SLR January 2016 by 55 North

WE GET RETAIL BECAUSE WE’RE RETAILERS TOO!

GEOFF OGLE

JANUARY 2016 | ISSUE 153

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FSS Chief discusses the national diet

PETE CHEEMA

SGF boss on his first year in charge

GROW YOUR OWN WAY

Glasgow social enterprise, Locavore, is aiming to raise £200,000 to open a supermarket with a difference.

FASCIAS

Is 2016 the time to sign?

TOBACCO

Another major year ahead The most rewarding event in retail is back – 2016 SLR Rewards Entry kit inside.

January 2016

Contents

Contents ISSUE 153

NEWS p4

Case for sugar tax strengthens Calls for Scottish Dietary Goals to be updated following the news that nearly 65% of Scots are overweight or obese. p5 Business rates to be reviewed Retailers have welcomed news that the Scottish Government is to review business rates. p6 Spar stores increase Spar grew its number of stores by 8% in the six months between May and October 2015. p8 Black Friday beginning to influence grocery New research has shown Black Friday to have a positive effect on grocery sales for the first time. p10 News Extra Online Shopping Strong growth in online shopping poses threat to local retailers trying to increase basket spend but top-up sales opportunity grows. p20 Product News Star Wars hits c-stores and new look for IrnBru. p21 Off-trade News Tennent’s goes back to the 80s, Glenfiddich expands production capacity, and more from the drinks world.

INSIDE BUSINESS p22 Opinion Geoff Ogle Food Standards Scotland Chief Executive discusses his recipe for a healthier Scotland. p24 Market Research Calls for change to Scottish diet. p25 Trending #illicittrade Retailers tell us about illicit trade in their area and the effect it has on the wider industry. p26 Profile SGF Chief Executive Pete Cheema gives us the lowdown on a remarkable year for the Scottish local retailing industry’s lead body. p30 Rewards 2015 We catch up with the Spirits and Newstrade Retailer of the Year winners. p32 Woodlands Local Our Rewards Club is off to a flyer with a Free Lunch Friday recruitment drive. p36 Hotlines An overview of 2016’s first lot of new products. FEATURES p42 The future of fascias The pros and cons of joining a symbol group. p58 Tobacco The introduction of the EU Tobacco Product Directive 2 this year means more in-store restrictions for c-stores. p66 The value of price marks With the rise of PMPs in recent years, how can retailers ensure they are protecting their margins while remaining competitive? p76 Healthy Living As Scotland begins a major push to improve its collective diet, convenience stores face pressure to grow their healthy products ranges. ON THE COVER p14 Grow your own way As shoppers become more conscious of where their food comes from, Locavore in Glasgow’s southside is offering something entirely new.

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JANUARY 2016 | SLR

News SERVICES National Lottery operator drives to move customer service online

JW Filshill secures lucrative deal in China JW Filshill has secured a £120,000 deal to supply a range of healthy Disney characterbranded fruit pouches for children – made in Scotland – to the fast-growing Chinese market. The Glasgow-based wholesaler sent its first shipment of real fruit purée pouches to China in December after brokering a deal which will see the product sold into Walmart’s Chinese stores. The new Disney

Retailers step up store upgrade investment The last three months have seen an investment in store upgrades of over £150m. According to the latest data from the Association of Convenience Stores (ACS) Investment Tracker shows that levels of investment in their stores from independent convenience retailers are back on the increase after dropping during the summer months. Across the UK the average investment was just over

range has been 12 months in the planning with Filshill overseeing the sourcing, production,

Woodlands Local has seen significant investment in the last three months.

packaging and shipment of this initial order of 50,000 pouches.

Britvic supports inaugural Zero Alcohol Awards Britvic Soft Drinks is to sponsor Alcohol Concern’s Zero Alcohol Awards as part of the 2016 Dry January campaign. In 2015 an estimated two million people went ‘dry’ for January, driving an increase in consumer interest and engagement with the soft

£2,100 per store, coming to a total of just under £157m. During the summer months this number had fallen to £116m, which the ACS has said indicated that retailers were bracing themselves for changes to employment costs in the July Budget. Despite the increase in investment, the ACS also reported that the percentage of retailers who have increased staff hours over the last year was just 7%. ACS Chief Executive James Lowman said that the latest investment figures showed the resilience of the convenience sector. “Many stores are still making improvements in their business infrastructure despite rising costs and continuing shop price deflation. For stores to stay relevant and competitive, investment in better refrigeration, signage and new features and services is crucial to their long term survival.” Lowman said there was further uncertainty in 2016 with the introduction of the living wage as well as continuing uncertainty over the future of business rates. “The Chancellor neglected to extend the £1,500 retail rate relief beyond this year, which when coupled with the cost of the living wage and other employment costs such as auto-enrolment, will have a direct negative impact on thousands of stores trading on the edge of profitability.”

drinks category as drinkers looked for alternatives to alcohol. The Zero Alcohol Awards will recognise and reward multiple and independent retailers, along with bars and pubs across the country who are committed to driving the creativity and innovation within the category to bring consumers the very best in soft drinks.

Convenience Show comes to Birmingham Next year’s National Convenience Show is to be held at its usual home at the NEC in Birmingham from 18th to 20th April. More than 300 suppliers of products, services and brands present their launches, while experts will discuss the hottest industry trends. Organisers of the long-running show said it would provide the perfect platform for businesses to review the best fresh produce and products, and see the latest innovations in technology and services, from POS support to

REGULATORY Food Standards Scotland says Dietary Goals need to be updated

Case for sugar tax gets boost In a move which will bolster the case for supporters of a sugar tax, the Food Standards Scotland (FSS) Board has advised the Scottish Government that the Scottish Dietary Goals need to be updated in the light of evidence which shows that almost two-thirds of Scots (65%) are either overweight or obese. Despite this, the newly-published FSS Situation Report ‘The Scottish Diet: It Needs To Change’ also found that three-quarters (77%) of the population believe they have a healthy or very healthy diet. Evidence contained within the Situation Report also highlights that around half a million people in Scotland are at a risk of developing type two diabetes, while the Scottish diet was deemed to be too high in calories, fats, sugars and salt, and too low in fibre, fruit and vegetables. The report goes on to flag up “the need to reduce the consumption of discretionary food and drink if there are to be significant measurable improvements to diet and health of the Scottish public,” and targets biscuits, cakes, confectionery, savoury snacks and sugar-sweetened drinks. Ross Finnie, Chair, Food Standards Scotland said: “The Scottish diet is not improving and the problem of diet-related ill-health is now spanning the generations. “There is a disconnect between the scale of the

problem and how healthy people believe their diet to be. We all need to recognise there is a problem and everyone including consumers, the food and drink industry, retailers, media and government has a part to play in finding a solution.” The Board proposes the following revised goals to reduce sugar to 5% of total energy, to increase dietary fibre intake to 30g per day, and to maintain total carbohydrate at 50% of total energy with no more than 5% total energy from sugar. See p24 for analysis.

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News FINANCE Finance Secretary promises review of Business Rates

Business rates review welcomed In his draft Scottish Budget, Finance Secretary John Swinney has promised to hold a review of business rates. The move matches a review currently underway in England, and has been long called for by businesses in Scotland. In a preliminary response to the Scottish Budget, the Director of the Scottish Retail Consortium, David Lonsdale, said: “We are delighted that the Scottish Government has listened to the retail industry and the growing chorus from across business and commercial life in Scotland who have spoken up in favour of fundamental reform of business rates, and we very much welcome the promised review of

business rates. The review heralds a great opportunity to recast business rates for the decades ahead and we look forward to working with the Government to ensure the reformed

system is modern, sustainable and competitive. Business rates are set to generate almost £2.8bn in tax revenues next year, up from £2.1bn just six years ago.” On the proposed rise in business rates paid by larger firms, Lonsdale added: “The hike in the large firms rates supplement is concerning, and it now appears that larger firms operating in Scotland will be paying more in business rates than firms operating in comparable premises down south. That would be a departure from the pledge to keep rates here at the very least in line with the rest of the UK, and undermines claims to have the most competitive rates regime in the UK.”

UK businesses growing, just not in retail UK businesses have seen a 24% rise in annual income growth since 2010, according to the latest Barclays SME Income Index. Analysis of the current account levels of Barclays smalland medium-sized enterprises (SMEs) in 2015 showed that year-on-year, the annual growth rate of business income has slowed, from a high of 8% in 2014, to 4%. Last year’s annual growth rate of 8% was the biggest in 14 years. Yet with some annual income growth having occurred in 2015 SMEs are projected to continue to experience growth in 2016.

£60k prize pot on offer from Today’s 2016 will see Today’s Group offering retailers a year of deals and prizes under the theme of ‘Deal Busters’, which will be rolled out across wholesale

AWARDS SLR takes home top award for second time at Scottish Magazine Awards

SLR named Scottish Business & Professional Magazine of the Year

member depots from March. Retailers can look forward to discounts on branded products with one-day only deals highlighted in-depot via iBeacon technology. Using Bluetooth connectivity retailers

Scottish Local Retailer has won Business & Professional Magazine of the Year at the Scottish Magazine Awards, organised by PPA Scotland. The win marks the second time SLR has been named the best in the business, and is a spectacular end to a hugely successful year for Scotland’s leading title for the convenience grocery industry. The Award was collected by Editor Kevin Scott at a ceremony in Edinburgh. SLR was also shortlisted for Business & Professional Editor of the Year, and Brand Extension of the Year for its innovative ThinkSmart Convention. Judges at this year’s awards included Julian Linney, former Editorin-Chief of Heat, Christopher Phin, former Editor-in-Chief of MacFormat and Mac|Life; and Fiona Gibson, former editor of Just Seventeen, Bliss and more! magazine. Judges said they were impressed by SLR’s increased reputation as an authority

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will be alerted to deals within close proximity as they shop the depot through smartphone notifications.

New Year brings Big Brand offers to Spar Spar will kick off 2016 with a host of New Year deals for its customers. The ‘Big Brand Sale’ runs throughout the first six weeks of 2016, offering ‘Half Price or Better’ on a range of top brands. The offer will include products in the licensed, fresh &

in the industry, and highlighted the fact that SLR is able to “genuinely walk in its audience’s shoes” thanks to our Woodlands Local store. Kevin Scott said: “It’s been a phenomenal year for SLR. It kicked off with the launch of ThinkSmart, and was followed by our biggest SLR Rewards yet and a strategic partnership with the Scottish Grocers’ Federation, in addition

to delivering a magazine that continues to help retailers make more of their businesses. This award is a testament to everyone that works on SLR and we’re absolutely delighted to have another gong on our mantelpiece. This gives us even more motivation to continue with our hugely ambitious and innovative plans to make the content for our readers even better in 2016!”

frozen, and grocery & non-food categories, throughout the six weeks. Also in January, Spar will be back on TV screens with the latest burst of its media campaign. This round of ads will continue to focus on the quality of its Spar Brand products including two of its slow-cooked products, and wine.

JANUARY 2016 | SLR

News PAYMENTS Europe-wide agreement on card fees is good news for retailers

Numbers look good for Graham’s the Family Dairy

Scottish dairy brand, Graham’s The Family Dairy, has rounded off 2015 with a strong set of annual results which show sales for the year having increased to £86.5m (2014: £85m) with pre-tax profit also rising to £1.6m. Graham’s significantly

Fees on card fees capped The Payment Systems Regulator has published a consultation paper on the application of the Interchange Fee Regulation in the UK. Under new rules, this fee, which is the amount that banks charge retailers for accepting debit and credit cards, will be capped at 0.3% for credit card transactions and 0.2% on debit card transactions. The new cap on interchange fees is estimated to save retailers approximately £480m per year. Under the previous regulations, typical interchange fees ranged from around 8p to 11p per debit card transaction and between 0.77% and 1.5% of the transaction value for consumer credit cards. With the growth in popularity of contactless payments, and the subsequent increase of payments in convenience stores with debit and credit cards, the cap has been welcomed by retailers. ACS Chief Executive James Lowman said: “We are pleased that these limits will now be applied to card

transactions as we argued strongly in the EU and at the Treasury that limits were required. Around one in five convenience store customers currently pay by card, with contactless payments also growing significantly over the last year, so placing a cap on retailer’s costs for processing these transactions is necessary for convenience stores.”

reinvested in the company, encouraging sustainable growth and opening up new revenue streams. Capital expenditure of £5m has included spend at their dairy in Bridge of Allan in order to increase the production capabilities of spreadable butter, as well as the acquisition of the Glenfield Dairy site in Fife from First Milk. This recent purchase will see the business expand into cottage cheese, quark and sour cream. There was also significant spend at the Nairn dairy from which Graham’s now produce a new range of yogurts. Coupled with a focus on their Scottish roots, Graham said it would also look to increase its margins in 2016 by increasing sales of its added value range of products, which will help fund an increase in marketing activity to boost awareness. Activity in 2015 included a new broadcast commercial; media spend on TV, cinema, press and outdoor; an ice-cream event series; and a renewed emphasis on digital. “Our vision is clear. We want to be the dairy brand of choice – and this year, we took a big step towards that goal,” said Carol Graham, Marketing Director at Graham’s The Family Dairy. “Our range is now delivered to over

SYMBOLS Spar grows store numbers by 8% from May to November 2015

Spar store numbers swell

Spar grew its number of stores by 8% in the six months between May and October this year, as an additional 185 premises brought the symbol group’s total to 2,578. This influx has been put down to a number of factors, including existing Spar retail partners increasing their store portfolio as well as new retailers joining Spar, national account store numbers growing and the addition of a large number of stores from Euro Garages. “We’ve worked tirelessly to develop innovative new store formats, an award-winning own label product range, a wider breadth of services than ever and it’s paid off,” said Debbie Robinson, Spar UK Managing Director. “Even though it’s a tough market, we have great ambitions for our retail partners, in growing areas like foodservice, fresh, local suppliers and franchise opportunities. The focus on our four pillars is working and we know we offer our award-winning retailers stable long-term partnerships.”

DISTRIBUTION

New dimension to Nisa distribution

In a move likely to turn motorists’ heads, Nisa has had 68 of its new distribution fleet decorated with full-side liveries advertising the Heritage own label range in a series of 3D designs. The new imagery looks to take advantage of what Nisa calls a relative lack of impactful vehicle designs on the road. The lorries hit the roads this week featuring six designs focussing on some of the key lines and product groups in the Heritage range, including cereals, popcorn, coffee, fresh produce and burgers. There is also a generic version, showing a variety of related Heritage products. To mark the launch, a social media-based competition encourages consumers to look out for the new lorries and post pictures of them. “We’re really proud of our Heritage own label range and so it is fitting that we now have such fantastic, stand-out lorry side advertising to help get the message out about the quality of the products and the fun we have creating them,” said Erin May, Heritage Brand Manager at Nisa.

6,000 customers and our sales have continued to grow.” KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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*IRI, Value Sales, SIG all scan snack outlets, 52 w/e 07/11/2015.

News SHOPPING Retail sales flat, but major discounters make their mark

Q Müller has confirmed details of the team that will lead its UK fresh milk and ingredients business following the acquisition of Dairy Crest’s dairy operations. The company is bringing Müller Wiseman Dairies and Dairy Crest’s dairies operations together to create a new organisation which aims to be the biggest and best fresh milk and ingredients business in the UK. Andrew McInnes, currently Acting Managing Director of Müller Wiseman Dairies, has been appointed Managing Director.

Black Friday beginning to influence grocery Ahead of Christmas, there was sluggish growth in the grocery market, though for the first time, Black Friday is thought to have had a positive effect on sales. The latest grocery share figures from Kantar Worldpanel, for the 12 weeks ending 6th December 2015, show total grocery market sales up by only 0.1% compared to last year as retailers battle for sales during the vital Christmas period. According to the SRC KPMG Scottish Retail Sales Monitor, food sales decreased 2.2% in November, which marked a modest

improvement from October’s 3.2% decline. Both Kantar and SRC KPMG said Black Friday had a positive effect on food sales. The SRC said lthough Non-Food is the main beneficiary of Black Friday sales, the advancement in food’s performance was driven by Black Friday offers on festive fare in the final week of November, encouraging consumers to prepare for Christmas festivities. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, comments: “Although slow growth means a distinct lack of

seasonal cheer for the market, the news is more positive for consumers looking to save this Christmas. Last year customers spent an average of £71.33 on their big Christmas shop but with falling prices set to continue, shoppers are likely to enjoy a cheaper Christmas this year.” The discounters Aldi and Lidl remain at the combined 10% share of the market they achieved last month, growing sales by 15.4% and 17.9% respectively year-on-year. The Co-operative’s revival continued with sales growth of 2% and an increased market share of 6.2%.

Q AB InBev has made moves to strengthen its position in the craft beer sector with the acquisition of Camden Town brewery. The firm has already established a position in the market with its acquisition of Meantime, however it has been announced that AB InBev may sell off Meantime. Camden Town, which will become a wholly-owned subsidiary, said it would now be able to open a second brewing plant. Q More from AB InBev, and in the wake of news that the firm will be taking over rival brewery SAB Miller, it has been rumoured that Peroni and Grolsch will be sold. These top lager brands are among those being considered for sale in order to get the deal approved by regulatory authorities. Q The legal challenge against plain packaging of tobacco as begun. Four of the world’s largest tobacco firms – JTI, Imperial Tobacco, BAT and Philip Morris – have brought the judicial review against the Government plans, arguing that they break EU and UK laws, depriving them

LOYALTY New city wide loyalty card aims to drive engagement in Perth

‘Shop local’ gift card unveiled in Perth A new gift card has been launched, aimed at helping independent businesses compete with national chains while keeping money in the local economy. The Perth Card programme allows users to spend their pre-paid cash at a selection of local retail and hospitality businesses that the City of Perth has to offer, with over 50 signed up already. Digital Marketing firm Miconex, which has launched the card in partnership with Perth & Kinross Council and Scandinavian firm Presend, believes it is the first of its kind in Scotland, but is hoping to roll-

out further schemes across the UK. Similar projects in Scandinavia have generated as much as £500,000 to the local economy. Colin Munro, Chief Executive at Miconex, said: “It essentially works in exactly the same way as any gift card, but instead of being limited to one retail outlet this can be used in various unconnected shops throughout the city. David Littlejohn, Head of Planning & Development at Perth & Kinross Council, thinks the gift card could be a huge boost to independent businesses in Perth and the local economy.

