SLR January 2018 by 55 North

TOM HALL

Can retailers make their data smart?

CRAIG BROWN

JANUARY 2018 | ISSUE 177

WWW.SLRMAG.CO.UK

KeyStore More fascia unveiled

MEGA TRENDS

SCOTTISH BUDGET FUELS UNCERTAINTY

Changes to income tax set to impact on consumer spending.

SLR Rewards 2018 - Itâ&#x20AC;&#x2122;s time to get ready!

IGD highlights key 2018 trends

EASTER SALES

Making the most of Easter

FASCIA FOCUS Symbol groups more in demand than ever

# Th i n kSm a r t

The UKâ&#x20AC;&#x2122;s leading tech, data, digital and loyalty conference for the convenience trade returns. 19th March, 2018 Glasgow Science Centre

To find out how to attend, contact events@55north.com To find out about sponsorship, exhibiting and speaking opportunities, contact Antony at abegley@55north.com

January 2018

Contents

Contents ISSUE 177

NEWS p4 p5 p6 p8 p10 p20 p22 p24

New stores Eros Retail opens new stores in Glenrothes and Dundee under the company’s Greens branding. Consolidation Tesco’s takeover of Booker gets a final stamp of approval from the competition watchdog. Fascias JW Filshill officially launches its new fascia format KeyStore More. Budget The Finance Secretary’s Draft Scottish Budget for 2018-19 gets a mixed response from the retail industry. News Extra Fundraising An SRC report reveals the extent of retailers’ generosity. Product News Cadbury kicks-off a new football-related promotion, while Weetabix offers money off fruit. Off-Trade Loch Lomond Group unveils a major new promotion for Glen’s Vodka. Newstrade The Scottish Sun publishes its first edition with two different front pages in aid of charity Mary’s Meals.

INSIDE BUSINESS p26 Research Digest Nearly half of shoppers are still paying card surcharges as deadline approaches. p28 2 Minutes Of Your Time Craig Brown JW Filshill’s Retail Sales Director talks about its new premium fascia format. p30 2018 Megatrends International research body IGD highlights the five trends it expects to shape the global retail market over the next 12 months. p32 SLR Rewards 2018 It’s time to enter the most Rewarding awards in retail. p36 ThinkSmart Update A further two speakers are confirmed for SLR’s groundbreaking retail tech and data event. p38 Retail Analytics IRI Worldwide’s Tom Hall asks if retailers and brands can turn big data into smart data. p40 Woodlands Local The latest update from SLR’s store in Falkirk. p42 Hotlines Our monthly round-up of the latest new products to launch into convenience. p70 Under The Counter The Curmudgeon-in-Chief is shocked to discover people tend to overeat at Christmas. FEATURES p44 Fascia Guide Industry upheaval has left many retailers facing an uncertain future considering their options. p60 Tobacco Last year’s EUTPD2 legislation has led to a 4% shift from factory-made cigarettes into RYO. p66 Easter Always a key seasonal sales opportunity for local retailers, Easter is a time to play to your own strengths in the face of deep discounting from the multiples.

ON THE COVER p14 December’s draft Scottish Budget contains several very worrying developments that may hinder growth.

www.slrmag.co.uk

JANUARY 2018 | SLR

News BUSINESS Harris Aslam extends portfolio

Something ﬁshy about Quorn sausage rolls Quorn is to change its sausage roll packaging in the wake of a Twitter backlash. An eagle-eyed consumer noticed that the socalled 12-pack actually contained three normal-sized sausage rolls. An asterisk on the packaging then led to a disclaimer that the contents made “12 mini rolls when cut into 4’s”. The disgruntled shopper quickly tweeted photographic evidence of Quorn’s chicanery, garnering over 52,000 likes and almost 25,000 retweets in less than four days. Quorn agreed that the wording “has the potential to cause confusion” and will update the packaging when it is next printed.

Certas appoints new Retail Director Richard Billington has been named as Certas Energy’s new Retail Director. He replaces Ramsay MacDonald, who leaves Certas at the end of December after more than seven years with

New stores for Eros Eros Retail has opened two new stores in Glenrothes and Dundee under the company’s Greens branding. First to launch was the new ‘Little Greens’ store in Coaltown of Balgonie, a small village in Fife just a couple of miles from the group’s flagship store in Markinch. Despite competition from a local Co-op, M&S Food and the Greens of Markinch store, the 1,300sq ft Little Greens has already made a name for itself with a strong Food to Go offering. Harris Aslam, Eros Retail Director and SLR Retailer of the Year 2016, said of the smaller store format: “Previously we had a similar range across all our stores regardless of location, but it has become increasingly clear that the different areas have differing demands. Little Greens is all about quality stores with a concise range and an extensive food-to-go focus to take advantage of passing trade.” Also open for business is Greens

of Dundee Nisa Extra, over four times bigger than Little Greens at 5,500sq ft. The city centre store offers a huge array of everyday essentials, a range of Food to Go solutions and a Skwishee slush machine – a winner with the area’s large student population. The business also plans to launch its own bespoke coffee solution – Greens Beans – offering customisable, fresh filter coffee in a wide range of flavours. Free refills

will be offered to encourage repeat custom and “get the brand out there”. The stores are the second and third that Eros has launched this year, with plans for several more in 2018. It also intends to introduce Greens branding into the rest of its portfolio as part of ongoing development. Other plans include a focus on stocking more niche products to offer customers a point of difference.

the company. Billington joined Certas through the Total Butler acquisition in 2013 and has successfully carried out various General Manager roles and was most recently Regional Director for the South East. He has a wealth of experience within the industry.

CollectPlus reaches 7,000th store milestone CollectPlus, the store-based delivery and returns service operated by PayPoint, has added a 7,000th store to its network. CollectPlus has enjoyed yearon-year growth of 23% since 2016 and celebrated the delivery of its 100 millionth parcel in September. PayPoint continues to expand the network, with plans to add further retailers in the new year. Dominic Taylor, CEO of PayPoint, said: “The fact that CollectPlus is present in over 7,000 stores is testament to the huge value that customers see in

BUSINESS Scotfresh MD moves to United

BUSINESS

Gallacher moves to UWS

Spar Govanhill relaunched

Chris Gallacher, Managing Director Scotfresh, is to join United Wholesale (Scotland) as new Operations Director in early 2018. He will report to MD Asim Sarwar. Gallacher brings 23 years of retail experience to the role, having started on the shop floor as a trainee at Booker. He subsequently held a variety of management roles with the wholesaler, including Retail Development Controller for Booker Scotland. During this time, he also held positions in two trade bodies at director level, sitting on the SGF board and as Vice President to Asim Sarwar at the SWA. Most recently, Gallacher joined the independent convenience chain Scotfresh as Operations Manager, and since early 2016 led the group as MD where he was responsible for the day-today running of the business. Chris Gallacher said: “I would like to thank the Chairman of Scotfresh Shaun Marwaha for giving me the opportunity to run a great forward-thinking retail business. My time as MD has given me the knowledge of the challenge that faces the retailers on a day-to-day basis. And I will always be grateful for the learnings I’ve taken away with me.” Asim Sarwar said: “Throughout his career Chris has demonstrated principled leadership, being customer focused, and demonstrating a strong track record of delivering positive change through people in challenging environments. I’m confident that he will be a great addition to the senior team and a huge asset for UWS.”

Spar Govanhilll recently held a relaunch for the store with customers in the local area invited to attend the event held at the store in the run up to Christmas. To celebrate their relaunch, the store offered customers a range of great deals across many products including fresh fruit, snacks and alcohol. They also handed out 75 Spar Brand goody bags to customers who attended the launch and gave customers the chance to enter to win a Fitbit in their instore competition.

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

SLR | JANUARY 2018

www.slrmag.co.uk

News INDUSTRY CONSOLIDATION Competition watchdog gives the go-ahead

Final CMA approval given for Tesco-Booker merger Tesco’s takeover of Booker has been given the go-ahead by the Competition and Markets Authority (CMA). This follows a group of independent CMA panel members examining all the submissions it received since the deal was given provisional clearance in November. The CMA concluded that Tesco, as a retailer, and Booker, as a wholesaler, do not compete head-tohead in most of their activities. It also decided that, although Booker supplies shops that do compete with Tesco, the wholesaler couldn’t directly influence this competition as retailers are free to set their own prices and choose which lines to stock. As part of its investigation, the CMA surveyed hundreds of retailers which showed that most shops use more than one wholesaler and frequently switch. A quarter of symbol group retailers and a third of independent shops switched at least once a month. In addition, almost half of symbol

group retailers surveyed and more than a third of independent retailers said that if Booker were to raise prices after the merger with Tesco, they might stop buying from Booker altogether. And only around a fifth would continue buying the same volumes from Booker, alongside their other wholesalers. The CMA also examined whether the merged company could raise prices or reduce service quality at either the wholesale or retail levels. It found that existing strong competition in wholesale and retail made this unlikely. The CMA also noted that if Booker could get keener prices for its goods from suppliers, this might intensify competition in the wholesale market, leading to cheaper prices for the shops and caterers Booker supplies. Simon Polito, Chair of the inquiry group, said: “We have carefully listened to feedback from retailers and wholesalers who operate in what are highly competitive UK retail and wholesale sectors. Retailers have told us that they shop around for the

best prices and service from their wholesaler, and we are confident that this will continue after Tesco buys Booker. “This has been an important investigation for us. Millions of people use their local supermarket or convenience store to buy their groceries or essentials, so it is vital that they have enough choice to secure the best deal for them. Having examined the evidence in depth, we are satisfied this will remain the case following the merger.” News of the mergers’s approval came at the same time as Booker strengthened its ties with the Forecourt sector following the collapse of P&H. In two separate deals, the wholesaler agreed to supply over 500 Shell stores nationwide along with 370 MRH sites. David Moss, General Manager, Shell Retail UK, said: “We are very pleased to be working with Booker to ensure that there is a safe and reliable supply of products to our service stations.”

2018 Nisa exhibition announced Nisa’s 2018 annual retail exhibition will be held on Tuesday 10 and Wednesday April 11. The event will take place at NAEC Stoneleigh in Warwickshire once again. A website has been launched to allow Nisa members and suppliers to book stands, gala dinner tickets and hotels. Following on from Nisa’s 40th birthday celebration this year, the theme for 2018 will be the 10th anniversary of the Making a Difference Locally charity. Also new for 2018 will be a supplier/trading update to be held on site on the Tuesday, which will be open to all suppliers who purchase a stand.

McColl’s hits £1bn sales mark The latest trading update from McColl’s has revealed the company has achieved annual revenues of over £1bn for the ﬁrst time. The ﬁgures, for the 13- and 52week periods ended November 26, 2017, also showed that total revenue rose 28.9% in Q4 and 19.1% for the full year. The company remains on

WHOLESALERS Supplier launches direct delivery service

PepsiCo starts-up Walkers van sales PepsiCo is launching a new van sales operation to deliver Walkers products direct to independent retailers. The move follows the collapse of P&H, and the loss of its direct-to-store service. An as yet unnamed third party has been approached to provide warehousing and depot services for the new fleet of Walkers-branded vans. The company is also recruiting experienced van sales representatives. Huseyin Tulpar, Vice President, Impulse Sales at PepsiCo UK, said: “The wholesale market is experiencing a significant amount of change and our focus is to ensure that our customers’ needs are being met in the absence of the important direct-to-store service previously provided by P&H. “By establishing our own van sales delivery operation, we can quickly replace that service and ensure our retail customers are getting the direct-to-store service and the continuity of supply they require. It is part of our long-standing commitment to the Impulse market and to supporting local retailers.”

www.slrmag.co.uk

WHOLESALERS

Wholesalers rally round Costcutter Costcutter is relying on four major suppliers to ﬁll the gap left by the collapse of Palmer and Harvey. Musgrave, Bestway, Nisa and the Coop are all providing delivered wholesale support based on their geographic delivery services for the time being. Dumecha joins Bestway and Musgrave in giving extra cash & carry help. Costcutter has also expanded its existing direct to store service. Additional wholesale delivered supply will continue to be introduced up until the proposed Co-op supply agreement in the spring. Nisa’s involvement – which further increases its buying power – comes with the ink barely dry on its deal to supply around 700 McColl’s stores that were former P&H customers.

track to achieve results for the full year in line with management expectations.

Retailer wins £5k with HotPicks Tariq Perwez is the first retailer to win a share of £50,000 through Camelot’s EuroMillions HotPicks incentive. He bagged £5,000 from the scheme which will see 20 independent retailers win £1,000, two pick up five grand and one lucky winner scoop a whopping £20,000 jackpot. Tariq, who has worked in his store in Cardiff for the last 38 years, said he was over the moon with his win. “It’s still not really sunk in, I didn’t believe it at first,” he said. “I even tried to ring back to double-check!”

JANUARY 2018 | SLR

News FASCIAS Filshill launches premium brand

Nisa charity adds ﬁve times the value A recent study has revealed that Nisa’s charity, Making a Difference Locally (MADL), creates social value of £5.16 for every £1 donated to communities served by its stores. The study covers donations that were made by MADL from January to December 2016. During that period, just under 2,000 donations were made by Nisa’s independent retailers ranging from around £50 up to £7,000, though the majority were £500 and below. Beneﬁciaries spanned a wide range of groups from local sports clubs, hospitals and hospices, to schools, food banks and community groups.

Zapper’s Christmas giveaway Zapper’s ‘Zap to Unwrap’ game that gave shoppers the chance to win instant rewards with every app payment over the festive period proved a success. Nisa Local store manager

Filshill unveils new KeyStore More format JW Filshill has officially launched KeyStore More, a new fascia format aimed at providing retailers with a distinct point of difference in a busy retail marketplace that will stimulate growth and offer consumers more choice. Targeting retailers who want to grow their business, KeyStore More is a premium brand created to appeal to consumers seeking a more comprehensive range of fresh and chilled products, food to go, an extensive choice of local Scottish brands, and a modern, high-quality shopping environment. Craig Brown, Filshill’s Retail Sales Director, explained: “KeyStore More is designed to elevate our offer to enable the most progressive retailers to expand their range and provide more of the products and services that our research tells us consumers want.

“This means an upweighted focus on fresh and chilled products, food to go and access to an excellent range of local and Scottish products – all supported by a bespoke promotional campaign and enhanced by a brandnew image that will create consumer interest and add a new dimension to what is already a dynamic retail marketplace. “We’re also tapping into the extensive data at our disposal from our own scanning system, allowing us to gather information on consumer habits in our customers’ stores – this allows us to constantly improve

category management and product ranging in KeyStore More outlets and gives retailers a competitive edge and point of difference over other independents in their area.” Award-winning retailer Wilson Rea is among the first to adopt the new KeyStore More format and after just three weeks has seen sales increase at his 1,800sq ft store on the outskirts of Lanark. “When I compared one week in November with the same week in 2016, sales had jumped almost 10%,” he said. One of Scotland’s most prolific independent retailers with 30plus years’ experience, the South Lanarkshire retailer has installed new signage, LED back lighting, new shelving and a TV promotional screen as part of the refit. Filshill aims to have 20 stores trading as KeyStore More by the end of 2018.

Imran Latif commented: “Our regular customers loved the surprise Christmas giveaway from Zapper every time they paid for their shopping. Zapper has really helped community stores like ours get to know our customers even better.”

First food tourism strategy for Scotland launched Several key bodies from across Scotland’s tourism and food industries have joined forces to develop Scotland’s ﬁrst National Framework to Grow Food Tourism. Looking to capitalise on the opportunity presented by food tourism, Scotland Food & Drink and the Scottish Tourism Alliance are working together with the Culinary Tourism Alliance to shine the spotlight on Scotland’s range of high-quality and diverse produce. The organisations will also look to strengthen the association of Scotland as a place of outstanding food and

CHARITY Scotmid raises money for two good causes

Did you hear the one about Scotmid’s charity joke book? Scotmid Co-operative and Radio Forth 1 joined forces last month to bring customers a ‘Kid in the Kitchen’ joke book just in time for Christmas, with all of proceeds split equally between Radio Forth’s Cash for Kids and Samaritans. The book was launched by the Scotmid Ratho store team and Forth 1’s ‘Boogie in the Morning’ breakfast presenters, Boogie and Arlene, with the help of Cash for Kids mascot, ‘Courage the Cat’. The first ever ‘Kid in the Kitchen’ joke book features hundreds of jokes, written by children across Edinburgh, the Lothians and Fife, which have aired live on the Forth 1 breakfast show’s popular feature over the last year. Around 5,000 books are on sale at Scotmid stores for £2.99 each with proceeds raising vital funds for Cash for Kids and Samaritans, the company’s Charity of the Year. John Brodie, Chief Executive of Scotmid Co-operative which sponsors the daily ‘Kid in the Kitchen’ segment, said: “Our sponsorship of the Kid in the Kitchen section during Forth 1’s Boogie in the Morning show has not only helped to promote our business, but it has proved to be very popular and provided listeners with plenty of laughs over the past year.”

