue to see a decline in sales and profits. The Cross Party Group will be of great benefit in the long term but early success will help the group gather momentum and help achieve tangible benefits for all retailers.
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LEIGH SPARKS DEPUTY PRINCIPAL (INTERNATIONALISATION AND GRADUATE STUDIES) AND PROFESSOR OF RETAIL STUDIES, UNIVERSITY OF STIRLING 2017 is set to be a worrying year for the Retail sector in Scotland, convenience and local stores included. Whilst the growing interest and opportunities in convenience retailing are built on the changing nature of consumer behaviour, there are storm clouds around affecting operations. These include the rising cost pressures of store operations, including the national minimum wage and apprenticeship levy, but also rates and rents and other local authority driven charges. These likely storms have been made worse by the vote on Brexit and the consequent collapse of the Pound. Price rises are beginning to feed through to the economy and barely a day goes by without a new announcement of increased prices or product size reductions. Retailers will be faced with accepting some reduced margin or passing on the price rises to increasingly concerned consumers, which in turn will knock consumer confidence and spending power. Some clarity, certainty and stability from all levels of government might help and whilst the current currency concerns might alleviate, at this point, retailers are not likely to be betting on this. Local and convenience retailing remains an attractive proposition as consumers are increasingly shifting their patterns of movement and buying to such formats, but the next year will not be an easy operating one.
www.slrmag.co.uk
30/11/2016 16:38:15
What’s In Store 2017?
Cover Story
KEITH WHYTE PARTNER, MITCHELLS, INVERURIE
SCOTT GRAHAM OWNER, MCLEISH, INVERURIE
The potential swing from one stop shopping and the part resurgence of more little and often daily shopping is a great opportunity. Adapting the offering and getting the perceived price point right is key. Marketing smarter or more collaboration between businesses will need to be part of that marketing strategy. Moving from a “handy but pricey” image is a challenge all need to take on board. How do we show that we can be price competitive for a number of things and offer that all important point of difference: service, “personalability” and local freshness. These are not necessarily new challenges but we need to address them in smarter, new ways. For healthy initiatives, it would be good to see a bit more focus on Convenience and not always on the multiple retailers who get a lot of the praise for these initiatives. There is still going to be a focus on price and price marks. It’s about the perceived value right away. Customers are getting savvy so they are looking for value all round and now know manufacturers tricks.
Healthy living is becoming a way of life rather than a buzz word so carrying healthier ranges in store and promoting these will important. We must get our store known for carrying a good range of fruit and veg, and highlight the healthier products we stock in store to make it easier for shoppers to find these healthier products. Ask your self do you have customers looking for gluten free or high in protein products. Make sure you get involved in the SGF Healthy Living Program who can help advise in this area that will again make your store stand out from the competition.
STEVE O’NEILL GROUP MARKETING DIRECTOR, PAYPOINT
IAN JOHNSTONE IMPULSE SALES CONTROLLER, AG BARR
Successful retailers are using data to drive their businesses. Whether it’s optimising ranges, improving the efficiency of store operations, understanding what customers want or marketing more effectively. At the same time, shoppers are becoming even more demanding and now expect in-store technology, like contactless payments, to deliver a slick, seamless experience. However, it’s still surprising that only 37% of independent retailers have EPoS to help them meet their shoppers’ expectations. In comparison, 100% of larger multiple stores use EPoS technology. With the continued burden of regulation and lingering uncertainty about the real impact of Brexit, it is vital retailers focus on what they can control, equipping themselves with the right technology and data to drive their businesses forward. We believe that every retailer should have access to the latest technology, with EPoS as standard, to help them compete and grow.
Dairy and fresh are other areas where retailers can cash in on the frequency of visits from their customers. Offer them good quality fresh and dairy, well displayed and reasonably priced and retailers will see the £6.13 average spend increase. With the cost of doing business rising, retailers will need to make difficult choices around how they resource their business. Almost one in four shop owners already work over 70 hours per week with 21% of retailers never taking a holiday per year. The living wage will mean working more hours them self to save money.
KATIE LITTLER COMMUNICATIONS DIRECTOR, HIM SHOPPER RESEARCH & CONSULTING Discretionary spend had reached its highest ever level in 2015. However following Brexit, shoppers told us they were hoping for the best, but preparing for the worst. This feeling could heighten in 2017. We could see increased planning and budgeting, especially as costs rise. We continue to see a gradual decline in UK populations doing a weekly main shop (now at around 1-in-2 households). The use of discounters and online grocery shopping continues to grow at a steady rate (now regularly used by 51% and 35% of the UK population). We’ll see the continued rise of Generation C – a shopper base who is Constantly Connected and Craves Convenience – and technology based solutions to meet their needs will continue to emerge. We predict a return to ‘shopping with a conscience’ as recent world and political events have increased levels of volunteering and charity work. This is likely to further drive the importance of ethics in shopping decisions.
www.slrmag.co.uk
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The work being done by the team at the SGF with the Scottish Parliament and the work done by the ACS will help to ensure that the voice of the convenience store will be heard at the highest levels. Where you can, it will be important that you make contact with your local MP to make them aware of the challenges within your store but also shout about what your store brings to the local community in terms of employment, supporting the community and promoting local products.
32% of customers using their local shops are between the age of 16 – 34 and they are very tech savvy. Retailers need to be aware of the different ways they can engage with these customers via tech-led solutions. In store theatre adds to the customer experience and many suppliers will help to create this theatre. Displays of promotional offerings or limited edition packs will also add impact at these events.
TIM BILLSON, SENIOR RETAIL ANALYST, CONVENIENCE, IGD One key area where convenience operators can clearly differentiate themselves is by developing a truly ‘local’ offer and feel. The ability to tap into the community, to forge local connections with small-scale suppliers and to build ranges focused solely on the needs of local shoppers can only be done by having key decision makers operating within the store. For example, convenience stores could team up with other local retailers, to build their influence on the high street. This relationship between retailer and customer should be the bond that wins overs shoppers’ hearts and minds. Local retailers must also ensure they are maximising their offer on food-to-go. IGD research shows Monday to be the most popular day for breakfast on-the-go and Thursday for lunch. Time of day is also important. Where space allows, retailers could also consider features such as Wi-Fi, seating areas and phone charging stations, to encourage a longer dwell time in the store. The winners in 2017 will be those who can build their store around local needs.
DECEMBER 2016 | SLR
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Cover Story
What’s In Store 2017?
HMRC SPOKESPERSON The introduction of a minimum pack size for cigarettes will lead to changes to the UK tobacco market, which along with other measures in the Directive the Government believes will help continue the long-term decline in smoking prevalence. Standardised packaging would not introduce any new risks to the UK illicit market, and existing counter-measures in HMRC’s tobacco strategy to tackle cheap whites and counterfeit products would be applicable to mitigate any changes to these existing risks. At present it is too early to ascertain the impact of its introduction.
PETE CHEEMA CHIEF EXECUTIVE, SCOTTISH GROCERS’ FEDERATION Every year presents a combination of threats and opportunities; 2017 will be no different. Politically we will undoubtedly have to be aware of the potential threats as the Scottish government looks to relaunch its strategies in the key areas of alcohol, obesity and tobacco control. These will definitely impact on the in-store retail environment and we are already looking at the most effective ways we can influence the development if these new policy initiatives. We will also see the implementation of new regulations on the sale of electronic cigarettes. These will have a big impact on retailers and we are already working on a compliance guide to ensure our members fully understand the changes and can continue to sell these products responsibly. But for the first time ever we have a superb political opportunity to try to set the legislative and policy agenda. SGF has been the driving force behind the new Scottish Parliament Cross Party Group on Independent Convenience stores – for the first time we now have a genuinely cross industry platform within the Scottish Parliament which can directly inform and influence MSPs and ministers. We need everyone to get behind this and make it work. In-store the big opportunities are probably in the food to go category and in how retailers use technology. We know from our Scottish Local Shop Report that only about 40% of c-stores have a food to go offering – this means that here is real potential for growth here. Only 51% of c-stores have EPOS, only 46% offer contactless payments and only 25% have a Facebook page. Again these figures give some idea of the huge potential for growth in in-store Tech. There must be scope for a new digital revolution in convenience stores. We will look at both food to go and technology in our events in 2017.
ROSS KERR DIRECTOR, SGF HEALTHY LIVING PROGRAMME No matter what media, there is always a feature on obesity and the crippling cost for NHS Scotland. However, what is a negative for the NHS is certainly an opportunity for the convenience retailer. No company would be able to afford all the advertising there is on the subject of obesity and healthy eating. Yet this is being supplied free each day through the media. The SGF Healthy Living Programme is there to help convince retails to take advantage of this opportunity by supplying information, advice, point of sale material and display units, all absolutely free. When we speak about “healthy eating” we are not just talking about fruit & veg – but all products that meet the “healthier” criteria laid down by the Scottish Government. Over this last year, a lot of work has gone into how to feature these other healthier products and the Development Mangers of the SGF Healthy Living Programme have a couple of templates that have been trialled already with convenience retailers and can give advice and practical help to set this up in your store.
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KATE SALMON EXECUTIVE DIRECTOR, SCOTTISH WHOLESALE ASSOCIATION For many retailers, tobacco is an important product category and we have welcomed suppliers’ hard work in liaising with retailers to help them communicate the changes to consumers. But there is also still a problem with black market product and we all have a role to play in ensuring that we report any suspicions we have to the HMRC helpline. Don’t forget that Alcohol Wholesaler Registration Scheme (AWRS) goes live in April 2017. Around £1.2 billion in duty and VAT is lost to alcohol fraud every year and this will help HMRC identify rogue traders and return lost business to the responsible, law-abiding wholesalers. We have also recently joined the Scottish Anti Illicit Trade Group (SAITG) which has a pivotal role in bringing together public and private sectors with a clear focus and strategic aim of reducing the scale, impact and cost of illicit trade throughout Scotland. JEREMY BLACKBURN HEAD OF COMMUNICATIONS, JTI The tobacco category will be going through a period of change in 2017, but to support retailers, JTI will roll out the Be Compliant phase of its ‘Your Guide Through Change’ initiative, which will help retailers in the lead up to the 20 May 2017 deadline. There may be adult smoker confusion when branded packs disappear from shelves, but retailers can manage this by directing their customers to www.packchanges.co.uk, a website designed by JTI to provide information to consumers about the changes. Following EUTPD2, customers will become more price aware as the tobacco market starts to adapt to the loss of price marking and smaller pack sizes. Evidence suggests that adult smokers are already shopping around and looking at switching channels for better value, making it essential that retailers remain competitive by selling at RRP or below. In 2017, we also expect e-cigarettes to continue to grow in popularity which is exactly why we will continue to drive this growth by bringing new products to market.
DOUGLAS STEVENSON RETAIL DEVELOPMENT MANAGER, NISA A huge opportunity still exists within food to go, especially where retailers can form a partnership with local bakers, as the addition of a locally supplied bakery feature can easily enhance many store offerings. The continued development of fresh will also happen, however I think the trend of 2017 will be more integrated social media and “assisted” customer purchase decisions. I think we will see a greater role for both digital and social media in terms of customer engagement and thereby increased footfall into “activated” sites. A great coffee solution is a must. There are solutions to suit every store. Retailers don’t necessarily need events to drive footfall and sales, instead they need to create real points of difference within their overall proposition. This difference can be at a number of levels, be it through service, range, price, promotions and/or community engagement – an amalgamation of a number of these things makes for a great customer experience and enhances consumer relationships, which in turn creates loyalty.
www.slrmag.co.uk
30/11/2016 16:38:21
What’s In Store 2017?
Cover Story
DAVID LONSDALE DIRECTOR, SCOTTISH RETAIL CONSORTIUM
ALAN MCVEY BUSINESS SECTOR CONTROLLER FOR CASH & CARRY / IMPULSE, MAXXIUM UK
Convenience stores have proved remarkably adept at responding positively to changes in shopping habits and market disruption over recent years. This flexibility and eye for an opportunity will be much needed in 2017, a year likely to be defined by upward cost pressures on retailers and on shoppers.
Maxxium UK is planning a raft of new products, building on the success of the recently extended The Famous Grouse family, and the repackaged Courvoisier cognac range. Maxxium UK recognises its key role in helping wholesalers gaining a more detailed understanding of the spirits category by sharing our own shopper and market insights and by innovating accordingly to add value to our customers’ ranges. Our established guide, Know Your Store, is based on insight on how convenience shoppers buy their spirits. Its step-by-step guide supports the independent retailer in building their business and growing overall sales, and will continue to do so in 2017. Focus on your customer, and know what they are looking for. Stock the correct range for your shoppers needs and review your sales data. Quite apart from spending more than average, spirits shoppers pay more attention to point of sale too. So, for more success in 2017, focus on your knowledge, and differentiate yourself from your competitors.
Customers are likely to be hit by rising inflation, as the effect of the fall in the pound starts takes its toll. This, coupled with higher council taxes and possible higher income taxes in Scotland, could well supress consumer spending. This presents challenges but also opportunities for canny shopkeepers. For retailers, the year ahead offers little respite from relentless rises in government-imposed costs on property and labour. Firms will be hoping the Barclay Review finally delivers a business rates system which reflects trading conditions, scraps the rates escalator, and lowers bills. With further rises to the National Living Wage to come, we hope Government pays more heed to the Low Pay Commission so future pay awards reflect economic reality as well as political considerations. Retailers have little scope to absorb these costs and it could well affect the prices people pay in shops. What would make a real difference would be if government took a more joined up approach to policy making in 2017. The economy is in a different place now and government needs to acknowledge that and start working to support retailers.
PAUL YATES TERRITORY MANAGER – SCOTLAND, JET Coffee will continue to be a vital forecourt offering in 2017, but operators can drive forecourt footfall by introducing a strong food-to-go offering to sit alongside it. Forecourts are ideally placed to capitalise on this trend. This year JET teamed up with eXpresso PLUS and Country Choice for the launch of ‘Snack on the Go’, a combined coffee and food-to-go offering. With consumers increasingly doing the bulk of their food shopping at local convenience stores, forecourt operators should offer as many non-food services under one roof as possible – whether that’s parcel services, a free-to-use ATM, a post office counter or a car wash. As well as driving forecourt footfall, these will generate additional revenue streams for dealers. Finally, 2017 is the year for operators to embrace brand partnerships offer. Branded stores attract over 30% more return visits. We’ve seen this at first-hand where JET sites have taken advantage of our partnership with SPAR UK, strengthening their offering by making their forecourts ‘fuel and feed’ destinations.