SERVICES

Camelot ends freephone number National Lottery operator Camelot has disconnected its Freephone number for retailers as it moved towards an onlinedriven customer services strategy. Retailers wishing to call the hotline thereafter will have to pay 7p per minute as well as their network provider’s access charges. A new Camelot website that will allow retailers to self-serve – including accessing sales history, checking Scratchcard inventory, and carrying out terminal troubleshooting – is not yet online. NFRN Chief Executive Paul Baxter said: “We are absolutely stunned that Camelot is pushing ahead with plans to disconnect its free phone number when it is still months away from launching its new website.” Camelot does offer an email facility for reporting problems, although Baxter suggested that retailers requiring engineering support “would not be comfortable” using this method.

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News Extra

Online Shopping | Growth could hurt c-stores

NewsExtra WHY SHOPPERS CAN’T GET ENOUGH OF PMPS – P66 RESEARCH Online grocery shopping set to hit £17bn by 2020

Convenience Matters with the SGF 2016 is (yet) another big year in Scottish politics: the Scottish Parliamentary elections take place in May. SGF is getting into parliament early to begin a campaign of engagement with MSPs and the Scottish Government to ensure the issues affecting the independent convenience store sector get a high profile. On 14th January SGF will hold an event in the Scottish Parliament to launch the Scottish Local Shop Report. Our aim is to ensure that every MSP gets a copy of the report. For the first time we now have Scotland-specific data which shows the scope and scale of the independent convenience store sector in Scotland. MSPs have to begin to realise that ours is an important industry, providing thousands of jobs, providing vital routes to market for our manufacturers and wholesalers and contributing significantly to local communities – 87% of convenience store retailers are regularly involved in community engagement activities. Another key message is that, through membership of SGF, retailers are connected with each other and with an organisation that works on their behalf to influence government policy. The publication of the Scottish Local Shop Report marks a big step forward for SGF. It’s the kind of hard evidence we need (and the kind of evidence government and MSPs like). Key retail members from the SGF National Executive will be at the 14th January event but we want to extend the invitation to all our members: it would be great to have as many retailers there as possible, and this is where you can do your bit. So, if you would like to attend please don’t hesitate to get in touch.

SLR | JANUARY 2016

ONLINE SHOPPING MOVING INTO MAINSTREAM Strong growth in online shopping poses threat to local retailers trying to push basket spend, though opportunity exists to grow top-up sales as over 40% could do main shop online. More than four in 10 (42%) grocery shoppers in the UK could potentially be converted to online shopping, according to research unveiled at IGD’s Online & Digital Summit. While IGD says this offers huge opportunities for growth in this market, there remains a threat to convenience stores, the overwhelming majority of whom do not offer online services. With shopping trends moving to ‘little and often’ for reasons of convenience, online shopping is thought to offer even more convenience for shoppers, potentially reducing the likelihood of them visiting their local store for anything other than top-up products. IGD is forecasting online to be the fastest-growing sector of the UK grocery market over the next five years, almost doubling in value from £8.9bn in April 2015 to £17.2bn by April 2020. In recent years there has been significant growth in the number of shoppers using the online grocery channel, with a quarter (26%) now saying they have shopped online for groceries in the last month versus a fifth (22%) in 2010. Ben Miller, Director of Retail Insight at IGD, commented: “Online is still on a rapid growth curve, as people make

the most of new devices, lower delivery charges and minimum spends, plus greater access to click and collect points. Those shoppers who have lapsed from online – or never tried it in the first place – told us that lower delivery charges, better selection of quality products and more accuracy on ordering could encourage them to make the switch. With the rapid improvements we have seen in online grocery over the last two years, there is every reason to believe that many shoppers would really enjoy today’s online grocery experience.” Online grocery shoppers also tend to be slightly more loyal, according to IGD ShopperVista, with 54% saying they are always loyal to the same retailer against 50% of in-store shoppers. There is also a trend to conduct larger shops online rather than in-store, with 80% of online grocery shoppers claiming to do their ‘big shop’ online. Miller added: “Clearly, once shoppers have trialled online, many then use it as their main form of grocery shopping, demonstrating growing levels of convenience and loyalty. Online offers a great opportunity for retailers to really encourage loyalty; it is extremely appealing to shoppers.”

42% of all grocery shoppers in the UK have indicated that they would consider converting to online shopping.

26%

already class themselves as regular users of online grocery, while 11% of all shoppers say it is where they do most of their shopping.

33%

of shoppers deem themselves lapsed online grocery shoppers. Nearly half (47%) of that group haven’t shopped online in the last year and 28% haven’t done so in the last two years.

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Comment

HOW DO YOU SOLVE A PROBLEM LIKE SCOTLAND’S DIET? Everything in moderation. It’s a phrase that haunts us all the morning after the Christmas night out. The flipside to that rather flat idiom is that life without indulgence is a life half lived. Now and again it does you good to forget where the line is that divides moderation and excess. The problem we have in Scotland is that many people out there don’t even know this line exists. So, something needs done about our diet. That’s the message from the recently created agency Food Standards Scotland, whose Chief Executive Geoff Ogle puts forward his case very succinctly in this very magazine. Where does that leave convenience retailers? We are the purveyors of the discretionary foods Ogle writes about, those that may be enjoyable, but which don’t provide a whole lot of nutrition. The argument when it comes to selling tobacco has long been that as long as it’s a legal product then we’ll keep selling it responsibly. Do we really want to get into the same debate over soft drinks, confectionery, crisps, cakes, pastries? Do we really need the precise location and the visibility of strawberry tarts dictated to us by the Government? Even so, it would seem that such measures could be taken by the Government, forcibly changing the way certain products are sold. This is not helpful. As ever, it is an education process that’s required, not more dictatorial policy. But common sense is not an ally of the Government’s and so we could well see restrictions on merchandising the sorts of products that keep convenience stores in business. One solution could be to make the first move, to show that as an industry we are doing what we can. The SGF Healthy Living Programme is key to this, but there are further options. That’s why at Woodlands Local we’ve decided to change the range of products available at the tillpoint. This does not mean we’ll be removing all confectionery – we don’t believe that’s the answer. But what we will do is make healthier snacks more abundant in that highly impulsive area, and we’ll be monitoring their sales to see if there’s a change in habits. If, as an industry, we start to help our shoppers make more informed choices, hopefully the Government will leave us alone to do what we do best. Finally, a moment of trumpet blowing if you’ll indulge me. Last month SLR was named Business & Professional Magazine of the Year at the Scottish Magazine Awards, ending a great 2015 on as high a high as possible. As Bryan Adams once nearly said, everything we do, we do it for Scotland’s local retailers. A big thanks then, to everyone involved in producing SLR (Antony, Findlay, Mia, Émer, Susan, Donald, Richard, Cara, Chloe and Geraldine), and here’s to a spectacular 2016.

EDITORIAL Publishing Director Antony Begley 0141 222 5380 | abegley@55north.com Editor Kevin Scott 0141 222 5385 | kscott@55north.com Features Writer Mia Hunt mhunt@55north.com Editoral Assistant 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 Senior Designer Richard Chaudhry 0141 222 5300 | rchaudhry@55north.com

CIRCULATION & SUBSCRIPTIONS Events & Operations Manager Cara Begley 0141 222 5381 | cbegley@55north.com Events & Operations Assistant Chloe Buchanan 0141 222 5386 | cbuchanan@55north.com 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.

KEVIN SCOTT, EDITOR

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Social Enterprise

Cover Story

GLASGOW’S FRESH FOOD REVOLUTION

As shoppers become more passionate about what they eat and where it comes from, Locavore, an ethical grocery business in Glasgow’s southside, is aiming to raise £200,000 to open a social enterprise supermarket that would give shoppers the ultimate in locally-sourced retailing. BY ÉMER O’TOOLE

ocavore was established in December 2011 by four people with the clear aim of promoting local food growing and cookery while running a community shop. In May 2012 the company opened a project hub in Shawlands in the south of Glasgow and ran a local food shop and community cooking workshops. During that period, Locavore created seven new food growing spaces in the community, including train station gardens at Pollokshields West and Pollokshaws East. After a year of growth, Locavore relocated to its current location on Nithsdale Road. Today, it is on course to raise £200,000 partly through a crowd-funded initiative to launch a 1,000 sq m social enterprise supermarket in Glasgow. 14

SLR | JANUARY 2016

Managing Director Reuben Chesters is seeking £200,000, partly through crowd-funding, to open a 1,000 sq m social enterprise supermarket.

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Social Enterprise

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helps the store hone its offer. “Most people who come in are flexible shoppers – they will see what we have and go home and cook it. People who come in with a list don’t really do as well at finding what they need but you can do a weekly shop at Locavore if you really want,” says Reuben. While Reuben believes that what Locavore does is “very foreign compared to your average Spar or Nisa”, there are some elements that could be used by c-stores if they want to tap into this market. For instance, cleaning products like Bio-D sell particularly well at Locavore, as customers can bring the bottle back and Locavore will refill them with the product which is a saving of 50p-£1. This refill initiative would be simple enough to recreate in a c–store, space permitting.

EGGHEAD APPROACH Eggs are Locavore’s biggest seller. Priced at £2.30 per half dozen, they are in line with the average supermarket price for organic eggs, but if shoppers bring their own box, this is reduced to £1.80. Taking provenance to levels Tesco could only dream of, Locavore gets eggs from its own hens, and due to the fact they sell over a thousand eggs a week, they have to order in extra from other suppliers. In terms of replicating this model in convenience stores Reuben says it depends on the location. “It could be part of an added expense but might be a good idea to get eggs from local farms instead of wholesalers,” he says. He puts the increased basket spend down to Locavore’s dedication to increasing its lines and focusing on essentials. The shop didn’t sell tinned tomatoes, its second biggest seller (after eggs) a year ago, for example. The shop has limited space so there can’t be a full aisle of tinned food but Reuben says he tries to have a good selection of everything. Locavore delivers about 200 boxes of groceries in its weekly vegbox delivery

l s

Reuben Chesters, Locavore’s Managing Director, says the aim of the company is to use the business “as a vehicle for social good”, as opposed to for profit, a philosophy much in line with the community retailing seen in c-stores throughout Scotland. According to this year’s ACS Local Shop Report, 83% of UK c-store retailers have been involved in community activities like collecting for charity, sponsoring local teams and providing support for local events over the last year, and Locavore is no different. The social enterprise runs a host of community projects, including cookery classes, and – incredibly – an urban croft site in Queens Park that has growing spaces for the local community. Locavore also takes part in The Good Food Fund (GFF), which runs out of the shop every other Monday, using cash donations from customers to distribute local organic produce and store-cupboard staples at cost price, to 25 people per week. Reuben says: “We value this quite a lot as it makes a difference without too much effort on our part.” Locavore got involved in the scheme after being dissatisfied with supermarkets who charge foodbanks for food and essentials. Reuben says supermarkets should “have more responsibility and give the products to foodbanks themselves.” Reuben believes that convenience stores could use some elements of Locavore’s business model and “make it work for them.” The shop has even previously tried to collaborate with symbol groups, but it turned out to be too restrictive, due to store purchasing requirements. “It is an entirely different market,” says Reuban. “For instance, we would never sell big global brands like CocaCola. I think c-stores could do a lot more to differentiate themselves from supermarkets. This is one way of achieving that. It is a lot harder to run a convenience store than what we’re doing,” Reuben explains. Knowing its customers plays a huge role in Locavore’s success. The shop carries out occasional customer research via Facebook, and surveys in its newsletter. Data is crucial to the business. What Locavore knows from its research is that the average customer is female, aged 25-34, living in a household with two to three people. Reuben says the shop gets a lot of older customers as well, and most of them are conscious of ethics. Interestingly, the research revealed that 30% of Locavore’s customers do most of their shopping there, and the rest get what they can from Locavore and then go somewhere else depending on cost and what Locavore has to offer that week. This 70% majority split their shopping across Locavore, supermarkets, and another independent retailers. All this information

Cover Story

Organic growth Locavore isn’t the only company focusing on ethically sourced local produce. There are a number of stores in Glasgow, and around Scotland that do just that – elements of which can be replicated in c-stores to improve their standing in the community, and offer a real point of difference to supermarkets. Grassroots A 70% organic wholefoods supermarket, deli and café in Glasgow’s West End that claims to have the widest selection of organic wine in Scotland. Heart Buchanan A deli on Byres Road that contains a range of Scottish products, including locally sourced salmon and wild boar sausage. Lupe Pintos This store specialises in spicy and Mexican food with 40 different types of chilli and is famous for the chipotle chilli – a dried and smoked jalapeno pepper shipped in from Mexico. It also stocks cooked Meara, olive oils, tea, coffee, grocery products and organic food. Roots, Fruits & Flowers Located near Glasgow’s Kelvinbridge, this store is a community based grocery store for the environmentally conscious with a varied selection of organic meat, dairy products and fruit and vegetables. Greencity Wholefoods A wholesaler of food and wine based in Glasgow’s east end. The shop does not sell any products tested on animals and only sells vegetarian groceries.

“I think there is a cultural shift. People like what we do for different reasons: our health, environment, political statements, or maybe they just think that our food is better.”

JANUARY 2016 | SLR

Social Enterprise

Cover Story

“I think c-stores could do a lot more to differentiate themselves from supermarkets. This is one way of achieving that. It is a lot harder to run a convenience store than what we’re doing.”

If you really want to find a point of difference, why not follow the Locavore model and get your own chicken coop and sell farm fresh eggs that couldn’t be more local?

scheme. Customers can receive eggs/milk or any groceries every Friday. This links in with the shop’s market garden, eight miles away from the shop, in Neilston, where the group grows produce it can’t source locally. “Customers like it because it is extra fresh,” says Reuben. The majority of supermarkets can’t offer next day delivery but c-stores are in a unique position where they are able to react quickly to customer requests. The proof of the store’s success is in the numbers. This isn’t a loss-making operation more focused on ethics than profits. What Locavore does is prove that you can run an ethical, profitable business that’s good for the planet and the local community. The average basket price is £10 – nearly double what it was a year ago (£5.50-£6) – and higher than the c-store average of £6.52, impressive considering the directors of Locavore don’t have a retail background. “We formed in quite a haphazard way and learned as we went along. We have made plenty of mistakes but you learn from them,” says Reuben.

world, spending a week at the UK’s largest co-operative retailer, the Unicorn Grocery in Manchester, where they were given access to everything from set-up costs and systems to finance and IT. Unicorn generates sales of over £6m a year and has 60-70 full time staff. Reuben concldues: “I live in a bubble where this stuff is all I hear about but I think there is a cultural shift. People like what we do for different reasons; our health, environment, political statements, or just that our food is better. For a small business we are as far ahead as anyone else in Scotland.” From fresh pulses and grains...

THE BIG PLAN In November 2015, Locavore launched its ‘Big Plan’, a crowd-fund initiative to launch a social enterprise supermarket in Glasgow that, at 1,000 sq m would be roughly the size of a standard Lidl shop, and 20 times the size of Locavore’s current premises. “The aim is to act like an independent supermarket but with ethics behind it, changing the world one shopping basket at a time. If we are a larger part of the market, we can strive to change that market,” says Rueben. The social enterprise aims to raise at least £200,000 through crowd funding, loan stock and social lending to launch their larger store. At the time of writing the company had already secured £17,500 from LaunchMe, a social enterprise accelerator programme run by Firstport and £16,000 through Crowdfunder – passing a preliminary goal of £15,000 by mid-December. As an incentive for people to donate, Locavore has offered a range of rewards depending on the amount donated, including discount coupons, allotment plots, cooking workshops, veg box deliveries and even the chance to name a supermarket aisle. Reuben and his team have visited similar retail models of comparative scale around the 16

SLR | JANUARY 2016

... to its own urban croft site in Queen’s Park.

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News

Products

CAKES

Lees launches Mint Teacake Lees of Scotland has introduced a new Mint Teacake, extending its teacake range following the launch of the Lees Jaffa Teacake in 2013. The new teacake has a mint taste emanating from the biscuit, and mallow covered in chocolate-flavoured coating. Packaging has been designed to complement the rest of the Lees range which highlights the product, with a large image of the Mint Teacake featured on the pack. Each pack contains 14 individual teacakes. Sheevaun Thomas, NPD Project Manager at Lees of Scotland, commented: “Lees Teacakes have been enjoyed by families for generations and we want to ensure our products remain appealing to both our existing customers as well as potential new customers. “We spent a lot of time developing this new mint teacake product to ensure it delivered the taste we wanted. We are very excited about its launch and we are confident our customers will really enjoy the product.”

ProductNews 2016 IS SET TO BE A BIG YEAR FOR TOBACCO; ARE YOU READY? – P58 SOFT DRINKS New packaging is only the eighth refresh in Irn-Bru history

New look for Irn-Bru Irn-Bru is to receive a new look for only the eighth time in over 100 years. Updated bottles and cans, which nod to the brand’s history and heritage, roll out from March 2016. Looking to its past, Irn-Bru’s new designs reflect the brand’s most iconic symbol – the girder – but with an up to date, modern twist. Original strongman, Adam Brown also appears on packaging; a real tribute to the brand’s history. Although the packaging will look different, the Irn-

Bru blue and orange colours remain – ensuring a strong standout and unmistakeable identity. Adrian Troy, Head of Marketing at Irn-Bru, is looking forward to seeing cans on shelves: “Girders are such a strong part of our heritage, we knew we had to have them front and centre on our packs. The new designs really modernise Irn-Bru but stays true to our roots – Irn-Bru is a brand built on strength and power. We’re excited to see the new look in stores.”

ECIGS

E-Lites Curv back on TV E-Lites is back on the small screen supporting its E-Lites Curv range. The campaign also includes press ads in national daily newspapers such as The Mirror, The Sun and Daily Star. Jeremy Blackburn, Head of Communications at JTI, the company behind E-Lites, commented: “The E-Lites Curv TV ad achieved significant cut through amongst the relevant target audience when it first aired back in August, and we expect it to have a big impact this time around. “Retailers looking to make the most from e-cigarettes should take the time now to get their range right and stock up on E-Lites to become a destination shop for vapers.” In the last two years the e-cigarette market has increased by 63%, with two million people now vaping.

SLR | JANUARY 2016

WATER

Star Wars hits c-stores Ahead of the launch of Star Wars: The Force Awakens, Volvic teamed up with Disney UK to launch a range of branded collectable, limited-edition natural mineral water bottles designed with Star Wars characters. The bottles are available in five characters, Chewbacca, Stormtrooper, Darth Vader, C-3PO and Boba Fett.