CHARITY

GroceryAid shares best practice for retailer charity events GroceryAid has drafted a code of practice describing what good looks like when retailers run an event on behalf of charities. The ‘GroceryAid Principles of Good Practice’ have been drawn up for GroceryAid with the help of a group of major retailers and suppliers. Chief Executive Steve Barnes said: “We are conﬁdent that by following these best practice guidelines retailers will run charity events that are GSCOP friendly. The best practice document may have a boring title but let me assure anyone who is interested, it is mercifully short.” Christine Tacon, Groceries Code Adjudicator, added: “I’m pleased that organisations such as GroceryAid are working with retailers to consider how any activities they undertake are compliant with the Groceries Supply Code of Practice.” The document is available from the GroceryAid website.

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

SLR | JANUARY 2018

www.slrmag.co.uk

Spring ing PUT A

INTO YOUR

SALES WITH

BRANDS ARE WORTH Â£2.8M AT EASTER* * Source: Nielsen (Total Impulse), 12 wks to w.e 15.04.17

News DRAFT SCOTTISH BUDGET Mixed bag for retailers

Shocking fundraising effort A community-spirited Renfrewshire retailer has raised £1,400 to install a potentially life-saving deﬁbrillator outside

Scottish Budget delivers tax rises and rates savings

his store. Chris Watson, owner of the Corseford Keystore, held a fundraising fun day to mark the 30th anniversary of his involvement with the family-run business, which was started by his father. Customers were entertained by activities including a Corseford’s Got Talent contest and a keepy-uppy display. Adults enjoyed the cheese and wine on offer, while kids could saddle-up for a pony ride. Money left over from the event was donated to a local hospice.

Finance Secretary Derek Mackay’s Draft Scottish Budget for 2018-19 has drawn a mixed response from the retail industry. The Budget saw the introduction of a five-band income tax system for Scotland which features a new 19p starter rate and an intermediate rate of 21p. The higher and top rate both increased by 1p. Mackay said this meant those earning under £33,000 will pay less income tax in 2018-19 than in 2017-18, with higher earners paying proportionately more. Scottish Grocers’ Federation expressed disappointment at the decision to raise income tax. Chief

Executive Pete Cheema said: “It is absolutely clear how important consumer spending is to the wider economy. At a time of zero wage growth and rising inflation it makes no sense to increase taxation. This could seriously impact on sales in the convenience sector.” David Lonsdale, Director of the Scottish Retail Consortium, echoed Cheema’s concerns. “Less money overall in consumers’ pockets is likely to cause shoppers to carefully consider what purchases they can afford. It may also have implications for VAT revenues which are being assigned soon to Holyrood.”

However, both trade bodies welcomed Mackay’s decision to use consumer price inflation (3%) rather than the retail price index (3.9%), which has historically higher, to assess the poundage for business rates. The SRC said this would cut the rates bill for Scotland’s retailers by £5m next year. The Small Business Bonus Scheme was also protected in the Budget, which the Scottish government says lifts 100,000 properties out of rates altogether and provides “better support for Small and Medium Enterprises than elsewhere in the UK”.

Blogs of love for Heritage Nisa’s Heritage own-label pizzas and wine have received a favourable response from bloggers following an online call for taste testers.

LOCAL SERVICES Major funding will support isolated communities

£160m to put Post Ofﬁces at heart of communities

The bloggers all gave their free feast a thumbs-up, and encouraged others to go out and try the products for themselves. Heritage Brand Manager, Tracey Redfearn, said: “To get independent conﬁrmation that consumers enjoy the pizzas and wine as much as we do is fantastic, and I hope lots of people will read the reviews and be persuaded to try our impressive range for themselves.”

Scotland Food & Drink appoints UK market development director Scotland Food & Drink has appointed Lucy Husband to the new role of UK Market Development Director. The post was created following the launch of Ambition 2030, a new strategy which aims to double the size of the industry to £30bn by 2030. Husband will spearhead a drive from SF&D to develop new growth opportunities for Scottish suppliers throughout England and Wales, as well as build their

The Government has announced £160m of funding to support Post Office branches serving smaller, often rural, remote or urban deprived communities. The cash is part of a £370m Government investment to enable the Post Office to continue to grow and modernise its network and services. The news comes as recentlypublished accounts revealed a profit of £13m for the business – the Post Office’s first in 16 years. Business Secretary Greg Clark said: “The Post Office is at the heart of communities across the UK, with millions of customers and small

businesses relying on their local branch every day to access a wide range of important services. “With the network at its most stable in decades, this £370m of government funding will ensure it can continue to modernise and bring more benefits to customers across the UK.” The value of Post Offices to customers was highlighted in the 2017 Community Barometer from the Association of Convenience Stores, which surveyed UK consumers and local councillors. This revealed that Post Offices were voted to have “the most positive impact locally on a community”.

HEALTHY EATING

SGF conference puts reformulation on Government’s radar SGF has welcomed a new and encouraging approach by the Scottish government to engaging with key businesses. A Scottish government team recently met with Paterson Arran – one of Scotland’s major independent food businesses – to discuss its approach to product reformulation as part of the current consultation on diet and obesity. The initial discussion began with Scottish government ofﬁcials approaching Paterson Arran at the company’s breakout session at the SGF conference. The session showcased the company’s successes in reformulating key product lines. Allan Miller of Paterson Arran said: “It’s vital that policymakers have the chance to understand the work that has been done already, and to see how their plans might affect future developments. We were delighted to be able to offer our perspective.”

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

SLR | JANUARY 2018

www.slrmag.co.uk

W NE

Stock control from anywhere

See what youâ&#x20AC;&#x2122;re selling in real-time

Change prices and promotions instantly

Your store in your pocket Manage your store with the PayPoint One app Get PayPoint One EPoS Pro at paypoint.one or talk to your Territory Development Manager

News Extra

Fundraising | SRC Report

NewsExtra FOCUS ON FASCIAS – P44 CHARITY SRC reveals extent of stores’ fundraising efforts

Convenience Matters with the SGF The SGF/ACS Scottish Local Shop Report provides a very useful breakdown of the customer demographics in convenience stores in Scotland. It shows that most customers, 33%, are drawn from Generation X – the cohort of people born roughly between the mid-1960s and the early 1980s. This is not a bad place to be: this demographic group has quite a lot of economic power, are in their best earning years and are moving towards the top of their chosen careers. Overall Generation X tends to spend more on the things they want than the other social demographics. The challenge for convenience stores for the rest of this decade could be to work out how to attract the next demographic group. These are the Millennials, those aged 25 to 34. Broadly speaking Millennials are putting off the some of the bigger decisions in life such as buying a house or starting a family – they tend not to be as interested in ‘ownership’ as previous generations. They want brands than provide maximum convenience at the lowest cost. They are very healthconscious. Exercise is important, as is healthy eating, and healthy eating is one place where they are prepared to spend on purchasing the right kind of brand. Millennials are ‘digital natives’ and their afﬁnity for technology is shaping the way they shop: they are used to having instant access to product information, price comparisons and peer reviews. How can convenience stores adapt to ensure they capture this next generation of shoppers? Their on-the-go tech-savvy lifestyle and strong focus on health and wellbeing could provide a few clues.

SLR | JANUARY 2018

Retailers raise almost £16m for Scottish charities in 2017 A new report from the Scottish Retail Consortium has revealed that the Scottish retailing industry raised some £15.9m for Scottish charities during the course of last year.

New research by the Scottish Retail Consortium into the impact of retail on good causes in Scotland has found an impressive £15.9m was fundraised or donated by retailers in 2017. The report, Supporting Scottish Communities, explains how 18 leading retail brands operating in Scotland raise money for charity through fundraising, carrier bag and direct donations. These retailers included CJ Lang, The Co-op and Scotmid. The report also found retail workers donated over 12,000 hours of volunteering, with retailers donating 600,000 meals and 300,000 clothing items to good causes. Fundraising and donations for a specific charity partner was the largest category of donation, with Scottish good causes receiving £6.9m in 2017. Carrier bag donations were worth £5.3m, whilst other direct corporate donations were worth £1.9m. Finally, over half a million pounds was raised by retailers in Scotland for specific events including Poppy Scotland, Comic Relief, and Children in Need. Andrew Murphy, SRC Chairman said: “This report highlights the sheer scale of support provided by Scottish retailers to charities and good causes. Whether it’s through national support for large charities, or providing space in store for local groups, retailers across

Scotland have put aside time and resources to support the amazing work done by these brilliant causes. It is clear retailers recognise the crucial place they hold at the heart of the community and our society and are making a positive difference. “Of course, none of this would happen without fantastic and generous customers who keep on digging deep to support these causes - and of course the superb work done by so many charities which inspires this support and helps make such a difference both here in Scotland, and indeed across the world.” Economy Secretary Keith Brown MSP said: “The people of Scotland are recognised for their generosity and charitable nature, and it would appear retail in Scotland also has a big heart. “Our third sector is a vital component to our success as a nation – how we look after those who need it most. Humanity is good for our well-being, but also benefits the economy. Any way in which we can help more people and communities be more engaged and more involved ultimately helps us all to contribute more. “We encourage responsible businesses should to invest in their communities, and these retailers should hold their heads high, knowing the contribution they make.” www.slrmag.co.uk

Comment

THE GREAT TOBACCO RSP DEBATE It’s one of those discussions that usually only happens in private, but the gnarly question of whether to price tobacco at RSP is nonetheless a debating point that all retailers have a view upon, whether they’re prepared to admit in in public or not. The debate has been brought into sharp focus by a new piece of data analysis carried out by The Retail Data Partnership (TRDP), the company behind the ShopMate Epos system. The analysis was based on tobacco sales data that TRDP pulled from over 2,500 convenience stores that the company supplies. The findings are quite astounding. Tobacco sales in these stores are down on average 23% by volume in November last year, compared to the year before (pre-EUTPD2). That in itself is a shocking collapse, but perhaps more surprising is the fact that, despite this huge slump in volume, sales by value have remained to all intents and purposes flat, down by just 0.07%. The inescapable conclusion is that retailers have been increasing their margins to offset falls in volume sales. Or, to put it more prosaically, as TRDP Managing Director Stephen Burnett does: “Feedback we receive from retailers suggests strongly that the advice of the major manufacturers [to sell tobacco at RSP] may be falling on deaf ears”. It’s a tricky puzzle to solve. The major tobacco manufacturers uniformly advise retailers to sell at RSP to maintain customer loyalty and there’s unquestionably good logic to that point of view. But the TRDP findings seem to clearly indicate that retailers haven’t taken that advice on board, possibly because they don’t feel as if they have a choice, thanks to the rapidly increasing cost of doing business. You’ve got to make your money somewhere. The big problem with continually escalating tobacco prices to the customer, of course, is that it’s clearly not a sustainable solution. As Burnett points out in his overview of the analysis: “There’s only so far you can go with price increases before demand dries up.” In a category that routinely accounts for at least 20% of a store’s turnover, and in some cases a far higher percentage than that, this is set to become a real problem in the near future – and one that doesn’t have an easy answer. As retailers, we’ve all heard more and more customers tell us that they’re going to give up the fags every time they part with the best part of a tenner for their pack. One day that threat will become enforced reality when they really can’t afford to maintain the habit. It’s perhaps time this debate was dragged out into the open so that we can all work together to find the best possible way forward.

EDITORIAL Publishing Director & Editor Antony Begley 0141 222 5380 | abegley@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com Editorial Contributor Karen Peattie

ADVERTISING Advertising Manager Susan Dignon 0141 222 5384 | sdignon@55north.com

DESIGN Design & Digital Manager Richard Chaudhry 0141 222 5388 | rchaudhry@55north.com

EVENTS Events & Operations Manager Cara Begley 0141 222 5381 | cbegley@55north.com

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

ANTONY BEGLEY, PUBLISHING DIRECTOR

SLR | JANUARY 2018

www.slrmag.co.uk

ISNâ&#x20AC;&#x2122;T IT TIME

YOU MADE A

delicious difference to your sales?

Stock the leading brand in a category growing at +12% YoY* * Source; *52we : IRI 14/10/2017 & Kantar Worldpanel 08/10/2017. Quorn Mince, Pieces and Nuggets are a healthy protein source. Protein contributes to the growth and maintenance of muscle mass.

Cover Story

SLR | JANUARY 2018

Scottish Budget

www.slrmag.co.uk

Scottish Budget

Cover Story

SCOTTISH BUDGET ADDS TO UNCERTAINTY IN RETAIL SECTOR

The draft Scottish Budget announced in December was a mixed bag for retailers but contains several very worrying developments, including a hike in income tax, that may hinder growth in the convenience sector.

www.slrmag.co.uk

JANUARY 2018 | SLR

Cover Story

Scottish Budget

“Accountancy industry body ICAS has concluded that 70% of Scottish tax payers will actually pay less than they do at present.”

SCOTTISH BUDGET: THE KEY POINTS Q Income tax to be restructured into new five band system Q Small business scheme to continue, lifting 100,000 business properties out of rates altogether Q Business tax rate to be will be capped at a level driven by the consumer-price rate of inflation (CPI), not the retail price index rate (RPI).

SLR | JANUARY 2018

he announcement of the Scottish Government’s Draft Spending and Tax Plans for 2018-19 always had the potential to throw up a few surprises, given the nature of current uneasy relationship between the UK and Scottish Governments and the desire of the Scottish Government to demonstrate that it is prepared to make tough and often unpopular decisions. The headline-grabbing development was the unveiling of a new five-band income tax system, the first time that the Scottish Government has used its powers to control income tax in the country and a move that contradicts a manifesto promise from the SNP. At first glance, the new rates seem to indicate that those on lower salaries will get a tax cut while those earning higher salaries will pay more. But accountancy industry body ICAS has done some number crunching and concluded that 70% of Scottish tax payers will actually pay less than they do at present, although that does mean that 30% will pay more. Additionally, 55% will pay less than they would if they lived elsewhere in the UK (meaning 45% will pay more under the same circumstances). Confused? Well, given the fact that the higher-rate threshold is rising by the rate of inflation, people earning £50,000 and above in Scotland will actually be £85 better off per year as less of their income is being taxed at the higher rate. Another important part of the Draft Budget saw Finance Secretary Derek Mackay confirm that the small business bonus scheme will be continued, lifting 100,000 business

properties out of rates altogether. Mackay says the package for the coming year is worth £720m. In addition, he also confirmed that the business tax rate will be will be capped at a level driven by the consumer-price rate of inflation (CPI), not the retail price index rate (RPI). The CPI rate is traditionally lower, so businesses are likely to see their rates increases capped at a lower level. So what precisely will this mean for spending in general, and spending in convenience stores in particular? In a preliminary response to the Draft Scottish Budget, David Lonsdale, Director of the Scottish Retail Consortium, said: “Prospects for Scotland’s retailers are ultimately determined by the state of the economy and their own ability to adapt and seize on the opportunities that arise. The subdued predictions from the Scottish Fiscal Commission for economic growth over the next few years are therefore sobering, more so as Scotland’s economy has recently underperformed the UK as a whole. “Lifting private sector investment will be even more critical, and in that context retailers will welcome the Finance Secretary’s decision to limit future rises in the business rates poundage to CPI, rather than RPI. This is positive news that will shave £5m off the rates bills of hard-pressed retailers next year, and more than that in future years. It shows that the Finance Secretary is listening to the retail industry and the growing chorus from across business and commercial life in Scotland who have spoken up in favour of action to mitigate rising rates bills.” www.slrmag.co.uk

Scottish Budget

This was a move also welcomed by the Scottish Grocers’ Federation (SGF). Chief Executive Pete Cheema commented: “SGF welcomes the move to using the CPI measure of inflation to assess the poundage for business rates and will work with the Scottish government to take forward the review of the small business bonus.” Lonsdale also welcomed the decision to reduce tax on lower paid workers. He said: “As the Scottish Government has itself admitted, family finances are under strain and disposable incomes do not stretch as far as they used to as price inflation continues to outstrip the growth in wages. Indeed, with household finances set to be tested further in the months ahead with rises in statutory pension contributions and council tax in the pipeline, the decision on income tax to protect workers on low and modest earnings is exactly right. The implications for consumer spending – a mainstay of our economy – from the £164 million uplift in the income tax take remains to be seen, but less money overall in consumers’ pockets is likely to cause shoppers to carefully consider what purchases they can afford. It may also have implications for VAT revenues which are being assigned soon to Holyrood.” The SGF however was less pleased with the decision to change the income tax structure. Chief Executive Pete Cheema said: “It is absolutely clear how important consumer spending is to the wider economy. At a time of zero wage growth and rising inflation it makes no sense to increase taxation. This could seriously impact on sales in the convenience sector.” www.slrmag.co.uk

Cover Story

SCOTLAND’S NEW FIVE BAND INCOME TAX SYSTEM Q New Income Tax rates Q 21p - New intermediate tax rate from £24,001 to £44,273 Q 19p - Starter rate from £11,850 to £13,850 Q 20p - Basic rate from £13,851 to £24,000 Q 41p - Higher rate from £44,274 to £150,000 Q 46p - Additional rate from £150,000

JANUARY 2018 | SLR

JET

THE fuel brand of independent Scottish dealers

From Dumfries in the south to Thurso in the north, and from Kyle of Lochalsh in the west to Duns in the east, JET’s network of independent Scottish forecourts is going from strength to strength. In Scotland alone, we supply over 1 billion litres of fuel every year to independent dealers, other oil companies, hypermarkets, major resellers, and commercial and marine customers.