MICHAEL MCDOUGALL LICENSING SOLICITOR, TLT LLP As always the Scottish licensing world will not be standing still in 2017. The local council elections in May 2017 will bring with it new licensing boards and an avalanche of new licensing policies. These policies will set the tone for the coming four years. All though is not lost. Local convenience store operators will have a chance to engage with licensing boards in the run up to these policies being formally adopted. Special attention should be paid to the subject of overprovision as it will be high on the agenda for licensing boards in light the Scottish government’s drive to tackle unhealthy drinking. It is important that operators keep an eye out for consultations from their local licensing boards. They need to make sure that they respond; offering a counter view that stresses the high standard of convenience stores and the important contribution they make to the local community.
www.slrmag.co.uk
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GERRY BEGLEY GENERAL MANAGER, WOODLANDS LOCAL The growth categories are likely to be food to go and chilled. There’s also potential for more locally sourced products as customers are looking for something different, given that there’s a trend towards more frequent visits, rather than the big shop mentality. It may be hyped, given the amount of coverage, but there’s definitely a trend away from stocking up, and more mission shopping for immediate consumption. That probably means providing an even better welcome, and giving customers a bit of a pleasant surprise. In the coming year we’ll keep a close watch on consumer habits, and stock accordingly. If we’re seeing our customers more often, we’ll also think about how we communicate with them. Traditional point of sale materials are always going to have their place, but we’ll be taking into account trends in social media too.
PHIL KNOX HEAD OF BUSINESS DEVELOPMENT – SCOTLAND, COSTCUTTER SUPERMARKETS GROUP Market consolidation continues and the threat of further expansion from online services like Amazon must be watched very closely. There continues to be uncertainty of the full implications of Brexit and the minimum pricing on Alcohol should also be monitored. Food to go is continues to grow at a rapid pace which is why we have recently launched our new Food to Go strategy. Shoppers demands are very diverse which is why retailers need to make sure they are considering all parts of the days and missions in order to cater for these different shopper needs. Including a healthy snacking range is crucial. We are in trial with NHS Aberdeen and working closely with the Scottish Government’s Healthy Living initiative at their site in Aberdeen ARI but more needs to be done to highlight the vast range of products that fall into these categories. Food to go will undoubtedly continue to grow. Our new strategy allows retailers to choose the right coffee solution – counter top powder solution through to full barista bean to cup – but this needs to be partnered with an extensive food to go range to fully capitalise on this opportunity.
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Cover Story
What’s In Store 2017?
NEW HORIZONS FOR MARS IN 2017 Over the course of 2016, the total confectionery category has continued to show its strength, writes said Bep Dhaliwal, Trade Communications Manager, Mars Chocolate UK. Figures from Nielsen show the overall market increasing in value sales of 1.1% year-on-year. Contributing to this growth is the rise of the total chocolate market, which has enjoyed an increase in growth of 1.7% year-on-year. This provides retailers with a great opportunity to grow their sales by tapping into the category trends and maximising key consumption occasions in 2017.
Chocolate never fails to be a hit with consumers, so it’s not surprising that it plays such a key role within the confectionery category, especially around seasonal occasions like Christmas and Easter. However, the seasonal opportunity does not stop with Christmas and Easter. Mini-seasons offer retailers a great opportunity to drive additional sales. Mother’s and Father’s Day, Valentine’s Day and Diwali are increasingly important consumption moments for consumers and retailers should take advantage by stocking brands like Celebrations and Maltesers which are known for driving footfall in store. Celebrations continues to be the number one boxed chocolate brand, and looks set for another strong year in 2017. Launched almost 20 years ago Celebrations brings together Mars’ family of much-loved chocolate brands, and with something in the box for everyone, it is perfect as a gift for Valentine’s Day or Mother and Father’s Day, or to share at a Diwali celebration. Chocolate is an integral part of 22
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occasions, from big calendar moments like Christmas and Easter, to more intimate events like Valentine’s Day. With its range of tubs, boxes and gift packs, Celebrations can cater for all these occasions making it a must-stock for retailers looking to boost sales in 2017. Maltesers also looks set for a big 2017, after several initiatives came to life over the past twelve months. In September 2016, Mars Chocolate UK launched a new series of adverts for the Maltesers brand that champion diversity and disability. Broadcast for the first time on Channel 4 during the 2016 Paralympic Games Opening Ceremony, the ads are the latest in the Maltesers ‘Look on the Light Side’ series and were developed in response to Channel 4’s Superhumans Wanted competition. Following its strong performance this year, Maltesers will be front of mind for lots of consumers. As sharing chocolate continues to play an important role in the confectionery market, retailers should ensure they are fully stocked with Maltesers, recently surveyed as the UK’s number one bitesize brand, ahead of Easter and mini-seasons in 2017. www.slrmag.co.uk
30/11/2016 16:38:28
Cover Story
What’s In Store 2017?
THE VIEW FROM NISA
Douglas Stevenson, retail development manager at Nisa, shares his thoughts on the coming year in Scottish convenience retailing.
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There is a huge opportunity to drive fresh and local alongside own label, for example through Nisa’s award-winning Heritage range, which provides retailers with over 800 SKUs that offer great quality products at prices to suit every taste and budget. In addition, there is a big opportunity for convenience retailers to embrace social media and digital advertising, and using this to communicate and engage effectively with consumers. Many independent convenience stores currently have little or no online presence and, as such, miss out on the huge opportunities these engagement tools present. The Scottish Parliament has formed a Cross Party Group on Independent Convenience Stores. I believe this is a very positive step for the industry in Scotland, with direct access to policy makers in our parliament. With over fifty representatives from across the industry, and seven MSPs attending the inaugural meeting, it shows how much of an impact this group can potentially make. I think that the sector can always do more to highlight the important role that it plays within the communities that it serves, and this is something that both the SGF and the government can help drive and promote. Nisa recognises the importance of community and as such, its retailers are able to support local causes through Nisa’s Making a Difference Locally charity, which has donated over £1m in 2016 alone. This enables retailers to build stronger relationships with their communities whilst supporting good causes in the local area. Concerning manufacturers, there needs to be genuine clarity and transparency in terms of ‘healthy initiatives’ and their positive impact on consumers, as all too often the communication as to what is healthy and what is not can be both contradictory and conflicting. Again both the SGF and the government can play a crucial role in this communication to the general public. Scale and buying power to drive down cost
price, drive up appropriate range and ultimately deliver value to the retailer are everything in this day and age alongside efficiency and service – these are things that will differentiate the successful from those that are not. Nisa’s ability to deliver on a large scale saw it recently secure contracts to supply Bourne Leisure and the 298 convenience store portfolio which McColl’s recently acquired from the Co-operative Group – demonstrating Nisa’s unique ability to provide a strong, varied and comprehensive offer to a diverse range of retail formats. I expect there to be a lot of new entrants into the app marketplace, around areas like Click and Collect and home delivery. Mobile phone use for convenience shopping will grow. In order for Nisa retailers to ensure they maximise new business opportunities, Nisa provides its members with a complete retail support package which comprises a strong retail focussed team, an enhanced category management system, a bespoke staff training facility under the Retail Academy banner, and a comprehensive marketing package incorporating bespoke leaflets, point of sale material and national advertising. All of this is in addition to the award-winning supply chain, a strong own label range and over 13,000 SKUs. Nisa’s flexible model provides retailers with an unbeatable breadth of range, with a 98% availability rate, to ensure they can provide a single destination shop for all their customers’ needs. This is all delivered by our industry leading supply chain which retailers can trust with an impressive 99.91% of deliveries made on the day and 95% successfully made on time. There are many new challenges emerging that retailers will have to overcome, such as increased legislation, rising overheads, uncertainty around food inflation/pricing and increased competition. Support from the government, the SGF and wholesalers is going to be instrumental in helping retailers through this myriad of issues. www.slrmag.co.uk
30/11/2016 16:38:57
JOIN US FOR A
2016
WE KNOW WE CAN RELY ON NISA FOR AVAILABILITY AND DELIVERY ACCURACY
“Our sales
“We were originally with Costcutter and when they decided to split with Nisa it was a case of who to stay with. Although our relationship was with Costcutter mainly, we knew what Nisa could deliver. That’s why we chose to go direct with them.
We’ve got to know all the staff at Nisa, including all the people on the ground and they’ve all given us a lot of support. We’ve been delighted with the support we’ve been getting, in fact. Nisa has been very active with us. It’s been really beneficial.
We knew we could rely on availability and delivery accuracy, which is so important in ensuring our customers always have the products they want, when they want them. We’ve got six stores so it is key for us that we can rely on Nisa to ensure they are always fully stocked and supplied.
The choice of Nisa over Costcutter wasn’t that difficult and is already proving to be the right one.”
have increased
41% since joining Nisa”
Franco Margiotta
MARGIOTTA FOOD & WINE, EDINBURGH
To find out why joining Nisa is as easy as 1-2-3 visit www.join-nisa.co.uk 10932_NISAtradePress_Margiotta_2016_A4_AW02.indd 1
14/03/2016 17:34
Cover Story
What’s In Store 2017?
WHAT’S IN STORE FROM MONDELĒZ Mondelēz International has a commitment to helping retailers drive their sales in store – and this will continue into 2017, says Susan Nash, trade communications manager. Mondelēz International has a world-class range of snacks and a portfolio of global power brands such as Cadbury, Oreo, Ritz and belVita. With extensive market insight and category knowledge, Mondelēz International is ideally placed to provide credible advice on how retailers can improve their business using three key principles: 1. SHOPPING MADE EASY It’s crucial that you make your store easy to shop – and this can be achieved by following a number of key merchandising principles such as stocking the best sellers and ensuring shelves are always fully stocked. Latest NPD will ensure that your fixture stays fresh, and Mondelēz International has launched a number of exciting products this year that are already proving a hit with consumers. For example, Cadbury Dairy Milk Toffee Whole Nut was introduced in a single format in August, supported by a significant marketing investment and a new TV campaign. Clear pricing is also an important tool for retailers to boost sales. Research shows that stocking pricemarked packs helps to improve perceived value, speed of sales, convenience and customer trust (him! CTP 2015) – all of which make it easier for consumers to shop in store. (Retailers are free to set their own prices. Non PMP packs are available). 2. INSPIRED TO BUY We know that 70% of purchase decisions are made in store (POPAI 1995, Ogilvy Action 2008) so if retailers 26
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can inspire their shoppers and trigger those allimportant impulse purchases, they will reap the benefits. We recommend getting a fast start in 2017 by inspiring shoppers who may be looking to keep their spirits up in January. Stocking seasonal self-eats such as Cadbury Creme Egg – the UK’s number one SKU at Easter (Nielsen Easter 2016 value sales) – provides a great opportunity to kick off Spring sales early by driving excitement. Gooless, the exclusive convenience promotion, is back for 2017 and will help retailers to make the most of the season from January onwards. 3. BETTER CHOICES Offering a broad range of snacks gives your shoppers choice and the ability to make fully informed decisions when in store. Lighter bites such as Ritz Crisp & Thin help to answer consumer demand for permissible snack options and are available in six delicious flavours. Meanwhile, belVita Breakfast aims to help busy consumers by providing a convenient on the go breakfast offering. We will be continuing to sample and promote the belVita brand through 2017, and with a repeat sale rate of over 60% (Kantar June 2016) it’s a great line for retailers to offer their customer – try merchandising by your coffee machine. This year, we have launched a number of snack innovations that both deliver on taste and are helping drive value in the market – and 2017 will be no exception. We have lots of exciting news to share in the next 12 months, so keep your eyes peeled. www.slrmag.co.uk
30/11/2016 12:16:20
Winner Savoury Snacks Category. Survey 11,586 people by TNS
PMP NOW AVAILABLE
NO.1 DRIVER OF CATEGORY GROWTH IN CRISPS & SNACKS IN CONVENIENCE**
£13M RSV IN MARKET SINCE LAUNCH IN MAY 2015**
*New price marked packs available in single ( 30g) format. Non price marked packs available. Retailers are free to set their own prices **IRI, Data to 24.1.16
SWEET RED CHILLI NOW AVAILABLE IN 30g PACK
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Cover Story
What’s In Store 2017?
GET TEA TO DELIVER MORE TO YOUR BUSINESS xxxx
ESSENTIAL STOCKS Changing shopper habits and a growing taste for different types of tea mean there are real opportunities to increase revenues here.
STEPS TO INCREASE TEA SALES Q Keep on top of shopper trends and tastes Q Identify the big sellers Q Tempt your shoppers you browse and buy Q Demonstrate value The right stock items, marketing and offer of value can make a real difference. Start with a brand review. Top brands account for 85% of tea sales (Him!) so take note of the best sellers. The Top 3 in total Impulse are Tetley (33.5%); PG (29.8%) and Yorkshire (13.3%). Volume Sales AC Nielsen 8.10.16
WHAT’S HOT Although every day black teas still dominate sales, shoppers like to have a variety of teas in their cupboard. The real growth is in healthy teas like decaf (up 1.9%); green (up 1.5%); fruit and herbal and teas which have added functional benefits like vitamins. Volume total market AC
says Peter Dries, Director of Customer and Shopper Marketing for Tetley.
TEMPT SHOPPERS Shoppers need to be drawn to the teas you offer. Your customers may have come in for a quick buy, but blocking brands and displaying teas in a logical sequence, signposting different types and highlighting new products will all encourage shoppers to browse and add more to their basket. New products are an excellent way to keep your offering fresh. Take Tetley’s new ranges of Super Green Teas and Super Fruits for example; which are just entering the convenience channel, “These products are creating a real stir in the market. With added vitamins, the unique functional aspect is really engaging and gives shoppers a reason to buy.” No matter how
interesting a new stock line, sometimes shoppers need to be tempted to try. Presenting teas as part of a desirable occasion is a good place to start. Placing teas with complementary products such as cakes and biscuits whets the appetite for tea time and can benefit sales in both categories.