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Off-Trade

News

Off-TradeNews AFTER A GROUNDBREAKING YEAR, WE SPEAK TO SGF CHIEF EXECUTIVE PETE CHEEMA – P26 BEER 1980s packaging set to stir up nostalgia for Tennent’s drinkers.

TENNENT’S GOES BACK IN TIME To celebrate 130 years of brewing, Tennent’s is launching packs decked out in a design which first saw the light of day when shoulder pads and stone-washed jeans weren’t items of derision. The limited-edition packs are available in Spar and Keystore outlets across Scotland in packs of six and 12. Also, if consumers have any Tennent’s Lager memorabilia from the 80s they’d like to share, the brewer will gift them one of the retro six-packs. All they need to do is pop into the brewery with their treasure, or tweet a

picture to @tennentslager using #TLRetro. Paul Condron, Marketing Director at Tennent Caledonian said: “We think the packaging will be a hit, but would like to point out that you don’t need to have a mullet to enjoy it.” Tennent Caledonian has also given a boost to the Shawbost Shop and Café on the Isle of Lewis in the form of a brand new delivery van. Shawbost owner Michael Fitzpatrick had previously launched a crowd funding campaign to buy a van, to provide a vital delivery service.

Kumala backs Beefy’s big walk South African wine brand Kumala was the official wine sponsor of Sir Ian Botham’s eight-day charity walk across South Africa, dubbed ‘Beefy Walking the Rainbow Nation’. The mammoth walk took place in December and took in much of South Africa’s stunning scenery. It began at Llandudno Beach, Western Cape, and finished in Pretoria on 17th December. This walk marked the celebration of Botham’s 60th birthday and the 30th anniversary of his first walk from John O’Groats to Land’s End in 1985, and raised money for a number of key South African charities.

SPIRITS Diageo makes its case for stocking premier gin

Arbikie unveils Chilli Vodka to mark birthday

TANQUERAY HALF CASES TO PUSH PREMIER SPIRITS

Arbikie Highland Estate celebrated its first anniversary this month with its third product

A new Tanquerary London Gin half case size has been launched by Diageo. Already available in cases of 12, retailers can now take advantage of the cases of six to reduce cash outlay and stock holding. The case size will be available for the Tanqueray London Dry Gin 35cl fractional. Premium Gin is growing at around 10 times the rate of non-premium Gin, with Tanqueray London Dry Gin driving 25% of all growth. Louise McKerrow, Marketing Director for Gins at Diageo, said that “retailers can now take full advantage of upselling a premium spirit brand with the added bonus of reduced cash outlay.” SPIRITS Glasgow-based firm takes top award

WHYTE & MACKAY NAMED UK SPIRITS PRODUCER OF THE YEAR Whyte & Mackay has been awarded the International Wine and Spirit Competition Trophy for ‘United Kingdom Spirits Producer of the Year’. Having picked up gold medals for its portfolio of brands including The Dalmore and Jura, as well as a range of its private label products, the company was subsequently put forward for, and won, the overarching trophy for UK Spirits Producer of the Year. www.slrmag.co.uk

launch of 2015 – a Chilli Vodka. Arbikie launched Scotland’s first potato vodka in November 2014, with the aim of changing consumer perceptions of vodka. Arbikie Vodka has since been awarded ‘Best Vodka’ at the Paris Cocktail Awards, Double BEER

Gold at the China Wine & Spirits

Heineken takes on Red Stripe distribution

Awards and was named one of

Heineken will take over Red Stripe in the UK following a global deal with Diageo worth $780.5m. From 1st January, the Jamaican lager joined Heineken’s premium range of beers in the UK that include Desperados, Tiger and Birra Moretti. David Forde, Managing Director of Heinken in the UK said: “The beer has a rich heritage – from its links with music through the decades, to its famous cans and stubby bottles. It brings a wealth of opportunities for our customers which we will support through brand investment and innovation.

Glenfiddich expands production capacity

the ‘Best Vodkas in the World’ by GQ Magazine.

Glenfiddich is to increase the capacity of its distillery in Speyside to meet growing global demand for its single malt whisky. The architectural plans for the multi-million pound expansion have been designed to sympathetically evolve the distillery capacity whilst maintaining the current look and feel of the site as it supports the long term growth of the brand.

JANUARY 2016 | SLR

Inside Business

Opinion | Geoff Ogle

WRITING A RECIPE FOR A HEALTHIER SCOTLAND With two out of every three Scots overweight or obese Food Standards Scotland has made recommendations to the Government that would see drastic changes to the national diet in an attempt to improve our diet, something c-stores should be monitoring very closely. BY GEOFF OGLE, CHIEF EXECUTIVE, FOOD STANDARDS SCOTLAND

t’s a shocking but nevertheless unsurprising fact that two out of every three of us are either overweight or obese. The issue of poor diet in Scotland is unfortunately deep rooted with negligible change for the last fifteen years. Food Standards Scotland (FSS) was established on 1st April 2015 and we were set up to improve the extent to which the public have diets which are conducive to good health. It was a key concern during the Parliamentary debates and perhaps explains the reason we have a statutory obligation on diet. Our latest situation report, The Scottish Diet: It Needs To Change, published in December 2015, highlights Scottish dietary data and health statistics which recognise collaborative effort is paramount to improving the health and prosperity of our nation.

SLR | JANUARY 2016

Most of the western world is eating too much of the wrong things and we’re no exception to overindulgence. As a nation, our diet is high in fat, sugar and calories and too low in fibre, fruit and vegetables and other healthy foods like oil-rich fish. The poor Scottish diet is making us sick and it continues to cause a number of cancers, contributes to heart disease and stroke, high blood pressure, tooth decay and type 2 diabetes. One key problem is that too much of what we consume is made up of discretionary foods such as biscuits, cakes, savoury snacks and sugary drinks. These consumables are considered discretionary because they’re not necessary as part of a healthy balanced diet with little, if any, nutritional value. The health issue prevails when these ‘treats’

spill into and/or become part of our daily diet. Treats are not an issue but our problem is we are having too many treats. What can consumers do? Reducing intakes of discretionary foods and drinks by half would be a major step forward as would using the Eatwell Everyday recommendations. Reducing intakes by half would be a step in the right direction towards reducing energy and sugar intakes. Replacing some discretionary foods with additional fruit and vegetables would also improve the balance of our diet and move the nation towards meeting the dietary goals. Improvement is not solely down to individuals though. Promotion of discretionary food and drink is a real cause for concern. We know that discretionary foods are more frequently sold on promotion than fruit, vegetables, oil-rich fish, starchy carbohydrates and bread. Data also shows that when we buy food and drink away from home – from cafés, restaurants, takeaways and so on – we find it difficult to select healthy options and tend to choose more discretionary items. It’s good to know that in a recent survey conducted by FSS, over half of Scottish consumers would like to cut back on the amount of discretionary foods that they eat. But the same survey also told us that a lot of our diet is a habit, for example eating chocolate while watching TV. We all recognise the problem but the fact that around three quarters of adults in Scotland say their diet is healthy while at the same time the majority – two thirds – are either overweight or obese highlights we need to change our habits. Habits are hard to break but it is what we need to do and shifting our mind set, reducing discretionary foods and increasing intake of fruit, vegetables and fibre is how we can become a healthier nation. www.slrmag.co.uk

Inside Business

WIN new-look Rockstar original AG Barr has team up with SLR, offering retailers the chance to win eight cases of Rockstar Original, which has been relaunched with a packaging revamp and improved taste. Rockstar’s improved Original product is expected to add value to the £105m Scottish energy drinks category, according to the company. Adrian Troy, Head of Marketing for AG Barr, said the new design will “draw consumers’ attention to the energy fixture” and he expects demand to be high. “The new can also references that Rockstar Original has a new, superior taste which will drive trial.” The reformulated Rockstar product out-performed competitor Original flavoured products in independent taste tests with more shoppers saying they would buy it. “Energy shoppers love to try new products and Rockstar has a proven history of delivering great flavours,” Troy added. “With its new eye-catching packaging driving footfall and the reformulated taste delivering repeat purchases, retailers should stock up to prepare for the surge in demand.” Three retailers will each win eight cases of Rockstar Original, price marked at 99p. To enter, please complete your details below and send to Rockstar Competition, SLR, Waterloo Chambers, 19 Waterloo St Glasgow, G2 6AY, or email eotoole@55north.com

THE CLOSING DATE FOR ENTRIES IS

JANUARY 31, 2016 www.slrmag.co.uk

Ts&Cs: This competition is only open to readers of SLR. Only one entry per store is permitted. Entries received after the closing date will not be considered. The prize is not transferable and the judges’ decision is final.

Name: Company/store name: Address:

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JANUARY 2016 | SLR

Inside Business

Market Research | Nutrition

CALLS FOR CHANGE TO SCOTTISH DIET

The Food Standards Scotland (FSS) Board has recommended that the country’s Dietary Goals should be updated to reflect the recent recommendations from the Scientific Advisory Committee on Nutrition (SACN) on carbohydrate and health, but what does all that actually mean? BY KEVIN SCOTT

ven if you coat your morning porridge with shaved kale, and wash it down with a wheatgrass shot, you’ll be aware that you’re in the minority, that Scotland has some long-term issues with its collective diet. The Government, and seemingly countless agencies, are forever making recommendations on what we should eat, how we should eat it, and how it will benefit us. Ultimately, c-stores exist to provide shoppers with what they want, not what the Government thinks they need, but there must be a willingness from stores to adapt their offering to encourage healthier choices, and so when the board of Food Standards Scotland makes fresh recommendations to the Government, it’s worth knowing what they could mean for stores. The FSS wants to achieve three main goals: Q to reduce sugar to 5% of total energy Q to increase dietary fibre intake to 30g per day Q to maintain total carbohydrate at 50% of total energy with no more than 5% total energy from sugar. It’s all fairly complex stuff, and there won’t be too many Scots with calculators at the ready every time they snaffle a piece of chocolate. However, achieving these targets will require Government to put pressure on grocery outlets. Indeed, the Scottish Retail Consortium responded by pointing out that major food retailers have led the food industry in helping consumers to make healthier choices through a wide range of initiatives including the rollout of front of pack nutrition labelling scheme, working on reformulation to produce nutritionally improved food and using new media to directly engage the consumer. In its Diet & Nutrition paper, published ahead of the Holyrood election, the SRC offers advice on what retailers need to do to help change the nation’s health for the better. 24

SLR | JANUARY 2016

And change is required. The numbers speak for themselves. 65% of the Scottish population are either overweight or obese, but three-quarters (77%) of Scots believe they have a healthy or very healthy diet. It is estimated that around half a million people in Scotland are at risk of developing type 2 diabetes. Most damning, the FSS says the Scottish diet is too high in calories, fats, sugars and salt, and too low in fibre, fruit and vegetables, and little or no progress has been made towards meeting the Scottish Dietary Goals over the last 15 years. Ross Finnie, Chair, Food Standards Scotland says: “The Scottish diet is not improving and the problem of diet-related ill-health is now spanning the generations.” With a major push towards fresh food, convenience stores are helping people make healthier choices. C-stores however are home to what the FSS calls ‘discretionary food and drink’ – those products deemed to be high in calories and with little nutritional value. According to the FSS, 20% off all the calories and fat we eat come from discretionary foods along with 50% of the sugar. Products labelled as ‘discretionary’ include confectionery, cakes, biscuits and savoury snacks.

One recommendation from FSS is to reduce the number of these products on promotion. The paper says that discretionary foods are more frequently sold on promotion than fruit, veg, oil-rich fish, starchy carbs and bread. The balance of promotions, it says, needs to change. Cutting back on discretionary foods and drinks is key, says the report. As a nation, Scotland needs to reduce by half the number of sugary drinks consumed, says the report. “Switching from sugary drinks to water or sugar-free alternatives for even part of the time could help cut calorie and sugar intake quickly and easily,” says the report. “Replacing some discretionary foods with additional fruit and veg would also improve the balance of our diet.” In its conclusion, the report says that changing current habits is a huge challenge. “A slimmer, healthier Scotland is something worth aiming for,” it says. It’s difficult to disagree with that sentiment; the question for convenience store owners is how much influence this report will have on the Scottish Government, and what this could mean for their ability to sell products in demand from their customers.

65%

of Scotls are obese or overweight

50% of sugar consumed comes from discretionary foods

3.4

current daily portions of fruit & veg

www.slrmag.co.uk

#illicittobacco | What’s Trending?

Inside Business

WHAT’S TRENDING?

#illicittobacco

Following TMA’s Anti-Illicit Trade Poll Scotland Report 2015 and Imperial Tobacco’s Suspect it? Report it! anti-illicit trade campaign, we asked Scotland’s retailers about illicit trade in their area, who they would report it to and, most importantly, the effect illicit trade has on the wider industry. Chris McCallum Spar retailer I am not aware of any illicit products being sold in the area at the moment but my old store in Ayr was in a rougher area and I was aware of illicit products being sold there. There’s certainly a wide issue that exists though. If I knew something was going on I would probably report it to Trading Standards because it is convenient, it’s easy to report information to them and they know how to tackle it. I would say that the illicit trade of tobacco is a massive threat to the industry. We don’t make a lot of money from cigarettes but they are a major footfall driver so illicit trading would obviously affect this in a big way.

Next month

David Mitchell KeyStore Broadloan I can’t say I have come across any illicit trade products being sold in the area where my shop is, in Renfrew. If I was aware of anything going on though, there is no doubt that I would report it because it is important that illicit trading is stamped out. We would probably inform the tobacco focus group that contacts us regularly. I don’t know if I have the authority to say whether the illicit trade is a big threat because we don’t have a problem but it is prominent in some areas, which undermines the effectiveness of taxation and causes other problems too.

Brian McCaughey Londis Inveraray Since we’re located in a rural area, we don’t have problems with the illicit trade of tobacco and if there was something going on, everyone would know about it since the shop is in a fairly tightknit community. However, if there was a problem I would definitely report it, probably to the police because it needs to be reported in order for the problem to be tackled. Whether the illicit trade of tobacco is a threat to the c-store and tobacco industry is a hard one for me to answer because it doesn’t affect us on an individual basis however, if you take the bigger picture into account, I can imaginethat it is a massive threat.

Chris Gallacher Scotfresh We don’t have any illicit trading problems here but I imagine it is a big issue in other areas. Trading Standards seems like the most obvious place to go with these issues so I would definitely report it to them. While I personally don’t have much experience with the trade of illicit tobacco, I do consider it to be a big problem in the industry. However, there is an increase in the amount of help out there for retailers, such as Imperial Tobacco’s anti-illicit trade campaign, to combat the threat that illicit tobacco poses to local communities and businesses.

#shoppinglists If you were to change one thing about your store, what would it be? email eotoole@55north.com

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JANUARY 2016 | SLR

Inside Business

Profile | Scottish Grocers’ Federation

WHAT A DIFFERENCE A YEAR MAKES

2015 was a transformational year for the Scottish Grocers’ Federation under the dynamic duo of President Abdul Majid and Chief Executive Pete Cheema. As 2016 gets underway, SLR gets the lowdown on a remarkable year for the Scottish local retailing industry’s lead body. BY ANTONY BEGLEY

or an organisation only a couple of years from its 100th birthday, 2015 was always going to be an important year for the Scottish Grocers’ Federation. The year began with much upheaval and a new management team installed by President Abdul Majid. That team, headed up by Pete Cheema, was set the not insignificant challenge of revitalising the Federation, putting it back on an even financial keel and strengthening the bonds between the SGF and its many stakeholders including retailers, wholesaler and suppliers. Majid explains: “There’s no doubt that the decision to instigate an overhaul of the SGF was one of the toughest decisions I’ve ever had to take, but I was absolutely convinced – and remain so to this day – that the Federation had lost its way to a certain extent, and wasn’t representing the independent retail sector in the way retailers needed it to.” What the Federation needed, says Majid, was a plan – and that’s what incoming Chief Executive Pete Cheema was charged with delivering. And deliver he did, building what quickly became his ‘CLAN’ strategy, a strategy that both Cheema and Majid believed captured the essence of what SGF should be delivering

‘CLAN’ FOCUS At the beginning of 2015 Pete Cheema publicly set out a four-pronged ‘CLAN’ strategy for the SGF that he believed would set the Federation on the path to becoming a more powerful force for the Scottish trade than ever before: 1. Communication 2. Lobbying 3. Advice 4. Networking

“I am confident the Federation is building a solid platform that we can all build on towards our centenary year and beyond.” ABDUL MAJID, PRESIDENT

SLR | JANUARY 2016

www.slrmag.co.uk

Inside Business

Scottish Grocers’ Federation | Profile

2015: A FEW HIGHLIGHTS HOLYROOD EXHIBITION January: Supported by SLR, SGF started 2015 with a bang by taking its message direct to Holyrood with a purpose-built exhibition within the Scottish Parliament to push the trade’s key messages to those making the decisions.

ANNUAL GOLF DAY August: The best attended and most successful golf day in the Federation’s history saw retailers, wholesalers and suppliers descend on a wet and windy but thoroughly spectacular St Andrews to battle it out around The Duke’s Course.

STUDY TOUR September: In an innovative twist on the traditional SGF Study Tour, a large gathering of some of the leading lights of the industry visited Musselburgh in ‘undercover’ mode to check out the town’s many discounters and learn from the fastest growing sector in grocery.

ANNUAL CONFERENCE October: Over 100 independent retailers attended a spectacular Conference at RBS Gogarburn and Dalmahoy Hotel and Country Club, completely free of charge, to hear a stellar line up of speakers, enjoy an extensive supplier exhibition and attend a series of hugely well-received breakout sessions.

for its Members and stakeholders: better Communications across the board, enhanced Lobbying at all levels on behalf of Members, more comprehensive and frequent Advice and improved quality Networking opportunities. So, as we approach the end of Cheema’s first year of tenure, what are the scores on the doors? “There’s absolutely no doubt that 2015 was a tough and challenging year for the Scottish Grocers’ Federation,” says Cheema, “but there’s also no doubt how far the Federation has come in the last 12 months. We set out some very clear aims in early 2015 and I believe we’ve delivered against each and every one of those aims – and that’s a huge credit to the entire SGF team who have worked tirelessly on behalf of Scotland’s retailers.” A headstrong and tireless activist himself, Cheema’s get-it-done approach belies his many years as a retailer on the shopfloor and may not have met with universal approval, but there’s very little doubting the fact that 2015 has indeed witnessed the biggest shake up of the Federation in a generation. On paper, 2015 has been little short of a spectacular success for an organisation that had, for historic and complex reasons, been losing momentum and support in many areas of the trade. Membership among suppliers is up 50% in the last year, something Cheema feels is vital to a strong SGF; the annual Conference was a huge success; the volume and quality of publications produced by the Federation is at an all time high; the annual SGF Golf Day was the best attended ever; and the annual Study Tour was arguably the most successful and innovative to date.

