RETAIL
THE WEEK IN
RETAIL CRIME
£142M LOST TO CRIME ACS CRIME REPORT DOCUMENTS SCALE OF CHALLENGE
IRN-BRU 1901 BACK FOR GOOD KESTREL RETURNS TO SCREENS WALKERS REBRANDS CORE RANGE
CHARITY
DO AS RAJ WOULD DO! SUPPORT YOUR LOCAL COMMUNITY IN HIS MEMORY TRADING MODELS
C2M, ANYONE?
IS CONSUMERTOMANUFACTURER THE NEXT BIG THING?
+ AMAZON FRESH AND A FOUR LETTER WORD Commercial Partner:
Brought to you by:
Issue 48 Wednesday 24th March 2021
Symbol Partner:
SUMMER CHOICES. SUMMER SALES. 5M
£
TO
R E C AT E G O
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Y*
RED
ADDED
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*SPORTS & ENERGY CATEGORY. SOURCE: NIELSEN SCANTRACK, SPORTS & ENERGY, LATEST 26 WEEKS TO W.E. 16.01.21).
THE WEEK IN RETAIL
EDITOR’S COMMENT SHARE YOUR NEWS AND VIEWS WITH ME AT ABEGLEY@55NORTH.COM
D2C? C2M? WTF? Covid has a lot to answer for, as we all know only too well. But one of the more concerning consequences has been a massive blurring of the traditional supply chain lines as manufacturers, suppliers, brands, wholesalers and retailers all to try to find new ways of getting customers to part with their hard-earned wedge. We’ve known about D2C – direct to consumer – for a long time, but it’s becoming much more of a thing these days with many big brands bypassing retailers and selling their products straight to consumers. That solution solves a lot of short-term problems for manufacturers – shifting hospitality stock for instance – but it also opens up murky new worlds where the brands start building deeper, direct relationships with the end user. It all comes down to data, of course, as so much of retail will in the future. But by selling direct to consumers, brands can start capturing all sorts of juicy data, big and small, that will help inform their decision-making going forward. There’s also the additional benefit of not having to lose a slice of margin to retail middlemen. But there’s a new trend on the horizon now: C2M. What is C2M? Well, it stands for consumerto-manufacturer and it’s huge in China. How does it work? Essentially, it’s an interesting solution that lets consumers use apps and websites to pool
their buying power and secure better pricing direct from manufacturers off the back of it. Concerned? You should be. It’s predicted to be worth billions of dollars in the next 18 months or so in China alone where the leading C2M app – Pinduoduo – is already the world’s largest online grocery retailer and brazenly states its goal is to become the world’s largest grocery retailer full stop. Users can group together with friends – real ones or social media ones – or can simply join other existing groups that exist. And this isn’t offer-based, like most other digital sales solutions. The consumer has full control. Whatever it is they want to buy, they can set up a group for it. And while it sounds like it’s probably better suited for big ticket items like televisions or sofas, that’s not the case. Grocery and takeaways feature prominently. The common thread here is that, once again, the model cuts the retailer out. Covid has helped accelerate change like nothing in living memory and there are both threats and opportunities out there that could have very significant impacts on our sector. As the ancient Chinese curse would have it, may you live in interesting times. There’s little doubt that we do indeed live in interesting times. Whether they’re cursed or not remains to be seen.
ANTONYBEGLEY ANTONYBEGLEY ANTONYBEGLEY
ANTONY BEGLEY, EDITOR
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 / SLRMAG.CO.UK / 3
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CONTENTS
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 WWW.SLRMAG.CO.UK
6
10 THIS WEEK’S NEWS IN BRIEF
THE ACS CRIME REPORT 2021
CHARITY CAMPAIGN: RAJ AGGARWAL
Circularity Scotland is confirmed as DRS adminstrator and Asda takes a major sustainability step forward.
Staggering figures clearly illustrate how retail crime is the biggest challenge facing the local retailing sector.
AF Blakemore is set to launch a UK-wide charity fundraising week in memory of the late industry legend.
8 COVID-19 UPDATE
A ROUND-UP OF THE LATEST
18 POLITICS: SGF MANIFESTO
26 OUT THE BOX: C2M PURCHASING
CORONAVIRUS-RELATED NEWS. 14 THOUGHT LEADERSHIP: AMAZON FRESH
12
AHEAD OF THE SCOTTISH ELECTIONS,
NEW APPS LET CONSUMERS GROUP
SGF PROPOSES SOLUTIONS TO KEY
TOGETHER TO BUY DIRECT FROM
CHALLENGES FACING LOCAL RETAILERS.
MANUFACTURERS AT REDUCED PRICES.
TWC’S TOM FENDER DISCUSSES AMAZON’S
20 PICKS OF THE WEEK
29 BEFORE YOU GO...
NEW UK STORES AND HIGHLIGHTS THE
POINT MOST PEOPLE SEEM TO FORGET.
TWITTER.COM/SLRMAG
A LOOK AT THE LATEST NEW PRODUCTS AND MARKETING CAMPAIGNS.
WWW.FACEBOOK.COM/SLRMAG
IT’S TIME TO DITCH THE Y-FRONTS AND SLIP ON BAMBOO PANTS INSTEAD.
WWW.SLRMAG.CO.UK
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 / SLRMAG.CO.UK / 5
NEWS DIGEST
THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
WATER ACHIEVEMENT Nisa retailers have raised more than half a million pounds for
DEPOSIT RETURN SCHEMES
CIRCULARITY SCOTLAND AONFIRMED AS DRS ADMINISTRATOR
a charity that helps to fund
CIRCULARITY SCOTLAND HAS BEEN CONFIRMED AS THE
clean water projects. On World
ADMINISTRATOR THAT WILL OVERSEE OPERATION OF SCOTLAND’S
Water Day on Monday, it
DEPOSIT RETURN SCHEME (DRS) WHEN IT LAUNCHES IN JULY 2022.
was revealed that since Nisa became part of the Co-op group in 2018, partners have raised a total of £514,000 for The One Foundation.