SHOPPER CONFIDENCE As shoppers spread spend across several outlets, cash conscious shoppers need to have confidence in your offer. Product awards and Great Taste logos can help reassure shoppers of taste and the right mix of pack sizes like 40s; big sellers in smaller grocery stores; and 80s, 160s and 240s which offer a way to up the sale, will help meet different shopper missions. Packs with Price Marks and Strike-Through Pricing are a great way to demonstrate value and sell more, but get the mix right – selling more of a product at a low price will not benefit value sales and profit. Careful selection of price marks will help you to compete with larger multiples on volume items and a smaller pack size at a £1 price mark can encourage trial, but take care to leave room to capitalise on lower volume higher margin tea products.
Nielsen 8.10.16
OPTIMISE PAYBACK
With careful selection of the right products, there are big returns to be had from these higher margin products, “It’s not about increasing space for tea, it’s about choosing products that tap into consumer trends, will sell the best and deliver higher value returns,”
Tetley can help with best product selections and layouts according to space available and has a range of items to showcase the range of teas and margins to be made on each unit sold at RSP. It can help with advice too on creating tea occasions in store and creating a sense of theatre for new product lines. Getting it right can deliver significant returns; uplift in sales of around 10% would not be unreasonable.
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www.slrmag.co.uk
30/11/2016 12:16:29
News
Products
Maoam goes crackers this Christmas Maoam has added two new festive pack formats to its range of top selling fruity chews: Maoam Stripes and Duo Tub. Maoam Stripes has arrived in a new limited edition Christmas cracker shaped gift box. The 100g pack is ideal for consumers looking for the perfect stocking filler or Secret Santa gift. Joining Maoam’s seasonal line up is the new Duo Tub, which brings together Maoam’s top selling Pinballs and Stripes in one sharing format. Vicky Forshaw, Maoam brand manager, commented: “Stripes and Pinballs are our most popular lines, so what better way to say Merry Christmas to our fans than introducing their favourite treats in these exciting new packs. We’re sure the new cracker shaped gift box and Duo Tub will be a hit with consumers, and help retailers become the go to store for a festive purchase that offers great value for money.”
New Spar snacking range Spar Brand has launched a fruit, nuts and seeds snacking range, tapping into consumer demand for healthier snacks. There’s a choice of dried fruit, unsalted nuts, and mixes containing seeds, nuts and chocolate. There are eight ‘eat now’ PMP £1 bags, and five larger re-sealable bags (RRP £2) for grazing and sharing. The £1 ‘eat now’ range comprises: Berry mix; Brazil nuts; Fruit, nut & seed mix; Unsalted cashews; Mixed nuts; Almonds; Dried mango; and Chocolate, fruit & nut mix. The £2 sharing range comprises: Walnuts; Almonds; Unsalted cashews; Dried Mango and Mixed nuts. Susan Darbyshire, Spar UK brand director, said: “With the trend for health and wellness, consumers are looking for alternative options. The category is growing at 12% year on year, making this the perfect time to launch.”
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ProductNews LAST MINUTE CHRISTMAS IDEAS FOR RETAILERS P58 HOMECARE P&G recruits comedian for Febreze drive
Febreze recruits Paul O’Grady Procter & Gamble (P&G) has recruited popular comedians Paul O’Grady and the The London Community Gospel Choir to drive sales of its best-selling, odour-eliminating brand, Febreze this Christmas. P&G says it expects “an imaginative rendition of ‘The Twelve Stinks of Christmas’ to rival The Queen’s Message for viewers, probably. The company is supporting the campaign with a range of POS materials to help drive sales in-store and in-depot. The shelf barkers, shelf trays, FSDUs and clip strips call for shoppers to ‘Get Ready for Guests’ with Febreze air care, as well as P&G’s other leading homecare brands, Fairy and Flash. The new seasonal fragrances of Febreze plug-in air fresheners are also now available for retailers to stock. They have an RRP of £3 or £5 for a plug in which comes with three refills. BISCUITS Next Oreo flavour chosen SPONSORSHIP
Müller gets athletic Müller has announced five UK athletics event partnerships for 2017, covering the World Para Athletics Championships in July; the IAAF World Championships London in August; the Müller Indoor Grands Prix in Birmingham in February and August; and a deal as the title partner for the Müller Anniversary Games, Consumers will also get the chance to win tickets to events or prizes via an on-pack promotion. Müller chief marketing officer Michael Inpong said: “We aim to be the biggest and the best with our new sporting partnerships and to build on the success of our work with Team GB. “London in the summer of 2017 will again be a huge part of the global sporting year, bringing focus to Britain and its fantastic athletes, and we’re delighted to be a part of it.”
And the winner is…
The UK public has helped choose the newest Oreo flavour to hit the UK shelves: Oreo Brownie Batter. Securing 43% of the overall vote, Brownie Batter has cemented its place in the Oreo flavours ‘hall of fame’. The new product will hit the shelves at the end of summer next year, joining the existing Chocolate, Mint and Peanut Butter flavour variants. Helen Potter, senior brand manager, Oreo, said: “The popularity of the vote highlights how excited and passionate our consumers are for Oreo and the whole flavours range. “It’s great to be able to get input directly from our fans and give them a product they that really want.” www.slrmag.co.uk
30/11/2016 16:09:09
Products
News
Toblerone loses weight The Mondelez owned triangular chocolate bar has announced plans for size reductions, provoking a widespread backlash. “It looks dreadful.
WHOLELSAE PRICING Falling pound to lead to rising prices for retailers
Retailers to expect price hikes The independent sector has been warned that it stands to bear the brunt of increases in prices in the wake of recent price hikes by PepsiCo for its Walkers crisps brand and Birds Eye for its frozen food range. The companies are balimng
the rises on the fall in the value of the pound, but retailers are set to to see prices on a standard 32.5g Walkers crisps bag rise by 5p to 55p, while the larger grab bags will also see a 5p hike. PepsiCo said it was up to retailers to decide what prices to
charge the consumer. “We are going to see more price rises, because of the simple economics of the situation,” said Martin Wood, director at data company IRI. He said independents are not in a position to have a public stand-off with their suppliers.
Think you should’ve reduced the length and kept the chunky triangles,” said Facebook user Cathy White. In a statement on the Toblerone Facebook page, the company said “Due to rising costs in making our chocolate, we recently announced a weight reduction in two Toblerone bars. The 400g bar was reduced to 360g and the 170g bar, sold in the UK only, is now 150g. Our other bars remain unchanged.
GOOD CAUSES
We will never compromise on
Pampers partners Unicef for 11th year
taste nor our famous Swiss
Leading nappy brand Pampers has partnered with UNICEF for the 11th consecutive year. Celebrity mum and former Girls Aloud singer Kimberley Walsh was on hand to launch the new ‘Amazing Babies’ campaign. Available to convenience retailers, special marked packs are available across a selection of Pampers nappies and wipes, communicating the brand’s “1 Pack = 1 Vaccine” campaign – helping UNICEF to eliminate Maternal & Newborn Tetanus, now in 19 countries. Paolo Haeusermann, Pampers brand manager at P&G, said: “By simply buying packs of Pampers with the UNICEF logo or by engaging with campaign content online, UK parents can make a genuine difference and continue to support our wish to eliminate maternal and newborn tetanus everywhere. We’re urging retailers to stock promotional packs to drive awareness of this campaign even further.”
quality and can assure you that the Toblerone recipe hasn’t changed.”
New look for Sharwood’s Premier Foods has revealed new packaging design for its Asian cuisine brand, Sharwoods. The vibrant design has been developed by award-winning branding consultancy, Coley Porter Bell. The new pack design features free brushstrokes comprised of vivid colours with the product’s name written in a free-form font. Each of the ranges, Indian, Chinese and Thai, feature palettes and symbols that are associated with the corresponding country.
SOFT DRINKS Extending the season to make cold drinks hot sellers CONFECTIONERY
Skittles colour run With six Tropicolor themed events held across the country, and 51,250 participants completing a 5k course, Skittles samples were shared with more than 60,000 consumers throughout the Skittle Colour Run campaign. Arfan Ellahi, owner of Cathkin Newsagents in Glasgow said: “The Color Run has presented retailers like myself with a fantastic platform to get involved and drive sales of Skittles. Having The Color Run on my doorstep meant I was able to get involved with the event and use branded POS material to encourage passing trade in-store.”
www.slrmag.co.uk
SLR - Product News.indd 33
Slush Puppies are for Christmas One Stop Franchise has been working closely with Slush Puppie to extend the life of the cold soft drink into the Autumn and Winter, when sales typically start to decline in many retail outlets. Last year saw the successful introduction of ‘Blood Orange’ which performed very well, and ‘Witches Brew’ arriving in Halloween themed cups this year went down equally well with consumers. Galen Levi, head of product for One Stop Franchise said, ‘Our franchisee’s who signed up for Slush Puppie have seen some phenomenal sales over the Summer period. We’re keen to work even closer with Slush Puppie to seek further openings in the new year, to help amplify the incremental sales benefit.” DECEMBER 2016 | SLR
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News
Off-Trade
Off-TradeNews ARE YOU READY FOR NEXT YEAR’S E-CIG LEGISLATIVE CHANGES? P62 WINE Government push to protect price of wine
Innes and Gunn target Edinburgh craft brewer Innis & Gunn has announced that it has reached a crowdfunding target of £1m in just three days. The company launched its equity crowdfunding campaign on 31 October to help it raise cash for expansion. The brewer aims to double its turnover to £25m in the next three years.
Game’s up for Heineken Heineken has targeted the mid-week market with a new UEFA Champions League on-
Call for duty cut to wine MP’s have united to call for a duty cut to wine to support jobs and growth and provide a “level playing field” for the industry. MP’s urged ministers to not to leave the wine industry “unnoticed and unprotected”, but they were disappointed as the Chancellor’s autumn statement ignored the sector. Overall duty on wine has increased by 56% between 2007
and 2016, in part due to the Alcohol Duty Escalator, which increased wine duty by 2% above inflation for five years between 2008 and 2013. Britons currently pay £4bn in wine duty in the UK, around £2.08 per bottle of still wine or £2.67 for sparkling. The UK is the second largest importer of wine by volume, after Germany and by value, after the USA.
Miles Beale, chief executive of the Wine and Spirit Trade Association said: “It is important and timely that MPs debated the excessive and unfair treatment of wine at successive Budgets. The UK wine industry is worth £17.3bn in economic activity, employs 170,000 people and contributes over £9bn in tax to the public finances from its 30 million consumers.”
pack promotion to tie in with its recent TV campaign starring
WINE Nielsen predicts impact of pricing legislation
José Mourinho. From now until
SPIRITS
March, thousands of limited
Jägermeister gets refreshed
edition Heineken packs will offer shoppers the chance to win a range of prizes, including access to the exclusive Heineken and BT Sport Champions Lounge.
AB InBev results AB InBev’s Third Quarter and Nine Months 2016 Results have been released. Jason Warner, BU President, Northern Europe
Jägermeister has unveiled its new look – the brand’s most significant change since it was created over 80 years ago. There’s a new bottle, and the iconic label has been updated with new artwork featuring a more life-like stag,
commented: “We have had a strong quarter in the UK with Stella Artois once again the number one beer brand in the
Don’t mind if I Baileys
country. We look forward to Q4 and the year ahead as we continue to grow the value of our premium portfolio and support our company’s long term future.”
Psy.cho complaint upheld A complaint about the packaging of the Psy.cho range
The new £3.6m ‘Don’t Mind If I Baileys’ ATL campaign began rolling out across the UK late last month, across TV, broadcast, digital and social media channels, positioning Baileys as a “modern and indulgent treat” for the Christmas period.
of beers promoting violent and aggressive behaviour
Glengoyne Gift Pack
has been upheld by the Independent Complaints Panel. The complaint, by a member of the public, challenged the use of the word ‘psycho’, and accompanying marketing slogans which perpetuated negative stereotypes regarding mental health.
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Glengoyne Highland Single Malt Scotch Whisky has unveiled two new 20cl gift packs. The three pack includes 20cl bottles of Glengoyne’s 12, 15 and 18 Year Old malts. All three also feature in the five pack which also contains 10 and 21 year old malts. The packs are available to purchase from both the Glengoyne Distillery shop and website and are priced at £54.99 and £109.99 respectively.
Wine wins Minimum pricing in Scotland could leave wine and premium brands the big winners, according to a new study from Nielsen. The research has outlined the impact of the impending minimum alcohol pricing legislation in Scotland on the industry and consumer behaviour. The analysis found that at least 50% of alcohol sold in Scotland doesn’t meet the legislation. Spirits will be hit hardest as 69% of volume currently sold is below the 50p per unit threshold. Nielsen analysed EPOS data in nearly 1,200 stores in Scotland. Beer is the next most impacted (67% of volume is below the threshold) followed by cider (51%), while only 3.5% of wine sales would be affected.
BEER
Carling on pack promo Carling has launched a new on-pack promotion with Now TV offering consumers a free Sky Sports Day Pass in every mid and large pack of Carling. The pass, worth £6.99, allows unlimited access to all seven Sky Sports channels for 24 hours and can be redeemed until 30 June 2017. Carling brand director at Molson Coors, Jim Shearer, said: “We are committed to supporting retailers by creating added value for consumers with on-pack offers. Our partnerships with Now TV and the Premier League give us the opportunity to create a compelling offer to consumers and boost sale and brand loyalty.”
www.slrmag.co.uk
30/11/2016 11:58:51
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SLR
AR R EW D S
2017
ENTRY KIT ENTRY DEADLINE: 27 JANUARY 2017
THE MOST REWARDING EVENT IN RETAIL IS BACK! SLR is delighted to announce that the most Rewarding awards programme in the UK local retailing industry is back as the SLR Rewards 2017 officially get underway. The Rewards were first launched back in 2003 and have been recognising and rewarding excellence in Scottish local retailing ever since. For the last few years, the Rewards have been entirely unique in offering fantastic Rewards to every single winner on the night: we’ve sent retailers to Las Vegas, Atlanta, Amsterdam and Lille. We’ve handed out Champions League tickets, VIP gigs like Justin Bieber and more. Could it be you this year? The only way to win it is to be in it! So set aside some time and make sure you give yourself the chance of being among the winners on 11 May.