ONWARDS, ONWARDS “The past is the past,” says Cheema. “All I can comment on is the last year, the challenges I was handed by the President, and how I feel we as a Federation have performed – and I can hand on heart say that I firmly believe that while we haven’t gotten everything right, we’ve had a bloody good go at it, we’ve made some amazing progress and no matter which way you look at it, the Federation is in far better shape than it was a year ago. “There are lots of indicators you can look at to judge progress and I welcome more engagement from all of our stakeholders, but on the face of it we’ve done a great job of making the SGF relevant again for a lot of people,” says Cheema. “Abdul was adamant that we put retailers front and centre once again but to do that we need the support of the wider industry. Our suppliers are vital to us and their support means that we were able to do things like invite every independent retailer to our Conference absolutely free of charge, s

www.slrmag.co.uk

JANUARY 2016 | SLR

Inside Business

Profile | Scottish Grocers’ Federation

“Supplier support means that we were able to do things like invite every independent retailer to our Conference absolutely free of charge, the first time that’s ever happened.” PETE CHEEMA, CHIEF EXECUTIVE

the first time that’s ever happened.” While supplier Membership has risen by 50%, Cheema still sees plenty of room for more suppliers to get involved and believes that the increased engagement is indicative of the importance of the independent channel to the wider industry. He says: “We always need more suppliers on board, but the growth in supplier Membership demonstrates the appetite suppliers have for working closer with independent retailers when the right frameworks and opportunities are in place. And it’s SGF’s job to put those frameworks and opportunities in place.” But it’s not all downhill from here, admits Cheema. The hard work is only just beginning. “I and my team have been working at 110mph to get everything done over the last year but we’re probably only 80% of the way towards where we need to be,” he says. A quick look at the 2016 SGF networking calendar tells its own story. With SGF events taking place literally every month in 2016 there are more opportunities than ever for retailers, wholesalers, suppliers and influencers to network and strengthen relationships.

LOBBYING STEP CHANGE “Our political engagement has also been moved up a gear or two now,” he comments. “We’ve already secured First Minister Nicola Sturgeon as a speaker at next year’s Conference, which shows the regard in which SGF is now held by the Scottish Government. Our relationships with all of the political parties in Scotland are stronger than ever and our voice is being heard – and listened to – at the very highest levels.” But it’s not only in Holyrood that SGF is making its mark these days. Prime Minister David Cameron’s office formally contacted Cheema to propose Lord Dunlop as a speaker for the forthcoming SGF Success in Scotland Summit in March, a reflection of the Federation’s standing in Westminster too. Cheema also rhymes off a raft of new carefully researched publications SGF is now or will soon be providing for retailers: The Crime and Safer Business Guide, The Minimum Standards Charter for InStore Security Guide, The Licensing & Age Restricted Products Guide and an E-cigarettes Retailers Guide to New Legislation. 28

SLR | JANUARY 2016

Several of these publications are being provided in innovative ‘e-learning’ style formats as the Federation embraces the digital age and makes it as easy and convenient as possible for independent retailers to access the business-critical advice and information they need to run responsible, profitable businesses. “These aren’t small issues,” says Cheema. “For the Federation to be as effective as it can be on behalf of its Members we need to put a lot of different pieces of the jigsaw together. We can’t do all of that overnight, but we have a vision and we have a strategy for achieving that vision and we are making very clear progress towards our goals.” The reality remains that for some in the Scottish trade, the jury is still out on just how effective the new management team is

at Federation House, but that’s something Cheema and Majid are aware of and are learning to embrace. “Listen,” says Majid. “We know big changes have happened and they’ve had to happen quickly, and we fully appreciate that major change can be difficult for many, but I think the achievements of the past year speak for themselves and I’m confident the Federation is building a solid platform we can all build on towards our centenary year and beyond.” This will continue to require co-operation and support from the entire trade in Scotland, as Cheema concludes: “We are working very hard to demonstrate to all of our stakeholders that we are firmly moving in the right direction – and I urge everyone to get behind SGF and back your Federation, in every way you can. We are truly stronger together.”

SGF EVENTS 2016 A packed calendar of activity for 2016, all completely free to retailers, has already been scheduled, including:

FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER NOVEMBER

Tuesday 16th (am) Tuesday 16th Tuesday 16th (pm)

Silver/Bronze Members’ Club Meeting SGF/SBRC Crime Seminar Gold Members’ Club Meeting & Dinner

Thursday 17th Thursday 17th (evening)

Success in Scotland Summit Networking Event

Thursday 7th

Hustings Event

Tuesday 10th (1-5.00pm)

SGF Retailers Event – Impact of Regulations

Wednesday 15th Wednesday 15th July

Gold Members’ Club Meeting SGF Networking Event – An Audience with Politicians from the recent elections Cricket Match

Wednesday 24th Wednesday 24th (afternoon) Wednesday 31st

SGF AGMs SGF Silver/Bronze Club Meeting SGF Golf Outing

Thursday 8th Friday 30th Sept – Sunday 2nd October

SGF Study Tour SGF Annual Conference

Tuesday 15th (afternoon) Thursday 24th

SGF Gold Members’ Club Meeting SGF Networking Event

www.slrmag.co.uk

Markadis

Advertorial

MII-PROMO BRINGING A NEW YEAR BOOST TO SCOTTISH RETAILERS

ate last year Scottish Local Retailer Magazine hosted a roundtable dinner to talk about a hotly discussed topic: how can local independent retailers drive customer sales and loyalty in the same way as the big retail brands do. With some of Scotland’s most important independent retail groups round the table, it was debated that what was needed was a system that offered “loyalty creating” technology that is suitable to every size of retailer and at a fraction of the cost. At this point Adrian Cannon, MD of Markadis which has launched such a solution in October 2015 interjected, “Without a system like Mii-Promo, customers that shop in independent retailers are just faceless people, but they could be made a shop owner’s best customer.” Technology has now come full circle and it is now the independent retailer that can benefit from powerful retail data solutions, as the cost to install and use has been dramatically reduced. Increased understanding of shopping trends, brand loyalty and spending patterns are now available on a micro level to the independent retailer without requiring the investment that global brands can muster. In autumn 2015, Markadis launched MiiPromo, a software package that feeds from a retailer’s existing EPoS terminal and allows even the smallest retailer to create and tailor specific data requirements to reclaim local knowledge and the personal touch that was once the bedrock of retail. www.slrmag.co.uk

Cannon continued, “Mii-Promo allows shop owners to use card transaction data to build up a profile of customers so you can carry out targeted marketing campaigns. At its core Markadis has created a product that puts marketing power to drive sales and loyalty back in the hands of independent retailers, all

at a fraction of the normal cost involved,” The sales data is gathered from customers’ credit or debit cards through the terminal and goes to a secure server that can be asked to feed back information on times of purchases, frequency of purchases and other relevant retail trends – all within the latest data protection legislation. Markadis Mii-Promo software allows retailers to monitor and track shopping activity, reward loyalty and facilitates targeted marketing spending based on real time data. All the data feeds back into the system, and it allows personalised direct marketing to individuals registered on the Mii-Promo system based on their shopping and spending patterns. The return on investment of this new initiative is measured in months, not years, and Markadis can improve marketing efficiency to an even higher level by giving every Mii-Promo customer access to a dedicated marketing guru. In conclusion Cannon stated, “There is no escaping the fact that every retailer has to have a payment terminal, so make it earn its keep! Use powerful but simple technology and expertise to attract new customers and grow your sales.”

JANUARY 2016 | SLR

Inside Business

SLR Rewards | Spirits

SPIRITS RETAILER OF THE YEAR

Recently, there has been a strong focus on innovation in spirits. Shane Goodbody and his team at The Good Spirits Company in Glasgow is dedicated to providing a wide range of spirits with an emphasis on value for money as opposed to promotions and deals. The Glenturret Distillery tour gave our winners the chance to see whisky production first hand – and in style.

dedicated off-licence, the Good Spirits Company is a joy to visit, which probably explains why its clientele is so fiercely loyal. Boasting one of the most expansive and interesting ranges of spirits anywhere in the UK, from whisky to rum and everything in between, GSC highlights how a strong USP can make a business. With oak shelving, vinyl LP background music, and staff who love their jobs, The Good Spirits Company is an inspirational store that values quality over quantity and premium over promo. The store is not a traditional convenience store, but any c-store owner looking at how to execute a perfect spirits offering should consider a visit to Glasgow. Not only is the range exceptional, but what marks the store out is the level of knowledge among the staff – by knowing the products they sell inside out, they are able to offer customers detailed advice and recommendations, which makes upselling far easier, and 30

SLR | JANUARY 2016

ensures repeat custom. For GSC’s prize, Maxxium sent Shane and the team on a trip to the Famous Grouse Experience at Glenturret Distillery. “The trip was an excellent experience and we were looked after very well”, Shane says. Shane adds that while the store’s knowledge of whisky production in general is pretty thorough, they were still able to discover more about whisky production methods at this particular distillery, meaning that their bank of knowledge has increased even further – while surrounded by all manner of exceptional whisky. And it doesn’t really get much better than that. Shane says: “We learned slightly more about the distillery and the intricacies of their practice, and that’s always useful. It’s important to know as much as you can about what you’re selling.” For retailers who want to improve their spirit sales, Shane advises “knowing your product and paying attention to what’s available on the market at the moment.” www.slrmag.co.uk

Newstrade | Rewards

Inside Business

OMAR GETS 50 CENT FOR HIS NEWSTRADE FIXTURE

Newspapers remain one of the important footfall drivers in c-stores, and winning this category for a second time, Omar Nasir’s Spar in Leven Street, Motherwell, has shown that time and effort leads to continuous improvement, and the chance to see one of the biggest music acts in the world.

TOP TIPS FOR NEWSTRADE SUCCESS

he news and magazines category is one that is constantly changing and retailers may be forgiven for underestimating just how valuable newspapers are to a store. As this year’s Newstrade Retailer of the Year has proven, no retailer should be giving up on print just yet. Omar Nasir is one of the most enthusiastic retailers in the business, and this can be seen in his dedication to his store’s newstrade offering. With newstrade customers visiting the store four or five times a week, Omar knows it is worth focusing on keeping hold of those customers. It is a tricky category to manage with the transfer of newspapers and magazines online. However, it can be done well if retailers give shoppers new reasons to come to their stores by looking at new ways of increasing www.slrmag.co.uk

sales, such as home delivery services. As well as growing its already large home news delivery network, Omar’s store has invested heavily in store over the last 12 months in an attempt to revitalise the news category. A new magazine rack has been added that makes the range look more appealing, while an updated news rack sits beside it, by the front door, meaning that customers don’t need to work hard to find a newspaper when entering the store. The signage is neat and tidy and the fixtures themselves are clearly checked regularly. Omar’s prize was a VIP night at the SSE Hydro last month to see global rap superstar 50 Cent. Omar was treated to News UK’s private box and he said it was an unforgettable evening. “It was a fantastic night,”he says. “It’s great when all your hard work pays off and you get to unwind in style!”

Omar Nasir is one of the best retailers out there when it comes to newstrade, and here are some of the reasons why he was named Newstrade Retailer of the Year. 1. Full on fixture – ensuring the fixture is well-stocked and up to date, whether that’s daily newspapers or monthly magazines. 2. Get it standing out – Omar has invested in a fantastic magazine rack that has made browsing all the more appealing for his shoppers. 3. Home News Delivery – many see it as a chore, but Omar’s HND service goes from strength to strength, ensuring that his customers remain loyal to his store.

JANUARY 2016 | SLR

Inside Business

Woodlands Local | Rewards Club

WOODLANDSlocal

IT’S ALL ABOUT RECRUITMENT

Bringing the Woodlands Local Rewards Club to life was a serious technical challenge but thanks to the great work of our partners Velocity Worldwide and Retail Solutions, the system is now deglitched and running smoothly – and from now on it’s all about recruiting members. BY ANTONY BEGLEY

he hard work is almost over on the creation of the Woodlands Local Rewards Club and we are now in the next phase of the project: an all-handson-deck drive to recruit members. The true value of the new solution will only become apparent once we have a significant number of members, generating data every time they use their key fobs. When that happens we will begin to get a new, unique and immensely powerful insight into our customers, something we hope will help us build even stronger relationships with them as we gain far greater understanding of what they like, what they don’t like and what motivates their purchases.

BIG BATTLE We always knew that the challenge of bringing to life an entirely new form of loyalty club in Woodlands Club would be a formidable one, but we love a challenge! The complexity comes not from the simple process of setting up a loyalty club: our existing EPoS system already has the functionality built in and can be activated with the click of a mouse. Rather, the complexity comes from ensuring full, seamless integration between our EPoS system, provided by Retail Solutions, and the Darius shopper engagement solution provided by our partners Velocity Worldwide. The final piece of the jigsaw – the building of a new API by Retail Solutions – was completed only in the week before SLR went to press. An API, or Application Program Interface to give it its Sunday name, is basically a bit of software that sends the data from every key fob transaction to Darius in real time. Think of the Darius shopper engagement solution as the ‘brain’ behind the system. One of the beauties of that brain is its ability to add all this straight transactional data – what the customer bought, when they bought it – to a whole host of other data on that individual

SLR | JANUARY 2016

FOOD FOR THOUGHT With a change in the laws kicking in on the first day of this year that affect all businesses throwing out more than 5kg of food waste a week, Woodlands Local got prepared in good time by getting its house in order in November. We now have an array of new bins to cover all sorts of recycling and food waste purposes. It’s another challenge for our staff but it’s something we are fully behind as we push to ensure the store operates as sustainably as possible. We already have ultra low emissions lighting and refrigeration and we recycle all cardboard via JW Filshill, so it’s nice to add the proper handling of food waste to our skillset! Up until 1st January, the previous threshold stood at 50kg a week, meaning that many retailers are poised to be caught up in the new legislation, so if it doubt, make sure you seek advice on whether your wastage is below the 5kg limit. The Scottish Environmental Protection Agency can hit offenders with an on-the-spot fine of £300, while repeat offenders face penalties of up to £10,000. Zero Waste Scotland, the organisation setup to deliver the Scottish Government’s Zero Waste Plan, estimates that businesses could save £192m a year by reducing their food waste.

customer’s profile. So, for instance, we can add his or her date of birth, the football team they support, the name of their children. In fact, if we can dream it up we can add it to the customer’s individual profile. All of this data is then analysed and can be used to drive genuinely personalised communications to each customer, via text, email or Facebook – depending upon how the customer would prefer we contact them. So we can go fairly simple: send a special offer to, for instance, all women in the FK1 postcode area. Or we could go supersegmented by sending an offer to all males between the ages of 25 and 35 that support Falkirk FC and have ever bought a product from Coca-Cola, for instance. Imagine the possibilities!

RECRUITMENT DRIVE At the moment however, these remain only possibilities. We are around the 50 members mark and while the data being generated is useful and exciting, we need far more www.slrmag.co.uk

Rewards Club | Woodlands Local

Inside Business

Setting up the Woodlands Local Club was a complex project involving a lot of collaboration between Velocity Worldwide, the software providers, and Retail Solutions, our EPoS providers – but it’s now working exceptionally well and we’re starting see the number of members mount up rapidly. The solution is already generating lots of interest and discussion on Facebook and we’re seeing the key fobs used regularly in-store every day. The new hot food section is up and running and within the first week was already generating average incremental sales of around 35-40 units a day.

members for the system to become genuinely powerful. So the focus for the next couple of months will be driving recruitment. So far we’ve tried a number of strategies, including: Q free Reward just for signing up (4 pack of Coke, 4 pack of Double Deckers or 6 pack of Walkers) Q ‘Free Lunch Friday’ where we gave members the chance to sample our new hot food range from Cuisine de France free of charge (see next page for more detail) Q a member’s draw where those signing up before 17th December were entered into a draw to win one of five £100 vouchers to spend in the shop Q 5% December where members received a 5% discount on every purchase in December (excluding tobacco, alcohol, Lottery and PayPoint). All of this was communicated through all of the channels we have available to us:

Q The Woodlands Local website Q Facebook posts Q Promoted Facebook posts Q Twitter Q Exterior posters Q Interior posters Q Staff Q Leaflets It would be wrong to say that it hasn’t been a challenging process for all those involved because it has been very tough indeed, mainly because this is the first time it has ever been done in this way and we’re learning as we go – but our hats go off to Velocity Worldwide and Retail Solutions for the amount of effort and energy they have committed to getting the Woodlands Local Rewards Club off the ground. We have laid the foundations for what we believe is a truly ground-breaking solution that we expect to see adopted in future by many more stores.

CROSS-CATEGORY POS FROM NEWS UK News UK has teamed up with Mondelez and Danone UK to launch a new cross-category merchandising unit which features copies of The Scottish Sun, Cadbury’s Twirls and Volvic mineral waters. A new unit was dropped off in Woodlands Local last month and sits neatly beside the hot food counter, tempting customers into impulse purchases as they wait on their food to be prepared and served. The unit has only been in-store for a week or so, but we’ll report back on sales in the next issue of SLR. Anything that encourages impulse sales is welcomed.

www.slrmag.co.uk

WHAT’S

HOT

The highs...and the lows of life at Woodlands Local

WHAT’S

NOT The flat roof problems just keep on coming. After last month’s torrential rain big sections of the roof collapsed once more, taking out two of our LED light fittings and a lot of ceiling panels. The roof was completely redone less than a year ago. Staffing issues persist with another couple of new staff coming on board and subsequently being dismissed within a month of starting with us. The core team is now very solid but finding reliable new members remains a challenge – one that we’re determined to overcome this year.

JANUARY 2016 | SLR

WOODLANDSlocal

Inside Business

Woodlands Local | Free Lunch Friday

NO SUCH THING AS A FREE LUNCH? THINK AGAIN!