JISP JOINS COLLECTIVE Convenience industry consultancy C-Store Collective has announced all-in-one shopping app Jisp as its latest partner and will henceforth be recommending Jisp’s solutions, such as home delivery, click
The not-for-profit body represents a combination of over 20 drinks producers, trade associations and retailer. It will work with companies throughout the supply chain – from producers through to hospitality, wholesalers and retailers – to deliver a system that should collect at least 90% of Scotland’s drinks containers. The DRS will require consumers to pay a 20p deposit when they buy a glass bottle, can or PET plastic container. The money is then reimbursed when the empty containers are returned, contributing to a circular economy.
Both the Scottish Grocers Federation and the Scottish Wholesale Association are members of Circularity Scotland.
& collect and scan & go to its retail partners.
UWG ADDS PODFATHER Glasgow-based United Wholesale Grocers has installed PODFather logistics software to help plan routes, track deliveries, provide customer ETA notifications and capture electronic Proof of Delivery in real time, leading to improvements in customer experience and delivery performance.
BRITS ‘PREFER C-STORES TO PUBS’ New research from PayPoint has found that a convenience store is one of top three most desirable local amenities, ahead of both a pub and bank branch. The most desirable local amenity, according to a survey conducted on PayPoint’s behalf by One Poll, is a Post Office, followed by a pharmacy. The survey also revealed that two in three Brits think their convenience store has become more important to them over the past 12 months and 22% relied on their local shop to supply
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essentials unavailable elsewhere (e.g. supermarkets) during lockdown. More than a quarter of respondents (27%) said they will do more local shopping after lockdown has ended and Gen Z ranked the c-store as the most valuable local institution, higher even than pharmacies. On top of the survey results, PayPoint sales data revealed an average basket spend increase of 33% year-onyear, rising from £5.61 in February 2020 to £7.47 in February 2021.
NEWS DIGEST
THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
NISA GOES VIRTUAL
SUSTAINABILITY
ASDA DUMPS PLASTIC PRODUCE BAGS FROM 630 STORES
Nisa is going virtual on Friday as it welcomes partners to Nisa Live – its spring conference that will be hosted online. The event, which follows last
IN THE LATEST MAJOR SUSTAINABILITY MOVE, ASDA HAS DITCHED
October’s virtual Nisa Expo,
FREE PLASTIC FRUIT AND VEG BAGS IN 630 STORES.
will see retailers hear from Nisa’s senior team on various
In a bid to cut down on plastic waste, Asda has decided to remove the free plastic fruit and vegetable bags previously available in its stores, leaving customers with the options of bringing their own or paying 30p for a reusable Veggio bag made from recycled plastic bottles. The supermarket says more than 100m pieces of plastic would be removed from shelves this year. The move follows a successful nine-store trial in September. During the trial, it sold an average of 30,000 bags each week as customers got behind its efforts to tackle plastic pollution. Asda also announced it would remove plastic punnets from conference pears, saving an additional 170 tonnes of plastic each year.
SUGRO LAUNCHES SAMPLE BOXES Sugro has launched an innovative new Sample Box initiative to help members see new NPD first hand, make purchasing decisions and let suppliers get feedback on NPD. The move is also intended to drive core ranges and utilise gap fill opportunities. The Sample Box will allow wholesalers to touch, smell and taste newly-launched products as well as maximise sales. They will be supplied, prepared, packed securely and despatched for next day delivery.
topics as well as participate in question-and-answer sessions to ensure a two-way dialogue.
LOW RISK APPOINTMENT JTI has appointed Gemma Bateson to the position of Head of Reduced Risk Products. Bateson has been with JTI since 2010, most recently as Corporate Affairs and Communications Director for Worldwide Duty Free.
BRITVIC KICKSTART Britvic is creating 50 new sixmonth workplace placements for young people who have faced difficulties because of the Covid-19 pandemic. The move, part of the Government’s Kickstart scheme, follows Britvic’s long-term commitment to supporting young people through its Healthier People strategy.
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 / SLRMAG.CO.UK / 7
NEWS SPECIAL
COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
John Lewis will not reopen
CHURCH COVID CLOSURES DEEMED UNLAWFUL
eight of its stores once
CORONAVIRUS REGULATIONS THAT FORCED THE CLOSURE OF
lockdown eases, putting
CHURCHES IN SCOTLAND HAVE BEEN DECLARED UNLAWFUL
JOHN LEWIS CLOSURES
some 1,465 jobs at risk. The closures include four At Home shops in Ashford, Tunbridge Wells, Basingstoke and Chester. Department stores in Aberdeen, Peterborough, Sheffield and York are also closing.
WILKO MASK TRIAL
As part of an important legal debate, government coronavirus regulations that forced churches to close in Scotland have been deemed unlawful after a group of 27 church leaders launched a judicial review at the Court of Session. The group argued that the Scottish Government had acted beyond its powers under emergency legislation and Lord Braid agreed the regulations went further than was lawfully allowed. The ruling comes just two days before communal worship is due to resume. But Lord Braid added that he was not saying that coming together for worship was safe and that all churches must immediately open or that it is safe for them to do so.
Home and garden retailer Wilko is to trial an instore recycling scheme for disposable face masks so that they can be reused in products ranging from building materials to new furniture. From 1 April, 150 stores will have special collection bins where customers can deposit used single use face masks after doing their shopping.
SPAR ONLINE CONFERENCE Spar UK will be hosting a Virtual Suppliers Conference on 27 May with the theme of People, Purpose & Passion. The event will be held on YouTube and will be an afternoon event.
GERMANY REVERSES LOCKDOWN EASTER PLANS German Chancellor Angela Merkel has cancelled plans for a strict lockdown over Easter, only a day after the measures were announced, dismissing them as a mistake. The lockdown was agreed with regional leaders and would have seen Germany’s toughest restrictions yet
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between 1 and 5 April. Most shops would have closed and gatherings would have been strictly limited. Merkel accepted personal responsibility for the U-turn and said that “there were good reasons for it, but it could not be implemented well enough in this short time”.
