Retail Express: 4 June, 2019 by BetterRetailing

DEPOSIT RETURNS Retail Express gets an exclusive look at first finance model for reverse vending machine

4-17 JUNE 2019 STRICTLY FOR TRADE USERS ONLY

NATURAL ENERGY HAS GROWN +22% YOY* BRINGING +£14M TO SOFT DRINKS

PURDEY’S IS GROWING FASTER THAN THE NATURAL ENERGY CATEGORY, AT 35% YOY*

£3M

ADVERTISING CAMPAIGN

PLACE ME IN THE CHILLER NEXT TO THE ENERGY DRINKS - STOCK UP NOW Vitamin B1, B2, B3, B6 and B12 contribute to normal energy yielding metabolism. Vitamin C, B2, B3, B6 and B12 contribute to the reduction of tiredness and fatigue. *Nielsen Scantrack, Total Coverage, Value Sales, 52w/e 16.02.19, Natural Energy is Britvic defined

PREMIER MARGINS

UNDER PRESSURE

CATERING FOR CUSTOMERS

Booker-owned symbol group announces quest for 30% margins at anniversary event

More than 25 shop owners slam treatment by the Post Office at government inquiry

How Rahul Odedra uses local connections to make his store stand out from the crowd

BACK PAGE

BRAND SPOTLIGHT

Republic Technologies shines a light on the tobacco accessories market P14-15 14

RETAIL

IN ACTION

BRAND SPOTLIGHT

FOCUS ON:

REPUBLIC TECHNOLOGIES year on year, ies growing at 9% of With tobacco accessor at how you can get your share RETAIL EXPRESS looksREPUBLIC TECHNOLOGIES the opportunity with

4-17 JUNE 2019 STRICTLY FOR TRADE USERS ONLY

s by Why stock brand s Republic Technologie

market. £283m tobacco accessories with a value market players in the UK’s is one of the major names such as Swan, REPUBLIC Technologies range includes household brand ting The company’s product brands such as category-boos rolling 95%. filters and papers share in excess of by other fast-growing choice and value that today’s discerning the quality, The brand is complemented Together they provide refreshed the Zig-Zag and OCB. affordable price. and has recently are seeking, at an in the UK’s £20m matches market for the iconic tobacco smokers include new products the a major player range. Key elementsLong and Ship matches, reflecting The company is also Extra upgrade of its matches sector with a major packaging for Cook’s, Bryant & May eco-friendly matches. for the tobacco accessories increased demand Swan brand and new are impacting on sustainability and of increases. considerations appeal growing and single-use plasticswhich exceed categories, environmental reduced packaging products As with many other for more natural products, in environmentally-friendly new market as demand is investing heavily growth in tobacco accessories. Swan Technologies thinnest-ever the Republic Swan Ultra Slim, expectations, to maintain Slim & Tips, and customer needs and OCB Virgin Slim and The launches include product aimed at discerning smokers. quality filter – a premium • Cricket Firepower • Swan Extra Utility Lighter Slim Filters • Zig-Zag Green • OCB Virgin Papers Multipacks Slim & Tips • Cook’s • Swan Matches Menthol Filters • Swan • Bryant & May Slim Filters Extra Long Matches • OCB Virgin • Poppell Flint Slim Papers Lighters

o Why stock tobacc accessories on continues to impact of consumers AS THE tobacco ban growing numbers cigarette sales, and (RYO) tobacco, retailers in turn to roll-your-own increasingly using tobacco are in store. England and Wales the wider category accessories to signpostunits for filters, papers, Counter-top display being used to drive are matches and lighters the same overall category. At awareness of the lighters can be merchandised time, matches and such as products alongside complementarybarbecue items. and candles, firelighters accessories increases, the As demand for RYO the total tobacco category, market is outperforming of almost 9%. Papers growth with year-on-year the strongest growth. yearwith filters are showing under £100m, with just at valued of filters Papers are 8%, and annual sales year. on-year growth of on more than 10% year topped £85m, up

EX CL US IV E

TOp 10 MUSTstocks

WHAT THE GOVERNMENT THINKS YOU’RE WORTH • Stores to receive as little as 1.5p per bottle returned • First finance models for reverse vending units revealed P3

PREMIER MARGINS

UNDER PRESSURE

CATERING FOR CUSTOMERS

Booker-owned symbol group announces quest for 30% margins at anniversary event

More than 25 shop owners slam treatment by the Post Office at government inquiry

How Rahul Odedra uses local connections to make his store stand out from the crowd

BACK PAGE

our say

Chris Dillon, editor – insight

Work on your business as much as working in it

The five biggest stories this fortnight 01

Margin boost promise for Premier retailers

LOUISE BANHAM EARLIER this month, I had the pleasure of joining the last of this year’s Independent Achievers Academy shop visits – to a fantastic Nisa Local store near Paddington Station in London. The retailer’s main issue was one faced by many store owners – many hardworking people, in fact – a total lack of time. Because of his store being a staff member down, his manager and staff were working extra hours to fill that gap. That meant he was having to step in to get many of the managerial tasks done. Predictably, that meant that as more pressing tasks came up, the task of finding, interviewing and hiring someone to fill the vacant role kept tumbling down his to-do list. There are two points I’d like to TAKE HALF AN make from this story. The first is: priHOUR OUT OF oritise staffing. Force yourself to get the staff you need in place. It takes THE SHOP TO discipline, but you will be forever THINK ABOUT chasing your tail and not operating effectively and efficiently if you don’t. WHERE YOU The second is: whatever’s on the WANT TO BE agenda this week, remember that NEXT YEAR your role is to work on your business as much as working in it. You should prioritise your overall business strategy, looking for trends and new products, and analysing improvements as much as the day-to-day running of the shop. Take half an hour out of the shop this week to think about where you want your business to be next year. It’s our role to help you, too. As we prepare to relaunch our website, betterRetailing.com, I urge all our readers to visit the site and read our store profiles and insight to get ideas for your shop. It may be the most profitable thing you do all week. @retailexpress betterRetailing.com facebook.com/betterretailing Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379

Editor – news Jack Courtez @JackCourtez 020 7689 3371

News editor Megan Humphrey @MeganHumphrey_ 020 7689 3357

Features editor Daryl Worthington @DarylNewtrade 020 7689 3390

Features writer Priyanka Jethwa @Priyanka_NT 020 7689 3355

Reporter Alex Yau @AlexYau_ 020 7689 3358

Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361

Head of design Anne-Claire Pickard 020 7689 3391

Production editor Ryan Cooper 020 7689 3354

Editor in chief Louise Banham 020 7689 3353

Head of sales Matthew Oliver 020 7689 3367

Sub editor Jim Findlay 020 7689 3373

Account director George McCracken 020 7689 3364

Sub editor Tom Allaway 020 7689 3395

Account director Charlotte Jesson 020 7689 3389

Head of marketing Jessica SalisburyFielder 020 7689 3352

Managing director Parin Gohil Senior account manager 020 7689 3375 Natalie Reed Management 020 7689 3372 accountant Abigayle Sylvane Production coordinator Business Ashley Reid development executive 020 7689 3383 020 7689 3368 Kurran Jagpal 020 7689 3363

Retail Express is printed and distributed by News UK at Broxbourne and delivered to news retailers free by their newspaper wholesaler. Published by: Newtrade Publishing Limited, 11 Angel Gate, City Road, London, EC1V 2SD; Phone: 020 7689 0600

offering 65% POR, with a cost of no more than £25 a week. A dessert bar called Just Desserts is now available to retailers looking for a

said he had bene�ited from 28% POR, a 20% increase in footfall and weekly takings of £1,500 on the dessert bar itself since his re�it.