To encourage customers to sign up to the Woodlands Local Rewards Club and give us a chance to sample our new hot food range from Cuisine de France, last month saw Free Lunch Friday for Rewards Club members. BY ANTONY BEGLEY

illing two birds with one stone last month, we decided to run a sampling day for our newly installed Cuisine de France hot food range and make it absolutely free to anyone who was already a member of the Woodlands Local Rewards Club (WLRC), or who was happy to sign up on the day. We promoted the event heavily before the event on the Woodlands Local Facebook page (which weâ&#x20AC;&#x2122;re planning to make much more of in 2016). Our recently created Twitter feed also pushed out the news. We also displayed posters throughout the shop explaining directly to shoppers in-store how they could get their hands on a free lunch. Finally, there were also personalised messages for existing WLRC members. The results were fantastic with lots of new members signing up beforehand and another

SLR | JANUARY 2016

www.slrmag.co.uk

Free Lunch Friday | Woodlands Local

dozen signing up on the day. To boost recruitment, we had an iPad set up in the store to allow customers to sign up there and then in under 30 seconds before collecting their free lunch. Cuisine de France was excellent in its support for the event, sending along Development Chef Gordon Downie to give Melissa and our Foodservice team all the help they needed to ensure all of the products were cooked and presented to perfection. Key Account Manager Anne-Marie Canale was also in attendance to help hand out lunch and assist with a few last minute issues to ensure the day went to plan. While we will be introducing a broad savoury and sweet range, we settled on three favourites for the free lunch giveaway: Q Steak Slice Q Cheese & Onion Slice Q Sausage Roll. Cuisine de France also threw in a few gingerbread reindeer

to hand out to customers and brighten up their Friday lunchtime. In total we gave away around 70 hot food items. Not a bad lunchtime’s work. The feedback we received from customers on the products was entirely positive, as was the feedback from our team at the store who also ‘kindly’ agreed to sample the products and tell us what they thought. The product quality is exceptional, the packaging is practical and attractive and the POS is bright and welcoming. Needless to say we have high hopes for the wider range which we’ve already started to introduce, and those hopes are already materialising into sales – with the new counter adding incremental daily unit sales of 35-40 within its first week! It will take a few months to fully get to grips with how many lines we should stock, how many of each line we’ll need each weekday and so on, but the initial signs are positive.

Inside Business

Cuisine de France’s Development Chef Gordon Downie was on hand to keep products coming out the oven.

One Rewards Club member picks a steak slice on Free Lunch Friday.

www.slrmag.co.uk

JANUARY 2016 | SLR

Hotlines

Product News & Media Watch

Mars sweetens its PMP offer Mars Confectionery Mars Chocolate is extending its portfolio of PMPs to include Mars, Snickers, Twix, Bounty, Maltesers and Maltesers singles – all of which are available for an rrp of 50p now. The new PMPs will sit alongside Mars’ standard range of chocolate confectionery. To support the launch, there will be POS and display solutions including aisle flags and shelf barkers.

Nutella loves Pancake Day Nutella’s ‘Pancakes Love Nutella’ campaign will be returning to small screens from the New Year. The campaign will run until Pancake Day on Tuesday 9th February 2016. With sales of Nutella growing by 12.2% last Pancake Day, Ferrero says the brand is perfectly placed to help retailers capture incremental sales with its latest media investment. Nutella is aiming to encourage brand affinity and awareness amongst new and existing consumers by including competitions and prizes across its social pages. Interactive materials such as downloadable bunting and invitations will drive visibility leading up to Pancake Day, encouraging new shoppers to the occasion. Levi Boorer, Customer Development Director, Ferrero, commented: “Last year, Nutella attracted nearly half a million new households to the brand, and we’re looking forward to encouraging more people to celebrate Pancake Day this year with the return of our TV ad and new engaging social activity.” More than ever, cross-category displays are proving influential in driving occasion-based purchasing and encouraging a larger spend per shop. By displaying popular pancake toppings together, such as flour, eggs and milk, retailers can help to drive impulse purchases, by creating an impact and excitement around the occasion instore. Dual-siting also plays a significant role in creating additional stand-out in-store and encouraging incremental sales. Retailers should consider having a signposted hot-spot for Pancake Day as well as an off-shelf display.

Cadbury Creme Egg biscuits PMP Mondel z International Burton’s Biscuits has its sights firmly set on Easter, with news that Cadbury Creme Egg Biscuits is set to return with a new £1 PMP in 2016. Cadbury Creme Egg Biscuits will be available in the traditional six-pack format (rrp £1), but will be joined by a new £1 PMP six-pack, available from 1st January 2016 until Easter Monday (28th March). Both SKUs are available in shelf-ready packaging of 12.

Fruit Shoot Hydro Multipack PMPs Britvic Soft Drinks A new PMP format has been launched across Britvic’s Fruit Shoot Hydro range. The new pack consists of 12 x 350ml bottles, with each individual bottle pricemarked at 79p, and will be available in Blackcurrant and Orange & Pineapple variants from this month. The launch is supported with a POS package and launch promotions.

SLR | JANUARY 2016

New look Whiskas Dry Whiskas A new recipe and complete pack redesign is set to be rolled out across Whiska’s range of dry cat food. Available in Chicken and Tuna flavours, the product has been reformulated to provide new recipes that include the addition of new ‘Pockets’ – crunchy parcels with a soft and creamy filling. The range will be supported by a £10m investment.

Laundry powder relaunch Best-in The month sees best-in relaunch its range of laundry powders with new packaging, new fragrances and improved cleaning agents to offer an alternative to leading brands with a £1 price mark to target cash conscious shoppers. The new 13 wash pack, previously sold at £1.39, still offers retailers a POR of 29.6% when bought at the promotional price of £4.69 throughout January.

Duo Tubs Haribo Duo Tubs, which bring together Haribo’s top-selling sweet and sour sweets in one sharing format are available with Haribo Minions and Tangy Minions. Each duo tub contains two Haribo sweets in their own separate compartment, helping to cater for more than one taste. The tubs are also re-sealable and re-usable.

www.slrmag.co.uk

ENTRY DEADLINE: 26TH FEBRUARY 2016

ENTRY KIT ENTRY DEADLINE: 26TH FEBRUARY 2016

THE MOST REWARDING EVENT IN RETAIL IS BACK: IT’S TIME TO INTRODUCE THE SLR REWARDS 2016! SLR is proud to launch the 2016 SLR Rewards, the most Rewarding event in local retailing! Created in 2003 to recognising and reward innovation and excellence in Scottish convenience retailing, the Rewards have blossomed into a unique event in the UK retailing calendar. In 2015, Nisa Giacopazzi’s in Milnathort was named Scottish Local Retailer of the Year with store owner Joanna Casonato winning a trip to Las Vegas! Category winners won trips to France, Belgium and London – while a huge range of rewards included £500 Ticketmaster vouchers, VIP Concert tickets, Red Letter Days, iPads and smartwatches. 2016 will see more of the same as the SLR Rewards reinforces its position as the awards programme that truly Rewards retailers with real prizes for their hard work and dedication throughout the year. This year’s overall winner will be flown off to the US to attend NACS 2016, with a host of other rewards on offer across the 16 categories. To keep pace with changes in local retaling, three new categories are being introduced giving innovative, progressive retailers more chances to win. Welcome then, to the SLR Rewards 2016...

GENERAL INFORMATION The SLR Rewards 2016 are open to every independent and symbol convenience store in Scotland.

ENTRY DEADLINE The deadline for online and postal entries is Friday 26th February 2016.

HOW TO ENTER To be considered for entry, retailers must request or download an entry form for each category they wish to enter. A request form is included on the next page. Alternatively, entries can be submitted at www.slrawards.com

JUDGING Following this deadline, a first phase of judging will see a group of independent judges analyse all entries and supplementary photographs. They will then select three stores in each category to be shortlisted. Each of these stores will be visited by a team of judges, with an overall winner being selected following these visits. Shortlisted retailers will be revealed in the April issue of SLR and online at www.slrmag.co.uk

SUPPORTING MATERIAL In addition to submitting an entry form, each entry must be accompanied by photographic evidence. There should be no fewer than three photographs. For Category Rewards, images of the category being entered and the overall store should be included, highlighting the main fixture, and any dual-siting, point-of sale material or innovation used to drive sales. For Special Rewards, photographs should illustrate any initiatives undertaken since February 2015 pertaining to the category in question.

THE BIG NIGHT The winners will be announced at the SLR Rewards gala dinner, to be held in Glasgow on 2nd June 2016. All shortlisted retailer will be invited to attend as a guest of SLR. For further information please contact Cara Begley at cbegley@55north. com or 0141 222 5381.

ENTRY KIT

ENTRY DEADLINE: 26TH FEBRUARY 2016

2016 SLR REWARDS CATEGORIES Entry forms can be completed directly at www.slrawards.com This is the preferred entry method. Alternatively, you can request entry forms by completing this form and sending it to the address below.

Name Job Title Company Name

Company Address

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 Ecigs Retailer of the Year new Making the Most of Milk Newstrade Retailer of the Year Soft Drinks Retailer of the Year Spirits Retailer of the Year

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 new Team of the Year new

EVERY SHORTLISTED ENTRY WILL BE CONSIDERED FOR SCOTTISH LOCAL RETAILER OF THE YEAR 2016

Phone Number Email Date Signed To continue to receive regular copies of SLR please tick here

Please send completed request forms to: Freepost SLR Rewards 2016 Waterloo Chambers 19 Waterloo St Glasgow G2 6AY Alternatively, you can request entry forms by emailing cbegley@55north.com

ENTRY KIT

ENTRY DEADLINE: 26TH FEBRUARY 2016

NEW CATEGORIES Each year a number of new categories are introduced in the SLR Rewards as we respond to industry trends and seek to reward the retailers who are driving innovation and leading the evolution of the convenience sector.

ECIGS RETAILER OF THE YEAR

#THINKSMART INNOVATION

TEAM OF THE YEAR

The disruptive nature of the growth of ecigs and e-liquids has demanded the introduction of this new category. Like other category Rewards, we’re looking for evidence of excellence in your approach to managing this fast-growing category. We’d like to hear how retailers went about educating themselves in the intricacies of the category, and how they set about educating their shoppers. How did they decide how much to invest in the category, and how did they go about it? What about ranging and merchandising – where are ecigs located and why? Which ranges of eliquids, hardware and accessories do you stock? How have sales improved in the last year and how does the retailer work with suppliers to improve their learnings and their sales in the category. In summary entries should include information on: Q The retailer’s knowledge of the category Q How the retailer uses ranging and merchandising to improve sales Q The ranges of e-liquids, hardware and accessories stocked Q How you communicate the category to your customers Q How the retailer educates shoppers in the category Q Evidence of sales improvements in the category in the last year Q Plus photographs of the ecigs category

In this new reward, we’ll be looking for the store that has taken a fresh, smarter approach to any spect of their business - ideally creating a new revenue stream, but not necessarily. We’re looking for evidence of sales and footfall being generated by a non-traditional source, or of significant savings or improvements in communication or logistics through new technology. The scope of this category is only limited by your imagination. It could be something as simple as launching your own food-to-go offer, making food in your own kitchen and selling it as your own brand. It could be an in-store franchise that has made a demonstrable improvement to your business, a coffee to go machine that has transformed your morning trade. It could be the introduction of an intelligent EPoS analysis and evidence of how this has grown sales; an instore loyalty scheme; how you use technology to communicate with shoppers (whether through social media, Bluetooth or even old-fashioned emails); an online ordering system; the investment in new technology to reduce costs, such as new lighting or chillers, or even the installation of solar panels. Or it could be something completely different: a meeting area, a café, home delivery services, non-food sales, a nail bar… anything that has led to growth in the business.

There’s no I in team, as they say, which is why this year sees the introduction of a Team of the Year Award. While many stores have an outstanding individual member of staff, it is the collective team that help make local stores great. From the way the staff engage with the community both in the store and outside working hours, to the contribution they make to the business, from replenishing shelves, to helping cover sickness and holidays, coming up with a great money-saving idea or creating some fantastic in-store theatre. It is by combining the skills of each member of staff that local retailers can truly provide a great service for their shoppers. So, in this category we’re looking to reward the most engaging, positive, hard-working and dedicated team in Scottish retail. We’ll be looking for evidence of how the team has worked together to help make the store a success, from the owner to the part-time weekend staff. What makes this team stand out? What monumental achievements have they made in the last year, and how have they made their mark in the community? This category aims to give something back to the people who make the store so special, so if you’re proud of your staff and the collective effort they make to the business, then be sure to get your entry in for this category.

To be a winner in this category we need to see: Q An outline of the plan to diversify, what this plan entailed, and what the ambitions for it were Q Details of how the plan was executed Q Evidence of how it has helped grow footfall and / or sales Q Images of the innovation project in-store

Product News & Media Watch Coffee capsules Spar A range of branded coffee capsules has been launched by Spar. The range consists of Espresso Capsules Lungo, Intensivo and Ristretto. The capsules, which are compatible with Nespresso machines, are available in packs of 10, and have an rrp of £2.00. Also available as part of the New Year launch are Spar’s Cappuccino sachets and Latte Macchiato sachets (rrp £1.50).

Caramel Marshmallow Fluff Empire Bespoke Foods A new caramel version of the US spread brand Marshmallow Fluff has been launched by Empire Bespoke Foods. The Caramel Marshmallow Fluff (rrp £1.99) contains no fat, is gluten free and is also suitable for vegetarians.

Chicken Balti Pasty and Spicy Meatball Slice Ginsters

Two new limited editions— Chicken Balti Pasty and Spicy Meatball Slice— have been launched by Ginsters. Chicken Balti Pasty contains 100% British Chicken marinated in a spicy balti sauce with potato, onion and peppers wrapped in light puff pastry. The Spicy Meatball Slice contains 100% British pork and beef meatballs with onions.

£1 PMP Aloe Vera drink Grace Foods Limited edition £1 PMPs have been introduced by Grace Foods across its Original, Strawberry, Mango and Peach variants. Packs will be available from this month. The drinks are made with aloe vera, fruit juices, and gluten free.

MEDIAwatch

Hotlines



Win a trip to New York with Müller Wiseman An on-pack promotion has been launched across Müller’s two litre Black and White milk, giving consumers the chance to win a family trip to New York. Müller has teamed up with 20th Century Fox to celebrate the release of The Peanuts Movie in UK cinemas on 21st December.

Goo could be a winner! Cadbury Creme Egg is giving retailers a chance to win up to £250 in stock or Love to Shop vouchers in the lead-up to the spring season with its ‘shelfie’ competition. To enter, retailers need to upload a photo of their Gooless Cadbury Creme Egg display before 29th February on www.deliciousdisplay.co.uk.

Trebor returns to the small screen Trebor returns to TV screens on 4th January, once again encouraging consumers to stand up for their favourite mint. The campaign suggests that mint eaters fall firmly into one of two camps: Extra Strong Mints or Softmints. The ad will also introduce viewers to Trebor Softmint Lemon Mint.

Fruit & Seed Oatcakes Nairn’s As part of Nairn’s new ‘On the Go’ range, the brand has launched Fruit & Seed Oatcakes. At an rrp of £1.39, the product has been described as a hybrid between biscuit and oatcake and the ideal option for retailers wanting to provide consumers with a new, healthier snacking alternative for on-the-go snacking.

‘Round-pound’ PMP sharing bag Kinder New £1 PMPs will feature on Kinder Choco-Bons and Kinder Chocolate Mini. The launch is set to help retailers capitalise on the popularity of ‘round-pound’ deals from trusted brands. Available now, the £1 packs will be supported with a £3m media investment including TV, sampling and in-store activation.

Vimto warms up shoppers this winter Vimto is running its ‘Try Me Hot’ campaign for the second year running. The brand is introducing its limited edition pack design and in-store POS to encourage shoppers to try Vimto squash with hot water. To further raise awareness with consumers the brand is giving away 200 furry Vimtoad hot water bottles.

Fuel your way to the USA with Gulf At Gulf filling stations across the UK, customers who fill up with £25 worth of fuel between 30th November and 31st of January can win a holiday to California. Consumers should enter their transaction details online or via text. There are also multiple novelty spot prizes for entrants to win.

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

JANUARY 2016 | SLR

Feature

Fascias | Introduction

THE FUTURE OF FASCIAS 42

SLR | JANUARY 2016

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Introduction | Fascias

here’s no shortage of talk in the convenience industry of trends. Trends in categories, trends in products types, trends in shopping habits, in shopper profiles, in store types. For many retailers it’s enough work to just open the shutters and get through the working day. For many more however, there is the support and advice of a symbol group. This is one of the biggest overarching trends in convenience. Stores in Scotland may be growing, but the rate of growth among symbol stores far surpasses the overall market. Why is that? On a very simple level it is the assurance that is provided by being part of a bigger group – there’s the buying power that allows even the smallest stores to lean on buying teams with years of experience, flexing budgets that run into the billions of pounds. There’s the marketing support – more and more groups are turning to TV advertising to promote their brand. By being part of that family, a small independent retailer can see their store’s fascia on prime-time TV. Then there’s the financial support – the fund available to draw on for refits, the installation of a new fascia to brighten up the front of the shop. There’s the IT support, the help in understanding an EPoS system, in making ordering a stress free process, the delivery of stock three times a week (or more or less, depending on your preference) meaning less trips to the cash and carry and more time to make more of your business. The ‘pros’ column for retailers considering joining a symbol group is undoubtedly packed. There are now more fascias than ever before; major groups have launched different fascias for different types of stores, in different areas. There is more precise targeting that provides retailers with exactly the type of business support they

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Feature

need. This understanding that one size simply does not fit all has allowed certain groups to expedite their growth and their store numbers. And there’s a lot of competition out there. Scotland has 5,602 convenience stores, one for every 946 people in the country. Sales in convenience stores are divided, according to SGF/ACS figures, into 38.1% symbol groups, 33.6% multiple chains and co-operatives, and 17.4% non-affiliated independents. Research from IGD suggests that the decline of unaffiliated stores is actually slowing though, so are more store owners happy to retain complete independence? The market has also been shaken up by franchises. The launch of One-stop in Scotland has created an option that was never previously available, and so competition intensifies. What is clear is that there is more on offer for retailers than ever before. The other great trend in convenience retail at the moment is convenience retail itself. In the 12 months to April 2015 the convenience market generated £37.7bn in sales, in the UK. This represents a year-on-year increase of 5.1%. Convenience is set to be one of the fastest areas of growth in the grocery industry over the next five years and symbol groups would argue that for any retailer to take full advantage of this growth, the support on hand from a symbol group is a must. However, that decision lies in the hands of each retailer out there – whether they have never been part of a group, or whether they are looking to change group. Over the next few pages, some of the biggest and best fascia groups in the country explain what they have to offer. So, if you’re in the market, read on, and even if you’re not, you never know what you might discover on the next page...