NEWS SPECIAL
COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
USDAW MARKS YEAR OF COVID WITH FRESH NEW DEAL DEMANDS
DRIVE-IN FOOTFALL DRIVER
RETAIL TRADE UNION USDAW IS MARKING THE ANNIVERSARY OF
R
THE FIRST CORONAVIRUS PANDEMIC LOCKDOWN BY RENEWING ITS CALL FOR A NEW DEAL FOR WORKERS.
help ensure the country is fed, healthy and safe throughout. Usdaw members employed in our stores, distribution warehouses, food processing sites and home delivery operations welcomed the key worker status, but that respect and appreciation must not fade into the background when this national crisis passes.” Usdaw’s New Deal for Workers calls for, among other things, a £10 minimum wage, better sick pay and minimum 16 hour per week contracts.
BIKES AGAINST BOMBS With Covid-19 forcing organisers to amend the format of this year’s event, the annual wholesale and convenience industry charity bike ride in support of MAG (Mines Advisory Group) will be held on UK soil for the first time, with eight rides in eight UK locations this summer. The rides take place on 24 June (Newcastle), 25 June (Glasgow), 1 July (Bristol), 2 July (South Wales), 7 July (Midlands), 9 July (London), 15 July (Yorkshire) and 16 July (Manchester). The price per ride is £295 (with a commitment to raise another £100 in sponsorship). To find out more, email sarah.tavener@maginternational.org.
TECH SOLUTIONS
etail trade union Usdaw is upping the pressure on the government to offer a New Deal for Workers as it marks the first anniversary of the coronavirus lockdown. Paddy Lillis, Usdaw General Secretary, said: “It has been a year since the first lockdown and none of us could have imagined we would still be in the middle of a global health crisis. “Millions of low-paid workers have provided essential services to
The Bluewater shopping complex has struck on an innovative new way of driving footfall by hosting a new drivein cinema as part of plans to welcome back shoppers when lockdown ends. The Luna Cinema will apparently offer a state-of-the-art drive-in cinema experience by using the UK’s highest definition outdoor screens and in-car digital sound solutions along with click & collect food and drink. The venue will be able to hold around 180 cars with two screenings a night, as well as matinee screenings at weekends. The screen will be mounted on the top level of the centre’s multi-storey car park.
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RESEARCH
RETAIL CRIME ACS CRIME REPORT 2021
£142M LOST TO CRIME IN LAST YEAR THE LATEST ACS CRIME REPORT REVEALS SOME STAGGERING FIGURES THAT ILLUSTRATE VERY CLEARLY HOW RETAIL CRIME REMAINS THE
T
BIGGEST CHALLENGE FACING THE LOCAL RETAILING SECTOR.
he 2021 Crime Report, launched by the Association of Convenience Stores (ACS) yesterday, has thrown the spotlight one more on the horrific extent of
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retail crime. Crime has cost local shops more than £142m in the last year and almost 400,000 industry colleagues continue to face abuse on a routine basis. The report reveals that 89% of colleagues working in local shops have experienced some form of abuse, with over 1.2 million incidents recorded over the last year. Throughout the pandemic, convenience stores have stayed open, providing essential goods and services whilst adapting their businesses to ensure that they’re Covid secure. But despite limits on customer numbers in many stores and an overall drop in the number of people visiting c-stores over the last year, there have still been an estimated 1.1 million incidents of shop theft recorded in the convenience sector. ACS Chief Executive James Lowman said: “Over a million shop thefts and incidents of violence and abuse aren’t just big numbers, each one is a crime that has a personal impact on retailers and their colleagues. For so many people in local shops to have suffered this kind of abuse, just for doing their jobs, is shocking and must not be allowed to be normalised. “Convenience stores have been on the front line serving their communities throughout the last year, but despite this they have been the constant target of criminals, often repeat offenders, who aren’t being dealt with properly by the justice system. This results in fewer retailers being willing to report crimes and less trust in the ability of the police to respond to incidents when they occur. “We need action now to ensure that everyone, from neighbourhood police and the courts to Police and Crime
RESEARCH
RETAIL CRIME ACS CRIME REPORT 2021
Commissioners and central Government, takes crimes committed against retailers and their colleagues seriously. The upcoming PCC elections in May are an opportunity for every candidate to set out their priorities and commit to tackling this issue and supporting local shops.”
FINANCIAL COST OF CRIME Q Crimes committed against the convenience sector cost £142m over the last year alone, equating to over £3,000 per store. Q Stores have had to invest heavily over the last year to make their businesses safer. Over £175m has been spent by retailers on crime prevention measures like CCTV, external security staff and intruder alarms. Taken together with the cost of crimes committed, there is effectively a 5p crime tax on every transaction in stores.
COVID-19 RELATED ABUSE Q One of the biggest changes facing convenience stores over the last year has been how to adapt their stores to keep customers and colleagues safe. This has resulted in stores investing in perspex screens, new technology to manage customer numbers, and a range of other social distancing measures. Q While these changes have been welcomed by the vast majority of customers, Covid-related abuse has become one of the biggest issues facing retailers and is now one of the top triggers of violence in store. Q 65% of respondents have seen Covid-related threats to staff, with the most common causes of Covid-related abuse being: Q Reminding customers to wear face coverings Q Reminding customers of social distancing measures Q Queueing outside stores Q Requesting removal of face coverings to check ID.
VIOLENCE AGAINST RETAILERS AND THEIR COLLEAGUES Q Over the last year, there have been around 40,000 incidents of violence against people working in convenience stores.
Q Of these, over one in four involved a weapon, such as a knife, hammer, axe or syringe.
EVIDENCE FOR ACTION This year’s Crime Report launched ahead of the 2021 Police and Crime Commissioner elections that will be held across England and Wales. After just 18 of the 42 current PCCs included any reference to business crime in their Police and Crime Plans, the Association of Convenience Stores has called on all prospective PCCs to take action in four areas to support local shops: Q Create police-led business engagement teams with dedicated resource to engage with the retail sector Q Provide funding for ‘Second Chance’ Programmes to deal with repeat offenders suffering from addiction issues Q Use Community Remedy Powers THE FULL 2021 to ban repeat offenders from local CRIME REPORT shops IS AVAILABLE TO Q Provide better support for victims DOWNLOAD of violence and abuse in local shops.