Read more at betterRetailing.com/ margin-boost-promisepremier-retailers

Cardtronics fee fury

CARDTRONICS has introduced transaction charges on 2,000 previously free-touse ATMs since the beginning of 2019. In its annual results released this month, the ATM operator, which also trades as Cashzone and DC Payments, described the move as “op-

more advanced option in food to go. Justin Whittaker, who has the dessert bar in his 1,400sq ft MJ’s Premier near Oldham,

erational improvements”. But retailers said the new 95p charges had destroyed the viability of the service. “My transactions have fallen off a cliff. I’m making less commission and it looks like I’m exploiting the people I was trying to help,” said one retailer.

No parcel commission

AMAZON has launched a new click and collect service, and is looking to partner with independent convenience shops to build a national network of collection points Named Amazon Counter, the service will run in direct competition with PayPoint’s CollectPlus, OttoGroup’s My-

Hermes, DHL’s PassMyParcel and UPS’ Access Point click and collect services. Amazon does not plan on paying commission to retailers, instead relying on footfall and simpler procedures. Read more at betterRetailing.com/ amazon-click-and-collect

Sales support executive Michela Marino 020 7689 3382

Designer Jody Cooke 020 7689 3380

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PREMIER has pledged to help its symbol group retailers reach average margins of 30% to offset challenges with rising costs and declining footfall. Brand director for Premier Martyn Parkinson said the average percentage margin for the more than 3,350 stores operating under the symbol group was “in the low 20s”, but the group would be working to increase it to 30%. “If we’re not working towards 30% margins, we’re not going to make a living out of convenience retailing,” he said. “How do we build a model that gets margins close to 30%? In this competitive market, we can’t put prices up, so we have to look at other avenues.” Parkinson singled out food to go as an area Premier is investing in and one that retailers need to move into if they want to earn up to 75% pro�it on return (POR). He said a new food-to-go guide would launch this summer, and Booker will run an exclusive coffee machine deal,

48,789 Audit Bureau of Circulations July 1 2017 to June 30 2018 average net circulation per issue

Reproduction or transmission in part or whole of any item from Retail Express may only be undertaken with the prior written agreement of the Editor. Contributions are welcome and are included in part or whole at the sole discretion of the editor. Newtrade Publishing accepts no responsibility for submitted material. Every possible care is taken to ensure the accuracy of information. No warranty for goods or services described is implied.

PayPoint One success

PAYPOINT has converted three quarters of independent stores using its yellow T2 terminal to its PayPoint One EPoS system, according to its latest �inancials. The results show 13,248 shops now use PayPoint One. Marketing director Steve O’Neill said the system was “attracting new customers to the

network”, with 1,000 new partners using the EPoS. It is targeting 15,800 sites by April 2020. Meanwhile, CollectPlus parcel volumes across the network fell by 8% in the last year, and the network shrank by 302 stores to 7,314. PayPoint has vowed to regain volumes.

Plastic ban arrival

PLASTIC straws, drinks stirrers and cotton buds will be illegal to sell or distribute after April 2020, except in the aid of people with medical needs. Though many suppliers are expected to switch to ecofriendly products before next year’s deadline, compliance expert and partner at cor-

porate law �irm DWF David Egan warned: “Businesses may face cost pressures in the short term as they switch to more expensive eco-friendly alternatives.” He said this would be “a particular issue for small and medium local retailers” that use the products.

@retailexpress facebook.com/betterRetailing

4-17 JUNE 2019 betterRetailing.com

chris.dillon@newtrade.co.uk 020 7689 3379

Bottle returns commission rates ‘need to be fairer’ EXCLUSIVE MEGAN HUMPHREY RETAILERS will receive 1.5p for over-the-counter and 3.1p for reverse vending machine bottle returns. The news comes from leaked accounts of deposit return scheme (DRS) meetings with Scottish environment secretary Roseanna Cunningham. Speaking to Retail Express, Truls Haug, managing director at machine manufacturer Tomra, claimed: “This is one of the higher

levels of handling fee.” While it is the highest payment, analysis by Retail Express shows it is one of the lowest in Europe as a percentage of the deposit value – set at 20p for Scotland. Out of 10 other countries that pay retailer commissions, the maximum 15.5% rate for Scotland is ninth lowest. Croatia tops the table at 33.3%. Sources at the meeting alleged the MSP defended the low rate as being due to a higher level of competition in the UK.

NFRN DRS steering group member Mo Razzaq said: “There needs to be a fairer reflection in the rates if this is going to be cost-neutral.” Details have also emerged of how returns machines, which start at around £15,000 each, may be financed. Haug said: “We will be offering finance models. With one, you will pay for the machine upfront and contribute a monthly or yearly maintenance fee. Another will take the form of a monthly or quarterly rental contract,

and a third will be financed dependent on use.” “We will take into account the size of each store and the size of the machine needed,” he added. John Lee, head of public affairs at the Scottish Grocers Federation (SGF), revealed to Retail Express it is working to help stores afford machines.

“We’re at very early stages of speaking with the Scottish National Investment Bank for funding retailer investment in deposit return machines,” he said. He added that a recently announced ‘climate emergency’ in Scotland opened up funding for green business investments.

GOOD WEEK GOVERNMENT: Labour will fight for better policing and business rates support for retailers, business shadow minister Bill Esterson has pledged. Speaking at the launch of the NFRN’s 2019 Independent Retail Report in London last month, Esterson said: “It’s so important that we, as politicians, support the NFRN and its members.” WHOLESALE: Booker has slashed the minimum order quantity (MOQ) for wholesale deliveries to Londis and Budgens retailers. Retailers from both symbol groups have had their MOQ reduced from 150 to 100 cases. Londis retailer Ketul Desai said: “We will have fewer issues in terms of how much space we have in the stockroom.” Read more at betterRetailing.com/ booker-slashes-moq

BAD WEEK

PAYPOINT

Read the full story online at betterRetailing.com/ paypoint-epos-expands

What does its latest annual results reveal for retailers?

-8%

-2%

The volume decline in the CollectPlus parcel collection network

13,248

-302

The decline in CollectPlus sites

The number of shops using the latest PayPoint One EPoS system

express yourself “They say the service alone brings footfall, but it hasn’t been measured just yet. How do they know the profile of their customer? Break it down. Their handheld device will require electricity. The list goes on. It’s so ungrateful. We have invested into our brick-and-mortar businesses. Why do the online businesses sit there and think they are doing us the favour? The only thing I offer for free is good customer service.” Natalie Lightfoot, Londis Solo Convenience, Glasgow

The drop in bill payment transactions

the column where you can make your voice heard

JUUL: Vaping supplier Juul has been giving free stock to selected stores and withholding products from others, according to frustrated retailers. Store owners told Retail Express’ sister title, RN, that selected stores in north England and the Midlands were provided with displays and £790-worth of free stock as part of a trial. ALDI: News sellers are to face less competition from Aldi as the discounter plans to remove newspapers and magazines from its 400 UK sites. The decision follows an alleged dispute with Fore UK, an arm of Menzies Distribution, which was responsible for merchandising the categories across Aldi’s sites. Read more at betterRetailing.com/ aldi-to-remove-newspapersand-magazines

Will Amazon’s over-the-counter click and collect service help boost footfall?