JANUARY 2016 | SLR

Feature

Fascia | Advertorial

SYMBOLS OF SUCCESS

remier and Family Shopper are operated by Booker Group, the UK’s leading food & drink wholesaler, who have over 200 Booker and Makro branches throughout England, Wales, Scotland and Northern Ireland. Premier is the UK’s number one symbol group with over 3,200 stores nationwide. The group is committed to delivering more profits for retailers and a better shopping experience for consumers. Premier has delivered double digit growth for thirteen consecutive years. Premier has recently started to advertise on TV. This is a yearlong commitment to advertise Premier everyday which means over 100 million views of the advert nationally. The TV advert will include Premier’s famous Mega Deal promotions which have increased to four each promotional period. As well as this, retailers also benefit from a full promotional programme covering all categories of fresh, frozen, grocery and impulse to ensure great value for shoppers to drive footfall into stores. This market leading promotional package, along with own-label and price-mark-packs, really drives the value message to help retailers grow their business. Family Shopper is a new discount format for independent retailers that brings together the strength of symbol retailing with the great value available in the discount channel. It has been specifically developed to help independent retailers capture the growing

SLR | JANUARY 2016

sales and profits from the discount sector. The unique discount format provides retailers with everything that shoppers would expect from a convenience store including chilled, alcohol, grocery and tobacco along with services such as Lotto and Paypoint. This is then combined with the best of the discounters covering a fantastic range of £1 non-food items such as stationery, kitchen utensils and party accessories, with a broad seasonal offering and a frozen section. Providing comprehensive disciplines, all Family Shopper stores offer a simplified range that removes duplication. Also merchandising in full trays makes the format easy to operate while minimising back stock and easing cash flow. Both Premier and Family Shopper retailers can take advantage of delivery at cash & carry prices, ordering on line and having the ease and convenience of shopping at branches. This helps to maintain the exceptional availability which in turn offers better customer service. Both brands do not operate any membership or joining fees and installs the fascia and imagery free of charge. A wide range of additional services such as recycling, energy savings, free EPoS and drop shipment are also available that have been specifically created to add value and keep costs low.

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JOIN THE

WINNING TEAM “I joined Premier because of the fantastic team that supports my business. My Development Manager, Merchandisers and local Booker branch all help grow my profits!” Peter Saleem - Premier, Blyth.

FOOTFALL UP! SALES UP! PROFITS UP! Call Premier on:

01933 371246

“My customers love the range and prices. The Family Shopper format is easy to run and is growing my sales and profits.” Shahid Razzaq, Family Shopper, Blantyre, Glasgow.

UNIQUE DISCOUNT FORMAT SIMPLE TO RUN & OPERATE HIGH CASH PROFIT EXCLUSIVE DISCOUNT RANGE

Call Family Shopper on:

01933 371757

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Weâ&#x20AC;&#x2122;ll Support You Evermore! With 140 years of experience in the Scottish convenience sector, we know what it takes to run a business. And we know what support you need to make your business more profitable.

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Here’s the Filshill guarantee. We’ll support you with the best service in the market place

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In a recent independent KeyStore Customer survey this is what some of our customers said:

We’ll support you with on-time deliveries, merchandising, promotions and prices

‘With KeyStore if you have a problem they won’t forget about it. They will really try to sort out any problem you have’. KeyStore, Summerstown

We’ll support you with marketing plans to drive footfall and increase sales

‘KeyStore is a much better store than its competitors, and they are a Scottish brand’. KeyStore, Hyndland

We’ll support your local area, which will reflect well on you, helping your business

‘KeyStore take good care of you’. KeyStore, Parkhead

EST. 1875

E S T. 1 8 7 5

We’ll support you with passionate people to drive your business forward

If you want to talk to us about how we can support you to improve your business call Ian McDonald on 0141 883 7071.

EST

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- Building Your Business

Supporting your Community J.W. FIlsHIll ltD. t: 0141 883 7071 E: fIlSHIll@fIlSHIll.Co.uK W: WWW.fIlSHIll.Co.uK

Feature

Fascia | Advertorial

DELIVERING THE BEST IN SYMBOL

Despite managing its Best-one estate down to remove non-performing stores, sales in Scotland continue to grow by 17%.

estway Batleys’s managed symbol group has had an exceptional year in Scotland as the group continues to post impressive year on year double digit growth. This is made all the more remarkable as the group has been debranding non-performing stores over the past several months. As symbol director James Hall explains “Best-one is the fastest growing major symbol group in the UK but we want stores that are willing to show the same level of commitment and dedication as the group shows to them. The debranding of stores has to happen to protect the brand and our other Best-one members. Those that join Best-one will be required to comply with our promotional and purchasing criteria and if they do so will benefit from sector –leading support.”

BETTER SALES Best-one’s sales in Scotland have grown by 17% over the past year with member numbers increasing by 11% despite the rationalisation to 155 stores. Destination categories such as chilled and fresh are driving this growth with growth levels in excess of 75% on fruit and veg and butchery. Packaged chill is also performing well with growth of over 36%. Eighty percent of all chilled and frozen

SLR | JANUARY 2016

products are available as singles to Best-one retailers meaning members can offer the breadth of range required from a modern convenience store but without the added expense of having to invest in depth of range. One in every three baskets now includes fresh or chilled produce and the group’s five Scottish delivery hubs can now deliver up to three times per week to members if required to minimise wastage and guarantee longer shelf-life. Established categories such as soft drinks, grocery, confectionery and petcare are all enjoying growth exceeding 15% ensuring members have the best sales mix for their stores and customers.

BETTER PROFITABILITY The Bestway group’s purchasing power of over £2.5bn means that Best-one members receive the most competitive wholesale pricing and rich monthly consumer promotions. Added to this is the most generous rebate scheme in the sector, My Rewards, which gives members the opportunity to earn up to 5% cashback on their purchases with the average payout per qualifying retailer being £7,500 per year.

BETTER SUPPORT The group has also increased by 50% the number of Business Development Executives

to help members with store development and take advantage of a better sales mix from consumer-driven need state categories such as chilled & fresh foods. Members receive a monthly call (weekly for the first six weeks of joining) from their BDE offering everything from advice on ranging and planograms to sales development and legislative guidance. James Hall concludes “There are Bestones all over Scotland from Aviemore in the north to BBerwick in the south. We have the infrastructure and the expertise to really make a difference to members’ sales. However for Best-one it’s not a numbers game – it’s about creating a retail brand that shoppers relate to and engage with. We are confident that Bestone offers retailers the best possible symbol solution backed up by unparallel support making it the obvious choice for retailers who wish to grow their business.” For more information on Best-one, contact your local Batleys depot, visit www.best-one. co.uk , email equiries@best-one.co.uk or call 020 8453 8353.

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Make the change to l Best-one is the UKâ&#x20AC;&#x2122;s fastest growing major symbol group with sales up to 30% growth

l Over 1,100 stores nationwide l ÂŁ7,500 average annual payout to members participating in My Rewards rebate scheme

Now is the time to make the change and share in the Best-one success story.

Feature

Fascia | Advertorial

XCEPTIONAL PERFORMANCE FROM XTRA LOCAL Batleys Xtra Local retail club continues to deliver impressive growth for members in Scotland.

F MEMBERSHIP BENEFITS Q Free to join and no ongoing fees Q Bestway Group’s highly competitive wholesale pricing Q Enhanced promotion pricing and exclusive promotions Q Extended buy in period Q Detailed Category planograms Q Free, professional point of sale material and consumer leaflets Q Monthly IMPACT category-led magazine Q Free fascia (subject to approval)

MEMBERSHIP REQUIREMENTS Q Minimum £1000 wholesale spend per week (excluding tobacco) Q 100% support of 35 Must Feature monthly promotions Q Must accept allocation of Must Feature promotional stock

SLR | JANUARY 2016

or many retailers joining a fully blown symbol group is neither an option nor a desire. And it need not be a requirement of success. Many retailers throughout Scotland are choosing to stay independent while reaping the rewards of highly competitive pricing, extended buying in periods and fantastic consumer promotions through Bestway Batleys’s Xtra Local retail club. Xtra Local from Bestway Batleys gives retailers the tools to compete without any complex contractual tie-ins, joining fees or monthly charges – retailers only have to commit to a minimum spend and allocation of monthly ‘Must-Stock’ promotions –putting them in control of their business. “Retailers are flocking to Xtra Local as membership gives them enormous benefits over cash and carry shoppers. They get the same everyday cash and carry prices but also specially created monthly deals which they can access two weeks before the promotions becomes live in depot. They also get professionally designed point of sale to highlight offers and drive customers in to their stores” says David Livingstone, regional

controller for Scotland. Membership has increased by over 20% over the past year with sales up almost 19%. Product categories are also being redefined as retailers are changing their stores to reflect the changing needs of shoppers. Over 23% of Xtra Local members are now buying into the fruit and veg category while 20% more are now stocking fresh meat – core categories for the convenience shopper. With no ongoing payments or signing up fees, Xtra Local gives retailers the opportunity to offer fantastic value to customers with a 35 incredible monthly offers. These monthly promotions cover all main impulse and grocery sectors and are complemented by a complete range of professional pointof-sale material, free individualised consumer leaflets to help drive footfall and continued support from their local business development executive. There is also a scaled down format – Xtra Local Xpress – for more impulse-led retailers who only need to comply with 15 promotions. Full information on Xtra Local is available from Batleys depot managers or from the Xtra Local Website – xtralocal.co.uk.

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Galaxy’s biggest 5 years, achieving innovation in test results of any the highest concept Mars product ever!* 20% of Galaxy ® Duet™ sales are predicted to be incremen tal chocolate category* to the Scored 85% purchas e intent* Bespoke TV campai gn supported by £4m launch

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Feature

Fascia | Advertorial

THE PERFECT PARTNERSHIP WITH COSTCUTTER SUPERMARKETS GROUP Your local knowledge combined with our retail expertise is the perfect partnership. With unrivalled buying power, specialist advice and ongoing support we can tackle market challenges, compete against the multiples and help grow your business the way you want to. BIG & LOCAL Our own brand Independent offers high quality at great value prices. It is a great alternative to big brands across three tiers – Independent Trader, Independent and Independent Specialist – and has been created just for local shops, giving people more reasons to shop and stay local.

CONSUMER MARKETING We build awareness of the brands with marketing that is focused on your local community – building engagement and driving sales. We significantly invest in TV and advertising, free POS, bespoke leaflets and offer industry leading digital marketing. We also boost sales with major seasonal promotions and events.

DISTRIBUTION In partnership with Palmer and Harvey, we deliver a personal and flexible service with Tri-temp vehicles allowing you to get all your goods in one easy to manage delivery at a frequency that is right for your store.

TECHNOLOGY BEST PRICING & POWER We offer the largest volume buying power in the UK Convenience sector – worth £5 Billion, through our joint venture buying company, The BuyCo, whose sole purpose is to negotiate the best prices for our retailers. Our pricing is simple, transparent, fair and incredibly competitive. You can offer shoppers excellent prices because of our great wholesale prices, delivering strong margins for retailers. There are no hidden charges, no surcharges and no membership fees. We also offer competitive rebates.

Our cutting edge Activ Technology systems, including ActivCPoS, ActivOC and our retailer portal ActivHUB, have been developed inhouse by retailers for retailers to make your ordering process hassle free.

WE’RE BETTER TOGETHER We have been championing independent retailers for the past 29 years. Together we can make sure that it is the independent retailer that triumphs. Call 01904 486 543 now to book an appointment with one of our retail advisors.

BEST BRANDS & FORMATS You want a store that shoppers trust and recognise, and that has your personal touch and is tailored to meet the needs of your community. Our three powerful retail brands – Costcutter, kwiksave and Mace – are famous for value and delivering a strong retail experience across a broad range of convenience formats, including high street, village, large urban stores, forecourts and CTNs. Our partnership with Simply Fresh complements our brands and present exciting growth opportunities.

THE BEST RANGE & PROMOTIONS We recognise and respond to the on-going change in convenience shopping, from distress purchase to regular grocery shops which is why we offer over 10,000 best-sellers so you can tailor your range, the best promotions in the independent sector with over 300 deals every three weeks and free POS to ensure your promotions are unmissable and drive sales. 54

SLR | JANUARY 2016

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“It’s so simple being part of Costcutter. The combination of a great brand, excellent promotions and access to large volume buying power allows me to offer great value to my customers.” Kai Bali, Costcutter Dumbarton

We are stronger than ever, with more members than ever before We now have more Costcutter, Mace, kwiksave and Supershop members than ever before, and new stores are joining every month.

Retailers are already benefiting from our new ActivOC and ActivHUB systems which are putting them in control of their business and helping to drive sales.

Retailers like the strong positioning of our brands and over £5m is currently being invested in store redevelopments. Through the BuyCo we have the largest volume buying power in the UK convenience sector, over £5bn.

We have built the best team in symbol retailing to support our members and give them the right tools to build great businesses and win in convenience.

Our new space planning and category management systems have delivered a 16% increase in sales in store trials and we continue to invest in our Activ Technology programme.

If you want to be part of an exciting change in the convenience sector call us on 01904 486543 and let’s have a conversation. Or visit us on www.costcuttersupermarketsgroup.com

Would you like to work with a retail partner that helps you grow your business? YES

YES

Would you like to have more time developing your business and doing the things you enjoy?

Would you like your own experienced business development manager on hand to advise and support you?

NO YES

Would you like to offer promotions and meal deals that compete with the multiples? NO

YES

Would you like a

Do you want to make shopping in your store quicker and easier for your customers?

refit contribution*?

YES NO

itâ&#x20AC;&#x2122;s time to get on board!

Maybe nowâ&#x20AC;&#x2122;s not the time?

A One Stop Shop could be perfect for you Call us on 01543 363003 or visit o uk o.uk our website openaonestop.co.uk

* ex VAT. Subject to terms and conditions of contract.

Javid & Shaista Iqbal, Blackburn Javid Iqbal’s store in Blackburn was the first in Scotland to go through the full 12 week transition process that most retailers go through. Javid and his wife, Shaista, were previously with a symbol group for nearly ten years and ceased trading with them on 15th June 2015. Both the retailer and One Stop agree that the change heralds an entirely new way of life. We sent our One Stop BDM Jim Carroll to find out more. What made yOu cOme acrOSS tO One StOp?

haS One StOp made a dIfference tO yOur lIfe? “Life has become easier...the store back office system is the brain of the One Stop model which takes care of all the stock management, promotions, pricing, stock levels and gives us up to the minute sales data at the click of a button. We have a lot more time on our hands which obviously is a great thing! The daily working pattern is so much more structured and productive.”

”We saw our sales increase by 15% in our first full month of trading as a fully fitted One Stop.”

“We wanted to gain a more accurate idea of our margins and also wanted to improve them through a better sales mix. We were at a standstill and needed to reinvigorate and grow our business. One Stop’s strong promotions and pricing appealed to us, as did their modern responsible retailing methods and overall store standards.” What have Been the maIn BenefItS SInce mOvIng? “We have a better balanced product range, enhanced stock management systems and stock availability, supported by the ‘back office’ system. I spend more time in the store instead of on the road, which has enabled us to have more customer interaction, improved product knowledge, better staff engagement and stock management; resulting in much higher store standards!”

What are the BenefItS Of WOrkIng tO the One StOp mOdel? “It’s given us more confidence in pricing, buying, promotions, and marketing and created a happy and healthy working environment. We have a very professional and efficient franchise structure. Our BDM helps tick all the boxes and keeps the store compliant. Both the team and ourselves are very proud of our store.”

are yOu happy yOu made the decISIOn tO Open a One StOp ShOp? “We definitely feel we have made the right decision in becoming a One Stop franchisee. The support we receive on a daily basis is unbelievable. There have been a few issues that we have had but we are delighted by the way those issues have been dealt with both quickly and efficiently. To know that we can at any point contact not only our BDM (Jim Carroll) but also Head of Franchise Operations (John Miller), and the Director of One Stop Franchise (Andrew King) is fantastic. Any concerns or questions we have are listened to very carefully and our feedback is greatly appreciated. We don’t feel as if we are on our own!

“We are a franchise store but we still have a great deal of independence to tweak the things we feel need doing so. The systems and support One Stop have in place are second to none!” What’S Been the reactIOn frOm yOur cuStOmerS? “Our customers love the change, they say the store feels fresh and exciting to shop, they now need a basket when they come in! The store feels really professional and they can shop with confidence in our prices and quality of our products.”

CALL US TODAY Our Store Support team are just a phone call away. If you’d like to be part of our award-winning franchise we’d love to hear from you. Who knows, you could soon be the proud owner of a shiny new store with industry-leading technology at your fingertips and more time on your hands thanks to our £50,000 contribution to a store refit!* *ex VAT. Subject to terms and conditions of contract.