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CHARITY CAMPAIGN
RAJ AGGARWAL AF BLAKEMORE
GO ON... DO AS RAJ WOULD DO SPAR WHOLESALER AF BLAKEMORE IS SET TO LAUNCH A FANTASTIC UK-WIDE CHARITY FUNDRAISING WEEK NEXT MONTH IN
S
MEMORY OF LATE INDUSTRY LEGEND RAJ AGGARWAL.
par wholesaler AF Blakemore has unveiled plans for a fantastic week-long charity fundraising campaign in memory of the much-loved and greatly missed retailing legend Raj Aggarwal. A close friend of the team at Scottish Local Retailer and an all-round true gentleman, Raj sadly passed away from Covid-19 in April 2020 at the age of just 51. Raj owned Spar stores in Wigston, Leicester, and Hackenthorpe, near Sheffield and his wholesaler is now set to honour his memory with a fundraising campaign between 19 and 26 April. Next month, AF Blakemore will be calling on convenience retailers across the UK to join its #SPARdoasRAJwoulddo and #doasRAJwoulddo campaign by donating to those most in need in their local communities.
“Convenience retailers across the UK are being asked to join the #doasRAJwoulddo campaign by donating to those most in need in their local communities.”
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#DOASRAJWOULDDO Q Donate goods, supplies and products to the charities, organisations or individuals most in need within your community. Q Make a monetary donation. Q Share what you are doing in Raj’s honour on social media using the hashtags #SPARdoasRAJwoulddo or #doasRAJwoulddo to help inspire others.
Always at the heart of his stores’ communities, Raj was renowned for putting the needs of others first. His sense of charity was best demonstrated by his large charitable donations to the Glenfield Hospital in Leicester in March 2020. He was supporting his local NHS team at the beginning of the pandemic, when they needed it most. Working with Raj’s wife, Sunita, the wholesaler aims to recognise and remember him for his commitment to helping others.
CHARITY CAMPAIGN
RAJ AGGARWAL AF BLAKEMORE
Sunita explained: “Raj was always doing things for other people, and he would love to know that he is still continuing to help others now. Please help keep his memory alive by supporting this campaign, supporting your community and making a difference to those who really need it.” Retailers all over the UK are being asked to ‘do as Raj would do’ by donating goods, supplies and products to the charities, organisations or individuals most in need within their communities. They will be invited to talk about what they are doing in Raj’s honour on social media, using the hashtags #SPARdoasRAJwoulddo or #doasRAJwoulddo, to help inspire others. A pioneer of the retail industry, Raj was a member of the Association of Convenience Stores Independent Retailer Board as well as AF Blakemore’s Meridian & Welsh Guild Board of retailers. AF Blakemore’s charitable trust, the Blakemore Foundation, is also offering to match every charitable donation from independent Spar retailers across the Meridian & Welsh Guild up to the value of £200. Jerry Marwood, Commercial Managing Director for the AF Blakemore Group, commented: “The feeling of sadness that has overwhelmed our team since hearing of Raj’s passing is testament to the role that he played in the life of our business. “Please help continue Raj’s legacy by showing our neighbourhoods that convenience retailers truly do make a difference in the communities they serve.”
“Please help keep Raj’s memory alive by supporting this campaign, supporting your community and making a difference to those who really need it.” [ Sunita Aggarwal ]
More information on the #SPARdoasRAJwoulddo and #doasRAJwoulddo campaign is available on AF Blakemore’s website. Anyone who wants to can also give a monetary donation in memory of Raj.
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THOUGHT LEADERSHIP
AMAZON FRESH TOM FENDER, DEVELOPMENT DIRECTOR, TWC
AMAZON FRESH AND A FOUR LETTER WORD TWC’S TOM FENDER DISCUSSES THE TWO NEW AMAZON FRESH ‘JUST WALK OUT’ STORES AND
T
HIGHLIGHTS THE POINT MOST PEOPLE SEEM TO FORGET.
hose of us who have visited either of Amazon’s new Fresh stores in Ealing and near Wembley have been impressed by the technology. But the biggest advantage Amazon has is not the technology. They have that in place now and it will improve. No, the biggest advantage Amazon has now – and is only going to grow with each customer transaction – is DATA. David Sellinger wrote in 2014: “While conventional wisdom has held that customer service is Amazon’s secret sauce, Bezos’s core innovation was to place data at the centre of his corporate culture.” We have had seven years to understand and replicate this. How many businesses have? So, having been asked by The Week In Retail for them, here are my thoughts on Amazon Fresh in the UK... Amazon wants to know everything about you – what you buy, what you listen to, what you’re spending money on. The one major gap in their knowledge bank is ‘food’, despite their purchase of Whole Foods and their work with Morrisons. Will Amazon need to open hundreds of ‘Fresh’ stores to get the intelligence/knowledge they need to understand the principles of convenience shopping? Probably not. You need to be an Amazon customer to get access to the store, but with more than 90% of the UK population thought to hold Amazon accounts, that shouldn’t be a problem. Those millions of customers have made life very easy for Amazon by helpfully giving the company their precise address. Maybe those clever people at Amazon will send offers direct to those people living close to a new Fresh store. I am one of those customers, so what does this mean for me?
