SLR January 2017

KATIE LITTLER

What does the future of convenience look like?

DENNIS WILLIAMS JANUARY 2017 | ISSUE 165

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SLOW PROGRESS AT THS RATE

Business rates continue to hinder growth in the retail sector in Scotland, stifling investment and employment.

New SGF President outlines his plans

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SCOTLAND’S LOCAL SHOP REPORT In-depth review

HEATED TOBACCO INNOVATION PMI talk vaping NPD

FASCIA FOCUS

Choosing the right symbol for you

Time is running out to enter THE MOST REWARDING event in the industry! Entry Kit in this issue! Entry Deadline: 27th January Cover.indd 1

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January 2017

Contents

Contents ISSUE 165

NEWS p5

New business account from PayPoint Services provider introduces a “better” alternative to traditional banking. p6 Amazon to open unstaffed store Online giant’s staffless convenience store goes live in Seattle. p8 Thanks a million to GroceryAid The industry support network provides financial help this winter. p10 News Extra HFSS Ad Ban New advertising ban on High Fat, Salt and Sugar Food and Drink ads aimed at children. p16 Product News Cadbury drops the status of Fairtrade in favour of its own Cocoa Life initiative. p18 Off-trade News Diageo unveils its three-point plan to unlock latent alcohol sales through the convenience channel

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INSIDE BUSINESS p20 Opinion Katie Littler Future prospects and trend setting with the communications director at retail analysts him! p40 Trending Parliamentary Special Four Holyrood politicians give their views on the importance of the local retail industry. p24 Shop Local Report In-depth review of the second issue of the definitive guide to the health of the industry. p26 2 Minutes of Your Time Martin Inkster The UK and Ireland managing director of Philip Morris International takes time out to explain how the tobacco manufacturer is addressing the future with its vaping technology. p28 SLR Rewards winners A Champions League debut for the Beer & Cider category winner, and the Confectionery category could lead to an experience to remember. p30 SLR Rewards 2017 Don’t delay, the deadline for entry is this month, so make sure your business is in the mix for the most rewarding event in retail. p32 Profile Dennis Williams SGF President in an exclusive interview outlines his plans for his two-year term in office. p34 Woodlands local Looking forward to another busy year as our store increases excitement with events, ideas, and a visit from the Irn-Bru Xtra Can Man. p40 Hotlines JTI introduces new vaping variants, and a raft of new media campaigns get underway for the New Year.

FEATURES p42 Energy Drinks The fastest growing part of the soft drinks category represents an opportunity for retailers prepared to embrace the trend. p44 Tobacco Upheaval in this important trading category will mean both retailers and consumers will have much to learn in 2017. p46 Fascia and Franchise Overview Our comprehensive look at the options available to retailers considering a group. p66 Healthy Options Get on trend with some of the latest developments and products.

ON THE COVER p14 Business Rates Are business rates set to stand in the way of growth in the Scottish local retailing market over the next 12 months?

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News ACQUISITIONS Proposed large-scale sale gets green light from CMA

Reducing the bottle in water sales Encouraging consumers to recycle more is the driver behind a repackaging initiative at Coca-Cola European Partners’ (CCEP) bottling facility in Morpeth, Northumberland, which supplies retailers in Scotland and elsewhere. A packaging redesign, introduced for the Abbey Well Spring Water range, which is bottled from a local source, has allowed CCEP to reduce the overall plastic content by over 30% and make the packaging fully recyclable.

Retail sales growing ‘ahead of forecast’ Retail sales growth picked up speed in the year to December 2016, with volumes rising at the fastest pace since September 2015, according to the CBI’s latest monthly Distributive Trades Survey.

The survey showed that sales volumes for the time of year were considered well above average, but growth is expected to slow somewhat in the year to January. Meanwhile, orders placed on suppliers rose at the fastest pace in over a year, but are expected to be broadly stable in January.

Small Business Saturday hailed a success Spending in locally run retailers was up 15% on the previous year, according to figures

Co-op sale of 298 store to McColl’s receives approval Co-op’s proposed sale of 298 of its food stores to convenience chain McColl’s has been formally approved by competition regulator the Competition and Markets Authority (CMA).

McColl’s said the final clearance from the Competition would “substantially accelerate” its growth strategy.

McColl’s Chief Executive Jonathan Miller hailed the announcement and stated: “This is a transformational

deal.” McColl’s will begin to integrate the Co-op stores into its network by the end of this month, with all conversions due to be completed by August.

The purchase takes McColl’s estate of c-stores to around 1,300 in the UK. The Co-op said in July that it had decided to sell the stores because they were too small to stock a full range of its own-label goods, an area it was trying to increase.

The stores being sold have an average size of 1,700 sq ft, well below the Co-op’s ideal sized store of between 3,000 and 3,500 sq ft.

Miller said the firm was “delighted” that the deal had got the goahead. “We have a long history and proven track record of successfully integrating convenience stores into our estate, and we expect these newly acquired stores to make a significant contribution to our future strategic plans,” he added.

EDUCATION New learning tool kit for retail chain

TRENDS Shoppers shopping around more

One Stop for e-learning

Promotions trumping supermarket loyalty

Neighbourhood store chain One Stop has “re-engineered” its store colleague training programme and made it accessible to all franchisees for free.

The programme has been designed to ensure that franchisees and their store teams are compliant with Trading Standards and current UK retail legislation. In addition to compliance training, the kit tackles key issues such as colleague retention, customer service, and managing work load.

In addition to the online training, the kit contains a whole host of supporting documents from successful recruitment guides, application forms and

With changing shopping trends, just 12% of shoppers claim loyalty to just one supermarket brand, according to a survey by Valassis, the UK’s largest coupon and voucher services provider. Some 70% use two or three different stores, a significant decrease from 2014.

The survey also found that promotional offers are the deciding factor, with half of all women surveyed saying they

posters to interview best practices and learning certificates.

released in the wake of Small

would switch shops to be able to use coupons, although only o n e third of men say they are persuaded by such deals.

LEGISLATION

Tax not the answer, says soft drinks association Business Saturday, the annual event held in the first week in December.

The rise follows on from the even more impressive 24% rise in 2014/2015. £717m was spent

The British Soft Drinks association (BDSA) has criticised the UK government’s draft legislation, which proposes a two-tier tax on soft drinks. “Evidence worldwide does not suggest that taxes of this sort have any impact on levels of obesity,” said Gavin Partington, BSDA Director General. “However, we will review the legislation when published and will continue to work with Treasury officials during the process of implementation.” The Association says independent analysis from Oxford Economics shows the soft drinks tax will lead to over 4,000 job losses across the UK and a decline of £132m in the UK economy. See News Extra, page 10 ‘Ad ban on high fats, salts and sugars’.

in designated small businesses said the campaign director.

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News BANKING New solution for retailers cash costs

PayPoint announces business account to reduce banking costs PayPoint has introduced a business banking service option for its 29,000 retail customers that it says is ‘better than high street banking’.

Steve O’Neill, PayPoint’s Group Marketing Director, said that the company was responding to feedback from retailers seeking to reduce banking costs.

“The number one issue they face is high street banking costs,” said O’Neill. “We’re pleased to be able to offer this to our retailers as part of our continuing pledge to improve support and champion the issues they face.”

On-pack reward mechanisms work better New market research by Hive, the experts in unique code-enabled promotions, has provided a fresh look at how brands are running on-pack promotions, including the brewing concern behind the McEwen’s brand. “Charles Wells is a prime example of the value of a reward mechanism,” said Jonathan Jackson, CEO of Hive. “It used a cash-back offer that paid £5 by cash transfer into a beneficiary’s bank account. By the end of the promotion, Charles Wells had a redemption rate of 23% compared to an industry standard of around 1% for competition-led on-pack promotions.”

Research conducted by Hive

The company says the Cashplus Account is administered by APS financial and is available free for the first year (via a rebate) and an annual fee £69 thereafter.

Rich Wagner, the CEO of London-

based APS financial said they had already helped over 70,000 entrepreneurs and small businesses “disenchanted with how arduous and expensive it is to open a high street bank account.”

showed that 28% of all promotions carried by retailers are for alcoholic beverages. Across all major fast moving consumer goods (FMCG) brands, 87% of promotions now require proof of purchase, and about half do this

SUSTAINABILITY Pepsico introduce innovative farming techniques

British farmers more efficient thanks to PepsiCo

FORECOURTS

through unique codes printed on

Certas Energy chooses Bestway as partner

the pack.

Fuel supplier Certas Energy has chosen Bestway Wholesale as its preferred retail partner across its independent, Gulf and Pace branded sites.

The agreement will see current and new sites being introduced to Bestway’s Best-one Symbol, Xtra local Retail Club and depot network as a group retail partner of choice.

Certas delivers over 6bn litres of fuel each year in the UK and supplies 1,200

agreed that the retail rush at the

Black Friday a damp squib Auditors and accountants are end of November, known as Black Friday, failed to live up to the expected frenzy. Richard Lim, chief executive of independent research consultancy Retail Economics, said that sales rose just modestly in November. “Expectations were for another online shopping bonanza this year but sales growth was barely above the 12-month average.”

However, David Lonsdale, the director of the Scottish Retail Consortium, said total retail sales in Scotland recorded a third month of real-terms

PepsiCo UK & Ireland has announced that it has halved the amount of water and carbon used to grow potatoes for Walkers Crisps in water stressed areas as part of its ‘50 in 5’ commitments, launched in 2010.

Around 100 British farmers growing potatoes for the nation’s favourite crisps brand are now equipped to grow more British potatoes whilst using less water and emitting less carbon.

PepsiCo collaborated with world leading academics and applied state of the art technology to introduce innovative farming techniques that use energy and water more efficiently.

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dealer operated forecourts, along with their company owned sites, across the UK. James Hall, Symbol Development Director for Bestway Wholesale, commented: “I believe that we can add significant value to their retail partners – big and small, single or multisite.”

positive growth. The news was backed by grocery sales, which also grew in the same period.

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News CHARITY Big success for small business

Scots worry over finance According to the latest YouGov research* commissioned by credit information provider, Equifax, almost a third of Scots (32%) are very or fairly concerned about being able to meet their financial commitments in 2017. The new research also reveals that 30% of Brits think their financial situation will worsen next year; only 15% believe it will be better.

Lower paid workers feel least confident about getting a pay rise, with 53% of those earning

Cash raised in the Far North The staff of 727 Newsagent in Lybster, Caithness, almost matched their business name in sterling, when raising the superb sum of £704.79 to be donated to the British Heart Foundation.

The fundraiser coincided with Small Business Day on 3rd December, hence the seasonal visit

by Santa and various other fund raisers such as a raffle, bottle stall, mystery square and donations from customers.

£5,000-£14,999 not expecting to get a pay rise in 2017.

Robert Graham honoured at Family Business Awards Graham’s The Family Dairy

TECHNOLOGY Grocery store without checkouts opens

Amazon unveils staffless store

LEGISLATION Newsagents dismayed by tax decision

NFRN disappointed by go-ahead on sugar levy

added another trophy to its cabinet as Chairman Dr Robert Graham and his family business were awarded the Outstanding Contribution Award at The Herald’s Scottish Family Business Awards.

The Awards celebrate the country’s diverse and dynamic family business sector, while highlighting its contributions to local communities. Graham was honoured in recognition of his dedication, hard work and success in growing the threegeneration strong, Bridge of Allan-based family business.

Promoting retail careers IGD’s flagship charitable initiative, Feeding Britain’s Future, helped 17,000 people in 2016 – from unemployed 18–24 year olds to students exploring their options at school.

With support from over 2,000 volunteers from nearly 300 food

The online shopping conglomerate Amazon, recently criticised in the news over working conditions at its Dunfermline distribution centre, has unveiled what it calls “The Just Walk Out shopping experience”, dispensing with the check out in favour of technology that wirelessly tracks shoppers selections and charges accordingly to their account.

The online retailer has registered a British trademark for Amazon Go, which is the name of their trial store in downtown Seattle, due to open to the public at large shortly. The trail is currently restricted to Amazon employees only. No dates have been set for UK openings, but the company’s slick

Responding to HMRC’s consultation on the sugar levy, the National Federation of Retail Newsagents strongly urged the government to can the plans, and to focus instead on education and self-regulation to change consumer behaviour. The NFRN warned that a soft drinks tax would negatively hit local shops and pubs across the nation, potentially costing retailers £8,100 per year in

and grocery companies, the

programme has showcased the vast range of rewarding jobs available in the industry and helped develop key skills such as communication, teamwork

video presentation is designed to glamorise the concept of nointeraction convenience shopping. In press reports on automation in general, the British Retail Consortium has predicted around 3m retail jobs could go by 2025.

sales.

In addition, figures released earlier this year showed that a soft drinks tax would lead to over 4,000 job losses and a £132m decline in UK GDP. NFRN Chief Executive Paul Baxter stated: “The government’s decision to push ahead with this ill conceived plan will do nothing to tackle the real challenge of childhood obesity, while doing enormous damage to the independent retail sector. The Chancellor should use the time until the March 2017 budget to put together a plan to genuinely tackle the obesity problem that politicians and independent retailers can support.”

and decision-making.

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News SEASONAL Christmas data suggests festive spending is over the £20bn mark

Camelot accepts Gambling Commission decision Camelot has accepted the outcome of the Gambling Commission’s investigation into an allegation of fraud involving a National Lottery prize paid out in 2009, and has paid the financial penalty imposed.

The allegation was not related to The National Lottery draws, only to the controls that were in place at the time to prevent a fraudulent claim on a deliberately damaged ticket.

Retailers benefit from ‘out of control’ spending’ A new survey from Epos Now says retail businesses are

UK shoppers ‘spend £20.6bn on Christmas’ The UK grocery market was set to experience 1.2% growth over the Christmas period, with shoppers spending £20.6bn, according to forecast figures from IGD. Joanne Denney-Finch, Chief Executive of IGD, said: “Although our forecast indicates relatively modest growth, with overall prices lower than a year ago, this would represent a strong result for retailers and manufacturers.

“For many shoppers (54%), Christmas is a time to splash out on

food and groceries, yet the savvy shopping habits established over many years still apply during the festive period. Almost half (46%) collect coupons or points to use at Christmas, representing a clear opportunity for retailers to lock in purchases.

“By mid-November, over a half of shoppers (53%) had already bought some food and grocery items for Christmas but this doesn’t mean they avoided the usual late rush. Six in ten (63%) of those early shoppers

expected to use up and replace at least some of the festive items already purchased.”

Over half (53%) of shoppers said they buy food and grocery products on impulse at Christmas. One in four (40%) shoppers is particularly open to trying new products at this time of year and a quarter (26%) say browsing in shops helps inspire them for their Christmas meals, so it was a time for retailers to really put the spotlight firmly on innovation to excite shoppers.

among the beneficiaries of ‘out of control’ spending over the Christmas period.

The study says the industry

CHARITY Pay-outs from industry fund reach almost £1m.

SERVICES

GroceryAid delivers winter windfall

AO teams up with CollectPlus

is reaping the rewards of a consumer spending spree with revenue soaring in UK cities by an average of 13.5% in December.

The research that polled 1,000 UK consumers also found that just under a quarter (23%) admit to having no budget at all during the festive season.

Non-cash payments ‘set to soar’ in next decade The value of non-cash payments in the UK and US will reach £1.44 trillion ($46 trillion) by 2026, says new research from global law firm Paul Hastings.

In the UK, this is a 26% increase on 2016’s figure of £1.14 trillion, with there being 19.1 billion contactless transactions per year within a

Thanks to an excellent fundraising year, GroceryAid has paid out more than £900,000 to beneficiaries this winter. In what can be a very difficult time of year for many, the extra support will help those in need get through the winter cold.

Alongside the regular quarterly payment, beneficiaries received an additional £100 to manage winter fuel costs. Beneficiaries with dependents also received £150 for each child, with the charity helping a total 240 children. The generous support of

companies has once again ensured that every beneficiary will be sent a voucher hamper, this year worth up to £64.

In addition to this financial support, Christmas outings have been taking place across the country for more than 700 beneficiaries. These outings range from theatre trips to lunches and provide vital social interaction and an enjoyable day out.

The confidential GroceryAid Helpline is available on 08088 021122 or visit www.groceryaid.org.uk.