GENERAL INFORMATION The SLR Rewards 2017 are open to all independent and symbol convenience stores in Scotland. The content of your entry should cover at least the 12 month period running up to May 2017 and your store, or the project you are submitting in your entry, should have been operational throughout that period. HOW TO ENTER Simply complete the entry request form on the back of the next page, ticking all the categories for which you wish to receive entry forms, or even simpler: visit www.slrawards.com SUPPORTING MATERIAL In addition to a fully completed entry form, you must also submit photographic evidence to bring your entry to life and allow the judges to fully understand your entry. Q For Category Rewards – confectionery, crisps, e-cigs and so on – you must submit a photograph of the main fixture plus photographs of any relevant secondary sitings, or anything else that you feel adds weight to your entry. Q For Special Rewards – community, best refit, team and so on – please ensure that the photography you supply
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clearly illustrates the work you have done and allows the judges to fairly assess that work. ENTRY DEADLINE All entries should be with us no later than 27 January 2017. JUDGING As always, the judging will be held in two separate stages: 1. A paper judging carried out by a panel of expert, experienced judges who will assess all correctly submitted entries to generate a shortlist for each Reward category. 2. An on-the-road stage where each shortlisted store will be visited by a team of judges with an overall winner being chosen. All site visits will be unnnounced. THE BIG NIGHT The winners will be announced at the SLR Rewards 2017 Gala Dinner in Glasgow on 11 May 2017. All shortlisted retailers will be invited to attend the Rewards as guests of SLR. For further information, contact Cara Begley at cbegley@55north.com / 0141 222 5381 or Chloe Buchanan at cbuchanan@55north.com / 0141 222 5383.
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ENTRY KIT ENTRY DEADLINE: 27 JANUARY 2017
SLR
AR R EW D S
2017
HOW TO
MAKE
TO HELP MAKE SURE THAT YOUE ENTRY HAS THE BEST POSSIBLE CHANCE OF BEING SHORTLISTED BY THE JUDGES, HERE ARE A FEW TOP TIPS AND HELPFUL HINTS.
YOUR ENTRY
STICK TO THE FACTS Q Be concise and provide as many reliable facts and figures as you can. Epos data is a great source of information and can add real weight to your argument. Q Don’t skip any questions! Blank spaces in an entry form don’t help the judges and can even hinder your entry. MAKE IT VISUAL Q A photo is indeed worth a thousand words – so include as many photos as required to illustrate the quality of your entry. Q Feel free to include other visual documentation that might help strengthen your case: letters of commendation, certificates, other awards, newspaper clippings – it’s all good.
COUNT
SPECIAL CATEGORIES Q In the special category awards, the judges are seeking those who go that extra mile to deliver something exceptional. Most retailers are doing exceptional things but often fail to mention it in awards entries. Put some detailed thought into your entry to make sure you have a chance of being a winner. Q Be creative! If you’ve got something to say that doesn’t fit neatly into the entry form, feel free to present it however you like: PowerPoint, video, folders of information; it’s all acceptable and can help ensure you have a great chance of beng a winner on the night! Q Good luck!
MAKE IT EASY FOR THE JUDGES TO CHOOSE YOU Q We receive hundreds of entries every year and the judges have to analyse each of them to pull together a shortlist, so don’t give them any excuses to discard your entry at the first stage. Q Make sure you are answering the key questions: Q what you have done Q how you did it Q what the results were THINK OUTSTANDING Q The judges are always on the lookout for innovation, creativity, thought and passion. When compiling your entry, make sure you go above and beyond simply best practice or basic good standards. Q Don’t be afraid to blow your own trumpet, or sing the praises of you and your team. That’s what the Rewards are all about!
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SLR
AR R EW D S
2017
ENTRY KIT ENTRY DEADLINE: 27 JANUARY 2017 th
2017
REWARDS
CATEGORIES
Entry forms can be completed directly at www.slrawards.com This is the preferred entry method.
Name Job Title Company Name
Company Address
Alternatively, you can request entry forms by completing this form and sending it to the address below. PLEASE SEND ME ENTRY FORMS FOR THE FOLLOWING CATEGORIES: CATEGORY REWARDS Beer Retailer of the Year Biscuits Retailer of the Year Confectionery Retailer of the Year Crisps & Snacks Retailer of the Year E-cigs Retailer of the Year Making the Most of Milk Newstrade Retailer of the Year Soft Drinks Retailer of the Year Spirits Retailer of the Year
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SPECIAL REWARDS Best Refit / New Store of the Year Community Involvement Retailer of the Year Food to Go Retailer of the Year Fresh & Chilled Retailer of the Year Responsible Retailer of the Year ThinkSmart Innovation Reward Team of the Year
Phone Number Email Date Signed To continue to receive regular copies of SLR please tick here
30/11/2016 15:59:50
Off-Trade
WHISKY
Glenfiddich finishes with IPA Glenfiddich has launched a new ad to support the Glenfiddich Experimental Series. The 60-second spot, developed by creative agency Space, will support one of the first expressions in the range, the Glenfiddich IPA Experiment, the world’s first single malt whisky finished in India Pale Ale (IPA) casks. The creative debuted online in late October and a highprofile TV launch in November during Sky Atlantic’s acclaimed new sci-fi western series, Westworld. The campaign will see continued support over the next six months.
News
WINE Brand celebrates its success
Jacobs Creek awards range Pernod Ricard is celebrating 40 successful years for Jacob’s Creek with a campaign to honour the wine brand’s haul of more than 7,000 awards and medals from around the world. A special new cigar band proclaiming Jacob’s Creek’s position as ‘Winner of over 7,000 Awards’ now features on the bottle necks of the brand’s Shiraz, Chardonnay and Merlot offerings. The campaign is also being supported with nationwide print and poster advertising in the run up to the all-important Christmas selling period. “Reinforcing the brand’s quality message through the many awards and medals that Jacob’s Creek has won all around the globe will drive interest in our core Classic range, as well as creating even greater standout on shelf,” said Toni Ingram, head of marketing wine & champagne at Pernod Ricard UK. “Our research shows that awards are a strong motivation in the final purchasing decision at the wine fixture.”
SPIRITS Schweppes promotes at-home mixing
Schweppes 12 cocktails of Christmas Schweppes has partnered with Diageo to create 12 festive cocktails, named the ‘12 Twists of Christmas’. The cocktail recipes will feature on the back of Schweppes labels, and include Merry Mule, Sour Sleigh Ride and MistleSloe Gin. These new seasonal drinks are made using a mix of the Schweppes portfolio, including Tonic Water, Ginger Ale and Lemonade. Schweppes has also co-created five of the 12 festive recipes from the Slimline range; including Elderflower Tonic, Bitter Lemon, Ginger Ale, and Lemonade & Tonic.
WHISKY
Bell’s ring true Bell’s whisky is rolling out a new £1.5m marketing campaign to drive mass consumer awareness for the product in the run up to the festive season. The ‘Rings True’ campaign is a tongue-incheek take on early Christmas adverts and features comedian and musician Matt Berry. It will air across TV, OOH, VOD, YouTube, social media and digital, using the new #WhattheBells tagline.
Q: I saw the NHS in Shetland proposing that alcohol shouldn’t be sold before 5pm. I am worried that this will be rolled out across Scotland. This would have a negative impact on my business. Stephen says: It is important to bear in mind that this was a report made to the Shetland Licensing Board by the local NHS body. It will be for that Licensing Board to consider the report along with all other evidence submitted to it as part of its policy consultation. Before adopting a policy, the Licensing Board would have to satisfy itself that such a restriction would promote one of the five licensing objectives. Q: My business helps support the local village fete. I usually apply for an occasional licence for the small bar that we help run. The local LSO told me last week that we would have to apply for a temporary public entertainment licence as well as the occasional licence. Niall says: I’m sorry to say that your LSO is correct. A temporary public entertainment licence (TPEL) allows you to hold events that offer entertainment to the public, e.g. a dance show or funfair. Before 1 November 2016 you did not need a TPEL if you had an occasional licence. However, the law has now changed and you will need a TPEL as well an occasional licence (if you are selling alcohol). Some councils exempt small events from having to hold a TPEL. Q: We have shops in a few different local authorities and just changed our licence holding director. What do we need to do? Stephen says: You must write to each licensing board where you hold a premises licence and notify the clerk of the director’s resignation as well as giving details of the new director. You should do this within 28 days of the resignation or appointment. In relation to the new director, you must provide his or her name, address, and date of birth so that this information can be passed to Police Scotland.
KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG
www.slrmag.co.uk
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Inside Business
2 Minutes | Charles Ireland
Charles Ireland With interesting times ahead for the premium drinks giant Diageo, Charles Ireland has been drafted in from the company’s East Africa Breweries business to head up the diverse territories of Great Britain, Ireland and France. With core manufacturing and important retail markets to oversee, the busy general manager spares two minutes between appointments. YOU’VE SWAPPED ROLES WITH ANDREW COWAN. IS THIS PART OF A REORGANISATION AT DIAGEO?
FACTFILE Charles Ireland has spent the last 13 years leading some of Diageo’s biggest businesses in both Asia Pacific and Africa. He has experienced a richly diverse business with a vital local importance economically and socially in the region. Charles returned to Europe to lead the Diageo GB business in addition to leading Ireland and Diageo’s interests in France. His base is in the UK, with Scotland high on the agenda.
We have had a cabinet reshuffle if you like, mainly thanks to a retirement, which let Andrew Cowan, who’d been country director for Diageo Great Britain, switch to managing director at East Africa Breweries (EABL). Andrew was on the board of EABL for a year before taking over as CEO. I had the privilege of working with him during all that time. It’s possibly been one of the longest handovers in the history of Diageo.
WHAT RELATIONSHIP CAN RETAILERS EXPECT FROM DIAGEO WITH YOU AT THE HELM? Some things are going to change going forward. We’ll reprioritise in several areas. I worked for 10 years in Asia, and came to appreciate the real value of partnership. I believe a business like Diageo should make partnership a priority to help fulfil commercial potential.
HOW BEST CAN RETAILERS WORK WITH DIAGEO? There’s a lot of science behind category management and Diageo has experience built up from around the world. We can share that experience with retailers, and help improve premium sales. Things like having a disciplined BWS category approach, not having underpreforming brands and SKUs, and keeping stock dynamic and interesting.
OBVIOUSLY, YOU MUST BE THINKING ABOUT BREXIT, IS THAT A GOOD PLACE TO BE? Diageo is a great business around Britain and around the world. We will manage the consequences whatever they may be. We’re not a political party. We are an alcohol business with a portfolio of leading brands, and around the world we find ourselves in a complicated environment. As a business we are experienced in adapting to situations.
DO YOU FORESEE ANY TRADING DIFFICULTIES ASSOCIATED WITH BREXIT, PARTICULARLY DURING 36
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THE NEXT 12 MONTHS? There’s been a lot of media coverage about inflation. However, the business impact of currency shift is something we will always be dealing with. In the Great Britain market, I see it all as something of a new reality we simply have to get our heads around.
WILL WE SEE YOU VISITING IN SCOTLAND? I am really looking forward to it. I’m planning to meet as many of our trade partners as possible, and of course seeing our operations across Scotland. A significant proportion of our premium production is in Scotland, and that makes Diageo one of the country’s big exporters.
WHAT IMPACT MIGHT MINIMUM UNIT PRICING (MUP) HAVE ON YOUR BUSINESS AND THE SECTOR? Diageo is a big member of the Scotch Whisky Association. We will continue to have discussions and deal with the impact if it comes into effect. Taking a strictly commercial view, Diageo is a premium drinks company and as such our brands wouldn’t be caught by the MUP floor in the same way as lower price point brands.
DOES YOUR ROLE HAVE A POLITICAL ELEMENT, GIVEN THE VERY DIFFERENT ATTITUDES TO ALCOHOL IN THE TERRITORIES YOU NOW MANAGE? I wouldn’t describe it as political. Our industry is one with any number of interested stakeholders at any one time. It’s a core part of the business, and this role, to address their interests and concerns.
IS IT A DIFFICULT TASK KEEPING EVERYONE HAPPY, AND RUNNING A SUCCESSFUL BUSINESS? Yes, it is. I believe it was the famous monk and poet John Lydgate who said: “You can satisfy some of the people all the time, and all of the people some of the time, but you cannot satisfy all of the people all the time.” I don’t know if I can prove him wrong, but I’ll certainly try. www.slrmag.co.uk
30/11/2016 10:16:44
For all sales enquiries please contact Coppenrath & Wiese Tel: 01977 521268 www.coppenrath-wiese.co.uk 1 KantarWorldPanel; TotalmktexIC;convenience;spend;52w/e11.09.16 2 Kantar: 4 w/e 11th September MARS®, TWIX® and MALTESERS® are registered trademarks of Mars 2016.
210x297mm MARS Frozen Desserts Ad_SLR.indd 1
17/11/2016 12:40
Inside Business
Opinion | Gillian Barker
FAREWELL FROM GILLIAN BARKER:
A LIFETIME IN GROCERY
After 38 years in the retail trade, Gillian Barker has finally retired from her role at the helm of GroceryAid, the leading industry charity. SLR caught up with her for a final farewell.