“

JET stands out as the retailer undercutting the non-supermarket sector by 1ppl on petrol and 2ppl on diesel. Source – Forecourt Trader, August 2017

* Source: Phillips 66 analysis based on Catalist’s latest price data.

”

More and more Scottish dealers are making JET their fuel supplier of choice and here’s why... • Security of supply: JET is Scotland’s only branded dealer supplier with its own UK refinery – our 11 billion litre Humber Refinery supplies 15% of the UK’s refined needs • Competitive supply price: Our competitive supply price meant that JET was the lowest priced nonhypermarket fuel brand in Scotland in 2016* • Compelling fuel card offering: Our two fuel card options help maximise dealer margins. Our JetCard provides lock-in for local businesses and Fleetone provides national coverage for use at 3,000+ UK locations

• An award-winning standards and service programme: Our ‘Proud to be Jet’ standards and service programme rewards dealers who deliver high standards and offer excellent customer facilities • Big brand alliances: Our brand partnership with SPAR UK enables JET dealers to transform their sites into convenience destinations that maximise on both fuel and food sales • Retail support: Our compelling range of retail support services and partner offers help dealers to drive forecourt footfall and customer loyalty • Consumer promotions: At no cost to our dealers, our innovative national and local promotions have been proven to drive up forecourt footfall and fuel volumes

JET is 100% committed to the future of fuel retailing in Scotland and the continued expansion of our dealer network. We’d love to talk to you about how we could help your business thrive now and into the future.

W jetlocal.co.uk E connect2jet@p66.com JourneywithJET @JETPetrol

News

Products

pladis continues to drive go ahead! forward Snacking brand go ahead! has

ProductNews

extended its range of goodness bars, now worth over £1m, with the introduction of a coconut ﬂavour. Rolling out this month, the new variant joins Cocoa & Orange and Cocoa & Hazelnut, each made from 100% natural ingredients with no added sugar. A 4 x 30g pack has an RSP of £2.29.

TOBACCO: THE BURNING ISSUES – P60 BOTTLED WATER AG Barr brand will wet athletes’ whistles

Strathmore to hydrate Glasgow 2019 athletes

The new ﬂavour follows a busy six months for go ahead! which has included launching three new ranges, a full pack redesign and improved recipes on the core range, all supported with a heavyweight campaign including TV, out of home, and shopper activations.

Logic launches lower strength e-liquids JTI’s vaping brand Logic has extended its product range with the launch of new lower strength e-liquids. The 6mg Logic LQD e-liquids, which offer precise delivery and a three-step child resistant mechanism, are available now with an RSP of £5, and can be used with any reﬁllable device. The UK-made product taps into a growing consumer demand for lower strength e-liquids. Available in a range of popular ﬂavours – Tobacco, Menthol, Cherry, Berry Mint and Strawberry - the expanded LQD range now includes 18mg, 12mg and 6mg strengths.

Lactalis Mclelland gives excess stock to charity

Strathmore Water has been named as the national supplier of bottled water for the European Athletics Indoor Championships Glasgow 2019. Athletes, officials and volunteers at the event will be hydrated by more than 60,000 bottles being supplied by the water brand. The European Athletics Indoor Championships will take place from March 1 to 3, 2019 in the Emirates Arena in Glasgow. The expected number of athletes is

700, with up to 400 coaches & team staff, from over 45 countries. The anticipated number of spectators is 18,000 over the three days and more than 700 accredited media are expected to attend. Strathmore Water will be available at the Emirates Arena for athletes, officials and volunteers, as well as to purchase for spectators. All the water bottles are recyclable and recycling facilities will be provided.

Cheese manufacturer Lactalis

MILK DRINKS

McLelland has embarked on a

Yazoo Vanilla gets a shake-over

food waste reduction partnership with food redistribution charity FareShare UK, which sees excess stock distributed to vulnerable people across the UK. All Lactalis McLelland’s in-date surplus cheese, including both branded and own label products, is now being sent to FareShare UK’s network of Regional Centres for redistribution to

Adrian Troy, Marketing Director at AG Barr, said: “Glasgow has built a fantastic reputation for hosting world class sporting events and we’re excited to play our part becoming the national water supplier of the European Athletics Indoors Championships. “This partnership reinforces our passion and commitment to hydrate athletes, volunteers and thousands of passionate spectators at what will be a unique event experience.”

Milk drink Yazoo has given its vanilla recipe a shake-up, and says the new formulation received “excellent” feedback in taste tests. Available now, the new vanilla ﬂavour – like the rest of the Yazoo range – contains only natural ﬂavours. In addition, all Yazoo milk drinks now feature Energy Intake Icons on the front of the pack as well as an updated nutrition table, highlighting reference intake per portion. Richard Duplock, Marketing Manager at brand owner FrieslandCampina, said: “With more and more households interested in the nutritional breakdown of their food and drink, we wanted to update our packaging to show people exactly what’s in a bottle of Yazoo. Milk drinks are an excellent source of calcium and Vitamin B2.

hundreds of frontline charities and community projects. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | JANUARY 2018

www.slrmag.co.uk

Products

News

CONFECTIONERY Win a day with a former footballer, courtesy of Cadbury

Buy chocolate, win legend Cadbury’s second phase of its partnership with the Premier League kicks-off this month with its new ‘Win A Legend’ promotion. Running from January 1 until March 31, 2018, the new promotion gives consumers the chance to win an experience day with a Premier League former player (Thierry Henry, Ian Wright, Jamie Redknapp or Michael Owen). Thousands of instant win prizes are also up for grabs, including pairs of match tickets and Cadbury Premier League merchandise. To enter, consumers need to purchase a Dairy Milk core single or tablet (Dairy Milk, Dairy Milk Caramel, Fruit and Nut or Whole Nut), then visit CadburyLegends.com and scan the logo with their phone.

Supported by a £4m full-brand campaign, including out-of-home and digital activity coupled with POS and pre-fills, the promotion aims to help drive penetration and frequency both in the singles and tablet categories. Commenting on the new promotion, Katrina Davison, Brand Manager for Cadbury Dairy Milk, said: “We’ve focused on our core range, which are legends themselves within the confectionery category, and coupled it with strong support so we expect demand to be high.” Davison advised retailers to stock up in advance and “maximise visibility in store with the impactful POS theatre to make the most of the opportunity”.

BREAKFAST CEREALS Weetabix incentivises healthy eating

£5 off fruit with Weetabix Weetabix has announced a twist on its Weetabuddies campaign, with a new ‘£5 Off Fruit’ promotion that will be available across its 48 and 72 yellow boxes. The on-pack promotion will run from January until March 28, 2018 and the campaign will also be supported with the ‘Have You Had Yours?’ advert airing on mainstream TV throughout January. Weetabix hopes the promotion will encourage consumers to eat a nutritious breakfast, helping customers towards eating five fruit and vegetables a day, as well as providing a healthy kick-start to the new year. Customers who buy a 48 or 72 yellow box during the campaign period will be able to submit their unique 8-digit code printed on the inside of the pack on the www.weetabix.co.uk/fruit microsite. They will then receive 10 coupons offering £5 off fruit to redeem at participating retailers, allowing customers to buy a different pack of fruit each week. Charlotte Hunt, Senior Brand Manager for Weetabix, said: “Health benefits is one of the fastestgrowing attributes that customers look for when choosing breakfast cereals. Our new ‘£5 off fruit’ campaign will help to further cement Weetabix as the natural choice for those looking for a healthier way to start the day. “Amongst a backdrop of declining sales within the

www.slrmag.co.uk

cereal sector, we’ve grown +3% this year, and are by a long way the nation’s favourite breakfast cereal. Last year’s Weetabuddies campaign delivered a 14% yearon-year increase in Weetabix sales (volume), and our latest promotion will continue to inspire a new generation of cereal eaters and encourage a healthy breakfast culture for the whole family. Customers who do not redeem the coupons by March 28 will still be able to enter a prize draw to win £500 towards a healthy year. The draw will be open to enter from March 29, and closes on June 30, 2018. Weetabix Original 48s have an RSP of £4.49 while Weetabix Original 72s have an RSP of £5.99.

CHEESE

Rugged new look for Davidstow Dairy Crest’s Cornish cheddar brand, Davidstow, has received an identity and packaging refresh. Seeking to enhance the brand’s provenance and quality at point of purchase, new-look packs bear a rejuvenated brand logo featuring a sailing boat set against a rugged Cornish coastline, and incorporate the brand’s established date of 1951. Natural craft paper labels aim for a more artisan feel and the variant maturation period has been enlarged to convey an ‘aged for quality’ message at shelf and to aid range navigation. Lee Willett, Marketing Director, said: “Our new packaging aims to flaunt our pedigree and drive awareness of our superior, complex taste. “We’re confident that the new packs will create cut-through at the branded Cheddar fixture and encourage more shoppers to choose Davidstow.”

JANUARY 2018 | SLR

News

Off-Trade

Brandy tops Christmas searches Brandy was the UK’s favourite

Off-TradeNews

Christmas spirit, according to research into festive online searches from the University of Warwick. Bofﬁns discovered that during the week of Christmas, UK online searches for brandy were far higher than for any other alcoholic drink during the last ﬁve years.

MAKE EASTER A CRACKING SUCCESS – P66 MANUFACTURERS Diageo raises a glass to historic milestone

Diageo celebrates its 20-year anniversary

This is probably due to it being a staple of festive treats, as rich fruit cake, Christmas puddings and mice pies often contain brandy – and are served with brandy butter.

Inver House invests in renewable energy Work has started on a £3m biogas project that will make the Balmenach Distillery one of the greenest in Scotland. Inver House Distillers has commissioned a new anaerobic digestion system, which breaks down the co-products of whisky production using microorganisms to produce clean, methane-rich biogas to power the site. The new technology will integrate with Balmenach’s existing wood-pellet biomass boiler, and once complete, the combined system will generate enough renewable steam and electricity to meet 100 per cent of the distillery’s energy requirements with a surplus of

Diageo, owner of some of the world’s best-known drinks brands including Johnnie Walker, Smirnoff, Tanqueray and Guinness, has celebrated its 20th anniversary. The company was created on December 17, 1997, through the merger of Grand Metropolitan and Guinness. Diageo has since a global leader in beverage alcohol, with its products sold in 180 countries. Over the past 20 years Diageo’s share price has increased by

340%, market capital has grown 440% and earnings per share (pre-exceptional items) are 220% higher. The milestone was celebrated around the world by the company’s 30,400 employees. From a time capsule ceremony at Cardhu distillery in Scotland, the home of Johnnie Walker, to employees in Lagos, Nigeria and Sydney, Australia toasting the occasion with a dram of Johnnie Walker Black Label. In London, to mark the

occasion, Diageo’s Chief Executive Ivan Menezes, along with the company’s team of Scotch Whisky Blenders and fellow members of the senior leadership team opened the market at the London Stock Exchange (pictured). Ivan Menezes, Diageo Chief Executive said: “I am incredibly proud of what we have achieved over the past 20 years, which is testament to the commitment of our talented employees past and present.”

electrical energy supplied to the grid. It is expected to be operational in summer 2018.

Rare wartime whisky wins gold packaging award Malt whisky specialist Gordon & MacPhail is celebrating winning Gold in the Scotch whisky category of The Spirits Design Masters 2017. The design was conceived for the company’s rare wartime single cask bottling which was released as part of the company’s ‘Private Collection’ range. Launched in October 2017, it is one of the oldest

AWARDS Kirkwall-based distiller makes shortlist

Orkney Distilling in awards running Orkney Distilling, creator of Kirkjuvagr Gin, has been shortlisted twice in the Scottish Rural Awards 2018. The Kirkwall-based company – set to open a distillery and new visitor attraction in the town next year – is in the running in both the Artisan Drink and Business Start-Up categories. Held by Scottish Field, the Scottish Countryside Alliance and the Royal Highland and Agricultural Society of Scotland, the Scottish Rural Awards are now in their fourth year.

Judged by an esteemed panel of industry leaders and experts, the awards have 13 different categories, with a rigorous multi-stage process to decide shortlists and eventual winners. The awards ceremony will take place on March 22 in Edinburgh. Stephen Kemp, Managing Director of Orkney Distilling, said: “We’re really delighted to learn we’ve been shortlisted in two categories for these major awards celebrating excellence in the rural community.”

single malt whiskies in the world. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | JANUARY 2018

www.slrmag.co.uk

Off-Trade

News

VODKA Groundbreaking giveaway from Loch Lomond Group

Shazam! Glen’s launches major on-pack promo Glen’s Vodka is giving away hundreds of prizes from this month in a major new partnership with music identification app Shazam. The Glen’s Shazam-enabled label is understood to be the first of its kind in the UK, and gives consumers the chance to win prizes including a VIP allexpenses paid holiday to Ibiza, tickets to some of summer 2018’s biggest music festivals and branded Glen’s Vodka merchandise. To be in with a chance of winning, customers download the Shazam app to their mobiles or tablets and scan the label’s Shazam code. They will then be

taken to a designated web page where they can enter the prize draw. It is expected that more than 300 prizes will be won in the first four months. While Shazam’s technology has been used in TV adverts in the past – most recently with Asda during Halloween – this is the first on-pack campaign to be delivered in the UK and represents a significant investment in the Glen’s Vodka brand. Muriel Raguenaud, Marketing Director for Glen’s Vodka, said: “This campaign marks the beginning of what is going to be an exciting year for Glen’s Vodka, and allows us to communicate

with our consumers in an innovative and creative way. “Glen’s is very much about good times, so it has always had a strong affiliation with music. The prize giveaways have also been handpicked specifically to appeal to our core target demographic which is those aged 25 to 34 years old. “In addition to providing an effective platform for engaging with consumers, the campaign will also help the product to stand out on the shelves as bottles will have distinctive neck-tags. The fact that every single 70cl bottle of Glen’s Vodka carries the promotion was particularly well received by our retail partners.”

BEER Morgenrot bolsters portfolio with Spanish addition WHISKY

Highland Park reveals dark side Highland Park has unveiled its latest special edition, a 17-year-old single malt Scotch whisky named The Dark (52.9% ABV, 75cl). The Dark is available now with an RSP of £190. It has been exclusively matured in European oak sherry seasoned casks, delivering a “distinctly deep ﬂavour packed with dried fruits, nuts and spices overlaid with hints of smoky peat”.

www.slrmag.co.uk

Bock to the future for Morgenrot Drinks importer Morgenrot has enhanced its world beer portfolio and strengthened its Spanish offering after becoming the exclusive importer of Alhambra Reserva Roja. Presented in a sleek embossed bottle in the same vein as the famous Alhambra Reserva lager, the new Alhambra Reserva Roja (7.2% ABV) is available now in cases of 24 x 33cl bottles. Morgenrot describes Reserva Roja as: “reddish in colour, a strong Bock-

style lager full of delicate notes with a silky, smooth mouth-feel providing extra intensity and moreish malt characteristics. A Spanish reinterpretation of a traditional German Bock style, the beer has the perfect balance of roasted malt and ripe fruit flavours.” Commercial Director John Critchley, said: “Alhambra Reserva has to be Spain’s most loved super premium beer so we expect big things from its brother.”

Caledonian’s Steven joins Sinclair Craig Steven, former Beers Manager for Edinburgh’s Caledonian Brewery, has joined Sinclair Breweries as Commercial Manager. The move comes as Sinclair Breweries – operator of the Orkney Brewery and custodian of the Atlas beers range – looks to grow its share of the national and international craft beer market. Steven has an extensive track record in the brewing industry, and also oversaw innovation, operations, customer service and internal sales for Caledonian. He is also Scotland’s ﬁrst certiﬁed beer sommelier, and the sixth to qualify from London’s Beer Academy in 2011.

JANUARY 2018 | SLR

News

Newstrade

Steering Group prepares for latest project The Scottish Newstrade Steering

News& Magazines

Group (SNSG) is set to kick off 2018 with its latest exciting project, the rollout of a set of bespoke FSDUs which have been specially built for the purpose. The new units were nearing completion as SLR went to press and will accommodate space for copies of The Scottish Sun, copies of the local newspaper for each store plus two shelves for promotional stock.

#THINKSMART2 CONFERENCE UPDATE – P36 CHARITY Sun publishes two front pages for Mary’s Meals

SCOTTISH SUN DONATES 7P PER COPY TO FEED KIDS Last year’s event saw Andy Murray’s mum Judy and First Minister Nicola Sturgeon visit Scottish Sun editor Alan Muir in the pop up shop. [Credit: The Scottish Sun]

The units will be personally branded for each individual store, featuring their store logo as well as a special leaﬂet holder compartment where the participating retailers can carry tailored marketing and promotional leaﬂets. Over 100 of the units will be despatched early in 2018 and will help drive up newspaper sales as well as sales of promotional lines as part of the SNSG’s commitment to drive excitement and innovation into the category. The SNSG is a joint project between SLR and News Scotland. If you would like to join the Group, please email Antony at abegley@55north.com

The bespoke units near completion.

