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MCCOLL’S ACCELERATES MORRISONS PLANS
£30m TO GROW MORRISONS DAILY CHAIN
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PASS THE PARCEL POST OFFICE’S HISTORIC DEAL
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Issue 69 Wednesday 18th August 2021
IT
NEW
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T H E W E E K I N R E TA I L
EDITOR’S COMMENT SHARE YOUR NEW S AND VIEW S W IT H M E AT ABEGLEY@ 55N ORT H .C OM
Delivery deals or parcel partnerships? Good news came to postmasters across the UK this week as The Post Office signed its first agreement with an external firm in its 360-year history. A deal with DPD means the parcels carrier will now be able to leave packages at post offices from next week, offering a click-&-collect service to 250 branches by the end of the month, and at 1,500 sites before the peak Christmas period. Deals such as these are becoming commonplace as online spending hits new highs. In July, the UK’s internet shoppers spent a record £10bn, according to the Adobe Digital Economy Index. The increase brings the total spent online in the UK this year to £64.9bn, a rise of 18% compared with the same period last year, and 56% higher year-on-year than in 2019. Consumer delivery company Hermes recently unveiled a partnership with Tesco to expand its ParcelShop services. The deal, which will go live on 6 September, will see customers will be able to pick up their packages from the supermarket giant’s convenience estate all over the UK. In addition, Co-op has agreed to extend its partnership with John Lewis for click-&-collect delivery and returns to seven additional stores. The move forms part of a phased roll-out which will see the total number of John Lewis click-&-collect locations at Co-op stores increase to around 650
by the end of the year.And the growth of click-&collect is expected to increase as people return to work as pandemic restrictions ease and therefore won’t be at home to accept parcel deliveries. You wouldn’t bet against more and more similar partnerships formed in the future as consumers look for maximum convenience and options for sending, receiving and returning their parcels, while retailers will seek ways to increase footfall and deliver environmental benefits, as multiple parcels get delivered to one single location for collection. Nobody would argue that postmasters deserve the rewards that this deal potentially offers for the role they’ve long played in supporting their customers and communities and particularly during the pandemic, usually for very little financial reward.
LIZ WELLS, DEPUTY EDITOR
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CONTENTS
WEDNESDAY 18 AUGUST 2021 / ISSUE 69 W W W.SLR M AG.C O.U K
6
10 THIS WEEK’S NEWS IN BRIEF
17 PASS THE PARCEL
CRIME
Forecourt retailers welcome the government’s hydrogen strategy and a vaping loophole is closed.
The Post Office opens its network to external carriers for the first time in its 360-year history in a landmark deal with parcel delivery firm DPD.
Central England Co-op repeats a call for better protection for shopworkers after several colleagues are injured during a violent incident.
9 Covid-19 update
16 Financial results: McColl’s
21 Symbol groups: One Stop
12 Business awards: SLR Awards
22 Sustainability: Premier Foods
18 Business intelligence: IGD
The SLR Awards shortlist is revealed.
14 Home delivery: Snappy Shopper
Snappy Shopper reports record home delivery numbers in July.
15 Home delivery: Gopuff
On-demand grocer Gopuff snaps up European home delivery platform Dija.
TWITTER.COM/SLRMAG
Widening pre-tax losses recorded.
Top global convenience retailers predicted
CCEP’s Nick Brown hired to oversee its growing sustainability agenda.
23 Picks of the week
to add $43.1bn in sales in five years. 19 Mergers and acquisitions
28 Out the box: Nisa Clothing Banks
Consolidation in the grocery industry looks set to continue.
20 Social media roundup
WWW.FACEBOOK.COM/SLRMAG
Nisa’s new clothing banks initiative looks set to raise more funds for good causes.
31 Before you go...
WWW.SLRMAG.CO.UK
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NEWS DIGEST
THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
DRIVER WOES The Driver and Vehicle Standards Agency has launched a recruitment drive for 40 additional vocational driving examiners to help
DECARBONISATION
Forecourt retailers welcome government’s hydrogen strategy With modification, existing forecourts could encourage the widespread adoption of hydrogen as a vehicle fuel source.
combat the ongoing driver shortage, which is impacting supply chains across the sector. The additional examiners will enable DVSA to offer more lorry driving tests.
TOURIST ATTRACTION Regional high streets will see a £17bn tourist spending boom this year, with 29 million Brits
Forecourt retailers are “excited” by the opportunity that the government’s newly-launched hydrogen strategy brings, according to the sector’s trade body. The government this week launched a strategy to meet its goal of five gigawatts of low-carbon hydrogen production by 2030 to power homes, industry, and transport. Gordon Balmer, Executive Director of the Petrol Retailers Association, said: “Existing forecourts currently provide
an extensive nationwide fuelling infrastructure. With modification to accommodate hydrogen fuelling facilities they could encourage the widespread adoption of hydrogen as a vehicle fuel source. “Forecourt retailers are excited by this opportunity and stand ready to work with government to overcome the challenges highlighted, invest in hydrogen, create and protect jobs and help to improve the environment.”
holidaying in the UK, new Direct Line research reveals. The survey, which excluded London businesses, found that 49% of tourists said they’ll buy goods from independent stores
JET Newton Park reopens after five-month refurbishment
while they’re on holiday.
AMAZON OWN-BRAND Amazon has added own-brand products to its UK website, reports suggest. The ‘By Amazon’ range of groceries includes coffee, chicken, bin bags, and toilet paper. Customers are being offered 20% off much of the range if they subscribe to receive the products on a rolling basis.