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F
or many in the local retailing industry in Scotland and across the UK, Gillian Barker is a well kent face after an astounding 38 years’ involvement in the sector in one capacity or another. For the last decade and a half Gillian was best known as director general of the National Grocers Benevolent Fund, the retail industry charity now known as GroceryAid. Now, after almost four decades, Gillian has decided to hang up her spurs. “I have been very privileged to spend my entire career in a great industry and particularly in these last 14 years with a committed team for a charity that is passionate about making a difference to those in need,” she told SLR. An enthusiastic and driven figurehead for GroceryAid, Gillian is perhaps most commonly known for her role in transforming the charity. However, far fewer in this industry are aware of the illustrious career she enjoyed prior to joining GroceryAid. She enjoyed a long spell with Sainsbury’s where latterly she was vice-president of the Shaw’s brand in their American operation, Shaw’s Supermarkets. Subsequently, she held the position of commercial director at Safeway Stores until 2002, before accepting the role that was to occupy her until last month. During her time at the National Grocers Benevolent Fund it has grown from a charity with a fundraising income of £1.4m and 1,100 beneficiaries to an organisation with a fundraising income of £4.7m that supports more than 11,000 current and former industry associates. In the coming year, GroceryAid will spend more than £4.3m on welfare, both financially and through the Helpline. Notable achievements during Gillian’s time at the National Grocers Benevolent Fund include the launch of a dedicated 24/7 Helpline for grocery people in 2010 and the
merger with Sweet Charity in 2012. The merger enabled the combined charity to provide a strong unified voice for the whole industry under the banner of GroceryAid. When the confidential Helpline was introduced in 2010 it was aimed specifically at those in need in all areas of their life, in particular helping people and families solve difficult personal problems. To this day, the Helpline continues to focus on personal welfare problems and in 2016 a record 7,800 people contacted the service. In 2014, Gillian received the coveted Retail Industry Awards ‘Outstanding Achievement’ accolade, and in October 2016 she was honoured with the IGD ‘Lifetime Achievement Award’ in recognition of her outstanding contribution to the sector during her career. “It has been a great privilege serving the industry I have been a part of since starting out as a Saturday girl in a local corner shop,” Gillian commented. “I leave GroceryAid in the capable hands of Steve Barnes who takes over as Chief Executive and who will lead the charity on the next exciting part of its journey.”
Gillian Barker receiving the IGD Lifetime Achievement Award in October 2016 To find out more about GroceryAid please visit www.groceryaid.org.uk email info@ groceryaid.org.uk, call 01252 875925, or contact the GroceryAid Helpline on 08088 021122.
www.slrmag.co.uk
30/11/2016 10:05:58
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Inside Business
What’s Trending | #christmasretailing
WHAT’S TRENDING?
#christmasretailing
With more and more opportunities to make last minute and impulse purchases, is Christmas still a bumper time for local retailers? How can the convenience channel stand out from the crowd and make this the most wonderful time of the year? Kathyryn McCusker Spar Hawick The worst and best time of the year. How things have changed over the last decade. Once upon a time you were looking at a stock room bursting with selection boxes, tinned sweets and wine galore! Now with ever-changing shopping habits, Christmas has become a rural retailers nightmare. Christmas Day, unbelievably, is the busiest six hours of the year. Suddenly it makes you think all this is worthwhile, until the multiples open again. One good day is not enough. I’d rather have normal trading when the kids are at school and the mums and dads are working. Retailers probably don’t need the extra hassle. Next month
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Colin Levy Certas Energy, Stirlingshire Christmas trade remains important for Scotland’s forecourt retailers. Our inner city stores typically see the biggest increase and we see a lot of ‘last minute’ customers stocking up on chocolates for the office or family festivities. The introduction of regular tactical forecourt promotions has also helped sites boost volumes and build loyalty. The current promotion – ‘Win a Car’ – will run over Christmas, closing on 31st December. The challenge is balancing the increase in sales with the logistics of running the business.
Kevin Connolly Spar Maybole, Ayrshire After Easter and Halloween it is the largest sales event and we go the whole way for Christmas, introducing a life size sit on Santa at the front of the store, supported by a large Christmas display table selling anything from Advent calendars to Frozen earphones. Christmas style shelf edge decorations and in store Christmas tunes help add to the ambience of it all. We saw a huge rise in December sales compared to others last year. It is still a vital part of the sales calendar, and with the larger sales, the buzz of the shop, the chances to do things a little differently in your store it is still truly the most wonderful time of the year.
Manginder Dhesi Day Today, Maryhill Glasgow I believe that Christmas is a great retailing opportunity as during this period people seem to rely on their local stores more. This may be down to the fact that they need to make frequent visits to top up their gas and electric keys due to the weather. Also Christmas eve and Christmas day are the two busiest times for our shop as all the supermarkets close. We pay our staff double time for that day it’s well worth it as our turnover increases 50% on the 25th. Boxing Day is also an extremely busy. Customers always have surplus cash in their Christmas cards.
#trending senior politicans offer their views on the retail sector from across the political benches at Holyrood
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www.slrmag.co.uk
30/11/2016 11:16:51
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29/11/2016 08:37
Inside Business
Roadshow | Spar Workshop
FRESH IDEAS FOR FRESH FOOD
Spar has been on the road in Scotland, meeting retailers and introducing some new ideas for livening up food-to-go, fresh produce, chilled and the tasty staples of bread, rolls and cakes. Simon Walton sat in on the latest session.
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our average customer is spending £411 every year on food-to-go. That’s the first statistic that Karen Brow from CJ Lang’s sales team, and training manager Angie Merrylee fire off at the early morning session of the Spar Fresh Foods Roadshow, hosted at the Westerwood Hotel in Cumbernauld. On this day, Spar retailers from around Scotland outnumber would-be golfers by about 50 to 1, and are more interested in getting their profits up than their handicaps down. This turns out to be the most interactive of the four sessions, with the two presenters making every effort to engage the audience in the best practice for Food-To-Go. A Countdown-style quiz had everyone buzzing in for “this EHO will visit unannounced?” Everyone: “Environmental Health Officer!” Karen says a little and often is the way to go for your daily deli. Angie says: “Follow the guidelines and portion control can improve your return, and be palatable to customers.” In the Produce Workshop, Jon Gourlay, also from of CJ Lang’s sales team, reminded us that over 3000 greengrocers have ceased trading, the weekly supermarket dash is definitely declining, and 50% of shoppers say they would use convenience stores more often if fruit and veg was improved. “People are using our shops more and more. Now is our time,” was his headline message. There followed a quick
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refresher in freshness, concentrating on the trinity of “availability, quality, and display.” If you haven’t already done so, this workshop recommended nominating a dedicated produce champion for your store. “Well presented fresh produce can be the most attractive retail display,” said co-presenter Jonathan Sinclair, who suggested a daily question every retailer should ask themselves: “Keep WIBIT in mind. Would I Buy It?” “Fresh foods are the way forward,” said Gerry Welsh, Marketing Manager at CJ Lang, Spar’s regional distributor in Scotland, and the go-to guy for this workshop and its predecessor in Aviemore 10 days earlier. “Traditional categories are in decline, and retailers need to adapt to stay profitable. Workshops like this are good for getting the big picture across in a meaningful and ‘hands-on’ way. It’s like our policy of taking new retailers on a tour around our chill depot in Dundee – they get to see first hand what we have to offer, the depth of the lines we do, and they can take that knowledge back to their businesses and make informed decisions about how they stock their shelves.” After a hot lunch, it was straight into a lively Chilled Foods session with CJ Lang sales trio Thomas Bryce, Barry Hart and Damian McParland, highlighting the highest growth area in convenience retailing. “If you’ve got the wrong range you’re going to miss out,”
was their message, and when backed up with their quote that chilled outsold confectionery and soft drinks combined, they had the attention of the group for the duration – even if the huge, fully functioning cabinets were competing for star billing. “20% of your store should be given up to chilled foods,” said Keith. “Major changes come with the seasons and you should check the weather daily – it really does affect the lines you sell.” It’s all highly scientific – figures for acceptable wastage levels for example – not that anything is wasted in this workshop. There’s a truck load of demonstration produce heading straight for local food banks, but maybe the last session generate the least for charitable causes: the Bread, Rolls, and Cakes class was, not surprisingly, fully booked. Given that BRC can drive customers into stores more than once a day, it’s a critical category and, as Alex Keith, CJ Lang’s regional manager NE Scotland, pointed out, there’s high margin on the category, and it’s one that’s often bought from forecourts and convenience stores. “There are even different sorts of products bought at different times of day,” he said. Whatever the reasons for attending workshops like this - to acquire knowledge on NPD, or to revise your store practices - the message from Spar is clear. Education counts for a lot in local retailing, and if you keep up to date, you keep up your profits as well. www.slrmag.co.uk
30/11/2016 11:18:02
AWARD
WINNERS
Be part of the winning team! Supported locally by the largest Scottish based sales team in the symbol sector! To join our award-winning group, contact Marketing on 01382 512000
SLR REWARDS
PEACH OF A TIME IN ATLANTA
It’s the biggest industry gathering in the world. The National Association of Convenience Stores Show is a massive four-day affair, hosted in turn by Chicago, Las Vegas and, this year, Atlanta. Among the delegates as a first time attendee, the SLR Rewards Retailer of the Year 2016 Harris Aslam found it a round-the-clock eye-opener and a hugely entertaining and educational experience.
O
ver 23,000 attendees, including at least one from Glenrothes, compelled Atlanta to raise the ‘full up’ signs for the middle of October, as NACS rolled into town. Never mind the famous Piedmont Park, Harris Aslam is a retailer at heart, and made straight for the top attraction. “I really wanted to visit the Coca-Cola headquarters,” he said, making the best of one of the many excursions. The vast Georgia World Congress Centre was busy, from early morning, until late at night. “Each year at the NACS Show we come together to strengthen our industry,” said Rahim Budhwani, the recently appointed Chairman whose convenience store company is well known in America and includes the Alabama-based Encore brand. He was delighted with the attendance. “Strong numbers only tell part of the story of this year’s success. Great energy and insightful ideas were also found throughout the NACS Show — from standing-room-only general sessions to lively discussions during education sessions and networking events, to the buzz generated at the expo.” “The scale of the conference was pretty extensive,” said Harris in the more succinct terms of a Fifer. “It’s much larger than anything we have over in the UK. Things got underway around eight in the morning, and I found the education sessions by far the most useful. The expo is certainly worth seeing, and meeting other retailers and manufacturers from around the world was worthwhile, to get a different perspective.” Harris made a point of getting around the city to check out how things are done, Georgia style. “Food To Go is really big over there. There are retailers doing 10 times the
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volume and range we have here. We can take on their ideas and make them relevant. There’s also a greater emphasis on fuel in the American convenience sector. The forecourt culture influences the way their stores look, and the market reflects that. The American convenience sector is probably a bigger percentage of the market and the industry takes that into account. There’s much more presence. Every single little part of the store is branded, and product ranges are wider to meet that American demand for more variants. There’s perhaps more latitude in the American market – some things like flavourings banned in UK means less range here, but if we could put US products in store to give more variety, that’s something we’d look into. Caramel M&Ms caught my eye. They were among the 300 things in the Cool New Products hall. If I could get something like that into our stores first, that would give us an edge. It would be good to be able to say we’re the only place in the UK with these products.” NACS took the Scottish Retailer of the Year to heart, and Harris secured a time out with the Association’s new chairman, Rahim Budhwani. “He’s a pretty inspirational guy. He showed us something of his Indian heritage and how he’s still involved in making a difference for less-advantaged people back there. In his address, his first words were that food is essential, food is the future, and now we can choose whatever we want. I think that’s a message we need to take to heart if our businesses are going to be successful in the years to come.” Harris felt that the most valuable part of the experience was certainly the education opportunities. “Those sessions let me see that while we’re working to the same
goals of serving communities and making successful businesses. For all the similarities, this is a very different part of the world. Nevertheless, it was clear to me that the issues challenging us are exactly the same all over the world. I went to Atlanta right after the SGF Conference, and everything that was mentioned there was mentioned in Atlanta, even down to the theme of the after dinner speakers. It’s fair to say the approach of Craig Mathieson, the polar explorer who was the speaker in Edinburgh was different, but he was covering the same themes and the same topics as Steve Gross from Life Is Good Playmakers. Steve is really well-known in the States for his speaking, and introducing playfulness as a state of mind to his business. “Steve was saying the same things, emphasising that we face the same issues, and being optimistic about how to deal with them. He told us why he’d loved convenience stores as a place to eat, drink and hang out, something I think we’re only just now coming to terms with in Scotland. He said as a kid, he’d stolen a pack of baseball cards, but regretted it and told his dad, who must have been really angry because he knew the store keeper. So, dad took him right back to see the owner, Mr Mulleny, and hand over the cards. Mr Mulleny though said keep them. He felt it was more important that the kid had realised his mistake. He knew that Steve would be a better part of the community, and that his store would have a better connection with the community if kids like Steve grew up to value the store as part of their own world, and have a responsibility for it. I can see that back home, when older customers come in and say they remember me as a kid. That bond is unique to our industry.” www.slrmag.co.uk
30/11/2016 10:57:53
Harr
SLR REWARDS
Atlanta parks
airman
Street food in the Georgia sunshine
s NACS ch Harris meet
Expo was the busiest part of NACS
xxxxx
Seminar
Time out
Harris Aslam travelled to the NACS Show in Atlanta as SLR Retailer of the Year 2016, and with the generous support of JTI. The international manufacturer, with tobacco products in every retail store in Scotland, were sponsors of the headline category at the SLR Rewards in 2016.
www.slrmag.co.uk
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in full s s o r G e v e t S
ow Does my head look big in this? DECEMBER 2016 | SLR
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SLR REWARDS
HAVING A BLAST IN AMSTERDAM A trip to visit the Dutch biscuit masters was the reward for assistant manager Deborah Anderson and her husband, as Spar Abronhill in Cumbernauld scooped up the Biscuits Retailer of the Year Reward.
I
t’s a family affair at Spar Abronhill, and it’s only appropriate that one of the biggest family run companies in the world should support this SLR Rewards category. Recently rebranded as pladis, formerly United Biscuits, the company sent Deborah on her way to a very special long weekend in Amsterdam, with an extra special visit added to her itinerary. The winner of the Biscuits Retailer of the Year headed to Amsterdam over a November weekend, with the added incentive of a VIP tour of the Verkade biscuit factory in nearby Zaandam. “I’m so excited,” said Deborah just before departure. “My husband is involved with computing and he’s been online morning, 46
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noon and night, looking at places to visit. I don’t know how we’ll fit it all into four days.” It would be tough to see all of Amsterdam’s many attractions in one weekend, but Deborah made a gallant effort. She was helped by her splendidly central location for the weekend – the stylish W Hotel, right on Dam Square. So no problems strolling out for an obligatory canal tour, then a coffee in the typically Dutch Jordaan district, before checking out the masterpieces at the Rijksmuseum, and then on to the exclusive shops of Kalverstraat and Leidsestraat. Money can’t buy the tour that awaited on Monday though, with the doors to Verkade thrown open, and the red carpet rolled out for the Andersons. Founded in 1886 and still in Zaandam,
Verkade is a favourite in The Netherlands. Starting off mainly with the production of bread and rusks, Verkade has brought a wide range of delicious biscuits and chocolate to Dutch consumers ever since. The Verkade brand is as well known in the Netherlands as cheese and windmills. For most natives, their biscuits and products have been appreciated and considered classics since childhood. “We’ve had a fantastic time,” said Deborah. “It’s been a trip like no other, and everyone at Verkade made us so welcome. I’m really glad we entered the SLR Rewards, because it’s been a really good experience, right from submitting the shop’s application. It’s not something we’ll forget, and I’m delighted we had this chance to celebrate in style.” www.slrmag.co.uk
30/11/2016 10:58:41
SLR REWARDS
READ ALL ABOUT IT
Making the headlines for herself in the Newstrade Retailer of the Year category, Justine Boyce of Killie Convenience stepped out in style as a VIP guest at Glasgow’s Hydro at the end of October, to see, in person, that other famous ‘JB’.