NFRN to refocus attention on retail crime in 2018 The NFRN will be making a renewed push this year to bring retail crime further up the agenda at both Westminster and Holyrood. The move comes in the wake of a 5% increase in shoplifting south of the border. Comments from Nottinghamshire’s Police and Crime Commissioner that his force would stop sending ofﬁcers to reports of thefts from shops to focus on more serious crimes also sparked fury with the

The Scottish Sun has donated 7p from every copy of the newspaper sold on December 8 to Mary’s Meals, a Scottish charity which is part of a global movement to provide meals to some of the world’s poorest children in a place of learning every school day. It costs Mary’s Meals just 7p to give a child a meal – so every copy of the paper sold helped to feed a child, with over 180,000 meals donated as a result of the activity. In a first for The Scottish Sun, the newspaper featured two different versions of the front page next to each other on the newsstands as part of the activity. They had the same message of hope with one cover featuring a little girl with her meal and the other a little boy. The following day, The Scottish Sun opened the doors to its

Christmas pop-up charity shop in Glasgow’s St Enoch Centre. Last year, Susan Boyle launched The Scottish Sun’s first charity shop – a galaxy of stars helped out, and £10,000 was raised for charity in just three days. This year, the shop was launched by X Factor stars The Cutkelvins and was open for a week. Proceeds will be shared between Mary’s Meals and the Rainbow Valley charity. Rainbow Valley was set up by Angela MacVicar after her daughter Johanna died of leukaemia aged 27. They aim to open a centre dedicated to helping people living with cancer. Welcoming the opening of the pop-up shop on Saturday, Lindsay MacCallum, Project Development Manager for Rainbow Valley, said: “We are thrilled that The Scottish Sun pop-up shop is happening

again this year. Last year was fabulous.” Previewing the special edition of the paper, Scottish Sun editor Alan Muir said: “Mary’s Meals spoke to us about their work and showed us a film of the children they are helping. It just breaks your heart. Then, when you are told that 7p – just 7p, a figure you probably wouldn’t bother to bend down and pick up if you dropped it in the street – can feed a starving kid for a day, you know that you have to do something. That’s why we are donating 7p from every paper sold to the charity. “It’s an absolute honour for us to be able to make this gesture to Mary’s Meals. It means that our loyal readers will be feeding a child simply by buying their favourite paper.”

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

SLR | JANUARY 2018

www.slrmag.co.uk

In association with

Inside Business

Research Digest

NO BLACK FRIDAY BOOST FOR SCOTTISH RETAILERS The much-publicised consumption fest that is Black Friday failed to deliver for retailers in Scotland with November sales down by 1.3% on a like for like basis compared with the same period in 2016. That’s the key finding from the latest SRC-KPMG Scottish Retail Sales Monitor. Better news however was that total food sales in November increased 4.2% versus November 2016, when they had increased by 0.0%. This makes the 12-month average growth 3.4%, the highest since September 2011. Ewan MacDonald-Russell, Head of Policy and External Affairs at the Scottish Retail Consortium said: “Black Friday wasn’t enough to boost November’s Scottish retail sales, with figures flagging by 0.5% in real terms. Despite that week’s sales being 40% higher than the November average it wasn’t enough to help beleaguered stores match last year’s performance. “As expected, Black Friday sales were concentrated online, with footfall figures not especially higher for the week. However, with Black Friday falling earlier before Christmas this year, and for many customers before payday, we haven’t seen the growth of recent years. That’s a disappointment for retailers hoping the relatively weak sales in the autumn were due to consumers waiting for the best bargains. Food sales continue to outperform 2016, albeit the uplift continues to be primarily driven by food price inflation, which our shop price index recorded at 1.5%. These are the final sales figures before Christmas, and they will leave Scottish retailers feeling very nervous about what is now a make-or-break December.” Craig Cavin, Head of Retail in Scotland at KPMG added: “A 4.2 per cent growth in food sales – albeit mostly inflation driven – will also give retailers something to cheer about as they head into the final few weeks before Christmas.”

42% OF SHOPPERS STILL PAYING CARD SURCHARGES AS DEADLINE APPROACHES As the January 13 deadline approaches when businesses can no longer charge extra for payment by card, more than 40% of shoppers still face surcharges.

SNACKING TRENDS UNVEILED BY PLADIS Now in its second year, global snacking company, pladis, has revealed its insights into ‘the new breed of snackers’ in the UK. The key insights include: Q Increasing demand for products that are easy to buy, store, transport and that can be consumed ‘on the go’ or which are easily sharable. Q Consumers are becoming more ‘mindful’ about what they eat. They often want portion control but they won’t compromise on things like taste, quality or familiarity. Q In some cases, consumers are looking for a more ‘sensory’ experience – as seen by the explosion in salted caramel flavoured snacks in 2017 or products with added protein. Q Often consumers choose a well-known brand, but a new format i.e. a variation of an old-favourite. Q Baby boomers are crucial to the success of any particular snacking category and so pladis pays close attention to how it markets effectively to this demographic. Q Younger consumers are snacking more than any previous generation, triggered largely by the erosion of traditional food rituals such as set meal times; this has led to the emergence of the ‘fourth meal’. “The boundary between meals and snacks is blurring. Most people understand a meal to be influenced by cultural traditions around timing, setting and specific food groups. Snacks, on the other hand, are highly personalised and variable mini meals,” explained Colette Noé, Senior Director for Consumer and Market Insights at pladis. 26

SLR | JANUARY 2018

ith only days until the UK ban on levying surcharges on shoppers who pay by credit card, some 42% of shoppers still face the prospect of being charged for using plastic in-store, according to a new survey of over 1,000 consumers by card machine provider Paymentsense. Additionally, new data suggests that surcharging has already cost small businesses some £10bn in shopper walkouts since the ban was announced. The ban comes into force on January 13, 2018 and prevents retailers for applying a fee for using cards or contactless payment. Although the ban was widely announced over the summer, the study reveals that over four in 10 shoppers have noticed no change and are still faced with surcharges at small businesses, including independent retailers, that they regularly visit. The study also found that well over a third (37%) of shoppers have been walking out when faced with a card surcharge since the ban was announced. Across the country, only 8% of consumers surveyed said they still pay surcharges. According to the study, average card spend in small businesses is £135 a month. This means since the ban was announced, surcharging SMEs have missed out on a share of around £10bn in consumer spend. A quarter of shoppers said they would also not come back to a store making surcharges. www.slrmag.co.uk

Research Digest

Inside Business

POST-EUTPD2 TOBACCO CATEGORY VOLUMES DOWN BUT VALUE STATIC New analysis done by Epos supplier The Retail Data Partnership paints a complex picture for the future of tobacco sales in convenience as Managing Director Stephen Burnett explains.

he introduction of the EU Tobacco Products Directive in May 2017 brought significant changes to the way in which retailers display and sell tobacco. The aim of this change was to reduce the number of smokers and encourage a smoke-free population. We conducted research into the Tobacco sales of over 2,500 c-stores to assess changing consumption trends and the impact of the new laws on turnover. So, is tobacco consumption falling? Yes, in a word. Using volume sales as an indicator of consumption, we found that in November of this year, each store sold on average 23% less tobacco than in May 2017. And are retailers feeling the squeeze? Considering volume sales reductions of 23%, it would fair to assume that retailers are making less money than ever from their tobacco gantry – but our analysis suggests this is not the case, with value sales falling by just 0.07% across the same period. The question, then, is: “How exactly are retailers

weathering the storm?” Without price mark restrictions, the answer is clearly that retailers are increasing margins to offset the falls in volume sales. The losers in this situation are wholesalers and manufacturers, many of whom are urging retailers to honour RRPs. Feedback we receive from retailers suggests strongly that this advice is falling on deaf ears as retailers seek to protect their profits. But is this sustainable? The short answer, in our opinion, is no. While convenience is an important factor in tobacco sales, ever-increasing costs coupled with tighter wallets caused by inflation and Brexit means that there’s only so far you can go with price increases before demand dries up. We believe retailers should be focusing on tobacco substitutes, such as e-cigarettes and other high margin categories such as snacks, confectionery and soft drinks. In time they could minimise the pressure of maintaining tobacco volume sales and supply their business with long term trusted profit.

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

THIS DECLINE HAS BEEN CAUSED BY VARIOUS FACTORS: Q Social attitudes to smoking Q Declines in underage smoking Q Greater support to quit Q Lack of 10 packs Q Lack of smaller RYO pouches Q No gantry/branding, less accessible to non-smokers Q Growing availability of illicit tobacco Q Reduced affordability, thanks to ever-increasing prices

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 2018 | SLR

Inside Business

2 Minutes | Craig Brown, Retail Sales Director, JW Filshill

Craig Brown Glasgow-based wholesaler JW Filshill has finally officially launched its new premium KeyStore More fascia format in Scotland. We talk to Retail Sales Director Craig Brown to find out the thinking behind the new fascia. SO, CRAIG, KEYSTORE MORE IS FINALLY LIVE? Yes, that’s right. We’ve been working on the new fascia format for some time and have had it trialling in some stores on Scotland but we’ve now officially launched KeyStore More and we’re very excited about it.

WHAT EXACTLY IS KEYSTORE MORE THEN?

FACTFILE Craig Brown is Retail Sales Director at JW Filshill, having stepped into the very big boots of Ian McDonald who recently retired. Craig’s early career was in supermarkets having worked with William Low, Safeway / Presto and Tesco before becoming a senior manager at Sainsbury’s, winning a Store Manager of the Year award into the bargain. In October 2014 he left to set up Ross & Brown, a food retailing consultancy business. He was Managing Director there until joining JW Filshill last year.

It’s basically a premium format aimed at providing the most progressive retailers with a distinct point of difference in a busy retail marketplace, stimulate growth, and offer consumers more choice.

WHAT WILL THAT MEAN IN-STORE? KeyStore More is a premium brand created to appeal to consumers seeking a more comprehensive chilled and fresh range, a broader food to go offering, an extensive choice of local and Scottish brands and a shopping environment that is both modern and of a very high standard. KeyStore More is designed to elevate our offer to enable the most progressive retailers to expand their range and provide more of the products and services that our research tells us consumers want. All of this will be supported by a bespoke promotional campaign and enhanced by a brand-new image.

WE UNDERSTAND THAT DATA ANALYSIS IS ALSO HELPING DRIVE THE DIRECTION OF NEW FASCIA? Absolutely. We’re tapping into the extensive data from our own scanning system, allowing us to gather information on consumer habits in our customers’ stores – this allows us to constantly improve category management and product ranging in Keystore More outlets and gives retailers a competitive edge and point of difference over other independents in their area.

HOW IS KEYSTORE MORE PERFORMING AT THE MOMENT? Award-winning retailer Wilson Rea is among the first to adopt the new KeyStore More format and after just three weeks has seen sales increase at his 1,800sq ft store on the outskirts of Lanark. Sales for one week in November 28

SLR | JANUARY 2018

against the same period last year were up 10%. The expanded range, coupled with a partial refurbishment of the store, has really struck a chord with his customers and he’s delighted with the result.

SO IT’S PROGRESSIVE RETAILERS LIKE WILSON THAT WILL GET THE MOST OUT OF THE FORMAT? Yes. Wilson has shown he is willing to put a lot of effort and investment into his new KeyStore More and it’s that sort of commitment that will make the new format a real success. He has already installed new signage, LED back lighting, new shelving and a TV promotional screen as part of the refit.

AND A NEW FOOD TO GO AREA TOO? Yes, that’s right. Business is already very brisk at the new food to go counter with Simply Coffee, breakfast rolls, soup, pies, sausage rolls plus hot and cold filled rolls all selling well.

IS WILSON BUYING INTO THE LOCAL SOURCING ETHOS OF KEYSTORE MORE? Wilson has long believed in stocking local and regional lines so he buys from people like butcher Alan Elliot in Lanark, The Apple Pie Bakery in Kirkmuirhill and Overton Farm in nearby Crossford. Fresh, local and food to go are at the core of the KeyStore More consumer offer and Wilson’s store sits right in the Clyde Valley so he’s able to source a lot of great products.

TELL US THEN, HOW MANY KEYSTORE MORE STORES ARE THERE OUT THERE? We have already converted 11 stores now to KeyStore More and we are confident that the fascia will strengthen retailers’ armoury in Scotland’s competitive convenience store sector.

AND CAN YOU PUT A NUMBER ON HOW MANY YOU’D LIKE TO SEE JOIN THE NEW FASCIA? It’s always difficult to forecast but we do aim to have 20 stores trading as KeyStore More by the end of 2018. www.slrmag.co.uk

MPos Developed by Retailers for Retailers

• Increase Margin by 3-5% Easy to Use • Pays for itself • Touch Screen Tills • • Stock / Wastage Control Automatic Ordering • Advance Reporting • • Shelf Edge Label Printing • Age Checking / Refusal Log VAT Maintenance • • Promotion Management • Grows your Business Links to All Major • Suppliers • Over 100,000 Products in Background File • The Most Advanced Epos System on the Market Also Available  *Chip & Pin Integration  *Wireless HHT *CCTV Integration  *Tobacco Vending  *Weighing Scale Link

0800 242 5360 or 07804 904 066 sales@mhousesolutions.com www.mhousesolutions.com

Inside Business

Global Retail Trends for 2018

IGD UNVEILS THE FIVE BIGGEST TRENDS SET TO SHAPE 2018

International research body IGD has highlighted the five trends it expects to shape the global retail market over the next 12 months.

SLR | JANUARY 2018

www.slrmag.co.uk

Global Retail Trends for 2018

he top five trends expected to shape the global retail market over the next 12 months have been unveiled by IGD, the international grocery research organisation. The predictions, identified by IGD’s international research, shopper insights and catalogue of global retail innovations, provide exclusive expertise into the key areas set to shake up the industry in 2018.

PREMIUMISATION OF PRIVATE LABEL Retailers are increasingly using private label to appeal to a wide range of life stages as well as a change in shopping habits. The growing investment in these products to create a high-quality offer is increasing the demand for ranges that meet shoppers’ needs for excellent value and great quality. Indeed, 75% of UK shoppers now believe the quality of private label products has improved over the last couple of years, and many retailers are putting more emphasis on affordable premium private label ranges, which we expect to continue. On the premiumisation of private label, Toby Pickard, IGD’s Innovations and Trends Analyst, said: “Private label ranges are a key area in which retailers can differentiate themselves and stand out in an increasingly complex and competitive retail market. For own label manufacturers this could provide additional volume but more pressure on costs. For brands, they will have to ensure their products are superior to justify the price. They are likely to achieve this through showcasing heritage and new products.”

BECOMING HYPERLOCAL Despite shoppers being globally minded, the desire to have links to local regions and buy local products will increase over the next year. This approach will result in retailers selling produce that will only be available for a short period of time, due to seasonality and availability, creating uniqueness and increased shopper desire to get these products when available. This will introduce greater variation for shoppers but create more complexity within the supply chain. As stores aim to rotate produce and range more often there will be greater efficiencies, collaboration and communication within the supply chain. On becoming hyperlocal, Toby Pickard said: “To achieve a hyperlocal offering, retailers will need to support small and mediumsized producers. This will be positively perceived by shoppers, as it helps them sustain their community and allows them to feel special, to be part of something unique. Industry will need to ensure that the products sold truly reflect the local communities’ tastes and desires, which will require in-depth local insights. Retailers could tie up with local events and traditions to mirror shoppers’ beliefs and values to help build loyalty.”

DELIVERING THE GOODS Shopper expectations are continually increasing when it comes to getting the goods they want in a quick and easy way, with retailers so far meeting and even exceeding the demand with innovative delivery solutions. Increased competition amongst retailers to deliver to shoppers in more innovative and creative ways is therefore expected. Retailers will aim to utilise the data and insights into shoppers’ www.slrmag.co.uk

Inside Business

purchasing behaviours to understand and potentially anticipate what shoppers want, when they want and where they want their goods, before shoppers even know themselves. On delivering the goods, Toby Pickard said: “If shoppers continue to value innovations that offer convenience and time-saving solutions they will have less and less direct interaction with retailers and brands. To ensure they don’t get forgotten about in the mix of these developments, there will be a growing need for retailers and brands to stand out to shoppers. Gathering more customer data and using it to achieve long-term shopper loyalty will be critical for retailers and brands going forward. This will likely take the form of artificial intelligence utilising customer information to predict and fulfil shopper demand using automated delivery. “Retailers may need to create value beyond convenience to differentiate themselves from their competitors, while also keeping fulfilment and delivery costs down.”

LEADING IN LIFESTYLE Health and wellness will continue to be a focus throughout 2018. Retailers are therefore expected to expand designated zones in-store and develop lifestyle-focused formats. Retailers will offer more tailored, value-added lifestyle choices through the online channel, where they can help shoppers quickly and easily find products that help them lead healthier lives. With twothirds (65%) of shoppers saying the clarity of nutritional information on pack is important to them when making product decisions, there will be a greater role for industry to support shoppers in achieving healthy lifestyles. Vegetarian, flexitarian, better-for-you, free-from and clean-living labels will continue to be among the fastest growing and will be a priority investment area for retailers. As mainstream retailers continue to create an appealing offer in health and wellness, specialist retailers in this area will become increasingly challenged. On leading in lifestyle, Toby Pickard said: “Retailers and brands will need to stay very close to evolving food trends to ensure they are meeting the needs of increasingly diverse and demanding shoppers. The winners in this area will be those that are able to predict, create or respond very quickly to the next food lifestyle trend.”