State-of-the-art HGV and retail forecourt facilities have been introduced, including brand new pumps, a larger HGV loading area, and the complete range of all JET-branded fuels are now available. In addition, ‘at pump’ AdBlue facilities, new shower facilities, and a new
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Spar with food-to-go have been added to the site in Darlington. JET Newton Park Service Station Operator, Shelley Atkinson, said the refurb had been a journey: “Me and my team take real pride in what we do and the service we provide, and we now have a site that ticks every box.”
NEWS DIGEST
THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
ONLINE SALES OF GROCERIES FALL
VAPING
Vaping clarifications close loophole
The percentage of households
A surge in new disposable vaping prompts goverment agency to update guidance on what can – and cannot – be legally sold in stores.
buying groceries online is at its lowest level since October as pre-pandemic shopping habits return, new Kantar figures reveal. The data shows consumers made an extra 108,000 shopping trips in the past four weeks as Covid restrictions continued to ease around the UK.
FREE REFILLS Morrisons is set to roll out a free water bottle refill service in every store nationwide. The initiative is being rolled out after the successful 12-week
The Medicines and Healthcare Products Regulatory Agency (MHRA) has updated its guidance on the sale of vaping products after discussions with the UK Vaping Industry Association (UKVIA) and trading standards. UKVIA decided to talk to trading standards and the MRHA after receiving numerous enquiries about the legality of stocking new-to-the-market products, in particular new disposables. The MHRA’s guidance for vaping retailers had read: “When sourcing new supplies of any e-cigarette or e-liquid product, check that details of the notification for the product have been published in the list of Notified Products. “If you cannot find the product on the MHRA’s website, ask your supplier
to confirm that the product complies with the TRPR and has been notified to the MHRA. If a producer has not notified the product or it does not comply with the TRPR, they may not supply it to you.” In the wake of the discussions, the new wording says: “When sourcing new supplies of any e-cigarette or e-liquid product, check that a compliant notification has been published in one of the Notified Product lists above. If you cannot find the product on the MHRA’s website, ask your supplier to confirm that it has been published and provide details to enable you to confirm the product’s status. If a product has yet to achieve publication status, they may not supply it to you.”
trial in August last year. The move is part of Morrisons’ bid to help customers cut back on single-use plastic.
ENVIRONMENTAL EFFORTS Aldi is to save the equivalent of more than 2,000 tonnes of carbon emissions a year by installing fridge doors as standard in its new and newly refurbished stores. The change, which follows a successful trial, will reduce each store’s energy consumption by something in the region of 20%.
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NEWS SPECIAL
COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
Businesses back vaccine rollout with incentives
MASTERCARD TO AXE MAGNETIC STRIPS
18- to 30-year-olds tempted with vouchers in bid to increase jab take-up.
Mastercard is set to become the first credit and debit card maker to phase-out magnetic strips on its cards. The payment giant has confirmed the magnetic strip, which has been around since the 1960s, will no longer appear on new cards it makes in Europe, including the UK, from 2024. It plans to phase them out to encourage safer methods such
last month to backing the vaccination programme by providing exclusive offers to those who have received a jab. Deliveroo’s support will include thousands of £5 vouchers for those who get the vaccine. Health and Social Care Secretary Sajid Javid, said: “It is fantastic to see more companies backing the phenomenal vaccine rollout and joining the public as they do everything they can to continue protecting their loved ones, themselves, their community and this country.”
as contactless and
TECH SOLUTIONS
Asda, lastminute.com and FREE NOW are among the latest companies to offer rewards to vaccinated people in a move to further bolster national effort to boost vaccine uptake for younger people. The supermarket giant will offer £10 vouchers for their clothing brand George to 18- to 30-year-olds who spend over £20. These will be offered at the vaccine pop-up clinics located in Old Kent Road in London, Watford, and Birmingham. The companies will be joining Uber, Bolt and Deliveroo, which committed
biometric payments. Mastercard and Samsung recently announced they are working on a credit card with a built-in fingerprint scanner. The biometric card, which would do away with PINs, is to be rolled out in South Korea later this year.
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C OV E R
PARC
POST OFF
Pass the parcel The Post Office has signed an historic new deal with parcel carrier DPD, the first time it has worked with external carriers in 360 years.
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he Post Office has signed a deal with DPD which will see parcels delivered directly to its branches, opening its network to external carriers for the first time in its 360-year history. Previously the Post Office only had an agreement with Royal Mail Group for parcel collections directly at its branches. The click-and-collect service will initially be available at around 250 Post Offices this month before rolling-out to around 1,500 branches UK-wide ahead of the peak Christmas period. Customers making a purchase online will be able to choose their local post office as the collection point for their parcels. DPD will deliver parcels directly to branches and postmasters will process customer collections at the counter.
CUSTOMER CONVENIENCE Nick Read, boss of the Post Office, said: “Combining the biggest physical retail network with one of the Europe’s best-known logistical carriers provides greater customer convenience, footfall for postmasters and helps people back to the high street as Covid-19 restrictions ease. “I’m delighted that through our partnership with DPD, customers can select their local post office to collect their parcels and know that they are often open longer hours, staffed by a knowledgeable postmaster and located moments from where they live.” Elaine Kerr, DPD Chief Executive, added: “This is a significant, long-term partnership between two brand leaders in the
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DPD’s click-and-collect service will initially be available at around 250 Post Offices this month before rolling-out to around 1,500 branches across the UK
S T O RY
CELS
FICE / DPD
in-flight and, on those occasions, when we can’t leave a parcel safely.” The news comes weeks after Hermes unveiled a new partnership with Tesco to provide ParcelShop services across its convenience estate nationwide from 6 September. The Post Office and DPD said the deal will also reduce the environmental impact of having vans making multiple stops to drop off parcels. DPD Group has conducted a review of the last mile delivery and the impact of click-an-collect on the environment. Its studies have established that there is a reduction of, on average, 63% of greenhouse gases in the last mile delivery when using the DPD Pickup network. Read added: “As a society, we are increasingly considering the environmental impact of our activities. This will mean ensuring the last mile of delivery is ‘carbon free’. Our physical network of branches helps make this a reality, encouraging people to walk or cycle to their local post office to collect their parcels.”