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ustin Bieber might just have sang a song or two for Justine Boyce, and category sponsor’s News Scotland may well have held the front page to report it, if they’d known how delighted the Kilmarnock retailer was at winning in the SLR Rewards Newstrade Retailer of the Year 2016. Getting to see the ‘What Do You Mean?’ singer, up close and www.slrmag.co.uk
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personal, was just the perfect reward for Justine, now a confirmed ‘Belieber’. The news trade remains a vital part of the retail mix, and making the category perform as smoothly as this small convenience store is the key to keeping customers happy. It’s not just the huge range of immaculately presented magazines and a full range of newspapers that pulls in custom; Justine’s
infectious enthusiasm rubs off on everyone, no matter what side of the counter. Suitably dressed up for the occasion, Justine was accompanied by here good friend Shannon Gardiner-Bowles. Justine and Shannon hit the Hydro in style for the October concert. “After stepping up on stage to collect the SLR Reward for Newstrade Retailer of the Year, it just keeps getting better,” said Justine. It was my first time visiting the Hydro, and we were really made welcome. The guys from News Scotland looked after us really well. It was a fantastic once in a lifetime experience. I maybe wasn’t much of a Belieber before, but I’m more of a fan now, and really loved the acoustic set, when he played ‘Love Yourself’ and ‘Cold Water’. “I’d no idea how good he was, and, even if it’s not a Justin Bieber concert on offer next time, I’m certainly entering the SLR Rewards again in 2017.” Glad you enjoyed it ladies! DECEMBER 2016 | SLR
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Inside Business
Scottish Local Shop Report Launch | Holyrood
ORDER IN THE HOUSE Reflecting the cross-party support for the sector, the SGF-SLR exhibition and official parliamentary launch of the Scottish Shop Local Report drew interested MSPs from across the political spectrum. Simon Walton walked the corridors of power.
The Scottish Local Shop Report 2016 is a collaboration between Association of Convenience Stores and Scottish Grocers Federation. Statistical analysis again shows Scotland to rely on its local retailers more heavily than other parts of the UK. The full report is available at www. scottishshop.org.uk.
T
he leafy streets of Edinburgh Pentlands may not appear to depend too much on convenience store provision. Indeed, the constituency is ringed by several out-of-town multiples. However, when Gordon Macdonald MSP reels off the housing estates where the only retail is the local c-store it’s not difficult to understand why he was prepared, once again, to sponsor the Scottish Grocers’ Federation / SLR parliamentary exhibition at Holyrood in mid-November. It doesn’t hurt either, that new SGF president, Dennis Williams, is also a constituentn of MacDonald’s. “When I was elected in 2011 it was obvious that many of the communities I represent were dependent on convenience stores for their essential shopping,” said Macdonald. “Talking to retailers, I realised they felt they didn’t have a voice and when I looked into the subject I realised the impact the convenience store has in the community and the economic profits retained within the community. We hear often from bodies like the Scottish Retail Consortium, but less so from the convenience sector, which is really one of the pillars of our society and economy.” Ostensibly to launch the latest edition of the Scottish Shop Local Report, the SGF and SLR were afforded the unique opportunity to meet with ministers and backbench MSPs over three days. New President Dennis Williams and Chief Executive Pete Cheema were in constant demand from a stream of supportive parliamentarians and media, keen to learn more behind the headline of Scotland’s biggest private sector employer. “It’s a gilt-edged opportunity to explain to MSPs the real value of this industry,” said 48
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Pete Cheema. “We’ve had the opportunity, in print, in graphics and most importantly in person, to make the case that this industry directly supports 42,000 jobs and contributes £500m to the economy. When you take into account the whole supply chain this is a sector that’s a valuable partner to the growth of the Scottish economy.” Scottish Labour leader Kezia Dugdale recognised the employment opportunities the sector provides, and stressed that in conversation with Pete Cheema: “The country faces substantial financial pressures right now, and we have to support our local shops if we want to support our local economy.” Progress since last year has been quite marked in the campaign to get a louder voice for retailers in Scotland. The establishment of the Cross Party Group (CPG) on Independent Retail has catapulted the industry into the political limelight. Ahead of addressing the CPG at the end of November, Keith Brown, the Cabinet Secretary for Economy, Jobs and Fair Work, familiarised himself with the current issues facing the sector. In an animated discussion with Dennis Williams, the challenges of wage and pensions legislation were top of the agenda. However, it was Gail Ross, representing Caithness, Sutherland and Ross, who spoke up for the smaller towns. “It’s not just the high street,” she said. “Wick is a pretty typical rural town but we have a massive multiple on the edge of the town of 7,500 people; but we have maybe five stores dotted around the town, where you can just nip down the stairs, and they serve far more of a community need than just a pint of milk or picking up a delivery.” Both presiding officers visited the exhibition.
Ken Macintosh and Christine Grahame both represent large areas, and recognise the importance of rural services. Grahame has been directly involved in the Borders Railway Project and, like local stores, noted that services that reach into the community, make a huge positive impact on life outside Scotland’s urban areas. “Shopping habits have changed,” noted Gordon Macdonald who, having sponsored the exhibition for two years, has gained an insight into the sector, and reiterated his understanding of the importance of the convenience channel to both rural and urban communities. Central Scotland MSP Margaret Mitchell said that, far from being a legacy of older communities, the modern convenience store is a vital part of new developments as well, and can also provide an informal link between people and their parliament. “Sometimes where you’ve got wall to wall housing, there’s a real need for a convenience store,” she said, noting that it often provides a hub around which neighbourhoods are built. “The pressures facing some of these small businesses, such as employment, aren’t readily understood. Every constituency has convenience stores and owners within the boundaries, and they are a very useful link to the community and to the people who live there.” If the current snapshot of the industry is the Scottish Shop Local Report, then the Cross Party Group represents an opportunity to influence policy for the future. If the observations of Margaret Mitchell and others are fulfilled, then the sector has a vibrant future ahead, and that’s something that would be welcomed on all sides of the house. www.slrmag.co.uk
30/11/2016 10:18:11
Holyrood | Scottish Local Shop Report Launch
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1 SGF President Dennis Williams with MSPs Emma Harper and Joan McAlpine 2 Ruth Davidson, the Conservative leader, met with Pete Cheema. 3 Presiding Officer Ken Macintosh chooses his reading material wisely. 4 Pete Cheema lobbied First Minister Nicola Sturgeon. 5 Keith Brown, the Cabinet Secretary for Economy, Jobs and Fair Work, took a briefing at the exhibition, prior to addressing the Cross-Party Group in November. 6 Gail Ross represents a vast rural constituency in the north of Scotland. 7 Labour Leader in Scotland, Kezia Dugdale, visited for an update on the sector. 8 Gordon MacDonald sponsored the exhibition, now in its second year, and is CPG convener. 9 Jeremy Balfour spoke at length with the Federation.
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Inside Business
Woodlands Local | Monthly Overview
IT’S ALL ABOUT CRANKING IT UP
WOODLANDSlocal
FOR CHRISTMAS AT WOODLANDS!
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With Christmas just around the corner, recent activity has been geared towards trying to maximise sales and profits in a period that’s getting harder and harder every year. BY ANTONY BEGLEY
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etailers who have been in the trade a while will recall a time when Christmas was the hands-down standout sales period of the year. It was the once-a-year bonanza that saw sales and profits rocket as customers flooded through the door to stock up for a bumper festive period with friends and family. Those days, alas, appear to be largely behind us. Last year at Woodlands, for example, we only saw a monthly sales increase of around 7% over the previous month. Hardly the earth-shattering sales hike we were hoping for. And unfortunately, I don’t think Woodlands is unusual in that sense. The feedback I get from many retailers these days is that Christmas is no longer the nailed on success it once was. That’s not to say, however, that with a lot of hard work and some creativity Christmas can’t be great again. Sure, trying to compete with the supermarkets on beer deals is mostly a losing battle – but there’s no question that some good priced promotions on beers, ciders and wines will still result in decent sales. Lots of customers may stock up in bulk early in December but the chances are they’ll have started an early assault on their stockpile of drinks and will need to top up again nearer the big day. That’s where local retailers come in and we’ve seen evidence of that in the store over the last couple of years. We now stock a much bigger range of multipack beers and ciders, all of them nicely chilled for instant consumption. We also have a very extensive range of four-packs, the preferred format by far at Woodlands, according to our Epos data. For the first time we’ve also had a go at larger format seasonal confectionery. As well as the usual tubs of Celebrations and the like, we’ve got a range of cut price Thornton’s selection boxes, advent calendars and premium packs.
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“The first week in November was turned out to be the biggest ever sales week at Woodlands since we first took the shop over.”
www.slrmag.co.uk
30/11/2016 16:00:17
Monthly Overview | Woodlands Local
Inside Business
A WORD FROM THE BOSS
These have been communicated heavily through our leaflets and via social media. The tail end of November saw very solid sales on that front. In fact, I’m delighted to report that the first week in November was actually the biggest ever week at Woodlands in terms of sales, since we first took over the shop! Hopefully that demonstrates that we’re doing something right. Now it’s all about the next few weeks and we have some special activity planned, focused around our Woodlands Local Rewards Club shopper engagement platform, powered by Darius. For all 24 days in the run up to Christmas we are running a knockout series of unbeatable deals and offers which are only available to Woodlands Local Rewards Club Members. There’s a different deal or reward every day, and each one only lasts for one day. There’s everything from free beer and coffee to half price lunch days and crazy deals on a lot of festive products. The reality is that we’re using the Woodlands Christmas Crackers campaign, managed by Darius, to achieve a lot of different aims from driving recruitment to the Club and pushing up sales to shifting overstock and promoting new lines and categories in-store. You can read more about the campaign over the next few pages. In addition, we also have a number of standard promotional deals available to all of www.slrmag.co.uk
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our customers, Members and non-Members alike, that will hopefully coax an extra few quid out of them over the next few weeks. Rather than offer a wide range of deals, we’ve tried to focus on a limited number of the most attractive deals to ensure our customers get great value while we push up impulse buys. But it’s not just about Christmas. We’re still in the process of fine-tuning the store following the refit and we’re gradually working our way through the key categories to merge the standard planograms (provide by Costcutter) with our own Epos data to deliver the optimum planograms for our store. This month we’ve sorted out tea & coffee, biscuits, pet food and ambient cakes. We hope to be able to provide positive results in the next issue of SLR. Meanwhile, we’ve been working with some Scottish suppliers to make a bigger focus of St Andrews Day. We’ve worked with AG Barr and Mrs Tilly’s to bring a bit of buzz to the store and carry out sampling. Again, you can read more about this over the next few pages. We’re working with Mr Kipling to drive up sales of their latest lines in-store, including a special £2 for a Mr Kipling cake and we offer a free coffee deal for our customers. It’s up to us to make this a strong end to the year, but only time will tell if we’ve cracked it quite yet!
It’s not hard that to believe that we’re heading into what I’m told will be “the busiest month we’ve ever had at Woodlands”, certainly in terms of activity on our behalf. The Woodlands Christmas Crackers campaign is a brilliant idea, I think, but it has taken a hell of a lot of work, and it’s not as if the other 11 months this year have been quiet and peaceful! To remind us of the fact that a problem is only ever just around the corner, we had yet another episode of flooding caused by the flat roof above us that has become the bane of our lives. Despite the fact that it has now been overhauled and re-roofed twice, it collapsed again last month with water pouring through the ceiling and closing down part of the shop yet again. We’ve decided that a more radical approach is needed if we are to stop this happening every winter. That aside, we’ve been doing well and I can’t even begin to describe how happy I was recently when we recorded the highest ever sales week at Woodlands since we’ve been here. It can be frustrating and disheartening to keep plugging away and doing your best but not seeing any improvement – so to see that the work that we’ve been doing is actually paying off was just too wonderful for words. With the refitted store we’re getting into our groove now with some great promotional programmes, some brilliant deals through our Rewards Club and, hopefully, a cracking December ahead of us. We’ve a mountain of work ahead, but it’s great to feel that we’re making progress. I would also have to say that I can’t thank my team enough. They’ve been fantastic all year round through thick and thin. More thin than thick this year, to be honest, but Rome wasn’t built in a day. The team will certainly deserve that half pint shandy I buy them at the Christmas party…
Gerry DECEMBER 2016 | SLR
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Woodlands Local | Woodlands Christmas Crackers
ON THE 24TH DAY OF CHRISTMAS, MY FAVE SHOP GAVE TO ME…
For all 24 days in December before Christmas, Woodlands Local is running a Christmas Cracker campaign with a fantastic deal, gift or offer every day for Woodlands Local Rewards Club members. BY ANTONY BEGLEY
WOODLANDS CHRISTMAS CRACKERS The 24 deals available to Members at Woodlands this December are as follows: 1st
Free beer!