FULFILLING STORES Physical stores are having to work harder than ever before to bring shoppers through the front door, with pressure mounting for retailers to cater to the rise of the ‘omnichannel shopper’ by offering a shopping experience that blends online, offline and big data to reinvent retail. As ecommerce transforms the grocery shopping experience there will be an increasing number of innovations that will showcase exciting produce, fulfil online orders in less time and offer more in-store shopper engagement. On the trend towards fulfilling stores, Toby Pickard said: “Retailers will be looking to enhance the physical store through showcasing exciting produce, while also offering practical solutions to meet the needs of shoppers who want to use a number of different channels. Brands should look to help retailers enhance the store experience for shoppers, while also being able to meet online fulfilment requirements.” JANUARY 2018 | SLR

IT’S THE SLR REWARDS – BUT NOT AS YOU KNOW THEM! The SLR Rewards is the most Rewarding event in the industry calendar and it’s back for 2018 with a new venue, new Rewards and the chance to win a car on the evening itself! Don’t miss out on the event of the year.

Q NEW VENUE Q NEW REWARDS Q SOMEONE MUST WIN A CAR!

CATEGORIES

Category Rewards

Q Beer Retailer of the Year Q Biscuits Retailer of the Year Q Confectionery Retailer of the Year Q Crisps & Snacks Retailer of the Year Q E-cigs Retailer of the Year Q Forecourt Retailer of the Year Q Newstrade Retailer of the Year Q Soft Drinks Retailer of the Year Q Spirits Retailer of the Year

Special Rewards

Q Best Refit of the Year Q New Store of the Year Q Community Involvement Retailer of the Year Q Food to Go Retailer of the Year Q Fresh & Chilled Retailer of the Year Q Responsible Retailer of the Year Q ThinkSmart Innovation Reward Q Team of the Year To download your full entry kit, visit www.slrawards.com or email events@55north.com

While the SLR Rewards are unique in the local retailing industry right across the UK in offering valuable, often money-can’t-buy Rewards for every category winner, we still feel it’s vital to keep freshening the awards programme up regularly – which is why we have decided to move venue for next year’s event, as well as moving up a gear when it comes to both the Rewards handed out and the format of the evening itself.

are justly rewarded for their amazing efforts throughout the year. Remember, no other awards programme in the UK offers every category winner a set of prizes that this year included a trip to NACS in Chicago. (You can find out how our current Scottish Local Retailer of the Year, Mahmood Saleem, got on while he was in Chicago on page 34.)

As a result, we will be moving to the plush Radisson Blu Hotel in Glasgow for next year’s event on June 20. The new venue offers us more space for some spectacular evening activities and a fresh new feel for what we are sure will be the highlight of the 2018 local retailing calendar in Scotland.

More great news is the fact that we will be giving away a car on the evening! A special raffle will be held on the evening, sponsored by Jet, and someone in the room on June 20 will collect the keys that evening! Any surplus funds from the raffle will be donated to a Scottish charity so we will be helping a great cause into the bargain.

We will also be taking a new approach to the Rewards for every winner and are currently working with our partners to build what will be a spectacular array of simply phenomenal Rewards to help ensure that the winners at next year’s event

Make sure you don’t miss out on the chance to be part of this festival of retail by entering as soon as possible. To register your interest or download the official entry kit and entry forms, simply visit www.slrawards.com or email events@55north.com

To enter, visit: www.slrwards.com Entry deadline: Friday 23rd March

SEWLARRDS

2017

SALEEM HEARS AN ECHO! Spar Renfrew retailer Saleem Sadiq had a very successful SLR Rewards 2017 and, among other prizes, picked up an amazing Amazon Echo for Making the Most of Milk in his store. this year, and along with a fantastic Amazon Echo. The fixture is permanently spotlessly clean, it’s easy to find in-store and the range is broad enough to cater for every customer. Availability is invariably 100%, and siting the fixture next to the store’s huge fresh and chilled wall drives sales and profits. The judges commented: “Everything about the milk fixture in Spar Renfrew is just as you’d want it: clean, tidy, neat, easy to find, wellstocked, a great range, a promotion or two and good pricing.” Another job well done, Saleem. As for his Reward, Saleem told SLR: “To be honest I’ve never used one before so I’m not entirely sure what it does, but I understand they’re pretty cool. I think you can just shout orders at it and it’ll do what it’s told, so that’ll make a nice change!”

For as long as we’ve been running the SLR Rewards – and that’s a long time – there’s one thing we’ve always been 100% sure about: Saleem Sadiq’s outstanding Spar store in Renfrew gets the basics right every time in life. When it comes to core footfall-driving categories like bread and milk, you can count on Saleem and his team to deliver. Saleem understands the importance of a great range and 100% availability and he delivers it without fail. As Woody Allen famously said, “80% of success in life is just turning up”, and Saleem’s store turns up 365 days a year providing exactly what customers want with a minimum of fuss. Nowhere is this more important than in the milk category – which is why Saleem scooped the Making The Most Of Milk prize

“I think you can just shout orders at it and it’ll do what it’s told, so that’ll make a nice change” WWW.SLRAWARDS.COM

Inside Business

#ThinkSmart2 |19 March 2018, Glasgow Science Centre

# T hin kSm ar t 2 The leading convenience tech, data and digital conference returns We are pleased to announce the latest additions to the speaking roster for SLR’s ground-breaking tech, data, digital and customer engagement conference exclusively for the UK convenience retailing trade.

LR’s #ThinkSmart conference is the only tech, data, digital and customer engagement trade conference created exclusively for the local retailing community right across the UK. As in-store technology, data capture and manipulation, digital communications and next generation customer engagement strategies become ever more important to the management of a modern convenience store, #ThinkSmart2 will offer a unique insight into how the

convenience retailing sector will look in the very near future. The event will once more attract retailers from across the UK for an illuminating, engaging experience mixing on-stage presentation, focused smaller-format breakout streams and a ‘Test & Learn’ experiential chamber where attendees can to get their hands on some of the latest tech available. Speakers already confirmed include Tom Hall, Retail Analytics and Consulting Practice Team Leader at IRI Worldwide and New York-based Enda

McShane, CEO of Velocity Worldwide. We are delighted to announce the addition of two more excellent speakers to the speaking roster: The Retail Data Partnership’s Managing Director Stephen Burnett and Gerry Hooper, CEO of Zapper UK. The event is taking shape very nicely and is set to be a true highlight of next year’s local retailing calendar. If you are interested in attending, exhibiting, speaking or wish to explore commercial opportunities, contact Antony at abegley@55north.com.

Visit thinksmart.slrmag.co.uk for more information 36

SLR | JANUARY 2018

www.slrmag.co.uk

19 March 2018, Glasgow Science Centre | #ThinkSmart2

Inside Business

# T hin kSm ar t 2 Speakers

Gerry Hooper, CEO, Zapper UK Gerry Hooper joined Zapper in 2014 with over 20 years’ experience and has brought all of that expertise to Zapper, one of the fastest growing businesses in the industry. Hooper’s presentation will offer a vision of the future where technology and data combine to enhance the customer experience, drive loyalty and improve footfall, revenues and profits. Hooper has worked in many sectors including Payments, Food, Entertainment and Retail and has helped transform Zapper from a small tech start-up to a thriving commercial business. Using his extensive experience, knowledge and tactical sales capability, Hooper has developed and successfully implemented Zapper’s strategic, fast-moving and scalable plans for a ubiquitous mobile payment and marketing insight solution aimed at different UK verticals. Focusing on launching throughout retail convenience, Gerry’s enthusiasm and passion for Zapper ensure the senior team is aligned in their vision, goals and future business plans. Stephen Burnett, MD and Founder, The Retail Data Partnership Twenty years in the independent retail sector has confirmed Stephen’s belief that independent retailers have a hugely important role to play in the UK, and need to use technology and their personal service to defend their livelihoods against ever-growing competition. Burnett’s presentation will highlight just what can be achieved by leveraging the power of data to drive better, smarter decision-making in a convenience store. The Retail Data Partnership is one of the largest suppliers of EPoS to the convenience retail sector in the UK. Its ShopMate EPoS system is designed to take the work out of running EPoS in-store, and to provide retailers with the key information they need to build the profits of their business.

Gerry Hooper

Stephen Burnett

Tom Hall

Enda McShane

Tom Hall, Retail Analytics and Consulting Practice Team Leader, IRI Worldwide Tom Hall is a recognised global thought leader in the world of retail analytics and heads up the Retail Analytics and Consulting team at research and data giants IRI Worldwide. Tom has worked across the globe in both developed and developing markets dedicated to helping retailers and manufacturers optimise their price, media, promotion and ranging strategies. He has a wealth of experience and has specialised in rolling out data analytics to new markets, working on convenience business optimisation across Africa, Asia, the Americas and Europe. At the moment, Tom is driving the development of tailored business optimisation packages for the UK convenience sector following the launch by IRI of a new ‘supermarket-style’ analytics solution created specifically for the convenience sector. The solution offers local retailers the same insights the supermarkets have had access to for years. Enda McShane, CEO, Velocity Worldwide New York-based Irishman Enda McShane, CEO and founder of customer engagement gurus Velocity Worldwide, will by flying across the Atlantic to discuss the role that customer engagement can – and must – play in modern convenience retailing. A renowned tech visionary, he will also discuss some ground-breaking work that Velocity is undertaking on both sides of the Atlantic, including some next-generation huge scale projects in NFL stadiums across the US.

Visit thinksmart.slrmag.co.uk for more information www.slrmag.co.uk

JANUARY AUGUST 2018 2017 | SLR

Inside Business

#ThinkSmart2 |19 March 2018, Glasgow Science Centre

# T hin kSm ar t 2

T Can retailers and brands turn big data into smart data?

he ability to turn big data into smart data has become a game changer for those convenience retailers and brands that have chosen to embrace it. They know that being able to study individual customer preferences and choices can have a real impact on the bottom line. But having better access to more and more data does not necessarily lead to better decision-making. The key is to know what questions to ask which the data can then answer. More importantly, businesses need the expertise, knowledge and technology to understand what is often mountains of information, captured and stored, but not used in the right way. There is huge untapped potential from smart data and both brands and convenience retailers should be brutally honest with themselves as to whether their data is working hard enough for them. Competitive advantages are potentially being missed because businesses will not have an accurate picture of what is the right price point or promotional strategy for a particular product or category.

RECOGNISING THE BUSINESS ISSUE

Data is set to play an increasingly important role in convenience retailing but having access to more and more data does not inevitably lead to better decision-making. It’s being smart about using data that will deliver the real benefits to retailers. By Thomas Hall 38

SLR | JANUARY 2018

Data can provide an understanding of customer behaviour. Therefore brands or retailers must ask the right questions to get a clear picture as to how changes in behaviour might affect them now and in the future. So, what data do they need and how might this be used to deliver the ROI it requires? What data has already been collected and is it ready to analyse? Business should also consider if there is data yet to be gathered. With so much data available each organisation must know exactly what business issue it is trying to solve. For a convenience retailer, is the aim to improve overall sales and margins only? With the growth of the omni customer, smart data can also reveal which channels particular customer segments use, when and how. This becomes increasingly important as customers’ expectations rise and the choices provided by multiple channels help customers to change their behaviours. Mobile, for example, has become more important to the shopping experience, and smart data analysis can help www.slrmag.co.uk

19 March 2018, Glasgow Science Centre | #ThinkSmart2

Inside Business

# T hin kSm ar t 2

both stores and brands create a seamless experience for customers. There are clear business benefits from mixing data with analytics to help adapt to changing customer behaviour. This is certainly true when it comes to digital and the volume of data being collected from high-speed applications and adverts viewed on mobile devices. Retailers and brands need to be able to analyse people’s digital footprint to discover whether the sales achieved by a particular campaign justify their marketing spend. Being able to identify what has been purchased at the point of sale after an ad campaign, for example, is the best way for a brand to define its ROI.

THE ROLE OF TECHNOLOGY Technology has a major role to play in helping extract and analyse data more effectively and assist with new product innovation and portfolio optimisation. For example, retailers are seeing the benefits of automatically loading, integrating and augmenting data from their stores to create an up-to-date single view of customers. The process involves analysing everything from point of sale, customer satisfaction and loyalty card data, as well as inventory and availability information. When these data sets are combined with analytics for pricing, promotions and assortment analysis, retailers can get a better understanding of how they and their suppliers can best target customers. Imagine the business opportunities from using trip mission segmentation, where the analysis tells you why your customers are visiting stores, and reveals the clusters of different shopping missions that need to be fulfilled across the entire store portfolio. Better data analysis certainly means more effective targeting when spending money on promotions by understanding cross category cannibalisation. Smart data

will reveal what is working best in which store, in which region and with which customer segment. For example, households might be more sensitive to promotions in some areas than in others. Using smart data enables brands and retailers to be sensitive to these differences and react accordingly.

RETAILER AND BRAND COLLABORATION

Sales and margins improve for the retailer and brands when both parties collaborate on gathering and analysing big data and translating it into smart, actionable insights. Everyone has the same goals. It’s about using data more strategically to plan, target, activate, measure and optimise brand and customer relationships to boost ROI and capture market share. Using store data effectively can, for instance, reveal areas where there are opportunities for incremental growth, perhaps within a particular category or across categories. Increasingly, the focus is on what products can provide incremental growth. For convenience retailers, the challenge is how to improve category performance, especially as they look to optimise their ranges. This means brands must work harder and, if their own data is not as detailed as that held by the retailer, they should consider collaborating with companies that can help them to plug their data gaps. Brands also need a clear understanding of what is the right price point for their products. Many brands and retailers have already established price and promotion optimisation as standard and as part of their growth strategy. They are running models across all their product categories and adjusting their marketing accordingly. Many retailers and brands have only scratched the surface of what is possible, but data is knowledge and knowledge is power, and being able to analyse data quickly and efficiently is absolutely crucial today.

Thomas Hall is Analytics Programme Director at IRI Worldwide. He will be speaking at SLR’s #ThinkSmart 2 Conference at the Glasgow Science Centre on March 19, 2018. www.slrmag.co.uk

JANUARY 2018 | SLR

WOODLANDSlocal

Inside Business

Woodlands Local |Monthly Update

NEW YEAR, NEW HOPE

2017 ended on a relative high at Woodlands Local with another set of encouraging results in various areas of the store but the best news of all is that the team at the store is finally back to something resembling full strength. BY ANTONY BEGLEY

ooking back on it now, 2017 was a difficult year at Woodlands Local but one with a few encouraging highlights that the team can use draw on to give us hope, enthusiasm and energy for the year ahead. Like every other store in Scotland we’ve had to come to terms with seemingly everincreasing costs. Principal among them is the

SLR | JANUARY 2018

National Living Wage, of course, which puts incredible stress on the business, requiring us to increase sales by many thousands of pounds every year just to be able to meet the wage bill every month and stand still. Then there’s all the other costs like rates, waste collection, energy, maintenance and so on that inexorably rise. And that’s before we even get to the increasing pressure on the www.slrmag.co.uk

Monthly Update | Woodlands Local

Inside Business

margins on the products and services we have to sell to make money in the first place.

PROMOTIONS The vital importance of the monthly promotional programme is something of a double-edged sword on that front. Yes, it unquestionably drives sales. By volume, we sell more wine on promotion than not on promotion in a year, for example. And we can hardly keep litre bottles of Lucozade on the shelf when they’re selling at half price at £1. So that’s all great and welcome, but the other side of that coin is the fact that the margins on promotional lines are naturally reduced. So we work harder, do more orders, buy more stock, spend more time replenishing the shelves and more money creating promotional POS – but for reduced margins. There’s many the day when I’ve wondered what would happen to our cash profit figures if we simply ran without any promotions for a month or two as a trial. Would the drop in volume be compensated by the increase in margin as customers are forced to buy full price product? I suspect I know the answer to that, which is why we haven’t done it yet, but it might be an interesting project at some point this year when we’re feeling braver.

PMPS The other issue at play here is price marking. Having recently reviewed the pricing right across the store I was struck by just how many lines we sell that are price marked. Virtually every hanging bag, more or less every large format bag of crisps, a big percentage of the soft drinks range. I could go on. The issue here, obviously, is that when reviewing our prices (upwards) we simply can’t do that on price marked lines. Yet a very quick scan of our Epos system showed that while the price marks on the vast majority of these lines hasn’t moved in the last 12 months, the buy price of almost all of them have. The result? Reduced margins for the store. Yes, some manufacturers are ‘shrinkflating’ with smaller size packs which helps to some extent, but the customers soon get wise to the fact their multipacks of chocolate bars don’t contain the normal bars they were expecting. It’s hardly a sustainable strategy. Then there’s a combination of the two: we’ve been selling 6 packs of Golden Wonder for £1 for months now, which helps sales as we struggled to sell multipacks in any volume before. But I have asked myself if we are costing ourselves sales of single bags of crisps which offer a comparable margin but for a lot less effort and shelf space. We might also be losing out on footfall too. Enough of the problems all retailers face. www.slrmag.co.uk

Promotions: a double-edged sword?