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Amazon can link my food purchases to non-food purchases I make on the Amazon website, building up an even better understanding of me. Here are some examples: Q I buy a BBQ on a Monday for delivery on the Thursday – Amazon sends me incentives to buy burgers, beer, sausages. Q I buy gym equipment/sports equipment. They ping me offers on healthy foods too. Q I buy toys or items for a pet – they send me offers for dog/ cat food. Q I start buying items for new born babies – Amazon starts sending me offers for nappies, baby food etc. Amazon have all transactions logged to a specific individual – their name, address, email address, telephone number, interests, hobbies and a pretty good guess at their age. knowledge and data becomes the biggest competitive advantage in the food industry, not price, not range, not NPD, not promotions, not home delivery. Amazon will know what food products I buy on a regular basis. Amazon can send me offers to keep me loyal… or to encourage me to ‘trade up’, creating premiumisation on an
THOUGHT LEADERSHIP
AMAZON FRESH TOM FENDER, DEVELOPMENT DIRECTOR, TWC
industrial scale. They also know what products are typically bought with other products. If I buy product A, but not product B, when most people like me buy Product B with A, then send me an offer to try Product B. This offer voucher will obviously be paid for by the manufacturer of Product B (not by Amazon). The vouchers will be digital, which are much cheaper than paper vouchers. But they also have a far higher ROI for suppliers because they are targeting the right people with the right product – it brings an end to blanket carpet-bombing of paper vouchers. If I stop shopping at the Amazon Fresh store, they can check I am OK (although they will know I am heading off on my hols, because I will have bought new shades and sun cream from Amazon)… that I am not bedridden (let us send you some paracetamol) or not annoyed for any reason. Incentives are sent to re-engage me. So far in this customer journey, Tesco can do a lot of this via their Club Card (as long as a customer remembers to have it instore with them), but let’s consider how much more Amazon can do. They can link meal occasions to events – so if you download a movie, Amazon can offer linked deals of food and drinks. They can even offer food and drinks based on the type of movie downloaded – certain types of movie are likely to be watched by certain types of people, who will want certain types of food and drinks (date night, romcom, action, documentary). Amazon will get it occasionally wrong, but machine learning will mean they will learn from their mistakes. Of course, a lot of those movies are on Amazon prime so suppliers will be encouraged to sponsor around the movies which are likely to generate the interest in the products viewers will want to eat/drink. They also know what music their subscribers listen to and what genre it is, so someone who regularly listens to running playlists, can be targeted with sports products (protein
shakes, energy bars) along with gym equipment and clothing. They know what their customers are reading too so if a customer buys cookery books, Amazon can offer a discount on food and kitchen equipment. They ‘save’ your purchases so that you can ‘repeat purchase’ again in one easy click. How many purchases in UK c-stores are repeat/regular? 50%? That’s £20bn every year of repeat purchasing in UK c-stores – with almost no effort made by retailers to remind customers and/or simplify the process for them. This might be called ‘low hanging fruit’ in the corridors of Amazon towers. Amazon could be capturing so much of a household’s shopping that it could reach a stage where consumers pay a subscription direct debit of £150 pcm and it covers music, food, TV/movies, reading material/books. It is the ultimate in subscription lifestyles - you pay a fixed fee, and they deliver everything. By opening up a chain of physical stores, Amazon is setting up a distribution network for click-and-collect and returns which they can control – ‘the last mile’ is always the most difficult and costly for a distributor. And I suspect there could be quite a few empty commercial premises available for cheap rent (or purchase) following the pandemic. Don’t forget you can also use Amazon as a bank now as a payment service. So if their customers shop somewhere else, payment can be made by Amazon Pay – hence they know what Is being spent even when it is not with them. Finally, Amazon’s offering helps attract a younger shopper… UK c-stores are predominantly used by older consumers. The opportunities are endless. But it all comes down to DATA. If the word ‘data’ scares you, put it another way – it’s about knowing your customers better than your competitors know their customers and, sometimes, even knowing what your customers want to buy before they know themselves.
“While conventional wisdom has held that customer service is Amazon’s secret sauce, Bezos’s core innovation was to place data at the centre of his corporate culture.”
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 / SLRMAG.CO.UK / 15
£1.25M
sales generated by our top retailer in 12 months (1)
17.6K
av. weekly delivery sales by top 10 stores in January (2)
£27.74
average basket spend vs £7.60 industry average (3)
Fully supported onboarding, sales ramp up and dedicated Account Manager to help you succeed call: 0333 900 1250 email: contact@snappyshopper.co.uk web: retailers.snappyshopper.co.uk
(1)
12 Months to 31st January 21 /
(2)
Sources: Lumina UK Convenience Market Report 2020 /
(3)
Sales W/C 31st January 21.
POLITICS
SCOTTISH PARLIAMENT ELECTIONS SCOTTISH GROCERS FEDERATION
SGF UNVEILS ITS MANIFESTO AHEAD OF THE SCOTTISH PARLIAMENT ELECTIONS ON 6 MAY, SGF HAS PUBLISHED ITS MANIFESTO DETAILING PROPOSED SOLUTIONS TO KEY CHALLENGES FACING THE LOCAL RETAILING SECTOR.
Scottish Grocers Federation is the national trade body for the independent convenience store sector. Throughout the Covid-19 pandemic, local convenience stores stayed open, they provided essential grocery products and services to communities including post offices and access to cash, supported vulnerable customers, and boosted the local economy. Ensuring a vibrant and successful convenience store sector is vital to our communities and to our local economies. The next Scottish government (and the Scottish Parliament) have a crucial role to play.
THE CHALLENGE: THE COST OF DOING BUSINESS – BUSINESS RATES The cost of doing business is the most crucial challenge facing small retailers. Business Rates are always amongst the top three costs faced by our members.
THE SOLUTION Q Continue with the Small Business Bonus Scheme for the lifetime of the next parliament. Q There should be no conditionality attached to receiving the Small Business Bonus. The eligibility threshold should be raised to a single threshold of £50,000 (for both individual and combined premises).
THE CHALLENGE: COVID RECOVERY – SUPPORT RETAILERS Policy and legislation from government – however well intentioned – always has a disproportionate impact on smaller retailers. They do not have large scale back office functions which can reduce the impact of compliance, they do not have the financial strength to cope with the sudden increases in cashflow and they cannot pass costs onto customers as efficiently as larger retailers.
THE SOLUTION Q To support the convenience sector as it recovers from the pandemic there should be a 12-month moratorium (August 2021-August 2022) on any new legislation which would materially impact on the convenience store sector. Q Any legislation to restrict food promotions must include meaningful exemptions for local convenience shops that would be disproportionately impacted by restrictions on the location of products in stores.
18 I SLRMAG.CO.UK / ISSUE 48 / WEDNESDAY 24TH MARCH 2021
POLITICS
SCOTTISH PARLIAMENT ELECTIONS SCOTTISH GROCERS FEDERATION
THE CHALLENGE: SUPPORTING LOCAL The capacity of local convenience stores to support Scottish suppliers and manufacturers should be enhanced. This is vital to enable the food and drink sector in Scotland to recover from the impact of the pandemic.
THE SOLUTION Q The next Scottish government should commit to developing a funding stream for convenience stores to connect with local manufacturers and boost the local, Scottish offering in convenience stores. Q The next Scottish government should commit to taking forward a Retail Strategy built around the local economy.
THE CHALLENGE: RETAIL CRIME Coping with impact of retail crime is a major issue for local shops. Remarkably neither the Scottish government nor Police Scotland collect data on retail crime. There is no accurate picture of the prevalence of crime, no year-on-year comparisons are available, and the impact of retail crime is not accurately understood.
THE SOLUTION Q The next Scottish government should commit to collecting and analysing all instances of retail crime. Q The next Scottish government must work with the Crown Office and Procurator Fiscal Service to implement robust, appropriate sentencing and recording for retail crime, particularly shoplifting.
THE CHALLENGE: TRAFFIC AND ROAD MANAGEMENT – DO NOT DAMAGE BUSINESSES Convenience stores are part of a complex supply chain. In the modern convenience stores, stock control is based on a just in time system. Any change to road layout, parking spaces and street usage can severely impact on speedy and effective stock delivery.
THE SOLUTION Q The next Scottish government should ensure that local authorities have a statutory requirement to conduct robust businesses impact assessments when developing Traffic Redirection Orders or extending bus lanes, cycle path, on-street parking restrictions and parking charges. The cumulative impact of these interventions restricts customer access to vital local shops.
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 / SLRMAG.CO.UK / 19
NPD AND MEDIA
PICKS OF THE WEEK SPECIAL – WALKERS TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
WALKERS ROLLS OUT NEW LOOK ON CORE RANGE
WALKERS HAS UNVEILED A BRAND NEW LOOK FOR ITS ENTIRE CORE RANGE IN LINE WITH ITS LATEST MASTERBRAND CAMPAIGN.
Walkers is introducing a brand-new look across
“This fresh new look for Walkers forms part
its entire core range of crisps, adding a splash of
of our wider brand ambition to drive greater
humour to tie in to its latest campaign, ‘When life
purpose. The launch of our new brand campaign
gives you potatoes, make crisps’.
is centred on inspiring the nation to turn everyday
With clear signposting to Walker’s use of
life adversities with a bite of levity and positivity.”
British potatoes, the packs feature some fun facts
Walkers is joining up with Comic Relief in a
and history into the brand’s sustainable sourcing
long-term partnership to demonstrate the power
credentials, great taste promise and zero use of
that humour can have to positively influence
additives, artificial colours or preservatives.
mental wellbeing. To kick-start the collaboration,
Fernando
Kahane,
Marketing
Director
Walkers
launched
its
‘#WalkersTweetRelief’
Walkers Snacks at PepsiCo, explains: “We
event last week, raising awareness and pledging
harvest only the finest potatoes from over 80
to donate £1 to Comic Relief for every positive
farms around Britain and this is something we
tweet sent using the hashtag. The campaign
want to share with consumers. The new packs
received
will feature a QR code which will link through to
thousands of people helped raise money for
the Walkers website, where people can find out
Comic Relief.
more about how we care for our spuds and the planet.
20 I SLRMAG.CO.UK / ISSUE 48 / WEDNESDAY 24TH MARCH 2021
over
250,000
engagements,
and
A new TV ad will also follow alongside out-ofhome advertising and a social media campaign.
NPD AND MEDIA
PICKS OF THE WEEK SPECIAL – KESTREL TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
KESTREL TARGETS ‘THE BOLD’ WITH NEW TV AD
HERITAGE BEER BRAND KESTREL CONTINUES ITS REJUVENATION STRATEGY WITH A BOLD NEW TV AD CELEBRATING THOSE WHO ‘LIVE LIFE GLASS HALF-FULL’.
Iconic Scottish heritage beer
coincide with the launch of ‘The
brand Kestrel has unveiled
Flying Kestrel’, a new global TV
that over the last six months
Ex-factory
data
a new 40-second TV ad to
documentary series which tells
the brand has achieved sales
continue the rejuvenation of the
the story of the beer brand’s
growth of over 40% in the UK
brand and support sales growth
renovation of a classic 1935
and export sales expansion of
in both the UK and export
Riley Kestrel car into a multiple
103% across key developing
markets around the world. A
land speed record breaker.
markets
including
shows
the
US.
deals
will
hugely successful brand in the
The ad is airing initially
80s and 90s, the famous lager
across a number of digital
take Kestrel into India, China,
has returned to its roots and is
platforms
channels
Vietnam, Australia and Russia.
now brewed in Glasgow and is
including Samsung TV Plus,
The latest campaign will
available in 5% and 9% ABV
Amazon
variants.
international
‘Brewed for the Bold’ aired for the first time on Sunday to
and and
New
distribution
Insight
TV’s
extend into print and digital
network
and
outdoor supported by dedicated
celebrates those who live life
social media, influencer, PR
‘glass half-full’.
and e-commerce programmes.
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 / SLRMAG.CO.UK / 21
Give your customers control EDGEPoS Self-Checkout gives retailers more choice to utilise space and staff throughout the store, enhancing the customer shopping experience.
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NPD AND MEDIA
PICKS OF THE WEEK SPECIAL – IRN-BRU 1901 TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
1901 HERE TO STAY IRN-BRU’S ‘OLD AND UNIMPROVED’ FULL SUGAR 1901 LIMITED EDITION HAS BEEN CONFIRMED AS A PERMANENT LINE BY THE ICONIC SCOTTISH COMPANY.
In a move that will surprise absolutely no one, Irn-Bru has confirmed that its limited edition 1901 product returned to shelves permanently on Monday. Made to a unique recipe that dates from 1901, this full sugar, sweetener-free ‘old and unimproved’ Irn-Bru proved incredibly popular with fans when it was first released, with many apparently going far and wide to get their hands on it as stock ran low. Now, fans can rest easy knowing the 750ml glass bottles of the ginger nectar will be available for them to enjoy year-round – just as it was in the year that Queen Victoria died and Imperial Tobacco was founded. The authentic 1901 formulation came from a handwritten recipe book which, legend has it, was stored deep in the Irn-Bru archives for more than 100 years. Its distinct difference comes from its ingredients, including quillaia for a frothy head. The drink is sweetened only with sugar and contains no caffeine. It does, however, still have the same top secret Irn-Bru essence. Adrian Troy, Marketing Director at Irn-Bru, says: “1901 proved super-popular with fans who really loved the recipe but were disappointed when stock ran dry. Now it’s back for good, so shoppers can enjoy it year-round.”
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 / SLRMAG.CO.UK / 23
NPD AND MEDIA
PICKS OF THE WEEK TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
BRAND NEWCRUSH
SPLASH OUT
IRON BREW BABIES
Imperial Tobacco is adding
Radnor Splash has
Millions Iron Brew Jelly Babies
a New Crush variant to its
unveiled new flavours and
have returned to Aldi stores
Embassy Signature range. It
environmentally-friendly
across Scotland as part of its
offers ex-crushball smokers
retail-ready pack sizes. New
everyday range. Developed
a modern blend of Virginia
12 x 500ml pack flavours
by Golden Casket, the line
tobaccos, premium paper and
include Forest Fruits, Orange
was originally launched as
a cooling sensation filter.
& Passionfruit, Apple &
part of Aldi’s Next Top Product
RSPs £9.50 (20s) and
Raspberry and Watermelon.
competition.
£47.50 (100s)
RSP: £3.45 (12-pack)
RSP: 99p
WEETABIX MELTS
GALAXY A-PEEL
OH BROTHERS
Weetabix has launched new
Mars Wrigley UK has unveiled
Brothers Cider is expanding its
Weetabix Melts, soft-centred
new Galaxy Smooth Orange
range with the addition of two
crunchy bites in two flavours:
which features Galaxy
new flavours: Pink Grapefruit
milk and white chocolate.
chocolate with a citrus infusion
and Honeycomb. Additionally,
Available in wholesale from
of intense orange. The product
the company is also bringing
the end of this month, the line
is available in two pack
its Cloudy Lemon variant
has no red traffic lights and is
formats: single bar and large
back. All three are gluten-free,
non-HFSS.
block.
vegan-friendly and have a 4%
RSP: £2.99
RSPs: 66p / £1.39
ABV strength.
24 I SLRMAG.CO.UK / ISSUE 48 / WEDNESDAY 24TH MARCH 2021
NPD AND MEDIA
PICKS OF THE WEEK TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
BECKS HITS THE MED
CITRUS NOTES
DISCOVER TOKYO
Haig Club and Brand Partner
Dunnet Bay Distillers has
Asahi Super Dry is inviting
David Beckham have unveiled
released a Citrus Coastal
consumers to ‘Discover Tokyo’
a new 35% ABV Mediterranean
Edition of its Rock Rose
and immerse themselves in a
Orange variant. Available in
Scottish Gin. The 41.5% ABV
45-minute journey through the
wholesale from mid-April,
gin is available from the end
streets of Japan’s capital city
the new spirit drink has been
of this month and is “flavourful
to a backdrop of original music.
created to appeal to a wider
and fresh, zesty and with a
Consumers can buy special gift
audience.
bracing sea air finish”.
packs of beer and accessories
RSP: £25
RSP: £37.50
for the trip.
RYE SMILE
OUTDOOR GRYLLS
VIMTO SHAKE-UP
From 1 April, Speciality Brands
Nature Valley has become the
Vimto is re-launching its core
will exclusively distribute a
founding title partner of new
squash range this spring,
range of craft spirits from
immersive experience ‘Nature
fortifying the full squash
Canadian company Corby
Valley Gone Wild Festival with
portfolio with Vitamin D, and
in the UK. The new range
Bear Grylls’ this summer, in a
becoming the only squash
includes Lot No. 40 Canadian
partnership designed to further
brand to offer both Vitamins
rye whisky, Pike Creek
build on the leading snack bar
C & D. It will also unveil a
Canadian whisky and Ungava
brand’s £2m #GetOutMore
new Blackberry, Raspberry &
gin.
campaign.
Blueberry flavour.
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 / SLRMAG.CO.UK / 25
NOW THAT’S A GOOD IDEA…
OUT THE BOX CONSUMER TO MANUFACTURER PURCHASING
IS ‘CONSUMER-TOMANUFACTURER’ THE NEXT BIG THING? NEW APPS ARE GIVING SHOPPERS THE POWER TO GROUP TOGETHER TO BUY DIRECT FROM MANUFACTURERS AND SECURE REDUCED PRICING. SO, IS C2M COMING TO THE UK?
WHAT’S THE BIG IDEA?
HOW DOES IT WORK?
C2M
New apps such as Pinduoduo and Biyao are giving consumers the power to buy direct from the manufacturer and drive down prices. Users have the option to buy an item for its RSP immediately or to team up with others to get a significantly discounted price.
WHICH MEANS...? Consumer-to-manufacturer.
NOT MANUFACTURER TO CONSUMER? Nope. The general idea is that new apps are giving shoppers the power to group together to secure reduced pricing when the buy direct from manufacturers.
IS IT COMING TO THE UK?
IS IT ALREADY A THING?
ParcelHero seems to think so. It says C2M apps “will take Brits by storm. The company’s Head of Consumer Research, David Jinks, says C2M originated in China where it is growing at over 24% a year.
Not in the UK. But C2M is already set to be a £4.33bn market globally by the end of next year, according to delivery firm ParcelHero.
SO RETAILERS WOULD BE CUT OUT OF THE SUPPLY CHAIN?
“Users have the option to buy an item for its RSP immediately or to team up with others to get a significantly discounted price.”
26 I SLRMAG.CO.UK / ISSUE 48 / WEDNESDAY 24TH MARCH 2021
In a word, yes. Jinks is worried that it’s another major challenge for retail. While C2M is a win-win for manufacturers and shoppers, it’s another problem that retailers could do without. Big data from C2M sites also gives manufacturers a clearer idea about the demand for their products. For consumers, the option to shop as a team slashes prices.
HOW MUCH CAN CONSUMERS SAVE? At the moment, China’s Pinduoduo app enables shoppers to secure savings from a typical 20% reduction up to 50% off or more.
NOW THAT’S A GOOD IDEA…
OUT THE BOX CONSUMER TO MANUFACTURER PURCHASING
HOW DO CONSUMERS TEAM UP WITH EACH OTHER? The shopper either starts a new team themselves by inviting friends and family via social networks or joins an already existing group purchase. A team needs to be formed within 24 hours to have the order confirmed. Once a team is formed, the purchase is approved and the product is shipped within 48 hours.
IS IT MAINLY NON-FOOD THEN? In China, a huge range of items, including cosmetics, car accessories, tech and clothes is available – but consumers also use the apps for groceries and takeaways.
IS IT A GENUINE THREAT? Well, Pinduoduo is the fastest-growing app in China and ParcelHero believes that a similar app would have equal success here in the UK. Initially, however, there could be a few hurdles to overcome. China has far more manufacturers than Britain, which gives the likes of Pinduoduo a wider spread of products than would be feasible in the UK. Nonetheless, Britain has a huge number of relevant companies. For
example, takeaways can join the app. So, if enough friends want pizza or chicken and fries, that could set the price of a takeaway tumbling by 20% or more.
WOULD UK CONSUMERS TAKE TO IT? Brits are well-accustomed to the concept of group buying. Many already use Groupon, KGB Deals and Wowcher. The attraction of C2M sites, however, is that they put the shopper in the driving seat. Individuals can kick off a team purchase on whatever item they want from an app, without waiting for special offers.
WHO’S USING THEM IN CHINA? C2M sites are particularly aimed at young consumers who think of shopping as a social activity, so there are also games, free products and social activities on the Pinduoduo app. It makes an excellent retail environment. The real question is whether a home-grown version will seize the British market or whether one of the Chinese giants will move quickly to conquer the UK. Pinduoduo already has an English language site... and it has declared its ambition to become the world’s largest grocer.
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 / SLRMAG.CO.UK / 27
SUPPORTING GROCERY COLLEAGUES The GroceryAid Covid-19 Fund is designed to help colleagues who need support now and throughout the full impact of the pandemic. Grocery colleagues have access to:
“Amid the huge challenge of Covid-19 our trade has done a great job of keeping the nation fed. GroceryAid has raised a special Covid-19 fund to help our industry colleagues at this time of need. The 24/7 Helpline will deal with concerns and assist with financial stress caused by this terrible virus.” - Charles Wilson, GroceryAid President
Mental Health Support Offering ‘in the moment’ emotional and practical support for colleagues dealing with shock, anxiety and stress through BACP trained counsellors, our Health and Wellbeing portal and Woebot, our AI Robot App. Bereavement Financial Assistance Providing financial assistance for the loss of a loved one through Covid-19. Available to colleagues who lose a partner or the immediate family of a colleague who has passed away as a result of Covid-19 whilst working in our industry. Crisis Grants Non-repayable grants, designed to help with financial emergencies. This is available for colleagues experiencing unexpected financial difficulties due to Covid-19 with a year’s industry service.
GroceryAid Helpline: 08088 021 122 Visit: www.groceryaid.org.uk Follow us:
BEFORE YOU GO
RETAIL RANDOMS BAMBOO UNDERWEAR / HEART RESEARCH UK COOKBOOK
OH TO BE A PANDA Taking our environmental responsibilities seriously is clearly critical for retailers in this new woke world of ours, but just how far are you prepared to go to reduce your carbon footprint? A random release that dropped into our inbox this week offered a fresh opportunity to minimise our impact on the world in an entirely unexpected way: bamboo underwear. Yes, that’s underwear made out bamboo. Apparently, bamboo fibre is four times softer than cotton and requires 33% less water to grow. So it’s time to toss all those heavily soiled Y-fronts into the (recycling) bin and slip into a pair of bamboo boxers. And when you put them on, you instantly look like this. Sustainability’s great, innit?
HAVE A HEART National charity Heart Research UK has launched its first charity cookbook, featuring 17 recipes from celebs, chefs and some of the web’s biggest food bloggers including Joe Wicks and the Hairy Bikers. The e-book is available to download for a suggested donation of £5 and recipes range from light breakfasts and brunches, through to healthy snacks, show-stopping main meals and family favourites, and even a few desserts. All of the money raised will support Heart Research UK’s lifesaving work, funding pioneering research into the prevention, treatment and cure of heart disease. So have a heart and buy a copy. Please and thank you. Download the cookbook here.
WEDNESDAY 24TH MARCH 2021 / ISSUE 48 / SLRMAG.CO.UK / 29
Helping you to make an extra 3% Gross Profit Ease of use
Simple to use touch screen till software
Backoffice admin software
Cigarette Gantry integration
Indepth reporting and analysis
Touch screen handheld device to control the shop from the shopfloor
Supplier Data links with all major Wholesalers
Credit Card integration
Weekly health check reports to guide you to improve your sales and margin.
Access to background database with over 100,000 products
Benefits of MPos ✓ Built around a retailer, not a computer user ✓ Simple to use till, powerful admin tools ✓ Built from retailers perspective ✓ Reduces labour by downloading products, price changes, invoices and promotions
✓ Reduces labour by allowing one click order generation and one click invoice downloads - easily shave off 10 hours of work per store
✓ Increased control on stock; all stock deliveries downloaded and all stock adjustments emailed to the owner; NO stock is unaccounted for
✓ Emails store performance to the user with real actionable data once a week rather than stats heavy reports that overwhelm the user
✓ Based in Scotland with excellent support and training program
✓ Easy to use Hand Held terminal to control the store from shop floor ✓ Integration with Credit Card terminals, Zapper, Cigarette Gantry, Loyalty Schemes and more ✓ Developed and supported by people that know the retail trade
So How much Could our System make for you? We can demonstrate a 3% uplift in Gross Profit in using our system.
£5,000 £10,000 £15,000 £20,000 £25,000
£7,800 Current Weekly Turnover Extra profit per annum
£15,600 £23,400 £31,200 £39,000
Even a Single Lane system can more than pay for itself in the first 4 months!
MHouse, 349 Shields Road, Motherwell, ML1 2LD
Tel: 0800 242 5360 email sales@mhousesolutions.com