A free Keith beer for all Members
2nd
Stollen for a steal
Stollen slices at knockdown prices
3rd
Gerry warms your pot
Half price Pot Noodles
4th
Saucy savings
Homepride cooking sauces for a song
5th
Winter warmer
A free hot drink
6th
Get your rocks off
Rockstar or Monster energy drinks at half
7th
News for nowt
A copy of The Sun or The Times for free
8th
Dunk for free
Pack of Independent Rich Tea with every
9th
Double discount day
10th
Cook the chook
11th
Soak up our savings
Bottles of Drench for a steal
12th
Banquet for the bairns
Heinz kids pasta shapes and sauce super
13th
Chew on this
Free pack of gum for every Member
14th
Taking the biscuit
Any pack of McVitie’s biscuits for half price
15th
Half price hot stuff
Any hot hold item for half price
16th
Freshen up Friday
Knockout deals on selected personal care
17th
Steak Saturday
18th
A bit of all white
Free pint of milk for every Member
19th
Love your liver
Coco Sun coconut water – 3 for £1
20th
Boxing clever
CDM selection box – the cheapest in town
21st
Farewell to fags
Vape juice for just £2.50 a bottle
22nd
Christmas crunch
Sharing bags of Walkers crisps at half price
23rd
One quid lunch
Any roll, 330ml Drench and crisps – for £1
24th
Sleigh yourself
8-pack Tennents – the £2.50 killer deal
price
hot drink Members Knockdown chicken, veg and sauce meal deal
cheap
items Rump steak, Kumala Cape red, chips, peppercorn sauce for £5
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10% off – rather than the usual 5% for
A
t Woodlands, we like to do things in style – so when we decided to do an ‘advent calendar’ style series of festive promotions for our Woodlands Local Rewards Club members, we decided to go one better and do a promotion for all 24 days in December before Christmas. The campaign is a significant undertaking from all sorts of perspectives, but it’s something we believe will achieve a number of important aims for us: 1. We hope to encourage lots of our customers to become Members. We aim to boost sales in the vital run up to Christmas. 3. We want to give our Members some extra special treats for their support throughout the year. 4. We want to drive trials of important new lines in the store like fresh meat and our own label Independent range. 5. We see an opportunity to quickly sell through a lot of promotional overstock we’ve gathered over the last couple of months. The net result will hopefully be a hectic month in-store with lots of happy customers and new Woodlands Local Rewards Club members – and a Christmas for us all to remember.
POWERED BY DARIUS As always, our Rewards Club activity is powered and managed by Darius, the www.slrmag.co.uk
30/11/2016 16:00:22
Inside Business
Woodlands Christmas Crackers | Woodlands Local
Members in, to ensure the amount of transactional data we gather keeps increasing too. The more data we have, the more powerful and targeted our personalised customer communications can be. The Woodlands Christmas Crackers campaign is being promoted direct to existing Members via emails from Darius but we are also working hard to make as many nonMembers aware of the campaign as possible. We have in-store POS, social media activity and leaflets in circulation, as well as encouraging our staff to make as many customers aware as possible. We have also bought a shiny new Kindle Fire tablet for the store that we will use to make it is as quick and easy as possible for customers to join the Club while they’re in the store. The sign-up process only takes 30 seconds and means more people can take advantage of the campaign deals. software platform provided by our partners Velocity Worldwide. We have calculated that the average Rewards Club member has saved themselves just a few pennies short of £50 by being a Member this year. That’s a saving not to be sniffed at – and we want to see more of our customers benefit. Clearly we are also keen to bring more
ENGAGING DEALS The deals themselves are largely done at cost so the store won’t benefit massively from the sales themselves, but we hope that by offering some knockout deals and signing up lots of new Members, we will see a longer term benefit. We are also hopeful that those visiting the store to take advantage of the deals will
Buying or selling a retail business? If you’re buying or selling a retail-based business, it’s vital that you have a reliable and accurate stock valuation for the business. Whether it’s a convenience store, newsagent, petrol station, sports shop, card shop or retail store, we’ll ensure that your business sales are supported with the professional and accurate stock valuation you need. Our business sale and transfer valuation services include a thorough date check of all stock and margins agreed to maximise gross profit. We’ll agree the correct discounts to be used with all the parties to ensure a reliable and undisputed count, with detailed valuations and certificates produced on the day of the count for immediate use. We conduct business sale stock valuation for businesses across the UK including some of the biggest and best names in retail like Costcutters, Day-Today, Best-One, Londis, Lifestyle Convenience Stores, Mace, Premier, Best-In, Shop Smart, independent Spar stores and Keystores. Whatever your business schedule, we can support it. Stock counts can be carried out to meet whatever time scales you need to follow, including short-notice valuations.
R O TF S UN R O BE SC EM ! DI M W % F NO 10 SG www.slrmag.co.uk
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also end up making a few impulse purchases while they are in the store. With more Members on our system we will have a much wider audience for our shopper engagement programme and are confident of being able to encourage these Members to visit the store more often, spend more while they’re here – and enjoy being a customer. From our experience of the Woodlands Local Rewards Club, it’s clear that Members are valuable to us. The average basket spend for Members remains roughly twice the size of the basket spend of non-Members. Some short term pain for longer term gain is the name of the game this December.
“The average Woodlands Local Rewards Club member has saved about £50 by being a member this year.”
Stocktaking:
We are professional, experienced and affordable. We specialise in providing professional and affordable
stocktaking services to convenience stores, retail stores and petrol stations throughout Scotland and the North of England, with a close eye, always, on maximising your profits. Over 40 years of experience ensures that we deliver a full range of stock counts, data based counts and EPOS stock file updates with a high level of accuracy, to your time-scale. We understand the long hours that you open, and your need to always be available for customers as a vital local business which means you need a stock take completed quickly and efficiently, at a time that suits you and your customers. That’s where we can help. Our many years of experience allows us to carry out your stock take quickly and efficiently, causing minimum disruption to your business, your staff, and importantly your customers.
Call Caroline or Ronnie today on 07863 599 126 / 07878 415 870 and let’s talk. Or go to: www.stocktakingservices.co.uk and, assuming you like what you see, email: info@crstocktakingservices.co.uk
We count ... so you don’t have to.
DECEMBER 2016 | SLR
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Inside Business
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Woodlands Local | Category Management
FIXTURE FINETUNING REACHES FINAL STAGES
Following the recent refit of the store, we have been hard at work finishing off the key fixtures in-store as we merged Costcutter’s national planograms with our own Epos data. BY ANTONY BEGLEY
O
ne of the most frustrating things about retail is that every time you stand back and think you’ve made a big leap forward, you realise that your new improvements have ended up creating a whole lot of new work for you. That’s the feeling we had after finishing the refit of the store. It looked fantastic at a superficial level but we quickly realised that almost every fixture in the store needed work, in terms of planograming. The planograms we used initially were those supplied by Costcutter but they were predominantly national planograms that didn’t take into account regional fluctuations and our own sales history in the store. So, for the last couple of months we’ve been reworking every main fixture in the store to tighten them up and ensure we had only bestselling lines and lines that we know are popular with our customers. It’s no mean feat to merge our Epos data with Costcutter’s list but we’re getting there and the fixtures are finally taking proper shape. The last few to be completed included bread and cakes, tea and coffee, frozen, biscuits, crisps and pet food. A photo of each fixture has now been taken and filed in our master folder and the plan is to keep the fixtures full and completely to planogram for at least three months. We’ll then run the Epos data again and tweak as necessary, perhaps increasing facings for popular lines and then delisting under-performing lines. It’s an arduous, time-consuming task, as all retailers know, but it will be worth it. We’re already seeing record sales levels in chilled, biscuits and tea and coffee so the theory is translating into reality. There are stil a few categories remaining to sort out but those should all be done in the next couple of weeks.
SLR | DECEMBER 2016
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www.slrmag.co.uk
30/11/2016 16:00:26
In-Store Activity | Woodlands Local
Inside Business
LARGING IT ON SAINT ANDREWS DAY! Making the best of seasonal events is a real focus of our strategy going forward, which is why we teamed up with some great Scottish companies to max it out for St Andrews Day.
O
ne of the biggest opportunities for retailers to squeeze a lot more out of the annual sales calendar is to work a lot harder around seasonal opportunities. Clearly, most retailers take events like Christmas, Easter and Halloween seriously, but at Woodlands we reckon there is a lot more mileage in less celebrated seasonal events. The first of these is St Andrews Day, which is why we teamed up with a couple of great Scottish companies to bring the store to life on 30 November. At one end of the spectrum we have on board arguably the best known Scottish brand of all – Irn-Bru – while we have also partnered with small Scottish confectionery manufacturer Mrs Tilly’s, to offer shoppers the chance to try some tasty Scottish treats for free. The event has been promoted to Woodlands Local Rewards Club members directly through Darius as well as being publicised on social media and in-store. As SLR went to press we were just finalising the preparations for the sampling day which will see us hand out mountains of Irn-Bru Xtra and a load of fantastic Scottish confectionery from Mrs Tilly’s. Customers can also win a Mrs Tilly’s hamper. We’ve even got the official IrnBru Can Man doing his bit at the store. Our shoppers are being encouraged to get a selfie with the Can Man then post it on our Facebook page for the chance to win £25 to spend in the store. Should be an awesome day.
FREE MR KIPLING WITH EVERY HOT DRINK Another great little project we carried out recently saw us hand out free Mr Kipling slices to customers buying any hot drink. We were keen to encourage our customers to get into the habit of picking up a little something extra when they were in for their morning or lunch coffee, and Mr Kipling were keen to sample their delicious new lines. As you can imagine, the deal was a massive success and we went through three outers in under four days. The Mr Kipling cake slices are now on-sale so we’re hoping that our shoppers have retained their new shopping habits!
www.slrmag.co.uk
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Hotlines
Product News & Media Watch
R White’s Lemonade Britvic Soft Drinks Britvic Soft Drinks has relaunched its R White’s lemonades with a vibrant new design and the addition of three new flavours: Traditional Cloudy Lemonade, Raspberry Lemonade and Pear & Elderflower Lemonade. The range is available to buy in single 330ml cans in packs of 6 x 330ml and 24 x 330ml, in both standard and PMP formats.
EUTPD2-compliant Blu
Cathedral City Snack Bar Dairy Crest Dairy Crest has launched a new Cathedral City Snack Bar into the convenience channel. The 30g cheese snacking product targets on-the-go shoppers looking for a nutritious alternative to traditional sweet and savoury snacks. Each individual bar carries an RRP of 60p and is available in cases of 12 from wholesalers. There are just 99 calories in each bar.
Irn-Bru Christmas package AG Barr Irn-Bru has brought back its 2015 Christmas jumper advert for the festive season and is pushing it heavily on digital and social media channels. The Christmas campaign continues in-store, with seasonal 2L packs of Regular, Sugar Free and Xtra available in plain packs and £1.50 or 2 for £2 PMPs in a knitted-effect Christmas label design.
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Blu has unveiled a new range of EUTPD2-compliant vaping products, including the Blu Pro Kit, Clearomiser and a range of e-liquids. As well as being fully compliant with the new legislation which comes into effect from 20 May 2017, the technology for the Blu Pro Kit has also been upgraded to offer a better vaping experience for consumers. Jennifer Roberts, VP customer marketing at Blu (UK), urged retailers to start preparing their stores ahead of the deadline. “We strongly recommend that retailers stock up
Creamy Strawberry Bar Lees of Scotland Independent confectionery manufacturer Lees has launched its first new bar in several years. Creamy Strawberry is a blend of strawberry and cream flavoured fondant smothered in luxurious dark Belgian chocolate and carries an RRP of 50p.
on the new range, and start promoting existing non-compliant stock to sell-through. By beginning the changeover to EUTPD-compliant stock as soon as possible, retailers will give a positive message to shoppers and show that they understand the category and are a credible vaping stockist.” She also warned that the next generation Blu Pro components are not compatible with the existing range, because of the changes to make the products compliant. The vaping brand plans to work
Kellogg’s PMPs The Kellogg Company Kellogg’s has unveiled a new range of larger PMPs, targeted at the convenience shopper. The range will increase in size and be marked at £2.99, and includes Crunchy Nut, Corn Flakes, Coco Pops, Special K, Rice Krispies, Bran-Flakes, Frosties, Fruit ‘n Fibre, Krave and Variety. The products feature reversible packaging, allowing them to be displayed horizontally or vertically.
closely with retailers throughout the changeover period to ensure a smooth transition into compliant products, and has launched a new guide to EUTPD2 to help retailers understand the changes being put in place. The six-page retailer guide includes advice on the vaping market and forthcoming legislation, as well as details on the different vaping trends and Blu products available. To receive a copy, retailers should contact their Imperial Tobacco representative. See our e-cigs feature, this issue, page 62.
Market Deli Chilli Crisps Pepsico Market Deli has extended its premium range of pita and classic potato chips with the addition of a Cayenne Chilli with Spanish Tomato flavour in a 40g bag format. The snack, which carries an RRP of 83p, joins the Market Deli singles range which also includes Flame Grilled Spanish Chorizo with Roasted Onion and Cornish Mature Cheddar flavours.
www.slrmag.co.uk
30/11/2016 10:07:16
Product News & Media Watch Rowse Lozenges Rowse Honey
Tangerine Fruit Salad Tangerine Confectionery
Popular apiarist Rowse has responded to consumer demand for natural remedies to fight the common cold this winter with the launch of its natural winter defence range. The Lozenges packs contain 10 pure honey and lemon lozenges (RRP £3.29) and Sachets contain 8 pure honey and lemon sachets (RRP £3.29).
Urban eat Christmas range Adelie Foods
Tangerine Confectionery has released a twist on its iconic Fruit Salad chews with new ‘Bunch of Bon Bons’ products. Behind a spiral design, the new Fruit Salad mini bon bons pack contains assorted ‘soft and chewy’ strawberry, lemon pineapple and raspberry flavours. The Bon Bons come in 140g (PMP £1) and 180g (RRP £1.29) packs.
Volvic Juiced Danone
A special Christmas range of sandwiches from Urban eat has been launched in the run up to the festive season. The six new limited edition tasty treats include Piggies Under Blankets sub roll, Boxing Day Brunch Panini, Brie and Cranberry Wrap, and a Turkey Feast sandwich. RRPs range from £1.99 to £2.99.
Volvic has reformulated its Juiced water range to reduce sugar levels to 4.9g per 100ml in response to the growing consumer demand for healthier beverage choices. Alongside the launch of newly reduced sugar Juiced, the 50cl range is moving to a 12x50cl case at a wholesaler price of £4.99, with an individual resale RRP of 99p.