“We have just dropped MyHermes because they were paying less while expecting more of us. The installation of the instore printer was too far for us. Extra footfall looks good on paper, but, in my experience, parcel customers tend to be just completing that shopping mission, so it’s tough to convert them into spending on other products. I would rather work at generating our own increased footfall through community involvement than work to line a competitor’s pocket.” Jacqui Dales, Spar London Road Bakery, Lincolnshire

“You’d be better off going with MyHermes, CollectPlus or Doddle. I think there is another service through PayPoint, too. At least you get 40p commission per parcel and are able to attract the so called footfall, too. I should also point out I that already process 25 to 50 parcels a day through MyHermes and get paid for it. Amazon should pass on the commission they would give companies like MyHermes direct to retailers rather than keeping it for themselves.” Kunal Patel, Canons Convenience, Edgware, London

Do you have an issue to discuss with other retailers? Call 020 7689 3379 or email chris.dillon@newtrade.co.uk

Jacqui Dales

NEWS

4-17 JUNE 2019 betterRetailing.com

Future of Post Office network in doubt Strategy’s (DBEIS) inquiry into the PO. Concerns raised during the THE future of the Post Office (PO) has been cast inquiry included the ongoing into doubt as business and Horizon trial alongside conconsumer groups gave evi- tinual declines in government dence on its sustainability to subsidies, remuneration, govthe government. ernment service partnerships County councils, Citizens Ad- and subpostmaster morale. Imran Khan, who has been a vice, Which?, the ACS, the NFSP, the CWU and more than 25 subpostmaster for eight years, subpostmasters submitted the provided evidence to DBEIS. He evidence to the Department for said: “All I have seen is a decline Embassy 172 x 240 mm.pdf 1 28/05/2019 PO. We have 15:27 lost all our Business, Energy and Industry of the ALEX YAU

investment, and the goodwill of the business, and nobody in the proper state of mind is willing to buy our business if it has a PO inside it.” The PO denied the network was unsustainable. In its evidence, it added: “Running a PO continues to be an attractive proposition for many retailers. However, while the model is now more sustainable, postmaster incomes have not kept pace with increasing costs.

“Furthermore, we know that while the PO franchise is valued because of the footfall it brings, operating a PO is complex because of separate technology, the need to meet certain regulatory requirements and the knowledge required to support a multiproduct operation. “We must make it more attractive for postmasters and our strategy is to make it easier for them to make more money with less effort.”

WAS £11.95 NEW PRICE

£9.35

RRP*

Gov’t considers digital Healthy Start alternative A DIGITAL alternative to replace the existing Healthy Start scheme is being considered by the Department of Health and Social Care. The government scheme offers free vouchers each week to pregnant mothers or those with children under four years old to help buy basic food. Speaking at the ACS re-

sponsible retailing forum in Leicester last month, NHS Business Services Authority associate product owner Toni Fletcher said: “There definitely won’t be any use of vouchers when the changes come in.” Retailers expressed concern on the ease of monitoring credits on the new scheme.

PAYZONE AND PO IN JOINT CONTRACT WIN C

CMY

INTRODUCE TODAY’S CONSUMERS TO EMBASSY A NEW PRICE FOR THE ORIGINAL NUMBER ONE

PAYZONE and the Post Office are to provide more services through each other following their first joint contract win since merging at the end of last year, according to retailers. Both companies have struck a three-year contract with ScottishPower Smart Metering. Due to roll

out in the summer, 600,000 of the company’s smart meter customers will be able to top up in a Post Office or Payzone outlet. Retailers claimed their Payzone reps had told them more services available through one provider will be available through the other, and vice-versa.

Retailer concern for UK Smiths News staff

FOR TOBACCO TRADERS ONLY. *RRP: FOR THE AVOIDANCE OF DOUBT RETAILERS ARE FREE AT ALL TIMES TO DETERMINE THE SELLING PRICE OF THEIR PRODUCTS. NEW RRP ON EMBASSY NUMBER 1 RED AND BRIGHT BLUE ONLY.

THE “clock is now ticking” for Smiths News’ UK support centres, according to one newsagent. The claim, denied by the wholesaler, comes after it promised improved service through a new call centre in India. From July, the new centre will support existing sites in Wednesbury and Newcastle. CEO Jonathan Bunting promised a “high-quality, effective and responsive service”.

However, Graeme Doubleday, of Doubleday’s Newsagents in Mossley, said: “The clock is now ticking. Why not take more staff on at home if they are needed?”

F L AV OURE D GIN I S IN G R OW

PRODUCTS

Canned wine from Concha y Toro PRIYANKA JETHWA CONCHA y Toro has launched a sparkling canned wine aimed at millennials. Ojos is available in Rosé Spritz with Cranberry & Pink Peppercorn and Chardonnay Spritz with Rose & Raspberry �lavours, each with an RRP of £2. Rebecca Davis, the company’s marketing consultant, said the supplier had originally planned to launch Ojos in a bottle. However, with canned wine bene�itting from 50% growth, it made sense to follow the trend. “Even though 70% of alcohol consumers drink wine, only 40% of social events include wine. Concha y Toro

wanted to create something that was light, so more shoppers felt it appropriate for more occasions,” she said. Concha y Toro will be investing in a social media campaign, including hosting pop-up bars and sampling opportunities at main train stations in London. “Point of sale material will also be available to independent retailers, and as a special introductory offer, we’re deducting 25% from the price,” Davis added.

4-17 JUNE 2019 betterRetailing.com

Juul distribution widens with Bestway RETAILERS can now buy Juul vaping products from Bestway as part of the supplier’s plans to widen its distribution. John Patterson, sales director at Juul Labs, said independents and symbol retailers account for 45% of tobacco purchases, but less than 10% of overall vape sales. “The opportunity for the channel is huge and we estimate it could be worth an incremental £750m a year by 2020 if convenience gets its fair share,” he added. The deal will initially feature Juul Labs’ core range, including a starter kit and �ive Juulpod �lavours: Golden Tobacco, Glacier Mint, Mango Nectar, Royal Creme and Apple Orchard.

Bestway and Batleys’ Abbey Road, Birmingham, Brighton, Exeter, Hackney, Leeds, Liverpool, Manchester, Southampton and Team Valley depots will be the �irst to stock the range. Further depots will join once Juul’s age-veri�ication process has been tested and veri�ied.

A roaring success for Lucozade Sport

A blush of pink for summer launch

Bringing the Spanish sun with Diageo gin

LUCOZADE Sport has launched limited-edition bottles as part of its partnership with the England Lionesses, ahead of the football team’s games this summer. The bottles will be rolled out across the brand’s Orange and Raspberry 500ml and four-pack formats. They feature England players Steph Houghton and Nikita Parris, and coincide with this year’s FIFA Women’s World Cup. The designs are part of Lucozade Sport’s £2m promotional campaign as the of�icial sports drinks and hydration partner of the England Women’s football team. The campaign includes TV, digital, social, outdoor and in-store activity.

