Retailer Matters The magazine exclusively for Lifestyle Express Retailers tailers
Issue
26
November/December 2014 September 2013
PLUS…
Festive spirit Our tips on which top tipples to stock this Christmas
2015
The key trends
WE DID IT FOR OUR
community For one village store, it’s all about giving something back
Ex cl fr usi om ve ly
What’s going to boost your sales next year
November/December 2014 welcome
Welcome
ON THE COVER Thanks to cover star Valerie Owen, Store Manager at Lifestyle Express in Winscombe. See page 38.
TOP STORIES
24 32 38
PARTY DRINKS Advice on what to fill your shelves with for the party season
BE ON-TREND Helping you stay one step ahead
VILLAGE COMMUNITY Store is all about giving something back to its loyal customers
GET IN TOUCH, SHARE YOUR NEWS If you have news, top tips or ideas for features, get in touch with Retailer Matters. Just pick up the phone and call
01926 319982 Alternatively, email
retailermatters@summersault.co.uk or write to Retailer Matters, Summersault Communications, 23-25 Waterloo Place, Warwick Street, Leamington Spa, Warwickshire CV32 5LA
Retailer Matters is published six times a year by Summersault Communications Ltd on behalf of Landmark Wholesale. For Landmark: Stuart Johnson For Summersault: Editor Stephenie Shaw Sub editor Kate Feasey Senior art editor Emma Bramwell Account manager Julia Fulford Advertising account manager Adam Turner Managing director Simon Chappell
WELCOME TO THE latest issue of Retailer Matters, which should help get you into the Christmas spirit! The festive season is fast approaching and it’s always a busy time of year, with the potential for increases in sales. If you’re looking for seasonal inspiration, we’ve put together a useful guide for you on how to maximise Christmas sales (pages 21-23) and pointers on which drinks to stock for all those Christmas and new year parties (pages 24-25). We always aim to keep you one step in front of the competition, so we have some interesting features in this issue that look ahead to next year. There’s a bumper feature packed with information and advice on the trends for 2015 to make sure you don’t get left behind (pages 32-35). And the big news for April next year is, as we all know, the switch to dark tobacco. We’ve dedicated a page to this to guarantee that all retailers know exactly what is expected of them, what they need to do and how to be fully compliant with the new law (page 12). Please get in touch (see left) and share your thoughts and ideas with us. I hope you have a very happy Christmas.
To advertise: Please contact Adam Turner on 01926 319932 or email adam.turner@summersault.co.uk To discuss editorial: Please contact Stephenie Shaw on 01926 319982 or email stephenie.shaw@summersault.co.uk Disclaimer: all prices listed are correct at the time of going to press, but may be subject to change.
Stuart Johnson Retail Controller, Landmark Wholesale ISSUE 26 2014
Retailer Matters 03
November/December 2014 contents
29 NEW ATM INSIDE
32
17 24 38 47
47 09 Industry news The latest from the industry
12 Cover up What you need to do to comply with new tobacco law
14 New products We give you the low-down on healthy ways to increase sales
29 Cash in on convenience Save time for your customers and give your store a lift with an in-store cash machine
The big interview with Mrs Bashir, who runs a store in Newport
21 Christmas presence Your handy guide to making the most of the festive season
24 Liquid refreshment Our recommendations for boosting alcohol sales
Gary Bajwa allows us behind the scenes of his busy store
32 What’s big for 2015 Helping you stay ahead of the competition and gauge what the next big thing will be
38 Giving something back 17 Retail in detail
47 The secrets of my success
50 Your guide to… … driving up those sales with chewing gum
A village store has been transformed and given a new lease of life
42 Valerie’s top tips Useful hints that will prove ve e a hit with your customerss
44 If you only do one thing… … grab some baskets
21
14
retailer news
Retailers give boost New research shows what all retailers already know: they work hard and are essential ASSOCIATION OF Convenience Stores (ACS) has released its 2014 Local Shop Report, which revealed that local shop owners are some of the hardest working people in the UK. The report showed that 23% of shop owners work more than 70 hours a week on average. Around 20% of shop owners take no holiday at all throughout the year. It also showed the solid contribution that convenience stores make to the UK economy. Nationally, convenience stores provide jobs for more than 386,000 people. With 50,747 convenience stores in mainland UK, the sector is now worth £37.4 billion, a growth of 5.2% from 2013’s figures. The report also revealed areas of
innovation and growth. Food-togo counters and digital advertising screens are featuring in thousands of stores across the UK, while a large number of retailers are offering services including click and collect, newspaper and grocery local home deliveries, and Post Office services.
WHAT CUSTOMERS NEED ACS Chief Executive James Lowman said: “Retailers are adapting to customer needs by offering a huge range of services in store. The sector now caters for almost every type of consumer, providing food-to-go, parcel services and new technologies, such as contactless payment. “The number of jobs that our
Retailers now provide a huge selection of services for customers
sector provides really stands out in our report. Convenience stores now employ over 386,000 people, giving jobs to people of all ages and with a range of other commitments. “This report is an incredibly valuable tool in engaging with
As cakes rise, so do sales Get a slice of the action and brush up on your home baking range The home baking trend continues to rise
RATHER PREDICTABLY, AS millions tuned in to watch The Great British Bake Off, sales of baking products soared. ba Traditionally, sales of home baking equipment peak during ba the Christmas and Easter th periods, but research from pe
Dr. Oetker suggests that sales are also increasing between September and November, coinciding with the airing of the hit TV show, to more than £25 million. Gill Davies, Executive Head of Marketing (Ambient) at Dr. Oetker, commented: “When The Great British Bake Off hits TV screens, we see a real rea upsurge in home baking sales. This has b aan incremental effect on sales throughout o the season, helping to create a whole new crea annual occasion.” annu Ensure your shelves are En groaning under the weight groan ready-to-bake cake mixes, of rea baking ingredients and decorations so that you can decorat cash in as a the nation goes baking crazy. c
government. We will be sending reports and individual constituency cards to every MP in the UK to ensure that they know the value of the convenience sector and the importance of people who run stores in their area.”
Shoppers want to be in the know THE MAJORITY OF UK shoppers check the country of origin when they buy food and drink products, according to new research. In a poll of 1,000 shoppers, Perception Research Services (PRS) discovered that a staggering 89% of shoppers checked where fresh food came from before buying, with alcohol scoring second highest (66%) and packaged food third (60%). The research also found that shoppers would like to see this information clearly labelled on products. In fact, 93% of fresh food shoppers said they wanted this information available in store, with 90% wanting to see it printed on packaged foods. And a third of British shoppers said they would pay more for a product made in the UK.
ISSUE 26 2014
Retailer Matters 09
news
Good customer service essential for success Now employers are placing extra emphasis on developing their existing staff, rather than recruiting new employees, as skills shortage makes recruitment more difficult MORE THAN HALF OF retailers feel that their staff could improve their customer-handling skills, according to new industry research. As well as the issues that poor customer service causes in store with unsatisfied customers and lack of repeat business, this skills shortage makes recruiting for staff fraught with difficulty, with 72% of employers reporting difficulties with filling vacancies.
STAFF DEVELOPMENT As a result, retail employers have been placing more emphasis on
developing existing staff, even though 18% don’t believe their staff have the skills to meet their business needs. The research, by People 1st, also revealed that while 63% of retail employers had invested in customer service training for their staff in the past 12 months, 39% did not believe it had helped improve performance and that any improvements were short-lived. As an alternative, think about empowering employees, sharing customer feedback, and recognising and rewarding excellent service.
Crackdown on illicit goods Promotions win alcohol sales race World Cup activity saw lager sales soar DESPITE A PROMISING START, traditional apple and pear ciders were beaten on sales by lager, thanks to a promotions frenzy for the World Cup. Volume sales of lager were up 2.4% in the 11 weeks up to 16 August compared with a year ago, according to research by industry
10 Retailer Matters
expert, Nielsen. In stark contrast were cider sales, which slumped by 2.3%, a totally different story to the previous year where cider sales rocketed by 16% year-on-year. However, while lager may have been the most popular choice, World Cup promotions meant that the price dropped by 2% year-on-year.
ISSUE 26 2014
Authorities are cracking down on retailers committing tobacco and alcohol fraud HMRC HAS ANNOUNCED A big shake-up on how it cracks down on some of the UK’s most notorious hotspots for the sale and supply of illicit tobacco and alcohol. Tobacco and alcohol fraud costs taxpayers more than £3 billion in lost revenue each year, as well as encouraging criminals to carry out fraudulent activity.
SPOT CHECKS HMRC will be working with local police forces and trading standards departments to carry out checks on shops, warehouses, self-storage
sites and workplaces to identify high-risk areas. Welcoming this move, James Lowman, Association of Convenience Stores Chief Executive, said: “We believe that any retailer who sells non-duty-paid alcohol or tobacco should be subject to the full force of the law. “This new wave of activity from HMRC is a welcome sign, and its commitment to working with licencing authorities gives hope that more retailers selling illicit alcohol and tobacco will lose their licence.”
news
How will you prepare for the tobacco display ban? BE AWARE
As the tobacco market goes dark in less than six months’ time, what will you be doing to stay the right side of the law?
Retailers need to decide now how they will cover their tobacco gantry
WITH THE CHANGES TO THE law around how tobacco can be displayed in stores coming into full effect on 6 April 2015, it is essential that retailers know what their next steps are to be fully in line with the law. At the point of sale, retailers in England, Wales and Northern Ireland are allowed to show up to 1.5m2 and in Scotland up to 0.1m2 (1,000cm2) at any one time. This means that gantries need to be covered up, but still allow easy access to products.
EU RULINGS The EU has finalised the revised Tobacco Products Directive and most of these rules should apply by the first half of 2016. Packs of less than 20 cigarettes will be banned, as well as capsule Let us know. Get in touch with us cigarettes and flavoured retailermatters@ tobacco, while menthol summersault.co.uk cigarettes will be phased out over four years.
WHAT ARE YOUR PLANS FOR THE BAN?
MAKE YOUR CHOICE Some retailers have an agreement with a tobacco company, such as JTI, who will adapt their gantry to be fully compliant with the law. However, many retailers have had responsibility for their gantries signed over to them and so the decision about how to cover falls to them. So what are the best next steps? There are a variety of options available, with solutions that won’t cost the earth.
NARROW IT DOWN There are three main options: curtains; sliding doors; or an overhead or an under-counter solution. The cheapest option is to
12 Retailer Matters
The display ban isn’t just about covering up your tobacco gantry. There are countless other elements to the ban that retailers need to be aware of. Did you know that when you’re moving stock from the store room to fill up the gantry, it must not be on display? Tobacco units can only be opened for stocktaking, cleaning, staff training and replenishment, as long as the area displayed does not exceed the maximum display dimensions. Prices can only be shown on a display list, which can be no larger than A3 in size. Even the wording needs to adhere to the law. The words must be in Helvetica font and no larger than 7mm high. Adult smokers can also be shown a picture price list upon request.
have vinyl curtains, which just need a simple DIY installation to fit them to your existing display. The curtains can be fixed on the day of the ban. The mid-range solution is to fit sliding doors, either manual or automatic. These would need to be professionally installed. The premium solution is a professionally fitted overhead server unit or under-counter unit.
ISSUE 26 2014
Festive treat feature
Our Christmas
GIFT TO YOU Lifestyle Express makes it easier for you to get your customers in the festive spirit ... and there is an extra treat for retailers as well
A
s the festive period approaches, sales of spirits start to soar and this winter, retailers can cash in on a great deal at Landmark Wholesale Member Depots. For retailers looking for an affordable alternative to the leading brands for their
customers, Prince Consort offers excellent margins and exceptional value. And, for a limited period, if you buy three cases of Prince Consort (6x70cl) whisky, brandy or vodka, you’ll receive a 1 litre bottle of V*dgrad completely free, which has a retail value of £8.29.
In depot 27 Oct – 15 Nov 2014
The Prince Consort spirits range is an affordable alternative to the leading brands and one that your customers will love. This excellent offer is available exclusively in Landmark Wholesale Member Depots from 27 October to 15 November 2014.
E E R
F Prince Consort Whisky 6x70cl
Prince Consort Vodka 6x70cl
Prince Consort Brandy 6x70cl ISSUE 26 2014
V*dgrad 1ltr
Retailer Matters 13
The LOW-DOWN 14 Retailer Matters
BREKKING FREE Ready Brek is adding to its existing range of winter warmers with Easy Sachets in two new varieties. Now available in chocolate and gingerbread flavours, alongside original, Ready Brek is fortified with vitamins and minerals, making it the perfect porridge for children. 6/8x30g (No RRP available)
As worries about sugar, fat and salt drive consumers to think twice before making shopping decisions, here’s our round-up of the latest low-fat, low-salt, low-sugar, low-calorie and alcohol-free healthier options. Better for your customers, better for your sales
ISSUE 26 2014
LUCOZADE CLOUDY LEMONADE Billed as ‘great taste, half the sugar’, the latest drink from the Lucozade Energy range is its first reduced-sugar option. Cloudy Lemonade is aimed at shoppers aged 25 to 34 who demand healthier soft drink options. Lucozade Cloudy Lemonade RRP 95p PMP 380ml, £1.15 500ml, £1.99 1 litre and £3.85 6x380ml
SAY CHEESE The UK’s leading cheddar brand, Cathedral City, is expanding its range with the addition of Cathedral City Lighter in a larger 550g pack. The decision to launch the lighter version in a larger pack size follows the success of Cathedral City Mature 550g – which has seen st strong growth – and the th demand for h healthier options. C Cathedral City L Lighter has the same gr g great taste as the m mature version, but wi w with 30% less fat. 55 5 550g (No RRP a available)
new products
GUILT-FREE COLA Coca-Cola Life is the first lower calorie cola made with a blend of sugar and naturally sourced stevia leaf extract, so it has a third less sugar and a third fewer calories than standard Coca-Cola. Available in 330ml, 500ml, 6/8x330ml and 1.75l pack formats (no RRP available)
SWE SWEDEN’S FINEST FIN After another bumper year of sales for its original fruit ciders, origin Kopparberg has been Kop wise to bring out a Mixed Fruit AlcoholMix Free variant. All the Fre fruit taste, with just the frui alcohol alc missing. 330ml and 500ml 33 (n RRP available) (no
RED HOT Also hopping on to the ‘bad sugar’ wagon, Heinz is launching a new healthier version of the family favourite. Heinz Tomato Ketchup Reduced Salt & Sugar contains 50% less sugar and 25% less salt than the original. The new ketchup is made with stevia and replaces the previous reduced-sugar ketchup, which launched in 2006. The new line meets 2017 government salt reduction targets and also has 40% less calories than the original. RRP £2.05, 550g
SSSSSSH… SSSSSH We all need a bit of what we fancy and Magnum, with its mini range, ensures we get et our naughty-but-nice fix, in moderation. Magnum num nu m is relaunching the hugely successful Mini Baileys eys for the festive season, alongside the brand-new w Magnum Mini White and Almond White. Magnum Minis RRP £3.89
D DRINK SMART After huge sales in the US, there’s a new addition to the bottled water category (which iss worth a whopping g £1.38 billion) – glacéau smartwater. Made de with British spring water, which is vapour distilled before electrolytess are added to give the brand its crisp, p, clean taste, it’s produced and bottled in Northumberland. The launch is supported by a national marketing campaign. glacéau smartwater RRP 57p 600ml and 89p 850ml
ISSUE 26 2014
Retailer Matters 15
the big interview
Q
How and when did you become a retailer?
In December this year, I will have been trading for 11 years. Before I became a retailer, I had a career in HR.
Q
So why did you decide to get in to retail?
We saw it as something of a new project. Over the years, I worked on and off in my parents’ store up in Dundee, so I had a good knowledge of retail, and had picked up plenty of useful tips.
RETAIL
in detail Q
When did you join Lifestyle Express?
Five years ago. We had a complete refit of our store when we joined, including a new fascia and graphics.
can. For instance, loom bands are really popular at the moment, so I went online to make sure we had a variety of brands and kits for our younger customers.
Q
Why does your store work?
Q
It’s modern and we make sure we utilise all the space we have so that we can offer as much as possible to our customers. We have the full range you would expect, plus a few surprises.
Q
What makes your store different?
I have a commerce and business degree, so I like to apply that where I
What’s the biggest decision you’ve made in your store?
The refit. It was a big decision to go ahead with, but Lifestyle Express has really helped us.
Q
How’s the competition where you are?
We have Spar just over the road from us and recently a new Co-op has set
ISSUE 26 2014
Retailer Matters 17
W
Retailer Matters goes behind the scenes in a busy store to discover the tools of the trade. In this issue, we meet Mrs Bashir, who runs her diverse and friendly convenience store with her husband in Newport
the big interview
Every inch of space works hard to offer choice for customers
up nearby, so we need to ensure we carry on providing a good service.
Q
How do you do that?
We try to provide as much choice as we can and also give great service. We have Paypoint and ATM too – it’s all about giving choice to our customers. If they can find everything they need in our store, they won’t need to go anywhere else.
Q
Any plans for the future?
We do our bit to help with charity and the local community. I’d really like
TOP We make sure we utilise all the TIP space so that we can offer as much as possible to our customers to focus on that a bit more and see what else we can do to support our customers and their communities.
Q
Any tips for fellow retailers?
If you’re going to use the Lifestyle Express fascia, you need to support them 110%. Give your customers variety and a great service.
IN THE SPOTLIGHT… Q Describe your store in just three words: Modern, clean, friendly. Q Describe yourself in three words: Hard-working, knowledgeable, friendly. Q What’s your bestseller? ? LSV Sport Drink is very popular, as are scratchcards..
Looking ahead to Christmas feature
Christmas PRESENCE How you can make the most of the festive season possible, in one place, then the stress of Christmas is kept to a minimum. So it’s worth considering what the must-stock products are, what the impulse buys are and how you can create some in-store theatre to really make Christmas come alive for your customers.
CONFECTIONERY AND CAKES Whether it’s getting them in for the family or buying as gifts for friends, Christmas is the perfect time for those
with a sweet tooth. The range of products is vast, but here’s our selection of what are sure to be popular.
SNACKS Christmas is a great time to take advantage of the Core Range. Popular products such as Pringles Original, Doritos and KP nuts will become even more popular during the build-up to Christmas and new year. It’s really worth shouting about any offers on snacks and stocking up on them too.
CHRISTMAS IMPULSES Customers will be coming into store looking for snacks, drinks and confectionery, not to mention those last-minute essentials. They might not necessarily expect to find Christmas products, but are guaranteed to take advantage of any offers if brought to their attention. It’s worth considering stocking Christmas cards, Advent calendars and wrapping paper to save them a trip to the supermarket and remind them that they can get everything they need under your roof. You could even stock items such as colouring pencils and highlight them as stocking fillers.
W
A
ccording to the song, Christmas is the most wonderful time of the year. Legendary crooner Andy Williams might not have been referring to Lifestyle Express retailers’ profits when he sang those immortal words, but the sentiment is just as applicable. With customers frequenting stores more than at any other time of the year and making far more purchases than usual, getting the right stock and the right display in store is essential to capitalise on potential business. A key incentive for customers is convenience. onvenie If they can n buy bu uy all al their essentials, or at least as many as
IISSUE IS SSU 26 2014
Retailer Matters 21
feature Looking ahead to Christmas
This is your handy guide for the festive build-up – 24 products for 24 days. All of them are essentials for Christmas, but can be easily forgotten, so make sure you bring them to the attention of your customers. It’s also a great chance to maximize profits on smaller items
2 3
1 11
Painkillers and plasters
12 TOP TIPS FOR A TIP-TOP CHRISTMAS
1 2 3 4 5
Display your opening hours clearly in the lead-up to Christmas, and if you’re open Christmas Day, highlight that.
Decorating parts of the store or displays can create a great atmosphere and really get customers in the Christmas spirit.
18
19
Shout about those promotions – beers, spirits and wines in particular.
Think about what you can display at till points. Festive products, such as individually wrapped chocolate treats, can be offered as a customer makes a purchase. Consider what products could make potential gifts – wines and chocolates are great for Secret Santa presents.
22 Retailer Matters
ISSUE 26 2014
20
4
5
6
8
9
10
7 14
13 15
Soft drinks
17
16
22 21
24
23 ISSUE 26 2014
Retailer Matters 23
feature Party drinks
Christmas time is party time, making it your prime time for selling alcohol and drinks. Here’s the low-down on what to stock
W
ith socialising going into overdrive during Christmas and new year, drinks sales really come into their own. From the customer who wants to make cocktails at their party to the shopper stocking up on alcohol and soft drinks for Christmas Day, offering them a wide choice is key. Along with old favourites, there are also new drinks available that will spark interest for special occasions. Popular drinks with a twist of Christmas cheer thrown in, such as Gordon’s With A Spot Of Elderflower or Jack Daniels Tennessee Honey Whiskey, are a good investment for those customers looking for something a little different. It can be an expensive time of year, so while there’ll be customers looking to splash out on something special, retailers need to give the option of quality products at great-value prices too.
48%
The amount alcohol consumption increases by in December – maximise on this by stocking a comprehensive range of beers, wine and spirits
A PRINCE AMONG MEN The Own Brand Prince Consort range is the perfect solution and is just one quality, money-saving alternative to the leading brands. At a much more affordable price than the leading brands, along with providing a broad choice, it’s really worth stocking up on and, importantly, bringing to the attention of customers with displays.
MIX IT UP Vodka and Red Bull continues to be a popular drink, but there is a more cost-effective option. Own Brand Prince Consort Vodka mixed with a choice of Own Brand LSV drinks or something from the Monster range is a great alternative and one well worth promoting.
24 Retailer Matters
WHICH ALCOHOL BRANDS SELL WELL IN YOUR STORE? Let us know. Get in touch with us
retailermatters@ summersault.co.uk
ISSUE 26 2014
LIQUID GIN WITH A TWIST Gordon’s has a couple of inspired takes on its celebrated drink that should certainly garner interest from fans of the brand. Gordon’s With A Spot Of Elderflower and Gordon’s Crisp Cucumber are certainly worth considering.
BE ORIGINAL Lagers and beers are huge sellers
refreshment over the festive period, but why not try offering something more original? Popular Desperados was the world’s first tequila-flavoured beer. It’s a light and refreshing blend of full-bodied lager and tequila, and just right for guests looking to try something out of the ordinary.
A SHLOER THING For those who won’t be drinking over Christmas there is plenty of choice. In
fact, the choices in the soft drink sector are wide and get more impressive and appealing each year. The new Shloer Celebration range consists of Pink Fizz and White Bubbly. For the first time, the popular soft drink is available in a celebratory-style bottle with a popping cork, giving those who won’t be partaking in alcohol at Christmas or on New Year’s Eve some much-appreciated ceremony when they open their drinks.
COCKTAIL TIME! Why not create some cocktail recipe leaflets and display them on the counter? Stock up on all the ingredients, including ice, and encourage customers to offer something a little different for their guests. Here are some recipe suggestions.
SEA BREEZE 1 part vodka 3 parts cranberry juice 1 part grapefruit juice
WOO WOO 1 part vodka 1 part peach schnapps 4 parts cranberry juice
BELLINI 1 part peach schnapps 1 part sparkling white wine
Sea Breeze E
Woo Woo E
MOJITO 1 part white rum 0.5 part lime cordial 3 parts soda water A wedge of lime (optional)
Bellini E
Mojito
ISSUE 26 2014
Retailer Matters 25
ATMs feature
NEW ATM INSIDE
Cash in on
CONVENIENCE Save your customers a queue at the bank by offering an in-store ATM, just one more reason why your store is most convenient of all ‘one-stop’ solutions for time-poor consumers. Compellingly, 87% of people who have ever used an in-store ATM cited it as a vital in-store service. The benefits of ATMs for retailers are evident, with a majority of users (53%) saying they would not return to a shop if the cash machine was removed or broken. This equates to a loss of an average £11.49 per customer who wouldn’t return.
The research also revealed that the benefits for retailers are two-fold: having cash in hand means customers are more likely to spend in store, and newly withdrawn cash on-site can also lead to customers evaluating the cash they have available for additional purchases. Average spend in store among all consumers was £13.27, with unplanned purchases accounting for £7.43.
“I wanted to make things convenient for my customers and they really seem to appreciate it. It’s a great boost to my business; I estimate half of the ATM users then spend money in my store.” Earls Lifestyle Express retailer, Jagdeep Mann ISSUE 26 2014
Retailer Matters 29
W
I
f you’re looking to offer your customers even more than you do already, think about the added convenience of an in-store cash machine. Not only will this benefit your customers, but it’ll encourage loyalty in the local area and drive up footfall and sales for retailers. In a recent report, shoppers expressed a strong desire to use cash in store with 90% of payments being made this way. The Value of Cash report, commissioned by independent cash machine operator Cardtronics UK, who run Cashzone ATMs (the recommended supplier of ATMs for Lifestyle Express), identified the importance for local shops to offer
feature ATMs
Essentially, the Value of Cash report also found that the majority of cash withdrawn is designated to be spent on-site, with an average withdrawal amount of £48.17. “We’ve always been given anecdotal evidence to suggest that a cash machine is able to offer shop owners a boost to their business,” said Jonathan Simpson-Dent, Managing Director of Cardtronics Europe. “But now, for the first time, we’ve been able to prove and quantify it. We’re pleased to share this customer insight and think it could become a central aspect of the business models for retailers if they are looking to expand and grow.”
BOOST TO BUSINESS Earls Lifestyle Express retailer, Jagdeep Mann, installed an ATM outside his Seaton Delaval shop 10 years ago in response to customer requests. “I wanted to make things convenient for my customers and they really seem to appreciate it,” he said. “It’s a great boost to my business; I estimate half of the ATM users then spend money in my store. “After installing the cash machine, I also got an immediate increase in footfall,” he continued. “It makes sense that more people come here when I have an added service. I’d say that the cash machine led to a 30% increase in customers. They see the cash machine outside the store and come here to use it, and dozens of people use it every day.” Furthermore, in-store ATMs encourage customer loyalty, with more than a quarter of consumers (26%) indicating that the cash machine in their local convenience store is the one they always use. For many local communities, on-site ATMs are part of the fabric in urban and rural areas around the UK. A resounding majority of convenience store shoppers (83%) travel less than a mile to reach the store, with more than one in three travelling less than half a mile.
By offering a diverse range of services to their customers, convenience hubs remain a one-stop shop for their local communities, and cash is a central part of that customer experience
52% of customers asked use ATMs in convenience stores at least once a week For time-conscious customers, the convenience of an ATM nearby is essential. Interestingly, more than half (56%) of those interviewed walked to the store instead of travelling longer distances to a larger supermarket or town centre.
REPEAT VISITS In addition to increased spending, another major benefit for retailers is the high probability that individuals who use the in-store ATM will return. More than half of those asked (52%) use ATMs in convenience stores at least once a week. Using the ATM is often the motivation forr the visit, with 58% confirming that using the ATM was their main purpose. pose.
Customers appreciate the ability to carry out many activities in one local shop. They can buy their groceries and a newspaper, and get cash out all at once. 30 Retailer Matters
ISSUE 26 2014
Customers appreciate the ability to carry out many activities in one local shop. They can buy their groceries and a newspap newspaper, and get cash out all at once, so it is important to bear in mind that the majority of customers will not return if the machine r iis damaged or broken. The other in-store Th sservices that proved popular with shoppers p iincluded the Lottery and a Collect+. It is perhaps unsurprising that in an u increasingly time-poor i society customers want s tto achieve more than eever when they visit their local shop. By offering a lo diverse range of services d to customers, convenience stores remain a one-stop sto shop for their local sh communities, and co cash access is a central ca part of that customer pa experience. exp
26%
of customers indicate that the cash machine in their local convenience store is the one they always use
feature Trends
What’s
BIG
TEMPTING FOOD-TO-GO
for 2015?
As the new year creeps closer, it’s vital that retailers are prepared for what lies ahead. The industry is changing and here’s our guide to help you stay ahead of the competition WHAT’S FOR DINNER?
While top-up shopping remains the main reason shoppers use convenience stores, there is a definite pattern appearing where shoppers pop in for their meal for that night. Meal for tonight options are showing significant growth and this looks set to continue. By 2018, him! predicts that the combination of meal for tonight and food-to-go will
32 Retailer Matters
ISSUE 26 2014
Food-to-go is THE big trend for 2015 and some retailers have fully embraced it with an offering to rival any cafe or deli. Not only are these retailers cashing in on a significant shopper need and benefiting from a new revenue stream, but they’re increasing footfall and driving up customer loyalty too. In London, one in every three visits to a convenience store is for food-to-go. Offering food-to-go doesn’t have to cost a fortune to put into place. Start with hot drinks, pastries, biscuits and cakes, and see how that’s received. Talk to your customers about what they’re looking for. Offer meal deals, linking soft drinks, hot drinks, sandwiches and snacks. What is on offer locally? What can your store provide that isn’t available anywhere else? Hot dogs? Baked potatoes? Freshly made sandwiches to order? Noodles or pasta pots? Salads? If you find something that isn’t on offer anywhere else, you’ll attract a new customer base, who will then use your store for all their shopping needs.
HOW LOW CAN YOU GO? be worth £9.6 billion, which is just under a third of trade spend. So, with shoppers increasingly looking for convenient meal solutions for their hectic lifestyles, what are you offering? The Convenience Tracking Programme by him! revealed that shoppers identified six key meal occasions they shop for on a weekly basis: quick and easy; meal for one; food-to-go; packed lunch; homemade meal; and snack. Are you covering all of those opportunities? If not, what could you add to your existing offering to ensure your local customers come to rely on you for their dinner that evening? Talk to your customers, ask them what they want. And, as they are time-pressured, make sure your optionss are instantly accessible and visible. Merchandise meal solutions at the frontt of the store to make shopping even easier. And remember your promotions. s.
As we’re bombarded by health messages, customers are getting more selective about what they eat and drink. For every five customers who come in and browse the biscuit aisle, there is one who is looking for the low-fat, low-sugar, low-salt, low-calorie option. And manufacturers are getting smart to this, bringing out healthier alternatives to the big names. To keep customers happy, you need to be looking at stocking these alongside the traditional family favourites. From baked beans and red sauce to soft drinks and sweet snacks, there’s demand for healthier alternatives. And it’s not just grocery. Alcohol manufacturers are cashing in on this too. This year saw the launch of several alcohol-free options for lagers, ciders and wines, and the signs are that they’re here to stay.
SHOUT ABOUT YOUR OWN BRAND Retailers know that offering a full range of Own-Brand products is a fantastic way to please customers looking for both variety and great value. By offering an alternative to known brands, you’re giving your customers choice, which is what they’re looking for. It’s not always about cost, but also preference and taste. The big brands aren’t for everyone, and having a quality alternative will never go out of fashion. A credible Own-Brand range will drive up customer loyalty as it’s your store’s unique selling point locally. Industry research shows that shoppers’ perception of own label is continually developing and improving, with 42% of shoppers now rating the quality and range of own label in convenience stores as ‘excellent’. Shoppers who buy Own-Brand products tend to spend 32% more than the average shopper, buying four or more items on each visit.
42%
of shoppers now rate the quality and range of own label in convenience stores as ‘excellent’
PROMOTION MEANS PRIZES
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Special offers, promotions and discounts are the secret weapons for retailers to win back those top-up shoppers who are wooed by the cost-cutting promises of discounters and supermarkets. Promotions are one of the best ways to fight back against the multiples and to combat the perception that convenience stores are more expensive than the supermarket alternatives. They are also a great way to steer customers to try Own-Brand or other products that offer better margins and repeat purchases. Shoppers who buy on promotion end up spending more, have larger baskets and are more likely to buy on impulse. With 64% of top-up shoppers comparing prices in convenience stores, retailers need to provide competitive prices and promotions to keep their customers.
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Retailer Matters 33
feature Trends
PRICE-MARKED PACKS
If you want an easy way to boost consumer confidence in your products and your prices, price-marked packs (PMP) are the way forward. Price-marked packs have been popular with independent retailers for some time, with soft drinks, tobacco and biscuits being the most popular categories for PMP. According to him! research, retailers
stock price-marked packs because of the perceived higher rates of sale and, crucially, because of the customer trust they believe it wins. This customer trust is a key factor of influence. According to independent retailers, shoppers have a tendency to trust suppliers over retailers when it comes to price, and pricemarking reassures customers that they are getting a great deal.
COMMUNICATE It sounds so obvious, doesn’t it? Communication is vital as otherwise, how do shoppers and potential new shoppers know what you have on offer? But it’s amazing how many retailers just wait for the customers to come through the door. Try leaflets, local advertising and posters in your store window to let local people know what’s so special about your store. Whether it’s range, prices, promotions or something you offer that others don’t, such as ATM, PayPoint, dry-cleaning or food-to-go, tell them about it. Then, once customers are in your store, keep communicating. Interrupt the grab-and-go shoppers who come in on autopilot, select what they need, pay and leave. Many shoppers spend less than five minutes in store and only one in six will visit every aisle, missing out on great deals and promotions. Use attention-grabbing signage and POS to steer shoppers around all parts of the store to drive up basket spend, as those who visit all the aisles spend 56% more than average.
56% Customers who visit all the aisles in a store spend 56% more than average
DON’T LOSE SIGHT OF THE ESSENTIALS While retailers absolutely need to make the most of promotions, special offers and seasonal sales opportunities, it is vital that you never lose sight of those customer essentials. What is a convenience store without bread and milk? Core Range is exactly that. All the hard work, research and trawling through industry data has been done for you, so make sure you’re stocking the Lifestyle Express Core Range and you can’t go far wrong in 2015.
store proďŹ le Lifestyle Express
Store Manager Valerie Owen is thrilled with the store’s new look
Dan Stenning, Retail Operations Manager at L&F Jones, said Lifestyle Express had so much to offer
GIVING
something A much-loved village store has been given a dramatic transformation, securing its place as the beating heart of the community
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ISSUE 26 2014
BACK
STORE CV NAME: Lifestyle Express STORE’S TIME WITH LIFESTYLE EXPRESS: Since August 2014 FEATURES: ATM, PayPoint, newspapers and magazines, soft drinks, confectionery, full grocery range, chilled and fresh, Collect+ service, food-to-go, newspaper delivery service BESTSELLERS: LSV energy drinks, newspapers, Prince Consort brandy, £1 PMP Dairy Milk NEAREST COMPETITION: Co-op store, plus Boots, bakery and a wine store all within 500m TRADING TIMES: 6am until 9pm, seven days a week
Unusually, the store isn’t owned by an independent retailer but by L&F Jones, a wholesale company based in Midsomer Norton, North Somerset, which also owns another 13 stores. With fierce competition right on the doorstep, the company knew it was time to update the Jones Convenience stores, and converting to Lifestyle Express was the obvious choice. “We wanted to improve the standards for our customers while also competing
Shoppers are happy with the look and feel of the Winscombe store following its recent refurbishment
on a level playing field with other stores in the area,” said Dan Stenning, Retail Operations Manager at L&F Jones. “Lifestyle Express had so much to offer, including an excellent Own-Brand range, great promotions and industry expertise when it comes to store planning, merchandising and layout. And, essentially, we knew with Lifestyle Express that we’d maintain the wonderful community feel of our stores.”
A COMPLETE TRANSFORMATION
“Everyone thinks we’ve had an extension as the new layout has given us so much more space… it feels like a different store”
The floor-to-ceiling transformation began in August and lasted just two weeks. More astonishing, given the scale of the work, was that the store didn’t close during this time. “Despite replacing the ceiling and installing new
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Retailer Matters 39
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F
or a long time, Jones Convenience store in Winscombe was a thriving, popular store for local shoppers, but never more so than now, thanks to its recent refurbishment. With its gleaming blue and green Lifestyle Express signage and sleek new interior, the store has been given a new lease of life and the customers and staff couldn’t be more delighted. “Our customers can’t believe the change in the store,” said Valerie Owen, Store Manager. “Everyone thinks we’ve had an extension as the new layout has given us so much more space. Combined with the new lighting and the new lines we’ve added, it feels like a different store. Shoppers think it’s fantastic.”
store profile Lifestyle Express
fridges, freezers, lighting and till system, we were committed to not letting any of our local customers down,” said Dan. Valerie added: “We know how vital the store is to people in the area and so we worked around the refurbishment so that we were still open for shoppers to buy their newspaper and groceries.”
The new-look store’s layout is a vast improvement, with new lighting
Valerie said: “The store has always been a key part of the community. We do all we can to help our shoppers, such as delivering their shopping if they can’t get out or helping them to the car with it if it’s heavy. Since the refurbishment, it feels like we’ve gone one step further, as our customers see what we’ve done and they recognise that we’ve done it for them.”
LISTENING TO CUSTOMERS And while improving the store’s look and feel is an undoubted boost for business, Dan, Valerie and Business Manager Janette Tucker know it runs deeper than that. “When we were improving the store, we made sure we listened to customers and introduced positive changes to benefit local people,” said Dan. “We lowered the pavements outside to improve wheelchair access and installed bike racks. We know how much the people in Winscombe value the store, and we’re grateful for their custom and their loyalty over the years, so we wanted to give something back.”
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ISSUE 26 2014
GIVING SOMETHING BACK
Customers can find all the essentials, and much more, clearly laid out
This idea of giving something back was brought to life when the store had its official opening over the August bank holiday weekend. With a bouncy castle and merry-go-round, it quickly became a village-wide event, and a huge success. The new-look store now has a much-improved layout, with a new focus on chilled and fresh produce. Overseeing the design was Craig Bourne, Senior Retail Development Manager for Lifestyle Express, who worked with Dan and his team at L&F Jones to ensure the space was used in the best way possible to increase sales. Keen to stock as much of the Lifestyle Express Core Range as possible, Dan and the Buying team worked with Craig to ensure they were as Core Range compliant as possible. “We know that the Lifestyle Express Core Range is ideal for our store, and our customers. There’s something for everyone at every price point, which is essential,” said Dan.
CONTINUALLY EVOLVING As the new layout gives the store much more space for stock, Dan is keen that the range continually evolves. “As new products prove to be popular, they will replace items that sell less well. While we will maximise the space given to the big sellers, we’re also keen to ask our customers whether we’re stocking what they want. If there’s something they’d like us to stock, we’ll always listen and try and act on their feedback.” And the introduction of new lines has seen instant results. “From the moment we reopened, we’ve seen a noticeable surge in sales,” said Valerie. “A real success has been the Lifestyle Value range, which we hadn’t carried before. Now it has a prominent place in the store and it’s selling really well with those customers who are on a budget but still want a quality product.” Another big hit is the store’s food-to-go offering. The combination of a long-established Bake & Bite, which offers an in-store bakery with the newly introduced Rollover hot dogs, has been a huge success with local customers. And the real success of the project? “Without a doubt it’s been the reaction of the local people,” said Dan. “Everyone has been so positive and so enthusiastic about how the store looks and feels. The store is thriving, it’s always busy, with a great atmosphere.”
store profile Lifestyle Express
VALERIE’S
TOP TIPS KEEP TALKING When we serve customers rs or just walk around d the th store, t we chat with customers about what they’re looking for, offer suggestions and sometimes encourage them to try an alternative product or one that’s on promotion. We know lots of our customers by name.
H Here are some handy ttips and top advice to help you improve yyour sales
ABOUT THE TEAM The Winscombe store is run by Business Manager Janette Tucker, who works alongside Store Manager Valerie Owen. There are another six members of staff: Ro Hannan; Ellen Marshall; Suzanne Bird; Ellie Croft; Mary Hannan; and Kelly Andrews.
THINK ABOUT OFFERS Over the years we’ve noticed that when we run in-store promotions, products fly off the shelves. Everyone likes a great deal and we try and ensure that every promotion has something for everyone.
OWN BRAND If you don’t stock the Lifestyle and Lifestyle Value Own-Brand ranges, then you could be missing out on sales. Since introducing the Value range, our sales have dramatically increased and our customers are loving the products.
42 Retailer Matters
LOOK AT YOUR STOCK Keep a close eye on what’s selling and what isn’t. Every product needs to earn its place on your shelves and if it’s not performing, replace it with something that will. We work with Lifestyle Express to ensure we’re stocking as much of the Core Range as possible and it’s really paying off.
ISSUE 26 2014
RIGHT PLACE, RIGHT TIME It makes sense for your opening times to reflect your customers’ needs, so three days a week we open at 5am to ensure our newspaper deliveries are out in time. The rest of the week we’re open from 6am so that our local early birds can pop in for their newspaper or food-to-go first thing.
feature Baskets
If you only do
GRAB A BASKET
If you want your customers to spend more and to improve their shopping experience, baskets are the obvious choice to take your store to the next level
B
askets. They’re quite unremarkable really. But they can be your trump card when it comes to driving up sales and making the shopping experience a more positive one for your customers. If you’ve ever wondered if baskets are really worth it, then take a look at these hard facts. Research by respected industry consultancy him! has shown that the average customer spends £5.47 per visit. If every shopper bought one
more item based on the average of 3.68 visits a week, this would mean an extra £3.20 spent per customer per week. And, without wanting to bamboozle you with maths, that’s one heck of an increase in sales. Every retailer has witnessed customers coming in for just a couple of items but ending up at the counter struggling to hold everything they’ve gathered from around the store. If only they’d had a basket, their shopping may well have continued to grow, and you wouldn’t be missing out on those potential sales.
OPTIONS Even the smallest of stores can accommodate half a dozen baskets. If you have a bigger store, locate baskets both at the door and further inside. Make it as easy as possible for customers to move around and spend time selecting their items. And there are so many options available now. Traditional baskets with a handle are commonplace, while wheeled options make a great investment as they’re easy to stack, push and pull. Think about your customer base – what do they need? What will make their shopping experience easier? By adding baskets, you’ll be
able to take advantage of the gradual shift that is seeing more and more customers turning to their local convenience store for most of their shopping, instead of just the weekly top-up or impulse shop. By making the experience easier and more pleasurable, you’ll be convincing them that shopping locally is better than heading down the road to the big multiple. John Farrell, Retail Operations Manager at Landmark Wholesale, agreed: “Even very small stores should make baskets available for customers. Research confirms that if people see a basket, it will encourage them to use it and most likely buy more items than they originally intended.”
TOP TIPS
1
Location, location, location is critical. Make sure you have a stack of baskets close to the entrance for shoppers to grab as they enter. If space permits, add another stack further inside: the milk and alcohol facings are both good positions.
2
Consider investing in wheeled baskets – older people like them because it makes moving around the store easier, they’re ideal for mums with prams, pushchairs or small children and great for shoppers wanting to stock up on heavier items, such as milk, tinned goods and bottles.
3 4
Keep your baskets clean – no one wants to put their shopping in a dirty basket or one that has obviously seen better days.
Make sure your staff encourage customers to use a basket and if you see someone carrying lots of items, take a basket over to them.
44 Retailer Matters
ISSUE XX 2014
The secrets of my
Retailer Matters digs a little bit deeper to find out what makes a busy store on a main road a big hit Gary Bajwa had worked in South Wales before moving to Northumberland and opening his store in Ashington
Meet retailer Gary Bajwa, the father-of-three who ownss Bajwa Mini Market in Ashington, Northumberland How did you first get into retailing?
I was working in the ladies’ fashion industry in South Wales, but I had a family friend up here and he convinced me to give grocery a try. It was a big decision, but we moved up and I worked for him to get some experience before buying my own business.
Q
When did you join Lifestyle Express?
About four years ago. I needed to have
enough knowledge of the grocery and off-licence trade before I felt confident enough to go it alone. It was important for me to understand what the customers wanted and the best, most cost-effective way to give it to them.
Q
What is the best thing about being part of Lifestyle Express?
Joining Lifestyle Express meant we got a lot of really useful advice about how to refresh the store. We’ve just put in a new
ISSUE 26 2014
Retailer Matters 47
W
Q
feature Your store
R YOU AND YTOHUE STORE IN T SPOTLIGH
just your store in Q Describe : three words le,
cessib Friendly, ac . ve ti ti pe com
ree worrds: yourself in th Q Describe in k g,
-wor Helpful, hard n I say that? ca e… m so d han
r? ur bestselle k. Q What is yo Energy Drin
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counter, fridges and chillers, as well as ceilings and lights. Lifestyle Express also supported us with the merchandising in terms of posters and flyers, but it’s the special promotions that really give you the edge.
Q
What is your store’s unique selling point?
We are a real community store, so it’s the added services we offer that set us apart from the competition. We have a cash machine and sell scratchcards, but it’s the PayPoint service that people love because they can pay their gas, electric or any other household bills without having to queue at the Post Office.
Q
Tell us about a recent success.
It’s got to be the big chiller for beers and soft drinks. It cost quite a lot, but it’s been worth every penny because it looks good, makes the shop look classy and clean, and allows us to display the beers well and at the right temperature. My customers love it.
Q
stocking them even now the promotion has finished. New customers are still buying it, even at the higher price.
ccreate a place where we would be happy to be every day. b
Q
What has been the best decision you’ve made for your store’s success?
The refit has changed everything. It wasn’t bad before, but my wife and I wanted a shop that made coming to us a nicer experience. Now it is more modern, cleaner-looking and comfortable. We live above the store, so it is an extension of where we live and we wanted to
Q
Any words of wisdom for other retailers?
Be content to be with Lifestyle Express and use their expertise. I know from experience that some groups just deliver the products and there is no back-up support. With Get in touch and share your story Lifestyle Express I know I retailermatters@ can trust their judgement summersault.co.uk on promotions and that there is someone I can talk to if something isn’t right.
WHAT’S THE SECRET TO YOUR SUCCESS?
Q
What are your plans for the future?
Again, it’s the excellent Lifestyle Express flyers that do the job for me. We make sure the posters are prominent and always put the special offers flyers in people’s bags and on the counter. It really does make a big difference.
In the short term, Christmas is coming fast, so we need to be ready for that, but in the longer term I want to move the business forward so that it can run with extra staff. I have three young children, so spending time with them as well as making the store profitable is a balancing act that I want to get right.
Q
Q
How do you spread the word about your store?
What promotions have been particularly successful?
We recently pushed the Strongbow Dark Fruit 10-pack for £10 promotion and were amazed at the number of new customers who came in to buy. I never used to sell them, but we’ve kept
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ISSUE 26 2014
Final words?
I have learned a lot in a short space of time and am delighted with the way things have gone. I’m pleased the store is an extension of the family home because it helps create a friendly, welcoming atmosphere for our customers.
your guide to… TOP Display TIP chewing gum at till points and by food-to-go, as it takes up little space
… driving up impulse sales With the chewing gum category worth more than £280 million and growing at a rate of 4.3% year-on-year, gum is a muststock for convenience retailers CONFECTIONERY IS THE biggest category when it comes to impulse purchases and retailers can cash in on shoppers looking for a treat. A recent study for Wrigley’s, carried out by EHI Retail Institute, showed that, on average, retailers’ till points accounted for just 1% of overall store space but generated 7.1% of sales. And, as space is limited at checkouts, gum displays are highly space efficient and easily merchandised, so perfect for siting at the till and also at hot food and drinks counters. At a typical counter, a standard impulse gum display delivers 570
50 Retailer Matters
individual packs of chewing gum. Wrigley’s research also showed that confectionery profit margins of 31.5% were above average (12.4%) at the till point, and three timess higher than cigarettes and tobacco. Within the confectionery category, chewing gum tends to offer the best margins of 30% and upwards.
ISSUE 26 2014 14
Chewing gum also accounted for 44% of confectionery sales. And, as customers are increasingly health conscious, sugar-free chewing gum sugar is a b better option for them.
GOING GOING GOING, GOING, GUM Chewing gum offers great margins for retailers. At recommended retail price, Wrigley’s gum typically delivers more than 30% profit.
1
Chewing gum is an impulse buy, so stay on top of stock levels throughout the day to make the most of this.
2
Champion new products – Wrigley’s most recent launches include Extra White, Bubblem Bubblemint 46 bottle, Extra Ice Citrus and 5.
3
Don overlook the Don’t bestsellers – Extra, best Extra W White, Extra Ice Airwaves. and Airw
4 5
Think about where you site itit. As well as close to point, site gum near the till po food-to-go, coffee machines food-to-g other oralcare products. and othe