GREEN INITIATIVES
parcel industry and comes at a time when the convenience of online shopping and delivery is more valued than ever. It is great news for DPD parcel customers and for Post Office branches too. Our aim is always to get parcels delivered safely, on time, and provide recipients with as much choice as possible. This partnership enables us to offer more options at the point of purchase, while the parcel is
In recent months DPD has unveiled a string of green initiatives including the roll-out of a major new air quality monitoring programme across six of the biggest cities in the UK and the pledge to deliver by only all-electric vehicles in 25 of the largest towns and cities in the UK by 2025. DPD currently has more than 1,000 electric vehicles on the road, expected to rise to over 1,700 by the end of the year. Kerr said: “Our sustainability strategy is based on looking at every single aspect or our operation and challenging ourselves to make it more efficient by reducing emissions and miles, improving the service for customers at the same time. Having the option to deliver to post offices helps us achieve that. DPD will provide all-electric delivery to 10 major towns and cities by the end of this year and 25 locations by 2025. With that and recipients having the option to walk to their local post office to collect a missed parcel, the vision of a carbon-free ‘last mile’ is becoming a reality.”
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BUSINESS A WARDS
SLR AWARDS 2021 SHORTLIST
Shortlist unveiled for SLR Aw
The shortlist has been revealed after the successful completion of the first ph
T
he shortlist for The SLR Awards, which recognise the amazing efforts of local retailers, has been published. This year’s judges were blown away by the standard of entries, particularly given the challenges the sector has faced in the past year or so. The winners will be unveiled at a virtual ceremony on 27 October and will be invited to a celebratory lunch in November. Confectionery Retailer of the Year ● Day Today Armadale ● Day Today Stenhousemuir ● Premier Birnam Stores ● Spar Falkirk Food-to-Go Retailer of the Year ● Day Today Armadale ● Premier Birnam Stores ● Scotmid Bo’ness ● Spar Falkirk Fresh & Chilled Retailer of the Year ● Day Today Bourtreehill ● Scotmid Barnton ● Spar Coylton ● Spar Garthamlock Newstrade Retailer of the Year ● Premier Turriff ● Seafield Stores, Ayr ● What Everyone Wants, Hamilton
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Off-Trade Retailer of the Year ● Day Today Armadale ● Greens of Ellon ● Premier Linktown Local ● Premier RaceTrack Autoport Scottish Brands Retailer of the Year ● Greens of Ellon ● Spar Falkirk Soft Drinks Retailer of the Year ● Day Today Bellsbank ● Spar Falkirk ● Spar Renfrew ● Spar Sauchie Vaping & Nicotine Replacement ● Retailer of the Year ● Premier RaceTrack Autoport ● Spar Falkirk Community Retailer of the Year ● Day Today Stenhousemuir ● Premier Linktown Local ● Watson’s Grocer Forecourt Retailer of the Year ● BP Mearnskirk ● Premier RaceTrack Autoport ● Watermill Service Station
wards 2021
hase of judging.
Home Delivery Retailer of the Year ● Greens of Ellon ● News Food & Wine Nethergate ● Premier Linktown Local New Store of the Year ● Londis Renton ● Premier RaceTrack Crowwood ● Scotmid Bo’ness Refit of the Year ● Greens of Kirkcaldy ● Spar Coylton ● Spar Falkirk ● Watermill Service Station Sustainability Retailer of the Year ● Seafield Stores, Ayr ● par Colyton ● Watson’s Grocer
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YOUR STORE CHECKLIST ` Please remove all 16+ play slips from your Playstation and replace with new 18+ play slips IMMEDIATELY ` Remind staff that all 16+ play slips will be invalid from 1 September 2021 ` Keep extra 18+ play slips by the till to help players easily update old 16+ play slips More information and training modules are available on The Retailer Hub. Visit now to find out more.
#ThinkSmart Innovation Award ● Londis Renton ● Premier RaceTrack Autoport Team of the Year ● Barry’s@Clarkston Premier ● Blackadder Mini Market and Deli ● Premier Girvan ● Spar Renfrew
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SERVICES
HOME DELIVERY SNAPPY SHOPPER
July a ‘record month’ for Snappy Shopper
S
Home delivery platform’s boss says order numbers are “increasing dramatically”.
nappy Shopper has registered record home delivery numbers in July. The home delivery platform, which has partnership agreements with several regional Co-ops, Nisa and Spar – has reported a 44% month-on-month increase in new customer numbers, while total transactions and frequent customer numbers both increased by 16% month-on-month. Mike Callachan, Chief Executive of The Snappy Group, said: “The digital world has disrupted the way consumers view and interact with retailers for goods. Local retailers are able to keep up with shopper expectations by offering them a digital ordering solution with Snappy Shopper.
“The acceleration to digital highlights retailers’ need for a solid omnichannel strategy which is vital today. Retailers who have integrated the Snappy Shopper home delivery app into their physical store will thrive.” One independent retailer who
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is benefitting from the Snappy Shopper home delivery app is Imran Akhtar of Best One Hurlford, Kilmarnock. Imran started offering the app to his customers in January this year and it has been such a success that he has started to offer it to customers at his second store – Premier Cairnhill, in Cumnock, Ayrshire. Imran said: “We work really hard to support the community and since we took the decision to start a home delivery service by partnering with Snappy Shopper in January this year, we haven’t looked back. In eight months we have taken over £200,000 in additional sales via the platform.” Callachan added: “Home deliveries ordered online or via our app have been increasing dramatically and we will continue to help local convenience stores by empowering them to make the most of the opportunity.”
SERVICES
HOME DELIVERY GOPUFF
Through the acquisitions of Dija and Fancy, Gopuff plans to operate in three European countries
Gopuff set to buy European delivery platform Dija
O
The deal will expand Gopuff’s foothold in the UK.
n-demand grocer Gopuff “Combining Dija’s team of industhe United States. Together, combined has signed an agreement try veterans, extensive infrastructure, with our team’s extensive experience of and local expertise will complement building and scaling food and delivery to acquire leading EuroGopuff ’s proprietary technology and companies across Europe, we are perpean delivery platform Dija. Gopuff, which has micro-fulfilment unique customer experience and fectly positioned to lead the everyday centres in every market it serves, delivadvance our ability to scale rapidly as essentials space in Europe and beyond.” ers thousands of products quickly for a we create a leading platform in Europe.” Through the acquisitions of Dija and flat $1.95 (£1.40) delivery charge. Fancy, Gopuff plans to operate It is open 24/7 in many markets Gopuff plans to operate in three European in three European countries countries with about 40 micro-fulfilment with about 40 micro-fulfilment and late night everywhere else. centres and 200 employees in the region. centres and 200 employees in The deal, along with Gopuff ’s recent acquisition of UK-based the region, with additional Fancy, is expected to provide “further Dija, which was founded in 2020, plans for continued, rapid expansion. operates dozens of micro-fulfilment densification” in the UK. Dija will continue to operate under Daniel Folkman, Gopuff Sencentres across London, Paris, Madrid, the Dija name in the near-term and as ior Vice-President of Business, said: the two companies create an integration Valencia, and more. “Together, we will continue to innovate Alberto Menolascina, Co-Founder plan to enhance the customer experiand define the ‘Instant Needs economy’ and Chief Executive of Dija, added: ence across Europe and the UK. across Europe and bring the category to “For the last eight years, Gopuff has The transaction is expected to close more customers in the region. been the market and category leader in within 30 days.
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TRADING
FINANCIAL RESULTS MCCOLL’S
McColl’s to speed up Morrisons Daily rollout as losses grow The group has also raised £30m to accelerate the pace of rollout of Morrisons Daily stores.
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cColl’s has posted a statutory pre-tax loss of £5.9m for the six months to 30 May, up from a loss of £1.3m a year earlier.The retailer also said its revenue was down, falling by 5.3% to £572.7m in the six-month period, reflecting store closures. In addition, McColl’s reported a gross margin of 23.5%, down from 24.9% a year earlier, reflecting changing product mix due to different shopping behaviours during the pandemic, with lower sales of higher-margin impulse products. The retailer said its Morrisons Daily roll-out “We are confident that these temporary programme is running trading effects will reverse as restrictions ahead of expectations – ease and distribution returns to normal.” 25 new Morrisons Daily Jonathan Miller conversions were made during the period – 56 stores are cur- impacting overall margins. Alongside rently in operation. McColl’s said it is the impact that the industry-wide shorton track to complete 100 conversions age of delivery drivers has had on our by end of fiscal year 2021. product availability, we are confident Jonathan Miller, Chief Executive, that these temporary trading effects will commented: “Many of the changes in reverse as restrictions ease and distribuconsumer behaviour we have seen since tion returns to normal.” the onset of the pandemic have continThe group has separately raised £30m ued in 2021, with customers spending from a capital raising scheme to accelerless on impulse goods, but buying more ate its growth strategy, which it will use take-home and multipack products, to increase the number, and accelerate
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the pace of rollout, of Morrisons Daily stores from 56 to 350 by the end of the financial year ending November 2022. It will also use the funds to improve the grocery infrastructure in the Morrisons Daily sites by enhancing the standard of the refit and expanding the chilled offer in stores. Miller added: “Looking ahead, whilst the wider economic outlook remains uncertain, we have clear demand for our grocery-led convenience offer, and our focus in the second half will firmly be on the continued roll-out of the Morrisons Daily stores, to help drive sustainable, profitable growth over the medium term.”
NEWS
CRIME CENTRAL ENGLAND CO-OP
Central England Co-op repeats call for better protection for shopworkers
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Call comes after several colleagues are injured during a violent incident.
entral England New research has shown that, in the past 12 months, Co-op has reaffirmed its zero-tolincidents of verbal abuse erance crime campaign and is jumped by 167%, anti-social calling for better protection behaviour by 39%, assaults for shopworkers after some of by 35%, and threats by 16% its staff were attacked during a compared to 2019. violent incident in Erdington, The retailer also revealed Birmingham, last Wednesday that 312 crimes related (11 Aug) afternoon. directly to Covid-19 have The shaken store workers been recorded in stores since involved received minor injuthe start of the pandemic. ries during the incident and are Central England Co-op supporting police with their has rolled out a range of difinvestigation. crime aimed at our colleagues and ferent measures including security assisCraig Goldie, Loss Prevention Mancustomers.” tance buttons and using tracking devices ager, said: “We strongly condemn any The retailer had asked customers to in more products to deter would-be “be kind” as part of a campaign durthieves. The Erdington store was also form of abuse or violence towards our colleagues and are offering our full suping the Covid-19 pandemic encourpart of a trial of body cameras for staff. port to the entire team at the Marsh aging them to treat shop colleagues In addition, the retailer has been Lane store. We are working closely with with respect and to repeat the Co-op’s working with other major retailers, the local police force to bring the crimlong-term message to would-be crimunions, industry bodies, police and inals responsible to justice. crime commissioners and more than inals that “it is not worth the risk” to “These types of incidents rein200 MPs to push the government to target them. force our ongoing camcrackdown further on those paign calling for better New research has shown that, in the past 12 who abuse or attack shopprotection for shopworkers months, incidents of verbal abuse jumped by workers via the introduction and highlights our zero-tol167%, anti-social behaviour by 39%, assaults by of tougher penalties such as 35%, and threats by 16% compared to 2019. erance policy on all types of an automatic prison term.
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BUSINESS INTELLIGENCE
GLOBAL CONVENIENCE MARKET IGD
Global convenience to add $43.1bn in sales in five years
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IGD report reveals new global trends in convenience retailing.
he top 10 global convenience grow in Russia, fuelled by migration to meals, and CU also had a 3+2 deal in July, players will add $43.1bn in sales big cities, a decline in traditional trade, covering 1,500 products. These are shortby 2026, a new report forecasts. increased price sensitivity and consum- term promotions designed to re-engage The report by IGD, says that the US, ers seeking easier shopping experiences.” shoppers and generate excitement. China and Russia are the key markets In South Korea, convenience operaThe report also highlights that seven driving the growth. It forecasts of the top 10 convenience retailthat 7-Eleven, which operates, “Globally, 7-Eleven continues to drive the ers for sales per square metre are franchises and/or licenses more market, followed by FamilyMart, but we will based in Europe, with the top see the strongest growth from Magnit.” than 77,000 stores in 16 counthree from the UK – Sainsbury’s, tries, will maintain a significant Charles Chan Tesco and Co-op. lead globally. In the UK convenience sales Charles Chan, Senior Retail Analyst tors are coming up with new multi-buy are forecast to grow by 12.5% (+£5.5bn) and author of the report, said: “Globally, deals, which sit alongside the usual by 2026, driven by a continued focus on 7-Eleven continues to drive the market, “buy-one-get-one-free” or “buy-two- neighbourhood locations, underpinned followed by FamilyMart, but we will see get-one-free” deals. Emart24 launched a by higher levels of working from home the strongest growth from Magnit. This 1+4 deal for facial masks in July, 7-Eleven and suburban living. will mainly be driven by store expansion has a 1+2 deal for 77 selected products, The report reveals that the top-up as demand for convenience continues to including beverages and ready-to-eat shop plays a significant role in European shopper habits – with larger basket sizes and stores that carry a wider range of goods – unlike other regions. Chan added: “The global convenience landscape varies considerably; retailers will need to focus on investing in the right markets. “Building flexibility into stores to Seven meet different shopper missions for of the top different times and days of the week 10 convenience will be a priority and technology and retailers for sales per square metre omnichannel retail will play a significant are based in role in delivering fresher, faster and simEurope pler shopper experiences.”
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TRADING
MERGERS AND ACQUISITIONS LUMINA INTELLIGENCE
Consolidation set to continue
Research shows grocery professionals also believe the next 12 months will see an increase in casualties in the sector.
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erger and acquisition activity is set to continue in the grocery retail sector in the coming 12 months, new research reveals. The data from Lumina Intelligence shows 88% of surveyed grocery retail professionals agree that more merger and acquisition activity is inevitable in the market and 50% agree that the next 12 months will see an increase in casualties among food and drink retailers. Katie Prowse, Senior Insight Manager at Lumina Intelligence, said: “Despite restrictions easing, businesses operating in the grocery retailer and eating out markets are less positive about current trading conditions than they were in evolved into well-established habits. October 2020. However, businesses are Delivery and technology have always much more positive about future trading been key to attracting younger consumconditions.” ers, however the pandemic has resulted The survey also found the top in all demographics embracing these three consumer trends impacting grocery are: “It is clear that business leaders agree with demand for home delivour forecasts that key pandemic-led trends ery (34%), use of interwill continue to evolve post-pandemic. net/mobile tech/apps Katie Prowse (31%), and the changing behaviour of younger consumers (28%). trends and truly increased the opportuProwse added: “It is clear that busi- nities available to retailers and operators.” ness leaders agree with our forecasts that The survey of business leaders also key pandemic-led trends will continue found that 63% of surveyed grocery retail to evolve post-pandemic. Consumers professionals said that increased import/ have been forced to embrace new things export costs have impacted their business during the pandemic, which have since and 75% believe that the UK government
Businesses are much more positive about future trading conditions
should be supporting businesses on overcoming Brexit challenges. Prowse said: “Brexit, coupled with heavy restrictions on movement caused by the pandemic, has resulted in significant resource challenges for businesses across the UK food and drink industry. Business leaders want to see the government do more to support. “Issues surrounding the UK’s departure from the EU including trade deals, processes around imports and exports and EU worker rights in the UK are all the remit of the UK government and so it is vital that it plays a leading role in aiding, communicating, and working alongside businesses through the transition.”
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H AV E YO U R S AY
SOCIAL MEDIA DIGEST
This Week on Social Media...
A digest of some of the most interesting social media posts this week...
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SYMBOL GROUPS
STORE DEVELOPMENTS ONE STOP / BUDGENS
O
One Stop stores add Robinsons self-service The Fruit Ice machines are more energy efficient than predecessors.
ne Stop’s company-owned stores across the UK are introducing Robinsons Fruit Ice self-service machines after a trial in more than 20 stores. The self-service machines sell both Orange and Apple & Blackcurrant flavours at £1.50 a cup, or £2 for two. Drinks are dispensed through a Robinsons Ice Freezer Unit with a new design and a twin-bowl offering the two flavours. Customers can select the non-carbonated frozen slush format in either flavour or both. The
new Fruit Ice drink has no added sugar and contains real fruit. The new machines are more energy efficient than predecessors and are expected to save around £250,000 a year in total energy costs for One Stop. One Stop boss Jonny McQuarrie said: “Robinsons is such a popular and recognised brand and we know our customers Robinson’s Fruit Ice self will be delighted to see it service machines in our stores. We know now at One Stop company owned that customers love the stores machines as they’re a real treat for them in store.”
Family-owned forecourt rebrands to JET and Budgens The family-owned Hertford Road Service Station in North London has re-opened as a JET-branded site with a newly-branded Budgens store. The site has been closed for twomonths during which time the height of the canopy has been raised by a metre and the buildings re-modelled to provide 2,000sq ft of retail space. Suki Yoganathan, who joined his father Yogan in JP&S Services 18 months ago, said: “Raising the canopy has given the site real impact. As well as offering
better access, the site feels more open and really makes a statement – especially at night when the under-canopy LED lighting and the yellow and blue JET branding really pops. It’s now a first-rate forecourt experience.”
The Budgens store will offer a more extensive product range including a dedicated food-to-go area with bakery and hot food plus specialist drinks including self-service f ’real milkshakes and Tango Ice Blast. There are also plans to introduce products from local suppliers to better serve the local community. Chris Murphy, Retail Account Manager at Phillips 66, said: “This site is hugely impressive and is testament to the family’s drive and belief in their business.”
WEDNESDAY 18TH AUGUST 2021 / ISSUE 69 / SLRMAG.CO.UK / 21
S U S TA I N A B I L I T Y
PREMIER FOODS KEY APPOINTMENT
Premier Foods strengthens sustainability team
P
Food producer appoints former Coca-Cola Europacific Partners man to help deliver its ambitious sustainability targets.
remier Foods, which supplies brands including Ambrosia, Batchelors, Bisto, Mr. Kipling and Oxo, has appointed Nick Brown (inset pic) to oversee its growing environmental, social and governance (ESG) agenda. In this newly created role, Brown will also be responsible for delivering against the company’s ambitious sustainability targets. This includes reaching 100% recyclable, reusable or compostable plastic packaging by 2025. Brown joins Premier Foods from Coca-Cola Europacific Partners, where he held senior roles leading various
operational and commercial functions before heading up its sustainability and sustainable packaging teams. He has experience in packaging, decarbonisation, water stewardship, sustainable sourcing, and community engagement. He will work with Juliette Mille who was appointed to the permanent role of ESG manager earlier this year. They will ensure sustainability is incorporated throughout the supply chain, from sustainable sourcing through to responsible marketing. Brown’s role is encouraging healthier choices, which is crucial to Premier Food’s ESG strategy, this includes
22 I SLRMAG.CO.UK / ISSUE 69 / WEDNESDAY 18TH AUGUST 2021
creating at least one ‘better-for-you’ option in every one of its core ranges and enhancing the nutrition profile of its existing core range. Brown said: “This is a hugely exciting time to join Premier Foods and as the business moves into its next phase of growth, I see a real opportunity to build on the momentum of the last 18 months, which has rightly brought ESG into sharper focus. I’m looking forward to meeting the teams and learning more about the business’s iconic brands, which will both play a crucial role in bringing Premier Food’s strengthened ESG strategy to life.”
NPD AND MEDIA
PICKS OF THE WEEK – MOLSON COORS TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
REKORDERLIG RETURNS TO TV SCREENS The campaign aims to drive awareness of Rekorderlig’s core offering among 20–34-year-olds in city centres across the UK. Molson Coors has launched a new campaign for its fruit cider brand Rekorderlig, including its first TV advertisement in four years. The ‘Beautifully Swedish’ campaign will showcase Rekorderlig’s core range which includes Strawberry-Lime, Wild Berries, Passionfruit, Mango-Raspberry and latest additions Pink Lemon and Watermelon-Citrus, which are all gluten free and vegan friendly. The campaign aims to drive awareness of Rekorderlig’s core offering among 20–34-year-olds in city centres across the UK. It celebrates the spirit of Sweden, where Rekorderlig is still made in its original
home of Vimmerby using local spring water, and centres around ‘doing summer like the Swedish do’ and having a Rekorderlig with friends. Rebecca Mutty, Rekorderlig Brand Manager, said: “We’re proud to say our ciders are still made in Sweden using the water from a nearby stream to bring that beautifully refreshing spirit to our drinkers in every bottle of Rekorderlig all over the world. “This campaign is our first master brand campaign in over four years and aims to bring the fun, engaging and beautifully Swedish spirit of Rekorderlig to life and get the brand’s name back on people’s lips this summer.”
WEDNESDAY 18TH AUGUST 2021 / ISSUE 69 / SLRMAG.CO.UK / 23
NPD AND MEDIA
PICKS OF THE WEEK – WKD TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
WKD BOARDS THE LOVE ISLAND New campaign includes TV ads, on-pack promotions, and on social media. WKD is highlighting
tunities to win thousands of exclusive
its relationship with
Love Island and WKD merchandise or
Love Island this
money off future purchases appears on
summer in a series
key WKD multipacks. The activity runs
of TV ads, on-pack
across 4x275ml WKD Blue (PMP only,
promotions, and on
priced at £4.99); 10-packs (10x275ml
social media.
WKD Blue and 10x275ml WKD variety
The brand, which is the Official Alcohol
pack) and 12x275ml WKD Blue . WKD has also enlisted previous
Partner of ITV2 and ITV
contestant and leading social media
Hub’s Love Island, will be
influencer Chris Taylor as brand
back on TV with a series
ambassador. Taylor will create
of adverts showcasing
exclusive weekly videos
the Love Island associa-
that will be shared with his
tion. The ads feature a group of
1.1 million followers.
WKD bottles enjoying life in a sun-
Its social media cam-
drenched villa and the strapline
paign will also include com-
‘WKD coupled up with Love
petitions to win merchandise
Island; Love it!’. They can also
and prizes, alonside inter-
be viewed through the Love
views with Islanders’ friends
Island app and across WKD
and family, and behind-the-
social channels.
scenes footage.
WKD has also introduced
Alison Gray, Head of Brand
two Love Island co-branded designs on
– WKD at owner SHS Drinks,
limited-edition 700ml bottles
said: “With our witty TV ads and
of WKD Pink. A fully sleeved
a million packs both spotlighting
design delivers ultimate shelf
the Love Island association – plus
stand-out, while the other fea-
chances to win tickets to the pro-
tures a Love Island label design.
gramme’s Live Final – we know
Both bottles are available in reg-
we chose the right partner.
ular and £2.99 PMPs – with the
Our consumers enjoy Love
latter available exclusively to inde-
Island with a passion, and
pendents. In addition, a co-branded consumer competition offering oppor-
24 I SLRMAG.CO.UK / ISSUE 69 / WEDNESDAY 18TH AUGUST 2021
our high-profile coupling up with the programme is driving summer sales for independents.”
NPD AND MEDIA
PICKS OF THE WEEK – WHITLEY NEILL TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
WHITLEY NEILL UNVEILS £1.2M CAMPAIGN The activity focuses on summer eating and drinking occasions.
Premium gin brand Whitley Neill Gin has launched
have become more experimental with their drinks
a new £1.2m advertising campaign which taps into
choices. The results of Savanta’s ‘Most Loved
summer al fresco eating occasions.
Brand Report’ continues to highlight this, and we’re
Whitley Neil’s portfolio currently boasts 12 flavoured variants that have been inspired by flavours
delighted to have been awarded the ‘UK’s Most Loved Gin Brand’ for the second year in a row.
from around the world. The range is produced at the
“Our new campaign is set to further drive
brand’s new home, the City of London Distillery, which
awareness for our award-winning range, inspiring
is based in the heart of London.
shoppers and showcasing how these delicious,
The new campaign continues with the brand’s ‘Time for a Little Luxury’ message, with its Raspberry, Blood
vibrant gin flavours are the perfect choice for any summer drinking occasion.”
Orange and Rhubarb & Ginger gins taking centre
The brand has made supporting assets avail-
stage. The campaign puts the gins at the front of mind
able for retailers, including a range of posters and
for summer eating and drinking occasions, while also
POS materials, featuring a host of serve sugges-
emphasising the versatility of the range.
tions to inspire shoppers, as well as assets for
Simon Jackman, Senior Global Marketing Manager
social media channels and digital screens.
for White Spirits at Halewood Artisanal Spirits, said: “Our Whitley Neill Gin flavours such as Blood Orange, Raspberry and Rhubarb & Ginger have continued to see strong growth over the past year as consumers
● The campaign goes live this month, and will feature out-of-home, print, social media and digital activity.
WEDNESDAY 18TH AUGUST 2021 / ISSUE 69 / SLRMAG.CO.UK / 25
NPD AND MEDIA
PICKS OF THE WEEK – PEPSICO TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
WALKERS LAUNCHES LOCAL TASTE ICONS
The Local Taste Icons range is inspired by the UK’s best-loved local restaurant dishes.
Walkers has launched four new limited-edition Local
delicious dishes on our crisps, but also by giving
Taste Icons flavours, which are inspired by the UK’s
money back to shoppers.
best-loved local restaurant dishes, from fish & chips to madras curry.
“The new limited-edition flavours will help to add excitement to the crisps segment, allowing retailers
Rolling out from mid-August, the line-up has
to offer their shoppers something new and drive
been inspired by four standout local restaurants, and
sales. We have developed a bespoke in-restaurant
includes: Madras Curry – inspired by The Radhuni,
point of sale kit to drive passing football to local
Edinburgh, Thai Green Curry – inspired by Mantra
establishments, digital assets and also worked with
Thai Dining, Newcastle, Fish & Chips – inspired
independent retailers to provide them with custo-
by The Wetherby Whaler, Yorkshire, and Chicken
misable posters to direct their shoppers and staff
Burrito – inspired by Yucca, London.
to their nearest local restaurants. In essence, this
A supporting on-pack promotion also aims to drive
campaign will help to bring communities together,
footfall to local establishments by offering a £5 off
giving independent businesses an innovative way
discount at participating restaurants. Every packet
of supporting each other.”
of Walkers Local Taste Icons directs shoppers online
Walkers Local Taste Icons are available now
where they can search for their local restaurant and
across grocery and impulse in multipacks of five,
claim £5 off using a QR code voucher.
grab bags and £1 price-marked packs. The launch
Katherine Cook, Walkers Senior Brand Man-
will also be supported with a light-hearted TV
ager at PepsiCo, said: “We’re proud to support the
campaign airing across September and October
hospitality industry, not only by promoting four local
and in-store media, social media, and out-of-home
restaurant owners on our packs and re-creating their
advertising.
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NPD AND MEDIA
PICKS OF THE WEEK TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
TYRRELLBLY TASTY
FILM FUN
COMPACT CASE
Mackie’s Crisps launched ‘Sticky
Jammie Dodgers is supporting
KP Snacks is expanding its
Toffee Pudding’ popcorn at the
the convenience channel with
Tyrrells portfolio with a new
Great Outdoor Cinema event in
the relaunch of its 89p PMP case
British Beef & Ale flavour, avail-
Glasgow’s Pollok Park this week.
in a new standout and affordable
able in 40g single packs from 30
The flavour will be sold in 170g
case footprint. The new compact
August. It has been designed to
share bags via wholesalers from
case of 15 x 140g packs, which
be the perfect accompaniment
mid-August. The new line will be
rolls out this month, will have a
to your chosen drink.
available year-round.
refreshed design featuring pack
RSP 85p
RSP £1 – £1.75.
and biscuit images.
VAPE DEAL
CRUMBS GALORE!
BOX CLEVER
Core Group, a SIM card and
Regal Bakery has launched a
Mars Wrigley UK is to remove
mobile accessories distributor,
new selection of bite-sized cook-
the black polyethylene liner from
has signed a deal to supply
ies, available in six flavours:
Maltesers boxes, which will see
88vape to independent stores.
Coconut Minis, Almond Minis,
82 tonnes of plastic eliminated
Core will distribute 88vape’s 11
Cashew Minis, Nan Khatie Minis,
every single year. The change
top-selling flavours across two
Pistachio Minis, and Zeera Minis.
means that the box itself is now
nicotine strengths, 6mg and
The range is available in 350g
fully recyclable. However, the
11mg, along with a range of
cartons from this week.
plastic film that covers the box
88vape hardware and devices.
RSP £1.69.
isn’t widely recyclable.
WEDNESDAY 18TH AUGUST 2021 / ISSUE 69 / SLRMAG.CO.UK / 27
NOW THAT’S A
OUT TH
NISA CLOTH
Charity clothing banks
Nisa has launched a new branded clothing banks initiative to help retailers raise extra funds for loca
WHAT’S THE BIG IDEA? Charity clothing banks.
HOW DOES THAT WORK? Nisa’s Making a Difference Locally (MADL) charity has launched a new initiative to help retailers to raise additional funds for local causes, in the form of branded clothing banks. Nisa retailers can order the charity clothing banks free of charge. They are designed to help put communities’ unwanted clothes to better use, reduce their environmental impact and increase stores’ MADL funds to donate locally. The rollout follows a successful trial earlier this year.
FREE OF CHARGE? Yes, absolutely no cost to the retailer. The initiative is being done in partnership with an organisation called Nathan’s Waste Savers and every clothing donation is either sold, reused or recycled so nothing goes to waste.
WHAT WORK IS REQUIRED FROM RETAILERS TO LOOK AFTER THEM? None. The banks require no maintenance as they are installed, serviced and emptied regularly by Nathan’s Waste Savers free of charge. Once clothing banks have been weighed and emptied, funds raised are banked into the store’s MADL account and donated to a local good cause of the store’s choosing.
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A GOOD IDEA…
HE BOX
HING BANKS
s
al good causes.
WHO TRIALLED IT? Nisa partner Dike & Son in Stalbridge was one of the first stores to trial a MADL clothing bank and came up with a neat idea to get the word out to customers. A competition on the store’s Facebook page offered the chance to win a £100 donation from their MADL fund to a good cause of the winner’s choice, simply by guessing what item was the first to be donated via the new clothing bank by store owner Andy Dike.
WHAT’S THE STORE SAYING ABOUT IT? Dike & Son Director Adam Vincent said: “Engagement and feedback from
customers was overwhelmingly positive and despite already having two clothing banks from other charities situated outside the store, donations over the first couple of weeks generated £42 for the store’s MADL fund. “As a company that’s been around for over 170 years, we are all about community and sustainability. So the fact that local good causes can be supported through people helping the environment by recycling their old clothes is just win-win! “It’s fab to see old clothes being turned into money to give to local groups and ultimately not just go to landfill.”
“As a company that’s been around for over 170 years, we are all about community and sustainability.” Adam Vincent, Dike & So
WEDNESDAY 18TH AUGUST 2021 / ISSUE 69 / SLRMAG.CO.UK / 29
BEFORE YOU GO
RETAIL RANDOMS
Water you playing at? As any right-minded Scotsman will tell you, the only thing you should put in a glass of whisky is more whisky. Connoisseurs insist, however, that adding a little touch of water helps to release the flavours of the whisky. But birch water? As in, water from birch trees. Scottish firm Birkentree has launched a birch water it says “naturally complements single malts”. Founded by husband and wife duo Rob, a professional forester, and Gabrielle, a herbalist, Birkentree is sustainably harvested in Highland Perthshire, hand-tapped from centuries-old birch trees. It’s a snip at £5.95 for 100ml and Rob says the optimum ratio of whisky to birch water is 50:50.
A truffle excessive: £10 a bag crisps If you fancy yourself as a bit of an upmarket retailer and you own, say a Budgens, in a nice corner of the world, you’re probably always on the lookout for new lines that help set you apart – or, rather, above – the rest of the hoi polloi and riff-raff. Well, we’ve found just what you need: genuine truffle crisps. At £10 a bag, they’re reassuringly extortionate and should help sort the wheat from the chaff in your store. Made using real truffles by a company called TruffleHunter, they come in two suitably upmarket flavours: White Truffle & Lobster and Black Truffle. We’re not talking Walkers Prawn Cocktail here. We’re talking the real deal. And they even come in compostable bags so your more sophisticated shoppers can feel smug about saving the world while they offer a glass of Dom Peringon and some truffle crisps out to their dinner guests before watching Love Island on the sofa.
WEDNESDAY 18TH AUGUST 2021 / ISSUE 69 / SLRMAG.CO.UK / 31
The revolution will be digitised! Ho m e d e liv e r y | Int e grated Epos | D i gi tal l oyal ty | F r i c t i o nle s s s olu t ions | C ustom er data | A m azon Fre s h a n d m uch m ore
CLICK TO READ ‘TE CH & D ATA I N L O C AL R ETAI L’ NOW! One of the consequences of the Covid-19 pandemic has been a huge acceleration of the adoption of technology in the local retailing sector across the UK. While home delivery was the undoubted star of the 2020 tech boom, there are countless other examples of technology being used to either save money or make money. So, with that in mind, we present our retailer’s guide to tech, data and why the revolution will be digitised. We hope you enjoy it and that it helps you improve your business.