FOLLOWING the launch of Echo Falls Summer Berries Vodka, Accolade Wines is tapping into the gin market with Summer Berries Pink Gin. The gin category is growing at 43% year on year and the drink is targeted at those looking for new gin varieties. The launch will be supported with �ive new drink recipes that have been speci�ically created to promote Summer Berries Pink Gin. It will also be advertised on the brand’s social media channels. Summer Berries Pink Gin will be available with an RRP of £16.

DIAGEO Reserve has launched a new super-premium Italian gin, Villa Ascenti Gin, with an RRP of £35. There has been a 39% increase in volume and 41% increase in value sales of gin in the UK in 2018, and the spirit represents 4% of Diageo’s net sales. Tanya Clarke, general manager at Diageo Reserve Europe, said gin has been the

Claire Keaveny, head of marketing for Lucozade Sport at Lucozade Ribena Suntory, said: “We know what a large sales driver this will be – last year’s summer of football boosted Lucozade Sport sales by 32% – so retailers should stock up on the special-edition Orange and Raspberry packs ahead of the tournament to make the most of this opportunity.”

runaway success story of the industry over the past decade and its growth shows no signs of slowing down. “Villa Ascenti Gin uses locally grown ingredients from Piedmont, alongside some of the more classic botanicals associated with gin. It has allowed us to create a high-quality liquid, which we hope existing and new gin drinkers will love.”

Putting some sparkle Get a pizza the action Graze kicks off its into Highland advert from Chicago Town £2.1m ad campaign HIGHLAND Spring has unveiled new packaging for its Sparkling variety, which will be supported by its biggest campaign to date. The campaign will be live from September, and spans digital and outdoor advertising. Carol Saunders, head of marketing at Highland Spring, said: “We saw huge success with the launch of our newlook Still range in 2017, and now is the time to give Sparkling a refresh of its own. “Consumers will see a newlook bottle made from 25% recycled plastic that’s 100% recyclable, which dials up the credentials of Highland Spring and better suits their lifestyle and needs.”

TO DRIVE more engagement between shoppers and the brand, Chicago Town is investing in a £5m campaign. It will be shown on TV, cinema and video-on-demand, and features new packaging to bring the range together and encourage consumers to purchase more products. The Pizza Kitchen range has also

been renamed Chicago Town Tiger Crust. Paula Wyatt, head of marketing for Pizza at Dr Oetker, said: “While our pizza sub-brands continue to perform well, the category is evolving and is more competitive than ever, so we felt the time was right to relaunch our masterbrand.”

GRAZE has launched its biggest advert to date, with an investment of £2.1m. It focuses on one of Graze’s bestselling products, Smoky Barbecue Crunch, highlighting its low-calorie content. The campaign is set to reach 75% of Graze’s target audience nationwide. The brand is also distributing 400,000 samples across �ive cities: London, Manchester, Birmingham, Liverpool and Leeds. Anthony Fletcher, chief executive of�icer at Graze, said: “Following the launch of our initiative to signi�icantly reduce the sugar content across our entire cereal bar range and our new under 100 calories

‘wow bakes’, the campaign highlights Graze’s sustained efforts in providing nutritious products in the healthy snacking sector.”

ACADEMY IN ACTION

4-17 JUNE 2019 betterRetailing.com

The Independent Achievers Academy (IAA) is a learning and development programme that helps to increase sales and profits. Academy in Action shows how retailers like you are working with our partners to use the Academy’s advice.

Name:

Ranj Hayer

Shop:

Hayers Meadvale Location: Weston-super-Mare, Somerset 1,800sq ft Size: Three full-time, six part-time Staff:

We’re here to help. Call 020 7689 0500

PARTNER ADVICE

EFFECTIVE RANGING Part seven of our 12-week programme shows how COCACOLA EUROPEAN PARTNERS and the IAA helped RANJ HAYER with an action plan to improve his ranging

EFFECTIVE ranging is balancing a variety of products while giving customers a choice for their budget. EPoS data can highlight slow-selling lines, while working with suppliers can ensure the success of new products. Read how Sam Southgate from Coca-Cola European Partners helped Ranj Hayer improve his approach to ranging. Ranj’s Premier in Weston-super-Mare is in a residential area close to a school, but with little passing traffic. He has a strong core range and frequently introduces new products. How can the IAA help improve his range and increase sales?

Want to see more? For more on how to improve your store and to see more of Ranj’s shop, go to betterRetailing.com/Academy-in-Action

Ranj is already a disciplined retailer. I think this action plan will make his sales and customer relations even better. Sam Southgate Wholesale & Convenience Activation Lead Coca-Cola European Partners

YOUR ACTION PLAN 1 Walk your shop

This is designed to be used to help you think like a customer

2 Benchmark your shop

Use the checklist below, ticking all you see evidence of

WHY I TAKE PART I want to be able to learn and adapt with the daily changes in retail, especially when it comes to my range. It was great to meet Sam from Coca-Cola European Partners and work through an action plan to improve our margins. The visit was insightful, and I’m excited to see where this relationship will take me and my business.

Ensuring a strong core range and reviewing it regularly Analysing sales data and deciding when to delist Identifying new and niche products to stock Understanding customer preferences Planning and measuring success

IAA ADVICE Planning and measuring longterm success

Ensuring the success of new and niche products

Analysing sales data and deciding when to delist

Ranj offers a wide range of price-marked packs (PMPs) across different categories while balancing sales and margins made. How can he better plan his promotions to enhance sales?

Ranj often introduces new products, but he doesn’t always promote them to customers, often resulting in sales tailing off. How can he ensure their longterm success?

Ranj analyses EPoS data on a lineby-line basis. If a new product underperforms compared to another, he delists it. Would he benefit from a category-wide perspective?

Sam says: “PMPs and multibuy promotions show you are competitive and give shoppers confidence they are getting a good deal. PMPs drive impulse buys and purchase frequency, while multibuy can encourage shoppers to pick up more of the same item.”

Sam says: “Introducing new lines is key, but it’s also crucial to drive awareness. In addition to secondary displays and PoS, use personalised messages on social media to tell customers what you or your team enjoyed about new products.”

Sam says: “Deciding whether to delist a product is challenging. EPoS data helps Ranj decide whether to delist products or increase facings. By sharing this with suppliers, Ranj can get demographic insight, and ensure he stocks the lines that will boost spend.”

ACTION Work with suppliers to develop a mix of PMPs and multibuy promotions.

ACTION Use social media to target new product recommendations.

ACTION Review ranges at category level by working with suppliers.

3 Pick one thing to improve Write it down, implement it this week and let us know how you get on using #IAA19

SATISFY YOUR TARGET SHOPPERS Go to betterRetailing.com/IAA/benchmark to ensure your range encourages return visits and see how you can improve in 11 other categories.

