SLR November 2017 by 55 North

NOVEMBER 2017 | ISSUE 175

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.1 O N E H T M O R F * PROFIT D N A R B Y R E C O R G H S SCOTTI © Snowman Enterprises Limited 2017 THE SNOWMAN™ Snowman Enterprises Limited *Source : Kantar World Panel, Value Sales, Take Home Non-Alcohol Brands, MAT to 22.05.16, Total Scotland

Brexit retail roadmap | Lighting up cigar sales | Forecourts special | SGF 2017 review SLR November 2017.indd 1

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WITH OUR TOP SELLING BRANDS

SHOPPERS ARE LOOKING FOR GREAT CHOICE AND VALUE AT CHRISTMAS! SLR November 2017.indd 2

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NOVEMBER 2017 | ISSUE 175

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PETE CHEEMA

RETAILERS DEMAND BREXIT CLARITY

It’s time for government to start providing some clarity on key Brexit issues affecting retailers and their staff, says new report.

SGF boss reﬂects on a positive year

REAL COST OF LIVING WAGE True cost of minimum wage revealed

FORECOURT INNOVATION

Creativity driving forecourt sector

FESTIVE SMOKES Cigar sales set to peak once more

SAVE THE DATE: #ThinkSmart2, Mar 19th 2018, Glasgow Science Centre SLR November 2017.indd 3

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November 2017

Contents

Contents ISSUE 175

NEWS p6 p7 p8 p10 p12 p13 p14

p22 p24 p26

Business rates More local authorities need to use their existing powers to help out retailers, says the SRC. Minimum wage SGF data reveals the real cost of employing staff to be £9.66 per hour. Mobile payments Spar starts the roll-out of the Zapper loyalty and payment app across its network of stores. Budget Trade associations urge the Chancellor to support consumer spending in the forthcoming Budget. Obesity The Scottish Government’s plans to improve Scotland’s health are welcomed by the retail industry. Awards Forfar retailer triumphs at the Bestway Wholesale Retail Development Awards. News Extra Showcasing Scotland Tour The nation’s food and drink manufacturers take to the road as demand for locally-sourced produce increases. Product News Tetley moves out of its ‘tea comfort zone’ with the launch of vitamin-enriched squash. Off-Trade Diageo urges retailers to go premium this Christmas, while Tennent’s unveils new Lager Lovelies. Newstrade The Scottish Newstrade Steering Group meets once more, and a Conde Nast title shifts to digital.

INSIDE BUSINESS p28 Research Digest IGD predicts online shopping will be the fastest-growing grocery channel within five years. p30 SGF 2017 Review Chief Executive Pete Cheema says there is still plenty to do as the Federation nears its centenary. p32 Forecourts Special Innovative customer engagement strategies are driving up spend and profits. p38 Woodlands Local October delivers a record of sales for the store, but recruitment continues to cause concern. p42 Hotlines The latest selection of products for retailers to consider stocking. p54 Under The Counter The Auld Yin takes news of Swedish success at porridge making with a pinch of salt.

FEATURES p44 Oral Care The category has never been more important to customers, giving retailers a fantastic chance to profit. p46 Cigars If last year is anything to go by, cigar sales should light up this December. p50 Big Night In Cash-strapped shoppers not going out presents retailers with some great opportunities to cash in.

ON THE COVER p18 As Brexit negotiations falter, the BRC calls for the rights of retail workers and consumers to be prioritised.

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News BUSINESS RATES Councils challenged to do more

Mackays spreads out Marmalade and jam producer Mackays is set to embark on a major multi-million-pound investment that will see its business premises grow by 50%. Starting in January 2018, the £3.8m expansion will allow the company to introduce new product lines into its existing factory as well as create a dedicated distribution centre and co-packaging facility. A £3m investment from Mackays along with a further £875,000 European Grant will cover the lease, fit-out and purchase of new equipment. The business employs 180 people at its factory in Angus.

Booker wraps up Urban Eat sandwich deal Following a successful trial across 27 convenience stores, sandwich brand Urban Eat is being made available to all Booker franchise outlets. The new partnership mean fresh sandwiches can be delivered direct to stores across

SRC urges more local councils to act on business rates relief The Scottish Retail Consortium has called on more local authorities to act to reduce business rates in their areas, after it was revealed just two out of Scotland’s 32 councils currently use existing powers to cut business rates bills. In response to a written parliamentary question from a Labour MSP, the Scottish Government has confirmed that only two local authorities – Aberdeen and Aberdeenshire – are currently using powers to reduce business rates which were first introduced exactly two years ago. The ability to cut business rates through the ‘local discretionary rates relief’ was first introduced on October 31, 2015, under the 2015 Community Empowerment Act. Despite the fanfare two years ago when the relief came into effect, the response from Finance Secretary Derek Mackay to a written parliamentary question shows just

two of the 32 councils in Scotland is using this power to cut business rates in the current financial year: “Perth and Kinross Council made use of the local relief powers available under the Community Empowerment (Scotland) Act 2015 in 2016-17 and Aberdeen City & Aberdeenshire Council have done so in 2017-18. The Scottish Government continues to encourage all local authorities to utilise their powers to award local rates relief to address any local issues they identify.” When the then Community Empowerment Bill was being scrutinised by Holyrood three years ago the SRC’s submission supported the principle of the relief but voiced doubt over how extensively the rates discount would be deployed, as it was not accompanied by any cash from government to local councils. The SRC also alighted on the issue in its recent Scottish Budget submission to Ministers.

Separately, recent official figures showed the number of shops in Scotland has fallen by 1,831 over the past eight years, down 7.5%. The shop vacancy rate is 9.3% in Scotland’s town centres. David Lonsdale, Director of the Scottish Retail Consortium, said: “Two years have passed since councils first got the power to reduce business rates in their areas, but barely any local authorities have bothered to act on it. This is hugely disappointing at a time when one out of every ten shops in Scotland’s town centres is lying empty and action is needed to cut the cost of doing business and revive our high streets. This Scottish Government initiated policy is at serious risk of being viewed as a ﬂop due to lack of take up by councils. Scottish Ministers should redouble their efforts to get more local authorities to capitalise on this opportunity to support high streets and town centres.”

the Booker estate, with sale or return included. Some 40 Urban Eat products will be available, all presented in new packaging, launched in May. Brand owner Adelie Foods is providing full product support with POS materials, planograms and regular brand promotions.

MFG makes refuelling easier for disabled drivers Motor Fuel Group (MFG) is adopting the fuelService app across its UK network. The free app enables disabled drivers to re-fuel their vehicles more easily. It helps drivers find a local petrol station and ascertains if assistance will be available. Once at the petrol station, a driver can use the app to tell staff they have arrived and which pump they are at. Andy Edwards, MFG’s HSE manager who is responsible for the network rollout, said: “We are pleased to be supporting this great app as latest figures suggest that over 648,000 people

SERVICES PayPoint change should mean less banking

PayPoint streamlines commission payments PayPoint is changing the way it pays commission, to help retailers reduce the amount of cash they need to bank. Currently, retailers see a weekly commission credit on a Tuesday as well as a normal transactional amount settled by direct debit or credit. For SBIs dated November 13, 2017 onwards, PayPoint will deduct commission owed to retailers from the transactional monies due to it. This means that from November 24, 2017, on a weekly basis, Settlement Notices will look slightly different as they will include details of commission due. PayPoint said that this should reduce banking charges, as retailers only need to bank the net PayPoint

figure (cash taken in, minus CashOut transactions, minus commission due). Direct debit/ credit charges could also fall, because of less PayPoint banking transactions. No action is required from retailers. Commission will appear on Settlement Notices, which can be viewed via PayPoint devices and/or by logging on to MyPayPoint. com. This will advise retailers of the amount needed to bank. It is essential that the notified amount is banked on time, as any failed direct debits will incur a charge. Retailers seeking further guidance can browse frequently asked Single Daily Settlement questions or email PayPoint quoting their retailer number in the subject line.

WHOLESALERS

Booker steady as merger draws closer Booker Group has continued to make steady progress ahead of its proposed merger with Tesco, according to the wholesaler’s half-year trading figures. Interim results for the 24 weeks ended September 8, 2017 reveal total sales of £2.6bn, a rise of 2.5%. Non-tobacco sales climbed by 7.5%. Tobacco sales fell by 9%, par for the course in the wake of EUTPD2. On a like-for-like basis, sales rose by 2.7%, with non-tobacco up 7.7%. Tobacco sales fell 8.7% like-for-like. The Group reported an operating profit of £89.1m, a rise of 9%. Pre-tax profits rose by the same amount to £88.0m. Profits after tax grew by 10% to £74.7m. The wholesaler maintained its strong net cash position, with £165.1m in the bank. Meanwhile seven rival wholesalers – Bestway, Bidfood, Confex, Landmark, Spar, Sugro and Today’s – have jointly urged the CMA to block the merger. If approved, the deal should be completed in early 2018.

use Motability vehicles.” KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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News MINIMUM WAGE Study uncovers impact of additional outlays

Real cost of employment is £9.66 per hour, says SGF The real impact of rising staff costs for the independent convenience store sector has been revealed in new figures released by the Scottish Grocers Federation. Since its introduction the national living wage has impacted heavily on the retail sector. The headline living wage figure (£7.50) has knock-on impacts. Data produced through SGF’s partnership with the Institute for Retail Studies at the University of Stirling shows that the real hourly cost of employment, including additional costs such as pensions and National Insurance contributions from employers, is £9.66. This knock-on impact of the national living wage on convenience store retailers has been made worse by the large numbers of staff employed in the sector and age

profile of staff. SGF’s Scottish Local Shop Report shows that 78% of staff are in the age group affected by the national living wage. The real hourly cost of employment is 29% higher than the current national living wage rate of £7.50 per hour for staff over the age of 24. The data were gathered from a sample of retailers across Scotland

and analysed by the University of Stirling’s Institute for Retail Studies. The Institutute’s Professor Leigh Sparks said c-stores were vulnerable to rising costs, many of which are often unclear. “Rises in national minimum wage levels have knock-on impacts on the staff costs of almost 30%. The true cost of employment is being underestimated”.

Diageo named as’great place to work’ Diageo has been recognised as the World’s 11th-best Workplace by Great Place to Work. This the the seventh consecutive year the premium drinks manufacturer has been included in the top 25. It ranked second-highest among the FMCG companies listed and is the only beverages company represented in the top 25. More than 10 million employees from 6,600 companies around the globe participated in the survey process for the World’s Best Workplaces list.

Nisa names caretaker boss Nisa has appointed Arnu Misra as interim CEO, following the sudden departure of Nick Read on September 29. Misra has been an Independent Non-Executive

Professor Leigh Sparks

Director at Nisa since November 2016, with previous senior executive roles at Matalan, Asda

ANALYTICS Data solution answers key retail questions

Supermarket-style analytics comes to convenience IRI, a provider of big data and predictive analytics for retailers and suppliers, has launched what it’s calling “the first analytics solution for convenience retailers”, giving c-stores access to the company’s analytics capabilities. Previously only available to the major multiples, IRI’s convenience analytics capabilities cater for the specific needs and challenges of the channel, helping answer questions like ‘What should I sell?’, ‘Where should I sell it?’ and ‘How should I sell it?’ Designed by IRI’s specialist Retail Solutions team, the solution offers convenience chains the same insights that the multiples have used for years, including support for category management, product assortment and store layouts, as well as pricing, promotional and marketing strategies. “Convenience chains need fast, actionable and easy to implement recommendations with a quantifiable

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business benefit, said Stephen Lampard, IRI’s Head of Convenience. “Stores have to decide what type of products they want to sell, what package size they are able to stock, and whether they are matching products to the needs of the shoppers in the local area. Pricing is another pain point for convenience stores, but using our unique price optimisation analytics we can help them find the right price tiers between private label and brands, as well as what deals will help maximise sales.” IRI’s analytics capabilities also provide cross-category demand correlation to calculate which categories have the highest demand for a particular type and location of store. It can also help analyse what is the best product assortment and what shelf spacing is required and the right kind of store layout, right down to the number of fridges, freezers and secondary sites that a convenience retailer will need.

ILLICIT TOBACCO

JTI research uncovers extent of illegal tobacco in Scotland New research from JTI has found that over half (52%) of smokers in Scotland have purchased illegal tobacco products including counterfeit and foreign tobacco. The research also discovered one in four (25%) smokers in Scotland had been offered illegal tobacco in the past year, and nearly half (42%) of them in the last month alone. Furthermore, over 20% of smokers would consider purchasing illicit tobacco despite knowing it is illegal, with the main motivator being to save money (86%), along with smaller packs no longer being available (21%). According to HM Revenue & Customs illegal tobacco currently accounts for 13% of the cigarette market, and 32% of RYO tobacco in the UK.

and Canadian supermarket chain Loblaw’s. Misra said he was pleased to be leading Nisa at a time of great change for the convenience sector. The appointment came as Nisa reported positive half-year trading figures, with total sales up 12.4% YOY to £728m for the 26 weeks to October 1, 2017.

Glaswegians Halloween meanies, ﬁnds survey Edinburgh is the UK’s fifth-most generous city towards towards trick-or-treaters, a survey by online marketplace OnBuy.com has revealed. Households there spend an average of £16 on confectionery to be dispensed at the doorstep. This is compared with the miserly £4.60 spent by Glaswegians, ranking Glasgow 29th out of the 38 cities polled. Brighton, whose residents spent a whopping £18.60 on average, was most generous. Current UK City of Culture Hull propped up the league table with a stingy £1.70 per household.

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News MOBILE PAYMENTS Spar shoppers to benefit from latest smartphone tech

ACS runs with Bolt Bolt Learning has been chosen

Spar launches Zapper loyalty app

as the preferred partner for the new, improved ACS Assured Advice scheme, which provides retailers and suppliers with advice and training. Bolt’s bite-sized modules can be undertaken on computers, tablets or mobile phones, and most take just 15 minutes to complete, providing staff with a certificate on completion and an audit trail to help prove compliance. For ACS members, prices start from £9 per module, per person, with a volume discount for more than 10 people. A free trial is available on request.

Nisa’s birthday balloonbursting bonanza Consumers had the chance to win one of 40 ‘birthday presents’ last month as part of Nisa’s 40th birthday celebrations. The online competition

Zapper has commenced a roll out of its mobile payments and loyalty app into multiple Spar stores. A number of Spars in the South West of England are already live and accepting Zapper payments and loyalty. Once the solution is installed, stores can be live and transacting within hours. Zapper delivers instant mobile payments and seamless rewards, helping retailers understand shoppers to build a more efficient and profitable business. To use Zapper, shoppers open the app on their smartphone, scan a QR code at the till and payment – including voucher redemption and loyalty card updates – is seamlessly processed in a few seconds. “Working with Zapper means that customers are motivated to shop at Spar rather than at a competitor store,” said Ian Taylor, Spar UK Retail Director.

“Our customers have many great reasons to shop with us and there are enormous benefits to retaining and rewarding them. We continue to develop exciting modern and relevant convenience stores and Zapper mobile payment rewards loyalty and enables our customers to pay for their goods faster which

in turn will encourage repeat use in store.” Jon Birt, Retail Director, Zapper UK, said: “We are Spar UK’s first app partner to deliver a seamless loyalty and smarter marketing platform. This will further assist retailers in understanding today’s convenience shopper’s needs, all delivered by the ease of quick mobile payments. With the average shopper spending £8.47 when they pay with the app, it is clear Zapper is transforming the way shoppers pay and receive rewards.” FMCG brands can also gain personal insights and contact their customers directly via Zapper. Brand-specific digital vouchers can be sent in seconds via the app to consumers directing them into Spar and other convenience stores to automatically redeem their vouchers. The app is available for download via Android, iOS and Windows Phone platforms.

runs until October 15, gave consumers the opportunity to win prizes of cake, chocolates or champagne by ‘popping’ as many balloons as possible. The competition formed part of Nisa’s 40th birthday celebrations, which have included naming 40 Nisa lorries after members of the public, the ‘40 Random Acts of Kindness’ campaign and a competition giving away 40 Heritage hampers.

Spar campaign proves a winner with shoppers Spar’s footfall driving campaign Shop & Win has engaged more shoppers than ever in 2017, thanks to the launch of new initiatives including a virtual scratch card game and a Facebook ‘Selfie’ competition. Through the nine weeks of the campaign, there were 86,370 total plays from 24,890 individual players, representing on average 300 more plays per week compared to 2016. An average basket spend of £9.67 compared to £8.33 last year, with a higher average voucher redemption rate of 34%

CONSOLIDATION Nisa pops the question

Board asks Nisa Members to approve Co-op takeover Nisa’s Board has unanimously recommended that its Members accept the Co-op’s offer of up to £137.5m for 100% of shares in the symbol group. Associated deal costs of up to £5.5m gives the Co-op a final cost of up to £143m for the acquisition. It would also take on the existing Nisa debt of £105m. The offer is expected to be put to Members to vote upon in November. The acquisition is also subject to clearance from the CMA. If the deal goes ahead, Nisa shareholders will receive an equal initial payment, a deferred share payment payable over three years, as well as additional rebates payable over four years. The offer gives Nisa members access to greater scale, access to the Co-op range, retention of their independence of operating their stores how they want, while also remaining part of a member-owned organisation.

