SLR July 2018 by 55 North

WE GET RETAIL BECAUSE WE’RE RETAILERS TOO!

JENS CHRISTIANSEN

A new cigar opportunity?

THOMAS HALL JULY 2018 | ISSUE 183

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Using data to win hearts and minds

BROADWAY TO VEGAS

Dennis and Linda Williams of Premier Broadway Convenience Store pick up a trip to Las Vegas as Scottish Local Retailers of the Year! In-depth analysis of why every winner won – your chance to pick up some great ideas!

July 2018

Contents

Contents ISSUE 183

NEWS p4

Retail Violence Proposed Protection of Workers Bill clears another hurdle on the road to becoming law. p5 Wholesalers Colin Smith named as successor to Kate Salmon at Scottish Wholesale Assocation. p6 Legislation Scottish Government announces plans to target food-to-go promotions in a bid to combat obesity. p7 News Extra Brexit BRC research reveals a significant rise in administration costs for EU food imports in the event of a ‘no-deal’ Brexit. p54 Product News Cadbury goes ‘madbury’ with a competition that lets consumers design new Dairy Milk bars. p55 Off-Trade News Whyte & Mackay breaks new ground with Edinburgh Festival Fringe sponsorship deal. p58 Newstrade Scottish Sun goes on road trip to raise cash for good causes.

INSIDE BUSINESS p60 Research Digest Tough trading conditions for retailers mean that customer service is back in fashion. p62 SWA Conference Review Retailers, wholesalers and suppliers work on ‘bridging the gap’. p64 2 Minutes Of Your Time Jens Christiansen Scandinavian Tobacco Group’s marketing chief says half of retailers are needlessly missing out on tobacco sales. p65 Customer Data Can data help convenience retailers win back the hearts and minds of shoppers? p66 Woodlands Local Our Falkirk store sees a 20% sales uplift... as its nearest competitor shuts for three weeks. p71 Hotlines The latest new products that suppliers would like you to stock. p86 Under The Counter The Auld Yin fails to see the irony in his incessant moaning about International Drone Day. FEATURES p72 Forecourts The market in Scotland remains buoyant on the back of significant investment. p78 Cigarettes, RYO and Accessories Tobacco may deliver sales and profits, but it’s still a challenging category. p84 Must Stocks As the sunshine stays with us, retailers should keep stocking several key soft drinks lines.

ON THE COVER p10 SLR Rewards In-depth analysis of who-won-what-and-why at the industry’s most rewarding awards.

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JULY 2018 | SLR

News RETAIL VIOLENCE Protection of Workers Bill moves one step closer

June sees summer boost for retailers, says CBI Retail sales grew at the fastest pace since September 2017 in the year to June, according to the CBI’s latest monthly Distributive Trades Survey. The survey of 106 firms also revealed that sales volumes were well above average for the time of year, following three months when they were below seasonal averages. Additionally, the survey reported a jump in growth in the volume of orders placed on suppliers. Elsewhere in the distribution sector, wholesalers reported flat sales volumes in the year to June, breaking 22 months of uninterrupted growth.

Kantar appoints new senior lead to Scotland team Kantar Worldpanel has named Lesley Ann Gray as its new Strategic Insight Director for Scotland. Most recently at Border

Safer stores for staff Bill clears Holyrood hurdle A major step forward towards creating a safer and more secure in-store environment for retail staff has been taken as Daniel Johnson MSP (pictured) has secured the right to introduce his Proposed Protection of Workers Bill to the Scottish Parliament. Johnson, who is the Scottish Labour Party frontbench spokesperson on justice, said he was “delighted” that his proposed member’s bill received sufficient support from fellow MSPs to advance it towards the drafting stage. “Violence and abuse should never be ‘just part of the job’ – and with this bill we can help strengthen protections for workers in Scotland,” he added. The SGF, which has been vocal in its support of the proposed new legislation, also celebrated the news. Chief Executive Pete Cheema commented: “This is the culmination of an intense period of hard work by Daniel and we are fully behind his proposal which represents a once in a generation opportunity to make shops safer for staff, customers and communities.” Urging MSPs of all parties to support the bill, Cheema added: “It is essential that we demonstrate a shared commitment to protecting retailers from abuse and violence at work.”

Once introduced, the bill will be subject to a three-stage scrutiny process which will involve detailed consideration and debate by a designated lead committee and the whole Scottish parliament.

Biscuits as Brand and Innovation Director, Gray joins Kantar with

PAYMENT SERVICES PO snaps up 13,000 more payment outlets

DISCOUNTERS

over 27 years’ experience in the

Post Office expands bill payments service with Payzone purchase

Lidl recruiting to staff five new Scottish stores

Scottish food and drink industry. She has worked in roles across marketing, category management, NPD and in commercial positions for branded, licensed and own-label businesses. In her role at Border Biscuits she focused on brand positioning to promote and strengthen the brand and target new geographies.

BRC warns of non-tariff barriers to EU trade New research from The British Retail Consortium has suggested that increased adminstration costs following a no-deal Brexit could increase the cost of importing food and drink from the EU by up to 29%, even before the effect of any trade tariff is factored in. David Lonsdale, Director of the Scottish Retail Consortium, commented: “Putting consumers first in the Brexit negotiations and securing a lasting frictionfree and tariff-free trade deal with

The Post Office has bought Payzone’s Bill Payments transaction business. The move means the Post Office will acquire an additional network of around 13,000 payment outlets, along with Payzone’s bill payment technology. The acquisition is subject to approval by the Competition and Markets Authority and is expected to be completed later this year. When it does, Payzone will focus on its Card Payments business. Debbie Smith, Post Office Retail Chief Executive, said: “This is an exciting move for the Post Office. Bill payments has always been a core part of our business, allowing customers to pay a wide range of bills, including phone, gas and electricity in their local Post Office.

“We operate in fast-paced, commercial markets and this acquisition will give us the opportunity and improved ability to compete for more, and bigger, bill payments contracts.” Clive Kahn, CEO of Payzone added: “Our outlets will complement and strengthen the Post Office’s existing branch network meaning customers will have more access to a wider range of over-the-counter bill payment services. “For our employees this is also good news, as it places the business at the heart of the Post Office’s strategy for reaching further into local communities. “I’m certain that the Payzone bill payments network will develop and flourish in the Post Office’s capable hands.”

Lidl’s relentless expansion shows no sign of abating, with news that it is recruiting a further 300 staff in Scotland over the next 18 months. Five new stores in Paisley, Dumbarton, Giffnock, East Kilbride and Scotland’s first Lidl ‘metropolitan’ store in Edinburgh will each require up to 40 staff. Extensions to stores in Glasgow, Motherwell, Aberdeen and Ayr will also lead to further recruitment. A further 100 people will be required to staff a new Regional Distribution Centre in Eurocentral. The news comes in the wake of research which revealed the discounters were increasingly poaching top-up shoppers from the convenience channel.

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

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News WHOLESALERS Successor to long-serving Kate Salmon revealed

Wholesale change as Colin Smith takes reins at SWA The Scottish Wholesale Association has appointed Colin Smith as Chief Executive (designate), succeeding Current Executive Director Kate Salmon who is retiring after leading the trade body for 35 years. Smith, whose career in the wholesale sector spans more than 20 years, was Scottish Regional Manager for Bestway’s symbol group Best-one before launching his own business, the multi-awardwinning Pinkie Farm Convenience Store in Musselburgh. He previously worked for Bellevue Cash & Carry in Edinburgh in various marketing roles before moving to Costco Wholesale as Marketing Manager then returning to Bellevue, also as Marketing Manager. He was appointed to the Best-one position following the acquisition of Bellevue by Batley Wholesale in 2010. Julie Dunn, President of the Scottish Wholesale Association, said: “Colin’s wide-ranging experience of the wholesale industry, spanning both foodservice and retail, plus his strengths in marketing, will bring depth and knowledge to our association as we support our members in times of change both

partnership with UK challenger bank Tide that will enable its customers to deposit cash at any of PayPoint’s 29,000 retailers nationwide. The deal gives the digital bank access to a network larger than all banks, post offices and supermarkets combined. Launched in January 2017, Tide is focused exclusively on small businesses. The PayPoint integration means its customers can now add funds to their account without using BACS or Faster Payments.

within the trade and on the political landscape. “Our role is to ensure a healthy, dynamic and relevant trade association. Colin understands the many challenges facing our members and suppliers, and is ideally placed to take forward our work in promoting wholesale as a vibrant industry which offers great career opportunities.” Smith said that an early priority would be to meet members and forge closer relationships with suppliers. “Wholesale provides suppliers with an excellent opportunity to tap into

the strong route to market that our members’ independent retail and foodservice outlets customers offer – I want to get that message across loud and clear and I also want to hear their views so we can tailor our offer to specific sectors of our wholesale membership.” Outgoing Director Kate Salmon will work with Smith over the coming weeks to ensure a smooth handover before scaling back in the autumn to work for the SWA on a consultancy basis. “I am delighted that we have attracted an individual of Colin’s calibre,” she said.

Glasgow retailer banned from running a business

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PayPoint has signed a

directly into their Tide accounts

RETAIL CRIME Retailer-turned-fraudster hit with lengthy disqualification

The Director of a company that ran a Spar store in Barrhead Road, Glasgow has been disqualified from running a company for 11 years for “using fraudulent means to remove funds from the company’s account and to obtain goods on credit”. Naeem Javed’s company, Petal Scotland Ltd (PSL), went into liquidation in 2016. He had been its Director for over 12 years. An investigation by the Government’s Insolvency Service found that before PSL went under, Javed siphoned-off £85,000 he

Digital bank partners with PayPoint for cash deposits

obtained by manufacturing a series of false indemnity claims. The 46-year-old also used the company to get hold of £90,000-worth of Marks & Spencer gift cards on credit, at a time when PSL had no way of clearing its outstanding debts of more than £160,000. He also held back the Insolvency Service investigation by failing to produce PSL’s accounts, a move that also hampered the potential recovery of assets for the benefit of creditors.

Robert Clarke, Head of Company Investigation at the Insolvency Service said: “The Insolvency Service will rigorously pursue company directors who deliberately defraud their stakeholders for their personal gain. Fair treatment of business partners and creditors is essential for business confidence which is, in turn, essential for economic growth. “The substantial period of the undertaking agreed illustrates that Mr Javed has paid the price for his conduct, and cannot now carry on in business other than at his own risk.”

Nisa’s charity launches birthday bonanza giveaway Nisa’s Making a Difference Locally charity has continuied its 10th anniversary celebrations by launching its biggest-ever competition offering prizes of £10,000 each to 10 small charities to help them expand their marketing. Any charity with an annual income of £100,000 or less is eligible to enter. Full details of the competition can be found on the Making a Difference Locally giveaway page.

Is that 1,400 cigarettes in your trousers or are you just pleased to HMRC me? A shop worker who had 1,400 non-duty paid cigarettes hidden in his jogging bottoms has been handed a 346-day prison sentence. Bulging-trousered Kameran Kader, 42, was discovered by Customs and Trading Standards officers when they raided the Kurdistan Shop on Glasgow’s Westmuir Street in 2015. A search of the premises revealed a further 137,160 nonduty paid cigarettes hidden in popcorn boxes. Kader, of Dunphail Drive, Glasgow, admitted the fraudulent evasion of Excise Duty. The unpaid tax on the dodgy cigs amounted to £41,259.62.

JULY 2018 | SLR

News LEGISLATION Scottish Government fires opening salvo in war against junk food

Usdaw seeks Home Secretary meeting to push shopworkers’ protection Shopworkers’ trade union leader John Hannett has welcomed an indication from the Home Secretary that he will look at the protection of shopworkers as part of the Offensive Weapons Bill, which tightens the law on the sale of corrosive substances and knives. During its second reading in the House of Commons Sajid Javid was asked to consider an aggravated offence for attacks on shop staff as part of the Bill. The Home Secretary said: “That is something that we will go away and think a bit further about,” prompting Hannett to chase for a sit-down.

Baxters names new European CEO Baxters Food Group has promoted John McMullen into the role of CEO for its European

Food-to-go promos next in ScotGov’s cross-hairs Measures to restrict promotion of foods high in fat, sugar and salt within food-to-go outlets feature prominently in the Scottish Government’s new Diet and Healthy Weight Delivery Plan, in which pledges to halve the rate of childhood obesity by 2030 and envisions a future where everyone eats well and isn’t overweight. There will be a consultation period in the autumn on the measures, which target the promotion confectionery, sweet biscuits, crisps, savoury snacks, cakes, pastries, puddings, and sugary soft drinks. Views will also be sought on whether to also include ice-creams and dairy desserts in the restrictions. Restrictions would apply to, among other things, multi-buys; displays at checkouts and front of store etc;

purchase rewards; unlimited refills; upselling and promotion of value. The Scottish Government also proposed using the planning system as a means of controlling food outlets near schools. There were also calls for Westminster to make front-of-pack labelling mandatory and clamp down

on advertising junk food before the 9pm watershed. The plan also urged the UK government to extend the soft drinks tax to sugary milk-based drinks and to use the tax system to make healthy food cheaper. There will also be a consultation on restricting the sales of energy drinks to under-16s.

Strategic Business Unit following his appointment as interim CEO

CHARITY Fundraising event hailed as major success

in November 2017.

Barcode Festival a ‘game- Nisa ordering portal wins IT changer’ for GroceryAid award

With 25 years’ experience in the food and drink sector, McMullen brings a wealth of knowledge to the role. He joined Baxters in 2016 as European Technical Director, having previously held senior technical and operational positions with Princes and HJ Heinz.

Fife ‘biscuit queen’ takes charge of pladis factory A 27-year-old Scot has become the youngest-ever person to manage a factory for snacking company pladis. Morven Burden, originally from Fife, has relocated to Romania to manage the company’s production facility in Bucharest, where she leads a 250-strong team. After graduating with an MA (Hons) in Management and Economics from St Andrews University, Burden began her career in biscuit-making at the McVitie’s factory in Carlisle. Known as the “Brandy Snap biscuit queen”, she holds a record for making 2,000 by hand

Over 1,600 industry colleagues came together at GroceryAid’s inaugural Barcode Festival on June 28, raising £250,000 for the charity. A sun-kissed Hawker House in London played host to the event, which featured headline act Kaiser Chiefs on the Skittles main stage supported by Sigma, Greg James and Levi Roots – who also appeared on the Demo stage, as did Aldo Zilli. Steve Barnes, Chief Executive of GroceryAid, hailed the festival as a

crucial step in GroceryAid’s evolution: “We always hoped that Barcode was going to be a game-changer for the charity but the end result has exceeded my expectations, bringing colleagues together in a way I have never seen before. I could not be prouder of our industry for their amazing support and my team for the flawless execution.” The event will return in 2019. For updates visit barcodefestival.co.uk or follow @BarcodeFestival.

RETAIL TECHNOLOGY

An online portal that allows Nisa’s independent retail partners to browse and order thousands of products and services available from local, regional and specialist suppliers has won a national award. The ‘Direct to Store’ solution won the Online Innovation of the Year Award at the Retail Systems Awards. The system lets Nisa partners search and compare an array of product catalogues from multiple ‘Direct to Store’ suppliers in one place, build up an online basket and place orders with different suppliers at the same time. Once partners have placed an order those suppliers will receive a notification and process the order accordingly.

in a single shift. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Brexit

News Extra

NewsExtra STOCK-UP FOR THE SUNSHINE – P84 BREXIT Even before the effect of tariffs, admin costs could send grocery bills soaring

BRC: BREXIT ‘NO DEAL’ COULD PUSH FOOD COSTS UP 29% New research from the British Retail Consortium has made the alarming finding that the cost of food and drink imported from the EU could rise by up to 29% under a ‘no-deal’ Brexit.

The British Retail Consortium (BRC) has produced new research analysing the effect of ‘non-tariff barriers’ on imports of goods, and emphasising the importance of maintaining frictionless trade post-Brexit. Currently, when goods enter the European Union from outside member countries they are subject to checks and controls. There are 405 of these controls in total, with fresh beef facing 22 of these measures, strawberries 28 and pharmaceutical products 44. These are in place to ensure that products pose no risk to human health; that they comply with rules of origin and that correct levels of taxation are levied. As members of the EU customs union and single market the UK is not currently subject to any of these controls. However, if we leave the EU without a deal, that will change. This will lead to a significant increase in administration for most goods and a risk of substantial delays at borders. BRC’s analysis finds that imports of food and beverage products would face an average increase in the cost of importing from the EU of up to 29% from non-tariff barriers alone, under a no deal www.slrmag.co.uk

scenario. Non-food goods would face increases too: up to 7% in the case of clothing and textiles. Helen Dickinson, CEO of the BRC said: “It is imperative that we avoid a no-deal Brexit and have an agreement between the UK & EU that maintains frictionless trade, otherwise the cost of importing everyday items will go up. This will inevitably lead to higher prices for consumers and will add to the cost burden on retailers at a challenging time for the industry.” David Lonsdale, Director of the Scottish Retail Consortium, added: “The outcome of the Brexit negotiations could have a profound impact on the goods that retailers’ import and stock, the products that consumers buy and the prices they pay. Putting consumers first in the Brexit negotiations and securing a lasting friction-free and tariff-free trade deal with the EU is vital. It will ensure consumers continue to have the widest possible choice on shop shelves and will help retailers keep down prices. It will mean ordinary Scottish shoppers aren’t hit with unwanted new costs, at a time when family finances are being stretched due to inflation, weak wage growth and higher taxes.”

Convenience Matters with the SGF On a weekly – if not indeed on a daily – basis we hear of impending bank closures both around Scotland and in our own communities. SGF as the trade association for the Scottish Convenience Store Sector is strongly opposed to bank closures. The current bank closure programme will have a devastating effect on businesses, as some will have to travel for cash banking. This will lead to security issues, lack of insurance cover, and extra man hours in the business to cover the person travelling to bank cash, as well as the additional cost of car parking fees. The problems being caused by bank closures have come at a time when the cumulative cost burden on businesses has been rapidly increasing, for example auto enrolment and the increases in pension contributions earmarked right up to 2020 and wage and rates increases. On top of this most banks have done away with fixed charges and forced all businesses to go down the route of maximum charges. In most cases this is 65p per £100. In Scotland, cash in retail is still king. About 74% is still taken in cash. In essence, the impact on productivity is significant at a time when Scotland’s and the UK’s productivity is weak compared to the rest of Europe. Access to banking is a basic requirement of a functioning economy. Holyrood and Westminster need to step in, if they are serious about growing Scotland’s economy and reverse the closure programme, especially in a time when banks are starting to make record profits again.

JULY 2018 | SLR

Comment

IT’S HARD NOT TO BE INSPIRED EDITORIAL

While I often can be heard complaining about the downsides to the on-the-road judging for the Scottish Local Retailer of the Year Rewards – 5,000 miles in a month, too many nights in a Travel Inn, too many bags of crisps and prepack sandwiches for lunch behind the wheel – there’s no doubt that the upsides far outweigh those downsides. I consider myself exceptionally lucky to be able to spend almost a month every year visiting some of the very best stores in Scotland, one after the other. It’s something I can highly recommend as it’s probably the best way you’ll find out what’s happening in the trade, see some fantastic innovation and commitment and, of course, pick up lots and lots of great ideas that you can use in your own stores. Since we bought Woodlands Local that upside has gotten even bigger. My little red book comes with me on every store visit and I’m not ashamed to say that I’ve pinched great ideas from every single retailer I visited during the judging. Better still, every single one of them was more than happy to share their ideas with me – which is another reason I love this industry. Keith Fernie at David’s Kitchen, for instance, spent over half an hour explaining the intricacies of making all of your own food to go products on-site, even offering names of suppliers and recommendations on which kit to buy. How many other industries can boast that kind of openness and co-operation? This year’s judging was an exceptional experience. Looking back on approaching 20 years of doing the awards, I reckon I haven’t seen a better overall standard than I’ve seen this year. There are some mind-blowing stores out there and there are some retailers doing some utterly outstanding stuff. Scotland’s communities just wouldn’t be the same without these stores at their hearts – and it would be nice if a few more customers realised that and a few more politicians realised it too, and then did something to help this vital industry. It’s crystal clear that local retailers have their customers at heart. Yes, they want to make money. But it’s not the only goal, which is something that can’t honestly be said of a supermarket or discounter. A month of visiting local retailers shows the bond that exists between c-stores and their shoppers and it’s simply inspirational. In fact, it’s hard not to come back from the judging completely buzzing and inspired to go and make our own little store better. It can be disheartening to see such good stores when ours has so far to go, but all we can do is focus on taking those learnings and implementing them in the store. As long as we’re moving forward we have hope. So, let me offer thanks to every retailer who welcomed me and gave me a look under the hood of their business. It was truly an honour and a privilege.

ANTONY BEGLEY, PUBLISHING DIRECTOR

SLR | JULY 2018

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 Robert Aitken 0141 222 5302 | raitken@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 JUNE 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 JUNE 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 JUNE 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.

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Cover Story

SLR Rewards 2018

FROM BROADWAY TO LAS VEGAS! Once again, the SLR Rewards 2018 celebrated the very best of local retailing in Scotland with Edinburgh’s Dennis and Linda Williams carrying off the top award and a trip to Las Vegas! BY ANTONY BEGLEY

Edinburgh retailing couple Dennis and Linda Williams were the stars of the show last month as their Premier Broadway Convenience Store in the Oxgangs area of the capital won the Scottish Local Retailer of the Year Award at the SLR Rewards. The event, held at the Radisson Blu hotel in Glasgow and hosted by TV and radio star Des Clarke, saw the Scottish convenience retail industry gather to celebrate the brightest and best in the business. Scottish Grocers’ Federation President Dennis was also delighted when the Federation was presented with the Special Recognition Award in this, its centenary year. Three other Premier stores were also recognised, taking the symbol group’s haul on the night to five overall, while Nisa- and Spar-affiliated stores picked up four awards apiece with Day Today and Family Shopper also among the winners Read on to find out more detail on exactly why the winners won – it’s your chance to take some great tips to use in your own store!

SLR | JULY 2018

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SLR Rewards 2018

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Cover Story

JULY 2018 | SLR

Cover Story

SLR | JULY 2018

SLR Rewards 2018

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AWARD

WINNERS

And Our Winners are...

Fresh & Chilled Retailer of the Year

Best Refit of the Year

SPAR Penny Petroleum, Jet Kirkmuirhill

SPAR Hillfoot Garage, Bearsden

Beer & Cider Retailer of the Year

Ecigs Retailer of the Year

SPAR Renfrew

SPAR St Georgeâ&#x20AC;&#x2122;s Cross, Maryhill

Congratulations to all the finalists! To join our award-winning retailers, contact Marketing on 01382 512000 www.spar.co.uk @SPARScotland

The prospect of Aldi moving in almost literally next door is something all local retailers dread but Dennis and Linda Williams of Premier Broadway Convenience Store in Edinburgh won the top award this year for showing that, not only does it not mean the end, it can actually mean a fresh, profitable beginning. A great strategy, perfectly executed has meant that, despite the discounter, year on year sales have held steady. REWARD: It’s viva Las Vegas for a trip to NACS! The top award merits the top Reward and that’s why the winner will be jetting off to Las Vegas in October for four days at NACS, the largest convenience store event in the world. With so much to learn from the trip, it should give Dennis and Linda even more ideas for the store next year.

Q With Aldi moving in next door, the store focused on delivering products and solutions that Aldi couldn’t or wouldn’t: food to go, hot drinks, big brands, vaping range, Lottery, locally sourced products - and, of course, great customer service.

SCOTTISH LOCAL RETAILER OF THE YEAR

PROUDLY SPONSORED BY

Q Full new Premier Deli added, offering hot and cold food as well as local butchery and bakery lines. Q New coffee machine added. Q More emphasis on big brands at great value prices. Q Tobacco gantry moved to make way for range of spirits.

“Dennis & Linda have faced a number of challenges over the past year, all of which they have met with determination and a resolve to succeed. They really are an inspiration to other retailers.” STEPHEN DONAGHY, AREA SALES MANAGER WEST SCOTLAND, JTI

Scottish Local Retailer of the Year 2018 Congratulations to Premier Broadway Convenience Store, Edinburgh JTI manufactures well-known cigarette brands such as Kensitas Club, the fastest growing cigarette brand in Scotland¹, Sterling Dual, the UK’s No.1 capsule brand² and Benson & Hedges Blue, the fastest growing cigarette brand in the UK³. We supply other leading tobacco products including Amber Leaf – the No.1 tobacco

brand⁴, Hamlet cigars, Old Holborn, Holborn Yellow and Sterling Rolling. In the Reduced Risk Products category, our successful Logic e-cigarette range features Logic PRO, the No.1 capsule device in the UK⁵ and recently awarded ‘2018 Product of the Year’. JTI’s UK trading company is Gallaher Limited

UK Customer Careline 0800 163 503

jtiadvance.co.uk

jti.com/uk

1. Nielsen MarketTrack over the last 3 months (based on slope calculation) 2. Nielsen Market Track YTD Jan 2018 3. Nielsen Market Track over the last 12 months (based on slope calculation) 4. Nielsen Market Track YTD March 2018 5. Nielsen Scan Track Q1 2018 Unit Sales. Traditional Retail (KMGs, Convenience, Independents & Symbols)

Being a great beer and cider retailer is all about catering for the requirements of modern shoppers – that means a great core range across all key brands and formats, well-presented and chilled, with some extra touches to bring the beer and cider aisle to life and drive sales and profits. Saleem Sadiq’s Spar Renfrew store does it all and more, with a stunning section that offers a huge range in the chiller alongside a big selection of multipacks. REWARD: Dine out with a meal for 10 and VIP tour of WEST Brewery! What better way of celebrating becoming Beer & Cider Retailer of the Year than with a few quality beers at WEST Brewery in Glasgow and a meal for 10. The Reward includes a VIP tour of the brewery which, we are assured, will include lots of chances to sample some of WEST’s outstanding beers.

Q Saleem’s large store allows him to maintain an extensive range of big brands in a number of pack formats and sizes.

PROUDLY SPONSORED BY

Q The vast majority of beers and ciders are chilled for instant consumption – even a wide selection of multipacks.

BEER & CIDER RETAILER OF THE YEAR

Q Great use of floor stacks adds theatre and drives basket spend. Q The store’s consistent commitment to outstanding merchandising standards is evident in this category too. Q Good range of craft products to cash in on latest trends.

“Catering for a modern beer or cider customer means offering a strong core range of big brands plus a section focused on those looking for craft beers and ciders. Spar Renfrew does it all.” PETRA WETZL, MANAGING DIRECTOR, WEST

INDE PEN DENT JUST LIKE YOU

Established in 2006 WEST Brewery is an independent Scottish brewer based in Glasgow. WEST is the only UK brewery to brew all their beers in strict accordance with the German Purity Law of 1516, which prescribes the use of only four basic ingredients in brewing – water, malt, hops, and yeast. No chemicals. No preservatives. No artiﬁcial ﬂavours. Merging centuries of traditional practice with state-of-the-art equipment, the quality, integrity and tradition of WEST beers set them apart from any others available in the UK. For further information on WEST products email info@westbeer.com or call us on 0141 550 0135 (option 8)

www.westbeer.com

GLASWEGIAN HEART. GERMAN HEAD.

Staying on top of the latest trends like healthier options as well as maintaining a fantastic core range on a carefully merchandised fixture is what helped Shabaz Ali pick up the Biscuits Retailer of the Year Reward for his Redding Supermarket store in Falkirk. Shabaz pays particular attention to his shoppers, with the range tailored carefully to meet their demands while his sheer enthusiasm for the category marks him out. REWARD: A weekend for two in Amsterdam! A spectacular trip to Amsterdam awaits Shabaz Ali and guest as the winner of this category. They will fly to the Dutch city and will enjoy a trip to pladis’s factory in Zaandam as well as the chance to explore Amsterdam. The Reward includes flights, hotel and even spending money.

PROUDLY SPONSORED BY

Q The biscuits fixture is exceptional, covering every base and offering products in line with all of the latest category trends.

BISCUITS RETAILER OF THE YEAR

Q Shabaz places a lot of importance on developing strong relationships with suppliers to their mutual benefit. Q The store doubled the size of its fixture in the last year to accommodate a bigger range including more price-marked packs and NPD. Q The store makes extensive and regular use of its Epos data to keep the category efficient and profitable.

“The large biscuit section has doubled in size within the last year to accommodate a bigger range with more price marked products and NPD. Clever use of POS made his fixture really stand out.” ANDY BEGG, TEAM MANAGER FOR THE NORTH CONVENIENCE FIELD SALES TEAM, PLADIS

Lifestyle Express Rutherglen retailer Mukesh Baghra has gone for the ‘wow!’ factor when it comes to confectionery, with everything from a stunning main fixture to a range of secondary siting positions as well as some ideas of his own like tailor-made hampers for special occasions. Jampacked with energy and ideas, Mukesh’s store takes confectionery to the next level and that’s reflected in his sales. REWARD: Fulfil the dream of a lifetime with a £500 Virgin voucher! Mukesh will be able to make one of his dreams come true as Confectionery Retailer of the Year thanks to a fantastic £500 Virgin Experience voucher that will let him choose from a massive selection of adventures, from the thrilling to the downright terrifying!

PROUDLY SPONSORED BY

Q It’s hard to define but you know it when you see it: Mukesh’s confectionery offer definitely has the ‘wow’ factor.

CONFECTIONERY RETAILER OF THE YEAR

Q The store has large, comprehensive fixtures for core range, hanging bags and gum as well as dedicated promo ends and gifting sections, all for confectionery. Q Mukesh offers a tailored hamper service to his shoppers where he will hand-prepare confectionery hampers for any special occasion. Q Confectionery is the store’s best-selling category and that has been achieved through effort and creativity.

“It’s so encouraging to see a retailer so committed to the confectionery category. His passion and enthusiasm are contagious and there’s evidence of amazing creativity throughout the store.” FRASER MCMURDO, CONVENIENCE CUSTOMER DEVELOPMENT MANAGER, MARS WRIGLEY

As befitting the Scottish Local Retailer of the Year winners, Dennis and Linda Williams also picked up the Crisps & Snacks Retailer of the Year Reward for their relentless determination to keep every category moving forward. Crisps and snacks was one of the first categories to be re-assessed when the couple knew Aldi was coming and the results speak for themselves: margins up 30% and sales up 3% (after rising 11% the year before). REWARD: Take to the air in a microlight! This Reward isn’t for the faint hearted! The winner – will it be Dennis or will it be Linda? – will be heading up, up and away in a tiny microlight to see Scotand from an entirely new perspective. The flight will even offer the chance to take over the controls!

Q Precise and tight core range covers all popular flavours and formats but avoids range proliferation. All grab bags delisted. Only £1 PMP branded packs retained.

CRISPS & SNACKS RETAILER OF THE YEAR

PROUDLY SPONSORED BY

Q Good use of Booker own label products gives shoppers a value option and drives multibuys. Q Fixture carefully sited to maximise impulse sales. Q Strong secondary siting and promo ends helps drive sales of larger format packs and crosscategory purchases. Q Ruthless use of Epos ensures only fast-moving lines stocked.

“What impresses most about this store’s crisps and snacks fixture is the dedication to using Epos rigorously to ensure only strong selling lines make it onto the shelves. No space fillers here!” KAREN PEATTIE, SLR EDITORIAL CONTRIBUTOR

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 04620683

SAVE

This year we’ve seen a 60% increase in the number of people facing a crisis.

grocery people

We’re proud to help grocery people deal with some of the worst things life can throw at us. But without your support and donations our work would not be possible. To get involved call 01252 875925 or visit www.groceryaid.org.uk. Or if you need help just call 08088 021 122.

SAVE grocery people

SAVE

grocery people

GROCERY PEOPLE WITH NOWHERE TO TURN. WE’RE NOT BUYING IT.

grocery people

With sales of vaping products having levelled out in local retailing outlets, it’s time to re-energise the category by enhancing the range and ensuring staff are fully knowledgeable and able to assist shoppers who need support and advice – and that’s exactly what Iqbal Sadiq in Spar St George’s Cross Maryhill has done. The store offers products for everyone from the novice to the pro and backs that up with well-trained staff and customer leaflets.

REWARD: Make it happen with a Red Letter Day! Iqbal will have the choice of countless memorable experiences to choose from to celebrate winning the E-cigs Retailer of the Year Reward as he picks up a superb Red Letter Day.

Q Iqbal’s store offers shoppers an extensive selection of vaping products and accessories from a number of leading brands.

PROUDLY SPONSORED BY

Q The store’s range provides something for every shopper, from the newly converted to the more seasoned vaper.

E-CIGS RETAILER OF THE YEAR

Q The staff are well-trained and able to offer advice and support in what can be a confusing category for many shoppers. Q Strong pricing and an array of information materials means shoppers can buy vaping products in confidence from the store.

“The store had a good selection of vape products, displayed well, to suit the customer’s needs. The staff were educated in the products and had a good understanding of how each range works and what it offers the consumer.” DANIEL HARWOOD, AREA BUSINESS MANAGER TEAM 42, IMPERIAL TOBACCO UK&I

Congratulations to Spar St Georgeâ&#x20AC;&#x2122;s Cross, Maryhill

Ecigs Retailer of the Year Award 2018

David’s Kitchen was the first convenience brand in Scotland to build its entire offer around food to go, and the two stores have been providing outstanding food to go offers to their customers for years. Keith Fernie runs the original David’s Kitchen in Glenrothes, delivering a mouth-watering array of hot and cold food and drinks, all prepared fresh on the premises. Even the ready meals are cooked fresh each day and vacuum-sealed in the store. REWARD: Come dine with me, wth a posh dinner for four! What better way to celebrate spending your life serving fantastic, freshly prepared food to your customers than with a meal for four at a posh restaurant. Keith and three guests will have the night off serving food to enjoy one of the finest dining experiences to be had in Scotland.

Q Probably the most comprehensive range of hot and cold food to go of any c-store in Scotland.

PROUDLY SPONSORED BY

Q The vast majority of the range is made fresh on the premises every day.

FOOD TO GO RETAILER OF THE YEAR

Q Own-brand ready meals, soups, coleslaw and more, all prepared by hand and vacuumsealed in-store. Q Dedicated seating area to allow customers to enjoy their purchases in comfort. Q Great use of locally sourced products and extremely high quality presentation throughout.

“David’s Kitchen Glenrothes simply takes food to go to another level with a massive range of hot and cold food, all prepared on the premises and presented beautifully in the store.” NIKKI ACUNUNEI, KEY ACCOUNT MANAGER, KEPAK

After picking up the ultimate Scottish Local Retailer of the Year Reward last year, Mahmood Saleem of Jet Ardeer Services in Stevenston has not only carried on where he left off, he’s even managed to take his already breath-taking store up another gear with the addition of yet more services including an external washing machine solution. The forecourt remains miles ahead of the game and the commitment to excellence is inspirational. REWARD: Get in the fast line with a Ferrari F430 Coupe track day! The Forecourt Retailer of the Year deserves a little work-related fun in his life, so tearing around a race track in the legendary Ferrari F430 Coupe should do the trick. Mahmood will get the chance to push the car to its limits as well as enjoying a passenger ride with a pro driver.

Q A stunning forecourt visible from a distance that uses big brands like Nisa, Costa and Subway to give passing motorists countless reasons to stop. Q The high standards set at the store’s opening have been maintained and even improved in the last 12 months.

FORECOURT RETAILER OF THE YEAR

Q New exterior washing machine adds yet another reason for shoppers to visit – twice! Q Excellent convenience range in-store means the forecourt is used as often for shopping as it is for fuel. Q Superb standards throughout.

“When it first opened, Mahmood’s forecourt was a world-beater – and it’s so encouraging to see that standards have been maintained and even improved over the last 12 months.” ANTONY BEGLEY, PUBLISHER, SLR

TO ALL THE

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One of the secrets of getting fresh and chilled right in-store is to give it 100% and that’s exactly what Penny Petroleum Jet has done in Kirkmuirhill. Fresh produce presented in rustic style baskets is the first thing shoppers see when they cross the door, while a huge chilled section offers something for every customer – whatever shopping mission they are on. The entire category is beautifully presented and merchandised throughout. REWARD: Get away from it all with an indulgent two-night escape! Keeping a store looking as good as Penny Petroleum Jet does takes a lot of time and effort, so what better way of relaxing than an indulgent two-night break for two. That’s exactly what the store has picked up for winning this category and it’s a well deserved Reward.

Q The store puts fresh and chilled at the heart of its offer with an eye-catching display at the front door.

PROUDLY SPONSORED BY

FRESH & CHILLED RETAILER OF THE YEAR

Q Very extensive chilled range caters for all requirements, from ready meals to cooking from scratch. Q Attractive rustic-style presentation of fresh produce both on the shop floor display and in the chiller encourages participation. Q Regular checks throughout the day ensure freshness of stock. Q Good adjacencies ensure big basket spends as shoppers easily find all they need.

“Whether you’re looking for a snack for now or something for tonight’s dinner, whether you want something quick and easy or you want to cook from scratch, you’ll find it all in this store. Fantastic range, beautifully presented.” GARY ROUTLEDGE, NATIONAL ACCOUNT MANAGER, QUORN

Excelling in National Lottery sales requires both getting the basics right every day and adding something special on top. Kirkcaldy Premier Linktown Local retailer Faraz Iqbal does just that, delivering consistently excellent ‘Site, Stock, Sell’ standards as well as running creative, innovative Lottery-based social media campaigns to drive customer engagement and promoting National Lottery jackpot events to customers in-store. REWARD: European Gymnastics Championship Tickets! As winner of the Lottery Retailer of the Year category, Faraz picks up four tickets to the European Gymnastics Championships in Glasgow on the 5th of August. Faraz can look forward to what promises to be an inspiring day for him and three lucky guests.

Q Faraz starts by getting the 10 points featured in ‘Site, Stock, Sell’ programme right every day of the year.

PROUDLY SPONSORED BY

LOTTERY RETAILER OF THE YEAR

Q The store regularly and actively uses its Facebook page to engage with hundreds of consumers by highlighting big jackpots and by creative ideas such as ‘like & share’ posts that allow customers to join ‘syndicates’ that give them the chance to cash in on a winning ticket. Q A core element of the store’s strategy is communication and upselling at the till, particularly around big jackpots. “Just ask everyone if they want a ticket!” he says.

“As well as having brilliant ‘Site, Stock, Sell’ standards, Faraz has also engaged with customers on social media with innovative National Lottery posts and by promoting jackpot events to customers in-store at till points to increase sales.” GREG DEACON, NATIONAL SALES MANAGER, LOTTERY

New SITE, STOCK, SELL in-store standards programme and AllStars rewards scheme Use in-store standards to build sales Stores who stick to the current programme saw sales rise by 3.5%*. SITE, STOCK, SELL could mean ÂŁ4,200* more sales each year. Visit www.nationallotteryallstars.com for more information and to claim your rewards. AllStar retailers can earn a potential ÂŁ140 a year.

INVESTING IN YOU * Camelot Insights 2018

Ian Smith’s Premier Turriff store is proof of what can be achieved in the news and magazines category, with a clear plan and a commitment to delivering higher standards than the competition. Around 34% of the store’s turnover comes from the category and with a Home News Delivery service to almost 400 customers a day, it’s no surprise. The in-store offer is also exceptional with more than 850 titles, including many from the local area. REWARD: A night in the News Scotland VIP Box at The Hydro! This money-can’t-buy prize should be a hit for Ian and guests as he wins a night in News Scotland’s plush VIP Box at The SSE Hydro in Glasgow to see a performance of his choice. The Reward includes accommodation and is sure to be a memorable evening.

Q Outstanding core range of over 850 titles covering national, local and specialist interest magazines and newspapers.

PROUDLY SPONSORED BY

Q Almost 400 Home News Delivery customers a day covering almost 2,400 sales a week.

NEWSTRADE RETAILER OF THE YEAR

Q Eye-catching backlit magazine fixture based around leading titles but also tailored extensively for local, rural tastes. Q Proactive management of the category. Q Good siting of fixture next to coffee and food to go station to drive impulse purchases.

“Ian’s store is a fine example to all retailers in Scotland showing how strong management of the category and a good Home News Delivery solution can make newstrade an integral profit centre for the store.” CHRIS HUGHES, HEAD OF RETAIL MARKETING, NEWS UK

HAPPIER CUSTOMERS. HAPPIER TILLS. IT’S WIN-WIN.

LET YOUR CUSTOMERS KNOW THAT EVERY SUN SAVERS CODE COULD WIN THEM £15K Sun Savers registration/raffle opt-in required plus Sun Savers code. Monthly Raffle commence 00:01 each calendar month and end 23:59 on last day of the month. UK residents (excluding Northern Ireland, Isle of Man and the Channel Islands) aged 18 or over only.

Diane Greenough who runs David’s Kitchen in Falkirk has unlocked the key to optimised soft drinks sales by ticking evey best practice box: great siting in-store, excellent core range, immaculate merchandising standards, good space-to-sales onshelf allocation, a broad range of pack formats and extensive use of points of interruption around the store to drive impulse sales and increase spend on link sales in other categories. REWARD: An ‘unforgettable experience’! To tie in with Coca-Cola’s current on-pack promo offering consumers the chance to win an ‘unforgettable experience’, Diane will also be receiving an unforgettable experience. She will have the choice of a range of fantastic options and will be reporting back on how she got on.

Q Strong core range of products featuring key brands and formats and avoiding range proliferation.

PROUDLY SPONSORED BY

Q Excellent merchandising standards.

SOFT DRINKS RETAILER OF THE YEAR

Q Space-to-sales ratio ensures great avilability with fastest selling brands enjoying more on-shelf space. Q Extensive use of multi-siting, often in conjuntion with related products such as crisps and confectionery to drive link sales. Q Prominent use of points of interruption to drive up basket spend and of drinks sales.

“The store had a good core range, clear pricing and space to sales for the faster selling SKUs ensuring availability. Key brands and packs were given points of interruption around the store ensuring link sales opportunities.” DAVID DICK, MANAGER – FIELD SALES, CCEP

GIVE YOUR SALES A TASTY TWIST.

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xxx Doonfoot Day Today retailer Ross MacPherson has been in his store for less than a year but has already made spirits a USP, stocking a huge range that brings customers from miles away and creating lasting loyalty and high basket spends into the bargain. The store generates around 10% of its entire sales from the category and stocks a massive selection of spirits and premium and ultra-premium mixers. REWARD: Ebitem as voloribus Come flyeawith volorme! recae evelisi berfere restiatusam num simet pratis As his dus Reward sitio.for Nonsequi claimingdithe te Spirits vene et,Retailer ipit liquia of the veroYear coreptincium title, Ross will volupienti be occumtonos taking theeate skies verum on a evenimenet high-flying aerial eost elit, adventure nam consed as he enjoys quoditiaonesend unique ignamus flying experience, et aut hariandae. includingDa anse opportunity estis eliquaerum to the take lite cor the si controls a apideste himself nitatumqui and see Scotland aboremqui like he’s doluptatiis never seen derchitio it before! tem nonsed maximusda

Q Ross xxx stocks nearly 140 gins from all over the globe to really capitalise on the massive interest in gin at the moment.

SPIRITSXXX RETAILER RETAILER OF OF THE YEAR THE YEAR

PROUDLY SPONSORED BY

Q The store also carries a very large range of whiskies, vodkas, rums and specialist spirits and liqueurs to entice shoppers from far and wide to visit. Q Ross focuses on providing gifting solutions that generate big spends and loyalty. Q A range of premium and ultra-premium mixers means shoppers buying premium spirits can enjoy them with high-quality mixers too.

“In a highly-competitive market, retailers need a way of setting their store apart “xxx” to give shoppers reasons to choose their store over others. Ross has made spirits his USP and has given it 110%.” ANTONY BEGLEY, PUBLISHER, SLR

ANTONY BEGLEY, PUBLISHER, SLR

Congratulations!

Winners!

to All of the

Spirits Retailer of the Year - Doonfoot Day-Today

Team of the Year - Day-Today Supermarket, Bourtreehill

at this yearâ&#x20AC;&#x2122;s

scottish LocaL retaiLer awards 2018

become part oF something speciaL

caLL

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Retail ContR ont olleR olle

07791 615 221 mylocaldaytoday

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As former winners of this category Asif and Abada Akhtar of Premier Smeaton Stores in Kirkcaldy are shining stars when it comes to community engagement. The level of commitment that they give to being the very centre of most activity in the Smeaton area is simply astonishing and nothing is too much trouble when it comes to supporting community events, helping customers in need and developing strong bonds across the area. REWARD: An Apple iPad complete with smartcover and keyboard! Engaging with the local community and helping organise the many events and initiatives they are involved with should be a little bit easier for Asif and Abada thanks to their Reward for winning this category: a shiny new Apple iPad complete with smart keyboard and cover.

PROUDLY SPONSORED BY

Q Partnership with local high school to start breakfast club. Q Provided funds for school uniforms for children in need.

COMMUNITY INVOLVEMENT RETAILER OF THE YEAR

Q Raised over £2,000 for a customer with mouth cancer by organising a fun day. Q Established a new charity themsleves and raised over £5,000 in a second event. Q Paid for students’ hair and make up for Prom Night at the local high schools Department of Additional Support unit. Q Asif did a bungee jump for his 40th birthday in aid of prostate cancer charity.

“Every retailer shortlisted in this category could have been a winner because their commitment to their local communities is inspirational but Asif and Abada put community involvement at the very top of their list of priorities.” SAMANTHA TALBOT, BUSINESS DEVELOPMENT MANAGER SCOTLAND IMPULSE – DIRECT, AG BARR

WINNER OF COMMUNITY INVOLVEMENT RETAILER OF THE YEAR

FROM THE NO.1 SCOTTISH GROCERY BRAND

PROUD TO SPONSOR THE SLR REWARDS 2018

Despite being from a retailing family, this Costcutter Dundee Road store in Forfar is Shahbaz Majeed’s first foray into owning his own premises and the results are hugely impressive. The attention to detail is outstanding, the quality of fixtures and fittings used is of the highest order and the shopfitting standards are fantastic. The store delivers everything a modern convenience shopper is looking for and more. REWARD: A full year’s worth of online training for the whole team! Your people are your greatest asset and it’s impossible to create a brilliant new business without a brilliant team. To help store manager Andy Mitchell develop his team, the store picks up a year’s worth of training from Bolt Learning for every single team member across five different modules.

Q No detail was considered to small or insignificant when building this store; how many stores do you know with a Dyson hand dryer in the staff toilets?

PROUDLY SPONSORED BY

NEW STORE OF THE YEAR

Q No expense was spared, with the highest-quality materials and equipment used – from refrigeration and shelving to flooring and fittings. Q All modern shopping missions catered for including food to go, extensive chilled and a huge walk-in beer cave. Q Spacious and well lit, the store is easy to navigate around and a pleasure to shop with excellent merchandising.

“Costcutter Dundee Road is a fine example of a modern convenience store created from the ground up to deliver everything a great store should be with exceptional attention to detail and total commitment to the highest standards.” TOM FENDER, MANAGING DIRECTOR, BOLT LEARNING

ongratulations on your success!

Costcutter Forfar: Best New Store

Costcutter Falkirk (Redding Supermarket): Biscuit Retailer of the Year

Are you looking for a partner that will work with you to grow your business to its full potential?

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This store has earned iconic status in Bearsden over many years of service. However, a full refit of Spar Hillfoot by owner Ian Gillespie, as part of joining Spar, has transformed a busy but tired store into an outstanding modern convenience store that caters carefully for the needs of its affluent catchment area. The store is unrecognisable from its former days and the quality of the refit ensures that Ian is well-prepared for the future REWARD: A full year’s worth of online training for the whole team! It’s all about teamwork in Spar Hillfoot, as it is in every store, so a year’s worth of online training from Bolt Learning for every member of the team across five different modules will help them grow together and continue to develop and improve in the future.

Q Full-scale refit has converted a much-loved but tired store into a future-proofed modern c-store.

PROUDLY SPONSORED BY

Q Modern feel but retaining farmer’s market warmth and homeliness.

REFIT OF THE YEAR

Q Vastly improved fresh, chilled and food to go sections created. Q New frozen aisle added to merchandise very high-end frozen ready meals range, perfect for the local market. Q Spacious design allows for siting on traditionally popular seasonal and special ranges including flowers and gifting.

“It’s hard to believe that this is the same store that used to stand on this site, such is the magnitude of the change. This is a refit par excellence that has taken a hugely popular but tired store into a thoroughly modern convenience store.” TOM FENDER, DIRECTOR, BOLT LEARNING

High-impact online training for Convenience store staff

Meet The new eLearning solution for the convenience industry

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Local retailers mean more to the communities they serve than just being places to buy products. They act as the hub of the community and they take their responsibilities to their shoppers extremely seriously – and no one more so than Mo Razzaq of Family Shopper Blantyre. Mo, a local Councillor, doesn’t shirk taking tough decisions if he believes its ultimately to the benefit of his customers, even if they sometimes don’t agree! REWARD: Investing in the team with online! The team at Mo Razzaq’s Family Shopper Blantyre will also be benefitting from a year’s worth of online training from Bolt Learning across five different modules. With a growing store and a growing team, the Reward should be a great help to Mo.

Q Mo’s commitment to his customers is unbounded: his actions take him way beyond the statutory requirements of a store and involve education and engagement with the entire community.

PROUDLY SPONSORED BY

RESPONSIBLE RETAILER OF THE YEAR

Q Digital and print POS reminds shoppers of the legal requirements as well as offering advice on healthy drinking limits, substance abuse of various kinds and more. Q Digital fingerprinting technology helps with ID verification. Q Countless fundraising events for needy local causes.

“Family Shopper Blantyre stood out because of their real involvement with their customers and community, demonstrating what an essential part of the community the store is and the sense of responsibility it cherishes. “ MICHAEL MCDOUGALL, SOLICITOR – LICENSING (SCOTLAND), TLT LLP

No store in Scotland can operate optimally without the co-operation of a great team, and that’s exactly what Imran Ali has built at his Day Today Supermarket in Bourtreehill. This is a store bringing great service to the local community and replacing retail services which were lost with the closure of local businesses – and none of this could have been achieved without the passionate, enthusiastic work of Imran’s team. REWARD: Switch on with a funky iPad! Communications are vital for the team of the year to get the best out of their co-operation and teamwork, so this shiny new iPad should help ensure that everyone stays in touch and drives up efficiency in the store.

Q The team worked tirelessly after the former Co-op store reopened as a Day Today after an eight-month layoff, providing a range of much needed services for the local community.

PROUDLY SPONSORED BY

TEAM OF THE YEAR

Q Imran’s and his team’s goal – which they most certainly achieved – was to “create a unique shopping atmosphere unlike any other store”. Q Staff routinely work extra shifts or hours, create in-store theatre and competitions without having to be asked and even travel great distances to pick up new products so that the store can be the first in the area to stock them.

“The staff had a genuine enthusiasm for working there, were all local, knew their customers by name, and it was obvious that the customers enjoyed shopping there.” GAVIN ANDERSON, GENERAL SALES MANAGER, REPUBLIC TECHNOLOGIES (UK)

Mo Razzaq of Family Shopper Blantyre has stolen a march on his competition by implementing two fantastic new initiatives that many have considered but few have actually managed to bring to reality: a one-hour delivery to customers in the local area and a next-generation loyalty and customer engagement system. Both initiatives have helped boost sales across the store as well as generate and enhance customer loyalty. REWARD: Take control with an Apple HomePod! For a category that often involves technology, the Reward here is the latest in hi-tech gadgetry, an Apple HomePod. The latest bit of cool tech from Cupertino will help Mo sort out all kinds of things with a quick voice command, as well as play his favourite tunes with extra-high-quality audio.

Q Mo offers a home delivery service within one hour to customers in his local area for a delivery fee of £2.

PROUDLY SPONSORED BY

THINKSMART INNOVATION AWARD

Q The system is built around a dedicated app (powered by Vago E-Commerce) that syncs in real time with his Epos system to ensure all products are always correctly priced. Q The store operates a Privilege Card (powered by Darius for Retail) which is used to provide bespoke communciations and offers for individual customers while allowing for enhanced analytics of customer engagement with the store, allowing Mo to continually improve his customer offer.

“Lots of retailers have great, innovative ideas but the best successes come from executing these ideas brilliantly in the real world. Mo has done just that with a superb home delivery service and a truly innovative loyalty club.” STEVE O’NEILL, GROUP MARKETING DIRECTOR, PAYPOINT

ThinkSmart Innovation Award winners 2018

Congratulations to Mo & Roxy Razzaq of Family Shopper Blantyre

Get more out of your business with PayPoint One Visit paypoint.com or talk to your local Territory Development Manager

This year marks a very important milestone in the life of the Scottish Grocers’ Federation: its 100th year in existence. The Federation has been representing the Scottish local retailing sector faithfully and passionately for a century and under the current Chief Executive Pete Cheema OBE and his management team, the SGF is going from strength to strength, ensuring that the opinions of local retailers are heard in Holyrood and Westminster.

SPECIAL RECOGNITION AWARD

PROUDLY SPONSORED BY

There are very few organisations or companies who can trace their histories back through one hundred years of unbroken service – but the Scottish Grocers’ Federation joins that prestigious and rarefied group this year. Established in 1918, the SGF has been instrumental in its century of service in giving small retailers across Scotland a voice and in allowing them to speak as one on matters that affect the sector. Never has speaking as one been more important than it is today with competition from the supermarkets and discounters tougher than ever. It is vital that our voices are heard in both Holyrood and Westminster, and under the leadership of Chief Executive Pete Cheema OBE, our voices have never been louder. The last few years have seen the SGF revitalised and re-energised, leaving the Federation arguably better than ever prepared to ensure that local retailers are fully engaged in every discussion that affects the sector, as they must be if we are to secure the future of this vital £5.2bn industry.

“It is an honour to be able present the SGF with this richly-deserved award for 100 years of loyally serving the Scottish local retailing community. It is vital that we have a body prepared to fight for our sector in the corridors of power.” FAISAL SATTAR, DIRECTOR, MHOUSE SOLUTIONS

Helping you to make an extra 3% Gross Profit Ease of use

Simple to use touch screen till software

Backoffice admin software

Cigarette Gantry integration

Indepth reporting and analysis

Touch screen handheld device to control the shop from the shopfloor

Supplier Data links with all major Wholesalers

Credit Card integration

Weekly health check reports to guide you to improve your sales and margin.

Access to background database with over 100,000 products

Benefits of MPos ✓ Built around a retailer, not a computer user ✓ Simple to use till, powerful admin tools ✓ Built from retailers perspective ✓ Reduces labour by downloading products, price changes, invoices and promotions

✓ Reduces labour by allowing one click order generation and one click invoice downloads - easily shave off 10 hours of work per store

✓ Increased control on stock; all stock deliveries downloaded and all stock adjustments emailed to the owner; NO stock is unaccounted for

✓ Emails store performance to the user with real actionable data once a week rather than stats heavy reports that overwhelm the user

✓ Based in Scotland with excellent support and training program

✓ Easy to use Hand Held terminal to control the store from shop floor ✓ Integration with Credit Card terminals, Zapper, Cigarette Gantry, Loyalty Schemes and more ✓ Developed and supported by people that know the retail trade

So How much Could our System make for you? We can demonstrate a 3% uplift in Gross Profit in using our system.

£5,000 £10,000 £15,000 £20,000 £25,000

£7,800 Current Weekly Turnover Extra profit per annum

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Even a Single Lane system can more than pay for itself in the first 4 months!

MHouse, 349 Shields Road, Motherwell, ML1 2LD

Tel: 0800 242 5360 email sales@mhousesolutions.com

News

Products

Carte Noire Instant returns Carte Noire instant coffee is making a comeback. The range

ProductNews

will launch with two variants, Carte Noire Classique Instant and Carte Noire Decafeine Instant, available across five SKUs. The Carte Noire Classique 100g Jar, Carte Noire Classique Refill 144g Pouch, Carte Noire Classique 200g Jar and Carte Noire Decafeine 100g Jar all roll out in convenience over the summer. A 100g price-marked Carte Noire Classique Jar, exclusive to convenience, is set to launch in the autumn.

Britvic adds sugar tax status to outers Britvic has introduced Soft Drinks Industry Levy messaging on shrink-wrapped pallets of its products. The move follows consultation with customers, retailers and trade bodies. It sees ‘levy paid’ or ‘levy exempt’ messaging clearly displayed on shrink-wrapped pallets across single serve and 2-ltr carbonated

FORECOURTS IN FOCUS – P72 CHOCOLATE CONFECTIONERY Invent your own Dairy Milk bar

Cadbury goes ‘madbury’ with new competition Cadbury is inviting the nation to “go madbury for Cadbury”, by giving consumers the chance to create their very own chocolate bar, which could then become the newest addition to the Cadbury Dairy Milk range. Chocolate fans are invited to enter their dream bar at cadburyinventor.com where they can pick from a wide range of ingredients which will be combined with Dairy Milk. Using ingredients like caramel, soft brownie, popping candy, chilli, orange, mustard and cashews, over 90,000 flavour combinations can be created. Once up to three ingredients are chosen, entrants will

name their bar and explain a bit about what inspired their creation before hitting ‘send’. The campaign will reach 78% of all UK adults through TV, website, YouTube and social media activity. After the competition closes on July 31 three finalists will be chosen to work with chocolate experts at Cadbury’s home in Bournville where they will experiment with their creations and make their bar a reality. All three bars will go on sale for around 12 weeks next year, when the overall winner will be decided by public vote.

products.

LRS gives away £60k cash in retailer competition Lucozade Ribena Suntory is giving away £5,000 cash from now until the end of September to 12 lucky retailers as part of a new competition rewarding the independent channel. To be in with a chance of winning, retailers should purchase promotional price-marked cases from their local depot and enter the details printed on the shrinkwrap at www.lrsuntory.com/win.

Robinsons chalks up 83 Wimbledons in a row Robinsons is back at Wimbledon as the official soft drink sponsor for the 83rd consecutive year. A £1m marketing campaign, includes limited-edition merchandise and packs, sampling activity, social media support, pop-up café and reusable drinks bottles. Robinsons Squash’d packs have also been given a makeover with

ENERGY BARS

Nature Valley gears up for its biggest British Summer of Tennis Nature Valley is set for its biggest Summer of British Tennis with a £2m marketing campaign across shopper, digital, print, social and PR that also sees the brand make a return to TV screens. The Official Snack Bar of the Lawn Tennis Association (LTA) is on TV over the summer with a new 20-second ad, championing the brand’s Protein platform. The ad follows several adventurous individuals running and hiking, while highlighting the taste of the bar and its 10g protein content. British women’s #1 Johanna Konta (pictured) renews her partnership with Nature Valley as brand ambassador for a second year and will be joined by Leon Smith, the Davis Cup-winning captain of Great Britain and Head of Men’s Tennis. Both will back the LTA’s Great British Tennis Weekend supported by Nature Valley. To further bolster its support, Nature Valley Protein will be sampled to tennis fans, with more than 50,000 bars given away during the summer.

SOFT DRINKS

Pick your own gig with Ribena Ribena has unveiled a new on-pack competition – ‘Pick Your Own Gig’ – which gives consumers the chance to win up to £200 of Ticketmaster vouchers and enables up to 10,001 people to win a prize every day. The £1.5m activity is supported by outdoor, in-store and digital media as well as an extensive sampling campaign. The promo is live until August 31, across Ribena Blackcurrant, Blackcurrant Light and Strawberry standard and price-marked 500ml SKUs.

a limited-edition Wimbledon pack design, which is available now. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | JULY 2018

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Off-Trade

News

Off-TradeNews WHISKY Camelot extension promises

Whyte & Mackay Fringe sponsorship deal promises a ‘dram good laugh’ Whyte & Mackay has been named as Underbelly’s first-ever Lead Sponsors of Comedy at this year’s Edinburgh Festival Fringe. This follows the brand’s sponsorship in March of the Whyte & Mackay Glasgow International Comedy Festival, which saw top comedians tell their best “lion walks into a bar” jokes – a nod to the brand’s iconic lion branding. As Lead Sponsors of Comedy at Underbelly, Whyte & Mackay will have a pop-up bar at Bistro Square throughout August, offering laugh-seekers its new cocktail serve, the Whyte & Mackay

Ball: a smooth and refreshing concoction, made using Whyte & Mackay, bitters, tonic and a wedge of orange. Ruairi Perry, Head of Brand at

Whyte & Mackay, said: “While we’re serious about our smooth blended Scotch whisky, we also love a good laugh here at Whyte & Mackay.

“Underbelly is perfect fit for us as it’s one of the most iconic comedy venues at the world’s biggest comedy festival. As Underbelly’s first Lead Sponsors of Comedy, we’ve got exciting plans in store for this year’s festival, so stay tuned for some dram funny announcements coming soon.” Ed Bartlam and Charlie Wood, Directors of Underbelly, added: “It’s neat to have Whyte & Mackay, such an iconic brand in Scotland and around the world, on board for this year’s Fringe as our first-ever Lead Sponsor of Comedy.”

RTDs Watchdog sides with manufacturer over packaging complaint

Hoola Hooch gripe rejected The Portman Group’s Independent Complaints Panel has rejected a complaint about the packaging of Hoola Hooch. A member of the public thought that the name and design of the product appealed to under-18s and that it was not clear from the 440ml can’s packaging that the drink was alcoholic. The Panel said that there were four alcoholic descriptors in the primary field of vision (alcohol by volume, ‘alcoholic’, ‘hooch’ and ‘brew’) and therefore concluded that the product packaging went above the minimal compliance level in communicating the alcoholic nature of the product and did not uphold the complaint under Code rule 3.1.

www.slrmag.co.uk

As to whether the product had a particular appeal to under-18s referencing the can’s design and name, the Panel noted the colourful patterned design and referenced previous decisions where it was clear that bright colours alone were not necessarily problematic. In this case, there were no design elements of the packaging which they considered would have a particular appeal to under-18s. The Panel also took on board the company’s assertion that the name ‘Hoola’ was intended to reflect the tropical flavour of the drink. Therefore, the Panel found that the product did not have a particular appeal to under-18s and wasn’t in breach of Code rule 3.2(h).

RTDs

Gordon’s launches ultra low alcohol premixes Gordon’s has introduced two ultra-low-alcohol gin & tonic-flavoured sparkling variants, which are less than 0.5% ABV and 68 calories per serve. Gordon’s Ultra Low Alcohol G&T with a Hint of Lime and Gordon’s Ultra Low Alcohol G&T with a Hint of Grapefruit are both available now in 250ml bottles (RSP £1.49). Multipacks of four have an RSP of £4.99. The launch is supported via social media. Shopper plans with scalable mechanics are also available. Gordon’s recommends that the drinks are merchandised in a dedicated low/no alcohol bay within the licensed area, or alongside alcoholic RTDs.

JULY 2018 | SLR

*IRI Marketplace, Value sales since launch, GB Coverage

News

Newstrade

Telegraph pre-tax profits halved The Telegraph’s pre-tax profits

News& Magazines

have almost halved to £13.7m as revenues fell by £17.5m last year to £285.7m. The paper said the results were the conseqeunce of what it termed “evolving consumer habits” as it has also seen significant growth in its digital subscription revenue which was up around 30% yearon-year. The paper says it now has more than 2.5m registered

TOBACCO CATEGORY KEEPS ON DELIVERING – P68 CHARITY Scottish Sun hooks up with Stagecoach boss for charity drive

SCOTTISH SUN HITS THE ROAD FOR MARY’S MEALS The Scottish Sun has teamed up with Sir Brian Souter and Stagecoach to convert a double-decker bus into a mobile charity shop.

customers, although it is not clear how many are premium paying subscriptions. Since November 2016, readers have been able to register to access one premium article a week free of charge. The group is aiming to reach 3m registered customers by the end of this year with an ultimate aim of reaching 10m. Print advertising and circulation revenues fell by 9% year-on-year while revenue from related services like travel commerce saw growth of 59% year-on-year. The Telegraph invested some £10m in a new strategic vision “putting a renewed focus on the

The Scottish Sun has launched a charity project with Sir Brian Souter and his Stagecoach business to convert a doubledecker bus into a mobile charity shop. The bus raised money touring Scotland for two good causes – Mary’s Meals and Scotland’s Hospices Together. Sir Brian donated the bus – nicknamed Bussy McBusface – and had his team of engineers convert the downstairs deck into an old-fashioned mobile shop. He also donated a driver. The paper’s staff helped stock the shop with goodies from their contacts and clients. The fundraising tour visited various

towns and cities in Scotland including Ayr, Stevenston, Glasgow, Kirkcaldy and Perth. Alan Muir, editor of The Scottish Sun, said: “Sir Brian Souter and Stagecoach have been hugely generous in giving us the double-decker, so that we can go

on tour with our charity shop. We want to head out across Scotland with our prizes, bargains and fun. Sir Brian Souter said: “Mary’s Meals and Scotland’s Hospices Together do wonderful work and deserve any support that we can give them.”

role of quality journalism at the heart of The Telegraph” during the last year. Nick Hugh, Telegraph Media Group Chief Executive, said: “In January, we set out our vision to reach 3m registered customers by the end of 2018 and we have already passed 2.5m. “Our digital revenues will continue to get stronger and stronger and as we continue to invest in and focus on quality journalism, we anticipate this momentum continuing.” “We are already seeing some of these investments pay off, such as in digital subscriptions, which has seen revenue grow 30% year-on-year, and travel commerce, where revenue has grown 59% on a like-for-like basis year-on-year. “This provides strong confidence that we continue to

DISTRIBUTION

Menzies secures Reach deal Menzies has secured a primary distribution deal to collect all daily and regional weekly newspapers printed by news publisher Reach and deliver them to all wholesale distribution locations across the entire UK. The deal, which will see Menzies deliver both Reachowned titles and those printed on behalf of third parties, is the first of its kind in the UK. Greg Michael, Managing Director of Menzies Distribution, said: “Our strategic focus is on working in real partnership with our Newstrade customers to develop innovative solutions that enhance and protect a sustainable route to market for their product. This significant deal does just that, streamlining the supply chain for publishers and retailers. It allows us to maximise our expertise and resources in providing UK-wide time-critical logistics and demonstrates our commitment to add value to the supply chain at every step of the journey.” Menzies will start providing the new service from September 2018.

RETAILER MARGINS

Sunday Mail terms cut slammed The Sunday Mail has increased its cover price by 10p to £1.90 resulting in a margin cut for retailers of 0.6% from 21% to 20.4%. Reacting to the announcement, NFRN Scotland President Rory O’Brien said: “As Scottish President of the NFRN I’m very disappointed that Reach has chosen to cut percentage terms, effectively punishing newsagents that have been supporting the title through hard times.” Commenting on the cut to retailer terms, NFRN National President Mike Mitchelson said: “This announcement cuts our members percentage trading terms and highlights that Reach are being inconsistent and disingenuous in how they do business. “This action can only damage independent retailers and the communities that they serve and questions about trust and fair trading relationships are already being raised. The NFRN calls for a rethink of this decision requesting that the same percentage remuneration of 21% is put into place for our members.”

make good progress against our core strategic priorities.” KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Inside Business

Research Digest

SCOTLAND’S TODDLERS EATING ‘A MILLION SWEETS A WEEK’ Food Standards Scotland has responsed to analysis undertaken by Cancer Research UK which shows Scotland’s toddlers are eating more than a million sweets a week. Anne Milne, Senior Dietary Advisor at Food Standards Scotland said: “There is no single solution to our nation’s long-standing problems with obesity and this research really brings home the scale of the challenge we face in Scotland. Around a fifth of the calories and fat we eat and almost half of the sugar comes from discretionary foods, including confectionery. With almost a third of children already overweight or obese, a range of measures is urgently required to make significant change. “We know that families can find it difficult to make healthy choices, particularly when a lot of foods on promotion are those which are higher in fat, salt or sugar. This research reinforces the need for our recommendations and proposals which were included in the Scottish Government’s diet and obesity consultation, including restricting the promotion of unhealthy products and encouraging shoppers to buy healthier foods.”

SCOTLAND OFFERS ‘HIGHEST GRADUATE SALARIES’ With hundreds of thousands of students graduating this year and retailers always on the look out for talented management staff, European jobsite Adzuna analysed over 1.2 million live job ads and found that Scotland is ranked as best region for graduate pay with an average salary of £24,927: £1,889 more than the national average graduate salary across the UK (£23,038). Perhaps surprisingly, the smaller regions of Scotland are outplaying their city giants when it comes to pay: North Lanarkshire’s average graduate salary sits at £28,256, South Lanarkshire at £27,823 and Dundee at £26,248 in comparison to Edinburgh (£25,017) and Glasgow (£23,849). The study also revealed that whilst Scotland is the most competitive region for earning money, there are fewer job opportunities than in other regions. Andrew Hunter, Co-founder at Adzuna, said: “Graduates should look beyond London and embrace a new appetite for adventure when it comes to work location. That said, the traditional migration from North to South needs to be broadened. Flexibility is emerging as a key requirement.” 60

SLR | JULY 2018

CUSTOMER SERVICE BACK IN FASHION IN TOUGH TIMES

A new retail survey finds customer satisfaction is on the rise, reflecting the growing importance of putting the shopper first.

new survey from management system provider Signavio has found that customer satisfaction levels have risen across all industry sectors, with retail continuing to be the strongest performing of all sectors with a score of 82.1. The data comes from the July 2018 Customer Satisfaction Index. British retailers have faced significant challenges recently, as the UK’s high street saw over 6,000 shop closures in the last year alone, a trend that shows no signs of slowing down as customers increasingly opt to shop online. To combat dwindling high street sales and compete against online rivals, high street retailers are under pressure to deliver a single brand experience to customers across multiple channels. In the age of the customer, with renewed emphasis on the customer journey, retailers need to align their processes to make sure they can deliver according to changing customer expectations, warn business process management experts Signavio. Mark Holenstein, COO for Signavio, commeted: “Being customer-centric is so much more than good in-store service. It requires a focused and insightful consumer experience, from the first customer point of contact through the purchasing process and beyond. We already know consumers appreciate a coherent, cross-channel

customer journey that integrates online and offline offers. But what does this actually look like for the brands themselves when it comes to delivering a seamless service, and how can it actually be achieved? Attention needs to be drawn to the processes involved and how these can connect the dots across the customer journey. “For example, a Click & Collect service only adds value if the ordered goods can be picked up promptly and the customers do not need additional routes to the store. This only works if the corresponding internal processes overlap and are aligned to a coherent customer journey. Retailers need to shift away from an approach aimed at cutting costs, and instead look towards cutting down waste and inefficiency. “In the age of same day delivery, back-end processes including packaging, invoicing and arranging delivery need to be not only quick, but also seamlessly aligned with each other to ensure a quick turn-around matching customer demands. “To understand customer needs and the ideal customer journey, it is important to have a holistic view of the entire organisation and operations. It is not until the company processes are synchronised behind the scenes and aligned with the customer experience that an excellent service at every contact point of the customer journey is actually conceivable.”

SHOP PRICES FALL ONCE MORE

hop prices fell by 0.5% in June, a significant easing in deflation from May’s decline of 1.1%, according to the BRC–Nielsen Shop Price Index for July 2018. This is the 62nd month of Shop Prices deflation. Food inflation was steady at 1.2% in June, the same level as in May, and above April’s rate of 1.0%. Fresh Food inflation slowed marginally to 0.8% in June from 0.9% in May. Ambient Food inflation inched down to

1.6% in June from 1.7% in May. Mike Watkins, Head of Retailer and Business Insight at Nielsen, commented: “Food inflation across retail stores is holding at the same level as last month, which is good news for shoppers and helpful to retailers as the continuation of summer weather is supporting sales of seasonal fresh foods. And with promotions in place around the World Cup this will be encouraging shoppers to spend.” www.slrmag.co.uk

Research Digest

SEND IRRELEVANT INFORMATION TO YOUR SHOPPERS AT YOUR PERIL As more and more retailers employ active multi-channel customer engagement strategies, the danger of sending irrelevant information to shoppers has been highlighted in a new survey.

n today’s multi-channel retail environment, retailers are stepping on each other’s toes to offer the flashiest deals, rewards programmes and bonus perks, with the goal of capturing longterm consumer attention and turning oneoff buyers into repeat, loyal customers, says ecommerce firm Fresh Relevance. Yet, in this abundance of choice, it proves challenging to define what makes the modern shopper keep coming back for more. In its 2018 Loyalty Forecast, Fresh Relevance identified the four pieces of the loyalty puzzle, breaking down the touchpoints that create repeat customers. The Forecast was based on a survey of over 1,000 consumers by third party research firm YouGov. 1. Convenience Rules With an oversaturation of online and in-store options, any slight inconvenience can prompt a shopper to turn to a competitor. Retailers would be remiss not to prioritise optimising their online presence, as nearly half (46%) of respondents state that a frustrating online experience hurts their opinion of a retailer. More than a third (38%) are unlikely to purchase from a retailer if their mobile site doesn’t function well. 2. The Age of the Experience Store Despite the growing prevalence of ecommerce, physical stores are crucial to a satisfactory customer experience. Investing in experiential retail is particularly beneficial www.slrmag.co.uk

for retailers targeting millennials, as more than one in five (22%) would be more likely to purchase from a retailer that offered a unique experience in relation to their offerings. 3. Ease of Services One way of attracting loyal customers is as easy as simplifying services like shopping and returns. Yet, emerging forms of expedited check-out and delivery aren’t a major priority for shoppers yet. Just one in six (17%) said scan & go checkout (a la Amazon Go) is a critical option. However, more than one in four (26%) with children under 18 consider this service important. Additionally, just 9% place an emphasis on drone delivery. 4. Targeted Communications To ensure consumers are happy with the content and frequency of marketing communications, retailers should consider abandoning large scale untargeted email marketing strategies: over one in four (28%) are more likely to be loyal to a store that sends messages that are tailored to them. However, calling consumers by their first names isn’t an effective personalisation strategy: 35% of consumers don’t find it important. Two in five consumers (41%) would consider not shopping with a retailer that regularly emailed them irrelevant information while 25% want to be sent product recommendations based on items they’ve already viewed or purchased.

Inside Business

37% OF PEOPLE THINK SCOTLAND WILL BE CASHLESS Online research from credit information provider Equifax has revealed 37% of people living in Scotland believe the UK will be a cashless society within the next 10 years. New figures show that debit card payments have overtaken cash use for the first time; a total of 13.2 billion debit card payments were made last year, a rise of 14% on the previous year. However, the research shows that while the use of cash is declining, it still has its fans. In the survey, conducted with Gorkana, respondents in Scotland said coins are their top payment choice for vending machines (67%), parking meters (62%), charity donations (57%), and buses (61%). Whilst there clearly is a preference to use cash for some things, there has been a shift towards using less cash over the last couple of years. 52% of those living in Scotland use cash less than they did three years ago. And 44% of people in Scotland think shops, cafes or market stalls that only accept cash are inconvenient, highlighting the shift from cash to digital payments. The findings also reveal that although the use of digital payments via contactless cards and online transactions is growing rapidly, some people are still wary about security. Some 28% of respondents in Scotland don’t feel confident that payments via websites or contactless cards are secure, and 24% think it’s difficult to track money spent using digital methods. Lisa Hardstaff, consumer credit information expert at Equifax, said: “Whilst using smart technology for payments is quick, easy and convenient for most people, our research does highlight that consumers are concerned they can lose track of how much they have spent. For most of us keeping track of small amounts may not seem a concern, however small amounts can add up, especially if you are on a tight budget. “As for the confidence in security of using smart technology, it’s more important than ever that consumers look after their personal information and payment devices, which now include smartphones and wearable tech, as well as credit and debit cards. Consumers should also keep an eye on their bank account and their credit information to watch for any unexpected changes.”

JULY 2018 | SLR

Inside Business

SWA Conference Review

Bridging the gap The recent SWA Conference in Crieff saw retailers, wholesalers and suppliers come together to work on ‘bridging the gap’ as the industry faces ever tougher challenges.

Dave Jones, Regional Director, Booker Wholesale

Shadow Cabinet Secretary for Finance, Murdo Fraser MSP

Stephen Glancey, Group CEO, C&C Brands

Stuart Hyslop, MD Booker Group (Catering & Small Business)

Norman Weir, Manager Field Sales, CCEP

SLR | JULY 2018

SLR Publisher Antony Begley hosts one of several panel sessions

he Scottish Wholesale Association must be steadfast in supporting its members in times of change – that was just one of the key messages from President Julie Dunn at the trade body’s recent annual conference. “Change is inevitable and when it’s made to impact positively on the health of the nation, or tackling the issues round the poverty gap or improving our environment, it is a great thing and something we must embrace,” said Dunn, Operations Director at Blantyre-based foodservice and licensed wholesaler, Dunns Food and Drinks. “But I think it is the rate of change which can at times seem overwhelming and the fact that often the advice given or the steps required are ill thought out,” she continued. “This is where the Association must be steadfast in supporting our members. It is our job to help our members ensure that they march pace for pace to the rate of change. But we need the members – wholesalers and associate suppliers – to engage right back.” Dunn also spoke about the SWA’s collaborative approach, working with suppliers, partners and other trade associations and organisations to ensure a louder voice for the wholesale industry on a number of pertinent issues. “Our role is to ensure a healthy, dynamic and relevant trade

association,” she said. “We have partnerships with legal firm TLT on licensing issues, 121 HR Solutions on all things employmentrelated and Caledonia Public affairs continues to assist us in navigating the corridors of Holyrood. All our partners’ advice is free to all members. “We continue to collaborate closely with the Federation of Wholesale Distributors (FWD) and the Scottish Grocers’ Federation on those matters which impact on our members and their customers,” she continued, citing minimum unit pricing as a prime example of a collaborative approach. Dunn said: “Our work on the deposit return scheme continues, with Zero Waste Scotland representatives visiting depots to gain understanding of our concerns and requirements, plus our ongoing attendance at their seminars and consultations.” Other groups the SWA has worked with in the last year include Scotland Food & Drink, the Scottish Tourism Alliance and Women in Wholesale. “But it is the work we’re doing in training which remains at the forefront of our agenda,” Dunn continued, suggesting that by investing in the individual and bringing out their strengths you will strengthen your business. “A strong business leads to a strong economy – healthy and wealthy communities. www.slrmag.co.uk

SWA Conference Review

“Wholesale is big business – we are the route to market for Scotland’s food and drinks industry and its associated products – so we need to attract, train and retain talent.” Dunn said that wholesale should be “the destination not the stopover on the way to brand central”, pointing out the SWA’s work in developing links between education and industry. “Once we get young people through our doors we must have the training infrastructure in place to keep them,” she said. “That work is ongoing and quite challenging but moving forward.” Recent training sessions have been “varied and packed”, co-ordinated by 121 HR Solutions and funded by the SWA or supplier members. Subjects covered have included GDPR, selling skills and effective management skills courses. “I urge members to take advantage of this extremely cost-effective training and ask suppliers to consider opening their training to us,” Dunn said. She went on to describe the SWA’s muchlauded Mentoring Programme as “one of our greatest achievements” but urged more people to come forward and participate as both mentors and mentees. Stuart Harrison, a Senior Buyer at JW Filshill, was one of the first intake of mentees on the Mentoring Programme and spoke about his experience. “Some would say that mentoring never ends and I would completely agree with that,” he said. “We just end up at a different stage of the mentee/mentor cycle. But the single most important piece of a successful mentoring partnership is trust.” Harrison, whose mentor was former AB InBev executive Scott MacDonald, who now works for Brewgooder, said that being completely open and honest about his strengths and weaknesses was the key to opening up the long-term benefits of the process, both professionally and personally. “Four years on from my first mentoring session I am really getting the benefits of my experience as a mentee and I’m now in a position to pass on what I learned, and the process which enabled me to learn.” He said that Filshill MD Simon Hannah had told him to go into the programme with an open mind. “He also told me to take as much time out of the office as I needed, and to ask lots of questions,” said Harrison. “Confidentiality from everyone involved is key for a successful mentor/mentee partnership,” he continued. “I’ve matured as an individual, I have confidence in my own ability and the business has encouraged and supported me through this journey. They encourage me to innovate, build the right strategies and give me a flexible role to do what I think is best for the business. “I’ve been given additional categories to add www.slrmag.co.uk

to my ever-expanding collection, and my team has doubled in numbers. It is with my team that I feel I’m in a great position to give back in terms of my experience and to take on an active leadership role.” The SWA’s outgoing Executive Director Kate Salmon, who retires in the autumn, highlighted the benefits of membership of the trade association: “We’re evolving, the industry is evolving, and the role of a strong and healthy trade association has never been more important. I see the SWA as being the conduit for bridging the gap between our members, suppliers and other stakeholders – government, policymakers and decisionmakers. “We’ve spent a lot of time over the last year speaking to some of these key influencers and the question we’re often asked is: What is wholesale? Outside the sector we are misunderstood and I don’t blame people for that – they can relate to the retail industry more easily because they are consumers themselves. “So when people talk about the food industry it’s the multiple retailers that tend to be foremost in their thoughts, or restaurants. But do they consider how the food and drink they want and need get to those outlets? No. “It’s one of the challenges we will continue to face but we’re working hard to get the message across that Scotland’s food and drink industry needs a strong wholesale sector to keep the wheels turning.” She pointed to the SWA’s diverse membership covering single-depot, familyowned businesses as well as national wholesale groups operating in the retail, foodservice and licensed sectors. “But what brings us all together is Scotland,” said Salmon. “We have our own legal system and our own government and parliament. We’re trailblazers – the first to ban smoking in public places, for example, and the first to introduce minimum unit pricing. “The Scottish Government was the first to commit to a deposit return scheme and the SWA is heavily involved in discussions around its implementation. What I’m getting at is this: Scotland is unique. We share many challenges and priorities with our colleagues the FWD south of the Border but we have many that are unique to us here. “But we work together. We collaborate. With trade associations. With suppliers. With stakeholders. That’s something we will continue to do. And we are happy to speak to you about any issues you have.” Salmon referred to the free Employment and Licensing Helplines for members and also the ongoing training and mentoring programmes as key benefits that are there to be taken advantage of.

Inside Business

SWA President Julie Dunn and SWA Executive Director Kate Salmon with Shadow Cabinet Secretary for Finance, Murdo Fraser MSP

SWA President Julie Dunn

Kurt Hart, Head of Customer Sales at CalMac Ferries

JW Filshill Senior Buyer Stuart Harrison

Cobbs Group Founder Willie Cameron.

Jonathan Kemp, Commercial Director at AG Barr

JULY 2018 | SLR

Inside Business

2 Minutes | Jens Christiansen, Head of Marketing & Public Affairs, STG UK

Jens Christiansen New research reveals over half of all retailers don’t offer the guidance that tobacco shoppers are looking for, something STG’s Jens Christiansen believes must be resolved quickly – with cigars offering a way to capitalise on demand for lower prices. SO, 50% OF RETAILERS ARE MISSING SALES?

FACTFILE Jens Christiansen is Head of Marketing & Public Affairs at Scandinavian Tobacco Group UK, the worldleading cigar and pipe tobacco manufacturer responsible for the no.1 cigar brand in the UK, Café Crème. Originally from Denmark, Jens joined STG in early 2011 and has been based in the UK since 2015. Jens has over 10 years’ experience working with major FMCG brands, both nationally and internationally, including L’Oreal, Heinz, Tabasco, Barilla, Disaronno and Lavazza.

They are indeed! New research from Scandinavian Tobacco Group UK has shown 51% of convenience store retailers aren’t offering customers the all-important guidance they need on which tobacco products to purchase, representing a huge missed opportunity.

with perceived value for money a close second (47%). Stocking cigars allows retailers to directly respond to both of these findings, with well-known brands like Café Crème offering reassurance of quality, as well as smaller pack sizes and even individually wrapped cigars offering low out of pocket spend.

THERE IS A GROWTH OPPORTUNITY, THEN?

ARE CIGARETTE SMOKERS PREPARED TO SWITCH?

Yes, but it’s not quite as simple as it might look at first. The research of 1,000 consumers indicates that while nearly half (46%) of retailers are offering customers advice on what products to purchase, less than 2% of these shoppers feel that their recommendation would ultimately influence their tobacco purchasing decision.

It might surprise some retailers to learn that they will! The figures reveal that of those smokers who haven’t tried cigars before, 25% would be encouraged to buy them because of taste and a 20% would buy them if they thought they were cheaper. Cigars are exempt from pack size restrictions making them often the cheapest option.

SO IT’S NOT JUST ABOUT TALKING TO SHOPPERS, IT’S ABOUT OFFERING USEFUL ADVICE?

HOW DO RETAILERS TAKE ADVANTAGE?

Exactly. This disconnect presents an opportunity for retailers to further educate themselves on the category so they can provide informed advice to their customers.

EDUCATION, EDUCATION, EDUCATION? Precisely. Since the the display ban and standardised packaging, shoppers are increasingly looking to retailers for advice on what to buy, especially if their favourite brand is out of stock. By taking time to really understand the category, retailers will be able to recommend a suitable alternative, and even a different segment within tobacco, to avoid missing out on sales.

AND YOU BELIEVE CIGARS OFFER A GREAT WAY OF DOING JUST THAT? It’s clear cigars offer retailers the opportunity to capitalise on the high profit margins that the sub-category offers.

TELL US MORE… The findings highlighted that price, in terms of out of pocket spend, has the greatest influence on tobacco purchasing decisions, coming out top of the poll (61%), 64

SLR | JULY 2018

We would encourage retailers to stock a range of topsellers and big-name brands from each cigar segment, like the no.1 cigar brand in the UK, Café Crème Blue which accounts for 22% of all cigar sales, Henri Wintermans Half Corona which leads the Medium/Large segment or Moments Blue, which priced at just £3.83 for a pack of 10, is dominating the Value for Money Miniatures segment.

AND START OFFERING MORE ADVICE TO SHOPPERS LOOKING FOR IT? It’s great to see so many retailers communicating with their customers but it seems like there is still some work to be done to ensure they are offering the right support to deliver strong sales. We have launched our ‘Lock, Stock and Sell’ campaign to help educate retailers on the current trends in the market, and equip them with the tools they need to succeed with cigars.

LOCK, STOCK AND SELL? Lock in the insights revealed through our research; stock the right products for their customer base; sell to those customers by offering them exactly the advice they’re looking for. www.slrmag.co.uk

Customer Data | #ThinkSmart2

Inside Business

# T hin kSm ar t 2 Can data help convenience win back the hearts and minds of customers? BY THOMAS HALL, ANALYTICS PROGRAMME DIRECTOR, IRI

he convenience channel has transformed itself in recent years. We’ve seen something of a revolution on the high street, on forecourts and in our corner shops. According to IGD, convenience is the third-fastest growing grocery channel with nine in 10 shoppers claiming to have visited a convenience store in the last month. Smaller-format stores have always had a certain appeal, especially among older shoppers who value not just the convenience and locality, but also a sense of community and the personal customer experience. This is important within a grocery sector where more people are choosing to shop across multiple channels and spend more time shopping online. But maintaining that personal touch is becoming harder as a nation of shopkeepers are having to spend more time focusing on the minutiae of running a store, and often being pulled in many different directions. At a basic level, this means ensuring the right stock is in the right place at the right time. But then factor in the hours spent changing prices throughout the store – for some this still means getting up at 4am to change pricing labels – and also making sure promotional campaigns are executed at the right time. All of this is just the day job for most store owners and doesn’t take into account the time spent on getting to grips with changing technology, staffing and employment issues – and much more. Twenty years ago it was these local stores that knew their customers better than anyone else, addressing customers by name, spending a few minutes to talk about their day and making sure they had their favourite items in stock. Perhaps this all sounds a bit ‘Open All Hours’ but the sentiment is that customers like to feel they are important and valued. With successful customer loyalty schemes rolled out across most of the major multiples, the big supermarkets now know their customers better and can target them more accurately with promotions and offers that suit their shopping and lifestyle choices. However, most staff in the

bigger formats do not know their customers by name or vice versa, and this is where convenience can hope to win back hearts and minds. By using the data available to stores and analysing it more effectively, this will help free up time for shopkeepers to look after their customers. Time-intensive activities like managing price changes for example can be automated using data analytics linked directly to digital shelf edge labels. It also allows storeowners to look at where else they can add value to customers’ shopping trips by analysing what they buy and when. Food to go is a great example of where local stores can look to grow their business. A report by IRI last year showed that food to go is one of the fastest growing categories in convenience in the UK, worth £2.3bn. As the market continues to grow and convenience stores see how food on the go has the potential to bring time-poor shoppers instore, they can experiment with special offers, promotions and meals deals. It’s also a huge opportunity for independent retailers to better exploit their sales data and work closely with wholesale and buying group partners to identify a broader range of options – whether that’s food to go or other categories – to capitalise on changing customer habits. It is also becoming much easier for smaller stores to build in new technologies to help them become more competitive, and to work with technology partners designed specifically with convenience in mind. Look at companies like Zapper, for example, that allows shopkeepers to build their own loyalty program at a limited cost, or SnappyShopper – who set up a home delivery services for stores in a simple and cost-effective way. The lifeblood of a local store is the customer relationship – understanding who they are as individuals, what they like to buy (and when) and, most important, making sure they keep coming back. If our convenience channel – unique to the UK as “a nation of shopkeepers” – is lost, we lose the essence of the local shop.

Thomas Hall is Analytics Programme Director at IRI Worldwide and was a speaker at #ThinkSmart2, SLR’s unique data and tech conference for the local retailing trade earlier this year. www.slrmag.co.uk

JULY 2018 | SLR

WOODLANDSlocal

Inside Business

SLR | JULY 2018

Woodlands Local | Monthly Update

20% INCREASE IN SALES – BUT THERE’S A CATCH

The last couple of weeks at Woodlands have been phenomenal with sales increases of over 20% – but much of that is down to our nearest competitor closing for a refit. BY ANTONY BEGLEY

e knew it was too good to be true. While we’ve been working exceptionally hard across the store, bringing in an entire new range of fresh, chilled and frozen from Nisa, upping our game in food to go, extending our vaping range, remerchandising half a dozen categories and more – we were still a little puzzled that sales shot up literally overnight a couple of weeks ago. Our weekly sales increases are around 20% on average, which is fantastic news. We were congratulating ourselves on the success of all of our initiatives and thanking the heavens for great weather and the World Cup but we were always sceptical – and it didn’t take long for us to find out why the uplifts were so instantaneous: the nearest c-store to us has closed for three weeks for a refit. It’s a strange feeling because the excitement we felt at growing our sales so much has been tempered by the real reason behind the increases and now we can only focus on trying our best to, firstly, make it a fantastic few weeks and,

secondly, to try to retain as many of those new faces as possible. In some ways it’s almost worse to have been given a little glimpse of huge success like this, only to know that most of it is likely to ebb away again soon – but three exceptional weeks will have to do, and it’s certainly not harming the business.

CHILLING OUT Our Nisa adventure has gotten off to a good start, albeit with a few hitches. The first hitch was ordering way too much ice cream and frozen dessert lines for the space we have – which created a frantic few hours in the shop clearing our spare freezers to make room for the overstock. Thankfully, the ice creams are selling like hot cakes so we should be back on an even keel soon. The chilled range has also started arriving and we’re hard on Facebook and in-store to let everyone know about the new range.

RE-LAYS This month will see us implement Barr’s Soft Drinks radical new planogram and we’ll also be implementing a new planogram from pladis that will hopefully help drive up sales too.

STAFFING ISSUES CONTINUE While we’ve got a pretty settled team now we’re still running into problems. One member of the team had severe tooth ache which turned out to require two wisdom teeth being extracted so we lost her for almost two weeks while a new start didn’t last the distance. While he was a great worker he couldn’t fit into the team. The search begins again… www.slrmag.co.uk

Soft Drinks Remerchandising | Woodlands Local

Inside Business

RADICAL APPROACH TO

SOFT DRINKS Woodlands Local is set to be one of the first stores in Scotland to fully implement Barr Soft Drinks’ innovative new soft drinks planogram – and here’s what it will look like...

he recent extended period of hot weather has reinforced once more just how important soft drinks are to local retailers in Scotland. Sales are through the roof across the country and at Woodlands we are now averaging a sales uplift of almost 20% over the last couple of months, and long may it continue. But there’s always more to do to keep squeezing yet more profit out of this vital category, which is why we have agreed to work with Barr Soft Drinks to trial its fairly radical new approach to laying out and merchandising the fixture. Barr’s has taken the Epos data from Woodlands and merged it with their own data sets to produce what we believe is a striking new planogram, laid out according to what Barr’s is calling ‘consumer need states’. These are as follows: Q Healthy Refreshment – Water and waterplus products perform an important, functional role. Q Tasty Hydration – Low calorie products with the health benefits of water and the great taste of a carbonate. Q Everyday Enjoyment – The backbone of the fixture needs a good range of great-tasting choices. Q Adult Social – Indulgent treats and options for those that avoid alcohol. Q Connecting Cultures – Vibrant section to tap into growing demand for exotic flavours. Q On The Go – Nearly a third of purchases is an energy drink, so this section must offer the right range of products and flavour choices. www.slrmag.co.uk

THESE NEED STATES HAVE BEEN DERIVED FROM RESEARCH INTO THE THREE KEY DRIVERS THAT BARR’S BELIEVES WILL BE MAJOR CONTRIBUTORS TO CATEGORY GROWTH IN CONVENIENCE RETAILING: Q Health & Wellbeing Q Taste & Fun Q Lifestyle & Culture These three drivers reflect changing consumer lifestyles, influences and needs in relation to buying and consuming soft drinks. And here’s what the new planogram will look like:

>>> CHECK OUT THE NEXT ISSUE OF SLR TO SEE THE PLANOGRAM TURNED INTO REALITY IN WOODLANDS.

JULY 2018 | SLR

Inside Business

Woodlands Local | Biscuits Rework

IT’S TIME FOR BETTER BISCUITS

WOODLANDSlocal

As part of our re-lay of the entire store, we are now working with biscuits giants pladis to implement their guide to Better Biscuits in the store using a simple five step process.

3 DRAW SHOPPERS TO THE FIXTURE Q Keep brands together on fixture to create blocks Q Keep similar biscuits types together Q Use branded POS to draw new people to the fixture

4 MAKE PRICES EASY TO SEE

SLR | JULY 2018

iscuits has always been an important category to us at Woodlands, not least because the store sits across the road from Falkirk Community Hospital. To help us step the category up a gear, we’ve started working with biscuits giants pladis to implement their Better Biscuits strategy in the store.

BETTER BISCUITS INVOLVES FIVE SIMPLE STEPS: But before we get to all of that, the first thing is to implement the tailored planogram in-store, and here’s how it looks below. We’ll update next month to let you see how we got on implementing it.

1 MAKE BISCUITS IMPOSSIBLE TO MISS Q Locate biscuits in high footfall areas Q Put them next to complementary categories such as tea and coffee Q Add kit solutions to make category stand out Q Highlight new products on fixture

Q Show you offer good value by making prices visible on shelf Q Use price marked packs where possible

5 OPTIMISE PROMOS AND EVENTS Q Make biscuits promos visible away from the main fixture Q 1 in 5 biscuits sold in convenience are to eat straight away – don’t forget biscuits snack bars Q People eat more biscuits at Christmas – stock up on larger format packs around then

2 STOCK THE BEST SELLING LINES Q pladis planograms are based on the best sellers in the market and are tailored regionally, with a number of Scotland-specific planograms Q Give more space to best sellers to help shoppers find them easily

www.slrmag.co.uk

Extra Minis Launch | Woodlands Local

Inside Business

PUTTING THE FUN BACK INTO GUM! As part of our partnership with candy and gum experts Mars Wrigley, we held a customer trial day last month to let some of our regulars try new Extra Minis Handyboxes for the first time.

“I like that the s a rule, shoppers love a bit of wee mini pellets NPD, especially when it’s from mean you can just keep huge brands like Extra from Mars adding them until you get Wrigley. To celebrate the launch of the right amount. They’re the new Extra Minis Handyboxes, a bit more ﬂexible than we decided to have a bit of fun by running the bigger pellets.” “I a trials day in the store to let our customers buy Extra get their teeth into the new products for the normally anyway first time. but these make a nice change. If you just The new product delivers fun, smaller chew one or two they pellets in a portable format which allow freshen your breath consumers to ‘choose their chew’ with as just right.” many (or as few!) pellets as they like. Available in best-selling flavours Peppermint and Spearmint, the product comes in a 48-piece handybox format at an RSP of £1 RRP. The recently launched Starburst Gum will also join the handybox line up – although we haven’t managed to get our hands on any of those yet. Almost half of UK shoppers buy gum so it’s a highly important and hugely impulsive category. Worth over £130m [Nielsen, Sep 2017], Extra Peppermint and Spearmint flavour variants are the top two performing singles in the confectionery category and “I the launch of Extra Minis aims to create new actually think I’ll eat them one at occasions to enjoy these bestselling products a time! You get just the in smaller, fun-sized pellet forms. right amount of ﬂavour Advertising-wise, the Extra brand will be on but without having to TV for 28 weeks this year, as well as featuring chew so much. I love in a new digital media campaign. them!” Claire Domoney, Extra Marketing Manager at Mars Wrigley, says: “We recognise that gum covers a number of moments – whether it’s to freshen breath or simply for enjoyment. With the new 48 piece handybox format of Extra Minis, we hope to help “For £1 it’s establish a new opportunity of enjoyment for a pretty good younger generations: fun smaller pellets in deal. They’ll last a few days and they our bestselling Peppermint and Spearmint taste great.” flavours.” But what did our customers think? www.slrmag.co.uk

“They’re great because the ﬂavour lasts and if you want a wee boost you can just stick another one in.” JULY 2018 | SLR

Product News & Media Watch M&M’s Crunchy Caramel Mars Wrigley Confectionery

Butterkist Toffee Grab Bag KP Snacks

This new M&M’s limited edition is available in three different sizes: Pouch (RSP £2.09), Treat Bag (RSP £1.19) and Singles (RSP 66p). The launch is supported by a digitalfirst campaign and influencer push across Instagram and Facebook, reaching over five million people across the UK. Mars Wrigley said the new variant felt like a “perfect fit” for the brand.

Butterkist has launched a new 60g grab bag of its most popular flavour, to tap into the growth of the food to go sector. Butterkist Toffee Grab Bag – the brand’s first single-serve format – is available now with an RSP of 89p. The brand is supported by a £1.5m media investment throughout 2018.

MEDIAwatch

Hotlines



Nut Nut’s Nut is back KP’s ‘The Nut Nut’s Nut’ campaign is back on TV from July 5 to August 6. The 30-secondlong advert is part of a £2m campaign which encompasses social, digital video-ondemand, and out-of-home activity. It shares the message that KP Nuts are “perfect for summer sharing moments, from BBQs to a balmy night in on the sofa”.

Bulmers brings us best of British Lemon & Lime Jaffa Cakes pladis

Fruittella ‘grab & go’ Perfetti Van Melle

McVitie’s new limited-edition Lemon & Lime-flavoured Jaffa Cake is available now, for 12 months. The new variant is offered only in single packs of 10, with an RSP of 99p. A £1 PMP is available to the convenience channel. The launch is supported by reruns of the Jaffa Cakes ‘First Day’ ad, which depicts a young woman breaking the ice with colleagues on her first day at a new job with Jaffa Cakes.

Fruittella has added a new grab & go sachet option to its range of less-sugar and sugarfree products. The new single-offering sachets (RSP 60p), which contain 99 calories per pack, fit in with the NHS Change4Life snack recommendation. Available now in two of Fruittella’s best-selling flavours – Strawberry and Summer Fruits – each sachet holds seven chews.

Cider brand Bulmers has launched its first TV campaign in four years, with three adverts on Channel 4 that celebrate the best of British culture. Exploring a rural summer fayre, comedian Jessica Knappett gets under the skin of the characters that fuel Britain’s sense of togetherness while embracing the diversity of the nation’s people, passions and cuisines.

Cheestrings Snack Mix debuts Following last year’s repositioning of Snack Mix under the Cheestrings brand, the product features in its first-ever standalone TV commercial. The ad, part of a £500k+ media spend by brand owner Kerry Foods, is a move to continue to drive momentum on Cheestrings now that snacking is a major focus for the company.

Maoam returns to TV Doritos Collisions PepsiCo

Epic Popcorn PWBrands

This new range – that combines two flavours in one pack – comes to the UK after a successful North American launch. Two variants are available now: Guacamole & Habanero Chilli and Honey Glazed Ribs & Lemon Blast. Both flavours come in a 162g pack (RSP £1.99) and Guacamole & Habanero Chilli is also available in a 72g pack (RSP £1). A TV and digital advertising campaign comes later in the year.

American-style brand Epic has launched giant sharing tubs of popcorn in three flavours. Sweet & Salty, Cotton Candy and Smokin’ Hot Chilli Popcorn are all available now in cases of six, at an RSP of £3 each. The three-strong sharing range is positioned at the luxury, indulgent end of the Big Night In market. Popcorn sales have doubled in value since 2013, and now sit at £152m annually.

Fruity chew brand Maoam is back on TV screens with the return of its ‘Full On… Till It’s Gone’ advert. On air for 15 weeks, the commercial is expected to reach more than eight million consumers. The £2.2m campaign features Stripes as the hero product and supports a heavy trade plan for the remainder of the year.

Back to school with Quorn Quorn is launching a £1.5m TV campaign, encouraging people to make family dinners healthy during the Back to School period. The campaign launches mid-August and runs until the end of September. It will focus on two of the brand’s core frozen SKUs – Crispy Nuggets, which recently received a ‘Netmums Recommends’ award, and Quorn Sausages.

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

JULY 2018 | SLR

Feature

Forecourts

FORECOURTS CONTINUE TO DRIVE GROWTH ACROSS SCOTLAND

The Scottish forecourt market remains very buoyant with huge interest in the sector and significant investment taking place.

he growth of interest in the forecourts sector has been a feature of the last few years in local retailing in Scotland as more and more groups develop an interest in operating forecourts or strengthen the interest they already have. Fuel brand JET has outlined its commitment to the sector with a recent dedicated conference. Over 100 independent JET retailers attended the two-day Phillips 66 2018 Customer Conference in Cannes, France. Themed ‘Fuelling Growth, Together’, the conference took place in May and saw the company’s retail and wholesale customers come together for a series of business updates and breakout sessions. Presentations were delivered by Mary Wolf, Managing Director, UK Marketing, Phillips 66 and Pam McGinnis, President, Global Marketing for Phillips 66. Attendees were also invited to take part in a series of breakout sessions run by senior Phillips 66 representatives who provided an update on the retail, wholesale, supply and sales support areas of the business. In addition, there was a session on cyber security delivered by Phillips 66 IT experts. Attendees also benefitted from industry insight provided in breakout sessions hosted by two leading experts: Richard Lim, Chief Executive of Retail Economics and Val Kirillovs, New Business Director at HIM Shopper Research and Insights. Richard provided an overview of the UK’s current economic climate and explored the impact of factors such as GPD and Brexit on consumer confidence and the wider economy. Val’s session explored the trends affecting fuel consumers’ habits and how forecourts can build consumer trust and loyalty to influence buying habits. Mary Wolf, MD, UK Marketing, Phillips 72

SLR | JULY 2018

SUBWAY TARGETS SCOTLAND Subway is encouraging Scotland’s forecourt retailers to “fuel up with the world’s number one franchise”. Subway now has over 2,500 sites in the UK and Ireland, of which over 800 are in non-traditional locations, such as petrol forecourts and convenience stores. Nick Baker, a JET Forecourt owner and Subway franchisee, said: “I’m delighted with the results the Subway stores are producing at three of my forecourts. The Subway brand is widely recognised and another reason for customers to visit. Since opening the Subway stores, I have seen an increase in footfall as well as growth in our shop and fuel sales.”

Mary Wolf, Managing Director, UK Marketing, Phillips 66 addresses conference

www.slrmag.co.uk

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Feature

Forecourts

Scottish JET retailers Scott and Andrew Aitken (left and right) with Soenke Voges, JET’s new Retail Business Manager.

JET ADDS MORE SITES TO SCOTTISH NETWORK JET has further strengthened its Scottish presence with two new JET sites joining the network: Lochbroom Filling Station in Ullapool and Contin Filling Station in Contin, Strathpeffer. Highland Fuels, a longstanding JET-branded Authorised Distributor in Scotland, has won the contract to directly supply Phillips 66 fuels to both sites, using the JET brand under licence from Phillips 66. The sites, which are owned by independent dealer, Alistair Fraser, have just been fully re-imaged in the latest JET brand and have their own convenience stores. Located on the A835, both sites attract a mix of transient and local customers. Lochbroom is located on the main road on the approach in to Ullapool, close to the ferry terminal, while Contin is more transient with a small amount of local village custom. Both sites attract a lot of seasonal tourist trade due to their location. Under the new supply agreement, fuel volumes at Lochbroom’s are anticipated to rise from 2.35 to 2.5 mlpa, with Contin’s expected to rise from 1.15 to 1.3mlpa.

SURESITE TO SUPPLY COSTCUTTER Suresite, the card services and risk management company, has concluded an agreement with the Costcutter Supermarkets Group to offer its independent retailers access to its processing services and technical expertise. From its launch in 2005, the volume of bank card transactions now processed by Suresite exceeds £2bn.

SLR | JULY 2018

66, comments: “We chose ‘Fuelling Growth, Together’ as our conference theme to highlight not only our growth plans for the JET network, but also our ongoing commitment to adding value to our dealers’ businesses so that they can thrive and achieve their own ambitions.” Andrew and Scott Aitken are joint owners of JET By Pass Service Station in Haddington and JET Rigg Service Station in Dunbar. Andrew said: “We have been with JET for 28 years and they remain one of the few companies in the retail industry who really know how to treat their customers and make them feel valued. The conference was fantastic and it was invaluable to meet up with other JET dealers and glean useful information and updates from JET at the business sessions, but also through conversations throughout the whole event.” Another company stepping their forecourt business up a gear is Costcutter. Sean Russell, Director of Marketing at Costcutter Supermarkets Group, comments: “Forecourt retailing is an important part of our business. All our retailers benefit from expert advice and support and pioneering technology systems to help them run their business more efficiently and effectively.” Last year saw Costcutter trial and begin the roll-out of its Shopper First Programme which combines local shopper insights with an engaging brand programme to drive significant sales growth for retailers. Russell says: “We have also embarked on a new supply relationship with the Co-op, which combines our in-depth understanding of the independent sector with the wholesale scale and expertise of the Co-op to create the best possible offer for independent retailers. Russell was also keen to highlight the focus that Costcutter has on the Scottish market: “Our Business Development teams in Scotland work with all our retailers to provide category management support. We also offer a complete range of Category Advice Packs providing retailers with merchandising and market insights that help drive customer value in stores. Understanding the local audience and shopper mentality is key to retailers getting their offer right, which is why we undertook the most comprehensive shopper study in our 30-year history. The Shopper First Programme has seen us drill down to an individual store level and provide detailed shopper insights, specific to that store’s catchment area, for each and every one of our stores.” Russell believes these insights show retailers how the shopping behaviour of their local communities fits into the way they live their lives. From there, retailers can access local range and category advice enabling them to keep developing their stores. www.slrmag.co.uk

O T D E T T I M M O C

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

“On both ends of the road outside us there’s a big housing estate. But there are also around 2,000 houses around that as well, so it’s a big area and that’s largely where our customer base comes from, as well as the lunchtime trade from the police headquarters which is behind us. They have a limited lunch offering there, so we cater for them. We have a food to go section in store. We’re currently making close to 500 rolls, baguettes and sandwiches a day,

which tend to clear out by two or three in the afternoon. There’s most definitely a demand for that. The relationship with Nisa is absolutely fantastic. I’m really pleased with the advice we’ve been given. It’s certainly increased trade for me over the last 18 months. They also recommended a Costa Coffee machine, which we’ve had installed in the last four months, and I’ve been delighted with how well that’s taken off.”

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

The relationship with Nisa is absolutely fantastic. I’m really pleased with the advice we’ve been given. Paul Cornell, Nisa Local

Feature

Cigarettes, RYO and Accessories

THE CATEGORY THAT KEEPS ON DELIVERING

The tobacco category may be much maligned in certain quarters but it’s a category that continues to deliver sales and profits for retailers in big volume every day of the week – but what do retailers need to do to maximise sales in the category? SLR finds out.

t may be a challenging category but tobacco and accessories is one that just keeps delivering for local retailers. With EUTPD2 now well bedded-in, the category remains as resilient as ever – but that doesn’t mean retailers can afford to be complacent, particularly around areas such as pricing, ranging, introducing NPD, exploiting RYO opportunities and more.

PRICING PUZZLE One of the biggest challenges facing retailers is the issue of whether to sell at RSP or not.

The temptation to price over RSP is strong but the advice from the major manufacturers remains that retailers are playing a risky game by doing so. Stephane Berset, Head of Marketing at JTI, says: “Price continues to be a key factor for existing adult smokers when choosing where to shop, so JTI recommends that retailers remain competitive by selling at the RSP or below. Value has become a

clear trend and retailers can maximise on this by stocking value brands, such as Kensitas Club, the fastest-growing tobacco brand in Scotland following its relaunch at a lower RSP. Andrew Miller, Head of Field Sales at Imperial Tobacco UK, has similar advice: “In Imperial’s opinion, premium pricing by wholesalers and independents following the implementation of EUTPD II and standardised packaging creates an ever-decreasing circle. They may be making up for drops in volume with increased prices and margins, but it will likely lead to diminishing returns as consumers eventually turn elsewhere – most likely to multiples like supermarkets – to buy their tobacco. Independent retailers have one big advantage: a personal service and the chance to build a genuine relationship with their tobacco-buying customers through excellent category knowledge.”

NPD STILL GOING STRONG Another challenge facing retailers and manufacturers is the problem of introducing NPD in a dark market. Certainly, it hasn’t stopped the manufacturers having a go, and often with great success, but the difficulties of doing so are immense when compared with the days of the uncovered gantry. Berset comments: “In today’s tobacco environment we rely on retailers to communicate NPD to consumers, making it more crucial than ever that retailers are knowledgeable about the latest tobacco products. By investing in innovative new products that meet consumer demand, and providing staff training, JTI has successfully launched NPD to the current market this year.” 78

SLR | JULY 2018

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Feature

Cigarettes, RYO and Accessories

“In today’s tobacco environment we rely on retailers to communicate NPD to consumers, making it more crucial than ever that retailers are knowledgeable about the latest tobacco products.” STEPHANE BERSET, HEAD OF MARKETING AT JTI

L&B Blue Superkings Ice Crushball are both positioned in the Sub-Economy pricing segment, with RSPs of £8. They will launch across the UK on August 1.

MARKET TRENDS The relaunch of Kensitas Club shows that NPD and relaunches can still be done. Mumtaz Ali, who runs a Mace store in Edinburgh comments: “Kensitas Club was an overnight success. We haven’t seen a response like this in a long time. It’s always had a strong Scottish heritage but with the lower price point all we have to worry about is staying in stock!” JTI has also launched Sterling Dual Superkings 20, Sterling Dual Double Capsule King Size 20 and B&H Blue DualSuperkings 20 so it seems that fears that NPD in the category would grind to a halt are unfounded. Similarly, Imperial Tobacco’s new product team has also been busy with the most recent launch being the addition of two new Superkings variants to its growing crushball range: JPS Player’s Superkings Crushball and L&B Blue Ice Crushball Superkings. Both launches are in recognition of the continued popularity of the crushball (capsule) sector, which now stands at over 14% of the overall factory made cigarette (FMC) market. JPS Player’s Superkings Crushball bolsters the portfolio of the UK’s best selling FMC brand, while L&B Blue Ice Crushball Superkings is a menthol-lined cigarette that also contains a crushball – a first for L&B. Brand Manager Madeleine Pearce comments: “Crushball is an increasingly attractive choice to an ever growing proportion of adult smokers, and these two new launches consolidate our strong existing proposition. JPS Player’s Superkings Crushball and

SLR | JULY 2018

The capsule/crushball segment is indeed one of the key drivers in the category at the moment, alongside the continually-growing value segment. Stephane Berset again: “The growth of the Capsule segment is a real trend and it is now responsible for 13% of total cigarette sales in the UK. “Another trend is Superkings. In the last year alone, demand for Superkings in the Ultra Value market has grown by 45% [Nielsen, Dec 2017] as consumers seek out value for money products. In line with this, we have recently added three new value products; Sterling Dual Superkings 20, Sterling Dual Double Capsule King Size 20 and B&H Blue Dual Superkings 20.

THE MODERN RYO MARKET As highlighted above, a key trend in the current tobacco market is the growth of the value segment and as part of this, the RYO category has increased by 8% [Nielsen, Oct 2017] year on year. The category now generates sales worth over £2.4bn, making it the leading combined price sector with a market share of 38.7% [Nielsen, Mar 2018]. Berset advises local retailers to be aware of two recent RYO trends: the fact that the pouch format has overtaken the box format, and an increasing popularity of the 50g pouch. With over six million kilograms of rolling tobacco sold in the UK each year [Nielsen, Apr 2018], there is significant opportunity for retailers to maximise sales by stocking up on value RYO products. Berset suggests his own company’s

Amber Leaf, Sterling and Holborn Yellow brands are must stocks. Amber Leaf is the number one tobacco brand in the UK with a 32.8% share of the RYO market, the best-selling RYO brand in all but one region within the UK and has three of the top five selling tobacco SKUs in its portfolio. Sterling Rolling Tobacco is JTI’s number one value RYO offering from the best-selling cigarette brand. Imperial Tobacco’s Andrew Miller suggests Gold Leaf Ice Pack is a must try for retailers. He says: “Gold Leaf Ice Pack is a unique RYO proposition featuring mentholated tips – a first for the category. Now adult smokers will be able to enjoy the fresh taste of menthol whenever they roll their own.”

ACCESSORIES New product development and an increased focus on merchandising is driving growth in the UK tobacco accessories market, according to Republic Technologies. Consumers are now demanding more from the category, with increasing pressure on suppliers to innovate to make their mark. “The tobacco accessories market in Scotland is currently worth £27m and growing +4.9% YOY,” says Gavin Anderson, General Sales Manager at Republic Technologies. “It’s crucial that suppliers maximise this opportunity by working with retailers to understand shoppers’ needs and, in turn, to enable retailers to drive sales of tobacco accessories in-store. “We have recognised the need for greater choice with NPD that taps into consumer trends, including Swan Ultra Slim, the thinnest-ever Swan filter and a premiumquality product aimed at smokers; Swan ‘Eco’ filters, the most environmentally friendly Swan product ever; Swan Kingsize Cigarette Tubes, appealing to cash-conscious consumers looking for an alternative to ready-made cigarettes, and OCB Virgin Slim & Tips, for consumers looking for a less refined paper and a softer smoke.” In March, Republic Technologies announced a major overhaul for its matches range, including new packaging, and a category-boosting extension for its iconic Swan brand. In addition to modernising core brands www.slrmag.co.uk

ESS FU L R H Y S U CPC E TA W IL â&#x20AC;&#x2122;S I, MAN RITE AND PU

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*RRP: Recommended Retail Price. All on-shelf prices are selected by the retailer alone. This communication is intended for the information of tobacco traders only and should not be distributed elsewhere. Pack images are for illustration purposes only and do not represent actual packs produced by Philip Morris for retail sale.

ÂŁ8.00 RRP *

Feature

Cigarettes, RYO and Accessories

to appeal to a broader, younger audience, the move marks a commitment to sustainability and the increased demand for eco-friendly matches, following the removal of Strike Anywhere match formats from the range. “The relaunch of our matches range is one of the biggest initiatives to be seen in the UK’s £23m matches market for decades, reenergising a category where sales have been declining and both innovation and creativity had diminished,” says Anderson. To make the most of this category, it’s vital that retailers stock the right range of tobacco accessories and merchandise them accordingly to see the best results. “Although papers is the most buoyant area of the accessories category in Scotland – valued at £10.3m and growing at 14% – it’s important to stock a broad range of products to meet customer needs,” says Anderson. “We would always recommend stocking a wide selection including core range filters, papers, matches and lighters, as well as the latest NPD. Pack formats are also important. Space saving packs such as vertical packs of Zig-Zag King Size papers (50% space saving compared to traditional King Size packs) and Poppell 45 pack lighters help retailers to manage shelf space more effectively, while pack formats such as Swan Slim Pop-a-Tip Filters offer a convenient alternative (vs Swan Slim Loose Filters) for on-the-go consumers.” Meanwhile, the world’s biggest-selling paper brand has undergone a redesign. Imperial Tobacco has relaunched its iconic Rizla range of rolling papers in stylish new product and outer packaging. As well as a more modern aesthetic, each pack now features a ‘tuck in’ closing mechanism designed to reduce wastage, plus a ‘soft touch’ finish designed to make the packaging feel more tactile. Imperial Tobacco Brand Manager Jamie Burns-Smith comments: “These fresh Rizla pack designs demonstrate that we are constantly listening to our consumers, and tweaking our offering to remain one step ahead of the competition. To celebrate, new Rizla imagery is appearing on the livery of the Yamaha Official WorldSBK Team. In the most recent championship race the Dutch rider Michael van der Mark triumphed at Donington Park.”

THE ILLICIT TRADE Illegal tobacco remains a massive problem for legitimate retailers with illegal tobacco currently accounting for 15% of the ready-

SLR | JULY 2018

made market and 28% of RYO tobacco in the UK. Research conducted for JTI has revealed that over half (52%) of smokers in Scotland have purchased illegal tobacco products, including counterfeit products. The research also discovered that one in four smokers in Scotland had been offered illegal tobacco and 20% would consider purchasing illegal tobacco, with the main motivator being to save money (86%) There are continued concerns that these figures may worsen since packs have become easier to duplicate with the introduction of plain packaging. In addition, the legal requirement to only produce larger pack sizes can lead to consumers looking for cheaper alternatives on the black market. All of the major manufacturers have worked hard to clamp down on illicit sales. In June, for example, JTI worked in partnership with TM EYE to enable the successful prosecution

of an illegal tobacco seller. This was the first time JTI had been directly involved in the private prosecution of a criminal selling illegal tobacco and marks a further step forward of its commitment to help tackle the problem of illegal tobacco in the future.

RESPONSIBLE TOBACCO RETAILING Last month JTI launched an innovative enhanced youth access prevention programme targeting underperforming areas across the UK. The new programme will identify retailers who may be at risk of selling tobacco products to under-18s, offering them free-of-charge professional training provided by fully qualified former Trading Standards officers. In a change to the previous scheme, any retailers assessed as “At Risk” four times in a row will be notified to the relevant law enforcement agencies for further follow up.

FOREST SLAMS GOVERNMENT’S ‘WAR ON SMOKERS AND RETAILERS’ Responding to the publication of the Scottish Government’s new tobacco control plan, smokers’ group Forest has criticised what it has called the Government’s “war on smokers and retailers”. According to a recent poll conducted by Populus for Forest, 54% of Scots think government policies to reduce smoking rates have already gone too far or far enough. Fewer than two in five (37%) think they have not gone far enough. The poll of 1,021 adults conducted between May 25 and June 5 also found that 85% of Scots think tobacco taxation is too high (44%) or about right (41%). Only one in seven respondents (15%) think tobacco taxation is too low. Invited to select a measure that would do most to reduce youth smoking rates in Scotland, 45% of respondents chose ‘mandatory school education’, 18% called for ‘tougher penalties on shopkeepers caught selling tobacco to children’, but only 7% chose ‘Banning retailers from selling tobacco in particular geographic locations’. Urging the Scottish Government to “abandon its war on smokers and retailers”, Forest Director Simon Clark said: “Restricting the number and density of tobacco retailers would hit consumers and convenience stores. Introducing a minimum price for tobacco will merely fuel illicit trade, hurting law-abiding consumers and legitimate retailers.” He added: “Any further measures to tackle smoking are an obvious distraction from other more important issues facing government in Scotland. The Scottish Government should listen to public opinion and abandon this war on smokers and retailers.”

www.slrmag.co.uk

UNCHANGED TASTE AND QUALITY YOU CAN RELY ON

REDUCES ODOURS AND STAINS ON YOUR FINGERS

PROVIDES A PREMIUM FEEL

KEEPS EVERY CIGARETTE AS FRESH AS THE FIRST

*Nielsen Sept. 2017. This communication is intended for the information of tobacco traders only and should not be distributed elsewhere. Pack images are for illustration purposes only and do not represent actual packs produced by Philip Morris for retail sale.

Tobacco smoke contains over 70 substances known to cause cancer

Feature

Convenience Must Stocks

STOCK SOFT TO SEE SALES ROCKET With the sun just refusing to away, it’s critical that retailers stock – and stay in stock – the most important lines soft drinks lines that will drive sales and profits this summer.

ith the thermometer steadfastly refusing to fall below ‘scorchio’ this summer, it’s vital that retailers stay on top the key soft drinks lines that will drive sales this summer. The hot weather keeps bringing shoppers back to the chiller time and again. Amy Burgess, Trade Communications Manager at Coca-Cola European Partners (CCEP), advises: “Soft drinks present a huge sales opportunity for retailers as consumers look to refresh and rehydrate, whether they’re on-the-go, have their feet up at home, or are planning to host a party or family gathering. “Offering a wide choice of different products, including a range of flavours and variants, as well as pack formats, is the key to making the most of soft drinks sales. “Especially important is keeping a wide selection of low or zero sugar drinks, and retailers should constantly review their soft drinks range as manufacturers innovate new lighter options to meet rising consumer demand for healthier options.” Among the king of must stock lines is Coca-Cola. Millennials consume around 65% of flavoured carbonates in GB [Nielsen, Jan 2018] and in particular, flavoured colas. The flavoured cola segment is increasingly popular and is currently growing by 20% YOY [Nielsen, Aug 2017]. That’s why CCEP introduced new flavours for Diet Coke and Coca-Cola Zero Sugar. They have been designed to help retailers tap into the growing popularity of light colas, which are worth £915.5m and the growing consumer trend for unique, interesting options. Some 4.7 million households in Great Britain buy flavoured colas and the category brings 340,000 incremental shoppers to the cola segment every year[ Kantar, Aug 207] Exotic Mango and Feisty

SLR | JULY 2018

Cherry have joined the Diet Coke portfolio while Coca-Cola Zero Sugar Peach follows the success of the Cherry and Vanilla variants launched in 2017 and is the first product to be available in a new red can design that celebrates the iconicity of the Coca-Cola brand. Also new and worth keeping an eye on from CCEP is Sprite Lemon Lime and Cucumber No Sugar, complete with a new design for the entire Sprite brand. Fuze Tea is another new launch from CCEP, a premium, low-calorie blend of fruits, botanicals and tea. The iced tea market in GB has seen a popularity boost over the past 20 years and has grown by £6m in the past year alone [Nielsen, Jun 2017]. Oasis Aquashock has been introduced to capitalise on the growth of flavoured waters and is available in two ‘contrasting flavours’: ‘hot’ Oasis Aquashock Spicy Raspberry variant flavoured with fiery chilli, and a Chilled Cherry variant that contains cooling, tangy lime. The other set of must stocks in the soft drinks category come from Barr Soft Drinks. Adrian Troy, Marketing Director at Barr Soft Drinks, says: “Soft drinks continues to be one of the most profitable categories for convenience retailers, worth £2.2bn and growing at 2.7% [IRI, Feb 2018]. “From June to August shoppers consume 26% more soft drinks, with Water, Fruit Drinks and Other Flavoured

Carbonates seeing the most benefit. Retailers who adapt their ranges to reflect this range, particularly in the chiller, will benefit significantly. Troy encourages retailers to stock all three Irn-Bru variants as well as the Barr family range, the Rubicon range, Strathmore water and the huge Rockstar energy range to capitalise. CCEP’s Monster brand is another must stock in energy with particular growth coming from the low or zero sugar variants. The Monster Energy Ultra range, which offers four fruit flavours with zero sugar, has seen a growth of over 112% in the last year [Nielsen, Sep 2017]], highlighting increasing consumer demand. To build on this success CCEP has added a fifth variant to the Ultra family: Monster Ultra Violet. With its crisp, citrus grape flavour and zero-sugar credentials it is designed to appeal to millennials looking for a sugar-free energy kick that tastes great. Monster Energy Ultra Violet is Soft Drinks Tax exempt, as is the full Monster Ultra range. Carol Saunders, Head of Customer Marketing, Highland Spring Group, comments: “Sales of plain bottled water in retail packs increased by 8% in 2017 to over 3,100 million litres, according to the 2018 UK annual bottled water report published by global food and drink experts, Zenith. Volumes grew on both still and sparkling water with sales up 8.7% and 5.1% respectively. In 2018, Highland Spring regained its title as the no.1 plain water brand in the UK (Zenith Bottled Water Report, 2018). “In Scotland Highland Spring is the no.1 plain bottled water brand and bigger than the next two brands combined. One in every four litres of bottled water sold in Scotland is Highland Spring. Saunders says Highland Spring saw YOY value growth of 13%, compared to other key plain water brands Evian, Buxton and Volvic, which are all in decline at -9.3%, -20.1% and .-04% respectively (IRI Scotland 52, w/e 26.05.18). www.slrmag.co.uk

Refresh your sales this summer Stock our sunshine promotional packs now!

For the first time, we have one campaign across our amazing range of sparkling drinks including Coca-Cola™, Sprite, Fanta and Dr Pepper!

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It’s this summer’s hottest soft drink promotion. Make sure your chiller is full with our leading range of sparkling soft drinks. To find out more visit www.cokecustomerhub.co.uk or call Customer Hub on 0808 1 000 000. GB res. only. 16+ (U18s need parental consent & must be accompanied by an adult). Promotional packs only. Promotion opens 00.00 25/06/18 & closes 23.59 26/08/18. Internet & registration required. To enter find your unique code on or within promotional packs & visit www.coke.co.uk/summer. *5,000 online instant win prizes available to be won during Main Promotional Period. Prize of winner’s choice from 10 x experiences. All prizes incl. activity for 2 ppl, 2 nights, 3/4* B&B accom, travel/flights from closest international GB airport (where applicable) & £250 spending money. Max 5 entries/day, 1 x instant prize/person. Bonus draw to win 1 x prize closes 07/10/18. Exclusions apply. For full T&Cs see www.coke. co.uk/summer. Promoter: Beverage Services Ltd t/a Coca-Cola Great Britain 1A Wimpole Street, London W1G 0EA. ©2018 The Coca-Cola Company. COCA-COLA, COKE, DIET COKE, COCA-COLA ZERO, SPRITE and FANTA are registered trademarks of The Coca-Cola Company. All rights reserved.

UTC

THEY DO THINGS DIFFERENTLY IN SPAIN

UTC is indebted to Seenan of EdringtonBeam Suntory, a good friend of SLR, who took time out of his holiday in Spain recently to snap a wee fotie that he thought readers might be interested in. Unlikely as it seems, it’s apparently a vending machine outside of a butcher’s shop where customers can pick up some steaks and snags for the barbie 24 hours a day, as well as a wee bottle of Coke or two to wash it down – perfect for those 3am barbies that Spaniards are so fond of. [Are they? Are they really? – Ed] A nice, creative approach to satisfying more unusual shopping missions, mused the auld yin, but he did wonder what would happen to a machine like that if it was on, say, Duke Street in the east end of Glasgow.

IF HE ONLY HAD THE GUTS Ye cannae whack a ridiculous job title, that’s what UTC always says. [Does he? – Ed]. So it was all-hail oatcake manufacturer Nairn’s for creating a new ‘Good Gut Feeling’ digital campaign that required the appointment of four new... wait for it... Gut Health Ambassadors. The campaign focuses on the importance and benefits of good gut health for all ages, in an informative yet easy to understand way, allegedly. The four new Gut Health Ambassadors are all bloggers that the auld yin had never heard of, but the news did prompt him to start a small log of the health of the guts of everyone at SLR Towers. He gleefully pointed out that several unnamed members of the team appeared to have very healthy guts indeed, if size was anything to go by. UTC himself, he added, likes to remain as lean a butcher’s dog, a goal achieved through strict adherence to a diet comprising mostly whisky, rollies and Gregg’s Steak Bakes. 86

SLR | JULY 2018

WHAT’S THAT DRONING SOUND?

As well know, the old fella loves a pointless celebratory day so he was very taken with the recent International Drone Day which prompted lively debate in SLR Towers, admittedly not all of it positive and uplifting. The event was, according the press release, “a global celebration of drones which seeks to promote the transformational impact of the technology.” UTC had very little to say on the that but did mutter something about every day being international drone day if you had the misfortune of working in the sales office at SLR.

DIRTY, THIEVING BASKETS!

Whether it was a minor outbreak of civil disobediance, or just good old fashioned thievery, UTC doffed his flat cap last month to shoppers at a Tesco on the Isle of Lewis who had been pinching baskets so often that the supermarket decided to completely withdraw them. Up to 15 a week were going missing, much to the consternation of the mult. An amnesty was even declared to allow shoppers to return the baskets ‘no questions asked’. How successful that plea was, UTC has no idea, nor did he seem to care. Comments on Tesco’s Facebook post suggested the baskets were being used for growing plants in and for keeping items tidy inside car boots. They do things differently up there. www.slrmag.co.uk

Promoting Responsible Community Retailing since 1918 to ensure a sustainable and prosperous convenience industry in Scotland

SGF Centenary Year

Join us at

PGA CENTENARY COURSE

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£1,695

for the SGF Annual Golf Day

+VAT

Gleneagles Golf Club The PGA Centenary Course

JOIN US ON TUESDAY 4TH SEPTEMBER

The Scottish Grocers’ Federation will be hosting in its Centenary Year a fantastic retail trade Golf Day to bring suppliers, wholesalers and independent retailers together to the outstanding PGA Centenary Course at Gleneagles and we would like you to be involved! The event will bring the industry together in beautiful surroundings at Gleneagles Golf Club, PGA Centenary Course, PH3 1NF.

BOOKING FORM I would like to book a fourball at the SGF Golf Day

�

Booking made by ................................................................................................... Company (if applicable) .........................................................................................

We will contact you for payment. Do you intend to pay by: � Bank transfer

� Credit card � Invoice – please include

Team Name ...........................................................................................................

purchase order ...............................

Team Member 1......................................................................... Handicap .........

Please complete this form in BLOCK CAPITALS and return to IRATI UGARTE: email: irati@sgfscot.co.uk fax: 0131 343 6147 tel: 0131 343 3300

Team Member 2......................................................................... Handicap ......... I intend to nominate two retailers to join us ...........................................YES / NO I would like SGF to provide two retailers to join my fourball ..................YES / NO Contact telephone number: .................................................................................. Contact email address: .........................................................................................................

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* Kantar usage panel Aug 2017 in home occasions **Free POS kit promotion open to retailers in the UK. 18 years +.To enter send your full name and store address to SMRobinsons@britvic.com after 30th April 2018 and by 1st June. Entrants must have internet access to enter. Only one Free Kit per person, first 50 entries. Whilst stocks last. Free POS Kit, consisting of A3 Poster, shelf strip & aisle fins. Please note this kit does not contain any Robinsons products.