Next time: Digital Engagement

PRODUCTS

Unlock summer sales with Mars PRIYANKA JETHWA MARS Wrigley Confectionery is returning with its Sweet Sundays promotion, giving shoppers the chance to claim free cinema tickets. Promotional codes can be found on or inside ‘More to share’ or ‘Family pack’ promotional pouches (189g268g), which are worth five stars each, while standard promotional pouches (91g165g) are worth two stars. Consumers can claim their free cinema ticket voucher once codes worth 10 stars have been registered at sweetsundays.co.uk. The promotion will run across Maltesers, M&M’s,

Galaxy, Revels, Milky Way, Skittles and Starburst. Clare Moulder, senior brand manager at Mars Wrigley, said: “We’ve seen demand for this promotion increase year on year – in 2017, shoppers claimed 90,507 free cinema tickets worth £791,936, while in 2018, we saw a 30% increase and gave away 126,076 free cinema tickets worth £1,103,165. “The proven success of the promotion is down to providing value to shoppers by enabling them to partake in their favourite outdoor activity, while enjoying their favourite treats. However, the promotion doesn’t only benefit consumers, it also will

unlock excellent crosssegment opportunities for retailers to help boost sales.”

4-17 JUNE 2019 betterRetailing.com

Heineken ups its focus on low- and no-alcohol HEINEKEN’S new campaign, ‘Say yes’, aims to attract more shoppers to the supplier’s no- and low-alcohol beer and cider range. The campaign focuses on Heineken 0.0, Birra Moretti Zero and Old Mout Alcohol-free, and will run in store and online, demonstrating the role alcoholfree can play through scenarios in shoppers’ lives. It follows on from an in-store

activation Heineken developed in partnership with Drinkaware last year, to promote the body’s national campaign, ‘Drink free days’. Toby Lancaster, category and shopper marketing director at Heineken, said: “No- and lowalcohol is booming. The beer category is currently experiencing an increase of 24% in yearly sales value growth.”

Drive core range with McVitie’s gets sporty Frubes turn frozen in Tic Tac’s promotion with Team GB link-up new kids’ campaign FERRERO’S on-pack promotion for Tic Tac offers shoppers the chance to win a holiday to Ibiza as part of its partnership with radio station Kiss. It aims to drive shopper demand for Tic Tac’s core range, with the promotion featuring across two million packs of Tic Tac Fresh Mint and Lime & Orange. The campaign will be supported with a £250,000 media investment. Levi Boorer, customer development director at Ferrero, said: “We’d encourage retailers to capitalise on the increased demand of Tic Tac Fresh Mint and Lime & Orange by stocking our promotional single packs. “Both lines are well established in the market and still

growing, with value sales up by 8% and 5% respectively.”

To win £50worth of promotional stock, head to betterRetailing.com/ competitions

WITH just over a year to go until the Tokyo 2020 Olympic Games, McVitie’s has joined up with Team GB as one of its official partners. The partnership will be activated through in-store promotions. The news comes after McVitie’s announced that it was partnering with mental health charity Mind to launch a new campaign, ‘Let’s talk’, aimed at promoting mental well-being by encouraging people across the nation to get talking. Nick Bunker, managing director at Pladis, said: “We’re incredibly proud to be working

with Team GB. We know that the nation is passionate and proud of its British sporting heritage, as are the 22 million households up and down the UK who feel equal love for our McVitie’s brand, so this partnership feels like a natural fit.”

GENERAL Mills is back with its ‘Try me frozen’ campaign for Frubes, encouraging consumers to freeze the yoghurt tubes as a healthier alternative to ice cream. Rosanne McDonnell, brand manager for Yoplait Kids, said: “We know that kids enjoy Frubes as part of their lunchboxes, but we wanted to create an additional occasion for them as the weather heats up. Freezing Frubes is an exciting way to experience fruity flavours of the yoghurt, and is the perfect refreshing treat after a long day in the sun.” The limited-edition packs will be available until the end of August.

Richmond’s thin twist Summer Sip & Dip with Carlsberg TV ad drives to Chicken Sausages Belvoir Fruit Farms attention to new Pilsner KERRY Foods has added new Richmond Thin Chicken Sausages to its range. Available in a 12-pack, and with each sausage containing 48 calories, it joins regular Chicken Sausages and is designed to offer consumers a broader range of choice within the sausage category. Dawn Spencer, marketing and category director at Richmond, said: “There continues to be a noticeable shift towards alternative proteins in sausages, especially chicken sausages. Since its 2018 launch, Richmond Chicken is worth £3m, and is the second bestselling chicken sausage, with a 15% value share of the chicken sausage category.

BELVOIR Fruit Farms is taking the plunge this summer and investing £2.5m in two major family events. Sip & Dip Pool Parties aim to promote Belvoir Fruit Farms to key consumers, supported by an on-pack promotion, offering shoppers the chance to win prizes worth £500,000, including inflatable hot tubs, paddling pools and branded Belvoir beach towels. This will be communicated through neck collars on the bottles The promotion runs across key products in all 250ml, 500ml and 750ml formats.

CARLSBERG is returning to screens to further push the launch of its reformulated Danish pilsner. The TV advert will run throughout the summer and features Danish actor Mads Mikkelsen. Liam Newton, vice president of marketing at Carlsberg, said:

“The aim of our marketing campaign is to get consumers to try our new Carlsberg Danish Pilsner and drive reappraisal of the brand in the UK. “It’s been great to see the reaction so far, and we hope drinkers will respond to the humour of our new TV ad.”

ACADEMY IN ACTION

4-17 JUNE 2019 betterRetailing.com

Name:

Harjinder Ruprai

Shop:

Ruprai Food & Wines Location: Kings Heath, Birmingham 2,000sq ft Size: Three full-time, seven part-time Staff:

We’re here to help. Call 020 7689 0500

PARTNER ADVICE

DIGITAL ENGAGEMENT In part eight of our 12-week programme, PAYPOINT and the IAA help retailer HARJINDER RUPRAI improve her digital customer engagement strategy

CREATIVE use of digital tools like Google Maps and social media helps retailers improve customer experience and promote their business. Before benchmarking, find out how Steve O’Neill from PayPoint identified ways Harjinder could improve her digital engagement. Harjinder’s store is in a residential area in Birmingham. She stocks exclusive craft beer, which sells well and puts the store on the map. The team want to use social media to engage customers and promote their specialist ranges. How can the IAA help Harjinder better understand and interact with her customers?

Want to see more? For more on how to improve your store and to see more of Harjinder’s shop, go to betterRetailing.com/Academy-in-Action

Harjinder has a great store, but she now must find time to focus on building her digital presence and engagement. Steve O’Neill Marketing Director

PayPoint

YOUR ACTION PLAN 1 Walk your shop

This is designed to be used to help you think like a customer

2 Benchmark your shop

Use the checklist below, ticking all you see evidence of

WHY I TAKE PART I’m hoping today’s visit will help me learn about using digital tools to increase footfall, and connect with existing and new customers. I find digital engagement really complicated, so I’m hoping Steve from PayPoint, and the IAA, can help me understand how I can use social media to grow my business.

Ensuring customers can easily find out about you online Connecting with customers and suppliers through social media Offering alternative options and simpler ways to buy Enhancing the shopping experience Understanding your business and customers with data

IAA ADVICE Ensuring customers can easily find out about the store online

Understanding their business with data

Connecting with customers through social media

Harjinder’s shop is on Google, however her store does not appear in a general search. What can Harjinder do to help boost her store’s visibility so her customers can find it online?

Harjinder uses Facebook to post about products from Nisa’s promotional leaflet, but is unsure if the posts are affecting sales. How can she understand and improve their effectiveness?