Conversely, the acquisition would strengthen the Co-op’s presence in the wholesale convenience sector, in turn enhancing its scale and buying power. The Co-op plans to retain Nisa as a standalone business and brand. Its ambition is to attract new members to the combined business. Peter Hartley, Chairman of Nisa, said: “While the business has made significant strides in recent years, we firmly believe that the combination with the Co-op is in the best interests of our members. The Co-op offers the right blend of buying capability, convenience expertise, and respect for the heritage of our business, to enable our members to fully thrive in this new partnership.” Jo Whitfield, Food CEO of The Co-op, added: “We believe we have presented a compelling offer for Nisa members, with a future proposition that would bring them our awardwinning own-label products and wide range.”

WHOLESALERS

Flexible working pilot announced at Women in Wholesale conference The second Women in Wholesale conference took place last month (October 19) with the mission to support the development and progress of females working in UK grocery wholesale. Almost 200 wholesalers, cash and carries and FMCG brands gathered at the British Library in London for the event, more than double last year’s attendance. The Federation of Wholesale Distributors (FWD) announced that it has joined forces with flexible-working experts Timewise to launch a flexible working pilot in wholesale. The announcement follows research earlier this year that a lack of flexible working options was the key barrier to progress for females. Key wholesalers will start a consultation phase this month to assess current practice.

compared to 32% in 2016. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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TENNENT’S LAGER – REFRESHINGLY ACCURATE 4% ABV. To switch to Scotland’s favourite (honest) lager, call Tennent’s on 0845 601 5959.

In September 2012, Molson Coors Brewing Company, reduced the ABV of their Carling Lager in order to save millions of pounds in duty. Since then they have been misleading customers and consumers by continuing to display the ABV of Carling on the packaging as 4%. At a Tax Tribunal* in February / March 2017, Mr Philip Rutherford, Vice President of Tax for Molson Coors Europe confirmed that Molson Coors took the deliberate decision not to change the labelled ABV in order to stop customers “demanding a slice” of the savings. Now that’s not very honest, is it?

The Tax Tribunal found in Molson Coors favour that duty was payable at 3.7% ABV.

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News BUDGET Consumer spending and business investment stimuli called for

Aryzta unveils festive range Aryzta Food Solutions has unwrapped its Christmas sweet bakery and hot food-to-go range, with the launch of nine seasonal sweet and savoury products. The festive line-up includes Cuisine de France-branded Cranberry Torsades, Brandy Mince Puffs, Festive Sausage Rolls and Festive Slices. The sweet bakery range comprises Triple Chocolate Christmas Muffins, Linzer Biscuits, Gingerbread Reindeer, Christmas Donuts and Luxury Mince Crowns.

P&H in rescue talks with Carlyle Palmer and Harvey has entered a period of exclusivity with private equity firm The Carlyle Group in its latest bid to stay in business. The proposed deal, which is intended to secure “significant capital investment” will see

SRC asks Chancellor for a shoppers’ budget The Scottish and British Retail Consortiums are looking to the Chancellor’s upcoming Budget for action to support consumer spending and encourage retailers to invest in their businesses. In a document sent to the Chancellor called ‘Helping Shoppers Budget’, the retail trade associations proposed a series of targeted measures to support the industry in maximising its future contribution to the UK’s success and playing its part in supporting the country through a period of profound change and uncertainty. The document proposed that the UK Government: Q Freezes the business rates multiplier in April 2018. Q Keeps the cost of living down

for consumers by not increasing income tax rates for most taxpayers. Q Provides additional ﬂexibility in how apprenticeship levy funds can be spent. Q Works in partnership with retail to enhance the basic digital literacy skills of the large parts of the workforce. Q Ensures business does not face double regulatory charges or new financial burdens from the Withdrawal Bill. David Lonsdale, Director of the Scottish Retail Consortium, said: “Scotland’s retailers are looking to the Chancellor’s Budget for measures which will help consumer spending take wing and stimulate

David Lonsdale private sector investment. With official figures showing 16,400 fewer Scottish retail jobs and 1,831 fewer shops since 2008, injecting some much-needed confidence into the economy is paramount and should begin with keeping down the costs of living and of doing business.”

Carlyle take control of the wholesaler, and remains subject

FASCIAS ‘Gold standard’ for retailers revealed

to ongoing due diligence. P&H

Lifestyle Express shares plans with suppliers

made a loss of £6.6m on sales of £4.4bn last year and has already underwent a refinancing deal with JTI and Imperial Tobacco.

NFRN brings back winter safety campaign The NFRN, in association with TES, has relaunched its ‘Be Seen Be Safe’ campaign. The campaign encourages retailers to ensure that delivery staff – especially children – are as safe as possible on dark mornings and evenings. To help achieve this, the NFRN is offering hi-vis jackets on a buy one get one free basis across all sizes throughout the winter via Shoplink.

Correction In last month’s issue of SLR we accidentally referred to Typhoo Tea as “the runaway category leader in Scotland” when we should have been referring to Tetley who enjoy a 41% share of the market, according to Nielsen figures from June 2017. We apologise for this error and hope

More than 180 suppliers attended the Lifestyle Express annual supplier briefing where they were brought up to speed on the fascia’s plans for the coming year, its focus on core range compliance and its support package for retailers. During the event, held recently in Coventry, Landmark Wholesale MD John Mills and Retail Controller Stuart Johnson shared the latest updates from Lifestyle Express and its vision for the future. Johnson revealed that three category-focused core range projects launched earlier in the year look set to provide an additional £1.3m in sales. “Our focus on filling core range gaps in our stores is really paying off,” he commented, adding that more categories would follow. The event also covered the fascia’s plans for the future. “In the past few months, we’ve carried out a full audit of the estate and our focus is firmly

CHARITY

John Mills on quality rather than quantity,” said Mills. “Our aim will be to work with engaged, committed retailers whose focus is on delivering excellent store standards and retail excellence for their customers.” To do this, Lifestyle Express is introducing a new gold standard for Lifestyle Express retailers to drive up retailing excellence. “We’re going back to basics,” said Johnson. “We’re encouraging our retailers to focus their attention and investment on the four key pillars of retail: providing a clean and modern shopping environment, the correct range, great availability and providing excellent customer service.”

Scotmid’s charity winners get £15k Record-breaking long-distance cyclist Mark Beaumont has presented the firstever winners of Scotmid’s Community Connect award – Dundee-based charity Eighteen and Under – with a cheque for £15,000. Community Connect was launched in May this year to benefit good causes from the sale of single-use carrier bags. Scotmid member and Community Connect’s ambassador, Beaumont, who recently smashed two records during his 79-day cycle around the world, met Eighteen and Under at their local Scotmid store in Fintry, Dundee to congratulate them on winning.

that no retailers were misled. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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AND STILL THE NO.1 ECONOMY RYO* Celebrating a Golden Era

Happy Birthday Gold Leaf!

*ITUK Estimates June 2017

QUALITY

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BLEND

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News OBESITY Consultation on Government’s health plans launched

Co-op opens ﬁve stores The Co-op has embarked on a burst of Scottish store openings, as part of its £11m 2017 expansion plans. Stores in Renfrew and Cardross launched in October, with new premises in Doune, Oldmeldrum and Stirling following this month. All have a focus on fresh, healthy foods, meal ideas and essentials. The £3.4m Scottish investment will create 75 jobs.

Industry charity reveals new summer festival GroceryAid’s Barcode Festival will take place on June 28, 2018 at Hawker House in London. The brand new event will offer excellent networking opportunities alongside games, entertainment, competitions, demos, street food and more. Standard tickets start from £250 and sponsorship packages are available.

Industry weighs up government’s obesity strategy The Scottish Government’s proposals to improve the nation’s health have received a broadly positive reception from the Scottish Grocers Federation and the Scottish Retail Consortium. Measures proposed to help people lose weight include restrictions on the promotion of unhealthy food and drink; a call to ban advertising of junk food before the 9pm watershed; support for manufacturers to reformulate and develop healthier products; action to make food-on-the-go healthier; “strengthening” the current front of pack nutrition labelling scheme; and a range of preventative services. Speaking at the launch of a consultation period for the strategy, Public Health Minister Aileen Campbell said obesity was harming the people of Scotland. “We are putting forward a package

of bold measures designed to help people make healthier choices, empower personal change and show real leadership,” she added. SGF welcomed the consultation. Its Head of Public Affairs Dr John Lee said convenience retailers have a key role to play in facilitating healthier purchasing by consumers and that this would be strongly reﬂected in SGF’s response. “Clamping down on promotions is too blunt an instrument to really impact on consumer behaviour and ignores the great efforts already being undertaken by retailers to promote healthy eating options in their stores and by the wider industry to reformulate their products,” he added. “Promotions are a key way for retailers to demonstrate a point of difference and ensure that they provide the low prices and the value

for money shoppers in Scotland have come to take for granted.” The SRC also backed the Government’s plans, but suggested that tinkering with current nationwide nutrition advice could be a mistake. Ewan MacDonald-Russell, SRC’s Head of Policy said: “A different Scottish approach to labelling could be confusing to consumers and costly to businesses, and consistency of approach across the UK is desirable.” The SRC also called for a “level playing field” in the out-of-home sector, which includes food-to-go, and for restrictions on promotions to be implemented on a mandatory basis. “Government must take care that any measures which limit promotions should be based on clear and relevant evidence,” said said MacDonald Russell.

HOLIDAYS ARE COMING AND SO ARE BIG FESTIVE SALES! Iconic ‘Holidays are Coming’ advert returns to TV! The Coca-Cola Christmas Truck will tour Great Britain spreading festive cheer Stock up now on limited edition Father Christmas festive packs featuring illustrations by Haddon Sundblom

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News INDUSTRY AWARDS Best-one retailer wins £2,000

FASCIAS Own-label wines from Spar

Forfar store is Sher-ﬁre success Spar launches new Congratulations to retailer Umar Sher, whose Best-one 1st Stop 2 Shop in Forfar was named as Scottish Regional Winner at the recent (October 26) Bestway Wholesale Retail Development Awards. The awards are the culmination of a series of development seminars held earlier in the year across the UK. The seminars saw 40 supplier partners share insight and advice across their relevant categories, with the retailers who implemented major changes – based on their learnings – receiving prizes. As well as the accolade, Umer (pictured left, with Bestway MD Martin Race and Mohammed Issa) also collected a cheque for £2,000. Addressing the 400-strong audience which included retailers, suppliers and Bestway Wholesale personnel, Bestway

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Group Chief Executive Zameer Choudrey, said: “Bestway is extremely proud of our RDA programme which over the years has helped thousands of retailers develop their stores to match the changing needs of shoppers. The scheme is unique in the industry and demonstrates our commitment to help retailers

compete against increasing competition on the high street. For our winners, their stores are so much more than being places to buy groceries. They are place to build communities.” Choudrey also reiterated the strength of the independent sector and called on suppliers to support independents.

range of wines

Spar has launched a brand-new range of ownlabel wines targeting specific customer missions and occasions. The first phase of the launch started with the introduction of ‘Everyday Drinking’ and ‘Varietals’ wines. There are five SKUs in the Easy Drinking range. These wines are easily identifiable by their style and value. They are aimed at the customer who is buying a particular quality of wine at a certain price point. The wines are all priced at £5 (75cl) and include Bold Red, Smooth Red, Crisp White, Fruity White and Fresh Rosé. The Varietal range reﬂects current trends in wine and has been strategically sourced for best value. The 12 SKUs (all £6/75cl) are Pinot Noir, Merlot, Chenin Blanc, Cabernet Sauvignon, Chardonnay, Sauvignon Blanc, Tempranillo, Garnacha, Malbec, Pinot Grigio, Shiraz, and Pinot Grigio Rosé. Phase two takes place in spring 2018 when range exclusives and regionals will be added. The launch is supported by a marketing campaign which includes Spar radio, instore POS, newsletters, social media, consumer web features and PR.

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News Extra

Showcasing Scotland Tour

NewsExtra BRUSH UP ON ORAL CARE P44 SCOTTISH BRANDS Regional events will link buyers with sellers

Convenience Matters with the SGF In the twelve months up to March 2017 convenience store retailers in Scotland invested £81 million in their businesses. This is an impressive figure, particularly when we consider that it represents an increase of £10 million on the year before. This is one of the key stats from the Scottish Local Shop Report for 2017. The Scottish report – now in its third edition – is produced in partnership with our colleagues from ACS and has proved to be extremely impactful in helping us to get across key messages about the importance of the c-store sector in Scotland, which still continues to provide forty one thousand jobs. Within the £81 million figure refrigeration is the biggest area for investment. This links to another stat from the report – chilled foods are now the top product category, accounting for almost 18% of total sales. Retailers are clearly responding to changing customer demands and ensuring that they have the right offering in-store. We also know that 73% of independent retailers are funding these investments from their own reserves. On the one hand, it’s good that retailers have sufficient reserves of cash to do this but on the other it could mean that the banks are still not making sufficient funding available to small and medium sized businesses. We can be sure that this level of investment is also a response to the competitive pressures that are still very much a fact of life. However, it is clear that retailers in Scotland are determined to constantly raise standards, improve their offering and respond effectively to changing customer demands.

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Scottish produce on the menu at Showcasing Scotland tour Scotland’s food and drink manufacturers take to the road as demand for locally-sourced produce increases.

Scotland’s local retailers will get the chance to meet up with a huge array of Scottish food and drink companies at a series of regional Showcasing Scotland events next year. Organised by Scotland Food & Drink in partnership with free advisory service Connect Local, the events will bring local and regional buyers and sellers together at a series of ‘speed-dating’ style meetings to help grow sales of locally-produced authentic Scottish food and drink. The events will form a key part of the partnership approach between Scottish Government and industry to promote locally sourced and produced food and drink as outlined in the Scottish Government Programme for Government. A recent survey conducted by industry body Scotland Food & Drink found that 68% of Scots said they value local sourcing and almost half said

that they plan to buy more local food and drink in the future. The announcement comes after over 2,000 meetings took place between 135 Scottish food and drink companies and over 150 UK and global buyers at the two-day Showcasing Scotland event at Gleneagles earlier last month. Showcasing Scotland – West will be the first in the series and will take place on Wednesday 7 March, 2018 at Hampden Park, Glasgow. Further events in Tayside, Highlands & Islands, the East and North East will take place across 2018/19. Fergus Ewing, Cabinet Secretary for Rural Economy, said: “We know that bringing together suppliers and buyers to do business at these types of events has a proven track record of working well. The larger Showcasing Scotland events have been a huge success, with our producers securing www.slrmag.co.uk

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News

significant new business through this interaction. “In taking this concept to regional level, we are enabling more of our fantastic local producers the opportunity to grow their businesses by showcasing the very best of their produce to a range of prospective buyers.” James Withers, Chief Executive for Scotland Food & Drink, commented: “Showcasing Scotland is the most important trade event in our industry’s calendar and by taking the hugely successful event to a regional level, it creates a fantastic opportunity to broaden the range and diversity of Scottish produce available in local markets across Scotland. “We’ve set an ambitious target to more than double the size of our industry to £30bn by 2030. In order to reach this, we need to build on growth opportunities for our exceptional food and drink businesses and help them to sell more in their local markets. This series of Showcasing Scotland regional events will provide businesses with the tools and opportunities to be able to achieve this.” Connect Local, the Scottish Government’s local food and drink marketing advisory service, will provide a series of free workshops for businesses in each region ahead of the Showcasing Scotland events. A unique buyer engagement workshop will also be available. Ceri Ritchie, Project Manager, at Connect Local, said: “Connect Local has developed a programme that will provide support and advice for food and drink businesses who are looking to develop

their commercial capabilities. We are encouraging as many businesses as possible to register for each of the three workshops, which will cover branding, supply chain and sales support and will take place in each region prior to the Showcasing Scotland event. “The series of free workshops will provide a fantastic opportunity for businesses who then go on to attend one of the regional Showcasing Scotland events and will help ensure they are in strong position when meeting with potential buyers.” For more information and online registration, visit the www.showcasing.scot website.

Buying or selling a retail business? If you’re buying or selling a retail-based business, it’s vital that you have a reliable and accurate stock valuation for the business. Whether it’s a convenience store, newsagent, petrol station, sports shop, card shop or retail store, we’ll ensure that your business sales are supported with the professional and accurate stock valuation you need. Our business sale and transfer valuation services include a thorough date check of all stock and margins agreed to maximise gross profit. We’ll agree the correct discounts to be used with all the parties to ensure a reliable and undisputed count, with detailed valuations and certificates produced on the day of the count for immediate use. We conduct business sale stock valuation for businesses across the UK including some of the biggest and best names in retail like Costcutters, Day-Today, Best-One, Londis, Lifestyle Convenience Stores, Mace, Premier, Best-In, Shop Smart, independent Spar stores and Keystores. Whatever your business schedule, we can support it. Stock counts can be carried out to meet whatever time scales you need to follow, including short-notice valuations.

R O TF S UN R O BE SC EM ! DI M W % F NO 10 SG www.slrmag.co.uk

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Photos – Courtesy of Tim Edgeler

Stocktaking:

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stocktaking services to convenience stores, retail stores and petrol stations throughout Scotland and the North of England, with a close eye, always, on maximising your profits. Over 40 years of experience ensures that we deliver a full range of stock counts, data based counts and EPOS stock file updates with a high level of accuracy, to your time-scale. We understand the long hours that you open, and your need to always be available for customers as a vital local business which means you need a stock take completed quickly and efficiently, at a time that suits you and your customers. That’s where we can help. Our many years of experience allows us to carry out your stock take quickly and efficiently, causing minimum disruption to your business, your staff, and importantly your customers.

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Comment

REALITY BITES WITH THE REAL COST OF THE LIVING WAGE

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

The national living wage is a complex subject, fraught with moral as well as commercial implications. There can’t be many retailers out there who disagree with the principle of paying their staff a decent wage – but there’s a commercial reality framework within which that ever-increasing cost has to exist and it’s that commercial reality that is set to have the final say. In crude terms, it’s all very well continuing to hike wages every year but there comes a point when the business paying those wages simply can’t cope any longer and is no longer commercially viable. What happens then? The answers to that question are becoming more obvious every day as more and more retail businesses seek to reduce their staff cost overheads to simply stay alive by cutting hours or staffing levels. Others resort to more drastic methods where people are replaced where possible with cheaper and more reliable technology and machines, self-scan tills being an obvious example. These will be the unintended consequences of a well-meaning government policy – and it’s time that the government really sat up and took notice because this problem could move beyond a tipping point very, very soon. And once we’re passed that tipping point, there may be no return. Some light has been thrown on this issue by a new study carried out by the Institute for Retail Studies of the University of Stirling on behalf of the SGF. The data for the study was volunteered by retailers across Scotland – including our own Woodlands Local – and was designed to try to pin down the true cost of the living wage to retailers, not just the headline £7.50 an hour cost. The actual cost, including all the other add-ons involved such as pensions, national insurance and maintaining wage differentials between different tiers of staff, comes in at a whopping £9.66. That’s an ‘extra’ cost of 29% over and above the headline £7.50 level for those over 24. For a typical convenience store, the increased minimum wage each year probably adds upwards of £3,500 to the wage bill annually. This means that, on a typical 20% margin, the store needs to increase sales by around £17,500 a year just to stand still. That is unsustainable, pure and simple. SGF has sent this data directly to the Low Pay Commission for inclusion in its report and recommendations to the Prime Minister and we can only hope that some note is taken of these findings – and before it’s too late. It’s time for the government to get creative on finding ways to support an industry it routinely describes as invaluable to communities in every corner of this country.

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

DESIGN Design & Digital Manager Richard Chaudhry 0141 222 5300 | rchaudhry@55north.com

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

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

ANTONY BEGLEY, PUBLISHING DIRECTOR 16

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Cover Story

Brexit

BREXIT:

A RETAIL ROADMAP With Brexit negotiations between the EU and UK government appearing to be making very slow progress, the British Retail Consortium has published an important document calling for the rights of retail workers and consumers to be prioritised as part of the negotiations. BY ANTONY BEGLEY

WORKFORCE Q&A

WHAT IS SETTLED STATUS? Settled status is a new immigration status that the UK Government has proposed to the EU as part of the exit negotiations. It is expected to be very similar to Indefinite Leave to Remain granted to non-EEA nationals after five years of continuous residence in the UK. Any disputes relating to settled status would be dealt with by the UK courts. WHAT IS PERMANENT RESIDENCE? Permanent Residence can be acquired by EEA nationals who spent five continuous years living in the UK. Permanent residence provides an ongoing right to be joined in the UK by eligible non-EEA family members without meeting the rigorous financial criteria applied to non-EEA spouses and partners of UK citizens. WHAT IS A TEMPORARY WORKER? A worker engaged in work for period of up to nine months. Temporary workers can often go on to become permanent employees and work in a number of different roles. WHAT IS A SEASONAL WORKER? A worker employed over a particular period of the year, often covering summer and Christmas peaks. WHAT IS NON-GRADUATE LABOUR? Non-graduate labour refers to any individual looking to work who does not have a degree or equivalent NQF Level 6 qualification. Within the Points Based System for Non-EEA Nationals entering the UK to work under a Tier 2 (skilled worker) visa must meet both a salary threshold and a skills threshold. The current salary threshold is £30,000 p/a and the skills threshold is Level 6 (degree level). WHAT IS THE CURRENT SYSTEM FOR NON-EU IMMIGRATION? The non-EU immigration system for the UK operates as a points-based visa category system. Applicants must score a minimum number of points on an assessment test to be eligible for a visa. The test takes into consideration factors such as age, ﬂuency in the English language, and other factors dependent on the specific Tier under which you apply: Q Tier 1, High-skilled workers Q Tier 2, Skilled workers Q Tier 3, Low-skilled workers Q Tier 4, Adult students Q Tier 5, Temporary workers

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ew topics arouse heated debate quite like Brexit, not least in Scotland where all 32 Council areas voted to ‘Remain’. It is hard to believe that the Referendum took place on June 23 last year, coming up for 18 months ago now, yet in that time very little progress appears to have been made on the details of how Brexit is to be executed. Indeed, the picture looks to many to be murkier than it has ever been – and this lack of clarity is causing consternation among many in the retailing industry. One of the few retail industry bodies to be tackling the issue head-on is the British Retail Consortium (BRC), which has published several highly-detailed documents on the topic, making solid recommendations to the UK government as it locks horns with the EU over what is becoming an increasingly fractious divorce settlement. David Lonsdale, Director of the Scottish Retail Consortium, comments: “Six months after the triggering of Article 50 it’s hard to believe we still lack total clarity over the future of the 10,000 EU nationals currently working in the Scottish retail industry. Those workers deserve better. “In stores, head offices, and logistics, EU workers make an enormous positive contribution to the choice, price and availability of goods available to Scottish shoppers. We want to see early certainty about their future working status in the UK for their www.slrmag.co.uk

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sake, but also as it could ultimately affect the choice and availability of goods that Scottish customers have come to expect. “We also need to ensure that Scotland’s future retail workforce has the people, skills and resources to continue meeting the needs of consumers and grow the industry’s huge contribution to the Scottish economy. That’s why we want to see a more ambitious approach from the Scottish Government towards the apprenticeship levy. From April Scots retailers started paying £12m a year in levy fees, but it is far from clear what they are getting in return for this significant extra tax.” The latest BRC report, The People Roadmap, focuses squarely as the title suggests on people – those behind the counter as well as those in front of it: “From distribution to stores and in head office roles, EU colleagues in retail contribute enormously to the choice, price and availability of goods available to shoppers. A lack of certainty about the future status of EU colleagues and the UK’s future relationship with the EU is driving workforce changes that have the potential to impact consumer choice and experience.” The report is the third in a series, following The Tariff Roadmap, which detailed why the BRC believes we need a tariff-free deal with the EU to avoid increasing prices, and The Customs Roadmap which set out the challenges the Government faces in delivering frictionless trade and the steps that must be taken to safeguard a sustainable future for Scottish and UK retail businesses. In The People Roadmap, the BRC focuses on the people issues of Brexit. Drawing on fresh data gathered from members, this research document considers the role of EU colleagues in both the retail workforce and www.slrmag.co.uk

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“Six months after the triggering of Article 50 it’s hard to believe we still lack total clarity over the future of the 10,000 EU nationals currently working in the Scottish retail industry.” - SRC DIRECTOR DAVID LONSDALE

Cover Story

their supply chains and presents the key steps it believes necessary to provide certainty for EU colleagues now and to ensure the UK’s future immigration system meets the needs of the retail industry and its customers. The report rightly points out that the retail industry is going through a period of transformational change that is directly affecting the size and the skills profile of the workforce. BRC estimates that the number of jobs in retail will fall over time but the roles that remain will become more highly skilled. Seeking positives, the report suggests that Brexit could present an opportunity to design a new, sustainable immigration system that recognises the changing nature of retail and has the confidence of the general public. But to make that happen, we need to design a system that recognises the workforce needs of the industry, at all skill levels, while at the same time working in partnership with industry to equip the domestic labour market with the skills of the future. Or, as the report phrases it: “Our aim is to ensure our world-leading retail industry has the people, skills and resources to continue meeting the needs of consumers as well as also grow its huge contribution to the UK economy.”

THE IMPORTANCE OF EU COLLEAGUES While the overall share of EU colleagues in the retail workforce is smaller than other industries such as hospitality and care, a detailed look at where EU colleagues are working within retail organisations and their supply chains clearly shows that certain geographies and retail functions will feel the impacts of the end of freedom of movement more strongly than others. NOVEMBER 2017 | SLR

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Cover Story

Brexit

EU nationals are also critical to the ensuring the nation is fed. The food and drink supply chain represents 13.2% of UK employment and around a third of those individuals are from the EU. Without the right systems in place for retailers and their supply chains, when the UK leaves the EU consumers could be left with less choice and higher prices. According to the Office of National Statistics, around 170,000 EU nationals work in the UK retail industry while around 4% of head office staff are EU nationals. In Scotland, around 4% of the retail workforce are EU nationals – a small but significant minority.

AFFORDABLE CHOICE AND QUALITY The report argues that maintaining the choice and availability of affordable, quality products for consumers is at the centre of achieving a fair Brexit for consumers – and the retail workforce, and the workforce across supply chains, are critical to achieving this. “Since the vote to leave the EU in June 2016, uncertainty has been rife among the workforce and the latest immigration figures demonstrate that EU nationals, unsure about their future status in the UK, are voting with their feet,” states the report. A BRC Workforce Survey from this year suggests that some 56% of retailers say that their EU staff are concerned about their right to remain in the UK. The impact on the availability of workers and the cost of employment could thus be felt by consumers unless the retail industry perspective is recognised as the Government focuses on the post-Brexit labour market.

the BRC in its The People Roadmap report centres around the varying skill levels of EU staff employed in the UK retail industry. EU colleagues clearly work across the retail industry in roles that require different levels of skill. As the employment rate increases, the labour market tightens and the ability to recruit at all skill levels becomes harder. Retailers are increasingly reporting shortages of highly skilled roles. A huge 83% of retailers employ EU nationals in unskilled work, while a much lower 39% employ highly-skilled labour (requiring a degree or professional qualification). In the short term, says the report, it is essential that the UK’s new immigration system provides access to non-graduate labour to ensure the retail industry can continue to meet consumer demand. Over time, as jobs in retail evolve and become more skilled, employers and the Government must work together to provide the right skills for the industry. The UK’s new immigration system must complement the domestic skills base.

MANAGING GROWING COSTS Consumers have already felt the impact of the referendum, through price increases on the goods they buy, as sterling depreciation makes imported goods more expensive. Prices for both food and non-food items have already been affected by the depreciation of sterling following the vote to leave the EU. To date, retailers have worked hard not to pass on additional costs associated with employment to consumers. But as government

interventions such as the Apprenticeship Levy and the National Living Wage continue to increase the cost of employment, retailers have indicated they will find it harder to avoid passing on future costs. Greater competition for workers because of inadequate provisions following Brexit would only add to that growing employment bill. Similarly, an onerous and expensive system of sponsorship of EU nationals in the future would further add to the cost base of retailers. BRC is recommending a simple demandled system that does not require employer sponsorship. The report also highlights the critical need for the ability to move across borders swiftly without the need for visas; many retail businesses in Scotland require to visit the EU in a professional capacity with the minimum of fuss for a multitude of reasons. Again, the report advises taking a pragmatic approach to Brexit by viewing it as an opportunity to ensure a new immigration system rationalises the interplay between the immigration rules and employment law. The current immigration rules for non-EU nationals are often incompatible with UK employment law and employment practices, leaving retailers vulnerable to legal recourse or a loss of their sponsor licence. As the UK Government embarks upon designing a new immigration system for EU nationals, ensuring the two sets of regulations are compatible is essential. The Government should also look to review the immigration rules for non-EU nationals, says the report.

STATUS A PRIORITY To confront this issue, the BRC is calling on the UK government to provide certainty for EU colleagues by having their status confirmed as a priority. “The UK’s offer of settled status in June was welcome, but the UK Government must go further in outlining what the process for acquiring settled status looks like and provide greater clarity about when the cut-off date is, confirming it will not be retrospective,” says the report. Many individuals have already gone through the process of acquiring permanent residence under EU law. For these individuals, an automatic transition to settled status must be put in place, says the BRC. The price for acquiring settled status must also be set a reasonable rate to ensure that all individuals can access it.

RIGHT PEOPLE, RIGHT TIME

BRC RECOMMENDATIONS

The BRC has made the following recommendations to the UK government to help the retail industry successfully navigate its way through the complex years to come: DELIVERING CERTAINTY NOW Q A simple and accessible system for securing settled status. Q Align the date for acquiring settled status to the date the UK formally leaves the EU. Q Automatic transition to settled status for those who have already acquired permanent residence under EU law. A Q Q Q Q

SYSTEM FOR THE FUTURE A simple, demand-led system that does not require employer sponsorship. Access to non-graduate labour from the EU. Effective integration between the new immigration system and UK employment law. Cross-border mobility throughout Europe for business travel without the need for work permits or visas. Q A parallel focus on skills development for the domestic labour force.

The second major set of demands from 20

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News

Products

CEREAL BARS

Nākd range revamped for healthy growth Natural Balance Foods is offering retailers the chance to grab a bigger share of morning sales with the revamped Nākd Breakfast Bars range – fruit, oat and nuts ‘smooshed’ together, designed to appeal to consumers looking for healthier, tasty options to eat on-the-go. There are new recipes for each of the four breakfast flavours: Banana Bread, Apple Danish, Berry Bliss and Cocoa Twist. Additionally, the range now uses gluten free oats and, like all Nākd bars, are made with 100% natural ingredients and no added sugar. The range has less than 100 calories per bar and count as one of five a day. Research shows that UK shoppers bought 20 million fewer packs of ready-to-eat breakfast cereal in the past year in favour of on-the-go options. Marina Love, Marketing Director for Natural Balance Foods, said: “There are 21 billion breakfast occasions a year, but habits are changing. One in 10 are now eaten on-the-go [Kantar, Mar 2016] with consumers aged between 24 and 44 over-indexing in on-the-go breakfast occasions and they’re looking for new, healthier breakfast solutions that are convenient and delicious. Our new Nākd Breakfast Bars offer retailers the perfect opportunity to increase grab-and-go breakfast sales and we’d recommend they place the bars in impulse locations and alongside other morning goods to drive breakfast occasions in their stores.” Nākd is the third biggest selling brand in the Cereal Bar category – worth around £39m and growing at 12% [IRI, May 2017]. The New Nākd Breakfast Bars are available now. The 30g bars come in singles with an RRP of 75p and 4x30g packs with an RRP of £2.49.

ProductNews LIGHT UP YOUR CIGAR SALES P46 FUNCTIONAL DRINKS Tea giant launches vitamin-enriched squash

Tetley tees up growth with move into functional squash Tea giant Tetley is broadening its presence into the area of functional drinks with the launch of a new product which sees it step out of its ‘tea comfort zone’ into new territory in the squash category. The launch will be supported by a £3m investment including TV and ambient advertising, in store activity and a comprehensive PR, social media and sampling campaign. Available this month, Tetley Super Squash is a first of its kind product in the category, a squash based on a blend of real fruit juices enhanced by added vitamins carrying 3 EFSA approved health benefits. Tetley Super Squash will be available in a family sized 850ml

bottle with an RRP of £2.29 (17 servings) and a concentrated pocket sized 50ml format of £2.49 (20 servings). The 850ml format is packaged in a case of 12 and the 50ml in a case of six. The new lines are available in three flavours: Tetley Super Squash Sunshine with added Vitamin D (850ml and 50ml); Tetley Super Squash Boost with

Vitamin B6 (850ml and 50ml); and Tetley Super Squash Immune with Vitamin C (850ml) and Tetley Super Squash Immune with Zinc (50ml). “This is a really exciting development for us,” said Cassie Shuttlewood, Marketing Manager for Tetley. “We believe that health is an untapped opportunity to deliver value in the squash category which has not seen any genuine innovation for some time. “Consumers are looking for more convenient and enjoyable ways to be healthy and we’ve seen from the success of our range of Super Teas how receptive cons to getting the vitamins and health benefits they want from a beverage.”

SPIRITS

Absolut: ‘the world’s most efﬁcient distillery’ Absolut Vodka is celebrating what it says is ‘the world’s most energy efficient distillery’, based on its claim to have the lowest energy consumption per unit produced. Anna Schreil, VP Operations at Absolut Vodka, commented: “Sustainability is in our heritage and has always been integral to the brand. We believe that producers have a duty to act responsibly and that sustainability is a key principle at the heart of any progressive society. That’s why we are proud to be CO2 neutral and transparent about our processes. We have always worked closely with our farmers and have an unwavering commitment to the local community and environment, to ensure sustainability always remains central when we make any decisions about our vodka. We are ‘The Vodka with Nothing to Hide’ and it’s a message that is so important to consumers and one which we feel truly differentiates us.”

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Products

News

Walkers adds Bugles to £1 PMP range Walkers has extended its £1 RSP price-marked pack range to include Bugles BBQ, available now. BBQ is the best-selling

MIXERS Brand pins hopes on new skittle-shaped bottle

Schweppes launches ‘biggest-ever brand spend’

flavour in the range with 56% of sales value. Price-marked packs are the key driver of Sharing growth in the Impulse channel, having contributed 70% of the sharing growth over the last year [Nielsen, Aug 2017]. PepsiCo £1 PMPs currently make up over 50% of the PMP sharing segment in independents and are in double digit growth [Nielsen, Jan 2017].

KP goes nuts for Christmas KP Snacks is launching a new variant to its range of best-selling nut caddies. A Salted Caramel flavour is being introduced into the convenience channel to help drive basket spend with shoppers looking for sharing snacks over the festive season.

Schweppes, the nation’s favourite mixer brand, has announced its biggest GB investment in over 200 years. Responding to the growing demand for premium mixers, the investment includes the launch of a new premium skittle-shaped bottle that pays homage to its longstanding heritage and a multi-million pound marketing campaign. Now available, the new Schweppes bottle is modelled on the original Schweppes skittle which was blown and formed in

a single piece by inventor Jacob Schweppe back in 1783. In a respectful nod to the brand’s original design, the curves will be reinstated delivering a shape which helps create optimum effervescence. The range is available in a variety of formats including 200ml glass bottles, 1L PET bottles and multipacks of 6x150ml and 12x150ml cans. The Schweppes Classic range is being supported by a £6.6m campaign running until

December which includes out-ofhome, TV and cinema advertising as well as sponsorship of the Jonathan Ross Show, along with experiential marketing and a digital campaign. Simon Harrison, Customer Marketing Director GB at CocaCola European Partners, said: “The last quarter of 2017 is going to be massive for the Schweppes brand. We’re confident the new campaign will drive sales and category growth for our customers.”

KP Nuts is the leading nuts brand in the UK with a 17.3% share of the market and valued at £56m and some 39% of all KP nut sales take place in the run up to Christmas [Nielsen, May 2017]. The core KP Nuts caddie range consists of Original Salted, Dry Roasted, Honey Roasted and new Salted Caramel. The RSP is £4.

Chiquita pretty in pink Chiquita Brands International added a splash of pink to the UK’s fruit bowls in support of

ENERGY DRINKS

Lewis Hamilton roars up to Monster factory Three-time Formula One World Champion Lewis Hamilton surprised local employees at the Coca-Cola European Partners factory in Milton Keynes recently with a visit to see first-hand where Monster Energy products are made. As part of his visit, Hamilton was given a tour of the factory, where he heard about the manufacturing processes behind Monster Energy products, as well as meeting some of the team who produce his signature drink. He then held a meet and greet session with employees.

FUNCTIONAL DRINKS Purdey’s new cans

Breast Cancer Awareness Month.

Purdey’s launches ‘OnThe-Go’ format

The banana producer added a

Britvic has extended its range for multivitamin drink brand Purdey’s with the launch of a new 250ml can format (RSP £1.19). The new design has been launched in a price-marked pack to drive positive price perception and increase stand-out on shelf. The launch is being supported by a £3m above- and below-theline brand campaign.

UK, as part of a campaign to

distinctive pink sticker to more than one million bananas in the sticker more than 100 million Chiquita bananas worldwide. Chiquita is hoping its stickers will bring the important topic of breast cancer to the public’s attention. The stickers combine Chiquita’s blue and yellow Miss Chiquita logo with the global campaign’s famous pink ribbon to create a highly visual addition to the effort to raise awareness.

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News

Off-Trade

Glen Keith available as single malt Pernod Ricard UK is adding

Off-TradeNews

one of Speyside’s best-kept secrets to its range of ‘Expertly Selected Whiskies’ – Glen Keith, Distillery Edition. Glen Keith has previously been reserved for use in premium blended whiskies and for rare cask releases. The Distillery Edition is the first Single Malt expression from the

MAKE THE MOST OF A BIG NIGHT IN P50 SPIRITS Premium brands predicted to drive festive sales

Diageo urges retailers to ‘Inspire, Display, Sell’ this Christmas

distillery to be made available at an accessible price. Available now, Glen Keith has an ABV of 40% and an RSP of £30. It is available in 6x70cl cases.

Filshill craft beer vid online JW Filshill has added a ‘Growth of Craft Beers’ video to its collection of ‘Leading The Way’ films. The helpful overview can be found at www.filshill.co.uk/ leading-the-way alongside nine other informative clips.

Jacob’s Creek Aussie rosé with French twist Jacob’s Creek, the best known and fastest growing Australian wine brand, is launching a new French-inspired premium Rosé, Le Petit Rosé (RSP £8), available from early October. Whilst made from Australiangrown grapes by winemakers

With 28% of annual off trade alcohol sales taking place over the festive period, Diageo has extended its My Store Matters advice to help retailers tap into this huge sales opportunity. An extension of the ‘Inspire, Display, Sell’ initiative, the advice sets out to highlight how retailers can drive sales across the Christmas period, including tapping into

the ‘last minute’ opportunity presented by early supermarket closures on Christmas Eve . One of the key sales drivers identified by Diageo is the growing trend for Premiumisation. With two in five premium Spirits purchased in the 13 weeks before Christmas, and Premium Spirit sales in the Impulse category currently

seeing significant growth, Diageo believes it is crucial that retailers get their Premium range right and merchandised correctly in the run up to Christmas. Gin in particular has been the number one contributor to total spirits performance in the Impulse channel over the last year, and its popularity shows no signs of slowing down. However, Gin only accounts for 6% of Total Spirits in Impulse vs 15% in Grocery Mults [Nielsen, Sep 17], so there is still significant headroom for growth in the Convenience channel, particularly during the 12 weeks of Christmas. Another key sales driver is gifting, with 50% of shoppers on this mission looking to buy alcohol [Kantar, 2016]. To tap into this, Diageo is urging retailers to increase visibility of alcohol brands, using gift cartons where relevant, in order to drive impulse purchase and trip spend.

in Australia, the wine reflects the savoury style of Rosé that is common in the Southern French

WINE

countryside, tapping into the

Nisa wine range adds gongs

rapid growth of Provençal Rosé.

Stewart Brewing among the winners Scottish craft brewer Stewart Brewing has won three prizes at the second annual Scottish Beer Awards. The brewery took home the title of Product Development Team of the Year for its innovation in creating a variety of classic and limited-edition beers, while co-founder, Steve Stewart, beat off tough competition to be crowned Master Brewer of the Year. Stewart Brewing craft beer, They’re Coming to Get Rhu

Nisa’s five-strong own label Heritage wine is proving a hit with consumers and judges alike since launch earlier this year. The Shiraz and Sauvignon Blanc variants both won awards recently at the Local Shop Quality Drink Awards and now they have been shortlisted in the Quality Drink Awards for the Best Wine Under £7 category in both the white and red sections. One Nisa member reporting success with the Heritage wine is the Proudfoot Group. Valerie Aston, CoDirector at Proudfoot, said the entire range has been doing well in-store ever since it arrived following the presell at Nisa’s exhibition in April. “We received the initial stock which we featured on an end in-store and held in-store sampling,” she said. “It’s really good quality but customers often just go by the name of a wine and buy the ones they know so we wanted people to try it and understand the quality of it. We have a real call for a wine in this price bracket. A regular, ongoing available wine at £4.99 or less is perfect for us and to get that across the whole mix of varietals is ideal. “It is certainly working for us with all five wines selling well, although the Sauvignon Blanc and the Chardonnay are certainly our best sellers. Heritage is a really good everyday wine and I believe the quality is better than the average everyday wine and what’s more, our customers know they can get it at a good price on an ongoing basis.”

Barbara, also won Gold in the Best Sour Beer category. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | NOVEMBER 2017

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www.slrmag.co.uk

02/11/2017 15:43:53

Off-Trade

News

BEER New Lager Lovelies have seen better days

Still game for a Tennent’s? Scotland’s favourite pint, Tennent’s Lager, has partnered with Scotland’s best loved sitcom Still Game to add two more wellknown faces to the list of Tennent’s Lager Lovelies – Jack Jarvis and Victor McDade. Scotland’s most famous pensioners have been made up as lovelies and given their very own two pints pr*ck pack, as a homage to one of the show’s best-known lines. Limited numbers of the pack are available to pre-order now online exclusively through www. flavourly.com/products/stillgame-gift-pack/ making it the perfect Christmas gift for punters dreaming of a pint of Tennent’s in The Clansman. Fans of the show will be able to see Jack and Victor in a whole new light as Lager Lovelies, and if they open the collectors pack and crack a can, they’ll enjoy a taste of Scotland’s favourite lager from a special edition two pints pr*ck glass. Having said that, with limited packs available, punters

might want to make sure they keep the collectors’ items in mint condition. Alan McGarrie, Head of UK Brand Marketing at Tennent’s, commented: “We’re massive fans of Still Game at Tennent’s so this special edition pack is very close to our hearts. We’ve been watching Jack and Victor’s exploits since the show began

15 years ago, and it’s fair to say they’ve got better with age! “While we’ve no plans to bring back the Lager Lovelies in their original form, this was an opportunity to see Scotland’s two favourite pensioners in a situation nobody could have imagined – so it was too good to pass up! Packs are sure to sell like hot cakes, so make sure you get in quick.”

LIQUEURS Limited edition back for autumn

Baileys Pumpkin Spice returns Baileys, the world’s number one selling liqueur brand, is relaunching Baileys Pumpkin Spice Cream liqueur this autumn following what the company says was a successful launch in 2016. The seasonal variant blends Baileys Original Irish Cream liqueur with the flavour of the autumnal spices cinnamon, cloves and nutmeg. The line will be available throughout the autumn season. Clare Patterson, Baileys Europe Brand Manager, commented: “Last year, 40% of Baileys Pumpkin Spice Cream liqueur shoppers were incremental to the cream liqueurs category, driving its growth by 17% [Nielsen, Mar 17].”

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The relaunch of Baileys Pumpkin Spice Cream liqueur will be supported by the ongoing six-figure marketing investment in the Baileys brand, which focuses on social media activity and strategic sampling across the UK. It will also be integrated into the sponsorship of hit TV show Made in Chelsea, which is part of a wider reaching media campaign for the brand, including digital, cinema and online. The bottle features the same autumnal wrap design that customers will recognise. The 70cl bottles will have an RSP of £14 and will be sold in cases of six.

Q: With Christmas stock ordering underway I’ve been offered a deal on liqueur chocolates, is this alcohol and what are the rules? The definition of alcohol expressly exempts alcohol contained in liqueur confectionery provided the alcohol content is not greater than 0.2 litres of alcohol (of a strength not exceeding 57%) per kilo of the confectionery, and consists of separate pieces weighing not more than 50g, or if more than 50g is designed to be broken into such pieces for the purposes of consumption. Assuming the product complies then the confectionery can be displayed anywhere in store as it is not technically alcohol. Regardless of the liqueur confectionery’s location it is important to note that the 2005 Act makes it a criminal offence to sell liqueur confectionery to a child (i.e. a person aged 15 and under). Therefore, it is important that staff take appropriate steps to ID anyone buying such a product who appears to be under the age of 16. Q: For Christmas I’ve ordered a boxed product of Port and cheeses. Do I display this in the food or alcohol chillers? Given it is a packaged product containing alcohol you must display it within the chillers in the authorised alcohol display area. Q: I know that I need to display a notice that complies with Section 110 of the licensing legislation that states that it is an offence for a person under 18 to buy alcohol, however, my local licensing standards officer tells me it must be A4 in size and should be at every point of sale. Is that correct? A: Your licensing standards officer is spot on – the sign must be at every point of sale and be A4 in size. You should also consider displaying Challenge 25 signage as a matter of good practice so to evidence that the store has an age verification policy and therefore complies with the mandatory condition.

NOVEMBER 2017 | SLR

02/11/2017 15:43:54

News

Newstrade

Glamour magazine shifts to digital The December issue of Glamour

News& Magazines

magazine will be the last time the title is published monthly, as publishers Conde Nast shift their focus to digital. The women’s fashion magazine will now be published in print format only twice a year. Conde Nast said these collectible, glossy issues would be the “ultimate beauty bible and style guide for the coming season”. The move to a “mobile-first, social-first strategy” follows a steady decline in circulation figures with recent average print

KEEP ON TOP OF THE LATEST NEW PRODUCTS P42 LOYALTY PROGRAMMES Newstrade steering group gets to grips with Sun scheme

RETAILERS START COLLECTING £5 FOR EVERY SUN SAVERS SIGN UP! Spar Renfrew’s customers are on the fiver trail.

COLLECTING FIVERS – HOW IT WORKS:

circulation of just over 275,000 compared to an average figure

Q Customers – simply join online or download the Sun Savers app and collect £5 for every 28 copies of The Scottish Sun they buy.

well over 544,000 a decade ago. The circulation has been falling at around 25% year-on-year. In a blog post, Glamour said: “Our new digital first strategy

Q Independent retailers – collect £5 for every customer they sign-up who then starts using the app or website.

for the new year will have our customer – and our reader – at front and centre more than ever. “From the latest products for the beauty obsessed; to catwalk and street style trends and how they translate to real life; to interviews with the world’s most

Giacopaazi’s Milnathort are already collecting fivers.

talented beauty experts; to our fabulous Beauty Festival which will get bigger and better across every platform; and a raft of additional events, Glamour will provide beauty in every aspect of life. “All this expertise and industry leadership will be celebrated in a biannual, collectible, glossy tome that will answer your every beauty desire. Boasting contributing editors from the forefront of every creative field, the new Glamour will be every beauty dream come true: iconic; topical; engaging; inspiring.”

The second meeting of the Scottish Newstrade Steering Group (SNSG) took place last month as retailers from across Scotland gathered at News Scotland’s offices in Glasgow to plan the next phase of activity to push news higher up the agenda and drive larger sales and profits from what remains a massive category in Scottish local retailing. A key focus for the Group was in getting fully to grips with the Sun Savers initiative, the richest loyalty programme in the UK. At the meeting the Group were

taken through the sign up process for customers via the easy-to-use smartphone app and learned that all independent retailers in Scotland will earn £5 for every customer that sign up to the app who then goes on to start collecting barcode scans every time they buy a copy of The Scottish Sun. The win-win programme gives customers £5 every time they reach 28 scans, regardless of how long it takes to collect them. Equally good news for local retailers is the fact that that they too will receive a £5 incentive for every customer sign-up achieved in their stores – with no cap. Chris Gallacher, Managing Director of Scotfresh and a member of the SNSG, commented: “I couldn’t believe how easy the app was to

use and it’s brilliant news for us as retailers that we collect £5 every time we sign someone up. We will definitely be working hard with our staff to get the message across to our customers. Who wouldn’t want free cash?” To help retailers sign customers up, News Scotland has produced a range of POS to drive awareness in-store. “The POS is great and will be very useful but I think the real success will come from getting our staff involved in signing customers up,” said Joanna Casonato of Giacopazzi’s in Milnathort and Kinross. “It’s our staff who know our customers best and who will be able to engage with them and encourage them to download the app.” Since the meeting of the Group the News Scotland team has been busy implementing the Sun Savers POS in stores across Scotland and retailers and customers are already cashing in. If you would like to get involved, email: growsales@news.co.uk

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

SLR | NOVEMBER 2017

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www.slrmag.co.uk

02/11/2017 15:43:54

NEWS: THE NATION’S FAVOURITE UK consumers are addicted to news

91%

of UK adults consume a newsbrand… that’s more than Google!

73%

consume a popular daily newsbrand, like The Sun

72%

consume a quality daily newsbrand, like The Times

61% In Scotland…the love is even stronger

read a print newspaper or magazine

that’s

4.3 m 95% of Scottish adults consume a newsbrand

people consuming newsbrands & magazines

78% read a print newspaper or magazine

Feel the love in your store Newsbrands reach

1 in 3

main shoppers everyday

NEWS

17m 16m

More people consume a newsbrand each day than eat a packet of crisps

The Sun is the largest selling branded product in Tesco’s* *after plastic bags

Source: NRS/AMP PADD, June ‘16 - July ‘17, total monthly print and digital reach

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02/11/2017 15:43:55

Inside Business

Research Digest

SHOPS ‘LOSING £800M A YEAR TO SHOPLIFTING’

Data collated on behalf of security firm Checkpoint Systems from a survey of English and Welsh police forces reveals that shops are losing an estimated £800m a year to shoplifting. The report investigated the total number of shoplifting offences recorded by 43 police forces/constabularies across England and Wales in the 2016-17 financial year. It found that the Metropolitan Police had the highest number of shoplifting offences at an astounding 47,580 – equivalent to 130 incidents a day. The Met was closely followed by West Midlands Police, who had 19,741 reported incidences. Third was Greater Manchester Police, with 18,002 offences. City of London Police had the lowest number of shoplifting cases, with only 729 reported – equal to just two occurrences every day. Second-lowest was Dyfed-Powys Police, with 1,533 shoplifting offences – more than double the figure recorded by the City of London force.

ONLINE GROCERY THREAT SET TO ESCALATE

New research from IGD suggests that online grocery is set to be the fastest-growing segment of all UK grocery channels in the next five years.

he UK food and grocery market is worth £184.5bn, and online grocery currently accounts for £10.4bn of this. Although supermarkets and hypermarkets will still hold the biggest share of the market in five years’ time, online grocery retail is forecast to be the fastestgrowing segment of all UK grocery channels, according to grocery research organisation IGD, with latest figures predicting growth of 53.8% between 2017 and 2022 to £16bn. The move represents a threat or an opportunity for local retailers, depending upon how they approach the challenge as shoppers are increasingly turning online for their food and grocery purchases, with two out of five (42%) UK grocery shoppers now using online as part of their grocery shops every month, while three out of five (60%) plan to shop online for groceries and have them delivered to their home in the next two to three years. Those who already shop online are also doing so more frequently. Some 28% of online shoppers claim to shop once a week or more online, compared with 20% in 2013. Online delivery saver passes are helping to lock in shopper loyalty and increase frequency of

shops, with 29% of online shoppers claiming to be subscribed to this type of scheme. Speaking at IGD’s Online & Digital Summit, IGD’s Shopper Insight Manager, Vanessa Henry, said: “More shoppers are engaging with online grocery shopping than ever before. What’s interesting is that, on the whole, online is not being used in isolation. “What we call ‘omnichannel shoppers’ are having a big impact on the grocery market, with over half (54%) of shoppers claiming that they use five or more different channels every month, as well as buying from 12 different store brands on average. Retailers should therefore consider how they are driving loyalty so that they become the brand of choice, for example with online delivery saver passes or special promotions.” IGD research suggests that the most popular combinations for online shoppers are using online and larger stores, and online and convenience stores. A significant 40% of shoppers said they have used either a blend of online and supermarkets or hypermarkets and convenience stores in the last month for their food and grocery shopping. But there is still huge potential to grow the online opportunity in the future.

RETAIL SALES UP 1% IN SEPTEMBER The latest SRC-KPMG Scottish Retail Sales Monitor for September 2017 found that sales in the month increased by 1.0% on a like-for-like basis compared to September 2016, when they had decreased by 0.4%. Total sales in Scotland rose by 1.1% compared with September 2016, when they had declined by 0.6%. This is a better performance than the three-month and 12-month averages of 1.0% and -0.3% respectively. Adjusted for deflation measured at 0.1% by the BRC-Nielsen Shop Price Index (SPI), August sales grew by 1.2%. Total Food sales in September increased 5.0% versus September 2016, when they had increased by 0.7%. This makes the 12-month average growth 2.7%, the highest since Dec 2013. Ewan MacDonald-Russell, Head of Policy and External Affairs at the Scottish Retail Consortium, said: “[It was] a bumper month for grocers as strong food sales helped overall Scottish retail sales grow by 1.2% in real terms. Food sales growth of 5.0% have pushed the 12-month average up to the highest level since December 2013. “There is evidence however that rising inflation continues to soak up a large proportion of household earnings which should provide politicians considering imposing costs on consumers with serious food for thought.” 28

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www.slrmag.co.uk

02/11/2017 15:43:55

Research Digest

Inside Business

DEEP DISCOUNTS ‘ATTRACT CHERRYPICKERS WHO DON’T BUY AGAIN’ Retailers’ deep discounting strategies to acquire new customers can prove a costly mistake, according to fresh research.

ustomers whose first purchase is discounted by over 30% are less likely to buy from that brand again, in a blow to the sales strategies followed by many retailers in the upcoming holiday season. This is one of the key findings of a survey from customer engagement specialists Optimove, who found that slashing prices is a major strategy for acquiring new customers, particularly in the last months of the year, but data shows that as the discount rises over 30%, retailers are in danger of attracting ‘cherry pickers’ who buy a single bargain, but will not be drawn by the discount to buy more from the retailer at a later date. While the survey was exclusively of online shoppers, there are potentially lessons to be learned for convenience retailers. However, of the customers whose first purchase is a discounted item, discounts of 5% to 30% do help to ‘charm’ individuals. Up to the level of the 20% discount mark, the likelihood of this customer making a second purchase rises. But items discounted by 30% or more are likely to bring in ‘cherry pickers’. These customers have little future value, so the large discounts aimed at them can make a negative impact on the bottom line. This could be an open goal for retailers ready to focus on customer retention and get ahead of the competition, as a recent report by Ernst Young found that only 5% of retailers believe their customers remain loyal, and only 24% see retention as a top priority. Alon Tvina, Managing Director of EMEA for Optimove, commented: “Getting discounting strategies right requires a deeper understanding of different types of customers and their behaviours. Using discounts smartly to attract customers and keep them will give retailers an opportunity over the coming months to convert one-time buyers into loyal, returning customers. But to do this they will have to look at the data, testing the impact of their strategies on customer engagement rather than short-term sales, and adjust offers accordingly.”

BRC ECONOMIC REPORT PAINTS MIXED PICTURE The British Retail Consortium’s Economic Report for September has highlighted that the latest data available have only added to the puzzling performance of the UK economy. Unemployment is now at its lowest level in more than 40 years, but wage growth remains subdued. In the three months to July, unemployment dropped to 4.3%, its lowest level since 1975, while wage growth remained stubbornly low, at 2.1%. The growth of lower-paid and part-time jobs in sectors with lower levels of unionisation has been fingered as the major cause, while under-utilisation of self-employed people may also be providing hidden “slack” in the labour market that has put a break on wage growth. Inflation continues to drive down real wages. Annual Consumer Price inflation increased in August to 2.9%, up from 2.6%, well above nominal wage growth. Overall, Non-Food prices increased at their fastest rate in 25 years. The Shop Prices Index, which focuses on entry level goods and contains fewer premium range products, also showed the lowest rate of deflation since May 2013. www.slrmag.co.uk

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NOVEMBER 2017 | SLR

02/11/2017 15:43:56

Inside Business

SGF Interview

GATHERING MOMENTUM AS THE CENTENARY LOOMS Under the stewardship of Chief Exec Pete Cheema, the Scottish Grocers’ Federation has tripled corporate membership and quadrupled corporate revenues – but there is plenty still to do as the Federation approaches its landmark centenary year, he tells SLR. BY ANTONY BEGLEY

he long-term retailer-turned-Chief Executive Pete Cheema, boss of the Scottish Grocers’ Federation (SGF), is well acquainted with the real issues that affect Scotland’s local retailers daily – and it’s that grounding at the sharp end of retail that has informed his strategy since he took over in 2015. “I came into the job with my retailer hat still very much in place and I was committed to ensuring that the Federation made working tirelessly for retailers its number one priority,” says Cheema. “I’m pleased to say that I’ve had full buy-in from everyone at SGF on that front – from the National Executive to the team that work so hard at Federation House – and I believe

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that the last 12 months has demonstrated quite clearly that SGF is in a better place today than it has been for a long, long time.”

FINANCIAL STABILITY One of the first challenges Cheema and his team faced in 2015 was getting the Federation back on an even financial keel because none of the work that it does on behalf of retailers could be achieved without funding. “The Federation wasn’t in great shape financially, so we knew we had to get that fixed and quickly,” he explains. “There was so much work to be done but we needed financial stability to allow us to tackle it, so we worked very hard at steadying the ship

and giving us a sound financial footing.” The results are there for all to see. Corporate membership has tripled since Cheema took over with some 25 companies joining as members in the last 12 months. Similarly, corporate revenues have quadrupled over the same period. “The improvement in the financial health of SGF has been dramatic and that has been critical in allowing us to invest in developing the infrastructure and team that we needed to deliver on all of the other fronts where so much work is required,” comments Cheema. “Vital work like lobbying, communications, advice and events. All of that costs money.” Ably assisted by Head of Policy & Public Affairs, John Lee, Cheema has also focused on driving more active engagement with all industry stakeholders. He explains: “Historically, SGF hasn’t always enjoyed the profile it maybe should have because it didn’t always communicate what it was doing well enough to retailers, wholesalers, suppliers and others. It’s really important that retailers in particular see and understand all the work we’re doing on their behalf – because that drives enthusiasm and, ultimately, engagement. And it’s positive, proactive engagement that we want with, and from, retailers. That’s the only way of ensuring we truly represent their wishes and concerns when we deal with politicians, the trade press, other trade bodies and the many influencers out there.” www.slrmag.co.uk

02/11/2017 15:43:56

SGF Interview

Inside Business

SGF was named Best Food & Trade Federation this year.

LOBBYING The last 12 months saw SGF busy on several lobbying fronts, not least on the new vaping regulations that came into place on April 1st and the new rates for the National Living and National Minimum wages which came into force on the same day. “We produced a retailer guide on the new Nicotine and Vapour Products regulations, fully endorsed by the Scottish Government, to help retailers ensure they stayed the right side of the law, which went down well, but we have a lot of work still to do on the minimum wage,” says Cheema. “For the first time, however, we have direct engagement with the senior team from the Low Pay Commission which allows us to properly present retailers’ concerns to the team making the decisions.” This is indeed a step change and SGF, working with a number of retailers across Scotland – including SLR’s own Woodlands Local – has already started a ground-breaking project with the Retail Studies Institute at Stirling University to analyse the true cost of employment – not just the flat cost of the wage rises. Early findings show that retailers face a real cost of employing staff 29% higher than the actual national living wage per employee hour. “Our goal in all of our lobbying work is to influence the political agenda as much as we can and create a policy environment that supports retail,” summarises Cheema. www.slrmag.co.uk

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The establishment of the Cross-Party Group (CPG) on Independent Retail is a product of that thinking and there’s no question the consistently well-attended CPG meetings are raising retail’s presence at Holyrood. A key achievement of the last year for SGF has been working with Daniel Johnson MSP to take forward legislation in the Scottish Parliament to give shop workers the same legal protection from assault that emergency workers currently have. “This is the first time that SGF has essentially sponsored legislation in the Scottish Parliament and is a great example of our growing reach and influence,” says Cheema.

PARTNERSHIP APPROACH Cheema and Lee have also dedicated substantial amounts of time to creating partnerships with relevant bodies and organisation that have direct and indirect input into the Scottish local retailing sector. As a result, SGF now sits on a vast array of groups and committees including The Scottish Alcohol Industry Partnership, The Scottish Anti-Illicit Trade Group, the Ministerial Working Group on Tobacco Control, Scotland’s Town Partnerships and the Scottish Retail Consortium. So life is busy for Cheema these days, but with all those years as a retailer behind him, long hours and hard work are nothing new. “I’m working as hard as I ever have,”

he laughs. “But I’m enjoying it and we’re making real progress and it’s very satisfying to be delivering for Scotland’s retailers.” As well as a raft of advice and guidance publications for retailers on everything from rates revaluations, planning, e-cigarettes and the Healthy Living Programme, the Federation has also found time to move up a gear or two when it comes to hosting industry events. This year saw a calendar full of events and next year looks like more of the same. The date and venue for next year’s SGF Annual Conference has already been confirmed – October 25 and 26, 2018, Crowne Plaza, Glasgow – while a celebratory publication looking back at 100 years of the Federation will be made public for the first time on March 21, 2018 at the City Chambers in Edinburgh. The Federation’s Crime Seminar, Networking Event and Study Tour will all return too, as will an extra special Centenary Annual Golf Day at one of Scotland’s most prestigious courses. “It’s been a hectic year once more but a very satisfying one,” concludes Cheema. “We remain entirely committed to working tirelessly for retailers and all I would ask is that they engage with us whenever possible. It’s only by working together that we can make the best use of our resources at the Federation – and that is in the entire industry’s best interests.” NOVEMBER 2017 | SLR

02/11/2017 15:43:57

Inside Business

Feature | Forecourts Special

GETTING CLOSER TO CUSTOMERS KEY TO FORECOURT FOOTFALL Today’s forecourts are increasingly adopting innovative customer engagement strategies to drive up spend and profits as well as helping transform customer perceptions of what a modern forecourt looks and feels like.

he once humble forecourt has undergone something resembling a revolution in recent years as the leading operators have shown themselves increasingly willing to adopt not only the latest retailing thinking and strategies but also some of the most up to date customer engagement strategies to build loyalty and change customer perceptions about the very nature of retail in a forecourt environment. The ‘one size fits all’ approach that characterised many forecourts is long gone as more progressive operators have realised that every forecourt must be tailored to its specific customer base’s needs just as precisely as all convenience stores have learned to do.

“We know that a ‘one size fits all’ approach simply doesn’t work for dealers and that’s certainly the case with promotions,” says Anne Day, Brand Communications Manager at JET. “Our aim is to give our dealers choices as they are much closer to their customers than we are and know what will and won’t appeal to their customer demographic. “By taking a different approach to consumer engagement and getting closer to consumers, we’ve been able to address the challenge that fuel companies and forecourt owners face in driving brand awareness and highlighting promotions or campaigns beyond the forecourt. Using digital channels and novel advertising outlets

AYRSHIRE RETAILER OPENS SECOND JET FORECOURT Ayrshire-based forecourt owner Brian Connolly has added a second JET forecourt to his portfolio following the success he enjoyed after a major refurbishment and expansion programme at his first forecourt operation, JET Maybole which saw the site quadrupled in size to 4,000sq ft. Two years on and Brian has now bought a second service station – this time in Dalmellington, 10 miles from his Maybole site. The Dalmellington forecourt is located on the Galloway Tourist route, which runs from the A74(M) at Gretna to Ayr and is popular with caravans and bikers. Although it is still early days, Brian is already putting his own stamp on the three million litre per annum (mlpa) JET-supplied forecourt, which has eight nozzles and a separate fast delivery diesel pump. Bunkering fuel is popular with passing HGV vehicles, which wasn’t an option for Brian at Maybole due to a lack of space. The 1,000sq ft convenience store is currently supplied by Booker. JET has supplied Dalmellington’s fuel for more than 15 years and, when he bought the site, Brian quickly signed a new five-year contract with JET. He explains: “JET have been my supplier at Maybole for some 13 years now and have never once let me down. As well as being a really strong brand in the local area, JET’s offer is competitive and I know that I can rely on them to help me mirror the success of JET Maybole.” Brian has already made some changes at the site and is excited about future developments. A Costa Coffee machine has already been introduced and is helping to drive forecourt footfall, with sales averaging sales 90 to 100 cups per day. Over the next few weeks, state-of-the-art jet wash, air and vacuum facilities will be introduced, as well as a 24/7 ‘Revolution’ outdoor self-service launderette, which Brian believes will help increase footfall.

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has enabled us to reach new audiences.” That fresh approach was born out of independent research commissioned by JET which “unveiled a clear opportunity to change perceptions of the brand, build brand awareness and tap in to the potential under45s market by getting closer to them”. Off the back of these findings, JET has spent the past 12 months rolling out a raft of consumer engagement activities with the main emphasis on off-site activities to capture new consumers. These activities included a nationwide Summer Promotion with Amazon.co.uk, consumer engagement at Silverstone Classic 2016 where JET was the ‘Official Fuel Partner’, a digital app-based advertising campaign run through Waze (the world’s largest community based traffic and www.slrmag.co.uk

02/11/2017 15:43:57

Forecourts Special | Feature navigation app), ‘Skint’ – a nationwide prize draw promoted via bus and digital advertising, targeted consumer communications to JET’s database of over 47,000 consumers and an ongoing programme of Facebook and Twitter advertising and activity. The results have been extremely positive. During the Amazon promotion, volumes across JET’s network rose by an average 2% compared to the preceding period and the top 10% of sites had a volume increase of 4%. When JET ran an advertising campaign on Waze, it reached over 800k Waze users the UK, with 26,000 users proactively engaging with the JET advert and 6,000 clicking through to the final element of the app where they were given directions to their nearest JET forecourt. The adverts on Waze resulted in £61k worth of fuel purchases and one JET site saw a 22.5% increase in fuel sales during the three-month trial period. JET has since continued to advertise through Waze and the results are proving even more encouraging, with over 23 million impressions, 43,057 advert clicks and 15,281 direct navigations to a JET site in the period from June to the end of September. “I think the key to the success of our consumer engagement has been making it very highly targeted,” adds Day. By capturing consumer data through

a number of elements in its integrated consumer engagement initiative, JET can now deliver highly-targeted consumer marketing and communications in the future.” Innovation is also at the heart of the fuelService app rolled out across its UK network by Motor Fuel Group (MFG), the second largest independent forecourt operator

in the UK with 424 stations operating under the BP, Shell, Texaco, JET and Murco fuel brands. The free fuelService app has been launched to enable disabled drivers to re-fuel their vehicles more easily by helping the driver find a local petrol station and asking them if they will be able to assist before they even arrive. Once at the petrol station the driver can use the App to tell the petrol station they have

Inside Business

arrived and which pump they are at, making them easy to spot. The driver is told via the App how long the attendant will be before they come out to help, so they are not sat waiting in hope. Forecourt retailer Euro Garages is one of the latest to invest in PriceAdvantage fuel price management software, now partnered with TLM Technologies to push sales in the UK. PriceAdvantage software allows fuel marketers to easily gather competitor prices, replacement costs, historical data and market insight as well as leverage economic modelling to determine and push new fuel prices to the street faster and more accurately, according to TLM. Also driving innovation is Mahmood Saleem, whose recent upgrade of the JET Ardeer Services in Stevenson scooped him the Retailer of the Year Award at our SLR Rewards earlier this year. Among the improvements made during his £1.5m transformation of the site was the installation of a tobacco vending unit from Navarra Retail Systems in his Nisa store. Stock is stored securely in an upstairs cabinet and then simply fed to the till via a chute when counter staff use touch-screens to select a tobacco product. The system is integrated into the Epos, so if a product is out of stock, staff are unable to complete the sale at the till.

Critical support services, EPOS & technology solutions for convenience & fuel retailers

TLM Technologies provides world-class technology and support to convenience and fuel retailers. Providing EPOS, back office and head office solutions, we develop unique technologies and integrate the systems necessary to make smarter, more profitable decisions. We also provide the critical services retailers rely on to keep operational, including systems support and pump maintenance. To find out how TLM can support your business call: 0845 1800242

www.slrmag.co.uk

SLR November 2017.indd 33

Intelligent retail for

email: info@tlmgroup.co.uk

convenience & fuel

visit: tlmtechnologies.co.uk

Our solutions cover • EPOS – to deliver a first-class customer experience. • Back office – to streamline store management and drive better decision making. • Head office – to provide a consolidated view of your entire business’ performance. • Comprehensive support – helpdesk, hardware, software, pump maintenance and training.

NOVEMBER 2017 | SLR

02/11/2017 15:43:58

JET

THE fuel brand of independent Scottish dealers

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

“

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

”

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

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02/11/2017 15:44:00

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

SLR November 2017.indd 35

• An award-winning standards and service programme: Our ‘Proud to be Jet’ standards and service programme rewards dealers who deliver high standards and offer excellent customer facilities • Big brand alliances: Our brand partnership with SPAR UK enables JET dealers to transform their sites into convenience destinations that maximise on both fuel and food sales • Retail support: Our compelling range of retail support services and partner offers help dealers to drive forecourt footfall and customer loyalty

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

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

• Consumer promotions: At no cost to our dealers, our innovative national and local promotions have been proven to drive up forecourt footfall and fuel volumes

02/11/2017 15:44:02

Join the winning team! Supported locally by the largest Scottish based sales team in the symbol sector! ars four ye astic. r o f s r e t l r is fan R retai e A f f P o S n n ur e bee hey ca offer o n We hav he support t a c e s, food urt w dt now an petrol foreco of fresh food R ge sy SPA As a bu s a bigger ran al. The a wide e d l a e r e m des custom a great value d inclu n a t n we d e n excell ts and c s to go a i u e d g o n r .Their d ra ing p ootfall f r brande award winn u g o grow of trainin y o , t t t e d i n r e e a p l v e pm it has h develo nd we are believe e from store ea ok to non nc e d i r n . We lo e o d c p n e a s ex r s i b SPAR idance and gu be part of the ars ahead. san Ardros to e ye R r A o P m S â&#x20AC;&#x201C; y happy n e d to ma rkhouse Garag forwar Pa

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www.facebook.com/ SPARintheUK

@SPARintheUK

Channel: SPAR UK

02/11/2017 15:44:02

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

Speak to us today

www.spar.co.uk/joinspar email: recruitment@sparscotland.co.uk or call Sharon Methven on 01382 512000

R UK

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02/11/2017 15:44:02

Inside Business

Woodlands Local | Monthly Update

WOODLANDSlocal

A month of stafﬁng issues and record numbers

It’s been another mixed month at Woodlands Local as our staffing problems continue, yet our core team keeps delivering the goods as October featured a record week in terms of sales. BY ANTONY BEGLEY

here’s no doubt about it, staff are the most complex element of running a convenience store. The latest investment we’re considering at Woodlands Local is a revolving door to help us cope with the amount of new starts that we have trialled who haven’t lasted longer than a week or two. When I used to write SLR purely as a journalist I was always sceptical about all the comments I heard from retailers about how difficult it is to find hard working, committed staff. After all, in our publishing company the average length of service for the team on SLR is probably around 10 years. But after the last year in Woodlands Local I’m beginning to come around to the idea that staffing is without doubt the biggest challenge of running the store. In the last month alone we have seen three

SPOOKY SALES HIKES AT HALLOWEEN!

It may of course have been coincidence, but we’d like to think that all the work we did in-store helped contribute to the week prior to Halloween being the biggest sales and profit week we’ve had in calendar year 2017! As well as a raft of standard Halloween chocolate and confectionery lines from the likes of Haribo and Mondelez we also went a bit overboard on our dedicated Halloween aisle end to include a range of great deals on everything from Dark Side Skittles to more creative lines like Quaker Oats’ Limited Edition Pumpkin Spice version of their popular Oat So Simple range. The result was a lively, colourful and engaging fixture that appealed to a wide range of customers, from small kids to adults. Again, a fair amount of effort was needed but the proof is in the Halloween pudding and you can’t argue with the best week of the year so far! Great products, merchandised enthusiastically and well makes all the difference.

SLR | NOVEMBER 2017

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new staff come and go with excuses and explanations that you frankly couldn’t make up. Where once we had a ‘three strikes’ policy in terms of no-shows and last-minute calloffs, we now operate a ‘single strike’ policy for new staff during their probationary period. If I hadn’t lived through the last month – and had to cover for no-show staff at short or zero notice – I wouldn’t believe what we’ve been through. We’ve had people call in sick on their second day, we’ve had people ‘forget’ they were going abroad on holiday next week, we’ve had people simply fail to show then fall off the face of the earth, uncontactable by phone, text or email. I accept that for many it can be an unglamorous job, not particularly wellpaid with difficult hours – but I would have thought that reliable, steady, full-time employment with decent working conditions www.slrmag.co.uk

02/11/2017 15:44:04

Monthly Update | Woodlands Local

and the prospect of career development would have been attractive to at least some of the good people of Falkirk. And I don’t believe that what we offer at Woodlands is significantly different from what’s available at most other convenience stores in Scotland, so I’m left puzzling as to what exactly we need to do to attract and retain staff with a little ambition and work ethic. It’s doubly frustrating because we invest a lot of time and effort into training new staff and giving them the tools they need to be effective members of the team – and every time they walk out the door because a 5.45am start doesn’t suit them all that work has been wasted. But let’s face it, nothing I’m saying here will be news to anyone reading this.

SALES SPIKES So it’s onwards and upwards once more with yet another new start and a whole new set of plans for building a solid, reliable, ambitious team. And there are definitely some signs of good progress. In the last month we saw a record week in terms of sales this calendar year. Under the guidance of manager Arlene and long-term team member Marlyn, we saw an exceptional seven days at the end of October that had the highest week of sales in 2017 alongside some serious growth in the key hot food and alcohol categories. Even sales of tobacco were around £400 higher than the average week, which suggests we’re getting some of the things we’re trying right. To build on that upward trend, we are in the midst of an entire re-lay of the shop and we’re taking a purely data-driven approach. We have been working with our Epos suppliers RDP and our principal wholesaler JW Filshill to merge our historic sales data from the shop with some anonymised data provided by RDP and Filshill about sales in the and around the Falkirk area. The RDP and Filshill data gives us, effectively, a sort of top 50 in every major category for all stores in the area. This will allow us to identify any big selling lines that we don’t currently stock. We will then combine that with our own Epos sales data to build new ranges for every fixture in the store, adding in big-selling lines we don’t stock and stripping out any slow-selling lines we do stock. To help with this, RDP will be visiting the store in early November to help us www.slrmag.co.uk

SLR November 2017.indd 39

manage the data integration and the output of new ranges lists for each fixture. We will also then be making use of one of the great tools on RDP’s system that allows us to calculate sales and cash profit levels by individual fixture. That way we can see which areas of the shop are doing well and which areas are doing less well and need some tweaking. Over the coming months we will undoubtedly then decide to grow some fixtures and to reduce the size of others, in line with the profit they are delivering for the business.

Inside Business

The Woodlands team will begin Phase I of the online training initiative focusing on some core modules.

BOLT-ON TRAINING As part of our renewed commitment to trying to build a lasting team, last month saw us also go live with our formal staff training programme using Bolt Learning’s innovative online training platform. All members of staff are being asked to complete the online training modules and for Phase I we have started with a few of the modules that we consider fundamental to the efficient, safe and legal operation of the store: Q Age-related sales (Scotland) Q Tobacco retail (Scotland) Q Food Safety Level 1 Q Food Safety Level 2 Q Basic Health & Safety Q Phase II will then follow and will cover ‘softer’ topics such as customer service, upselling and protecting the environment. A full report is produced on how each member of staff gets on, allowing the management team to identify areas of strength and weakness where we can offer praise or support as required. Additionally, every staff member earns a certificate upon completion of each module, which is a nice touch.

IN-STORE TRIALS The last couple of months has seen a great effort from the team in-store too on a couple of trials that we ran with Wrigley and Mars. A price-marked pack trial with Wrigley saw sales of a number of lines increase by between 58.8% and 148.3% – remarkable figures. Then last month our trial of Mars’ new goodnessKNOWS bars saw us shift well over 660 units in a single month, not a bad achievement for a small shop like ours. It goes to show what can be achieved with a bit of effort and a great product. NOVEMBER 2017 | SLR

02/11/2017 15:44:05

Inside Business

Woodlands Local | goodnessKNOWS Trial

WOODLANDSlocal

GOODNESSKNOWS A LITTLE EXTRA EFFORT DELIVERS A LOT MORE SALES!

Working with Mars over the last six weeks, the team at Woodlands has done an exceptional job getting the new goodnessKNOWS lines into our shoppers’ hands and delivering what’s been probably the store’s most successful product launch since we took over. BY ANTONY BEGLEY

hen we first spoke to Mars about having a decent go at doing ‘perfect execution’ of its latest piece of major NPD in-store, we knew had chosen a great product in goodnessKNOWS. Mars called it its “biggest launch since Celebrations” and was throwing an appropriately enormous bit of marketing spend behind the new product. This was evident from the moment we got the new lines instore; even on day one customers commented on how they’d heard of goodnessKNOWS but hadn’t seen it anywhere yet, so there was plenty of enthusiasm to try it out. It was also clear very quickly that customers appreciate the fact that 10% of the profits go to a charity – the goodnessKNOWS fund – dedicated to financing community projects. It’s always difficult in a small store find space for all the POS that’s available for NPD like this but we decided to give it our best shot. It turned out to be relatively easy – with a

SLR | NOVEMBER 2017

SLR November 2017.indd 40

little thought and a little effort – to give product launch we’ve ever had in our the brand a big presence in the time at Woodlands Local. store using FSDUs, counterThis has taught us a valuable top units, staff t-shirts and a lesson about how much large shelf topper. difference it can make to Cranberry & It was frankly impossible really aim for great quality Almond to miss the brand in-store, execution on important NPD. but after just two weeks we knew we were onto a winner: even though we only had the Cranberry & Almond variant on sale for that period. In just Apple, Peanut & Almond two weeks we sold 127 units, which is pretty significant for a store of our size. By the end of September however we got our hands on the Blueberry & Almond and Blueberry & Almond the Apple, Peanut & Almond flavours too, which helped appeal to a wider customer base as well as making all the POS look a lot more colourful and eye-catching. The results were spectacular, more than justifying the extra effort and space devoted to the brand. In total we sold 793 units in just six weeks, making this probably the most successful new

351 144 298

POS PLAN Q Q Q Q

FSDU next to hot food counter to drive impulse sales Counter-top unit next to till to drive impulse sales Shelf-topper to act as beacon for breakfast bar category and drive awareness Staff t-shirts to drive awareness and dialogue with customers

www.slrmag.co.uk

02/11/2017 15:44:08

#Th in kSma r t

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

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

www.slrmag.co.uk/thinksmart2

SLR November 2017.indd 41

02/11/2017 15:44:08

Hotlines

Product News & Media Watch

KP Salted Caramel Peanuts KP Snacks KP Snacks has added an on-trend Salted Caramel variant to its range of KP Nuts caddies (RSP £4), as it targets shoppers looking for festive sharing snacks. FSDUs are available to support the launch. KP advised retailers to stock up well in advance as 53% of shoppers have bought food intended for Christmas by the middle of November. KP’s core caddie range also includes Original Salted, Dry Roasted, and Honey Roasted ﬂavours.

Maynards Bassetts puts on a silly face for new candy bags launch

Galaxy Hot Chocolate Mars Chocolate Drinks and Treats Mars has added two new products to its Hot Chocolate range: Galaxy Mocha Latte and Galaxy Thick Hot Chocolate. Both are available now. Mocha Latte (280g) has an RSP of £3 and is the range’s first coffee-ﬂavoured variant. Thick Hot Chocolate (300g) RSPs at £2.79.

Tia Maria Gift Pack Illva Saronno Available from the start of November, these limited-edition Christmas gift packs have an RSP of around £15. A premium chrome cylinder, which features an integrated chalk board, holds a 70cl bottle of the nation’s favourite coffee liqueur. The container can be personalised with drinks requests using the chalk provided, or put to other uses around the home.

SLR | NOVEMBER 2017

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Maynards Bassetts has launched a new range of candy bags, designed to attract younger consumers to the category. Available now in 70g non-price-marked packs (RSP 60p) and 50p PMPs, the range includes Beaming Beasts Jellies (fruit ﬂavoured animals), Cheery Slices Gummies (watermelon slices), Silly Snakes Jellies, Chuckle Drops Gummies (sour gummies) and Straw’Merries Jellies. Packs are available in outers of 16. A full range of POS is available to help retailers drive excitement in store. Claire Molyneux, Marketing Manager for Candy at Maynard Bassetts’ brand owner Mondelez International, said: “Small bags is a growing category and soft jelly leads candy with a 51.3% share, making it a great opportunity for retailers. “Our new range aims to recruit younger consumers to the category with a variety of shapes and ﬂavours unique to the current Maynards Bassetts range. “What’s more, the packs can be folded and the smiles graphic placed in front of the mouth to create a silly face, bringing more shareable fun to the experience.”

Snack-a-Jacks Minis PepsiCo Snack-a-Jacks has launched new ‘Minis’ to give shoppers an on-thego option for the brand. The new rice cakes, which are available now, are coated in yogurt or milk chocolate, with an RSP of 65p per 14g pack of four. Each pack contains less than 75 calories. Thomas Barkholt, Marketing Director at PepsiCo, said: “We know that lower calorie products are popular with shoppers who are increasingly looking for Better-For-You snacks.”

Purdey’s 250ml cans Britvic Britvic has launched a new 250ml can format for its multivitamin drink brand, Purdey’s. The new sleek design rolls out in a £1.19 price-marked pack exclusive to the independent channel, with the intention of driving positive price perception and increasing stand-out on shelf. The launch is supported by a £3m marketing campaign. The Purdey’s range contains no added sugar, and it is therefore exempt from the forthcoming sugar tax.

Yazoo NAS Chocolate FrieslandCampina Yazoo has introduced Chocolate to its No Added Sugar range, making it – the brand says – the UK’s first-ever No Added Sugar and No Artificial Sweeteners Chocolate Milk Drink. The new product is available this month in 4 x 200ml (RSP £1.60) and 6 x 200ml (RSP £2.40) packs. In blind taste tests, 74% of children from the ages of five to nine gave it a positive rating. The launch is supported by a marketing campaign that includes cinema, radio, digital and shopper activity.

www.slrmag.co.uk

02/11/2017 15:44:09

Product News & Media Watch Sweet Champions carton Tangerine Confectionery

Emoji Love Hearts Swizzels

Tangerine Confectionery has brought back its Sweet Champions sharing tub (RSP £5) for Christmas 2017. The seasonal carton includes a selection of retro classics such as Dip Dab, Sherbet Fountain, Wham, Black Jack, Fruit Salad and Refreshers Softies. Tangerine expects the tub to “ﬂy off” retailers’ shelves.

Swizzels has given its Love Hearts sweets a digital makeover with the introduction of limited-edition packs which feature 11 of Britain’s most commonly used emojis. The new packs are available in 24-count shelf-ready outers. Individual rolls carry an RSP of 30p. The launch is supported by a ‘#ShareTheLove’ digital support package, which also features on packs.

MEDIAwatch

Hotlines



Dad crumbles under pressure Oxo is back on TV with a new advert that follows its modern-day family. The advert showcases Oxo Stock Pots coming to the rescue as Dad quickly whips up his ‘Special Pasta’ when Mum and the children’s plans fall through. The ad is on air now until December 31, and also introduces the latest addition to the range, Ready-To-Use Stock Pouches.

‘Make it Yours’ with Old El Paso Ribena Pineapple & Passion Fruit cartons Lucozade Ribena Suntory Ribena has added new ﬂavour, Pineapple & Passion Fruit, to its cartons range. The new cartons are available to buy exclusively in the wholesale channel now, at a case price of £6.46 for 24 and an RSP of 69p. Cartons contains fewer than 15 calories each. In conjunction with the launch, the full cartons range has been redesigned with the brand’s new ‘fruity’ look.

Jus-Rol Cookie Dough General Mills Jus-Rol has launched a range of ready-to-bake cookie dough. The new chilled dough comes in three variants – Choc-Chip, Double ChocChip and Caramel. Pre-perforated, it can be divided into 12 portions and baked for 10 minutes. A heavyweight campaign will support the cookie dough launch, including digital, social media and in-store shopper activity.

Old El Paso is investing £3m in a new advertising campaign to drive sales of its Stand ‘N’ Stuff meal kits range. The activity includes TV, cinema, video-on-demand and social media and adopts the tagline ‘Make it Yours’. It features American actor of Mexican descent, Danny Trejo, who starred in blockbusters Con Air and Desperado.

Dark, but different Green & Black’s is on TV screens for the first time to promote its new Velvet Edition range of smooth, dark chocolate. The cinematic advert sees wolves pursuing Red Riding Hood through a dark forest in what is ultimately revealed as a game of hide and seek. The ad concludes with Red Riding Hood counting as the wolves run off to hide.

When Dave became Rupert Mars Mud Pie Coppenrath & Wiese Mars Chocolate Drinks and Treats has extended its frozen desserts range with the launch of new Mars Mud Pie, which combines a soft chocolatey sponge base, covered with a malt-ﬂavoured cream, caramel and Mars chocolate. The 350g pie, which contains six servings, is available now with an RSP of £3.

Unicorn Chips Dr. Oetker Home baking brand Dr. Oetker has made a colourful addition to its Chocolate Chips range with the launch of new Unicorn Chips (100g, RSP £1.49), available now. The brightly-coloured chips, which are white chocolate-ﬂavoured, tap into the unicorn trend that Dr. Oetker says has taken home baking by storm. The range includes Dark Chocolate, Milk Chocolate and White Chocolate variants.

TV channel Dave took on the more refined character of Rupert for three days recently as part of Snickers’ ‘You’re Not You When You’re Hungry’ campaign. Viewers were treated to a captivating chess match, 15th century art collections and French film noir before a parody Snickers test card came up on screen and normal service was resumed.

Coke’s Christmas countdown CCEP’s Christmas activity kicks off in the middle of November with the return of the ‘Holidays Are Coming’ advert. The Coca-Cola Christmas Truck will then begin touring Great Britain, visiting 53 locations nationwide. Coke is also sponsoring Capital FM’s ninth annual Jingle Bell Ball, which will be pre-promoted to the radio station’s 8.1 million weekly listeners.

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

SLR November 2017.indd 43

NOVEMBER 2017 | SLR

02/11/2017 15:44:10

Feature

Oral Care

TAKING CARE OF YOUR SMILE

Oral care has never been more important to customers and more and more of them routinely buy gum and other related sugarfree lines to keep their mouth and teeth in top condition, offering retailers a great profit opportunity.

esearch published in the British Dental Journal in February 2016 revealed significant potential cost savings on dental treatments if people chewed sugarfree gum after eating and drinking. It found that if all 12-year-olds across the UK chewed sugarfree gum three times a day the NHS could save up to £8.2m every year. With this in mind, it is important that retailers understand the importance of oral care in general, and gum in particular. More and more shoppers are keen to protect their smile and there are few easier and better ways of doing it than by chewing gum, making the category a must-stock at the till point. Some 80% of women [UltraDEX Survey 2015] are more concerned about tooth loss and oral health than weight gain, while 1634 year olds are more likely to be concerned 44

SLR | NOVEMBER 2017 017

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ORAL CARE: GUM BY NUMBERS 30%+ – typical profit margin on gum 90% – shoppers who interact with gum buy it 62% – gum purchases which are unplanned [Advantage Group Shopper IQ 2011] 608 – Individual packs that fit in a standard gum unit 50% – shoppers who chew gum weekly [Wrigley online consumer tracking 2013]

with oral health when compared to other age groups [Oral Care Mintel Report 2015]. It’s no surprise then that over 97% of Wrigley’s gum sales are from sugarfree products [Nielsen Scantrack, Jun 17], while Extra sugar free gum is accredited by the Oral Health Foundation. But it’s vital to remember that gum isn’t just good for consumers’ teeth; it’s good for retailers’ sales too. The total gum category is currently worth over £261m and Wrigley’s gum portfolio alone is worth over £246m [Nielsen Scantrack, Jun 17]. In other words, Wrigley is the gum category. So

MERCHANDISING Wrigley’s five simple steps to help successfully manage gum sales… Q Availability is key – gum is more impulsive than any other confectionery line so remember to re-stock each morning and prior to peak traffic times. Q Stock the best-sellers – such as Extra Peppermint, Extra Spearmint, Extra White and Airwaves. Q Champion new products – e.g. Extra Cool Breeze Bottle and Hubba Bubba Cola and Fancy Fruit Bubble Tapes. Q Multiple gum sitings – e.g. next to a second till point, confectionery aisle or dental section to drive additional purchases and ultimately maximise sales. Q Offer a wide choice of pack formats and ﬂavours – to meet different consumer demands e.g. stock bottles, stick and pellets, as well as a variety of ﬂavours.

what Julio Guijarro, Marketing Director at Wrigley UK, says is worth listening to. “Growth is being driven by sugarfree gum and we expect this to continue,” says Julio. “Worth over £204m, Extra sugarfree gum is the driving force behind the gum category, which is growing in volume sales and our core Extra flavours, Peppermint and Spearmint, are the top performing variants and are worth over £130m [Nielsen Scantrack, Jun 17].” As the undisputed leader in the category, Wrigley continues to innovate to bring new and creative ways for consumers to manage their oral care programmes. The company recently unlocked new consumption occasions and category growth with the return of its in-car gum holder, free of charge with selected purchased gum and mint bottles. Wrigley developed the holder after identifying in-car consumption as a clear growth opportunity. It is being supported by digital and OOH activity, including TV and online videos, bus stop promotions and satnav advertising, in addition to POS material. Wrigley has also extended its Extra sugarfree gum bottle range with the launch of Extra Cool Breeze 60 pellet bottles. To help drive impulse sales, the Extra bottle range is available to retailers in £2 pricemarked packs to tap into the growing demand for keeping teeth clean and breath fresh after snacking on the go. For retailers, the PMP bottles will help to improve rate of sale, as purchase intent in the gum category has been shown to significantly decline when priced above £2.

www.slrmag.co.uk

02/11/2017 15:44:12

Break down lingering food Neutralise harmful plaque acids Reduce the risk of tooth decay

SLR November 2017.indd 45

95%

of Wrigleyâ&#x20AC;&#x2122;s brands are su gum garfree and ExtraÂŽ is ac by the British credited D Health Foun ental dation

02/11/2017 15:44:14

Feature

Cigars

LIGHT UP CIGAR SALES THIS CHRISTMAS TOP PERFORMING CIGAR BRANDS BRAND Café Crème Blue Hamlet Hamlet Miniatures Moments Blue Café Crème Royal Dutch Miniatures Classic Café Crème Arome Filter Royal Dutch Miniature Blue HW Half Corona Panama King Six Mehari’s Sweet Orient HW Slims Royal Dutch Elites Café Crème Finos Blue

SHARE % MAT TY 22.2% 11.7% 11.4% 11.0% 9.1% 6.6% 6.5% 4.5% 3.5% 2.4% 1.5% 1.1% 1.1% 1.0% 0.7% 0.7%

VALUE (£M) MAT TY £34.4 £37 £17.1 £11.9 £14.1 £7.4 £22 £6.9 £3.9 £13.3 £4.2 £2.7 £1.9 £2.6 £1.9 £1.0

[IRI MARKETPLACE, W/E 13.08.17]

STG UK TOP TIPS STOCK THE RIGHT RANGE: Q Make sure you include the top-selling brands from each segment as a minimum: Q Miniature cigars: Café Crème Blue, Café Crème Original and Moments Blue Q Panatella/Small cigars: Moments Panatella, Henri Wintermans Slims Q Medium/Large cigars: Henri Wintermans Half Corona and Corona Sumatra

KNOW YOUR CUSTOMERS: You know your customers better than anyone and there will always be regional differences in product performance. Pay attention to what your customers are buying and review sales data to see what’s performing well and stock your range accordingly.

STAY STOCKED UP: Without a doubt the simplest, but most effective piece of advice to follow is to stay stocked up. If a product isn’t in stock, your customers can’t buy it – so make sure you monitor stock levels carefully to avoid this from happening.

SLR | NOVEMBER 2017

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Sales of cigars shot up by 10% last December highlighting a festive opportunity for retailers ready and able to capitalise on that seasonal spike in demand.

igars may not strike you as the most obvious of festive lines but IRI data from last year quite clearly shows a marked spike in the run-up to Christmas. Total sales of cigars in December last year increased by a significant 10% compared to the previous month while sales of larger cigars from the Medium/Large segment, such as such as Henri Wintermans Half Corona, reported a huge 20% increase. Jens Christiansen, Head of Marketing & Public Affairs at Scandinavian Tobacco Group UK (STG UK), comments: “To capitalise on this peak in celebratory sales around the festive www.slrmag.co.uk

02/11/2017 15:44:21

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02/11/2017 15:44:21

Feature

Cigars

period, retailers should ensure they are stocking larger cigars such as Henri Wintermans Half Corona, which holds the position of the No.1 selling cigar in the Medium/Large segment and is also the sixth best-selling cigar overall in terms of value sales. “We also recommend stocking a selection of smaller cigars such as the category-leading cigar brand, Café Crème, as well as Moments, to make the most of the growing Miniatures segment. “As we move closer towards the festive season, the Cigars category presents a great opportunity for retailers to increase their sales. By ensuring they are fully stocked with the right cigar offering at all times, retailers will be well placed to take advantage of the seasonal sales on offer.”

MARKET OVERVIEW Worth £198.5m, the Cigars category clearly presents a significant sales opportunity for retailers during the festive period. In the category, many consumers remain far more loyal to well-known brands than they do in the cigarette category, preferring a brand they can trust as they provide reassurance in terms of the quality and perceived value of the product. As a result, it’s important for retailers to include a range of topsellers from each segment in their range so that they don’t miss out on sales. Christiansen comments: “As the No.1 cigar brand in the UK, Café Crème Blue accounts for 22.2% of cigar sales single-handedly, making it a valuable asset for any tobacco retailer. STG UK is leading the way in the category, accounting for seven of the top 16 brands and over half of the entire category with a 51.9% market share [IRI, Aug 2017]. With a portfolio benefitting from many category-leading cigars, including most notably Café Crème which is the No.1 cigar brand in the UK, our brands should be considered must stocks for any tobacco retailer this Christmas.” Similarly, JTI recommends that retailers take a fresh look at their 48

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cigar offering in time for the festive period. A JTI spokesperson said: “Cigar sales typically increase over the festive period, so retailers are encouraged to stock up in the run up to Christmas to profit from the sales opportunities brought by the seasonal holiday. We recommend stocking the full Hamlet house to cater to a range of existing adult cigar smokers and their preferences in order to maximise sales opportunities.” To cater to the niche market of cigar users, JTI urges retailers stock up with a variety of pack sizes and formats including miniature cigars to demonstrate to existing adult smokers that they are getting the best possible choice and value.

VALUE FOR MONEY As in all tobacco categories, price continues to be a major focus for shoppers, and the key manufacturers fully expect the value for money trend to gain even further momentum now that EUTPD2 restrictions are in place. With the Small Cigar segment worth £77.5m, there is a significant

JTI KEY ADVICE: Q Maintaining availability at all times is of vital importance to ensure that retailers become a destination store of choice for existing adult smokers. Q Maintaining a good range of cigar products is also important for retailers, so that existing adult smokers do not have to look around and shop elsewhere. Q JTI recommends stocking the full Hamlet house to cater to a range of existing adult smokers and their preferences in order to maximise all sales opportunities. Q Hamlet holds a 35% share of the cigar category in the independent trade and is one of the top three cigar houses in the UK [Nielsen, Jun 2017]. Q The Hamlet house includes Hamlet (singles, 5s, 10s, 50s), Hamlet Miniature (5s, 10s) and Hamlet Miniature Blue (10s).

opportunity for retailers to capitalise on this demand for value and drive growth back into the category. To tap into this demand for value, STG launched Moments Panatella earlier this year which is available to buy in packs of five with an RSP of £4.20, making it the cheapest product on shelf within the Small Cigar segment. Thanks to its exemption from the plain packaging restrictions, the range also benefits from an eye-catching yellow design to help stand out on-shelf.

MINIATURES The Miniatures segment is now dominating the value for money category as consumers continue to seek out quicker-smoking cigars. Priced at just £3.83 for a pack of 10, stocking Moments Blue allows retailers to take advantage of the sales afforded by this leading segment, whilst also responding to two of the major trends we’re seeing in the category: trusted brands and value for money. Hamlet Miniatures have almost 18% share of sector [Nielsen, Jun 2017] so Hamlet is also a must stock for any retailer wanting to benefit from this profit opportunity.

CATEGORY ADVICE While the desire for celebratory cigars around Christmas presents a great opportunity to grow cigar sales, in order to fully make the most of this opportunity retailers should make sure they are offering a strong range of cigars from all segments, at all times throughout the year. www.slrmag.co.uk

02/11/2017 15:44:22

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Feature

Big Night In

LET’S MAKE A NIGHT OF IT! With many cash-strapped shoppers still preferring a night in with friends and family to a night at the pub or restaurant, there’s some great opportunities for retailers to cash in.

he Big Night In is now firmly established as more than just the passing trend it was once thought to be and there’s plenty of data to support the notion that many consumers are still strapped for cash and prefer a night in with friends and family to a night out at the pub, cinema or restaurant. That’s great news for local retailers and presents a brilliant opportunity for big basket spends. Amy Burgess, Trade Communications Manager at Coca-Cola European Partners (CCEP), says: “For many consumers, nights in with friends and family are being treated as more of an occasion and as such, people socialising at home is a growing opportunity for retailers. These nights are often planned at the last minute, and this can make local retailers a go-to stop for shoppers making impulse buys for their evening ahead. “The reason for a night at home can vary, and occasions range from a ‘date night’ for couples to a dinner party with friends, or simply relaxing in front of the TV on a Saturday night.

NO SOFT OPTION “Whatever the occasion, it’s likely that most consumers will be looking for an accompanying drink. With 21% of adults now choosing not to consume alcohol at all [ONS, Feb 2015], it’s clear that soft drinks provide a major opportunity for independent retailers to increase their sales when catering for those enjoying nights at home.

MERCHANDISING ADVICE Jon Eatly, Wrigley Customer Excellence Director, gives his six simple steps to help retailers successfully maximise confectionery sales: Q Visibility is key in such an impulsive category so popular confectionery items should be located just below eye level, at ‘buy level’, to take advantage of incremental sales. Q Availability is crucial – remember to re-stock each morning and prior to peak traffic times. A fully stocked display will help maximise your profit potential and guarantee repeat visits from customers. Q Ensure shoppers are aware of the choice and range on offer by keeping a clear and tidy confectionery display and merchandising by format and sub-category e.g. single serving fruit confectionery, share bag fruit confectionery, single serving chocolate confectionery, chocolate blocks, sharing bags chocolate etc. Q Rotate stock regularly so that older stock is sold through first. Q Champion new products in store to raise sales and capitalise on early consumer demand. Q Use eye-catching POS materials to draw attention to your confectionery display encouraging customers to buy on impulse.

“Retailers should monitor for occasions such as popular TV events and keep stocks high in order to meet demand. Sharing formats like 1.75L PET bottles of Coca-Cola Zero Sugar and multipack cans of Fanta and Sprite are popular choices for consumers for these occasions, so ensuring shelves are stocked up can help retailers make the most of the opportunity.” According to CCEP, it’s often couples and weekday opportunities with friends that are driving the big night in these days. Burgess says: “For many couples, spending a night in together is being treated as more of an occasion, and, as such, these ‘date nights’ are a growing opportunity for retailers. “Similarly, while the concept of ‘The Big

‘BIG NIGHT IN’ – DIAGEO’S FAST FACTS IN THE SPIRITS CATEGORY Q The ‘Big Night In’ is becoming an increasingly desirable lead for retailers Q 1% of off-trade spirit sales are on ‘Big Night In’ [Kantar, Mar 2017] Q 18% of spirits shoppers in convenience say that premium options are most important when selecting a product in store for ‘Big Night In’ [CTP, 2015] Q 43% of consumers agree that they would pay more for high quality and premium spirits [Nielsen, 2015] Q Younger couples of both genders over-index heavily on ‘Big Night In’ Q Older couples over-index the concept of ‘staying in as a couple’ Q Vodka is the most highly consumed spirit in ‘Big Night In’, but Whisky is the main player in the ‘staying in as a couple’ occasion Q However, Gin is predicted to become a main player for ‘Big Night In’, with huge growth potential

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Night in’ is usually focused around weekend events, there is no shortage of opportunities on weeknights that may see groups of friends and families get together. These can range from TV events to occasions like birthdays or anniversaries that fall on a weeknight. “Soft drinks can play an even greater role for nights in during midweek, as many people will choose not to consume alcohol when they have work the following day. Therefore, it’s important for retailers to consider any night an opportunity. Keeping good stocks of sharing formats as well as adult soft drinks like Appletiser or Schweppes Sparkling Juice Drinks can help meet this demand, especially those looking for a premium option.” This trends towards healthier options is also reflected in the continued growth of lowand no-sugar soft drink options. Burgess again: “With the increased focus on health leading some consumers to change their usual drink choice to reduce their sugar intake, retailers should look to display lower or no-sugar variants of well-known brands as part of their ‘Big Night In’ displays. “Schweppes offers a selection of Slimline products that will appeal to those looking to enjoy a lighter option as part of their cocktail recipes, potentially leading to incremental sales growth. “Since its launch in July 2016, Coca-Cola Zero Sugar has become the fastest-growing www.slrmag.co.uk

02/11/2017 15:44:23

O T D E T T I M M O C

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

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

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

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Feature

Big Night In

cola brand in Great Britain [Nielsen, May 2017] worth £148m, thanks to its sugar-free credentials and great taste.”

HARDER CHOICES But it’s not just soft drinks that make a Big Night In go with a swing. Beers, wines, spirits and ciders remain a fundamental element of a gathering, big or small. Cider, in particular, is a category that continues to deliver. Toby Lancaster, Category and Shopper Marketing Director at Heineken,

Discussing the trend towards trading-up, he adds: “We’ve seen a growing trend to purchase cider as a treat at home, whether after a busy day at work or to enjoy in the company of friends and family, which means that there is a huge opportunity for retailers to inspire their shoppers to trade up and explore more premium ciders, such as Old Mout Cider. Buying for a treat is more likely to be an unplanned purchase, so remember to place POS in store in order to grab your customers’ attention and drive those incremental sales. “

BIG NIGHT IN: TOP TIPS FROM MONDELEZ Q The biggest Big Nights In are usually at the weekend, so make sure your displays are prominent and well stocked towards the end of the week. Q In the evening, beer, wine and carbonated drinks are complementary categories to chocolate, savoury snacks and biscuits. Position cross-category products on the same display or within easy reach of each other. Q Create a Big Night In feature in-store by stocking a range of the top evening snacking categories: chocolate, sweet biscuits, crisps and candy – accommodating both sweet and savoury sharing options. Q Customers waiting in line are the most likely to select products on impulse for their night in, so arrange your display to unlock this opportunity. Bestsellers should always be 1m to 1.4m high, and Cadbury bitesize and candy confectionery ranges can be displayed in hanging bags to catch the eye. Q Use secondary sitings in high traffic areas to make sure that consumers see the products as only 13% of people visit all the aisles in convenience stores [CTP 2014].

says: “The Cider category has recently passed the £1bn mark for the first time in the UK offtrade. Worth almost £350m in the impulse channel, there’s a definite opportunity for convenience stores. It’s crucial to stock big brands such as Strongbow, which is primarily available in can packs, as Mainstream Cider accounts for 69% of the total Cider category [Nielsen, Aug 2017]. Canned Cider now makes up more than half the category value (51.9%), with continued growth of 12% compared to last year, according to the same data. It’s important that your range includes cans across mainstream and premium for both Apple and Flavoured Cider brands so you can take advantage of this format.” Lancaster advises retailers to stock a range of ciders to include a variety brands and formats, including core brands which are popular all year round as well as more premium options. 52

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In terms of merchandising, Lancaster urges retailers to follow Heineken’s Star Retailer advice: stock Cider in a variety of formats including cans and bottles across all key Cider segments: mainstream, mainstream flavoured and premium flavoured; giving fastest sellers more space to make restocking quicker and it’s easier for your customers to find what they’re looking for; capitalise on the Big Night In opportunity by creating visually attractive displays and offers with beer and cider merchandised as near to categories such as crisps and snacks as licensing law permits to disrupt shopper attention and drive additional sales.

Star Retailer also advises retailers to arrange their chiller by flavour, as that’s how shoppers buy the category. Grouping Apple, Pear and other flavours will save customers from having to search for their favourites which will in turn maximise sales.

SPIRITED APPROACH Similarly, spirits will play a key role in many Big Night In occasions and will help drive up cash margins and basket spends. Faith Holland, Head of Category and Insights at Diageo, says: “The concept of ‘Big Night In’ is growing in popularity amongst young adult couples and older couples [Kantar, Mar 2017], with a heavy importance being placed on making ‘staying in at home’ more event-worthy and special. “Consequently, consumers are seeking richer value and experience from what they consume and are placing a greater importance on the stories behind the products, ingredients used, and the provenance of products. This is a trend emerging across both food and drink and is having a massive influence on consumer purchase decisions.” Within the spirits category, Diageo recommends retailers follow these simple steps to make spirits easy to shop: Range – Stock the best-sellers and upweight your premium product offering, highlighting new and growing product areas to ensure customers can pick up new trends in store. Display premium products above value products. Layout – Ensure customers can easily find their must stock items. Blocking vertically by category first, then brand and finally size will help to do this. Ideally shoppers would like to see all bottle sizes by brand together. Eye-catching point of sale (POS) – Use POS materials to draw attention to new, growing, seasonal or promoted products. Category insight – Ensure that you are communicating a compelling reason to buy products on promotions. Price-led communication – Ensure the profit on return (POR), recommended retail price (RRP) and the actual vs promotional price is clearly communicated to shoppers across all products. Cross merchandising – Use certain products to uplift sales of accompanying items by displaying together as an ‘add-on’. Cocktails at home are a huge trend, says Diageo and advises retailers to make it easy for shoppers by grouping cocktail ingredients together and suggesting simple serve ideas. Stores can be www.slrmag.co.uk

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Big Night In

personalised using ‘Manager’s Choice’ or ‘Cocktail of the Day’ labels, or creating an instore bar, which provides visibility of finished drink solutions on display together. Maximise spirits purchase in your store by stocking the right range, in an ‘easy to shop’ layout, and offering price-marked packs to reassure shoppers they are getting a fair value. “To further maximise profits, retailers should position appropriate mixers and accompaniments nearby, or as part of a promotional area,” says Holland. “Consider positioning tonic water or limes nearby to spark interest from your shoppers, by taking a lot of the leg-work out for shoppers retailers can encourage cross-category purchases.” To maximise the ‘Big Night In’ opportunity, Diageo says retailers should stock new Gordon’s Premium Pink, a prime opportunity that will offer retailers a recruitment opportunity for younger adult consumers, bringing them into the category for the first time. Holland says: “As it stands, the majority of off-trade ‘Big Night In’ serves come from Vodka (44%), but given its recent growth strength, with a YoY growth rate of 10.2% [Nielsen, Oct 2017], the Gin sector holds the biggest potential for the ‘Big Night In’ sales, currently at 9.8% [Kantar, Mar 2017]. What’s more, with 14.4% of off-trade serves on ‘staying in as a couple’ coming from Gin, Gordon’s Premium Pink, with its romantic blush liquid, is perfectly positioned as the goto choice for couples to indulge with.” Holland also urges retailers to give Baileys Iced Coffee a go. Launched in March this year, the two new flavour variants – Latte and Mocha – from the world’s number one selling liqueur brand are set to help retailers capitalise on the Iced Coffee category which grew by 44% in the last two years [Nielsen, Aug 2016].

SNACK ATTACK No Big Night In is complete without a full complement of sharing snacks and confectionery, as Susan Nash, Trade Communications Manager at Mondelēz International, is quick to point out: “Evening snacking is worth over £6.5bn and is growing [Kantar, Sep 2016]. Chocolate is still the number one choice for those settling down for a night in with friends and loved ones, followed by candy, biscuits and crisps – so there are plenty of opportunities for cross category selling to create the perfect night in [Kantar, Sep 2016]. What’s more, 52% of all confectionery occasions take place with other people present, so having a range of sharing www.slrmag.co.uk

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formats is key to maximising this opportunity. “The savoury category also has an important role to play in the Big Night In mission. It gives consumers contrasting choices and offers great scope to create cross-category displays.” To make the most of the snacking opportunity at Big Night In time, Nash advises retailers to focus on tablets, sharing bags and biscuits when it comes to chocolate, and sharing bags when it comes to candy. She says: “In February we launched two new Cadbury Dairy Milk Oreo tablets – Mint and Peanut Butter – which aim to recruit new young adults to the tablets category. What’s more, Cadbury Dairy Milk brought back an old favourite by popular demand – Cadbury Dairy Milk Tiffin – as a permanent addition to the range in August, to help drive excitement and growth within the tablets category. “Chocolate bags is driving the growth for standard chocolate and this year we brought even more of our hero brands to the bitesize category, with the launch of Cadbury Fudge Minis, Cadbury Curly Wurly Squirlies and Cadbury Picnic Bites. All three brands are consumer favourites to recruit pre-family and younger families to drive penetration for the category. They follow the likes of Cadbury Dinky Deckers, which was successfully extended into the medium bitesize category last year, and Cadbury Dairy Milk Mixed Buttons, both of which are already worth over £19m [Nielsen, Aug 2017] in value sales since launch.” Nash also highlights Cadbury Crunchy Melts. Therse are crunchy chocolate chip cookies with a soft melting centre – the ideal rewarding treat or sign off to a meal. The new cookies come in 156g multipacks in three variants – Chocolate Centre, Double Indulgence and Soft Cookie Centre. When it comes to candy, Nash says it’s

Feature

been a great year for NPD: “We launched two new products to the Maynards Bassetts range. Maynards Bassetts Wine Gums Tangy, introduced in February, is the brand’s first sour adult candy. Our research shows that although 74% of adults are open to sour sweets, only 26% currently buy into the £22m sour segment [Nielsen, Jul 16] – so the product offers a real opportunity to inspire purchases and help retailers drive incremental sales. “Maynards Bassetts Jelly Babies Tropical, introduced in July, brings a taste of the tropics to the UK and features iconic Jelly Babies characters in the flavours of mango, banana and pineapple. Maynards Bassetts Jelly Babies Tropical aims to attract new adults and families to the category.” Dan Newell, Confections Marketing Manager at Wrigley, also focuses on the growth of sharing bags and the opportunities they present for retailers: “The Big Night In trend is showing no signs of slowing. The popularity of confectionery share bags continues as consumers continue to keep a tight hold on their purse strings, spending less money on evenings out and instead staying at home to enjoy a Big Night In. With 47% of consumers spending less money on outof-home entertainment and 50% eating out less, the Big Night In remains a key sales opportunity, as consumers are more conscious of their spending. Wrigley’s Skittles are a vital offering for Big Night In with 60% of Skittles being consumed as an evening snack, over indexing against Total Sugar Confectionery [Kantar, 2016]. “Creating a clear display that communicates the ‘Big Night In’ occasion draws shoppers into the fixture and cross category promotions will certainly encourage incremental purchases. Remember to focus the display on products that are ideal for sharing such as Starburst ‘Tear and Share’ Pouches, which are great as they are individually wrapped and offer a variety of flavours for everyone to enjoy.”

HEINEKEN’S TOP TIPS TO MAKE THE MOST OF YOUR CIDER CATEGORY AROUND THE BIG NIGHT IN: Choose the correct range: Q Group by flavour to save shoppers from having to search for their favourites Q Ensure the right packs are available – stock a mix of can packs and single bottles Q Ensure the correct range in-store to reflect your customer profile Ensure placement of these products is correct: Q Stock enough facings of fast-selling products, to ensure good availability Q Keep your chiller tidy by organising by format and keeping brands together Q Ensure price flow moves from Mainstream into Premium from left to right

NOVEMBER 2017 | SLR

02/11/2017 15:44:26

UTC

LIES, DAMN LIES AND ABVS

UTC was up in arms to discover that Carling has been brewing its beer not to the 4% it clearly states on the can – but to just 3.7%. And it’s been doing it since 2012. It will surprise no-one that the reason it has been doing this is commercial. Beer brewed at 4% attracts bigger tax bills than beer brewed at 3.7%, you see. We’re talking £50m in unpaid tax, according to HMRC who ended up in a hearing over the matter with Carling brewer Molson Coors. The brewer denies misleading the public and did not actually break any laws. The auld yin was having none of this though. Particularly after he found out that Molson Coors’ Vice President of tax for Europe said the “key driver” behind

FIERY BALLS

FLAVOUR?

UTC’s Japanese cousin Tamagotchi sent him a wee bag of crisps in the post the other day, as he occasionally does. Before he gets tucked in, the auld yin was just wondering if there were any Japanese-speaking SLR readers out there who could tell him what ﬂavour they are. The pic on the front seems to indicate some sort of extra fiery balls ﬂavour.

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the decision not to change the labelling was to stop retailers demanding “a slice” of the savings. Molson Coors won the hearing on the grounds that it should only pay tax at the level the beer is actually brewed at, not what it says on the can, and under the rule that beer is legally allowed a “natural variation of 0.5%”. Although it appears not to have varied at all from 3.7% since 2012, from what the auld yin could discern, making the brewer remarkably consistent in its ability to brew beer at a consistent ABV. UTC has decided to register his disgruntlement by re-purposing a few cheeky social media posts that arch-rival Tennent’s put out during the furore.

CAUSING A STIR

Words cannot describe the expression on UTC’s face when he learned that Swede Ellinor Persson had won the World Porridge Making Championships. As if that wasn’t sacrilegious enough, her fellow countryman Per Carlsson picked up the Speciality prize at the Golden Spurtle Awards with his Nordic Porridge dish made with oatmeal, cloudberry liqueur, orange peel and whipped cream, topped with ﬂambéed cloudberries and whipped cream. For the umpteenth time, the auld yin made the point that putting anything other than salt in your porridge is a hanging offence. And if it isn’t, it should be. He also muttered something about what would happen if Mrs UTC brought him porridge with cloudberries and orange peel in it for his breakfast, before reﬂecting and admitting that she hasn’t brought him porridge of any description since 1948.

ROLL AND BANJO, ANYONE?

Smug is the best word to describe how the auld yin looked recently when Food Standards Scotland updated its advice on eating runny eggs. It’s apparently now completely safe for everyone, even “the more vulnerable” [Like UTC, then? – Ed] to eat them, as the risk of salmonella has been totally eradicated. The auld fella’s daily roll and banjo that morning was arguably the tastiest of his life, he assured everyone at SLR Towers. [Clarification: ‘Roll and banjo’, named after the comical motion of trying to scrape yolk off your jumper after biting into a roll and aforementioned runny egg. – Ed]

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