In a collaboration between convenience and online retailing, the web-based electronics supplier AO has teamed up with the CollectPlus network to allow customers to receive their orders at member stores, free of charge to the customer. CollectPlus already partners with about 90 retailers, and several hundred convenience stores in Scotland. “AO shoppers really appreciate choice and the CollectPlus service has become an invaluable option for many, particularly those who cannot have items delivered to home or work,” said CollectPlus chief executive Neil Ashworth.

decade.

WORK Retail sector jobs mean less travel and a better work life balance

Zapper targets ‘order ahead’ technology

Convenience retail jobs are ‘better for health’

Mobile payment, vouchering

New occupational health data published by the Office for National Statistics (ONS) suggest that those working in the local retailing sector are more likely to be healthy than those in many other industry sectors.

Around 3.7 million workers in the UK commute for two hours or longer every weekday. This contrasts with findings from this year’s Scottish Local Shop Report which notes that the average commute to work for local retail staff is just 13 minutes, and over half of those journeys are made on foot or by bicycle.

Average travel costs too are low. Workers in the local retail sector spend just £2 per day. For the rest of the workforce relative costs are rising. Frances O’Grady of the Trades Union Congress said: “Long commutes eat into our family time and can be bad for our working lives too.”

and loyalty app Zapper has partnered with ‘payments without queues’ platform to introduce pre-ordering technology to offer users a seamless orderahead, payment and rewards experience. The order-ahead capability lets retailers increase efficiency and footfall, when used with Zapper’s app.

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News Extra

Health | Advertising

NewsExtra IN-DEPTH FASCIA AND FRANCHISE FOCUS P46 CHILDREN’S ADVERTISING Tough new rules imposed to restrict print, cinema and online advertising

Convenience Matters with the SGF We know from the recently published Scottish Local Shop Report that almost 80% of customers in convenience stores pay by cash. This shows how important a c-store is at providing a facility which lets people buy goods and services in cash and so circumvent the need for a bank card or cheque book.

This issue of financial inclusion underscores the importance of c-stores to communities, not just in terms of traditional community benefit – supporting local charities, sponsorship, donations and so on – but the c-store as an important economic asset which ensures the sustainability and viability of many communities.

We know the cost pressures facing retailers and their cumulative impact. A list of them was put quite forcefully to Keith Brown MSP, the Cabinet Secretary for the Economy, at the recent meeting of the Cross Party Group on Independent Convenience Stores. We might be able to do something about these pressures most effectively by showing that by damaging c-stores these cost pressures will ultimately damage communities.

If customers can no longer get access to bill and utility payment services in cash or if constantly increasing bank charges push retailers to move toward card and contactless payments, or if a shop goes out of business because of constantly increasing costs, then a large section of the community will experience real financial exclusion which will have a significant knock-on effect on Local Authorities, Housing Associations and other local services.

Communities need our stores and that’s a message we will be hammering home in 2017.

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New kids ad ban on high fats, salts and sugars New rules banning the advertising of a raft of ‘HFSS’ foods and drinks in the media from July 2017 have been broadly welcomed by the industry.

Tough new rules banning the advertising of high fat, salt or sugar (HFSS) food or drink products in children’s media have been broadly welcomed by health bodies and the retail industry.

The rules have been introduced by the Committees of Advertising Practice (CAP), which represents the advertising profession at large. The rules will apply across all nonbroadcast media including in print, cinema, online and in social media.

HFSS food and drink ads have long been banned on children’s TV, but, as young people move away from traditional media towards new and social media, there’s a consensus to keep up with changes in the way commercial messages are delivered.

The rules, which will apply in media targeted at under-16s, will come into effect on 1 July 2017.

Chairman of CAP, James Best said childhood obesity is a serious and complex issue. “These restrictions will significantly reduce the number of ads for high, fat, salt or sugar products seen by children. Our tough new rules are a clear demonstration that the ad industry is willing and ready to act on its responsibilities and puts the protection of children at the heart of its work.”

The Scottish Grocers’ Federation (SGF) has also given a thumbs up to the new regulation, which will be monitored by the Advertising Standards Authority.

SGF did note however that UK companies have a generally good record of compliance and, while the details are quite complex, they will be incorporated into the CAP Code.

“We fully support this landmark move,” said Ian Wright CBE, Director General of the Food and Drink Federation (FDF), the voice of UK manufacturers. “Last year, FDF announced its backing for major changes to the way food and drink is advertised, based on our belief that non-broadcasting advertising rules should be in line with the strict rules in place for TV.” One health body also called the move another positive step forward. Professor Neena Modi, President of the Royal College of Paediatrics and Child Health, said children are influenced a great deal by advertising. “With over a fifth of children in the UK overweight or obese when they start primary school and a third by the time they reach year six, surely it is time for Government to strengthen rules around all advertising, and in particular ban the advertising of foods high in salt, sugar and fat on television before the 9pm watershed.”

Ian Wright CBE, FDF Director General

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Comment

NEW YEAR, NEW CHALLENGES EDITORIAL

There’s a recurring theme in this edition of Scottish Local Retailer. If last year was considered a year of upheaval, then 2017 looks set to outdo the previous 12 months.

Already, we’ve had significant change flagged up in the advertising landscape, with the removal of high fat, salt and sugar drinks and food from ads aimed at a younger audience.

The first few months of this year will also see major new legislation introduced – not least EUTPD2 and the possibility of some form of sugar tax, both of which will require further changes to the way retailers do business and how they sell products. Calls continue for a better business rates model, against the backdrop of a continued decline in the high street – the subject of our lead story this issue. Behind the counter, the further implementation of wage and pensions regulations will make business significantly more complicated and costly. We’re all in favour of securing the future for the sector’s 42,000 employees, but we have to be aware of the vulnerability of the businesses that support that diverse workforce. These are issues that are taken up by the new President of the Scottish Grocers’ Federation, the well-known figure of Dennis Williams, who speaks exclusively to SLR in this issue.

Then there is the heated debate over Brexit, and the inevitable passing of a raft of legislation, all of which will have an impact on business sooner or later. If there is any time left over to actually run your business, well done, but don’t forget, HMRC’s Making Tax Digital proposals are still on the table, even if they are, mercifully, years behind schedule. Fortunately, few retailers are in quite such a pickle over their financial affairs, but many will have to work very hard indeed in the coming year to stay in financial health.

Returning to that healthy theme, it’s unlikely we’ll find dissent on any initiative aimed at making our children healthier, nor anything designed to improve the health of our adult population either. There is a growing feeling though that convenience retail is bearing a substantial burden of the need for societal change, without any adequate understanding of the cost to the industry. It could be argued that the symptoms of poor health, obesity, and lack of exercise are being are being treated, without the underlying causes being properly addressed. We shouldn’t forget that, through initiatives like Healthy Living Scotland, the retail industry has already taken a very proactive role, recognising the part retail can play in reaching deep into communities.

It’s that connection that makes it possible for the convenience sector to deliver a very worthwhile grassroots programme of changing the way children and young people look after their health.

Making changes is nothing new to the retail sector, even changes as radical as shifting Scotland’s diet on to a more healthy footing, or taking the lead in sustainable employment as the biggest private sector industry in Scotland.

Many changes will take more than 12 months and, when we come to look back on 2017, it’s just as likely we’ll be saying something similar about the next 12 months as well.

Publishing Director Antony Begley 0141 222 5380 | abegley@55north.com Editor Simon Walton 0141 222 5387 | swalton@55north.com Editoral Assistants Iain Hoey 0141 222 5385 | ihoey@55north.com Émer O’Toole 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 5382 | dstephenson@55north.com

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

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

CIRCULATION & SUBSCRIPTIONS Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers may obtain copies by annual subscription at £50 (UK), £62 (Europe airmail), £99 (Worldwide airmail).

55 North Ltd, Waterloo Chambers, 19 Waterloo Street, Glasgow, G2 6AY Tel: 0141 22 22 100 Fax: 0141 22 22 177 Website: www.55north.com Twitter: www.twitter.com/slrmag DISCLAIMER The publisher cannot accept responsibility for any unsolicited material lost or damaged in the post. All text and layout is the copyright of 55 North Ltd. Nothing in this magazine may be reproduced in whole or part without the written permission of the publisher.

All copyrights are recognised and used specifically for the purpose of criticism and review. Although the magazine has endevoured to ensure all information is correct at time of print, prices and availability may change.

This magazine is fully independent and not affiliated in any way with the companies mentioned herein.

Scottish Local Retailer is produced monthly by 55 North Ltd.

SIMON WALTON, EDITOR © 55 North Ltd. 2017 ISSN 1740-2409.

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Cover Story

£

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Business Rates

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VIEWS ON STORES AND REGIONS

Saturated Under Potential

SCOTLAND

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NORTHERN IRELAND

RATES STANDING IN THE WAY OF GROWTH?

NORTH EAST YORKSHIRE AND HUMBER EAST MIDLANDS

NORTH WEST

WALES

Perran Jervis, partner and head of retail & consumer goods at TLT

SOUTH WEST

LONDON SOUTH EAST WEST MIDLANDS

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EAST ANGLIA

Fresh indicators place Scotland near the top of the ‘room for retail growth’ charts. Yet the continuing issue of business rates has been identified as a key stumbling block on the road to actually achieving that growth, particularly for larger businesses.

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44%

38%

38%

32%

29%

24%

21%

RELOCATING STORES

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In September of last year, 13 of Scotland’s leading business representative groups combined to sign a joint letter to the Scottish Government calling for the restoration of a level playing field with England, removing the supplement levied on 29,000 medium-sized and larger commercial premises in Scotland.

However, in a contrasting and broadly welcomed move, the Cabinet Secretary for Finance, Derek Mackay, announced in his draft budget for 2017-2018 a cut of 3.7% to the business rate poundage as applied to convenience-sized businesses, and that 100,000 properties would become completely exempt from business rates through an increase in the small business bonus scheme threshold.

Even so, business rates are still perceived as a barrier to investment in new stores. Over half of those surveyed for the TLT report

HOW RETAILERS PLAN TO MITIGATE INCREASED RATES

CUTTING STAFF NUMBERS

LEVEL PLAYING FIELD

One opportunity identified by the TLT report surrounds travel hubs. Stores near railway terminals or park and ride locations benefit from high footfall from time-pressed consumers. The ability to support click & collect services, notably in forecourt locations, is also part of the drive towards increased investment.

CUTTING OTHER COSTS

The TLT report puts Scotland alongside the South West of England, the West Midlands and London as the areas with the greatest retail growth potential. However, grounds for optimism are tempered when examining how the industry might go about converting that potential into real growth. For many retailers, one of the issues most likely to hinder that conversion is business rates. Although often thought of principally as a problem for larger retailer chains who bear the burden of business rates most heavily, the knock-on effects of reduced high street activity affects convenience retailers too, particularly city centre outlets.

The tax revenue the Scottish Government generates each year from the large firms business rates supplement has soared from £14.4m to £124.8m inside a decade, as figures contained in answers to parliamentary questions have revealed.

“Business rates in general and the large firms’ rates supplement in particular have been ratcheted up year after year with little regard to trading or economic conditions,” argued Ewan MacDonald-Russell, Head of Policy at the SRC. “As these taxes have gone up we’ve seen retail jobs lost and shops closed. These increases in the Large Business Supplement have made it clear to businesses looking to invest in Scotland that they will face higher costs here than elsewhere in the UK. This short-term approach of raising taxes today will lead to lower tax revenue in the future as businesses go elsewhere either online or outside Scotland.”

The continuing hike in business rates

BRIGHT SPOTS FOR RETAILERS?

SHUTTING STORES

CONVERTING POTENTIAL INTO REALITY

£

(53%) believe that business rates will have a more negative impact this year than last.

Perran Jervis, Partner and Head of Retail & Consumer Goods at TLT, said that this will likely hit investment and, for those store operators who lease their premises, increased costs could be around the corner. “Landlords may also face rent review requests from retailers to minimise the impact of the recent rates revaluation, despite transitional relief,” he said.

ASKING LANDLORDS TO REVIEW RENT

£

clearly hits smaller retailers hard too. The effect of a near nine-fold increase in larger firm tax levies has not been accompanied by any growth in the convenience sector, as might have been expected. Far from it. The SGF has already called for more small businesses, including convenience store retailers, to be completely taken out of the Business Rates system in Scotland, and welcomed the draft budget.

In its submission to the Barclay Review Group (the body established by the Scottish Government to reform the business rates system), SGF argued that such a move would create a fairer, less complex, more efficient and more cost-effective system. The SGF also recommended that occupier improvements should be excluded from any revaluations to encourage investment and avoid an unfair tax burden being applied to any retailer who had upgraded and refitted their store.

Despite the optimism of the TLT report, SGF Chief Executive Pete Cheema has already highlighted that around 3,000 jobs have been lost in the convenience store sector and store numbers fell by almost 300 in 2015, taking contraction in the sector back to the dismal 2012 levels. “We need to reduce the rates burden on retailers and taking as many of them out of the system as possible is the best way to do this,” he said.

Government plans to give local authorities the power to cut rates have received mixed reviews, thanks to uncertainty about how that would impact on services and charges overall.

However, over a third of retailers were hopeful that local authorities would set rates with more sensitivity to local trading conditions.

DOWNSIZING STORES

S

cotland has been identified as one of just four UK regions which has potential to sustain more retail outlets. That’s according to a survey of the UK’s top 100 retailers carried out by global retail research agency Conlumino on behalf of law firm TLT. Although aimed squarely at the high street end of retail, the optimistic report contrasts starkly with recent data from the Scottish Retail Consortium (SRC) that shows that there are 1,700 fewer shops and 10,000 fewer retail jobs in Scotland than there were just seven years ago.

Local retailing has not been immune to the downturn, with the number of outlets continuing to fall. Despite that fact, the recently published Scottish Grocers’ Federation (SGF) Scottish Local Shop Report shows that Scotland still leads the UK in terms of convenience retail locations per head of population.

Cover Story

REDUCE FUTURE STORE OPENINGS

E BER

Business Rates

JANUARY 2017 | SLR

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News

Products

Abbey well encourages recycling Coca-Cola European Partners

ProductNews

(CCEP) has launched a new “twist” bottle format and label for its Abbey Well Spring Water, designed to be more environmentally friendly and encourage consumers to recycle more.

The innovation from British designers was enabled following a £14m investment at CCEP’s bottling facility in Morpeth, Northumberland. The bottle requires less energy to make, transport and recycle, CCEP says. The new design uses up to 32% less plastic than in the previous bottle design.

Petit Filous reduces sugar Yoplait has said that it will

THE LATEST FROM OUR WOODLANDS STORE INCLUDING A VISIT FROM CAN MAN P34 SOFT DRINKS AG Barr brand Irn-Bru packs for Robert Burns

Raise a glass to the Bard Irn-Bru has unveiled a range of limited-edition 750ml bottles to help consumers celebrate Burns Night (25th January).

The special packs feature a graphic portrait of Scotland’s national poet which, on closer inspection, is drawn in the words of three Burns’ poems – ‘Address to a Haggis’, ‘Tam O’Shanter’ and ‘To a Louse’.

“Shoppers are actively looking for products which reflect their Scottish heritage around Burns Night and

our limited-edition packs will enable retailers to tap into this important sales opportunity,” said Adrian Troy, Marketing Director for AG Barr.

“The 750ml bottle is the ideal celebration pack and we expect demand to be high as people ‘raise a glass to the bard’ – literally.”

The limited-edition packs will be backed by digital activity and supported in-store by Burnsbranded point of sale.

reduce the amount of sugar in Petits Filous by 17%, as part of a ‘significant’ reformulation that will also see the amount of vitamin D increased to 50% of the reference intake.

Tim Rycroft, corporate affairs director for the Food and Drink Federation, commented: “For many years now, food and drink manufacturers have been

CONFECTIONERY New partnership to help native farmers

Cadbury supports sustainability with Cocoa Life Cadbury and Fairtrade have announced a commitment to help more cocoa farmers by extending its Cocoa Life programme to all Cadbury products in the UK and Ireland by 2019. Starting in May 2017 with a phased roll-out, all Cadbury products will be covered by a single sustainable sourcing programme – Cocoa Life.

Fairtrade will become a partner for the programme, working together to secure the longterm future of cocoa farming communities. By 2019, all Cadbury chocolate in the UK and Ireland will display the Cocoa Life branding. As a result, Cadbury Dairy Milk products that were previously Fairtrade certified will no longer carry that mark.

removing salt, fat and sugar from recipes while ensuring that consumers continue to love the

RESPONSIBLE DRINKING

taste of their favourite products.

Budweiser promotes responsible drinking

Getting reformulation right is often costly and time-consuming but our industry is committed to doing the right thing.”

Moma Porridge Pot New this month, Moma’s Apple & Cinnamon Porridge Pot is gluten and dairy free, and Vegan Society approved. The complete range is available in 60g pots (RRP £1.30), sachets (RRP £0.75) and boxes of five sachets (RRP £2.99).

Tom Mercer, founder of MOMA Foods said, “We are seeing an increasing demand for dairy free and gluten free options. As consumers look to cut down on their intake of dairy and gluten for allergy and health reasons, the new Apple & Cinnamon

In its biggest ever UK responsible drinking campaign, Budweiser launched a partnership with Uber to offer free rides to all its new users.

The campaign featured the UK television debut of Budweiser’s famous and unorthodox Helen Mirren ad, which featured in the Super Bowl in 2016. The Oscar-winning British actress delivers a clear responsible drinking message to UK viewers.

MINTS

Mentos Me & You programme Mentos has launched a new on-pack loyalty programme.

The Me & You campaign gives access to a unique code which unlocks a series of special offers on ‘must-have experiences’. The incentive is set to boost sales with big name partners including Entertainment One UK (eOne Films UK), Jongleurs, English Heritage, British Military Fitness, TeamSport, Lucky Voice and Sticky9.

Shoppers can obtain a code found inside the packaging of singles and £1 PMP, and then enter it online to receive one of many promotions. Experiences include 2-4-1 cinema tickets or comedy nights, online karaoke subscriptions, fun gift ideas, days outs and free exercise classes.

Porridge Pot is designed to meet this growing trend.”

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21/12/2016 10:01:55

logicvapes.com

LOGIC LQD. E-LIQUID DELIVERED PRECISELY.

News

Off-Trade

Blossom Hill Spritzes up Treasury Wine Estates has announced its intention to secure

Off-TradeNews

a bigger share of the UK’s fruit wine market next year, starting with the renaming of its Blossom Hill Fruit Bloom range under the new Blossom Hill Spritz moniker.

A new look is being given to the trio in order to improve onshelf standout and to bring the look into line with the recently refreshed Blossom Hill master brand.

Morgenrot builds portfolio Morgenrot has boosted its craft beer portfolio with brews from a Barcelona-based brewery. The Manchester-based beer and wine importer has secured the UK distribution rights for Catalonia’s BeerCat Brewery, which is known for its internationally-inspired brews.

Morgenrot’s commercial director, John Critchley, said:

THE SECOND ANNUAL SCOTTISH SHOP LOCAL REPORT REVIEWED P24 BEER Spring rebranding scheduled for famous brew

Carlsberg celebrates Danish heritage Carlsberg is set to take the first step towards revitalising its flagship brand, with a bold relaunch of Carlsberg Export from February 2017 and a £15m marketing spend designed to connect with millennial drinkers.

The campaign will celebrate the brand’s Danish heritage and taps into the move towards premiumisation in the beer category. All consumer touch points have been refreshed and a range of bottle and can formats will be available, including a new premium 330ml-sized bottle, a 660ml bottle and new outer packaging.

The premiumisation of the Carlsberg brand will continue into early summer 2017, when limited edition packaging will be launched for the Carlsberg 3.8% ABV beer and the bottle increased to a 330ml size.

Liam Newton, vice president of marketing, Carlsberg UK said: “The fundamental reason for the decline in the beer category is the fact the biggest segments – standard and premium lager – are losing relevance with millennial consumers.

“Standard and premium lagers recruit new drinkers, and if consumers don’t enter through these segments, it is unlikely they will move into world and craft. This means brands like Carlsberg and premium beers like Carlsberg Export remain vital to the long-term health of the entire beer category.”

“Our Spanish beer stable is a growing and profitable category for our company so we are

APPOINTMENTS Logistics chief steps up at Molson

delighted to strengthen it with

Molson Coors appoints new MD

the arrival of these special beers.”

Marshmallow Gin Naked has re-invented the marshmallow with a range of handmade spirit products, including a new marshmallow infused gin and vodka.

According to the brand, customers were calling out for alcohol flavours, and they responded by releasing Vanilla Bean Marshmallow Gin and a Salted Caramel Marshmallow

Molson Coors has named Phil Whitehead as the Managing Director of its UK & Ireland business. He has been with the company for 11 years, most recently as chief supply chain officer in Europe.

Whitehead said: “We have established an ambitious, customer-focused team in the UK and Ireland that is leading the way in transforming the industry. The political and legislative landscape has changed significantly since the start of the year, yet our business continues to thrive.

“We have the best portfolio we’ve ever had. I look forward to working with our reinvigorated team and our loyal customers to grow our business further in 2017 and beyond.”

Vodka, merging a growing interest in artisanal food and drink.

Thatchers Cider Barn Thatchers Cider is introducing a new series of special vintage, limited edition ciders under the sub brand Cider Barn. The first three Cider Barn ciders to be released, following the 2016 harvest, will be Spartan; Morgan Sweet & Grenadier; and Redstreak. Each of the Cider Barn ciders will be priced at

SPIRITS Scottish vodka available in strawberry flavour

Arbikie unveils berry vodka Farm-to-bottle distiller Arbikie Highland Estate has launched an exclusive, limited edition strawberry vodka. Distilled using last summer’s strawberries grown on family land adjacent to the distillery, Arbikie Strawberry Vodka (RRP £45) packs a 50% ABV punch.

The distiller has further expanded its portfolio with the addition of a wheat vodka variant to its signature potato offering.

RESEARCH

Consumers can’t count...

New research conducted

by Diageo reveals that 84% of people admitted they were unfamiliar with how many calories were in their drinks, while a further 59% of people revealed they didn’t understand the concept of a unit and how much this equated to.

More than half the UK incorrectly believe that when it comes to potency that a standard spirits measure or ‘unit’ is stronger than standard beer and wine equivalents.

In an effort to address confusion and help people to enjoy alcohol as part of a balanced lifestyle, Diageo is currently rolling out on-pack alcohol content and nutritional information per typical serve across the UK.

£2.00 for 500ml.

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Off-Trade

News

SPIRITS Manufacturer makes new push to drive alcohol sales in-store

Diageo three point plan Q: I have the opportunity to purchase a poorly performing c-store.

My accountant warns that trading difficulties may impact on the premises licence. Is this true?

With new insight revealing 90% of UK households buy alcohol, but only one in three buys it through convenience, Diageo has identified a £455m untapped opportunity for alcohol sales within the sector. To help retailers unlock this sales potential, Diageo has extended its My Store Matters programme with a new category advice initiative ‘Inspire.

Display.Sell’.

‘Inspire’ aims to engage convenience shoppers by

highlighting key missions and focusing on visibility and range. ‘Display’ emphasises the importance of making the category easy to shop by focusing on blocking, brand signposting and clear pricing. ‘Sell’ aims to remind retailers to improve the value perception of the convenience channel through stocking PMPs, running in-store promotions and upskilling staff to drive associated purchase.

According to latest estimates,

there is an opportunity for retailers to grow their alcohol sales by up to £9k per year by encouraging shoppers to consider convenience.

Julian Taylor Green, a Spar retailer said: “Alcohol is extremely important to my business as both a footfall and profit driving category. To maximise my sales it’s essential that I get the core range right, ensure I have the best layout and that I keep my display refreshed.”

BUSINESS Marketing and brewing deal signed

C&C Group extends AB InBev partnership AB InBev and C&C Group have extended their existing partnership in a deal that will see C&C distribute AB InBev’s beer portfolio including Becks, Stella Artois, Budweiser and Corona in Scotland, Ireland and Northern Ireland.

In return, AB InBev will assume responsiblity for the sale and trade marketing of C&C’s cider portfolio including brands such as Magners, Chaplin & Corks and Blackthorn in England and Wales, including on-trade and off-trade national accounts.

Stephen Glancey, CEO of C&C Group, said: “We are delighted to renew and expand the scope of our long term partnership with AB InBev, the world’s leading beverages company.

“We will continue to sell and distribute AB InBev’s beer brands into the independent on- and off-trade in Scotland, Northern Ireland and the Republic of Ireland alongside our local champion brands – Tennent’s, Magners and Bulmers and our growing portfolio of speciality beers and ciders.”

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Off Trade News.indd 19

SPIRITS

Sibling Gin adds new winter edition Premium gin brand Sibling has added a new flavour to its growing range.

The Winter Limited Edition is infused with cranberries and clementine peel.

“Luxuriously fruity with a bitter sweet finish, it blends perfectly with classic tonic, warming ginger ale or cloudy lemonade,” the company said.

Niall says: Yes, if the business that holds the premises licence enters administration or liquidation then the premises licence must be transferred in the first case to the administrator or liquidator. This transfer must lodged within 28 days. If this doesn’t happen then the store will no longer be able to sell alcohol and any future owner will have to start the licensing process afresh.

Q: My local licensing standards officer mentioned there was concern in the community about a rise in the number of adults buying alcohol on behalf of local teenagers.

Is there anything I can do to help reduce that risk?

Michael says: Consider external CCTV with a TV monitor at the front counter to allow staff to see what is happening outside the store.

This will allow staff to check for suspicious activity. It is of course important that you train staff to recognise signs that an adult may be purchasing alcohol on behalf of a person under 18 and also what action they should take, such as refusing the sale.

Q: I’m keen to display other non-alcoholic products on my store’s alcohol shelves as I think it would help drive up impulse buys.

I’m not sure if this is allowed under the licensing legislation?

Niall says: Only alcoholic products and a very limited range of other products are allowed in the alcohol display area. You can see the extent of this area on your premises licence’s layout plan.

The other products that can be displayed in this area are products pre-packaged with alcohol, soft drinks, newspapers, and branded non-alcoholic products such as glassware with the name of an alcohol brand. This restriction is to make sure that shoppers have to make a conscious decision to visit the alcohol sales area.

JANUARY 2017 | SLR

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21/12/2016 11:15:16

Inside Business

Opinion | Katie Littler

WHAT IS THE FUTURE OF CONVENIENCE?

In a year that may well be defined by the changes likely to take place in retail, and in society at large, Katie Littler, Communications Director at him!, outlines her thoughts on the trends that may impact on the convenience sector this year - and what they could mean for your business.

BY KATIE LITTLER

L

ast year will go down in history for many reasons. We’ve lost many heroes: from David Bowie and Alan Rickman, to our very own industry super-star Ewen Chisholm. The UK has chosen to exit the EU. America has chosen a reality TV star. The big question is, what will 2017 bring?

Shopper sentiment right now seems to be ‘Hope for the best, but prepare for the worst’ with consumer confidence wavering but shopping habits actually currently remaining pretty stable.

Many are focussed on simply surviving rather than thriving, but that’s not our philosophy at him! We are firm believers that if you listen to your shoppers, and of course react to what they’re saying, then they will want to - even need to - support your business and remain loyal to you.

That’s what our annual Future of Convenience event is all about. This year attendees will be looking at the mega-trends emerging in the coming 12 months and beyond.

Shoppers are increasingly concerned with ethical and moral issues, so expect a focus on eco-responsible packaging and reducing wastage. Consumers will place their trust in brands that epitomise ‘honest imperfection’, who say: “we’re not perfect, but we’re doing something about it!”

The casual connoisseur may not be how you think of the generation glued to their smartphones, but they’re likely tapping in to a wealth of information, and making very real buying decisions based on

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Opinion.indd 20

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21/12/2016 09:36:47

Inside Business

Katie Littler | Opinion

that fund of knowledge.

Consumers are becoming more knowledgeable about interests, cuisines, nutrition, experiences – information is at their fingertips and they’re not afraid to use it. There is a rise in ‘crowd intelligence’ where people are trusting other consumers rather than ‘experts’.

Diversification of the health trend is very likely to be a major debating point in the years to come. We’re seeing a shift from focussing purely on healthy body, to healthy mind. How we address health will need to change as we further understand that health isn’t generic across life stages.

Experience over product is not a new concept, but it’s gaining more ground as traditional life fulfilments, like home ownership, become less attainable, at the same time as simple luxuries appear more frequently on the shelves.

Millennials are favouring experience over material possession. They’re still going to need a pint of milk and a newspaper, but winning retailers aren’t just selling products, they are providing a service to their customers.

The people who walk through the door aren’t transactions, they are living, breathing individuals who are happy to spend money to make their lives easier, to save them time, to help them stay healthy, to cheer them up on the way home from work, and a myriad other reasons to express themselves. You get the idea.

Fast Consumption, personalisation, instant gratification, and economic uncertainty have all contributed to the ‘One Swipe Generation’.

Buying or selling a retail business?

If you’re buying or selling a retail-based business, it’s vital that you have a reliable and accurate stock valuation for the business.

Whether it’s a convenience store, newsagent, petrol station, sports shop, card shop or retail store, we’ll ensure that your business sales are supported with the professional and accurate stock valuation you need.

Our business sale and transfer valuation services include a thorough date check of all stock and margins agreed to maximise gross profit.

We’ll agree the correct discounts to be used with all the parties to ensure a reliable and undisputed count, with detailed valuations and certificates produced on the day of the count for immediate use.

We conduct business sale stock valuation for businesses across the UK including some of the biggest and best names in retail like Costcutters, Day-Today, Best-One, Londis, Lifestyle Convenience Stores, Mace, Premier, Best-In, Shop Smart, independent Spar stores and Keystores.

Whatever your business schedule, we can support it. Stock counts can be carried out to meet whatever time scales you need to follow, including short-notice valuations.

R O TF S UN R O BE SC EM !

DI M W % F NO 10 SG www.slrmag.co.uk

Opinion.indd 21

Things are getting faster and easier and more convenient. We have more time to squeeze even more things into our daily lives. Have you seen Amazon Go? The concept merges lots of wireless technologies to create a convenience store where customers walk in, select their items and walk out. No human interaction, just electronic, and all charged to their account.

The future of convenience? Perhaps or perhaps not, but certainly part of the future.

Stocktaking:

We are professional, experienced and affordable.

We specialise in providing professional and affordable

stocktaking services to convenience stores, retail stores and petrol stations throughout Scotland and the North of England, with a close eye, always, on maximising your profits.

Over 40 years of experience ensures that we deliver a full range of stock counts, data based counts and EPOS stock file updates with a high level of accuracy, to your time-scale.

We understand the long hours that you open, and your need to always be available for customers as a vital local business which means you need a stock take completed quickly and efficiently, at a time that suits you and your customers.

That’s where we can help. Our many years of experience allows us to carry out your stock take quickly and efficiently, causing minimum disruption to your business, your staff, and importantly your customers.

Call Caroline or Ronnie today on 07863 599 126 / 07878 415 870 and let’s talk.

Or go to: www.stocktakingservices.co.uk and, assuming you like what you see, email: info@crstocktakingservices.co.uk

We count ... so you don’t have to.

JANUARY 2017 | SLR

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Inside Business

What’s Trending |#parlyspecial

WHAT’S TRENDING?

#parlyspecial

With the Cross Party Group raising awareness of the local retailing sector at the Scottish Parliament, SLR visited the the corridors of power at Holyrood to ask MSPs about their thoughts on the state of the sector.

Jackson Carlaw Conservative MSP for Eastwood in Renfrewshire “I think people are probably not aware just how widespread the various local convenience store networks are, the way the sector works together, the number of people it employs and the actual value that it represents to the Scottish economy. The value it actually does bring to the local community. There is power in working together to achieve objectives, particularly when policy options start to impact on local convenience stores. Whether it’s the imposition of alcohol or tobacco legislation, or now food obesity legislation, it’s important that there is a unified front.”

Next month

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“The sector is facing some challenges at the moment.

The big supermarkets are not doing what they should be doing.

It’s hard to imagine anyone would be able to replicate that local service in terms of being available for much more than that ‘ran out of milk’ situation.

It’s the service aspects that the convenience sector is prepared to take on, that doesn’t actually make it money, that sets the sector apart. Put that together with the burdens that fall on small businesses, and are all cumulative, and the sector really has to be commended.”

Jeremy Balfour Conservative MSP for the Lothian region “There were two questions answered for me at the recent exhibition in the Parliament building. Firstly, it was the value to business owners of being part of an organisation like SGF. It gives independent and family-owned businesses a voice. Secondly, as I’m also a local councillor and sit on the licensing forum, I know that the retailers who work with their local council are those that get their issues heard and discussed most closely, and have the best insight into the importance of issues like planning, employment legislation and health and safety.”

Bob Doris SNP MSP for Maryhill and Springburn, in Glasgow “Speaking with the President and the chief executive of the Scottish Grocers’ Federation, and reading the findings of the Local Shop Report, reinforced for me the importance of local retailers and grocers, particularly in the urban community I represent, where they’re under significant pressure, particularly from large supermarkets. They’re vibrant and quite often they’re serving a community that’s not as mobile as others who would use the multiple stores. There is no doubt that local retailers serve the community well.”

#trending what role will technology have in local retailing in 2017? Email your thoughts to Simon at swalton@55north.com

SLR | JANUARY 2017

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Alex Cole-Hamilton Liberal Democrat MSP for Edinburgh Western

www.slrmag.co.uk

21/12/2016 09:40:45

Untitled-1 1

30/11/2016 16:39:57

Inside Business

Local Shop Report

TAKING STOCK OF LOCAL RETAIL

The second edition of the Scottish Local Shop Report is now in the hands of ministers, stakeholders and store owners across Scotland.

The document had a parliamentary launch recently at Holyrood, and it has proved essential reading up and down the corridors of power.

K

eeping track of stock and shopper trends is second nature to store owners around Scotland, but pulling together the extraordinary volume of data for the Scottish Local Shop Report takes the science to another level.

Surveying 20,000 shoppers provides the sort of representative sample that makes the figures and findings both robust and reliable.

That sample comes from across the entire adult age range and the findings are presented graphically within the Report to make it an easy, at-a-glance fact file. The Report helps reinforce the fact that Scotland’s convenience retailing sector plays a huge part in the overall Scottish economy.

Scotland’s 5,324 convenience stores are spread out across every community – even though the total number of businesses has declined by almost 300 in the past 12 months, giving real weight to the alarm raised over the pressures faced by the convenience sector.

The credibility of the report is backed up by a two-month campaign of face-to-face interviews, conducted across the country, to support both the Scottish and UK versions.

Several hundred Scottish convenience stores take part, and Scottish shoppers are about 10% of the 20,000 customers interviewed in what retail market researchers him! term ‘moment of truth’ shopping decisions instore. “Most are incredibly happy to share their thoughts about the store, their shopping habits and needs, which demonstrates how

“The stores are chosen to be representative of the convenience industry as a whole.”

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Local Shop Report.indd 24

“The credibility of the report is backed up by a two-month campaign of face-to-face interviews.” important their local stores are to them,” said Katie Littler of retail research consultancy him! “The stores we visit are chosen to be representative of the convenience industry as a whole, representing managed, franchised and totally unaffiliated stores, stores of all sizes and different geographical locations.

The information we gather, straight from shoppers’ mouths, gives an honest, robust and representative read of the convenience shopper.”

Reassuringly, the Report confirms that Scotland still leads the way in terms of consumers’ affinity with the convenience channel. Nowhere in the UK is there a greater reliance on the sector than right here in Scotland. A store for every 995 inhabitants remains marginally ahead of Wales (one shop for every 1,001 people in the Principality) but far ahead of any region of England, where provision drops as low as 1,481 people per shop in the South East and, in a similar size of industry, over 400 shops have been lost in the past year. From the Report it’s clear that the issues facing the convenience sector in Scotland are not unique.

Closures in the abstract may seem like the natural business cycle, since overall figures represent a net turnover of store closures and new openings, but the Report highlights the stark reality of around 2,500 job losses in the sector in the last year, from a total workforce of now 42,000. In any of the monolithic industries this would be headline news, www.slrmag.co.uk

21/12/2016 09:59:57

Local Shop Report

Inside Business

but the diverse nature of the convenience sector is undoubtedly the reason why such a harmful degradation of the career prospects of so many Scottish workers has been neither reported, nor addressed.

“It’s by highlighting important issues like the size of the workforce and its importance to the national economy that makes the Scottish Local Shop Report such a vital resource,” said John Lee, Head of Policy and Public Affairs at the Scottish Grocers Federation, the body behind the Report. “It supports initiatives like the Cross Party Group on Independent Convenience Stores at Holyrood, which give the sector a unified voice, right in the heart of the government. The CPG, while still in its infancy, nevertheless benefits enormously from having the Report as a ready reference work, to help inform the debate and give the political representatives on the Cross Party Group the briefing that they need to contribute to the debate, and, ultimately, make informed decisions.”

It could be argued that the sector is doing more than its fair share to cement the fabric of society. Family businesses makes up roughly half of the entire sector, and more than one in eight businesses are run solely by family members. Women are nearly two-thirds of the workforce, and 10 percent of shop teams are aged over 60. These figures are all the more significant when placed alongside the relative value of the sector – £532m in gross added value, representing seven percent of all Scottish retail activity.

“It’s by highlighting important issues that makes the Scottish Local Shop Report such a vital resource.”

As a work of reference, the Report serves its purpose extremely well, putting in context the key facts and figures from the sector, in an easily digested and palatable format. For interested stakeholders, it’s a revelation. It’s to the credit of the retailers who’ve taken part that the report is, once again, comprehensive.

However, for those within the industry, the depth of insight is a valuable business tool, providing the sort of analysis that might otherwise be difficult and time consuming to compile.

The Scottish Local Shop Report 2016 is complied in collaboration between the Scottish Grocers Federation and the Association of Convenience Stores. The Report is available to download from the SGF website (www. scottishshop.org.uk), with the UK version from the ACS at www.acs.org.uk. www.slrmag.co.uk

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Inside Business

2 Minutes | Martin Inkster

Martin Inkster Increasingly innovative alternatives to traditional tobacco are making big market inroads. Manufacturer Philip Morris International may just have stolen a lead with their IQOS heated tobacco system, marketed as HEETS, which Martin Inkster, UK and Ireland Managing Director, hails as an important first in this country.

SO, WHAT’S THE TECHNOLOGY BEHIND THE IQOS HEATED TOBACCO SOLUTION? IQOS heats tobacco without burning, generating a nicotine containing vapour that has on average less than 10% of the levels of harmful constituents found in cigarette smoke.

The vapour generated by IQOS is significantly less toxic than cigarette smoke and is likely to be less harmful than continuing to smoke. It also does not adversely affect indoor air quality and is not a source of second-hand smoke.

FACTFILE Martin Inkster is UK and Ireland managing director at Philip Morris International. He’s held the post for over four years, and it’s his latest senior appointment for the global tobacco manufacturer.

From a sales background, Inkster has a wealth of previous experience in Asian and Pacific markets with the company.

Educated at the British School in the Netherlands, he is now based in Richmond, London, where the company oversees a range of traditional products and innovations.

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YOU SEE THIS AS PART OF THE WAY FORWARD THEN? We have invested $3bn to date in research and development and employed over 400 world class scientists in relation to our portfolio of reduced risk products. Our studies on IQOS are well advanced and the data to date clearly points in the direction of risk reduction.

HOW DOES THIS BENEFIT SMOKERS?

The opening of the first UK IQOS store in London was a significant milestone but represents only the initial stage of our venture into the UK. We look forward to sharing our further expansion plans with retailers in the near future.

With their valued support we have experienced strong volume and share of market results since transitioning from our distribution agreement to managing our own business. In due time, we expect the same with HEETS.

HOW DOES THE PRICE POINT COMPARE WITH OTHER TOBACCO BASED PRODUCTS? The cost of an IQOS device for registered users will be £45 and a single pack of 20 tobacco sticks, which come in three different flavours and are branded HEETS, will cost £8 (or £7 in a multi-pack).

Based on our studies, IQOS is likely to be less harmful than continued smoking. In addition, it generates no ash, no smoke, less smell and has no adverse impact on indoor air quality. Based on the encouraging results from commercialisation in other countries, we are confident that this would be enough to encourage switching for many smokers.

YOU OBVIOUSLY SEE THIS AS A GROWING MARKET, SO IS GETTING TO MARKET FIRST A SIGNIFICANT COMMERCIAL ADVANTAGE FOR PHILIP MORRIS?

WHERE DO YOU POSITION HEATED TOBACCO IN THE MARKET?

WHY SHOULD RETAILERS GET ON BOARD?

This is a product for existing adult smokers only but we know there are smokers who have tried other alternatives such as e-cigarettes but haven’t fully switched to them. So IQOS is designed with those people in mind; smokers who are looking for a potentially reduced risk alternative, but enjoy the ritual of smoking and the taste of tobacco.

SLR | JANUARY 2017

2 Mins.indd 26

WHAT’S THE COMMERCIAL ADVANTAGE FOR THE RETAILER WHO STOCKS A HEATED TOBACCO SYSTEM?

We are working towards a future where we no longer produce conventional cigarettes – IQOS is definitely a step towards this. To get there will take many years and will take continued innovation in the industry.

Our goal is to convert existing smokers to these products and we have every intention of using today’s highly efficient and broad distribution and retail network once a meaningful consumer demand exists. We believe that reduced risk products will help sustain a viable business, satisfying adults that choose to continue to use tobacco products. www.slrmag.co.uk

21/12/2016 10:17:03

We help people all over the country.

GroceryAid makes life better for grocery people in need. From factory to store, we help everyone. With your support we can do more. Call 01252 875925, email events@groceryaid.org.uk or visit www.groceryaid.org.uk to find out how you can help.

Real lives. Real problems. Real help.

GroceryAid

@groceryaid

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

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27/09/2016 09:28:51

SLR REWARDS

CHAMPIONS LEAGUE OF THEIR OWN

The Beer & Cider Retailer of the Year is a keenly contested award so it’s on merit that Day Today @ Jamils in Renfrew picked up the prize, and thanks to category sponsor Heineken Yasir Jamil from this family-run firm was able to experience a taste of Europe’s greatest footballing spectacle.

J

ust like winning the Champions League, winning at the SLR Rewards is about more than just the game itself. It’s all about preparation, dedication, and adopting a way of life, to make sure you perform your best on any given day. That’s the kind of dedication that father Mohammed and son Yasir Jamil put into their Day Today store in Renfrew.

“I’d encourage all businesses to get involved with the Rewards,” said Yasir, who’s the football fan in the business partnership 28

SLR | JANUARY 2017

2016 Reward Winners.indd 28

and delighted to get his hands on tickets to a Champions League match. “It’s always good to compare yourself to other businesses, and get an idea of how well you’re doing for your customers. You want to be tested against the best.”

Sponsors Heineken made it possible for Yasir, and his guest Imran Ackram, to attend the Champions League match of their choice.

Yasir opted for the glamour of the Emirates Stadium in London for Arsenal’s match with the millionaires of Paris St Germain, with

accommodation provided at the iconic Amba Marble Arch. “We were treated very well from beginning to end,” said Yasir. “Many thanks to Heineken and SLR for making it all possible, and being guests made it all the more special.”

The match was a score draw, honours even, and a great time was had by all. “We’re always striving to keep up with the best in the market,” said Yasir. “If you think you can qualify, I’d say enter again this year, and don’t hold back. Do your best, it’s better for business, and if you win, well, that’s just champion.” www.slrmag.co.uk

21/12/2016 10:27:46

SLR REWARDS

SWEET TASTE OF SUCCESS There’s plenty of competition for Confectionery Retailer of the Year. All the more impressive then that the multiple winner Harris Aslam took the honours in a field as strong as ever at the SLR Rewards.

www.slrmag.co.uk

2016 Reward Winners.indd 29

I

t was a fantastic SLR Rewards for Harris Aslam of Nisa Greens of Markinch. Not only did he win the overall Scottish Local Retailer of the Year title and a trip to the NACS Show in Atlanta, he also picked up three individual category awards too.

One of those was the coveted Confectionery Retailer of the Year category and category sponsors Wrigley provided Harris with a fantastic Reward of an exclusive Virgin Experience Day, worth £500.

Harris hasn’t decided yet what he’s going to do with the voucher but there’s an array of once-in-a-lifetime activities he can choose from.

He could have a go at parachuting or bungee

jumping, but with Harris’s well known love of speed and fast cars, he may well be more tempted with a high-octane race day or a flight experience.

“I haven’t decided what I’m going to go for yet because there are so many amazing experiences available, but I’m sure whatever I choose it will be a whole lot of fun,” Harris told SLR. “I was blown away on the night to pick up the Scottish Local Retailer of the Year award and to also win three category awards was more than I could ever have dreamed of. Even if you don’t win, I think that the actual process of entering awards is a really positive thing to do because it forces you to see your business with fresh eyes.”

JANUARY 2017 | SLR

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21/12/2016 10:27:51

SLR

AR R EW D S

2017

ENTRY GUIDE ENTRY DEADLINE: 27 JANUARY 2017

MAKE THE SLR REWARDS 2017 YOUR BEST OPPORTUNITY YET Whether it’s your first time or you’re a seasoned competitor, when you enter the SLR Rewards 2017, make sure you give it your best and check out these tips from the rest of the best here too.

The deadline for entry is closer than you think. 27 January is the last day for entries, not the first day to start thinking about it. So, it’s time to get your thinking cap on and put yourself in the spotlight for the most rewarding event in retail.

Is your entry under way? The next three weeks could change the way you do business, and set you on the road to the Grand Central Hotel in Glasgow on 11 May. Armed with these top tips, could you be among the SLR Rewards winners in 2017? There’s only one way to find out for sure. Enter now at www. slrawards.com.

“Winning Scottish Local Retailer of the Year in 2015 gave us a lot of publici ty,” says Joanna Casonato, speaking from her Milnathort Nisa store. “I always believe that it is a good motivator for the team. It probably makes hiring and motivating new staff easier too, bec ause they are excited to join and contrib ute to a successful store.

“I always think it’s good to include figures, because you can say what you want but the numbers talk for themselves. It can also get you loo king at your Epos systems if you don’t alre ady do so regularly.”

“The most obvious benefit from our point of view is that entering the SLR Rewards makes you scrutinize what you do, and that in turn makes you do things better, which brings in more business,” says Rewards winner Linda Williams from Premier Broadway Convenience Store in Edinburgh.

2017 Rewards Entry Guide.indd 30

“We have had many a comment from our regular customers,” says Imran Ali from Euro Garages Spar Lomondgate in Dumbartonshire. “Now they expect us to win more awards and again this has raised the bar for our team at Lomondgate!”

A former Scottish Local Retailer of the Year, Saleem Sadiq says getting his Spar Renfrew store shortlisted for the first time was all it took for him to catch the bug. “It’s just a short climb after Bruce and Donna Morgan of Best-One @ Brownli that to make sure you do your es in Biggar suggest getting level best to impress the judges the camera out early wh when they come to visit the en get “Staff .

Saleem entering the SLR Reward store,” says s. rewarded with various incentives “Photos are your best and where possible some will be friend,” says Donna. “We take loads of pictures an invited to SLR Rewards night. d much as give ng, review them with the sta “When enteri ff, information about the store pointing out things that as you can, the history and could be improved. the direction you’re heading.

“Make a list of things yo Photographs for the relevant u category are very important do well in the categorie s as this is what catches the you are entering. Again , judges’ eye at the early the staff are amazing at stages. Testimonials from your this. Try not to leave it to customers and local charities the last minute. It reall y always help too.” doesn’t take long; the hardest part is getting started!”

A previous winner at the SLR Rewards, Colin Smith from Nisa Pinkie Farm Convenience Store in Musselburgh, saw the reaction he got from his own customers to his awards and it inspired him to focus on keeping doing well for them. “Everyone is really pleased to see their local store winning,” he says. “That’s bound to reflect well in customer relations, encouraging more footfall and that of course leads to more opportunities to purchase.

“The SLR Rewards definitely help you increase awareness of what’s going on within your store. Just be honest and make sure you promote yourself as much as possible.”

21/12/2016 10:14:05

ENTRY GUIDE ENTRY DEADLINE: 27 JANUARY 2017

Even though the judges call unannounced, Omar Nasir says his Spar store in Motherwell is always ready to be inspected, because that’s just good for business.

But he’s quick to admit that getting involved in the Rewards really helps his store. “I believe by entering the SLR Rewards my thinking and approach has gotten different,” he says. “I am always looking at how to improve my store and make it better. I try get ideas from other retailers at the Rewards, so I can do better for next time.

“I would encourage other take lots of pictures and have each category looking at its best. Make sure your store is looking clean, tidy and organised. Never take your eye off the ball.”

SLR

AR R EW D S

2017

GENERAL INFORMATION The SLR Rewards 2017 are open to all independent and symbol convenience stores in Scotland. The content of your entry should cover at least the 12 month period running up to May 2017 and your store, or the project you are submitting in your entry, should have been operational throughout that period.

SUPPORTING MATERIAL In addition to a fully completed entry form, you must also submit photographic evidence to bring your entry to life and allow the judges to fully understand your entry.

Q For Category Rewards – confectionery, crisps, e-cigs and so on – you must submit a photograph of the main fixture plus photographs of any relevant secondary sitings, or anything else that you feel adds weight to your entry.

Q For Special Rewards – community, best refit, team and so on – please ensure that the photography you supply clearly illustrates the work you have done and allows the judges to fairly assess that work.

JUDGING As always, the judging will be held in two separate stages: 1. A paper judging carried out by a panel of expert, experienced judges who will assess all correctly submitted entries to generate a shortlist for each Reward category.

2. An on-the-road stage where each shortlisted store will be visited by a team of judges with an overall winner being chosen. All site visits will be unnnounced.

For further information, contact Cara Begley in our Events Team on 0141 222 5381 or email events@55north.com.

2017 Rewards Entry Guide.indd 31

21/12/2016 10:14:08

,

Inside Business

Interview | Dennis Williams, SGF President

PRESIDENT ELECTED

After over three decades in retail, Dennis Williams has recently added the title of Scottish Grocers’ Federation President to his already impressive CV. Simon Walton caught up with the award-winning Premier retailer from Oxgangs in Edinburgh in the suitably influential surroundings of the members dining room at the Scottish Parliament to find out about his priorities for the two years of his tenure.

A

s most retailers that know him will be well aware, new SGF President Dennis Williams is a passionate advocate of the local retailing sector. After more than 32 years as the owner of Premier Broadway in Oxgangs in Edinburgh, it’s fair to say Dennis and wife Linda are among the best-known faces in the industry. “We are quite well known but I want to be clear that I’m not just about my own store or symbol group, or any symbol group – I’m about the whole convenience retail sector in Scotland.”

His enthusiasm for the task established, Dennis knows however that he has assumed the chain of office at a time when the climate for business has never been tougher – and it’s the matter of the rising costs of doing business that he sees as a priority for his two year tenure at the helm of SGF. “Bank charges have always been a big thing for me,” he says. “I know that for my own business, banking money costs about £180 a month in charges. That could be a wage for someone. Utility companies are going to put their prices up again, which is a big burden on your business too.

“Another huge issue for retailers is commissions – and I’m going to name two of the companies: PayPoint and Camelot. I think especially nowadays with the constraints on businesses we need to look at this. The commission rate on PayPoint has fallen and on the National Lottery we’ve had no increase in 14 years. We have had a slight increase in scratch card commissions but I think that both of these companies need to look at that.

However, I want to be positive and say we’re not here to shout and bawl, but we need to get

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SLR | JANUARY 2017

Profile - Dennis Williams.indd 32

Dennis accepts his chain of office from Past President Abdul Majid.

“I’m not just about my own symbol group, or any symbol group – I’m about the whole convenience retailing sector in Scotland.” around the table and put our points across. I see that as my role as president of the SGF.”

BIGGER PICTURE Dennis also intends to take up the challenge around the living wage. He says: “The national living wage is a massive strain on our sector just now. The extra cost for our own business from the first of April has been £8,000. That is a lot of money. On top of that, there’s autoenrolment this year for pensions.”

Naturally, he supports the idea that staff deserve a reasonable wage but believes decisions to continually increase the

minimum wage must be taken in a wider context.

“I’m all for giving someone a reasonable wage,” he says. “I have no issue with that at all. Of course I want someone to get a reasonable wage. The problem is, once again, the constraints placed on a small business with the overhead that this represents. I think the Scottish and Westminster Governments should be doing something about that. I think they’re being unrealistic, because if you look at the facts and figures, I know that staff hours are getting cut back, people are not getting replaced, and people who own businesses are www.slrmag.co.uk

21/12/2016 09:45:24

Dennis Williams, SGF President | Interview

needing to work longer hours.”

All of which relates to a lack of recognition of the value that the local retailing sector brings to the Scottish economy, believes Dennis. Local retailing outlets across the country provide regular employment for a massive number of people at a time where stability is being eroded in many other industries, he argues.

The upshot, he believes is that by making it more difficult for employers to take on new people, however well intentioned, the living wage is working against well meaning employers and into the hands of potentially less scrupulous employers.

The danger, says Dennis, of ‘casualising’ a greater percentage of the workforce is that it will lead to a loss of employment security for the staff and the erosion of the expertise and customer service that sits at the heart of the local retailing experience.

He says: “I’m in no doubt this is already happening in our sector. People are working in stores with less training, less commitment and less expertise. We can’t lose sight of the fact that people need a decent wage to work in the industry, but we need decisions to be made with an appreciation of the bigger picture and the commercial realities. In my tenure as president that’s what I see as my role and my duty to the members and everyone they employ.”

COMMUNICATION KEY The key to success over the next two years for Dennis lies in communication. “We have to talk more,” he explains. “I want to get the SGF to sit down more, to communicate more, and present our case to everybody we need to speak to – suppliers, manufacturers, and other interested groups, because they’re under the same constraints and stresses as we are.”

A key development in opening up new lines of dialogue has been the establishment of the new Cross Party Group (CPG) on Independent Retailing at Holyrood. A long-standing advocate of getting closer to those that make the big decisions, Dennis sees the CPG as a great way of having the industry’s voice heard at the top table.

“The CPG represents a great opportunity now for everybody involved with the sector to really come together and have a big voice in the Parliament,” he says. “We’ve never had a unified voice in this arena before, and I don’t think it was in any way overstating the case to say that the establishment of the CPG was a great day in history for the sector in Scotland.”

The CPG offers a unique opportunity to ensure that more and more MSPs are made aware of the often over-looked scale and importance of the local retailing sector in Scotland.

Critical now will be ensuring the CPG delivers www.slrmag.co.uk

Profile - Dennis Williams.indd 33

concrete results and actions that directly benefit the industry. “One of the good things that the SGF has done in the set-up of the CPG is to get sub-groups established looking at specific challenges our industry faces and I think that will be very helpful. It will make it easier to get across the important issues and to help politicians more deeply understand our sector.

The more they understand the sector, the more they will make the right decisions and for the right reasons.”

And make no mistake, every MSP in Holyrood is touched by the industry. At the recent SGF/SLR exhibition within Holyrood, practically every politician to drop by the stand admitted that they had used their local retailer to gauge opinion in their ward or constituency.

“The CPG is the ideal vehicle to take that grassroots connection and move it on to another level,” says Dennis. “It’s an opportunity to turn get SGF members’ opinions and observations relayed into the decision-making process” Dennis also cites the recently published Scottish Local Shop Report as another good example of a solid tool the industry can make use of when communicating with politicians and other influencers.

“It’s a hugely important document for the sector,” he says. “It draws together and collates a wealth of facts and figures that demonstrate the size of convenience retailing in Scotland, and how valuable it is to community economies and the national economy at large. It puts the industry into the sort of language that politicians can readily understand.”

Inside Business

ready to tackle the role with the same vigour that’s made his Oxgangs store a genuine community asset for over 30 years.

“I’m so passionate about the trade,” says Dennis. “I want to make an impact in the areas I’ve just discussed and I want to visit as many shops in Scotland as possible. Symbols, independents, large and small shops. I want everyone involved in this industry to realise that they really are part of something very big, and they have a big part to play, well beyond their own front door.”

Practicing what he preaches, Dennis is kicking off his tenure with a ‘grand tour’ of Scotland, meeting as many retailers as possible up and down the country.

“If we’re going to ask retailers to engage with the decision-making processes that affects their businesses, their livelihoods and their communities, then I have to get out there and prove that we’re just as passionate about engaging with them too,” he concludes.

So don’t be surprised if you get a knock on your door some time soon...

EXCITING JOURNEY It’s clear that Dennis has his work cut out for the next couple of years. Addressing commercial partners over cost issues and collaborations, seeking to engage with government in Edinburgh and London, and putting the convenience sector in the spotlight are all on his agenda. But he declares himself

JANUARY 2017 | SLR

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21/12/2016 09:45:25

WOODLANDSlocal

Inside Business

34

Woodlands Local | Monthly Update

ANOTHER CHALLENGING YEAR ENDS, BUT IT’S NOT ALL DOOM AND GLOOM...

After another tough year we’ve working hard to ensure that 2017 is a year to remember in our little corner of Falkirk with big plans for our Rewards Club and a few final in-store cosmetic tweaks.

SLR | JANUARY 2017

Woodlands.indd 34

BY ANTONY BEGLEY

A

t the risk of stating the bleeding obvious, 2016 was another tough year in local retailing – and from talking to lots of fellow retailers, I don’t think Woodlands Local is the only store in Scotland to feel that way.

Despite significant investment in the store itself and having had another year’s experience under our belts, when we ran a very detailed analysis of the store’s performance in 2016 there are still quite a few areas where we can make significant improvement.

Don’t get me wrong – there are lots of bright spots among the data with lots to be positive about, but there remain a host of areas where the store could and should be performing better.

DECEMBER SNAPSHOT

5.65%

Increase in December basket spend v previous year

6%

Decrease in December footfall v previous year

December is always an interesting month to look at. Once the sales highlight of the year, it’s increasingly difficult to make December the stellar month it once was. There are highlights, however, including the fact that basket spend was up 5.65% this year in December against 2015, although this is counter-balanced by the fact that average footfall in December 2016 was down by around 6%. Having said that, December also saw the store achieve its highest ever weekly footfall score.

Perhaps most importantly, at the allwww.slrmag.co.uk

21/12/2016 13:26:09

Monthly Update | Woodlands Local

XTRA SPECIAL ST ANDREW’S DAY FOR PAULA! As part of our St Andrew’s Day celebrations at the end of November we had Scottish soft drinks giant Irn-Bru and confectionery gurus Mrs Tilly’s in the store doing a spot of sampling. To reward customers that turned up, we ran a special selfie competition on our Facebook page where customers could post selfies with the Irn-Bru Xtra Can Man and win £25 to spend in-store.

The luck winner – or should we say winners – were locals Geordie Reid and Paula Clark.

Confusingly, it was Paula who took the selfie but Geordie who posted it on our Facebook page.

Consequently we had no choice but to give the voucher to Geordie, but he graciously passed it onto Paula – which goes to show that there are still some good folk out there!

Less fortunate was Andy Byers who was the lucky winner of a £75 voucher and a Mrs Tilly’s hamper. Andy had been working on a local construction job near Woodlands for the last couple of months and was in the store every day for breakfast and lunch. He won the prizes by being picked at random in a prize draw open to Members of our Rewards Club who made any purchase on St Andrew’s Day. Andy happened to be in the store on St Andrew’s Day and was told he was then told he was our lucky winner. Almost unbelievably, however, the very next day he was moved to another job on the other side of Scotland! We’re working hard on getting his prizes to him none the less.

important profit level the store did better in December 2016 than in the previous year.

Similarly, we were pleased to confirm that our margins remain strong and in December 2016 were on the same period in 2015.

So what are we to take from all of this? Well, it’s clear that we have made progress on lots of fronts and we are in a good place to try to grow in 2017. The store has never looked better, the range is tighter than ever and the Rewards Club is delivering tangible benefits.

But it’s also clear that it’s been a difficult year and plenty of challenges lie ahead.

Flat sales and footfall over the year reflect a depressed market and mean that all of the hard work we are doing is only succeeding in helping us stand still. The legacy of the recession continues to haunt the local retailing sector, all these years later, and there have to be serious doubts as to whether the ‘good old days’ will ever return.

Which means we have to keep changing things and searching for solutions and ideas and ways to set ourselves apart from the competition, drive better engagement with our customers and give them real, concrete reasons to visit our stores more often and spend more when they do.

WHAT’S NEXT? For Woodlands Local that means an increased focus on our Rewards Club, an increased focus www.slrmag.co.uk

Woodlands.indd 35

on engaging with the local community and a renewed appraisal of the role promotions play in the store, and how we should best manage them to maximise cash profits.

Nobody said it was going to be easy, so there’s nothing else for it to but to knuckle down once more and redouble our efforts to make Woodlands Local an integral part of the Woodlands community and make us indispensable to our customers.

Much of this will centre around the Rewards Club. It’s the single best tool at our disposal for really, truly, deeply understanding our customers – and engaging with them positively on a regular basis. Expect a lot more activity on that front in 2017 as we aim to convert as many of our shoppers as possible to Membership, then use the Club to drive up basket spend and visit frequency.

We are also taking our annual ‘big picture’ look at the entire business, ensuring we’re getting the best deals possible on everything from utilities to waste disposal services.

We will also be revisiting our deals with all existing suppliers to ensure we’re buying stock at the best rates possible.

In addition, we still have some cosmetic work to do in-store to finish off the refit. It’s mainly small signage elements and better quality merchandising and POS, but the post-Christmas period should be perfect for dedicating some time (and cash) to that.

Inside Business

A WORD FROM THE BOSS

What can you say about December? Bedlam and not enough hours in the day just about covers it! It was a hectic month as tried to squeeze as much out of Christmas as we could, which is no mean feat these days. Even some amazing deals that we did on Thorntons Christmas gift sets and advent calendars provided harder to shift than we’d expected.

We were selling some of the lines at 50% of the price you’d pay on the Thornton’s website and we plastered it all over Facebook and had them sited right at the counter, yet it still took a lot longer than anticipated to sell through.

But then, you go to the local Tesco or Asda and they’re selling big tubs of chocolates to customers cheaper than we can buy them from the wholesaler, so what chance have you got? And I think our customers are in the habit of doing big Christmas shops at the supermarket so all we’re getting are lastminute or distress purchases. And because we’re cutting margins to drive sales you sometimes end up wondering if all the effort was worth your while – or whether you’d be better just pretending Christmas didn’t exist and just run the store the same in December as you do all year round.

But we gave it a good go, including a month-long series of 24 different festive deals and giveaways for our Rewards club Members which was tricky to manage in-store but at least helped boost Membership and basket spend. Membership rose by about 12% in December and basket spend was up nearly 6% on the previous December, so we must have got something right – even if it required a mammoth amount of work to achieve it.

Unlike most people, however, Christmas doesn’t bring a period of rest and relaxation and time off work for retailers, as we all know fine well. We’re already onto January and what we can do to boost sales and profits in a period when our customers tend to be strapped for cash and visiting the store less often.

Who’d be a retailer, eh?!

JANUARY 2017 | SLR

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21/12/2016 11:20:09

WOODLANDSlocal

Inside Business

Woodlands Local | Rewards Club

CHRISTMAS EXTRAVAGANZA HELPS BOOST REWARDS CLUB

The month-long series of daily promotions that has been running in Woodlands Local in the approach to Christmas has helped boost Rewards Club membership and drive footfall.

BY ANTONY BEGLEY

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24

Dynamite December Deals

A different offer every day, including

Free beer H Free hot drinks H Free milk H Free newspapers H 10% off your shopping H Lunch for £1 H £5 steak dinner with wine H Half price offers H Crazy deals and more...

They’re our Woodlands Christmas Crackers!

Rewards Club members only. Ask staff for details!

Alternatively visit www.yourwoodlandslocal.com, text WOODLANDS 1 to 67676 or scan the QR code.

Murray Court, Majors Loan, Falkirk FK1 5QA, 01324 625 578 Opening Times: Mon–Sat 6am–9pm, Sun 7am–9pm GB residents aged 18+ only. Texts cost standard network rate. Offers available while stocks last.

Flyer.indd 1

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SLR | JANUARY 2017

Woodlands.indd 36

N

ever ones to do things by half, Woodlands Local took a fresh approach to the traditional ‘12 days of Christmas’ last month by doubling up to create a ‘24 days of Christmas’ series of unique offers for our Woodlands Local Rewards Club Members.

The campaign, managed by our Darius shopper engagement software, effectively saw us offer a different deep-cut promotion or giveaway for every day in December before Christmas – but only for our Members.

These deals were communicated by email and social media on a daily basis to Members and non-Members alike to help us achieve a number of key aims, as highlighted in the panel on this page.

The great news is that the activity helped boost the number of Woodlands Local Facebook page followers by 18% and the number of Woodlands Local Rewards Club Members by over 12%.

There were also 195 views of the Dariuspowered Woodlands Local landing page as SLR went to press on December 19th, indicating the level of interest in the campaign.

WHY MEMBERS ONLY? Rather than making the deals available to all, the logic behind the Members-only campaign

19/12/2016 11:31:53

www.slrmag.co.uk

21/12/2016 11:20:09

Rewards Club | Woodlands Local

aa

aa

Today’s Christmas Cracker

aa

Today’s Christmas Cracker

RSP £1.50

Today’s Christmas Cracker

RSP £1.00

Merry Christmas from Gerry & the team

Merry Christmas

Merry Christmas

from Gerry & the team

IT’S

10% OFF YOUR

Even better, we improved our margins in December over the previous year, something that is reflected in the 12 month figures too – which is always a good sign.

SHOP

*

Rewards Club members only. Join for free in-store!

Rewards Club members only. Join for free in-store!

Rewards Club members only. Join for free in-store!

Alternatively visit www.yourwoodlandslocal.com, text WOODLANDS 3 to 67676 or scan the QR code.

Alternatively visit www.yourwoodlandslocal.com, text WOODLANDS 3 to 67676 or scan the QR code.

Alternatively visit www.yourwoodlandslocal.com, text WOODLANDS 3 to 67676 or scan the QR code.

GB residents aged 18+ only. Offers available while stocks last.

GB residents aged 18+ only. Offers available while stocks last.

Poster.indd 6

19/12/2016 11:36:13

aa

GB residents aged 18+ only. Offers available while stocks last.

Poster.indd 7

19/12/2016 11:36:15

aa

Today’s Christmas Cracker RSP

from Gerry & the team

£1

Poster.indd 16

was clearly to drive recruitment into the Rewards Club, as well as rewarding existing Members.

We know from running the Rewards Club that Members are more valuable to us than non-Members: the average basket spend for Members remains approximately twice the size of the basket spend of non-Members.

As well as driving basket spend, by growing membership numbers we also grow the audience available to us for our shopper engagement programme. Using personalised communications for each shopper, based on

WHAT WERE WE TRYING TO ACHIEVE? Our goals in running a 24-day Christmas campaign were wide and varied but essentially came down to five clear targets: 1. Boost recruitment of Members to the Rewards Club 2. Grow sales in the vital run up to Christmas 3. Thank our Members for their support throughout the year with some extra special Rewards 4. Drive trial of important new lines like fresh meat and the own label Independent range 5. Sell through promotional overstock we’ve gathered over the last couple of months

WHAT’S

WITH ANY PURCHASE

Rewards Club members only. Join for free in-store!

Alternatively visit www.yourwoodlandslocal.com, text WOODLANDS 3 to 67676 or scan the QR code.

GB residents aged 18+ only. Offers available while stocks last.

19/12/2016 11:36:25

from Gerry & the team

GET ONE FOR

Alternatively visit www.yourwoodlandslocal.com, text WOODLANDS 3 to 67676 or scan the QR code.

GB residents aged 18+ only. Offers available while stocks last.

GB residents aged 18+ only. Offers available while stocks last. *Excludes tobacco, alchol, lottery or PayPoint.

19/12/2016 11:36:29

Poster.indd 21

Our inspection from our Environmental Health Officer resulted in a new certificate – well done to Melissa for all her work on this front.

Merry Christmas

FREE

Rewards Club members only. Join for free in-store!

Alternatively visit www.yourwoodlandslocal.com, text WOODLANDS 3 to 67676 or scan the QR code.

Woodlands.indd 37

from Gerry & the team

ALL E-LIQUIDS

Rewards Club members only. Join for free in-store!

www.slrmag.co.uk

RSP £2.00

Merry Christmas

50% OFF!

ALL FOR

Poster.indd 15

19/12/2016 11:36:16

Today’s Christmas Cracker

RSP £5.00

Merry Christmas

£2.44

Poster.indd 9

aa

Today’s Christmas Cracker

Great news that our festive blitz of 24 consecutive days of deals in December helped us grow our Rewards Club membership significantly. We grew by 12% in just a few weeks.

from Gerry & the team

50% OFF!

FREE

Inside Business

19/12/2016 11:36:33

their behavioural and transactional profiles, we are confident of being able to encourage these Members to visit the store more often, spend more while they’re here – as well as feel rewarded for being a Woodlands Local customer.

Don’t forget that Rewards Club Members have already saved themselves £50 in the shop on average over the last 12 months just by being a Member.

GOOD DEAL BETTER The deals and giveaways on offer covered a wide range of product categories to appeal to as wide an audience as possible, from free newspapers, coffee and milk to fantastic deals on soft drinks, confectionery, crisps and vape juices. There was even some free beer thrown in and some mazing meal deals on steaks and chicken as well as the Christmas ‘Sleigh Yourself’ killer deal. This deal offered customers who had already participated in at least 10 of the December deals an 8-pack of Tennents for just £2.50. Not even Lidl is that cheap!

The Rewards Club is set to play a key role at the heart of our business in 2017 so all of this activity should help ensure we hit the ground running for January and lay the foundations for a great year of shopper engagement.

HOT

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

WHAT’S

NOT Despite all of our work and effort and investment in the store, sales in December remained flat compared to the previous year. It’s clearly quite disheartening to work harder just to stand still.

Footfall in December was down almost 6% compared to the same period the previous year which is disappointing to say the least.

December saw yet more roofing problems – and the prospect of another bill of possibly as much as £1,000 to repair the roof once and for all.

JANUARY 2017 | SLR

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21/12/2016 11:20:12

WOODLANDSlocal

Inside Business

38

Woodlands Local | St Andrew’s Day In-Store Sampling

CAN MAN COMES TO FALKIRK Our St Andrew’s Day event coaxed in the customers at Woodlands.

I

n case you hadn’t heard, AG Barr recently launched its first permanent new line in 35 years in the form of Irn-Bru Xtra. With St Andrew’s Day being one of the more patriotic annual celebrations, it was a no-brainer for Woodlands Local to organise a promotional event around the popular new product.

The slightly chilly November afternoon was brought to life with the attendance of the Irn-Bru Xtra Can Man who entertained our customers – and staff – as he paraded around the store handing out free samples of the new IrnBru Xtra.

Not the most dainty of characters, the Can Man managed to knock down half a shelf of cereal before he was gently some shoppers from the street. This proved a winning strategy with people passing by in cars and on foot stopping to look at our orange and blue friend.

Irish couple, Harry and Natalie, literally turned their van around to come and share their knowledge with us about Irn-Bru, haggis and all things Scottish.

As it turned out, very few could resist getting a selfie with the Irn-Bru mascot, which helped drive customers to the event promotion, offering one lucky selfie-taker the chance to win a £25 voucher to spend in store. Geordie Reid was the lucky winner after posting his picture to the Woodlands Local Facebook page as he posed beside Paula Clark and the Can Man. Geordie kindly gited his prize to Paula for taking the piccie, gentleman that he is.

Enthusiasm from our shoppers was high in spite of the foreboding clouds overhead, with even the most reserved of our customers donning a shy grin for a photo and a

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hug or a high five with the Can Man. We were a little concerned for the poor mascot’s wellbeing once the local school let out for the day with the youngsters practically rugby-tackling him to the ground in excitement, but he held his own as the raucous youngsters threw themselves at him.

In perhaps the most touching moment of the day, a local contractor, who earlier deemed himself as having ‘a face for radio’, pulled up again in his van, this time with his son along, to get a snap of the two of them together, which the wee boy told us had made his week.

Our own wee boy, Woodlands’ Manager Gerry Begley, who we couldn’t get to try on the Can Man costume despite our best efforts, said a few words about the big day: “St Andrews Day is important for Scottish retailers and what’s St Andrew’s Day without Irn-Bru?. Irn-Bru Xtra has been a big seller for us since day one and we were delighted to actually be the very store in the UK to have Xtra, as SLR readers might recall. Getting the Can Man to come along today has given that bit of extra fun and satisfaction for our customers and at the end of the day, that’s what it’s all about.”

The day also served as a promotion for Woodlands’ 24 Daily Dynamite Deals in the run up to Christmas, exclusive to Woodlands Local Rewards Club members.

Our girls at the till didn’t let up until almost every customer had given over their details to receive access to the month-long promo – which included free beer, hot drinks and newspapers, as well as discounts on various popular products on the shelves.

www.slrmag.co.uk

21/12/2016 11:20:20

St Andrew’s Day In-Store Sampling | Woodlands Local

www.slrmag.co.uk

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Inside Business

JANUARY 2017 | SLR

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21/12/2016 11:20:37

Hotlines

Product News & Media Watch

Twinings new packaging Associated British Foods Twinings has invested £10 million in its new marketing push, which sees yellow boxes being used to colour-block the Twinings range on shelf so shoppers can quickly find their favourite tea. The new packaging format also has features such as a click-lock lid for easy opening, individual tea bags and a foil interior to keep tea fresh.

Kingsmill Super Toasty Associated British Foods Kingsmill has announced the launch of Kingsmill Super Toasty, the first loaf developed specifically to deliver the ‘Best Ever Toast’ experience using a special blend of flours. Light and crispy on the outside and soft and pillowy on the inside, the loaf is available nationwide from 4 January 2017, with an RRP of £1.25.

Robinsons Orange Squash’d Britvic Reshaping the Robinsons Squash’d family, Britvic has introduced its most requested flavour ever: new Orange Squash’d. The Orange variant will be replacing the existing Orange & Peach and is available at an RRP of £2.00 per 66ml pocket format. The brand is also unveiling a new design highlighting the brand’s 0% sugar credentials to consumers across the entire pocket Squash’d portfolio.

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JTI stays on trend with

new flavours Tapping into the latest vaping trends, JTI has added two new flavours to its range of Logic Pro capsules: Berry Mint and Strawberry. The new variants are available in two nicotine strengths, 6mg and 12mg. Each is available in a pack of three capsules at an RRP of £3.99.

Both Berry Mint and Strawberry are offered in EUTPD2-compliant packs, rolling out in a new Logic design which unites the whole JTI e-cigarette portfolio.

Jeremy Blackburn, JTI head of communications, commented: “Our latest insight shows the three most popular vaping flavours are fruit (28.9%) followed by menthol (21.8%), with tobacco flavours the third largest segment (21.5%) by popularity. We know vapers are seeking a wide selection when they select their e-liquid flavours, so by extending our range of Logic Pro capsules we are enabling retailers to tap into this opportunity to drive e-cigarette sales.”

The full Logic Pro capsule range includes: Berry Mint flavour; Strawberry flavour; Tobacco flavour; Menthol flavour; Cherry flavour; and Vanilla favour. The Logic Pro Device has an RSP of £10. The full range, including the new flavours, is currently available across all channels.

Golden Wonder Haggis Tayto As the company nears its 70th anniversary, Golden Wonder is celebrating its Scottish roots with the introduction of a new Haggis flavour crisp snack, just in time for Burns Night on 25 January. The new variant is available in both multi-packs of six (RRP £1.49) and impulse packs with 15% extra free at an RRP of 57p.

Protein Boost Boost Drinks Boost has launched a new protein drink this month in response to increasing consumer demand for health and wellbeing products. Available in 310ml bottles price-marked at £1.29, Protein Boost comes in two flavours: Chocolate and Strawberry. Each bottle contains 20g of protein, no fat, no added sugar and less than 150 calories.

Ginsters Steak and Tribute Ale Pasty Samworth Brothers

Ginsters, the well-known West Country manufacturer, has unveiled a new Steak and Tribute Ale Pasty in time for the New Year celebrations.

The limited edition product, made with 100% British steak, launched on 28 December with an RRP of £1.99. The product is supported by a range of eye-catching point of sale materials.

www.slrmag.co.uk

21/12/2016 09:46:55

Product News & Media Watch Oreo Thins Mondeléz International

Bold Irresistible Procter & Gamble UK

Biscuit maker Oreo has introduced a new, refined variant of its popular snack in the form of Oreo Thins.

Available in Original Vanilla and Chocolate Cream, Oreo Thins are ‘thinner and more delicate Oreo cookies with a layer of creamy filling’, with 48g packs coming in a case of 24 at an RRP of 55p (PMP and unmarked packs available).

Extra Cool Breeze Mars

Bold 2in1 has introduced two new ‘Irresistible’ scents to its range of detergents. The new range is available in two luxurious fragrances: Sparkling Bloom & Yellow Poppy; and Plumeria & White Orchid.

New packaging featuring a colourful background has been designed to emphasise the fragrance delivery of the product.

Mars baking mixes Mars

Wrigley’s successful Extra sugar free gum bottle range is expanding with the launch of Extra Cool Breeze 60 pellet bottles, the flavour which is currently its fourth biggest selling product in the 10-pellet pack range.

Extra Cool Breeze Bottle (60pc) is available now and has an RRP of £1.99.

Mars Chocolate Drinks and Treats has launched two new baking mixes: Galaxy Double Chocolate Brownie Mix and Skittles Cookie Mix. The Galaxy Double Chocolate Brownie Mix (RRP £2.38) makes 12 brownies containing Galaxy chocolate chips and the Skittles Cookie Mix (RRP £1.84) makes eight colourful fruit-flavoured cookies.

MEDIAwatch

Hotlines



A healthy start to 2017 Alpro is bolstering visibility of its plant-based range. The spotlight is on two of its star-performing products in a new fully-integrated marketing campaign during the key New Year sales period. On screens until March, the ad is designed to inspire viewers to add a twist to their routine by ‘waking up to a world of delicious and nutritious plant-based choices’.

Always rewrites the rules In support of an upgraded pack for the Always Ultra Range, a new campaign will run until March and encompasses TV, print, social media and in-store activity. The new video is the second episode of the Always #RewriteTheRules campaign, which aims to help girls and women stay confident so that they can defy expectations of what it means to be female.

Thanks a million The UK National Lottery is thanking players for their contribution to half a million projects that have been funded by lottery sales. In a 40-second advert, a lottery ticket is seen flying across the UK, past famous landmarks like the Giant’s Causeway in Antrim. For every £1 spent on the company’s games, 28p is donated to the Good Causes Fund.

Corn Flakes breaks its fast Penguin Minis McVities

Hobnob Nibbles McVities

McVitie’s has launched new Penguin Mini Biscuits in a multipack format.

The new bag, which has an RRP of £1.69, includes six uniquely designed inner packs full of McVitie’s Penguin Mini Biscuits. The range will form part of the wider McVitie’s Sweeet campaign which has seen a £20m investment to date.

McVitie’s has extended its Nibbles range, with the launch of Hobnobs Nibbles. Available in a resealable pouch from January across grocery and convenience, McVitie’s Hobnobs Nibbles is offered in two pouch formats: 120g (RSP £1.89) and 80g (£1 PMP). This latest range extension will be supported by the McVitie’s Sweeet campaign with a media spend of £3m.

Following a six year absence from commercial marketing activity, Kellogg’s has launched a new media campaign for Corn Flakes. The 12-month campaign includes TV and digital advertising that will play out across 26 weeks of the year. The advertisement aims to stir nostalgia and remind people what they love about Corn Flakes.

Whiskas meaty marketing Mars Petcare has launched a range of meaty casseroles by the nation’s No.1 cat food brand, Whiskas. The launch is being supported by a £10m media spend, which includes a new Whiskas TV advert, set to hit screens in February 2017. There’s also a raft of online YouTube advertising and social media activity.

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

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Feature

Energy Drinks

ONE IN TWO ‘drink now’ soft drinks purchased in Scotland is an energy drink.

RE-ENERGISE YOUR PROFITS

Consumers are demanding a wide range of choice across the soft drinks category, and energy drinks, in particular, have evolved in recent years. Energy is the best-selling soft drinks sector for independents, with sales driven by a focus on innovation.

BY ÉMER O’TOOLE

W

hen it comes to energy drinks sales, choice is crucial. It is worth making the most of NPD and trends within the category.

The majority of energy drink sales are for immediate consumption, so it’s important to make sure they’re stored in the chiller where possible so they’re cold and ready to drink. Positioning energy drinks prominently at the centre of the unit can highlight the full range offered, helping consumers easily find their favourite variant.

Shoppers are always looking for value for money, and convenience stores are in the ideal position to use PMPs as a tool for growing sales. CCE offers Monster Energy at £1.19, and Relentless 42

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at £1, helping to improve perceptions of value.

Ensuring the fixture is easy to shop is key, and grouping different variants of the same brand together will create a stand-out block on the shelf. Sales of energy drinks for future consumption are increasing as people stock ahead. Therefore, offering packs like 4x500ml Monster Energy and Monster Energy Ultra White can help retailers to further boost energy drinks sales.

AG Barr says sugar is an important ingredient in energy drinks for the majority of customers. However, more consumers are looking for a lower calorie or even sugar free option.

Rockstar Pure Zero was launched to meet this demand, fulfilling both the lower calorie and zero sugar options

without compromise on taste.

“The modern day soft drink consumer is becoming increasingly health conscious, and the energy drinks sector is adapting to demand for lighter options,” says Amy Burgess, CCEP’s Trade Communications Manager. The Monster Energy Ultra range from CCEP offers three different flavours with no calories. It’s available in Monster Energy Ultra White, a sparkling citrus flavour Ultra Sunrise, a citrus and orange twist, and Ultra Red. Positioning zero sugar variants, such as Monster Energy Ultra, alongside their original equivalents can help highlight the choice of lighter options on offer.

Energy drinks is a growing category and retailers should focus on offering as wide a choice of different products as possible to meet all consumer tastes. www.slrmag.co.uk

21/12/2016 10:10:36

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20/12/2016 14:56

Tobacco

Feature

PLAIN TRUTH Tobacco is the most regulated product in the retailer’s stock.

Whatever the case for or against, tobacco remains a key part of the convenience store business. The category is both a sales driver and therefore great for cash flow, and brings valuable footfall, increasing sales and overall basket spend.

BY ÉMER O’TOOLE

I

n about four months, by the transition day on 20 May, all tobacco sold in Scotland must comply with EUTPD2 and UK plain pack rules. While retailers are legally obliged to make sure they properly understand the new regulations, they also must ensure that the category continues to earn its place in the most visited area of the store.

Regardless of the impending legislative changes, however, it remains just as important that retailers don’t lose sight of the category management fundamentals: ranging and availability. As good retailers agree, the best way to keep accessories front of mind is to offer a proven, core range to customers, supported by well-established brands and products, as well as stocking NPD that reflects recent market trends. This not only helps to drive profits, but will also help retailers to differentiate from their competitors and bring in repeat consumer traffic.

Where does the future lie, now we are entering the post-display, post-minimum pack size environment? RYO will see some of the biggest changes, not just a move to minimally branded standardised packaging, but also a hike for minimum permissible

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packsize to 30g. Jeremy Blackburn, head of communications at JTI, says: “With the introduction of TPD2 and plain packaging we are entering a new phase – and it is difficult to predict the actual date when TPD2 stock will appear on shelves for specific brands.”

Retailers are encouraged to ensure they maintain a good selection of brands across all price segments, to cater for the needs of their existing adult smoker customers and remain a destination of choice. The Value price sector which includes Value, Super Value and Ultra Value segments, holds a 55.4% 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. While the Value sector is showing growth, retailers will be monitoring the whole category over the coming year, as the fundamental changes to tobacco retailing take effect on their own businesses, and how that new framework sits with their business plans.

Research from Palmer and Harvey reveals that a third of retailers still have not heard of the EUTPD2, so educating yourself and your team before the deadline will be crucial to maintain tobacco sales. JTI maintains an education website at www.jtiadvance.co.uk.

www.slrmag.co.uk

21/12/2016 13:25:44

Feature

T

Fascia and Franchise

here are over 15,000 shops trading under symbol branding in the UK, according to the new Local Shop Report. In Scotland, sales in symbol stores continue to outperform unaffiliated stores. SLR’s guide to joining a symbol store in 2017 examines the main category strengths of groups, and compares year on year performance.

The ‘symbol’ groups are predominantly groups of independent retailers trading under a common customer facing brand – familiar symbol group brands include Spar, Londis, Nisa Local, Premier and Best-One. In the UK, independent retailers (non-affiliated and symbol) continue to make the biggest contribution to the overall sales of the sector, in addition to having the highest number of stores by a significant margin.

By 2020 IGD predicts that the convenience market will be worth a staggering £44.1bn – that’s a growth of 17%. While this is a prediction, there’s no doubting the growth of the sector over the last five years: between 2010-15 the value of convenience grew 27.4% and is currently worth £37.7bn. Is it any wonder more retailers are looking at how they can grow their business?

For several years symbol stores including those run under the fascias noted above, and also others such as Costcutter, Day-Today, and Keystore, have formed one of UK’s food and drink retail success stories. However, the

retail environment is always changing. The supermarket giants – especially Tesco and Sainsbury’s in the last few years in Scotland’s major cities and towns – are moving into the c-store retailing space with a vengeance.

For retailers who are currently not part of a symbol group, there are huge advantages to getting affiliated. Likewise, for retailers who are currently with one group, there has never been a better time to shop around. The most recent IGD figures show that there are 15,423 symbol stores in the UK in 2015, up 1.6% on the previous year, while unaffiliated stores are down 0.7% to 18,507. While the discounters grow market share and supermarkets expand into the convenience space, independent retailers are becoming more reliant on their wholesalers and the symbol offerings they provide.

Much work has been done in recent years by the country’s symbol groups to improve their offer, to make it more appealing for both retailers and consumers. Operating a convenience store in this modern world is about embracing new, innovative solutions – from category management, to mission shopping, technological advancements and energy efficiency.

The last couple of years has seen diversification within the sector, with many groups now offering multiple options to retailers depending on their store’s demographic and size. The premium My

Costcutter from Costcutter Convenience Stores being one example, while at the other end Booker’s Family Shopper has managed to blur the lines between c-store, discounter and pound shop. 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. One Stop has launched nine stores in Scotland over the last year. The Tesco subsidiary has opened company-owned and franchise stores, which gives independent retailers an entirely new concept. With huge buying power and insight into shopper habits, One Stop is set to grow in Scotland.

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.

This guide to what fascias and franchise operations have to offer is an ideal introduction to what is out there. For retailers looking to join a symbol group, the following pages will provide you with an extensive overview of options from many of the major groups.

With one in every three c-stores being a part of a symbol group, the trend is growing, and 2017 is the ideal time to get affiliated.

SYMBOL OF

The advance of the multiples into symbol territory continues, but there is still growth in the sector. The ultimate winners are shoppers who see better quality and more competition on the high street. So what can symbols do to capture that market, and persuade retailers to join their group?

BY ÉMER O’TOOLE 46

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WHY JOIN A SYMBOL GROUP? Q Q Q Q Q Q Q

Wide range of products IT and HR support Regular communication Marketing in trade press Recognised brand above the door Dedicated trade website Buying power and promotional activity www.slrmag.co.uk

21/12/2016 10:24:38

Fascia and Franchise

Feature

OF SUCCESS www.slrmag.co.uk

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Feature

Lifestyle Express

LIFESTYLE EXPRESS: RUN YOUR BUSINESS YOUR WAY BACKED BY THE BEST SUPPORT IN THE BUSINESS

A

s we head into a brand new year, the pressure remains for retailers to stay ahead of the game. Whether you’re competing against other independent retailers, symbol stores, the supermarkets or the discounters, it’s vital that you stand out from the competition.

At Lifestyle Express we understand this, and this is why we provide our retailers with the very best support, industry expertise and benefits of a national symbol group, while you maintain your independence and run your business your way.

At Lifestyle Express we offer retailers a comprehensive, award-winning retailer package with a proven track record, including bespoke store planning, industry-leading planograms and ongoing advice on range and store merchandising. Our popular, great-value own brand ranges offer excellent margins to retailers as well as offering a strong point of difference. We also offer a range of fantastic money-saving deals on store services, but with no membership fees or hidden costs. And there’s no minimum store size or minimum turnover required, just the potential to grow.

And that’s not all. Lifestyle Express retailers can also benefit from regular Cash Back, as well as being able to buy goods at cash and carry prices. We run regular promotions to help you compete locally which are proven to build business and increase your sales and profits.

Last year we launched two brand new premium store formats: Lifestyle Extra and Lifestyle Value. These contemporary-style stores provide retailers with the perfect format

to best reflect their trading location. Earlier this year, we also launched our premium grey fascia to provide a contemporary new look.

With a nationally recognised fascia and branding, Lifestyle Express helps you to compete within the convenience market where we know first impressions really count.

With Lifestyle Express you can benefit from:

30% GROWTH IN SALES On average, independent retailers achieve a 30% increase in retail sales after joining Lifestyle Express. We’ve carried out extensive research and identified a comprehensive range of bestselling products. By stocking these, and using our industry-leading planograms, you won’t fail to see a surge in sales.

ESSENTIAL ONGOING SUPPORT We have a team of core range advisors who work with retailers to identify op-portunities to boost your sales and profit. By working with our advisors, you’ll know you have a fantastic mix of key products at different price points to suit all your customers’ needs. Retailers also have access to a Retail Development Manager who will provide expert advice on how to successfully grow your business.

EARN CASH BACK Lifestyle Express is the only symbol group to reward retailing excellence. We run regular incentives for our retailers, all with the opportunity to earn Cash Back, just for stocking the bestselling products, displaying POS and adopting best retail practice. For retailers, it’s a win-win situation.

HOW TO JOIN To join Lifestyle Express and get your business moving in the right direction, it couldn’t be easier: Q Either visit your local Landmark Wholesale Member Depot and ask to speak to someone about joining Lifestyle Express and they’ll provide you with all you need to know.

Q Or call John Farrell on 07852 248120 or email john.farrell@lmkcc.co.uk Q Or you can visit our website at www.lifestyle-express.co.uk where you’ll find everything you need to know. Fill in an enquiry form and someone will be in touch shortly.

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LIFESTYLE EXPRESS FAST FACTS Q Average store size: 800 square feet Q Average store turnover: £12,000 per week Q Available fascias: Lifestyle Express, Lifestyle Extra, Lifestyle Value Q Number of UK stores: 1,640, including more than 300 Scottish stores Q Cost of joining: there is no cost to join or membership fee Q Minimum store size/turnover: there is no minimum requirement to join Lifestyle Express.

www.slrmag.co.uk

21/12/2016 10:24:22

No other Symbol Group gives you Cash Back!

I want to make my own decisions about how to run my business and with Lifestyle Express I get the best of both worlds: the freedom to do things my way, but with a fantastic own brand, incredible promotions and the best support in the business.

Uzair Ali Lifestyle Extra, Motherwell

Lifestyle Express retailers enjoy: ■ Regular Cash Back ■ Ongoing business development expertise and support ■ Full promotions programme to help you compete locally ■ No hidden fees

And, average sales growth of 30%*

WINNER

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*30% average retail sales growth when an independent retailer converts to Lifestyle Express

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Lifestyle Express

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Landmark Wholesale

Landmark Wholesale

Landmark Wholesale

Landmark Wholesale

Landmark Wholesale

Landmark Wholesale

Landmark Wholesale

Best Retailer for Beers Wines and Spirits

Retailers’ Retailer of the Year

Responsible Retailer of the Year

Responsible Selling Retailer of the Year

Best Wholesaler for Availability

Best Wholesaler for Availability

Digital Innovation

Wholesale Service to Caterers

Telesales Executive

Customer Support

Best Delivered Operation

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T G he ro S up ym fr bo om l

To boost your sales by 30% and earn Cash Back, please give John Farrell a call on 07852 248120 or email john.farrell@lmkcc.co.uk Alternatively, visit http://brws.it/lse15 to find out more.

■ A choice of premium fascias

www.lifestyle-express.co.uk 08/12/2016 14:35

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2016

Winner: Shop Layout. Winner: Availabilty

WINNER FRANCHISE GROUP OF THE YEAR

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Feature

Costcutter Supermarkets Group

THE PERFECT PARTNERSHIP WITH COSTCUTTER SUPERMARKETS GROUP

THE RETAIL EXPERTS With more than 2,600 stores and some of the largest buying power in the sector, our scale gives retailers the competitive advantage needed to thrive locally.

It means we can drive prices down across all ranges – from tobacco and alcohol, to chilled, fresh and grocery goods. As more retailers join, our buying power goes from strength to strength.

MEETING SHOPPERS NEEDS Our stores tap in to the needs of today’s shopper with 10,000 lines, including our award winning Independent own brand. Whether customers want to grab a spot of lunch, a fresh coffee, pay a bill, pick up a parcel or fill a basket for tonight’s dinner, our stores are very convenient and offer great value for money.

AMAZING BRANDS Simply Fresh and Costcutter have brand awareness of up to 93% and we know that having our name above the door is a great attraction to shoppers. We offer retail brands that appeal to shoppers no matter the store type, size or location. We’re here to help our retailers succeed and help create exciting and contemporary retail environments with insight and advice on how to merchandise to maximise sales. We make it very easy for retailers to do business with us, with simple, transparent and competitive pricing.

We also do not charge any membership fees.

THE MOST DIGITALLY ENABLED GROUP With two-thirds of adults in the UK owning a smartphone and 90% of 16-24 year-olds having one, a strong social media presence is key to reaching shoppers. We have taken the lead on social media and proximity marketing in the convenience sector, helping our retailers to engage with their customers and drive footfall and sales in their stores.

LEADING EDGE RETAIL TECHNOLOGY We place technology innovation at our retailers’ fingertips, offering state-of-the-art systems that make life easier.

We offer the latest in-store technologies that shoppers demand – like easier payments via Apple Pay, Android pay and Contactless. Our cutting edge Activ Technology systems, including ActivCPoS, ActivOC and the retailer portal ActivHUB, have been developed to make running the store a whole lot easier. Hassle free ordering and our ActivMOBILE app allows access to all of this information on the go.

KEEPING YOU INDEPENDENT We actively help retailers to run their stores their way, and protect their independence. Our retailers get the power of our brands and group strength, but run their stores the way they want to, which is the best of both worlds.

To find out more reasons why you should join Costcutter Supermarkets Group call us on 01904 488663 or visit WWW.COSTCUTTERSUPERMARKETSGROUP.COM

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www.slrmag.co.uk

21/12/2016 10:24:03

SGF Advert_A4 edit.pdf

1

16/12/2016

16:35

Reason

2

#

We Help You Fight Back 75% of people now shop at Aldi or Lidl.

*Nielsen 2016

We’re here to help you win back your customers.

Our competitive prices and range of 10,000 lines deliver great margins for you and great value for your shoppers.*

Discover more reasons for us to talk‌ Call 01904 486 543 or visit www.costcuttersupermarketsgroup.com

Reasons to talk

Untitled-2 2

21/12/2016 10:47:11

Untitled-2 3

21/12/2016 10:47:12

Feature

Londis

LONDIS FOR FLEXIBILITY With options to suit every prospective partner, and a UK-wide support network, the familiar high-street name is an excellent choice for both experienced store owners and those new to the sector.

L

ondis has over 1,900 members across the UK and is part of Booker Group, the UK’s leading food and drink wholesaler.

Londis works in partnership with its independent retailers to provide local communities with all they need from a convenience store.

As well as the strength of a well-established nationally recognised brand, Londis supports retailers with better pricing, award-winning own label ranges, fantastic value promotions, a market-leading supply chain and bespoke store development to suit their local market and to help them succeed in today’s competitive convenience market.

The benefits of the Londis offer include: Q FREE Membership Q FREE Marketing Support with FREE leaflets and Point of Sale Q Competitive Wholesale Prices Q Great value promotions every 4 weeks Q Award-winning Fresh range with over 1,250 lines Q Award-winning own brand ranges Euro Shopper, Happy Shopper and Farm Fresh Q A best in class online web ordering system (Londis Webshop).

Q Spend & Save discount scheme; earn up to 4% discount Q Support from our dedicated Store Development and Retail Development teams Q Tri Temperature fleet delivering all your ambient, fresh and frozen needs on one delivery Q Free Membership of the ACS 56

SLR | JANUARY 2017

Feature - Fascia.indd 56

Londis is a flexible symbol partner that’s simple to do business with. It is a fully delivered service solution and support package to suit progressive independent retailers with stores over 500sq ft. The strength of being part of the Booker Group means that we can offer you the best range of products at the best possible prices and we aim to ensure this by price checking the top-selling 300 lines on a weekly basis.