01543 363003 or visit our website at

openaonestop.co.uk @1StopFranchise

Tobacco

Feature

ANOTHER I YEAR OF UPHEAVAL

Every year that passes seems to bring with it more tobacco legislation, and this year marks the introduction of the EU Tobacco Product Directive 2, which will lead to sweeping in-store restrictions, so for retailers 2016 is year of education, adapting and training. BY KEVIN SCOTT

SLR | JANUARY 2016

f 2015 was the year of the dark market, 2016 is set to be the year of TPD, though retailers should be aware that while the new Europe-wide regulations come into force in May, there is a year-long sell-through period, which will minimise disruption. The real change will occur in May 2017, when retailers will no longer be able to sell the likes of 10 pack of cigarettes and smaller RYO packs. This year then, should be one of education, training and preparation. JTI’s Head of Communications, Jeremy Blackburn, believes the impending ban on 10 packs will have a “serious impact” on trading. But even before it comes into play, there is a more fundamental issue of education. “I don’t think enough retailers are up to speed with the changes coming,” says Blackburn. “Those who are aware are prepared. The regulations are on the horizon.” Ahead of the changes, JTI will helping retailers do just that. Literature is available at www.jtiadvance.com, which Blackburn describes as the first step in a full programme of support. “Visit the site, talk to our reps, read the trade press,” he says. “Know what is coming, but remember that it is business as usual for now so there’s no need to panic.” In terms of availability, Blackburn suggests keeping stock on shelf for as long as possible – until May 2017. With the price increases that will come in on certain brands following the banning of 18 and 19 packs, it’s a question of ensuring staff are aware of the changes and that these changes are relayed to customers. “Make staff aware, make shoppers aware,” is Blackburn’s advice. www.slrmag.co.uk

Feature

Tobacco

TOP 5 CIGAR SKUS Café Crème Blue 10s Hamlet Miniatures 10s Moments Blue 10s Hamlet 5s Café Crème 10s

TOP 10 UK RMC BRANDS Sterling Mayfair JPS RMC Lambert & Butler Richmond Marlboro Carlton Windsor Blue Players Sovereign Blue

SLR | JANUARY 2016

DO NEW PRODUCTS STILL MATTER? With no visible way of communicating new products to consumers, it’s fair that retailers may question the purpose of NPD in the modern day, and whether they should find room for it on a crowded gantry. The argument from the tobacco firms is that NPD remains important as smokers do switch brands, particularly when downtrading to the value sector. While retailers may not be able to market products to their customers they can offer advice when asked, and these small holes are the very ones being plugged by tobacco NPD. In fact, it is line extensions rather than new brands that dominate NPD in the category, and manufacturers tend to use new technology to refine current offerings. For example, Imperial Tobacco added Crushball to Player’s portfolio last May. Retailers may ask themselves why, but the answer lies in the price: JPS Crushball is the best value capsule cigarette in the market (King Size 18s with an rrp of £6.40 (PMPs at £6.14) and King Size 10s with an rrp of £3.53 (PMPs available at £3.33). While all of these products will be outlawed in time, for now they fill an important role. If a shopper asks for the best value capsule cigarette – as research indicates more shoppers are doing, then the Imperial product gets the sale. Andrew Miller, Head of Field Sales at Imperial Tobacco UK says Crushball has been extremely well received by retailers and customers alike. “Both our sub economy brands are continuing to perform admirably, with Carlton and Player’s contributing to a current sector share of almost 43%,” he says. Indications show that the downtrading trend is set to continue for some time yet, says Miller, meaning manufacturers need to continue to offer compelling solutions. Imperial’s latest big launch comes from the JPS stable, with JPS Triple Flow, which it describes as “a revolution in cigarette technology”. The firm describes Triple Flow as possessing ‘easy draw’ channels, with a new smooth blend and a mineral filter that aims to offer a fuller smoking experience. Each cigarette is also wrapped in a special paper, designed to actively reduce the amount of smoke emitted – which may result in less smell. The Value segment remains key to maintaining sales levels, as the overwhelming trend is towards cheaper lines. JTI’s Jeremy Blackburn says: “The Value price sector which includes Value, Super Value and Ultra Value holds a 55.1% volume share of the total RMC market and JTI has a number of brands which cater towards this trend including Sovereign, Sterling and B&H Blue.” Also using brand houses to expand choice for smokers, and reducing stick numbers to lower prices, Sovereign Blue, Sovereign Sky Blue, Green and Dual all available in 17s, at a super value price point, making the entire house a must stock for any retailer. JTI’s Jeremy Blackburn points out that when it comes to NPD it is important to ensure retailers know what is out there to ensure they can offer customers great service. For example, if a B&H smoker is looking to trade down, a retailer can let them know about B&H Blue, which in Blackburn words “offers affordable quality from Benson and Hedges.” One thing retailers must always remember is that despite most of the trend talk focussing on value, one in four packs are premium – and with premium lines offer improved cash margins, they remain important. “The enhanced margins provided by illustrious brands like Davidoff, Embassy, Regal, Superkings and Lambert & Butler Silver means they continue to be ‘muststocks’ for retailers in 2015 and beyond,” says Imperial’s Andrew Miller. www.slrmag.co.uk

Tobacco

Feature

FILTERS AND PAPER PUSHING UP SALES

“Those who are aware are prepared. The [EUTPD] regulations are on the horizon.” JEREMY BLACKBURN, JTI

www.slrmag.co.uk

He adds that Partnering for Success reflects the company’s continuing commitment to working together with the trade to secure the ongoing success of the category in a highly regulated environment. “It will also ensure our sales force becomes the goto source of expertise, authority and reassurance around the EUTPD II and Standardised Packaging legislation. Partnering for Success is all about helping our trade partners navigate any possible changes in the tobacco category. We’ve already started to drive this new platform forward with retailers through initiatives including engagement evenings, information packs and presentations.” As Ruigrok says, down the years the tobacco industry and the trade have a long history of working together through changing

l s

Ahead of the restrictions coming into play in May, Imperial Tobacco launched its ‘Partnering for Success’ initiative, which has designed to offer retailers guidance around the revised European Union Tobacco Products Directive and Standardised Packaging legislation. Partnering for Success is comprised of a programme of communications designed to both advise and support retailers through the potential legislative changes. Melvin Ruigrok, General Manager of Imperial Tobacco UK and Ireland, comments: “I appreciate this a challenging period for retailers, but the tobacco industry and the trade have a long history of working together through changing legislation – most recently with the Dark Market.”

While there may have been huge changes to the way tobacco is sold, the continuing popularity of rolling tobacco means the accessories market remains buoyant. From papers to filter tips, lighters to rolling machines, it pays for retailers to have a wide range, and like the rest of the tobacco category, availability is key. Gavin Anderson, General Sales Manager for leading RYO accessories supplier Republic Technologies, says the combination of value, choice and quality of RYO accessories is proving attractive to consumers. “The display ban means retailers must think long and hard about how to promote and maintain tobacco sales,” he says. Unlike in England and Wales, where accessories can be openly displayed – and indeed are prominently displayed by retailers – in Scotland, accessories must remain behind the shutters with the rest of the category. Nevertheless it’s important for retailers to ensure they have what shoppers demand and that means brand’s like Imperial Tobacco’s Rizla and Republic Technologies’ Zig-Zag and Swan brands. Republic Technologies’ recent NPD has concentrated on activity which taps into key consumer trends. The Zig Zag Unbleached paper range – the most transparent and unrefined rolling paper is a good example, providing RYO enthusiasts with a smoother taste and enhanced tobacco flavour with further innovation in both filters and papers to be announced in early 2016.

JANUARY 2016 | SLR

Feature

Tobacco

TOP 10 UK RYO BRANDS

SALES KEEP ROLLING IN In the RYO category, trends over the past few years have seen a marked increase in the number of adult smokers who are shopping ‘little and often’, and who are also seeking a quality product with a lower out of pocket spend. For instance, currently more than 44% of RYO retail sales in the UK are 12.5g or below. While that trend is set to continue, it will come to an ignominious end when the EUTPD 2 comes into play – thankfully retailers will have a year from May to sell through any packs less than 40g, so the advice is to continue doing as you are doing, but be aware that you can’t do it for much longer. Value RYO commands a 20.3% volume share of the category. Sterling Rolling is one of the leading value RYO brands with a 12.5% share in this segment. JTI’s Jeremy Blackburn says: “The continued growth of many of JTI’s brands such as Amber Leaf and Sterling can be attributed to the fact that in recent years many adult smokers have chosen to switch to products which offer greater value for money - a trend which has manifested itself in the considerable growth of Value RYO within the UK tobacco category.” At Imperial Tobacco, new products GV Midnight and GV Sunrise have bolstered its offering in the value sector. GV Midnight and GV Sunrise are currently available in 10g format only. Both include papers and have an rrp of £3.75. There has, in fact, been much movement on the GV front, as the brand aims to win back market share lost to Amber Leaf. Standard Golden Virginia (the leading premier RYO) was redesigned, while a 25g GV Smooth (rrp £8.99) now comes with ‘Pocket Plus’, a built-in internal pouch which allows smokers to store accessories like papers, filters and a lighter in one convenient, on-the-move packaging solution. Another recent launch in this sector came from Player’s Red Volume Tobacco, which Imperial’s Andrew Miller calls a versatile blend that will appeal to adult smokers who roll their own or use a cigarette maker. “While smaller packs tend to be more prevalent in independent stores it’s important for retailers not to discount stocking larger sizes either. With more than one in five packs of RYO tobacco sold being the 50g variant, larger offerings are becoming increasingly relevant as they offer adult smokers excellent value for money.”

NATURAL SELECTION With sales up 32% for the year to end-October, 2015 marked a successful year for Natural American Spirit’s rolling tobacco brands. The brand, which has recently been acquired (outside the US) by JTI stands out due its tobacco being additive free. The growth though, is down to a long-term strategy put in place by General Manager Alan Graham. “To be +32% in a market that’s +1.7% is very good. We’ve had particularly strong numbers in Scotland,” says Graham. Previously, the company had a 0.6% share in value and volume; that has now grown to 1.1% and 1.2% respectively, doubling the marketing share. For Scottish retailers not currently stocking the NAS range of RYO products, Graham says it’s time to consider it. “Look at our growth rate. We can show how we’ve made the product work in new stockists. And as it’s a premium product it’s got good cash margins.” Distribution has focused on urban areas, but that is moving out now as demand for the product spreads, and as Graham points out, the number of stores stocking NAS has doubled – a tally he’s hoping to grow on in 2016. There are now two reps covering Scotland, which means more coverage and more support. Natural American Spirit cigarettes are also in growth (+1%) in a decline cigarette market, as demand for niche products, such as additive free lines, grows. “We can now offer retailers half outers,” says Graham. “We recognise it is quite an expense to buy a full outer of a product not currently stocked, so the half outers allow are giving us more of a foothold.”

Q Amber Leaf Q Golden Virginia Classic Q Gold Leaf Q Cutters Choice Q Golden Virginia Smooth Q Drum Q Sterling Rolling Q Pall Mall RYO Q JPS RYO Q Old Holborn

tobacco legislation, ensuring the category remains both a key footfall driver and profit generator. “Partnering for Success continues this tradition, and we’re looking forward to revealing more details in the months ahead and continuing to drive the success of the category.” Duncan Cunningham, Imperial Tobacco UK&I’s Head of Corporate and Legal Affairs, adds: “We believe that both EUTPD II and Standardised Packaging are unlawful, and continue to fight the latter legislation through the courts on behalf of our employees, our retailers and our investors. However, until the outcome of these challenges is known, as a responsible business we also recognise the need to help prepare our partners for compliance.” As part of Partnering for Success, Imperial Tobacco has created START packs. START stands for: Support, Training, Availability, Range and Trust. Imperial says the packs will keep retailers updated with all the latest legislative and tobacco category information – and help ensure their business is a success. START packs will soon be distributed to retailers by Imperial Tobacco representatives. Retailers can also download digital versions from www. imperial-trade.co.uk. The key then is in awareness, as retailers found when preparing for the display ban. Blackburn says that retailers who prepared well have found that their tobacco sales have remained constant, though overall figures do show there has been a slight channel shift to those larger stores who did prepare early and who have good availability. s

SLR | JANUARY 2016

www.slrmag.co.uk

A PACK O F M ARLB O R O CI GA RETTE S FO R J U S T ÂŁ 6 .9 9*?

(please tick preferred box) flabbergasted amazed stunned dumbfounded

quality ble nd , f irm f ilt er. unbe lie vable but t rue.

*This communication is for the information of tobacco traders only. ÂŁ6.99 is the Recommended Retail Price (RRP). All on-shelf prices are selected by the retailer alone. Non-price marked packs are also available.

Smoking kills

Feature

Tobacco

£6M A DAY LOST TO TAXMAN DUE TO ILLICIT TRADE Illicit tobacco remains one of the biggest threats facing legitimate retailers. According to the latest HMRC figures, 10% of cigarettes consumed in the UK are illicit and a huge 35% of RYO. Take a step back and consider those numbers – it’s a huge negative influence on the business of every law-abiding retailer in the country, and £6m being lost in tax revenue every single day. In 2015 JTI joined forces with the UK’s only independent crime fighting charity, Crimestoppers, to work together to stamp out the illegal tobacco trade across the UK. “What is disturbing is the fact that there are more retailers being sucked into selling illicit goods in their store. Anyone who is found to be doing this will have their gantry removed by JTI and be reported to HMRC,” warns JTI’s Jeremy Blackburn. The best thing retailers can do if they are offered illicit tobacco products is to report it to either Crimestoppers or HMRC – or both. Phone lines are anonymous. “Retailers can engage, they can help stop this trade and they need to know that all calls are followed up,” says Blackburn. “Good retailers should know they have a role to play in reporting it. There’s a perception among some consumers, perhaps, that small shops shouldn’t be trusted, but that’s wrong. No one has to migrate to larger stores if small shops protect their reputation.” The key then is to ensure every retailer takes this responsibility seriously. Be vigilant, and ensure anything suspicious is reported.

SLR | JANUARY 2016

“Because of the [different regulations in] Scotland we had to go in and start fitting new gantries early. It was a quirk of necessity but it did give people – retailers and consumers – time to prepare, so the stock and availability issues were addressed ahead of time, which led to a smooth transition.” As further restrictions are heaped onto retailers some are choosing to move tobacco away from its natural home behind the till. Solutions are now available that see tobacco housed above or below the tillpoint, with that traditional gantry space being used to promote other products. However JTI’s Blackburn urges anyone thinking of moving cigarettes to be wary of possible sales repercussions. “With all the changes going on you and retailers think about moving cigarettes under the counter, they have to be careful that customers don’t think they’ve stopped selling tobacco. My advice is to not make wholesale changes if you want cigarettes to remain a footfall driver. This is not the time for further disruption.” Blackburn also says there is ample room for tobacco and ecigs to co-exist, in fact he argues that by having investment from tobacco companies, ecigs will go from strength to strength. “We’ve invested in Elites because we see a future in that sector,” he says. “The pace of change is hard to predict but there’s an opportunity for both to co-exist. Market forces will drive that.” Blackburn also believes that now the tobacco industry has invested in ecigs, we will see more innovation. He also advises retailer to become as knowledgeable as possible. “Those who invest time in the category will benefit. The more advice they can provide, the more likely their customers will be to return.” www.slrmag.co.uk

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For further information please contact: enquiries@sfrti.com For the information of tobacco buyers only

Smoking seriously harms you and others around you

Feature

Price Marked Packs

THE VALUE OF PRICE MARKS

Price marked packs are one of the biggest trends to sweep through convenience retail in recent years, but to what extent to they help grow sales? Is it all about perception of value or do retailers actually generate more profits by flashing their prices on pack? BY MIA HUNT

ith new research suggesting that 71% of consumers are more likely to buy price-marked packs as a result of perceived better value, PMPs have made a big impact in the convenience channel in the last couple of years and with shoppers coming to expect it in their local store, there aren’t many categories left that haven’t seen price flashes appear on packaging. Aside from reassuring consumers of a low price guarantee, PMPs have the added benefit of allowing retailers to predict profit margins and maximise sales through increased demand. But how can retailers ensure they are protecting their margins while remaining competitive?

SHARING PMPS FROM MCCOY’S AND SPACE RAIDERS KP Snacks has introduced two £1 new PMPs across its McCoy’s and Space Raiders brands. Available in larger sharing bags, the new packs were launched following consumer insight that PMPs of this format are growing at 21% year-on-year. The McCoy’s Cheddar & Onion £1 PMP aims to build on the momentum of the brand’s major re-design earlier this year, and KP says will give retailers the opportunity to offer consumers their favourite flavour in a large 70g sharing pack. As the fastest-selling impulse brand and worth over £9m in retail sales value, the new 95g Space Raiders Pickled Onion PMP follows hot on the heels of the brand’s Beef flavoured grab bag. Matt Collins, Trading Controller Convenience for KP Snacks, commented: “Price-marked sharing packs now have a larger value share than standard sharing packs, and are particularly popular within convenience where shoppers are looking for the best impulse deals on brands they know and love.”

37%

of retailers say PMPs are the most effective promotional tool.

SLR | JANUARY 2016

www.slrmag.co.uk

Stock the UKâ&#x20AC;&#x2122;s bestselling brands*.

Now available in PMPs.

*Based on Tampax and Always volume share from P52W ending 28/08/2015, IRI data

Feature

Price Marked Packs

TAMPAX UNVEILS COMPAK PMP

NEW LOOK AND RECIPES FOR WHISKAS DRY

Tampax has introduced a £2.99 PMP for its Compak range, in a bid to boost the Health and Beauty category. Available now, P&G expects the the Compak PMP range to be a huge success with female convenience shoppers because of the attractive price point as well as the product’s smooth plastic applicator, which is half the length of a usual Tampax Cardboard applicator and therefore much more discreet to carry. The launch benefits from a national marketing campaign behind the Tampax brand to raise consumer awareness and drive sales. Christina Turner, Tampax & Always Brand Manager at P&G, commented: “We know that 44% of shoppers would be more likely to make an impulse purchase if a product was price-marked, and as many as 37% of retailers say that PMPs are the most effective promotional tool.” “We also know that compared to shoppers who buy cardboard applicator tampons, the average Tampax Compak shopper spends more per trip when visiting her local convenience store and demonstrates higher levels of loyalty. This presents a real opportunity to grow sales in-store by encouraging repeat purchases through PMP. For this reason, we recommend retailers stock up on Tampax Compak PMP and ensure that their shelves are kept full to meet demand.”

Whiskas has rolled out a new recipe and complete pack redesign across its range of dry cat food. The all-new Whiskas Dry comes in Chicken and Tuna flavours, available in 340g and 825g. £1 pricemarked packs are available for the 340g size, which feature a new, clearer PMP flash. The range is supported by £10m investment into in-store activations, additional POS materials, and TV advertising throughout the year.

CDM LAUNCHES NEW FRUIT & NUT CHOPPED WITH £1 PMP Cadbury Dairy Milk has launched a new Fruit and Nut Chopped £1 PMP tablet exclusively to the Convenience trade. A spokesperson for Mondelez said: “The new product allows consumers to enjoy a Cadbury Dairy Milk fruity and nutty experience in every bite. It is available in £1 PMP packs, a highly motivating price point for consumers and popular with retailers alike.”

SMINT LAUNCHES £1 PMP

71%

of consumers are more likely to buy a PMP due to a perception of value.

With research suggesting over 70% of confectionery consumers are more likely to buy pricemarked packs, Smint has unveiled a new £1 PMP format. Eager to tap into impulse spend, Smint’s new £1 packs are designed to be as striking as possible, featuring a yellow £1 rrp flash on its pack foil and a new restyled pack design. Shankar Iyer, Product Manager at Perfetti Van Melle, said “PMPs give shoppers a renewed sense of trust in the brand.”