Harjinder uses Facebook to share offers, but is unsure how to be creative and get new customers to her store. What can Harjinder change to increase her customer base?

Steve says: “Harjinder’s store is hard to find on Google. It’s key for retailers to have upto-date photos of their store including their exclusive products. Use Google My Business to claim your location, let visitors to the area know of your existence and boost sales.”

Steve says: “It is important to understand the effectiveness of your posts. EPoS data for the items you are promoting can show which posts got the highest sales increases. Use this insight to improve future posts.”

Steve says: “Having a generic social media account won’t do much to help your business. Make it more about you and the store’s personality to engage on a personal level. Simple changes like promoting unique store or charity events can be very effective.”

ACTION Use Google My Business to improve the store information online.

ACTION Review sales relating to Facebook posts to see what works.

ACTION Personalise social media posts so they’re unique to your store.

3 Pick one thing to improve Write it down, implement it this week and let us know how you get on using #IAA19

KEEP UP WITH THE MODERN CONSUMER Visit betterRetailing.com/IAA/benchmark to engage shoppers through data and technology, and see how you can improve in 11 other categories.

Next time: Merchandising

PRODUCTS

4-17 JUNE 2019 betterRetailing.com

Unilever’s healthier alternatives Jägermeister dials PRIYANKA JETHWA WITH more people becoming increasingly aware of their diets, Unilever is encouraging retailers to stock healthier versions of popular brands. This means stocking lowsalt and low-sugar alternatives, according to Kyrie Merryman, marketing manager for Marmite at Unilever. She said that whether it’s because of fitness influencers sharing healthy recipes or government initiatives such as Public Health England’s sugar reduction programme, national awareness is at an all-time high. “Forty-one percent of Marmite Reduced Salt sales

up focus on Mule

have been fully incremental to the yeast spreads category,” she added. Concerns about sugar have also created an opportunity for brands to showcase their health claims. This is being supported by multiples – and is something independents can learn from. “For example, in September and October last year, Marmite Reduced Salt was featured in a health-focused aisle in Tesco, which included products that claim specific health benefits, such as low-salt, low-calorie and gluten-free,” she added. “Marmite Reduced Salt was chosen for inclusion and put on promotion at £2, resulting in greater brand awareness and a sales uplift.”

JÄGERMEISTER has unveiled a new campaign to drive awareness of the brand and to promote its signature serve, the Jägermeister Mule. The ‘Mix it up for summer’ campaign comprises events, sampling, outdoor advertising, PoS, on-pack promotions

and a social media campaign. In the off-trade, the campaign is being supported in stores with 100,000 neck tags encouraging consumers to ‘mix it up for summer’, with a guide to creating a Jägermeister Mule and a free ginger beer voucher.

Barefoot taps into canned wine market

Cofresh returns with Malibu Strawberry Asian TV and radio ads Spritz hits c-stores

BAREFOOT’S Pinot Grigio and White Zinfandel are to be made available in cans for the first time. The 250ml slimline cans are the equivalent of one large glass of wine and will have an RRP of £2.50 each. The launch will be supported by a social media campaign and promoted by influencers. Barefoot recommends that retailers merchandise the cans in the chilled sections of stores, alongside other products of the same format. Mark Stammers, sales director at E&J Gallo Winery, added: “For stores that are able to offer a secondary display placement, merchandising the cans alongside the 750ml range would also be beneficial, to highlight to

TO support this year’s key Asian trading times such as Ramadan, Eid and Diwali, Cofresh is investing in a primetime TV and radio campaign. The programme sponsorships will air daily across the B4U Music, B4U Movies and Hum TV channels, as well as

consumers that this is the same wine but now in a can. “Retailers should also look to leverage the PoS, which will support this launch with the message ‘Your favourite Barefoot, now in a can!’.”

on Zee TV, Zee Music, Sony TV, StarPlus, Sunrise Radio, Sabras Radio and the Star network’s coverage of the Indian Premier League Twenty20 cricket matches. The ads target consumers through specific movies, music and reality shows.

TAPPING into the pink trend sweeping across fashion, food and drink, Pernod Ricard has launched Malibu Strawberry Spritz, with an RRP of £9.50. Malibu Strawberry Spritz is a sparkling rum-based cocktail with an ABV of 11%. It is the brand’s first-ever ready-todrink product in a 750ml bottle. The supplier says 42% of pink spirit shoppers purchase prosecco and 35% of those purchasing both products are Malibu’s millennial consumers. The brand is looking to drive this growth further by capitalising on the recent surge in demand. The increased demand for pink products has also driven double-digit growth for the beer, wine and spirits category in both the on- and off-trade,

with one in three pink shoppers not buying any other type of spirit.

When life gives you lemons, eat muffins

Hardys takes the bat Dairylea dares as the wine of cricket shoppers to get active

ARYZTA is sweetening shelves this summer with the launch of its Otis Pink Lemonade Muffin. The lemon muffin is filled with raspberry and lemon curd, topped with pink sugar crystals, and decorated with an edible yellow straw. It comes wrapped in a pink and white gingham muffin case. The product will be supplied in thaw-and-serve cases of 24, at an RRP of £1.49. Paul Maxwell, the company’s marketing manager, said: “Demand for seasonal lines is at an all-time high, and summer is a key period for retailers looking to drive sales from the bakery fixture. “Retailers will also be able to boost sales of the muffin as part of an incremental deal,

THE official wine of England cricket, Accolade Wines is launching a new campaign for Hardys, ‘The rules according to Hardys’. The campaign will be activated in store through limited-edition Hardys bottles, including a full sleeve on its Hardys Crest wine and a cricket-themed version of Hardys Stamp. The brand will further support the campaign through social media channels and a brand presence in cricket grounds, which is expected to reach 426,000 cricket fans going to watch the Ashes series this summer. David White, marketing director at Accolade Wines, said: “Hardys has seen a 3.6%

meaning there’s plenty of opportunity to maximise sales from in-store bakery this holiday season.”

increase in sales year on year, during which period it has also launched Hardys Alcohol Free Chardonnay. We recommend retailers offer a range of Hardys wines on the shelf and, more importantly, in the chiller.”

MONDELEZ is encouraging families to get out and about this summer, with specialedition packs of Dairylea, renamed ‘Dareylea’. The ‘We Dareylea you!’ campaign will see packs of Dairylea triangles, spreads and slices rebranded as ‘Dareylea’ for three months.

The campaign will be supported by £1.3m of outof-home, online, social media, radio and in-store activity. Patrick Bochet, marketing director for meals at Mondelez International, said Dairylea has a 24% market share and is growing by 5.9% year on year.

CATEGORY ADVICE SOFT DRINKS

4-17 JUNE 2019 betterRetailing.com

SIX WAYS TO DRIVE SOFT DRINKS SALES LUCOZADE RIBENA SUNTORY (LRS) has unveiled plans to nearly double the size of the soft drinks market within three years, generating £179.5m extra sales for independents. RETAIL EXPRESS speaks to Matt Gouldsmith, wholesale channel director at LRS, to reveal what store owners need to do to drive sales

1 ACTIVE AND

EFFECTIVE LIVES

2 HEALTHY

GOODNESS

Growth value for independents: £44.3m

Growth value for independents: £24.1m

Must-stock products: Lucozade Energy, Red Bull, Monster, Lucozade Sport

Must-stock products: True Nopal, Vita Coco, Innocent

“Seventy-seven per cent of adults exercise every week. These brands already do very well in independent stores, so this is a key area for retailers,” says Gouldsmith.

“Sixty per cent of food choices are selected for health benefits and 156 million more healthier soft drinks were consumed last year compared with the year before. These shoppers tend to be mid-to-higher-income earners and health-conscious,” says Gouldsmith.

The opportunity: Get 25% more of your shoppers to buy into drinks that support an active lifestyle.

The opportunity: Get key shoppers to buy these products once each month.

3 TASTY HEALTHIER

4 WITH FOOD

Growth value for independents: £30m

Growth value for independents: £18.9m

Must-stock products: Coca-Cola Zero Sugar, Pepsi Max, Irn-Bru, Ribena, Lucozade Zero “Our brands are a great place to capitalise on this sector. Looking at the most recent data, we’re growing ahead of the market. This is a key area for retailers whose customer base includes lower-to-mid-affluence adults and families,” says Gouldsmith. “Switching shoppers to diet carbonates, juice drinks and squash will help unlock this potential.”

“In symbols and independent stores, 51% of shoppers buy lunch without a soft drink. Meal deals are a great way of encouraging shoppers to pick up these extra items. “Similarly, evening meals and soft drinks are a great link, which retailers can drive with larger take-home bottles,” Gouldsmith says.

The opportunity: Get regular soft drinks shoppers to switch to lower-sugar alternatives and buy two more per year.

The opportunity: Get shoppers to buy soft drinks on four more trips per year when they buy food.

5 WATER LOVERS

6 SPECIAL

REFRESHMENTS

EXPERIENCES

Growth value for independents: £31.9m

Growth value for independents: £30m

“The water market is expected to grow by 21% by 2023. With 61% of shoppers replacing some sugary drinks consumption with bottled water, this is a key area of the market. “Retailers need to keep in mind that some shoppers can find water boring, despite the fact they know it’s best for them, so flavoured waters are must-stocks,” says Gouldsmith.

“Mixers are one of the fastest-growing segments in convenience, but with 39% of shoppers limiting their alcohol intake, there is an opportunity to encourage shoppers to mark celebrations with premium soft drinks. Shoppers are more likely to trade up in grocers than they are in convenience, so if retailers can close the gap, they can make more money,” says Gouldsmith.

The opportunity: Get water shoppers to buy six more times per year.

The opportunity: Trade mid-to-higher-income shoppers up into premium soft drinks once a month.

DON’T MISS THE 14 JUNE ISSUE OF RN

OPINION LEADING INDUSTRY OPINION ON THIS FORTNIGHT’S HOT TOPICS

What do you think? Get in touch for the chance to be featured in Retail Express

POST OFFICE:

Is the network sustainable?

A MUST-READ FOR PROFIT ENDENT RETAILERS -DRIVE INDEP N INDEPE NDENT RETAILERS PROFIT-DRIVEN A MUST-READ FOR

“THE Post Office and policy makers must recognise that the long-term resilience of the network relies on overall commercial viability for retailers. Operating costs for retailers have escalated since the network transformation programme. The increasing national living wage, business rates and a highly competitive grocery market means that all store products and services must justify their position.”

OCK WHAT TO ST STOCK HAT TO W 0 70 products

700

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Edward Woodall, head of policy & public affairs, ACS

How to build the most range for your store profita able ble profit range for your store How to build the most Alcohol Alcohol Biscuits BreadBiscuits

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Confectio ionery nery Confect CrispsCrisps & snacks & snacks Free-from Free-from

CerealBread ChilledCereal

Protein drinks Soft Soft drinks Tobacco Tobacco Vaping Vaping

Househo ld & laundry old & laundry Househ Ice cream Ice cream

Chilled

Find out how to build the most profitable range for your store with What to Stock PLUS Get your bottled water range right

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“WE WILL continue to honour and support all our existing franchise contracts until the end of their term, at which point we will offer them the option to continue buying and promoting WHSmith stationery under a wholesale agreement, should they wish to.”

It’s a good brand and it provides a point of difference for me

RN.indd

The best independent retailers stay ahead by reading RN each week. Do you? ORDER YOUR COPY from your news wholesaler today or contact Kate Daw on 020 7689 3394 TO ADVERTISE in RN, please contact Matthew Oliver on 020 7689 3367

I have to stop providing a post office service because it is no longer financially viable

“IT’S A good brand and it provides a point of difference for me. There are other convenience chains nearby, but I’m the only store in the area that offers products associated with a traditional newsagent. Having the WHSmith Local brand helps reinforce this message to customers.” Paul Patel, WHSmith Local, Southampton

STORE

Louis Holden, St Brides Major Post Office, Glamorgan

WHSMITH LOCAL: Will retailers be affected by the loss?

Three machines go head to head to fight for your business

● betterRetailing.com ● 24.05.2019

Mik 14 » How ards from Page TOUR the rew

“AS I am not classified as a 'worker' by the Post Office, not only am I not guaranteed to be paid the national living wage, I am not eligible for holiday pay, sick pay or a pension. I am getting close to the point where I have to stop providing a post office service because it is no longer financially viable.”

A WHSmith spokesperson

PLASTIC: Will the ban on single-use straws affect sales? “THE ban on plastic drinking straws is planned to come into force in England in April 2020. We will also continue working with all stakeholders, including disability groups, to make sure those with accessibility needs are not disproportionately disadvantaged.” Department for Environment, Food and Rural Affairs spokesperson

“I DON’T think it will affect traditional CTNs or smaller convenience stores. In my shop, straws and cotton buds only make up a very tiny percentage of our overall sales. Straws are more of a seasonal purchase for the summer. Retailers that focus heavily on food to go will probably feel more of an impact.”

Retailers that focus heavily on food to go will feel more of an impact

Harj Gill, Select & Save The Windmill, Rubery, Worcs

SAINSBURY’S-ASDA: Should the CMA block a merger for 10 years?

Sainsbury’s may not acquire an interest in Asda for 10 years

“ARTICLE 12 provides that Sainsbury’s may not acquire an interest in Asda or any entity holding an interest in Asda for 10 years. This also applies to the entities in its corporate group. Representations made in response to this notice should reach us by 5pm on Monday 24 June.” Stuart McIntosh, Competition and Markets Authority group chair

“THE CMA has signalled its intent to be much harder on mergers. It’s really nailing down on Sainsbury’s and Asda to ensure the convenience industry remains competitive and fair. It’s also signalling its intentions to any other companies that want a big merger within convenience." David Gilroy, retail expert

LETTERS

4-17 JUNE 2019 betterRetailing.com

Londis Solo

natalie Convenience, lightfoot Baillieston, Glasgow

Letters may be edited

To stay relevant and exciting to their customers, retailers need to always be on the lookout for new ideas

‘Brexit has had a negative effect on our sales’ BREXIT has been having an impact on our sales. Since the government announced Britain would be leaving the European Union (EU), I’ve noticed that our annual sales have dropped by several per cent. This has been happening over a gradual period, rather than suddenly.