I’m preaching to the converted here, I know.

POSITIVE LOOK If I’m to take a positive look at last year, what I can be pleased with is a number of ‘record’ results towards the very back end of the year. Highest footfall figures in 2017 achieved in November, highest weekly basket spend in 2017 achieved in November, record weekly alcohol sales recorded in October, record chilled and fresh sales in December and record tobacco sales in December (driven partly by the Budget increase in prices, of course.) So, while it has been another tough year, there are some positive signs there to latch on to. The best news of all however, is that we are now back to something resembling full strength in terms of staffing for the first time in probably six months. A series of failed new recruits made that a tortuous process but we now have a strong team that understands what we’re trying to do and is working hard and smart to deliver it for us.

THE BIGGER PICTURE This also frees us up to spend much more

time on the strategic, bigger picture view of the shop that we need to take in order to grow and develop properly. So 2018 will be all about making the best use we can of our time and our resources to develop a number of areas of the business that we see as being key to growing sales and profits. Principally, these include: Q Hot food: it’s the heart of the business but we can do it much better with a broader range of products and a better presented offering. Q Chilled food to go: another cornerstone of the business but one where we can broaden the range and improve presentation. Q Fresh: an area where we hit highs or lows. We need to build a consistent range that is always in stock and looks great on fixture. That way we can hopefully level out the peaks and troughs and convert them into consistently high levels of sales. Q New lines: we are looking at introducing a raft of new lines including greetings cards, non-food and flowers to give our shoppers more reasons to visit and more reasons to spend more money when they do. Let’s hope 2018 is a great year for us all. JANUARY 2018 | SLR

Hotlines

Product News

Pedigree Ranchos Mars Petcare Available to order now, Ranchos Original Treats marks Pedigree’s entry into the “meaty” subsegment, which grew in value by 26% last year. A 70g pack RSPs at £2.50. Beef, Lamb and Chicken variants are available. Ranchos are comprised of 95% meat and animal derivatives, with no artificial colours or flavours. The launch will be supported by a marketing campaign throughout 2018, and in-store POS will be available early in the year.

Maryland Big & Chunky Burton’s Biscuit Company Burton’s is set to introduce new Big & Chunky lines under its £50m Maryland cookie brand. Available this month, the new Big & Chunky cookie range includes two variants – Milk & Dark Choc and White Choc & Caramel. Both RSP at £1.49 for a 180g pack. Milk & Dark Choc is also available as a £1.39 PMP. Maryland is currently the number one branded cookie in the UK, growing at 9.5% year-on-year.

Squbes Virginia Health Food Savoury seed cube brand Squbes has extended its range into the sweet category by introducing two new flavours: Dark Chocolate with Coconut & Sea Salt and Salted Caramel & Almond. The new flavours come in 30g packets (RSP £1.40) and 100g resealable pouches (RSP £3.50). Squbes are made with unrefined sugar, and are glutenfree, a source of protein and high in fibre. To stock, email sales@ virginiafoods.net.

SLR | JANUARY 2018

Fruittella offers more choice, but with less sugar Fruittella has added two new products to its range of 30% Less Sugar chewy bags: Jelly Foams and Gummies. The new sweets are both available in re-sealable bags, at an RSP of £1.25 in cases of seven. The 30% Less Sugar range launched earlier in 2017, tapping into growing consumer demand for reduced or sugar-free options. It sits alongside Fruittella’s Sugar Free and Classic Sugar Based ranges. The launches are supported by an ongoing £1.5m marketing spend for the Fruittella 30% Less Sugar range. Over a million samples will be trialled across the UK in the coming months. Matthew Navier, Fruittella Brand Manager at brand owner Perfetti Van Melle, said: “Our new Fruittella 30% less sugar sharing bags are part of a strategic decision to expand our range offering consumers conscious choices. Stocking a complete range of reduced sugar confectionery alongside our classic core range gives retailers the opportunities to drive incremental sales, and conform to government guidelines.”

Yazoo 1-ltr PMPs FrieslandCampina Yazoo has launched a £1.69 PMP version of its one-litre bottle format. The product can be stored either in the chiller or on the shelf, and is available now in core flavours Chocolate, Banana and Strawberry in outers of six. The last time the brand price-marked this pack size, it achieved twice the rate of sale as the non-PMP alternative. Yazoo said it was confident the PMP would help retailers to boost sales and continue to win customers’ trust.

Pantene Pro-V 3 Minute Miracle P&G Pantene’s award-winning Pro-V 3 Minute Miracle Conditioner is available now in the UK in four variants: Repair & Protect, Smooth & Sleek, Volume & Body, and Colour Protect. All RSP at £2.99. The new range has been launched with the help of Pantene’s brand ambassador Ellie Goulding, while £7m has been spent on advertising over the past 12 months to ensure continued brand engagement.

TUC minis pladis In a bid to tap into the evening sharing occasion, pladis has launched a new range of TUC Minis. The range comprises TUC Original and TUC Mini Cheese flavours. Both variants are available now in cases of 12 x 200g packs (RSP £1.39). The TUC brand is currently growing at 7% year-on year.

www.slrmag.co.uk

Feature

Fascias & Franchises

LURE OF SYMBOL GROUPS GROWS IN MARKET TURMOIL

The massive wave of recent industry consolidation no doubt leaves many retailers considering their options going forward in a market that’s set to become more competitive than ever – particularly for unaffiliated retailers lacking the weight of a big brand behind them. AVERAGE ANNUAL INVESTMENT PER STORE TYPE Q Independents – £7,632 Q Symbol Groups – £10,716

TOP REASONS FOR JOINING A SYMBOL GROUP Q Q Q Q Q Q Q Q

Wide range of products Promotional activity Regular communication Marketing in trade press Recognised brand above the door IT and HR support Dedicated trade website Buying Power

SLR | JANUARY 2018

he face of the local retailing industry in Scotland has changed almost beyond recognition in the last year with the likes of Tesco-Booker and the Co-op gaining an ever-stronger grip on the convenience sector. The collapse of Palmer and Harvey has also helped trigger a fresh wave of jostling for position with wholesalers across the UK battling to take advantage of P&H’s demise. Bigger groups mean bigger buying power at the end of the day and the gap between the haves and the have-nots is set to increase to new levels. The retailers left most exposed as a result are unaffiliated independents who will find it harder and harder to provide a competitive offer without the might of a major symbol or fascia behind them. For many independent local retailers in Scotland these days, then, the choice is less whether to join a fascia group or franchise and more about which one to join. And even for those currently with a symbol group, the recent spate of acquisitions and mergers has unquestionably left some retailers wondering whether it’s time for a change. The continually rising minimum wage, huge increases in rates and ballooning compliance costs across the board mean that for many the only option is to gain the support that comes from being part of a buying group of some shape or form. The stats bear this argument out: according to the 2016 Local Shop Report, the UK’s 15,100 symbol group stores generated £14.2bn in sales in 2016. The 19,100 non-affiliated independent convenience stores managed less than half of this figure, generating £6.3bn in sales over the same period.

Symbol groups have grown their share of the convenience-store market from 22% in 2002 to almost 40% in 2012. According to IGD data, this could rise to 50% by 2020. Whether you are considering joining one of these groups for the first time, or are thinking about moving from one to another, this guide will provide you with the key data you need to make a fully informed decision as to which fascia is right for you. The great news is that the range of choices available has never been greater. Each has its own particular strengths, but one thing that they all offer is buying power, a household name above the door and a comprehensive support network covering everything a retailer needs to remain competitive in today’s retail environment. Choosing a symbol group can seem an intimidating task. It is a big commitment, especially if you are already tied into a contract or faced with joining fees – whether this is in the form of an admin charge, buying shares or paying for signage or delivery. But there is no doubt it can pay huge dividends. How to decide which symbol group is right for you will ultimately depend on your shoppers and what they want you to offer them. It might come down to the kind of store standards you are prepared to meet and the ways of working. If, for example, you are simply looking for a way of running promotions effectively then you might want to consider joining a cash & carry-based symbol group where you would normally go into depot and pick up the goods yourself. The pros for retailers considering joining or switching symbol groups are numerous, not least because of the support a fascia can www.slrmag.co.uk

Fascias & Franchises

offer a retailer in every aspect of running your convenience store, from exclusive discounts and buying power to staff training, running a social media page and availability of new technologies. Being part of a symbol group gives you the backing and the knowledge, from promotions to posters and displays, along with the merchandising system and product knowledge to help make your business a success. Groups will send several reps and provide supplier contacts. They can offer an in-depth analysis of what you should stock, where you should stock it and how much you should be making. The support and advice that is given regarding store development should soothe shop owners who are nervous of change, and groups may introduce their own recommended shopfitter to assist with project planning and store layout. Many also have their own consultants who can do detailed reports on potential or increased turnover. These can be simple or very detailed, taking into account the demographic area around the shop and local competition. Sometimes there will be a fee, but it may be worth the cost as often it gives additional industry-specific information that will support any application. This information, when backed by a symbol brand, can add an influential supporting voice to any finance application. Retailers should ask themselves whether remaining unaffiliated is detrimental to their potential as a business. Whatever level you decide to go in at, it is best to do your research before determining which symbol group is right for you. www.slrmag.co.uk

Feature

THINGS TO CONSIDER WHEN CHOOSING A SYMBOL GROUP

Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q

Are there any initial costs? What ongoing fees are there? Are there delivery charges? Is there a minimum spend? Is there a minimum percentage of buying through them? Is there a minimum length contract? Will I have to purchase any new equipment, such as EPoS? Do they allocate stock and are certain lines sent out automatically each month? How frequent are the deliveries? How quick are the lead times for deliveries? What are their wholesale prices like compared to your existing suppliers? How extensive is the product range? Do they provide development support and in what form? Do they provide a chilled & frozen range? Do they offer advertising support â&#x20AC;&#x201C; either nationally or locally? What kind of consumer offers do they run? How will they help me to stand out against the competition in the area? Is there an own label offer? Do they have a loyalty scheme? Will they invest in my store and in what way?

JANUARY 2018 | SLR

Fascias & Franchises

Feature

LIFESTYLE EXPRESS: SUPPORTING YOU TO RUN YOUR BUSINESS YOUR WAY LIFESTYLE EXPRESS FAST FACTS AVERAGE STORE SIZE: 800 SQUARE FEET AVERAGE STORE TURNOVER: £12,000 PER WEEK AVAILABLE FASCIAS: LIFESTYLE EXPRESS, LIFESTYLE EXTRA, LIFESTYLE VALUE NUMBER OF UK STORES: 970 INCLUDING SCOTTISH STORES COST OF JOINING: THERE IS NO COST TO JOIN OR MEMBERSHIP FEE MINIMUM STORE SIZE/TURNOVER: THERE IS NO MINIMUM REQUIREMENT TO JOIN LIFESTYLE EXPRESS.

hether 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 and industry expertise 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, industryleading 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,

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 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.

SLR | JANUARY 2018

but with no membership fees or hidden costs. And there’s no minimum store size or minimum turnover required, just the potential to grow. Best of all, we have the right store format to suit your needs. Whether you opt for Lifestyle Express, Lifestyle Extra or Lifestyle Value, you can be sure that you’ll have the perfect format to best reflect your trading location. Our premium grey fascia runs alongside our traditional blue and green, all providing instant kerb appeal. With Lifestyle Express you can benefit from: Q 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 product and if you stock these, you won’t fail to see a surge in sales. Q We have a team of Core Range Advisors who work with retailers to identify opportunities 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. Q 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 winwin situation. www.slrmag.co.uk

No other symbol group gives you more

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: n Average sales growth of 30%

To realise your full potential, come and talk to us. Give John Farrell a call on 07852 248120 or email john.farrell@lmkcc.co.uk. Or, to find out more about Lifestyle Express, visit www.lifestyle-express.co.uk

n Free online training n A choice of premium fascias n Full promotions programme to help you compete locally n Regular cash back n Ongoing business development expertise and support n No hidden fees

WINNER

2017

2016

Landmark Wholesale

Lifestyle Express

Landmark Wholesale

Lifestyle Express

Favourite Delivered Wholesaler

Favourite Cash & Carry Wholesaler

Favourite Wholesaler for Customer Service

Responsible Retailer of the Year

Best Cash and Carry

Digital Innovation

Wholesale Service to Caterers

Customer Support

Best Retailer for Beers Wines and Spirits

Responsible Retailer of the Year

www.lifestyle-express.co.uk

Feature

Fascias & Franchises

JOIN THE BIGGEST AND THE BEST SYMBOL GROUP IN THE UK

Premier 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.

remier 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, 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,

SLR | JANUARY 2018

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

www.slrmag.co.uk

MORE FOOTFALL MORE CASH PROFIT It’s absolutely free to join us!

“Premier makes me more money by providing a fantastic choice of products, at great value prices so I can offer a great service to my shoppers that drives footfall.” Tony Mallaban Premier Avon Gold Supermarket, Bristol.

Become a part of the Number 1 Symbol Group

Call Premier:

01933 371246 www.premier-stores.co.uk

Unique discount format Simple to run and operate High cash profit

“I love the simplicity of operating a Family Shopper. It offers my shoppers the best of convenience in a discount format, where they really can get bargains everyday. Having a rationalised range, that still offers choice at low prices, means I run an efficient store and eases my cash flow. Plus the Booker team supports you every step of the way.” Mr Kumar Glynneath.

Call Family Shopper:

01933 371757

Feature

Fascias & Franchises

MAKE MORE AND SAVE MORE WITH LONDIS

THE BENEFITS OF THE LONDIS OFFER INCLUDE:

ondis is one of the UK’s leading groups with over 1,900 members across the UK and is part of the Booker Group, the UK’s leading food and drink wholesaler. This unrivalled buying power means that our retailers benefit from the best promotion package in the sector with guaranteed minimum PORs of 20% on Core deals. We operate a zero cost model and work in partnership with our retailers to develop their business. As well as the strength of a nationally recognised brand, Londis supports retailers with better pricing, award winning ranges, market leading promotions, store 50

SLR | JANUARY 2018

Q Q Q Q Q Q Q Q Q Q Q Q

Free Membership Competitive cost of goods Loyalty discounts of up to 4% on all purchases (Excludes Tobacco) Award winning Fresh range with over 1,250 lines. Award winning own brand ranges Euro Shopper, Happy Shopper and Farm Fresh A best in class online web ordering system (Londis Webshop) Market leading promotions every 4 weeks Free Promotion Leaflets and FREE store point of sale support Support from our dedicated Store Development and Retail Development teams Tri Temperature fleet delivering all your ambient, fresh and frozen needs on one delivery A best in class forecourt package with a dedicated forecourt team Free Membership of the ACS

development advice and a superb supply chain service to help them compete and succeed in today’s rapidly expanding convenience market. Londis is a flexible symbol partner that has a fully delivered service and support package to suit ambitious independent Scottish retailers offering true value with the right range of products at the right prices. We provide an industry leading fresh offer with over 1,250 lines, including

fresh food-to-go, fresh produce ranges and meal-for-tonight solutions. Combine this with smart planning, local area knowledge, range optimisation and the symbol group’s expertise in merchandising, and Londis has the package to suit any store. We are committed to helping our retailers Make More and Save More and continue to focus on delivering Better Choice, Price and Service for our customers and supporting them to grow their business. www.slrmag.co.uk

“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

FREE

Membership

Leaflet Scheme

FREE

EPOS System

Discount Scheme

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

joinlondis.co.uk

We’ll Support You Evermore!

We know what it takes to run a business. And we know what support you need to make your business more profitable.

OUR PLEDGE We’ll support you with the best service in the market place. We’ll support you with on-time deliveries, merchandising, promotions and prices. We’ll support you with the information you need to grow your business. We’ll support your local area, which will reflect well on you helping your business.

www.filshill.co.uk

filshill

jwfilshill

We understand that there is no ‘one size fits all’ trading format. That is why we work in partnership with our retailers to find a solution that provides both flexibility and a competitive edge. We have three different facias to suit all types of stores, from residential neighbourhoods to forecourts.

more Smaller stores. More impulse orientated.

Our standard store. One of Scotland’s most recognisable brands.

More fresh & chilled products. Food to go offering. Local/artisan produce.

All our stores receive POS as well as marketing support on and offline. Our sales team cover the whole of Scotland and work closely with our retailers to drive profitable growth.

TALK TO US Our business development managers have a wealth of experience and will work with you to grow your business. Give one of them a call!

Roy Williams

BDM East & North m: 07809903501 e: roy.williams@filshill.co.uk

www.keystore.co.uk

keystores

Robert Paton

BDM West, South & Central m: 07803518591 e: robert.paton@filshill.co.uk

Feature

Fascias & Franchises

TAKE ADVANTAGE OF ONE STOP’S SCALE AND EXPERTISE One Stop’s mission is simple. To create and support thriving businesses at the heart of their communities.

rading as a successful convenience business for over 20 years. We currently operate over 900 stores throughout England, Scotland and Wales. 20% of these are franchises, where we work in partnership with existing convenience retailers to help them reach their full potential.