THE IMPORTANCE OF PMPS UK economic conditions and changing consumer attitudes over the last few years have ensured that good value lines and promotions are here to stay; people are keen to make their money go further making value more important than ever before. Consumers are looking for transparency to make an informed decision about where to buy and what products they can trust. In convenience, this has led to the growth of price marked packs. According to Emma Hunt, Vimto UK Marketing Controller, PMPs work particularly well on the packaging of strong and recognisable brands, providing independent retailers with a trusted mechanic to offer value-for-money. “Value is extremely important to consumers nowadays,” she says. “They are looking for transparency and confidence that the products they are purchasing aren’t overpriced. PMPs also make shopping easier for the consumer as they are clearly marked creating real on shelf presence, which in turn drives quicker purchase decisions. And research shows that both shoppers and retailers are reassured by PMPs with most retailers more likely to stock a new product if it offered a PMP as well as a plain pack. “Whilst retailers need to keep an eye on their profit margins, the allure of a PMP will help to increase impulse purchases, encourage repeat custom and ultimately drive stock through more quickly.”

SLR | JANUARY 2016

www.slrmag.co.uk

A L IE N S H AV E LAN D ED A ND TA K EN OVE R T H E W O RLD . U NB E LI EVA B LE.

YO U WI LL I N H E R I T £20 B I LLI O N FRO M A LO N G LO S T R E LATI V E . U NB E LI EVA B LE.

M A R L B O R O T O U C H JUST £6.99* FO R 20. U N B E L I E VABLE B U T TRUE .

quality ble nd , f irm f ilt er. unbe lie vable but true.

*This communication is for the information of tobacco traders only. £6.99 is the Recommended Retail Price (RRP). All on-shelf prices are selected by the retailer alone. Non-price marked packs are also available.

Smoking kills

Feature

Price Marked Packs

NEW AND UPCOMING PMPS AND PROMOTIONS With barely a category left untouched by the demand for PMPs, we round-up some of the recent launches and some of those due to drop later in the year. Mars has extended its PMP range – which includes Maltesers and M&M’s treat bags and Galaxy sharing blocks – to include Mars, Snickers, Twix, Bounty and Maltesers singles, all now available for an rrp of 50p. In addition, a Maltesers Teasers single will be available in the New Year. “We’re excited to continue to grow our range of price-marked packs with the addition some of our best sellers,” says Bep Dhaliwal, Trade Communications Manager, Mars Chocolate UK. “Retailers not only see PMPs as better value for themselves and their customers, but also as a key footfall driver, attracting more shoppers to store and ultimately generating sales growth.” To support the launch of the new PMPs, retailers will be able to choose from a range of POS and display solutions from February including standees, aisle flags and shelf barkers. PepsiCo has been busy on the PMP front too. With the crisps, snacks and nuts segment worth £2.8bn and with sales up £31m year on year and growing faster than other impulse category, PMPs are leading the way with 57% of shoppers looking for value. In line with that trend, PepsiCo has launched price-marked singles packs to popular core ranges including Walkers standard bags, Wotsits, Quavers and Doritos at 50p. In Scotland, Walkers has 11 out of the top 12 best-selling £1 price-marked pack lines and with sharing occasions becoming increasingly popular, £1 PMPs are growing at 18%, now owning 54% of the sharing segment. Walkers PMP crisps sell on average 20% quicker in impulse than non-PMP variants and with the move back to 50p, PepsiCo expects that to accelerate even further. Meanwhile, the new Walkers 75p PMP Grab Bags will continue to offer retailers an incremental sales opportunity, increasing sale by 7%, and three case stackers are available to help engage with shoppers. And for the Doritos brand, the top three best-selling £1 PMP sharing lines in Scotland are Doritos Chilli Heatwave, Doritos Tangy Cheese and Doritos Cool Original. As for the chilled foods category – worth £3.8bn in convenience and set to grow a further £6bn by 2018 – Fresh to Store’s new ‘Favourites’ range was launched in response to retailer demand for more value offerings. The range includes 80 new products including meatballs, yoghurts, desserts and ready meals, with many price marked at £1. And Kerry Foods has brought out a range of price-marked packs as part of its Building a Nation of Chilled Experts programme, to cater for key consumer missions in convenience: food to go, top up and meal for tonight. Packs with the price flashes now include some of Kerry Foods’ most popular snacking lines, such as Cheestrings singles and the newly re-branded LowLow Snack Packs Caramelised Onion and Red Pepper variants. Retailers can also offer two PMP options on Richmond - either at £1.49 or £2.29 - while the Mattessons range of Fridge Raiders and Sliced Cooked Meats both also carry on-pack flashes. “Price-marked packs will be a key element in our Building a Nation of Chilled Experts programme to help retailers optimise their chilled offering,” says Clare Bocking, Sales Director for Convenience at Kerry Foods. “We truly believe in the future of chilled in the convenience channel and continue to share practical advice and solutions across our brands to maximise sales of chilled products.” At Kepak, Rustlers Super 6 was launched, accelerating demand for its pricemarked products by offering Rustlers top-selling SKUs all price-marked at £1.99. The Rustlers Super 6 PMP range includes the Rustlers Quarter Pounder, the Rustlers BBQ Rib, the Rustlers Chicken Sandwich, the Rustlers Deluxe (Bacon Cheeseburger), the Rustlers Southern Fried Chicken Hot Sub and the Rustlers Hot Panini Pepperoni. Unsurprisingly, Angela Daulby, Channel Director of Kepak Convenience Foods, highlights that products that come in priced-marked packs are likely to have even stronger appeal when backed up by national TV advertising. The company has announced a multi-million investment to double sales in the convenience channel in the next three years, with TV advertising, major on-pack activity, NPD and a new look for the Rustlers brand. 70

SLR | JANUARY 2016

THE ROLE OF PMPS IN DRIVING TRIAL IN NEW PRODUCTS Transparent pricing through PMPs should generate consumer confidence by demonstrating they are getting the best price, driving impulse purchases and higher sales for the retailer. But that isn’t the only benefit, as Melanie Billows Marketing Controller for Easy, points out, “PMPs can be particularly useful in encouraging trial of new products”. Amy Burgess, Trade Communications Manager at Coca-Cola Enterprises (CCE) adds that almost half (43%) of shoppers claim they would be more likely to try a new line if it was sold with a PMP. “Our research shows that PMPs can have a direct impact on helping retailers to achieve incremental growth, with 11% of shoppers claiming that they are most influenced by PMPs when deciding on a particular product to buy in a convenience store,” she says.

NATURE VALLEY GOES NATIONWIDE Nature Valley has put its singles, including Canadian Maple Syrup, Oats and Chocolate, into a 59p PMP format. The brand has also introduced a national field sales team to help independent convenience retailers’ increase their sales in the growing food-to-go category.

THREE PMPS FROM P&G P&G has recently launched a range of Laundry PMPs. The selection includes some of the company’s most popular brands across the cleaning, sensory and value cleaning segments. Available to retailers now, P&G has added PMP stickers to Ariel 3in1 Pods (rrp £3.99), Bold 2in1 Liquitabs (rrp £3.49) and Daz Go Pods (rrp £2.49).

NEW PRICE-MARKED PACK FOR CADBURY CREME EGG BISCUITS Cadbury Creme Egg Biscuits will be available for the third yar in the traditional 6-pack format (rrp £1), but will be joined by a new £1 PMP 6-pack, available until Easter Monday on 28th March. Both SKUs are available in shelfready packaging of 12. The product is back for a third year, after delivering £1.7m RSV in 13 weeks between January and April 2015, and bringing new shoppers to the Creme Egg portfolio. The 2016 launch will be supported by in-store activation and full POS kit such as FSDU shippers, shelf-barkers and posters to entice and attract shoppers.

www.slrmag.co.uk

*Cadbury Dairy Milk is the Nationâ&#x20AC;&#x2122;s favourite chocolate brand AC Nielsen, Total coverage MAT 31.10.15 Non PMP packs also available. Retailers are free to set their own prices.

Price Marked Packs

Feature

43%

of shoppers claim they would be more likely to try a new line if it was sold with a PMP.

P&G LAUNCH PMP FOR ALWAYS DAILIES PANTYLINERS Always, the UK’s number one Femcare brand from P&G, is launching a £1 price-marked pack along with a packaging makeover of its Always Dailies Pantyliners. Available to convenience and independent retailers now, the new pantyliners are individually wrapped to deliver a more compact, discreet and convenient format. Lourdes Fuentes, Brand Manager for Always, said: “The launch of the new PMP range is fantastic news for the brand and independent retailers alike, as price-marked products in general, and wrapped pantyliners within the Femcare sector, are known to perform particularly well in the convenience channel. Positioned at a price point that provides great value for money, we are confident that the new Always Dailies Pantyliners will prove to be a success with consumers, helping retailers to maximise sales and increase profit.”

KINDER LAUNCHES ‘ROUND-POUND’ PMP SHARING BAG Kinder is set to help retailers capitalise on the popularity of ‘round-pound’ deals from trusted brands. Available from January 2016, a £1 PMP format will feature across the sharing range of Kinder Choco-Bons (69g) and Kinder Chocolate Mini (72g). The price-marked packs are set to help retailers capitalise on the spontaneous nature of shoppers in the impulse channel and will be supported by a wider £3m media investment including TV, sampling and in-store activation.

MERCHANDISING MATTERS When it comes to merchandising, PMPs are often used to launch new products or variants with specialist packaging and eye-drawing price point, and retailers often viewing them in the same light as promotions. “Retailers should make sure that PMPs are easy to see, and that they are stocked in prominent places where impulse shoppers can take advantage of them,” says Mark Roberts, Trade Marketing Manager at Perfetti Van Melle. “With nearly two thirds of shoppers buying on impulse in stores, it’s essential to tap into this growing audience.” Matt Goddard, Head of Impulse Field Sales at PepsiCo, says that to maximise on sales, retailers should stock a range of the best-selling price-marked packs – and ensure it’s a range that is right for them. If you only have space for five single lines then he recommends you stock the top five best-selling price-marked packs, and if you have room for 30 then stock the top sellers accordingly. Research by PepsiCo shows that one in four convenience shoppers buy crisps, snacks & nuts on impulse, so retailers are encouraged to maximise on these purchases through great visibility around their store. For example, more shoppers buy single serve a snack when it is merchandised front of store with juice and sandwiches. “Crisps and snacks shoppers only spend 20 seconds at a fixture so why not site crisps and snacks at a till point, so shoppers are able to make impulse purchases,” advises Goddard. “And by cross-merchandising with other relevant product categories, this will allow retailers to boost basket spend.” Vimto’s Hunt agrees that PMPs are particularly successful at the till point, allowing retailers to take advantage of impulse purchases while shoppers are queuing. “Stock PMPs of well-supported and recognised brands as the shopper will see this as a good deal and drive loyalty,” she adds. “Stock PMPs of various formats to fit all occasions, such as an RTD to drink on-the-go or a two-litre carbonate for an ‘at-home’ gathering or on the way to a party. And ensure a chilled offering of PMPs to attract customers looking to consume immediately.”

FRUIT SHOOT HYDRO INTRODUCES NEW MULTIPACK PMP Britvic Soft Drinks is introducing a new PMP format for its Robinsons Fruit Shoot Hydro range. The new pack consists of 12 x 350ml bottles, with each individual bottle price marked at 79p rrp and is available in Blackcurrant & Orange and Pineapple variants from January. The launch will be supported in the independent retail channel with a full in-outlet launch plan, including a comprehensive POS package and trade exclusive launch promotions.

SLR | JANUARY 2016

www.slrmag.co.uk

Feature

Healthier Living

LOSING POUNDS, GAINING POUNDS

The market for healthier products is big business and is set to get even bigger as Scotland begins a major push to improve its collective diet – and convenience stores will once again be on the frontline, with pressure growing to offer more healthier options. BY ÉMER O’TOOLE

TOP TIPS FOR DRIVING SALES OF HEALTHIER PRODUCTS

ollowing the establishment of Food Standards Scotland (FSS) in 2015, the agency has wasted no time in making recommendations to the Government on how to improve Scotland’s diet. A recently published Situation Report (see p24) highlights that 65% of the Scottish population is overweight or obese, and to reverse this and begin to hit dietary goals that have been missed for the last 15 years, there needs to be a change in shopping habits. The FSS report discusses ‘discretionary’ products – such as soft drinks, crisps and confectionery – that are high in calories but low in nutrition, which means for convenience retailers, there is set to be an increased pressure to increase the number of healthier lines in-store. Thankfully, big brands are working to reformulate many recipes, low calorie options are becoming more abundant, and perhaps most importantly of all, the SGF Healthy Living Programme continues to go from strength to strength, moving beyond fruit and veg and into a number of different categories. Importantly, part of the current phase

SLR | JANUARY 2016

Q Locate your fresh fixture near the door, to increase perceptions of quality and grow sales. Q Use Point of Sale across the store to highlight healthier products. Q Work with an SGF Healthy Living Programme Development Manager to improve your offering Q Focus on top selling fruit and veg lines Q Work with local suppliers to boost your range of local fresh produce like eggs and meat Q Ensure you offer low fat alternatives to popular lines such as milk, yogurt, and wholemeal bread Q Introduce recipe cards and ingredient multipacks for soup and stews, for example Q Cross promote categories to encourage customers to visit other areas of the store Q Create a Healthy Mission fixture in your ambient section Q Appoint a ‘Healthy Champion’ from your staff to ensure the areas within the Healthy Living Programme sections are always well-stocked and faced up.

being undertaken by the Programme is to spread its message into categories beyond fresh and chilled. From cereals that contain under 5g of sugar per 100g and 0.68g salt per 100g, to a whole host of grocery lines from pasta and noodles to oven chips, baked beans and tofu – the development managers can advise retailers on how they can drive sales throughout their entire store. Ross Kerr, Director of the Programme since its inception, says: “Retailers can gain from the benefit of signposting these products for their customers as well as including them in promotions. People are looking for the healthier option and if they cannot find them they will go elsewhere.” January is the ideal time for retailers to refresh their low calorie offering as consumers begin their new year’s resolutions which tend to involve drinking less alcohol, being healthier or getting fit. Coca-Cola Life appeals to consumer demand for reduced calorie drinks and sweetness from natural sources. Rubicon Coconut

Water contains only 17 calories per 100ml, which is 50% less than standard fruit juice. Lower sugar options are increasing within the energy drinks market and are set to be worth £200m in the next five years. Rockstar Pure Zero fulfils the demand for a low calorie option with zero sugar. Vimto’s ‘Try Me Hot’ squash, and Schweppes Sparkling Juice Drinks range are well-suited for consumers looking to cut back. Amy Burgess, Trade Communications Manager at CocaCola Enterprises (CCE), says: “A good starting place is to look to the bottled water sector, which always sees a spike in popularity during the early months of the year as consumers are more health conscious. Sales are currently growing substantially, and as we hit dry January, this looks set to increase.” In that area, CCE will be heavily pushing its glacéau smartwater. In snacking, BEEFit has launched a range of high protein, sliced, spiced and dried beef biltong – the ideal choice for an on the go or post-workout snack. www.slrmag.co.uk

going dry this january? hit the bottle.

worth over £18.4m* in Great Britain available in 600ml, 12 x 600ml and 850ml pack sizes multi-million pound marketing support for 2016

UTC

EVERYTHING MUST GO!

CHANGING HABITS?

An eagle-eyed reader got in touch this month to inform UTC that Tesco was taking to extremes the products it was offering for those who wish to give up smoking. Perhaps the idea is that if you’re pregnant you’re less likely to light up?

CHRISTMAS GOES TO THE DOGS Over the Christmas hols, UTC tucked into more Turkey than Bernard Matthews with a hangover. He did so because it’s tradition; it’s what we do, damnit. Never let an opportunistic PR bod get in the way of tradition though – which explains why UTC returned to his desk after the hols to ‘discover’ that over 70% of men tucked into pork pies this Christmas. UTC can’t say he was shocked to discover this ‘fact’ emanated from a pork pie company’s research. While he can just about cope with the idea of someone taking a fancy to a pork pie, what really rips his knitting is the insinuation that Santa Claus himself would rather eat a pork pie along with his mince pie, rather than receive a carrot for his hard-working reindeer.

In all the kerfuffle over Christmas sales the East of England Co-op had one of those moments to forget. The chain intended to have a 20% off sale at its Clacton store, but an IT glitch meant that tills across its entire estate of 140 stores took 20% off the price of everything. Great news for shoppers, not so much for the Co – which took a full day to fix the error and lost £43,000 in revenue as a result, even if sales jumped up 4%. As one rather poetic shopper told the BBC, “It’s always been said that to err is human, but to really mess things up you need a computer and this is a perfect example.” Roger Grosvenor, Retail Officer at the Co-op said it was an honest mistake, and managed to blame technology for the whole sorry thing. “Unfortunately the computers at our Ipswich headquarters didn’t want to play ball, so it took a day and a half to get us back on song,” he said.

IT’S OFFICIAL: OLD PEOPLE ARE NUTS AS UTC enters his 9th, or possible 10th, decade on this planet, he’s more convinced than ever that his generational peers are off their rockers. Research conducted by ICM for the Co-op (for reasons UTC hopes become apparent near the bottom of the press release) reveals that one in 10 people never want to retire, with over 65s twice as reluctant to give up work. Which begs the question, WHIT?!!! Traditional retiring could be dying out, says the research, defying everything that UTC has ever believed. Just because he served in the trenches in Ypres doesn’t mean he wants to keep grafting into a second century.

UTC’S CAREER HURT BY HIS DASHING LOOKS At night, as he drains the dregs from another bottle of ownlabel whisky, UTC often stares into the abyss and wonders where it all went wrong. Turns out he’s too handsome for his own good, which explains a few things. Researchers from UCL School of Management have said that handsome men are rejected for competitive jobs. The research found that in competitive workplaces such as sales departments, good looks signalling competence can make handsome men seem threatening to future colleagues.

SLR | JANUARY 2016

www.slrmag.co.uk

24-26 2016 SECC JANUARY

• The only trade show in Scotland dedicated to the speciality food and drink retailer.

• Over 175 suppliers and hundreds of great food and drink products.

• Regional food groups from Orkneys, Scottish Borders and Northern Ireland.

• Launch Gallery for 30 brand new producers.

• Retail Seminars with all the latest tips from the experts.

To register for your free visitor badge or see a full list of exhibitors please visit: