Cover Story

BOOKER WHOLESALE

Good things come in small packages

Booker Wholesale has launched its first small format Premier store.

Booker has this week unveiled a new flagship small format Premier store.

The 600sq ft VG Foodstore in Wheatley Hill, County Durham, has been run by the Dhinsa family for more than 35 years and was previously independent.

Brothers Steve and Jassy, who have taken over the running of the store from their parents, decided the time was right for a refit and it closed for six weeks as it took place. The new format takes the best learning from Mandeep Singh’s store in Sheffield, which trialled lots of new elements to attract consumers, and has won praise from retailers. Since it launched a year ago almost 250 retailers have visited Mandeep’s store with the view of copying it. However, the store is 1,800sq ft and its refit cost in the region of £150,000 to £175,000.

Martyn Parkinson, Booker Sales Director, said: “We found retailers wanted to replicate it but in a smaller store. So we worked on how to get the best bits into a smaller space. That was a real challenge. “Luckily Steve and Jassy were looking to have a refit, they had visited Mandeep’s store, and asked us to implement whatever we could from Mandeep’s into their store.”

SIMPLE FASCIA

The small format store has a simple fascia that features the opening times and the services offered by the store, such as Post Office, Lottery and PayPoint, because services are currently playing a huge

part in driving footfall. The store has clear windows, to let light in, but also shoppers feel safer if they can see in and out. Outside posters advertise the mega and wow deals, sandwich deal, and other footfall drivers. Booker says it is trying to keep the number of deals advertised outside down and focus on key footfall drivers.

FRESHEN UP

The store also features Refresh@Premier, which includes fwip, Hersey’s Freeze, Jolly Rancher Slush, and Douwe Egberts coffee. This helps attract a younger demographic and the section takes up to £1,600 a week, attracting people from neighbouring villages, at a margin of 65%.

The biggest transformation for the store was its chilled solution. It now has 5m of long-life chill. The brothers were keen to introduce more chilled but were put off by the possibility of wastage. However, through Booker, they have access to 330 lines of long-life chill. Chill sales have subsequently grown from £200 to £3,000 a week and the section attracts more new customers than anywhere else in-store.

The shop’s soft drinks section is probably the busiest cabinet. Around 20% of the range was taken out and replaced with on-trends and Americans. The store now chills larger bottles, popular with workmen and youngsters for immediate consumption, and multipacks – a growing trend.

The refit has also seen the store’s frozen offering grow. Previously it had one small freezer, and now the retailers are seeing huge category growth.

In the impulse aisle, small bags were removed – reducing the range by onethird – because bigger bags increase basket spend. In addition, Booker aims to keep items in shelf-ready packaging, so retailers only have touch stock once and replenishment is efficient. “We are really conscious that the retailers are saying ‘keep it efficient, don’t add any complexity’ because labour is expensive and it’s quite difficult to recruit,” said Parkinson.

The impulse aisle also features American confectionery and multipacks, which offer greater value than singles.

In addition, Parkinson said Booker is trying to encourage Premier retailers to work with local bakeries, butchers, and breweries.

The store’s spirits are backlit to increase stand out and the offer includes fractionals. “We are definitely seeing a switch in January to value in halves and quarters,” Parkinson added.

The store also features chilled alcohol multipacks – a point of difference from the multiples.Also new to the store is 1m of vaping. From a standing start, the category is currently taking £2,300 a week at 45% margin. Medicines were brought out from behind the counter to beside the till. Staff can still keep an eye on them, but sales have increased 50% because customers no longer need to discuss their ailments.

Meanwhile, the store still features newspapers, magazines, and greetings cards so it keeps its CTN identity.

RANGE ROVING

The retailers regularly talk to customers about the range and if they feel something is missing they will bring it back. For example, the pet food range was recently extended to include treats and bird food.

Previously the store made £8,000 sales a week on average, but the week before Christmas it made £20,000.

The store plans to roll out home delivery and has bought an empty unit next door for storage and picking purposes.

Steve said: “The format is brilliant – other retailers have been surprised at the range we stock. My advice to other retailers is 100% do this – I should’ve done it before. Everyone at Booker believed in us and gave us the best help.”

The monthly spend to join Premier is £16,000 but Booker gives retailers time to build up to this if they are reinvesting into their store and a local RDM will be there to help retailers grow footfall and sales. All marketing is free.