EXPERTISE YOU CAN COUNT ON Our retail experience is the major aspect that makes us stand out from traditional symbol groups, which are predominantly wholesaledriven. We base our Franchise model on the groups proposition we run successfully in our company estate, giving franchisee’s a proven model to base their business on. Our years of experience means we’ve refined how we run our stores, and franchisees benefit straight away from our simple and efficient ways of working and our technology that makes this possible. If you speak to our franchisees they will tell you that our systems and processes save them valuable time, so that they’re able to focus on serving their customers, growing their profitable business, developing their teams and most importantly, spending more time with their family. Our model is built around 4 major principles:

1 BETTER SALES, BIGGER PROFITS Q We deliver a competitive margin of between 18-24% dependent on a store’s mix. Q Market leading meal deals – 3 for £3 lunchtime deal and 2 for £4 evening deal. Q Continued price comparison to ensure our prices set stay competitive. Q Brand new Own Label range featuring over 330 lines - better quality, bigger pack sizes, all at lower prices.

our franchisees are getting the best return from the space they have, by stocking the right range at the right time, to meet their customers ever-changing needs.

4 A PARTNERSHIP BUILT FOR SUCCESS

Q We invest up to £50,000 – dependant on terms & conditions of contract – in a store’s look and feel through a refit package which includes a 2 lane EPOS and back office system, store design, fascia and fixtures and fittings – all project managed.

Q Our Franchisees start off on the right foot with an experienced former store manager in-store, training the franchisee and their team for a whole week. Q A dedicated Business Development Manager visits every 4 weeks, helping franchisees to grow their sales and margins, not sell boxes. Q We’re fully committed to working with our franchisees to help their stores succeed. Which is why our BDMs and Support Team are on hand 7 days a weeks, providing continued support whenever it’s needed.

3 A SIMPLER WAY OF RETAILING

CONTINUED GROWTH

Q Our easy-to-use systems and proven ways of working take the hard work out of the dayto-day running of a store. So our franchisees have more time to focus on their customers and team. Q Extensive range reset programme in which every category is reviewed once a year, with Chilled and Fresh having two due to its more seasonal nature. This ensures that

As a franchisee you have the entire One Stop business behind you, working hard to improve every aspect of your store, and as we evolve our look & feel, offer, systems and support, you will continue to benefit directly. As we’re co-invested it’s our priority to ensure your sales and profit continue to grow yearon-year, and we do this through our proven model and unprecedented support.

2 INVESTING IN A FRESH NEW LOOK FOR YOUR STORE

CRITERIA You’ll sign up to a five-year agreement and commit to store standards and core range compliance. In return, you’ll see your business transformed! So, do you match our criteria? Q Ideally an established retail operator in England, Wales or the central belt in Scotland Q Existing C-store, CTN+ or Post Office wanting to migrate to convenience Q Or have a property that lends itself to convenience (we will work with cold starts / developments) Q Weekly turnover of at least £10,000 (excluding services) Q Sales area of between 1,000 sq. ft. and 3,000 sq. ft. If less you must have the ability to expand Q Have a current alcohol license or willing to obtain one Q Prepared to operate the minimum trading hours of 7am to 9pm (Mon-Sun)

MEMBERSHIP FEES: MAXIMUM £92 PER WEEK; OPTION TO PAY FOR ALL UPFRONT

SLR | JANUARY 2018

www.slrmag.co.uk

“WE BELIEVE ONE STOP FRANCHISE IS THE FUTURE” On average we saw our sales increase by 15% in our first full month of trading as a fully fitted operational One Stop Store. Since then our business has continued to grow year-on-year! We definitely made the right decision in becoming a One Stop franchisee. Life has become easier and the support we receive on a daily basis is unbelievable.

Do not let the fear of losing your independence lead you to losing your business to the competition. You should consider joining One Stop and let the competition lose their business. With product volumes up by over 35% and sales up by more than 20% and rising, in the same competitive environment where sales were previously sliding, One Stop Franchise and the model they offer speaks for itself - we believe One Stop Franchise is the future!

Javid Iqbal (One Stop Blackburn)

Kashif Mahmood (One Stop Oakley)

Don’t just wish for a better store with more profit, make it happen by calling us on 01543 363 003 go to www.openaonestop.co.uk or @1StopFranchise

Winner: Shop Layout. Winner: Availabilty

2016

One Stop. The award winning franchise.

WINNER FRANCHISE GROUP OF THE YEAR

Fascias & Franchises

Feature

FLEX INTO THE FUTURE

isa is the partner of choice for independent retailers, working tirelessly over the last 40 years to ensure it provides all the tools needed to compete against the increasing competition in the convenience retail sector. Retailers have the option to operate under a choice of symbol fascias; Nisa Local, Nisa Extra and dual branded whereby a member can maintain their local identity whilst also benefiting from the strength of the Nisa brand. Alternatively, retailers can opt to trade under their own independent fascia. Nisa offers flexibility to retailers with their Store of the Future Evolution format which is a move towards a more modular development format, accommodating the individual demographic and shopping missions of every store. A complete retail support package is offered, which comprises a strong retail focussed team, an enhanced category management system, a staff training facility and a comprehensive marketing package incorporating bespoke leaflets, point of sale material and national advertising. Nisa’s flexible model provides its retailers with an unbeatable breadth of range comprising over 13,000 SKUs. This is supported by Nisa’s

award-winning own label range, Heritage. This provides retailers with more than 800 great quality products at affordable prices and includes numerous award-winning lines such as the Heritage wine range launched in 2017. This commitment to value and quality also saw Nisa awarded Symbol Fresh Produce Retailer of the Year in 2016, affirming Nisa as the symbol group of choice for fresh produce. This is all delivered by Nisa’s industry leading supply chain which retailers can trust with an impressive 99.9% of deliveries made on the day and 95% successfully made on time. Nisa has its own insight team which allows retailers to truly understand their customers and their market place enabling them to modify their offer to match the ‘local’ demographic. Retailers can then use this insight in conjunction with Nisa’s category management service to create bespoke planograms and layouts within their individual sites. Through Nisa membership retailers can take advantage of the Retail Academy which provides a complete training solution to develop staff and help provide the best possible customer service. Nisa provides retailers with a comprehensive marketing package incorporating bespoke leaflets, allowing members to personalise

the leaflets to include local offers and events, and a personalised Nisa FM which provides a strong radio network for stores. Retailers are offered a full support structure to assist them continue to push their business forward. This comprises a strong field team covering retail development managers and regional retail managers, in addition to fresh food development managers, who encourage retailers to make the most of this important category, and store development managers who help to further develop stores. A quality EPOS solution, Epositive Evolution, is provided exclusively to Nisa members. With the ability to access promotions, stock lists and point of sale in a simple, touch-screen system it is a complete business management tool which can revolutionise the daily activity of retailers. And Nisa knows community involvement is key, and as such its retailers can support local good causes through Nisa’s Making a Difference Locally charity, which has donated over £7m to UK communities since its launch in 2008. The process to join the Nisa group is made as stress free as possible through the member website and the support retailers receive from the skilled in-house staff involved in the joining process.

COMPLETE THE FORM ON WWW.JOIN-NISA.CO.UK/CONTACT-US TO JOIN OR CONTACT OUR DEVELOPMENT TEAM ON 0800 542 7490.

SLR | JANUARY 2018

www.slrmag.co.uk

O T D E T T I M M CO

S R E L I A T E R R OU SINCE 1977

“Nisa are world class when it comes to delivery. We’ve always enjoyed over 95% of deliveries arriving on time and in-full, so have never had issues with availability or stock. But when Nisa suggested that we switch to the new Nisa store of the future format we couldn’t have predicted what an impact it would have, it really has taken our business to the next level. The Nisa team remodelled the whole store to take advantage of extra space made possible by a reduction in size to our stock room. It was a big jump, but the move was made possible due to the reliability and frequency of Nisa’s deliveries, meaning we could easily work around the smaller stock room and maximise our selling space.

Nisa carefully worked out the range by identifying the main missions first, then location and category space. Only then was range selected. The promotions that Nisa provide are perfect for our customers and mean we can offer real value on the products our customers want to buy every day. The results have been a hit with the locals. The customers love what we’ve done here and they tell us that they feel the store is larger and more open than before, so we want to adopt the same format across our portfolio.”

Join the family... visit www.join-nisa.co.uk

Nisa’s phenomenal delivery service is unrivalled and better than we could ever have expected. Anish Keshwara, Nisa Local, Whittlesey

Join the winning team! Supported locally by the largest Scottish based sales team in the symbol sector! ars four yeantastic. r o f s r f e er is etail SPAR r they can offn offer our d n e e b e foo e ca port We hav he supl forecourt w fresh foods, AR t d n a now usy petro r range of al. The SP wide As a b mers a bigge alue meal de includes a custo nd a great v xcellent anducts and we heir to go a ed range is e inning prod ur footfall. T ing brand y of award wed to grow opment , train variet e it has help tore develo e and we are ok believ ience from s cond to non rand . We lo exper idance is se f the SPAR b head. rson, and gu to be part o ore years a Margo Patteossan Ardr happyrd to many m e SPAR g a a r a w r G o f use Parkho

www.spar.co.uk

www.facebook.com/ SPARintheUK

@SPARScotland

Channel: SPAR UK

Up to £20,000* to make your store a great SPAR store Free membership fees in your ﬁrst year Free full project management of store development Free inclusion in the new store induction scheme & participation within the fresh food sales project Free market leading training Bespoke advertising support package to launch your new SPAR store Heavyweight national advertising campaigns plus leaﬂets and distribution in your local area Multi award-winning own brand range - 1000 products New enhanced package including lower cost prices and additional margin opportunities through over-riders on all purchases (exc. Tobacco products) * Subject to terms and conditions. Maximum amount available for store development £20,000. £2,500 membership fee saving based on higher tier.

Award Winning Products

Food to Go

Fresh for Less

Great Value Promotions

Speak to us today www.spar.co.uk/joinspar email: recruitment@sparscotland.co.uk or call Marketing on 01382 512000

Feature

Tobacco & Vaping

EUTPD2 DRIVES SHIFT TO RYO The effects of the introduction of the EUTPD2 legislation last year are still far from well understood but one trend that is becoming clear is a 4% shift from cigarettes into RYO. BY ANTONY BEGLEY

t’s still far too early to determine the true effects that the introduction of the EUTPD2 legislation has had on the tobacco market, but some interesting trends are starting to become evident. One of these has been a notable shift from factory made cigarettes (FMCs) into RYO. Imperial Tobacco UK (ITUK) estimates there has been at least a 4% shift in that direction since EUTPD2. Major shifts in the tobacco landscape were only to be expected, not least because ITUK also reckons that 86% of FMCs and RYO packs bought in 2016 are now no longer sold following the introduction of EUTPD2. What that means is that a lot of adult smokers have been forced to re-evaluate their tobacco purchases. Andrew Miller, Head of Field Sales at ITUK, says: “Since the transition to standardised packaging adult smokers have certainly become more brand reliant, either sticking with – or returning to – the tobacco brands they’ve traditionally relied on to provide a quality smoking experience.”

GROWTH AREAS That flux has seen the direction of travel continue towards RYO and the lower pricing tier products, as Miller explains: “Within the FMC sector, Sub Economy (the lower pricing tier) brands continue to enjoy the largest share. Our figures show that this was almost 44% of all the FMC sales in September 2017.” Miller also notes a shift in demand towards the crushball (capsule) sector which now accounts for over 13% of the overall FMC market, according to his figures. This has increased by 1.5% compared to this time last year, with one in every 81 cigarette purchases now a crushball. As for RYO, Mid Price brands currently enjoy the largest sector share – 54%. But it’s not all about the mid and low price sectors. Miller urges retailers to offer a wide range of products – including Premium – to 60

SLR | JANUARY 2018

ensure they meet consumer demand. As an example, Golden Virginia is a premium tier RYO brand but commands an overall RYO market share of 22%, he points out.

NPD Introducing new products has never been tougher for the tobacco manufacturers thanks to EUTPD2 and that explains the collapse of the NPD market – but some new lines are still finding their way onto the gantry. Miller says: “Since the introduction of EUTPD2 and standardised packaging, there is now also markedly more responsibility on the part of wholesalers and convenience store owners to really understand their tobacco offering and become experts.”

BACK TO BASICS Tobacco remains an important footfall driver for many independent stores, so getting the basics right of offering a wide range and consistently high availability – especially when it comes to bestselling lines – have never been more important. Miller encourages retailers to lean on their industry partners to ensure they are getting every penny of sales and profits from the category: “We’d encourage retailers

to take further advantage of their already close relationships with their Imperial sales representatives to develop and refine their FMC and RYO offerings. By becoming category experts, stocking wide ranges, maintaining consistently high availability, merchandising stock using our ‘one brand, one shelf’ method and pricing competitively, retailers will be well-positioned to advise adult smokers around new products, pack formats and other upcoming innovations in the category.”

ILLICIT TRADE One area where retailers, wholesalers and manufacturers agree is in the importance of tackling the increasingly damaging illicit trade which is now at an all-time high. James Hall, Anti-Illicit Trade (AIT) Manager at ITUK, says: “The new regulations have unfortunately had a detrimental impact on the independent trade. We note recent HMRC statistics suggesting that the most recent tobacco tax gap (the difference between the amount of tax due and the amount collected) is estimated to be an all-time high £2.4bn, owing to a rise in the sales of non-duty paid contraband and counterfeit tobacco. The government’s failure to address this growing issue continues to harm honest UK retailers. “In lieu of the government either repealing standardised packaging or lowering tobacco tax rates, ITUK has recognised that the most effective way to tackle illegal tobacco is to continue to raise awareness and build AIT advocacy among retailers, law enforcement, industry bodies and politicians alike via our dedicated team and Suspect it? Report it! campaign.” As part of this campaign, ITUK co-hosted several events in conjunction with Bestway and Booker wholesalers last November – which were attended by many local retailers and resulted in fruitful new intelligence leads relating to the potential sale of illegal tobacco. www.slrmag.co.uk

Marlboro Touch, just

ÂŁ7.99*

Improve your sales a touch more. Marlboro taste and quality With Firm Filter With Pro-Seal Just a slimmer size and price For the information of tobacco traders only and should not be distributed further. Pack images are for illustration purposes only. *RRP = Recommended retail price. All on-shelf prices are selected by the retailer alone.

Tobacco smoke contains over 70 substances known to cause cancer

Feature

Tobacco & Vaping

MERCHANDISING TOP TIPS FROM BLU BE VISIBLE You can display, advertise and promote vaping products in store. Countertop units are a great way to drive visibility in store or, if space is limited, an impactful back wall display will help showcase your range. Talk to your Imperial representative if you are interested in acquiring any blu POS materials.

TIME TO TACKLE STALLED VAPING GROWTH The UK vaping market is worth over £1bn with traditional retail channels accounting for almost £160m – yet value sales within these channels appear to be stalling as consumers gain confidence in the category and purchase via alternate channels like vape stores and online.

BE IN THE KNOW Make your store a destination outlet for vapers by being knowledgeable on the category, the consumer and the different products available. blu has produced a range of educational leaflets offering advice for retailers, so don’t hesitate to contact your Imperial rep if you’d like materials such as these.

STOCK A VARIETY OF FLAVOURS E-liquids are the biggest driver of sales in the vaping category and an important area to get right. Pay attention to what your customers are buying and offer an extensive range of flavours and nicotine strengths that will appeal to both quitters and enjoyers. Our newly-enhanced blu e-liquid portfolio has a wide range of flavours (12) in a variety of nicotine strengths including 1.6%, 0.8% and 0.0%.

STAY STOCKED UP Make sure you’re always fully stocked with a top brand like blu. If you don’t have a product in stock, customers may go elsewhere and not return. Stock at least one open system branded range and one closed system brand.

DON’T FORGET CLEAROMISERS Clearomisers offer a simple way to upsell and drive additional sales and margin. Consumers should change their clearomiser after every two bottles of e-liquid, or with every change of flavour or brand to maximise their vaping experience.