MEDIAwatch
Hotlines
Coke for Christmas Coca-Cola has launched a new Christmas advert for 2016. The 30-second ‘Coke for Christmas’ commercial, which features a boy handing out glass bottles of Coca-Cola, is an extension of the brand’s ‘Taste the Feeling’ campaign. The creative closes with a 10 second sign off featuring Coca-Cola’s latest addition, Coca-Cola Zero Sugar.
Rustlers gets real Rustlers has begun a 12-month, £2.5m marketing campaign with a new TV ad. The creative is headlined ‘80 Years of Torment’ and tracks a man’s life from boyhood to old age, showing hardships endured along the way. It ends with the now elderly man tucking into a Rustlers burger that cooks in just 90 seconds, finishing with: ‘What A Time To Be Alive’.
The clean sheet Marking the biggest product upgrade for the brand in 60 years, Andrex continues its journey to elevate the standard of clean by highlighting how hard adults find it to talk about toilet habits. A new TV ad follows children as they carry a video camera, asking their families about how it feels to use Andrex.
A sticky situation Vegetable Kettle Chips Diamond Foods
Cathedral City Festive Dairy Crest
Kettle has launched a new range of vegetable chips in its aim to ‘reinvigorate’ the UK’s vegetable chips category. The new Kettle vegetable chips sharing range (RRP £2.49) offers a mix of parsnip, sweet potato and beetroot chips in Honey & Black Pepper, Lightly Salted and Sea Salt & Balsamic Vinegar variants. The product is also available for on the go consumption in 40g bags (RRP 89p).
Cathedral City has undergone a festive makeover which sees snowflecked packaging across its block Cheddar range in the run up to Christmas. Variants that have been treated to a packaging makeover include 350g and 550g blocks of Cathedral City Mild, Mature, Mature Lighter, Extra Mature and Cathedral City Vintage 20.
Lyle’s Golden Syrup returns to TV screens for the first time in 25 years with the launch of a new integrated campaign and £1.8m worth of supporting activity. The 20-second creative features a woman getting in a sticky mess with Lyle’s Golden Syrup as she makes a range of sweet treats with the line ‘sticky but worth it’.
Is it a bird? Tetley has unveiled a £5m campaign to promote its range of Super Teas. To highlight the difference of this range, Tetley has taken a fresh approach with its latest ad, introducing new character ‘Awesome Woman’, who, with a mix of super hero adventures, explores the health benefits of the range.
for all the latest product news, head to www.slrmag.co.uk/category/product-news/ www.slrmag.co.uk
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DECEMBER 2016 | SLR
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Feature
Last Minute Christmas
MERRY
STRESS-MAS
If you’re not prepared, Christmas can be a stressful time for retailers. There is so much to do that it can be difficult to know where to begin. With the help of SLR’s guide to putting on a last-minute Christmas you can take the tension out of the festive season. BY ÉMER O’TOOLE
PEPSICO’S NEW POPCORN Pepsico has launched new popcorn brand, Pop Works & Company, to capitalise on the successful segment. Produced using an innovative ‘wet popping’ method, the new range of popcorn is Available in four flavours: Sticky Toffee Pudding, Peanut Butter & Caramel, Apple Pie and Sweet & Salty. The new brand is available in 90g bags with an RRP of £1.50.
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C
hristmas is fast approaching and if you’re not fully prepared yet, it’s not too late to start organising your Christmas display. So what can retailers do to make the most of Christmas sales? Utilise manufacturers POS and build impactful displays in store to showcase your full seasonal range. Also remember to utilise the impulsive counter space for self-eat treats. You can help shoppers manage their Christmas spending by giving them a choice of self- eat treats and stocking fillers with a variety of products under £1. www.slrmag.co.uk
30/11/2016 10:48:32
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Feature
Last Minute Christmas
50% was the total increase in sharing packs last year from 2014.
TOP MERCHANDISING TIPS FROM WALKERS 1. Stock the right PMP range and best-sellers. Use your reps to help identify the right range for your store. A small but mighty core range, which is relevant for your customers, is all you need. 2. Right location. Work with your reps on secondary displays to help maximise sales opportunities. Keep up to speed with new products from your rep and work together to give them visibility in store to drive incremental profit. 3. To maximise on sales during the festive period, retailers should stock a range of the bestselling sharing bags. For example, if you only have space for five sharing lines then Walkers recommend you stock the top five best-selling sharing packs. 4. Crossmerchandising with other relevant product categories will boost basket spend.
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Shoppers are often looking for a range of snack items when they visit a convenience store, particularly during the festive period. Therefore, it’s important to stock products from each segment, to cater for all needs, such as sharing bags and popcorn. Pepsico research reveals that 86% of households are buying sharing packs at least once a month. This year, Walkers introduced a first to the sharing segment with Tear ‘n’ Share, a unique bag that turns into a bowl (rrp £1.99). The product is available in Lightly Salted, Salt & Malt
Vinegar, Cheddar Cheese & Onion, Sticky BBQ Ribs, and Sweet Chilli flavours. Ideal for gifting, McVitie’s Victoria Collection offers a selection of chocolate biscuits (rrp £6). Jacob’s has introduced new Festive SnackBites (rrp £3.49). Available in seasonal shapes in a Pigs in Blankets flavour, this new product follows the launch of seasonal flavoured savoury biscuits last year. Whatever stage you are in Christmas plans, it’s a time of year where customers are willing to spend so if you focus on impulse products, PMPs and sharing packs, sales should take care of themselves.
£706M was the total value of the confectionery market last year.
www.slrmag.co.uk
30/11/2016 10:48:38
Last Minute Christmas
Feature
COCA-COLA CHRISTMAS The Coca-Cola Christmas Truck Tour will visit 43 locations around the UK, helping to support retailers located nearby by building consumer excitement around the festive season. Samples of Coca-Cola Zero Sugar, Coca-Cola Classic and Diet Coke will also be available to consumers. The tour will be promoted on future consumption formats, including 1.75L bottles and 330ml can multipacks of Coca-Cola Zero Sugar, Coca-Cola Classic and Diet Coke. The promotional packs will also give consumers a chance to win a visit from the truck to their home a few days before Christmas. A festive gift hamper is also up for grabs. Caroline Cater, operational marketing director at CCE says: “CocaCola is synonymous with Christmas, and this year’s festive campaign offers a blend of exciting experiences to bring the season to life.”
GINSTERS FESTIVE EDITIONS A new festive range has been launched by Ginsters. The limited-edition sandwiches include Festive Edition Christmas Cracker (rrp £3.49) which contains turkey breast, sausage, stuffing and bacon with cranberry chutney, and Festive Edition Cranberry, Wensleydale and Bacon (rrp £2.99). The Ginsters Festive Edition Turkey & Bacon Pasty (rrp £1.99) features new packaging. The pasty contains turkey and maple smoked cured bacon with cranberries, potato and onion in a creamy sauce wrapped in puff pastry. Ginsters will be donating 10p from the sale of every festive product sold to the Royal Voluntary Service to support its work with lonely and isolated older people.
www.slrmag.co.uk
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DECEMBER 2016 | SLR
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Feature
E-cigs
ON TOP OF
THE E-CIG CATEGORY BEFORE THE NEXT STAGE OF EUTPD2? The e-cigs category is going to see a lot of change over the course of 2017, as the next stage of the EUTPD2 legislation comes into effect. One of the key aims of the EUTPD2 legislation is to improve product quality and safety across the market and retailers need to make sure customers are informed.
U
nder the new legislation, from 20th May 2017, it will be illegal in the UK to sell non-compliant vaping products; and it will be the retailer’s responsibility to ensure they aren’t selling products that don’t comply with the new rules. With the onus now on retailers to ensure they only stock and sell fully compliant products by May next year, it’s crucial they start planning now to ensure they have enough time to sell through old stock ahead of the deadline. SLR’s e-cigs guide provides everything retailers need to know about the vaping market and EUTPD2, including advice on how to spot compliant products, to help you prepare their store and protect your sales. The e-cigs category consists of three main device types: rechargeables, closed tanks and open tanks. In order to maximise sales, retailers must be knowledgeable about the various devices available, their USPs and how they work. Training staff to be able to respond to questions about the category is crucial to maximising e-cig sales. Under EUTPD2, e-cig packaging must contain a health warning covering 30% of the pack, so stock rotation is essential as new packs begin to filter through. Retailers should sell their non-compliant stock first to ensure they don’t have any left after May 2017 – after this date it will be illegal to sell it. There will be a transition period for stock so it’s essential that retailers exercise a good stock rotation system to ensure they sell through non-compliant products first. According to JTI, the three most popular vaping flavours are menthol (35%) followed by fruit (32%) and then tobacco (25%). It is worth taking note of this to
JTI’S TOP MERCHANDISING TIPS 1. As consumer demand for e-cigarettes grows, retailers should be sure to display their products prominently in store, preferably in a bespoke counter top unit – visibility is key. 2. Stockists of Logic products should take advantage of the Logic point of sale display unit which has been designed to sit on top of the counter and showcase the products available. 3. Retailers should support new product launches in store with promotion via product information leaflets and posters provided by the manufacturer.
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www.slrmag.co.uk
30/11/2016 11:12:38
Feature
E-cigs
21% £2M £158M is the total increase in the e-cigs market over the last two years.
is the number of vapers in the UK.
was the retail sales value of e-cigs in the UK last year.
maximise sales. Closed tank systems require a replaceable capsule, while an open tank system allows users to refill a reservoir with an e-liquid of their choice. Closed tanks will only work with the manufacturer’s replacement capsules. JTI’s closed tank, Logic Pro (rrp £10) delivers a ‘no spill, no fuss’ experience that is backed by the full support of a mainstream supplier like JTI. Features include a 5-click lock/unlock facility and a long-lasting battery with quick charge. Logic Pro is available in the following flavours: menthol; cherry; vanilla; berry mint and strawberry. The best way to prepare for the May 2017 deadline is to start promoting existing non-compliant stock to sellthrough before the new legislation comes into effect. Despite the new restrictions, the e-cigs category has seen massive growth over the last few years, and the popularity of the category can only continue.
BLU LAUNCHES NEW EUTPD2 COMPLIANT VAPING PRODUCTS.
51% 88%
of e-cigs sales come from symbol groups, forecourts and c-stores.
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of UK vapers use tank e-cigs, making it an important area of growth for the category.
Ahead of the May 2017 deadline, Blu has launches a new range of EUTPD2 compliant products. Available now, the new range includes the Blu Pro kit, Clearomiser and a range of e-liquids. Jennifer Roberts, VP customer marketing at Blu (UK), says: “As the May 2017 deadline nears, it’s imperative that retailers start preparing their stores for the changes being brought in under EUTPD2.” By beginning the changeover to EUTPD2 compliant stock as soon as possible, retailers will give a positive message to shoppers and show that they understand the category and are a credible vaping stockist. It is important for retailers to be aware that as a result of the changes to make the products compliant, the new generation of Blu Pro components are not compatible with the existing range. With this in mind, retailers should make sure they sell consumers compatible products and accessories to avoid frustrating customers by offering them technology that will not work with their existing vaping products. For further information or to receive a retailer guide contact your Imperial Tobacco representative.
www.slrmag.co.uk
30/11/2016 11:12:43
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Untitled-1 2
27/09/2016 09:28:51
UTC
Time to can the health and safety jobsworths
It was a different era back when UTC was growing up as a young boy [you’re not kidding – Ed], playing kick the can, climbing trees, falling off his bike, nearly drowning in the canal and generally learning valuable life lessons along the way. He’s a better man for it – or so he says. Which goes part of the way to explaining his foul-mouthed rant at “bloody do-gooder jobsworths”, the sort that ban a daft ad by Heinz encouraging people to play bongos on empty bean tins because of “the risk of cuts”. The ‘Learn the #CanSong’ ad apparently had people up and down the country putting their very lives at risk by banging out tunes on empty tins. The mirthless Advertising Standards Authority commented with an entirely straight face: “Consumers were unlikely to be as proficient as the actors at flipping and twirling the can around. Given the manoeuvres required, it might still be possible that mistakes could be made with an empty can, which might include a hand or fingers being inserted into an open tin, with the associated risk of cuts”. Thanks ASA. Thanks a bunch. That’s now a week solid that UTC has been battering out a Stars on 45 medley of Matt Monro’s greatest hits on an empty tin of beans in protest. Civil disobedience, he calls it. We won’t tell you what the rest of the office call it.
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A frisky wee 35 year old stocking filler While UTC will enthusiastically eulogise that his many decades of married life with Mrs UTC have been nothing short of blissful, if she happens to be in earshot, he will also admit that deep down beneath that flat cap and battered raincoat beats the pounding heart of a red blooded west coast male. So it’ll come as no surprise to his readers, or to Mrs UTC for that matter, that he has a wee eye for the young things, as became apparent last month. Bear in mind that ‘young’ is a relative term, and to UTC young means anything under the age of about 45. So picture the scene last month when the auld yin had his nose pressed up against the screen of his PC as he slavered about a “frisky wee 35 year old” he had his eye on. “What a stocking filler,” he growled. The more genteel members of the team at SLR Towers were getting increasingly uncomfortable as they listened to what appeared to be filth. “Seasoned leather”. “Honey sweetness”. “Salty undertones”. It was only when the auld yin’s boss told him that using Tinder on office time was expressly forbidden that it became clear that the 35 year old in question was actually a whisky. An Old Pulteney limited edition. So if any kind readers want to make an old man very happy this Christmas, not to mention his wife, then you know what the auld yin likes in his Christmas stockings.
A press release about fish cakes pinged into UTC’s inbox the other day that had the old yin chortling away at his own jokes. This is not an uncommon occurrence, it has to be said. The release concerned a range of new Free From Fish Cakes aimed at consumers with food intolerances. “Free from fish cakes? I’d like to think that most cakes were free from fish,” quipped the auld yin, a joke that went down like a burning Spitfire. But it did remind one of UTC’s colleagues of an actual good joke: A man walks into a fishmongers with a salmon under one arm. “Do you sell fish cakes?”, he asks the man behind the counter. “Aye,” comes the reply. “Good,” he says, “It’s his birthday.”
www.slrmag.co.uk
30/11/2016 10:03:31
Untitled-2 1
26/02/2016 16:02:57
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