At Londis we are dedicated to helping our retailers Make More and Save More Money, and in 2016 have helped our retailers Make and Save over £21k. Combine this with the quality of our store development, smart planning, local knowledge, range optimisation and expert merchandising and we believe we can help any independent retailer improve their cash profit. We continue to focus on delivering Better Choice, Price and Service for our Independent Retail Partners and supporting them to grow their business locally. www.slrmag.co.uk

21/12/2016 10:23:44

“Londis provides a fantastic package. It’s helped me increase my profits, so I’m happy!”

Bryan Craig Londis Crianlarich

Join Londis today and watch your profits grow FREE

Membership

FREE

Leaflet Scheme

FREE

EPOS System

NEW

Discount Scheme

A new and LOWER cost Londis that’s SIMPLER to do business with

joinlondis.co.uk 74478_Lon_Recruitment_A4_v3.indd 5

08/12/2016 15:57

Be part of the winning t

Supported locally by the largest Scottish based sales team in t

To join our award-winning group, contact Marketing on 01382 Untitled-1 2

20/12/2016 17:05:55

51

g team!

am in the symbol sector!

82 512000 Untitled-1 3

20/12/2016 17:05:55

Feature

Nisa

MAKE A DIFFERENCE WITH NISA As one of the most recognised brands on the high street, Nisa offers retailers a fresh outlook and a proven brand, that sits well in the community and attracts customers from the very first trading day.

N

isa Retail is unique in the convenience sector as it is a mutual style company which means it is owned by its independent retail members. Retailers have the option to operate under four symbol fascias: Nisa Local, Nisa Extra, Loco and dual branded whereby a member can maintain their true local identity whilst also benefiting from the strength of the Nisa brand.

Alternatively, a retailer can also choose to trade under their own fascia.

Nisa provides a complete retail support package which comprises a strong retail focussed team, an enhanced category management system, a bespoke staff training facility under the Retail Academy banner, and a comprehensive marketing package incorporating bespoke leaflets, point of sale material and national advertising. All of this is in addition to the award-winning supply chain, a strong own label range and over 13,000 SKUs. Nisa’s key focus for the year has been on customer relationships and driving brand standards to be synonymous with customer service and consumer offering. Customer relationships doesn’t just refer to the service standards provided, which of course are extremely important, but is also about delivering a proposition the customer can relate to.

Nisa knows that community involvement is key, and our members are able to support their local area through Nisa’s Making A Difference Locally charity, which in 2016 donated over £1m to charities and good causes throughout the UK. Within the last year, Nisa has developed its Store of the Future 2 store format, which has seen retailers on average achieve double digit uplift in sales following conversion. This looks at different store formats, customer demographics and shopping missions to ensure the right one is implemented in each location. The analysis behind the development

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of the new store formats was based on careful consumer research examining shopper missions by location and demographics.

Nisa’s flexible model provides its retailers with an unbeatable breadth of range, with a 98% availability rate, to ensure they can provide a single destination shop for all their customers’ needs. This is supported by Nisa’s award winning own label range, Heritage, which provides retailers with over 800 SKUs which have been reformulated and repackaged to ensure they offer great quality products at affordable prices.

Through Nisa membership, retailers can also source local products and have them invoiced centrally, creating a simpler and more time efficient process. All orders are placed directly with the individual suppliers, deliveries are made direct to store, but the invoicing and administration is managed centrally taking the hassle and complexity away from the retailer.

This is all delivered by Nisa’s industry leading supply chain which retailers can trust with an impressive 99.91% of deliveries made on the day and 95% successfully made on time. In addition to this, Nisa provides retailers with a comprehensive marketing package incorporating industry first bespoke leaflets, allowing members to personalise the leaflets to include local offers, local events and community news, as well as a personalised Nisa FM which provides retailers with a strong radio network for their store.

Perhaps most importantly, Nisa has a mutual model, which is unique to the sector. Nisa is owned by its members and as such, in addition to all of the elements mentioned above, retailers also earn rebates and can enjoy surplus profit share and dividend payments which further add to Nisa’s competitiveness and strengthens its position as the partner of choice.

www.slrmag.co.uk

21/12/2016 10:24:54

JOIN US NOW FOR A 2017

WITH NISA, IT’S GOING VERY WELL. ITS RANGE IS UNPARALLELED SO I CAN COVER ALL THE BASES “We’ve been Nisa members since day one when I bought the shop. This was largely to help cater for both old and new customers.

For that, I needed a large range of products to pick from at a cost which made me as competitive as I could be.

Ordering is simple and fully automated – we place orders online and they turn up two days later. I came from the wholesale sector, so I know what it’s like, and I can’t fault Nisa at all for availability and the way it delivers to retailers.”

I married Nisa’s suggested range with what the store already stocked. I wanted to make sure I was giving the existing customer base what it was looking for. New customers have provided the opportunity to stock more indulgent lines.

Colin Smith

Range: “ Product range of

13,000

skus enhanced with 100’s of promotions

NISA MEMBER SINCE 2014

To find out why joining Nisa is as easy as 1-2-3 visit www.join-nisa.co.uk 12522_NISAtradePress_Pinkies_2017_A4_AW01.indd 1

18/11/2016 17:21

Feature

Booker

SOMETHING FOR EVERYONE Premier and Family Shopper gives prospective retailers the opportunity to find the right blend for their business.

P

really drives the value message to help retailers grow their business.

Family Shopper is a 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 sales and profits from the discount sector. A key feature of Family Shopper is long term deals, which offer the consumer, fantastic value every day.

The unique discount format provides retailers with everything that shoppers would expect, including chilled, alcohol, grocery and tobacco along with services such as Lotto and Paypoint. This is 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 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 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.

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 3,300 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 advertised on TV for the past two years. This is a commitment to advertise Premier everyday which means over 200 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,

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www.slrmag.co.uk

21/12/2016 10:25:05

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 64294 SLR Jan 2016 - Fascia Feature.indd 1

“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

01/12/2015 14:06

Matching the right retail solution to your business

With 6% growth in Scotland, a variety of formats for convenience and forecourt retailers and sector leading consumer offers, it’s time to switch to Best-one for a really prosperous New Year.

Among the many Best-one benefits are:

£1.79

£1

£1.59

NOW

150g

•

Free point-of-sale including promotions package

•

Monthly business development meetings

•

•

Joint business planning for your store/forecourt

Over 1500 chilled, fresh and frozen lines and award winning own label lines

•

1x30Pk

£3

400g

student life

Enhanced promotion pricing and extended buying in period

•

400g

NOW

£3.67

£1

£8.99

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240s WAS £7.35

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l

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NOW

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£3.99

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NOW £2.99

1st September 2016 - 30th September 2016 Offers only available in selected Best-one stores

Red 4Pk

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£4.49

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Free fascia for Symbol Group members (subject to terms and conditions)

What retailers are required to commit to

Store design & shopfitting/ merchandising bespoke to industry leading standards

• •

4x250ml

mber 2016 - 30th Septe

•

My Rewards rebate scheme (fascia stores only) which can be re-invested in store development (subject to terms and conditions)

• •

Investing to meet the Best-one in-store brand standards Minimum £18,000 wholesale spend (cash/credit) per month 100% support of the 5 ‘Wow Deals’ and 15 ‘Must Feature’ promotions each month - these are fantastic consumer offers Accept allocation of stock of ‘Wow Deal’ and ‘Must Feature’ products Minimum two deliveries of chilled and frozen foods per week

BRV94578_14

NOW

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NOW

for value!

300+ direct to store suppliers at Bestway Wholesale negotiated terms

Bestway’s highly competitive wholesale pricing

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•

•

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20/12/2016 17:06:51

In today’s increasingly competitive convenience market, it is essential to pick the right symbol group to provide the support your business needs.

Bestway Batleys offer tailor made solutions with two leading retail groups that provide all you need to be a successful and profitable independent Scottish retailer.

What the retailers say

•

Category planograms and member website

•

Free point-of-sale

“The Best-one team came up with a revamped fascia and in-store design which is really appealing to customers.

The Best-in own-label is second to none – a huge range and exceptional quality.

By switching to Best-one, I’m better off financially by over £30,000 per year compared to my previous symbol group supplier.”

Darren Briggs

•

Free consumer leaflets

Best-one Retailer Dragon Service Stations

•

Bestway wholesale’s highly competitive wholesale pricing

Bestway Wholesale’s Xtra Local Retail Club provides a special members’ monthly promotion schedule with highly competitive deals in addition to the normal cash & carry deals.

What Xtra Local offers:

ISSUE 2

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• RETAIL CLUB PROMOT • RETAIL CLUB ORDER ION ACTIVITY • IMPACT ON CONVENIFORM ENCE TRENDS 10451 Cadbury flavourism

Impact FC ad copy.pdf

PREPRESS CHECK LIST

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Your number one stop for great deals ...month in month out!

18th JanuaryBUY IN PERIOD STARTS to 28th February 2015 SELLING 1st February OUT PERIOD STARTS to 28th February 2015

NOW ONLINE AT:

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© Britvic © Britvic Soft Drinks, Soft Drinks, all rights all rights reserved. reserved.

“I was very sceptical about Retail Club.

However, I soon realised with the help and support I receive, it was the best thing I have done for my business. There is help with every step of the way. I am now upgrading my shop adding extra services and great promotions.

Give it a try and see the difference for yourself.”

A. Sehzad Xtra Local Retailer Mary’s News, Hoyland

2015

al Bestway Batleys depot manager or visit best-one.co.uk or xtralocal.co.uk Untitled-1 3

20/12/2016 17:06:53

Feature

Healthy Options

YOPLAIT INTRODUCE NEW 0% FAT YOGHURT RANGE FOR ADULTS Yoplait is capitalising on the low fat trend with the launch of Super Fruitii, a creamy yoghurt served on a layer of fruits.

The yoghurt is available in the following flavours: Blueberry, Strawberry & Goji Berry; Mango, Papaya & Aloe Vera; and Raspberry, Cranberry & Pomegranate.

The Super Fruitii range contains 60 calories and contains 30% less sugar than average fat-free yoghurts.

It is also fortified with calcium and essential vitamins D and B2.

Joanna Abram, Marketing Manager at Yoplait, said: “We will also be supporting the launch with a six-figure marketing campaign starting in January 2017.”

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‘FREE-FROM’ MERCHANDISING TIPS FROM YUSHOI: 1. Have a full range of free-from products that you are able to showcase, which include a variety of ingredients, not just potato.

2. Choose a selection of snacks that are baked and better for you, which can feature at till points to drive impulse sales.

3. Create theatre in store with meal deals or big night in to direct people to make choices that will build on incremental sales.

4. People often want to try something different. As well as picking up their preferred choice, give them the chance to try new snacks by holding sampling sessions.

5. Make sure that better for you snacks are clearly distinguished as offering additional benefits such as high in protein and fibre, which will keep people fuller for longer.

www.slrmag.co.uk

21/12/2016 10:15:22

Healthy Options

Feature

ADOPT A HEALTHY OUTLOOK

January brings with it a clamour for ‘better for you’ products as consumers seek to combat the excesses of the festive season. It marks a key opportunity for convenience retailers to showcase how they can offer a strong range of products for shoppers looking to get their year off to a healthy start.

BY ÉMER O’TOOLE

W FREE-FROM The free-from trend has had a significant impact on the rise of healthy options. Display free-from and better for you products on dedicated fixtures that are clearly labelled. Explain which products contain what ingredients, as will help retailers to showcase that they cater for this trend. This will also help consumers to make quick and informed choices.

According to MOMA, 15% of consumers are now buying gluten-free so there is a considerable appetite for free-from options, with the appeal of these products becoming more widely accepted by consumers. MOMA adapted their porridge range to be entirely gluten-free in April 2015, using gluten-free oats, to cater for those with allergies and also for consumers looking for a healthier breakfast option. Since then, MOMA has seen a 65% increase in porridge sales.

www.slrmag.co.uk

Feature - Healthy Options.indd 67

ith a growing emphasis on healthy food, customers want to purchase snacks that deliver some added value, whether that is a source of nutrients such as fibre and protein which can keep you fuller for longer, or baked products that can be an alternative to fried crisps.

With people becoming more demanding when it comes to the foods that they eat, it is important that retailers ensure the products they stock meet with the needs of their customers. Consumers want more variety, especially from the snacking aisles and that means that there needs to be a range of ingredients, flavours and textures that fit within the better for you fixture.

Parents in particular are increasingly concerned about what their children drink. The growing issues with obesity and the government’s developing childhood obesity strategy has brought consumption habits, calorie control, weight gain and sedentary living to front of mind, and this is one of the reasons Highland Spring says it is seeing consumers switch into bottled water from sugary soft drinks. Grace Aloe Zero is a smooth aloe vera drink with zero sugar. Grace Aloe Refresh contains 50% less sugar than regular Grace Aloe Vera drinks, with just 105 calories or less per bottle. Both ranges contain only natural flavours and colours and 100% of your daily recommended Vitamin C per bottle, which helps reduce fatigue.

Vimto Remix caters to customers increasingly looking for flavour innovation across dilutes, carbonates and RTD formats; and is available in in Mango, Strawberry & Pineapple flavour. Vimto research reveals that as many as 54% of consumers are currently looking for low sugar in their purchases. However, no-added-sugar currently only accounts for 21% of the soft drinks range stocked in most c-stores, and this shows that retailers need to expand their range to cash in on sales.

The healthier biscuits category is also growing. Belvita Breakfast Biscuits was created on the research that one in three people in the UK skip breakfast, according to Mintel. Therefore, on-thego breakfast formats are an important opportunity for retailers. MOMA’s gluten-free Coconut and Chia Porridge Pot is another popular on-the-go breakfast. It contains a blend of oats, chia seeds, coconut pieces and coconut milk powder. It provides customers with a slow release of energy as well as key vitamins and minerals required for a healthy breakfast.

With the government and the media continuing to focus on obesity, and low calorie and low sugar products, better for you will continue to be a key trend in 2017.

This will also result in the demand for more innovative products and flavour choices, so retailers should keep an eye on trends in the category.

JANUARY 2017 | SLR

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21/12/2016 10:15:24

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21/12/2016 10:16:14

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21/12/2016 10:16:15

UTC

AS CHRISTMAS JUMPERS GO, THAT’S A WHOPPER

Thanks to his extensive collection of moth-eaten woolly jumpers and cardigans, UTC has to put up with Christmas jumper gags all year round at SLR Towers – which he takes in surprisingly good grace.

His jumper collection has a place very close to his heart, you see.

So you can just imagine his lack of delight at the SLR Christmas party when a colleague presented him with his very own Burger King interactive Christmas jumper to help “really light up the festive period”.

The jumper has a wee kangaroo-style pouch in the front where you can slot in your iPhone after downloading an app that plays a film of flames and makes it look like the fireplace on your jumper is actually on fire.

The auld yin never even cracked a smile and was last seen reluctantly forcing his old Nokia 3310 into the pouch.

AH, WHAT A YEAR IT WAS… Speaking of the SLR Christmas party, one of the wags in the office suggested that everyone chipped in to buy UTC a wee bottle of the old uisge beatha for Christmas as he does love a wee dram, as we all know.

But this wasn’t just any old bottle of whisky.

No siree, this was a Benromach 1973 – the perfect gift as 1973 was apparently the last time the auld yin bought a round.

Turns out a Benromach 1973 costs £1,395 though, so he got a bottle of Grouse as usual.

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SLR | JANUARY 2017

ALL IN A GOOD CAUSE

While he declined to join the team himself, UTC was very taken with last month’s CEO Sleep-Out, organised by the Social Bite team, and attended by various members of the Scottish local retailing trade including JW Filshill’s Simon Hannah, Chris Miller and David Moore.

The trio joined 100 other Scottish business leaders as well as Britain’s greatest ever Olympian Sir Chris Hoy, all committed to helping Scotland’s most vulnerable people by raising money to help break the cycle of homelessness in Scotland. The Sleep-Out raised much needed funds for Social Bite’s plan to build a village for 20 homeless individuals to live for 12 months. This village will not only put roofs over people’s heads but will also be paired with full support to help them get back on their feet as well as provding links to employment opportunities.

UTC said he was “a bit auld for that kind of rough sleeping carry on” but did donate a couple of bob, and urges you to do likewise by visiting www.justgiving.com/fundraising/ Filshill-CEO-Sleepout-2016

www.slrmag.co.uk

21/12/2016 09:39:08

Untitled-2 1

26/02/2016 16:02:57

Stock the range in store now!

For category advice go to www.deliciousdisplay.co.uk