SLR | JANUARY 2018

he vaping category has long been accepted as a massive opportunity for local retailers, capable of delivering high footfall levels as well as remarkable profit margins. It has also long been felt that convenience retailing is the ‘natural home’ for vaping products with customers seeking quick, convenient transactions, just as tobacco consumers have done for many years. The UK vaping market is now estimated be worth around £1bn with something approaching £160m [Nielsen, Oct 2017] of that coming through traditional retail outlets. The remainder is mopped up by specialist vaping outlets and online sales. With most local retailers now offering at least some sort of vaping offer, the industry had expected the percentage of sales through traditional retailing to continue increasing – but worryingly that now appears not to be case. Sophie Hogg, Head of Next Generation Products, at Imperial Tobacco UK (ITUK), explains: value sales within traditional retail channels appear to be stalling as consumers gain confidence in the category and purchase via alternate channels like vape stores and online.” This is a worrying development and one that local retailers must address if they are to truly exploit what remains a fast-growing

opportunity. Hogg recommends that retailers act fast and use the expertise and experience of companies like ITUK to secure their share of the market. She says: “blu is committed to offering continued bestin-class support to independent retailers around the evolution of the fast-moving vaping category. We have already distributed a number of e-vapour guides across the independent trade, including advice on key market trends, the range of systems available, and changes in government legislation. In terms of in-store activations, we also offer a wide range of POS materials from shelf edge strips and selling units to in-store sampling stations. Retailers wishing to take advantage of these opportunities should speak to their Imperial representative.” Hogg advises that behind-the-counter solutions still have an important role to play in the sale of tobacco, accessories and – moving forwards – e-vapour products. They clearly, legally signpost that tobacco and e-vapour products are for sale, showcase the retailer’s wide range and availability of products, offer secure storage and – in the case of Imperial-supplied gantries – are provided and installed free-of-charge. The company has also committed to a flexible approach to working with retailers to drive bespoke solutions that deliver the best opportunities for retailers. Hogg says: “We continue to ensure our varied range of eyewww.slrmag.co.uk

RELAX YOUR WAY, IT’S ON US! LET JPS MAKE YOUR DAY WITH EXCITING PRIZES AND EXPERIENCES TO BE WON. What would you choose? It’s on us! For a chance to win visit www.JPSMakeYourDay.co.uk or scan the QR code, take the challenge and tell us how we can Make Your Day.

www.JPSMakeYourDay.co.uk

REAL BLUE

SILVER STREAM

QUALITY

BLEND

GREEN EDGE

CRUSHBALL

Feature

Tobacco & Vaping

catching gantries offer the right solution to our retailers in these challenging conditions. Engaging with our traders and listening to their feedback has led to the development of hybrid furniture options, combining traditional tobacco storage with attractive new sections intended to help highlight retailers’ e-vapour products, including our blu range.” So what is driving sales in the category? In a word, e-liquids. This part of the market is, according to ITUK, the driving force of value sales within the vaping category, responsible for a 45% share of the market (£71m) and growing by an impressive 39%. However, ‘closed’ systems (using interchangeable cartridges) still have a role to play, especially in terms of existing smokers moving into the category, as well as dualists. Closed systems represent the second largest market share with 29%, and UK sales worth £46m. First and foremost, Hogg says retailers should ensure they offer the optimal flavour portfolio for their customer base. blu recommends a wide range, including fresh flavours like Polar Mint, fruity flavours like Tropic Tonic, savoury flavours like Vanilla Crème and of course, classic Tobacco flavour. Providing a strong range of flavours like these, all of which and more are included in blu’s new e-liquid line up, complemented by the right range of nicotine strengths, will help retailers retain existing customers, attract new ones and foster their e-liquid sales revenues. blu’s own range of eight new flavours is available in 10ml bottles in both 0% and

0.8% nicotine strength in: Tropic Tonic, Vanilla Crème, Peach Passion, Berry Swirl, Mint Chocolate and Green Apple. Caramel Café and Polar Mint will also be available in a nicotine strength of 1.6%. Each 10ml bottle has an RSP of £4.99, and offers margins of over 40% when sold at this price. Meanwhile, Japan Tobacco International (JTI) is tapping into current market trends with the launch of a new range of lower strength 6mg e-liquids under its Logic brand. The company says the UK-made product taps into a growing consumer demand for lower strength e-liquids. Available in a range of popular flavours – Tobacco, Menthol, Cherry, Berry Mint and Strawberry – the expanded LQD range now includes 18mg,

12mg and 6mg strengths. The 6mg Logic LQD e-liquids are available in all channels with an RSP of £5. Stephane Berset, Head of Marketing at JTI, comments: “We have a dedicated insights team that closely tracks market trends, so we can provide retailers with new Logic products that allow them to maximise the profit potential of the category. With more than two million adult vapers [KTNS Omnibus, Q3 2017] in the UK on the lookout for more sophisticated and easy to use vaping devices and e-liquids, this focus on new product development ensures the Logic range is a must-stock for retailers.” The new range of e-liquids can be used with any refillable device, including the company’s own Logic LQD unit.

VAPING CONSUMER PROFILES blu says that there are three million vapers in the UK, 40% of which have started using vaping products in the last six months. 90% of users vape regularly, with 50% vaping more than they smoke [Rainmakers, 2017]. Research into different profiles of vaping consumers suggests two main demographics within the vaping sphere:

QUITTERS These consumers aren’t particularly engaged with the category. They tend to stick to one device and just one or two flavours, often including traditional tobacco flavours, and proactively try to lower their nicotine intake. Most interested in cigalike or pre-filled closed vaping products.

ENJOYERS These consumers are extremely engaged with the category and often try multiple devices. They embrace flavour variety, and are tending to move away from traditional tobacco flavours towards fresh and fruity variants. Likely to prefer open systems and own a repertoire of devices, including a basic tank as a discreet device for the office – like a blu Pro Kit – as well as a ‘cloud chasing’ advanced tank when relaxing at home alone or with friends.

EXPERIENCE IS EVERYTHING Research conducted on behalf of blu suggests that the main reasons consumers buy e-vapour products are, in order: Q previous experiences of the product. Q flavour Q format Q price Research also shows that traditional retail channels, including large supermarkets, independent stores, convenience stores and forecourts, rank below vape stores and online vape specialists in terms of the level of consumer experience provided when shopping for vaping products. This highlights the fact that local retailers have some catching up to do when it comes to offering vapers a positive customer experience.

SLR | JANUARY 2018

www.slrmag.co.uk

ITâ&#x20AC;&#x2122;S TIME

Feature

Easter

PLAY TO YOUR STRENGTHS THIS EASTER

Easter remains a key seasonal sales opportunity for local retailers but with the increasingly aggressive approach of the major multiples to deep discounting, it pays to play to your own strengths to maximise sales and profits.

racking the Easter puzzle can be a tricky one for local retailers. Where once it was a fantastic seasonal sales period, the deep discounting strategies of the major multiples, particularly when it comes to shell eggs, has changed the face of Easter forever. But that doesn’t mean there isn’t a solid opportunity for retailers prepared to put a little effort and thought into their own Easter strategy. And remember that the total Easter confectionery market has actually grown over the last two years, with value growth outstripping volume growth [Nielsen, Easter 2017 v 2016]. Sure, the supermarkets will grab a chunk of the Easter market with their Easter egg deals but all the major confectionery manufacturers have worked hard in recent years to provide ranges tailored for the convenience market to allow local retailers to provide an enticing differentiated offer to their shoppers. Ferrero for one is helping local retailers step into spring with the introduction of new seasonal products, a bespoke on-pack promotion across its Thorntons portfolio, new merchandising solutions and a £7.9m marketing campaign. With six in 10 impulsive buyers stating that 66

SLR | JANUARY 2018

seasonal packaging is important [Advantage Group, Dec 2016], Ferrero is introducing new seasonal packaging across its portfolio of household favourites, to drive relevancy during the key trading period. To emphasise the premiumisation of Thorntons and create a better-aligned range, the brand has redesigned the products, which has proven to significantly improve purchase intent. Levi Boorer, Ferrero Customer Development Director, comments: “Chocolate remains synonymous with spring and Easter, with 73% of households with kids buying chocolate for seasonal occasions [Nielsen, Apr 2017]. When it comes to choosing what to buy during these events, shoppers are continuing to look for special and premium products to share or to gift. Treating yourself and others with single serve items during this period is also popular, and with Thorntons now firmly under the Ferrero stable, we are able to offer products to suit every need.” To capitalise on the desire amongst consumers to gift loved ones with something unique, Ferrero has developed a personalisation campaign across the Thorntons range. Boorer explains: “In the context of occasion gifting, significant nostalgia exists for

Thorntons. Personalisation is a treasured memory, with recollections of being gifted personalised eggs, or queuing to have eggs personalised. For many, an Easter gift from Thorntons signals premium, good quality chocolate and a thoughtful gift.” Supported by a £2m marketing campaign spanning TV, digital and social media, the promotion will be live across a range of 14 eggs and novelties, offering shoppers the chance to win hundreds of personalised gifts for their loved ones. Prizes include 1,000 chocolate speech bubbles, with a personalised message, and three chocolate experiences at the Thorntons Factory. Mars is also encouraging retailers to start early and fast to maximise the wider spring opportunity. “Getting a fast start is crucial to making the most of the Easter season and accounted for 80% of growth last year [Nielsen, Easter 2017],” says a spokesperson. “Self-treat products mainly drive this growth and this year will again see the return of Mars Chocolate UK’s iconic Malteaster Bunny, the nation’s number two self-eat product. One in two people buy Maltesers products and the crunchy and cream taste sensation of the Malteaster Bunny is perfect for retailers looking to boost their sales at Easter.” www.slrmag.co.uk

Feature

Easter

MARS EASTER MERCHANDISING PRINCIPLES Q Easter is on the radar for consumers as early as January so retailers should ensure they are stocked up from December, with particular focus on treat products like Malteaster Bunny early on in the season and Galaxy Golden Eggs. Q Gifting is a major factor at Easter and last year and grew by 7.7%. Retailers should ensure they stock a full range of small, medium, large and luxury eggs to cater for all ages and budgets. Q Both Galaxy Golden Eggs and Malteaster Bunny are supported by eye-catching POS displays and retailers should make sure they utilise these materials to create in-store theatre. Q Utilise promotions – these are often key to triggering purchase and can also encourage customers to buy more eggs.

FERRERO’S TOP TIPS FOR A SUCCESSFUL SPRING: Q Range – Keep your range simple to avoid confusion and allow you shoppers to buy with confidence. Shoppers are looking to trade up at spring so offer a good display dedicated to your spring offering which is dedicated to premium brands to encourage shoppers. Q Availability – Stock up early to make the most of the whole spring season, and keep in mind that some shoppers like to purchase early whilst others will be looking for a last-minute purchase. Q Cross-category promotions – Providing a cross-category promotion such as Raffaello Hearts and flowers increases basket spend for retailers and offers shoppers the chance to purchase multiple items, in a convenient way.

KEY LINES TO FOCUS ON THIS SPRING: Q Shell eggs Q Boxed chocolates Q Novelties

FERRERO’S PRIMARY RANGE OF EASTER CHOCOLATE AND GIFTING PRODUCTS INCLUDES: Q Q Q Q Q Q

Ferrero Rocher Grand Rocher 125g & 240g – RSP £5.63 and £9.66 Thorntons Nuts & Praline Collection Egg – RSP £6 Thorntons Mint Collection Egg – RSP £10 Kinder Pink and Blue 100g – RSP £5.90 Kinder Choco- Bons 200g – RSP £2.72 Kinder Joy – RSP £1.06

The Malteaster Bunny is again joined by sharing and multi-pack formats this year, supporting the rapidly expanding sharing segment at Easter, which in the past five years has grown 8%. Malteaster Mini-Bunnies and Malteaster Family Mix are available at RSPs of £1.29 and £3.99 respectively. Celebrations brings together Mars’ family of favourite brands, and the Celebrations Gift Pack, designed to meet a new gifting shopper mission, is the perfect option for retailers looking to maximise their fast start to the Easter season. The growth in sharing and kids confectionery are two trends to take note of for this Easter. Consumers say spending time together over Easter is important, with 42% of families saying they often have a family meal at home over Easter and 66% of people tend to spend the holiday visiting family and friends [HIP Easter Omnibus 2017]. During these occasions sharing and gifting products such as Ferrero’s boxed chocolate range play a huge part. “We have seen a gradually evolving trend where shoppers are increasing how much they eat and share at home with family and friends,” continues Boorer. “To accommodate this trend, we have worked hard to shape our 68

SLR | JANUARY 2018

portfolio to ensure we are tapping into the popularity of sharing. “The popular sharing bag from Kinder – Kinder Choco-Bons – will have a new Easterinspired pack design this year, to align the product with the rest of the range and drive relevancy for the occasion. Similarly, both the Kinder and Thorntons brands enjoyed a strong performance during the spring period last year; Kinder seasonal is now worth £17m over Easter, making it the fifth-biggest brand [Nielsen, Easter 2017]. Meanwhile, Thorntons outperformed a flat market, growing at +22% [Nielsen, Apr 2017]. To capitalise on the popularity of the products, both brands will receive new launches and a strong support plan for spring 2018. Thorntons will be replacing its well-known Harry Hopalot Milk Chocolate and White Chocolate Eggs, with a Milk Chocolate Bunny and a White Chocolate Bunny, to reflect the new Masterbrand colours. The new chocolate bunnies will be available in two sizes: 151g, RSP £5 and 60g, RSP £2. In addition, the eggs will also feature the on-pack personalisation promotion. Boorer concludes: “Whether it is for gifting or sharing or simply to be enjoyed at home with loved ones, we

encourage retailers to start stocking up in January, to meet shoppers’ needs for spring. We would always recommend that retailers utilise the POS solutions that are made available, to maximise sales and capture shoppers’ attention with eye-catching theatre in-store.” Mars also highlights the importance of maintaining availability right through the period. A spokesperson said: “Consumers often leave it to the last minute to buy their chocolate as 50% of sales occur in final three weeks making it particularly important for retailers to remain stocked up on gifting chocolate as the season draws to a close [Nielsen, Easter 2017]. A great product for right through that period is Galaxy Golden Eggs. Since its launch in 2016, the product has generated strong sales and become the number two small sharing bag during the Easter season. It continued its strong start last year growing by over 30% in its second year and looks set to continue this trend in 2018, making it the ‘must stock’ SKU for retailers.” Galaxy Golden Eggs are on sale at RSP £1.29, while the Galaxy Golden Eggs Large Egg is available at RSP £5.29. www.slrmag.co.uk

PASS THE LOVE ON THIS EASTER The No.1 Premium Chocolate at Easter*

Continental 284g Classic Box MDW 248g Classic Box MDW 248g Gift Wrapped Classic MDW 205g Egg Football 150g Egg Bunny 151g Egg

www.yourperfectstore.com Please visit our new trade website for POS and the latest product updates *Source: HPI Seasonal Omnibus â&#x20AC;&#x201C; Easter 2017

UTC

PEOPLE EAT TOO MUCH AT CHRISTMAS SHOCKER!

UTC loves a good Christmas nosh-up as much as the next guy, so he was fair tickled to see a bah humbug version of the favourite PR tactic of ‘sales pitch presented as research’ shortly before the big day. The study made the startling finding that people eat too much at Christmas. The press release boomed: “The average British Christmas sees the public consume a dangerous number of calories, doing unseen damage to the nation’s health”. Apparently a British Christmas dinner contains 1992kcal, “equal to the daily caloric allowance for an average female”. And who made this shocking discovery? A company called Discount Supplements, an online retailer of health and fitness supplements. The press release went on to warn of the dangers of consuming alcohol, concluding that to burn off Christmas lunch a woman would need to run for two-and-a-half hours at a steady 7.5mph. Better safe than sorry, said the auld yin, promptly ordering a 3.5kg tub of Whey Protein from Discount Supplements for the not very discount price of £49.99. He was last seen trying to Google a Jamie Oliver recipe for whey-basted turkey with pigs in whey blankets. Rumours that he called Mrs UTC to see if his old pair of Adidas Altar Boys were still serviceable for a wee after-Christmas-dinner run have yet to be verified.

A TENA FOR YOUR THOUGHTS The annual fiasco that is the Secret Santa tradition at SLR Towers often descends into chaos and this year was no different. One wag who shall remain nameless capitalised on the fact that each gift can be no more than a tenner by buying UTC some Tena incontinence pants. Do you see what they did there? Tenner. Tena. [Presumably was an editorial guy, then? – Ed] The pants are the latest in “bladder weakness control” apparently, and sport a “sleek new look”. Which is what the auld yin gave in response to his gift. To be fair, the auld boy still appears to have a degree of control over his bladder. Well, apart from that one office shindig in The Horseshoe – but the less said about that the better. 70

SLR | JANUARY 2018

YOU CAN’T WIN ‘EM ALL

UTC is a hell of a man for a New Year’s resolution, most of them ridiculously optimistic and involving drinking less. This year he loudly vowed at the Christmas party to resolve to “focus on letting go of his past bad decisions and move forward with a positive approach to life”, to the amusement of the room. But he was inspired to his latest “you can’t win ‘em all” resolution after reading a press release about the biggest business blunders ever made, and how they weren’t the end of the world after all. A few examples, you say? Well, there’s HarperCollins rejecting the opportunity to publish Harry Potter, which went on to become a £19bn franchise. Or Decca Records rejecting the Beatles. Or how about a company called Excite dismissing the opportunity to buy Google for £750k – it’s now worth £180bn. Or Blockbuster Video skipping the chance to snap up Netflix. The Christmas party conversation then moved on to the best disasters that the team could remember in the retail industry, and there’s been a few. New Coke, anyone? Crashed and burned. Coke Life seems to be heading the same way, mind you. Remember that time when McVitie’s changed its name to McV, realised that this was a stupid thing to do and promptly changed it back? How about Irn-Bru and whisky premix? And what happened to the entire energy shots category that was set to be the Next Big Thing? Feel free to remember some of your own and send them in to the auld yin so he can add to his list. www.slrmag.co.uk

What are you doing to help grocery people who struggle to

survive? Get involved and show that youâ&#x20AC;&#x2122;re not buying debt too.

Call 01252 875925 or visit www.groceryaid.org.uk

GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Reg. No 1095897 (England & Wales) & SC039255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683

we’re

back nat flav ural our s

sugar free fruit d e flavourish scott g sprin water

*Units, IRI Total Scotland – Year to 14/10/17