Customers are reluctant to spend as much as they used to because they’re uncertain about what will happen in the future. It isn’t just one category we’ve seen a fall in – the sales decline has been across the board. The decrease in sales has also affected my margins. To decrease any potential dam-

age to my sales, I’ve opted for more price-marked products and multibuy promotions. An increase in the wholesale price affects how much profit I make from these products. I’ve also been asking customers for more feedback on the types of products and services they want. On top of that, I’ve also

been refitting my store and it’s due to be completed by the end of July at the latest. The new focus will be on food to go, but I’m beginning to question whether the investment has been worth it because of the drop in sales. Kam Nijjar, Spar Meriden, Coventry Tweet us to get featured!

TWEETS OF

THE WEEK

WIN a mint with Tic Tac

FIVE lucky retailers have the chance to win a mixed case of the Tic Tac core range (Fresh Mint, Lime & Orange, Intense Mint and Strawberry Fields). A Kiss Does Summer with Tic Tac promotion is now live, driving demand for the core range as consumers can win music-inspired prizes.

TO ENTER Fill in your details at:

betterRetailing.com/Retail-Express/competitions Our competitions remain online for four weeks from publication date. Editor’s decision is final.

@retailexpress

Today Bira was joined by the @CommonsTreasury and chair @NickyMorgan01 to facilitate the discussion on #BusinessRates. @biraofficial

A DEBATE among retailers is whether you should spend more time on new product development, or on the hot topic – food to go. One of the arguments I agree with is that you can do both, but you shouldn’t do neither. The size of your store, doesn’t matter – you must stay relevant and exciting, and these areas fulfil Each issue, one of seven top that obligation. retailers shares advice to As retailers, it’s make your store magnificent important that we always look for new ideas, whether they are new products or re-evaluating how we do things and the services we can offer. In many ways, the stores in the UK are increasingly moving to how 7-Eleven-style stores in the US or Dubai operate – they cater for all the different shopping missions customers are on with their offerings in store. We can learn by looking at how stores in other countries achieve this. I always try to check up on what’s happening with stores overseas. In Dubai, for instance, stores remerchandise whole bays throughout the day. In my store, we don’t do things on that scale, but we do adopt the same principle by moving the newspapers down in the afternoon, for example, or by putting cakes on a stand by the till at lunchtime, or by displaying lines of US confectionery later in the day. Recognising the different customers in store at different times gets those allimportant add-on sales. You don’t have to look abroad to get ideas, of course. You can heed retailers closer to home – we’re not all in competition with each other. Many retailers have realised that perhaps their wholesalers are not necessarily the first with ideas for adapting our stores. Therefore, we look to each other for support. With social media, it’s easier than ever to reach out and talk to other retailers about our ideas, questions and supplier contacts. What works in one store may not work in another, but being forwardthinking is important. Surrounding yourself with inventive individuals has a positive impact on your store. Look abroad for ideas, by all means, but there’s no harm in taking inspiration from retailers closer to home.

Here at the ACS Responsible Retailing Forum hearing from a great array of speakers talking all things environment, local shops and healthy food and the future of regulation @ACS_LocalShops @JSmallCoop Lawrence Hunt & Co operates a staff payroll giving scheme, 25p a week is donated by participating staff. This month, £8,000 in total was donated to 8 local charities and good causes, nominated by stores and drawn at random. @lawrencehunts

Get in touch

@retailexpress betterRetailing.com facebook.com/betterRetailing chris.dillon@newtrade.co.uk 020 7689 3379

BRAND SPOTLIGHT

RETAIL

IN ACTION

FOCUS ON:

REPUBLIC TECHNOLOGIES With tobacco accessories growing at 9% year on year, RETAIL EXPRESS looks at how you can get your share of the opportunity with REPUBLIC TECHNOLOGIES

Why stock brands by Republic Technologies

Why stock tobacco accessories

REPUBLIC Technologies is one of the major players in the UK’s £283m tobacco accessories market. The company’s product range includes household brand names such as Swan, with a value market share in excess of 95%. The brand is complemented by other fast-growing filters and papers brands such as category-boosting Zig-Zag and OCB. Together they provide the quality, choice and value that today’s discerning rolling tobacco smokers are seeking, at an affordable price. The company is also a major player in the UK’s £20m matches market and has recently refreshed the sector with a major upgrade of its matches range. Key elements include new products for the iconic Swan brand and new packaging for Cook’s, Bryant & May Extra Long and Ship matches, reflecting the growing appeal of sustainability and increased demand for eco-friendly matches. As with many other categories, environmental considerations are impacting on the tobacco accessories market as demand for more natural products, reduced packaging and single-use plastics increases. Republic Technologies is investing heavily in environmentally-friendly new products which exceed customer needs and expectations, to maintain growth in tobacco accessories. The launches include OCB Virgin Slim and Slim & Tips, and Swan Ultra Slim, the thinnest-ever Swan filter – a premium quality product aimed at discerning smokers.

AS THE tobacco ban continues to impact on cigarette sales, and growing numbers of consumers turn to roll-your-own (RYO) tobacco, retailers in England and Wales are increasingly using tobacco accessories to signpost the wider category in store. Counter-top display units for filters, papers, matches and lighters are being used to drive awareness of the overall category. At the same time, matches and lighters can be merchandised alongside complementary products such as candles, firelighters and barbecue items. As demand for RYO accessories increases, the market is outperforming the total tobacco category, with year-on-year growth of almost 9%. Papers with filters are showing the strongest growth. Papers are valued at just under £100m, with yearon-year growth of 8%, and annual sales of filters topped £85m, up more than 10% year on year.

TOp 10 MUSTstocks

• Swan Extra Slim Filters • OCB Virgin Slim & Tips • Swan Menthol Filters • Bryant & May Extra Long Matches • Poppell Flint Lighters

• Cricket Firepower Utility Lighter • Zig-Zag Green Papers Multipacks • Cook’s Matches • Swan Slim Filters • OCB Virgin Slim Papers

4-17 JUNE 2019 betterRetailing.com

In association with

In action

Thrifty’s RYO fixture

Great range: Stock a wide selection of products

Right formats: Pack formats play an important

including core range filters, papers, matches and lighters, as well as the latest product innovations. Use display stands and off-gantry fixtures to signpost the tobacco category in store to drive sales.

role. Space-saving packs such as vertical packs of OCB Virgin Slim, OCB Virgin Slim & Tips and Zig-Zag King Size papers and Poppell 45-pack lighters help retailers to manage shelf space more effectively.

Total tobacco accessories in convenience Value: £216.8m

Papers 37%

Lighters 29%

Filters 30%

Matches 2%

RETAILER

Become a destination: Offer a core range

of papers (Green, Blue and Silver in both standard and King Size variants) as well as other options such as unbleached and flavoured. And make sure to stock multipacks to combat the discounters.

Mick Soni, whose family owns 10 Thrifty’s stores in the north west

“WE STOCK a large range of Swan and Zig-Zag products across our portfolio of 10 shops. Our customers have always been impressed with the quality, which has made them one of our bestselling lines. “We are now looking forward to seeing how the OCB range will work in our shops as customers have been requesting these products.”

OUR CUSTOMERS HAVE ALWAYS BEEN IMPRESSED WITH THE QUALITY, WHICH HAS MADE THEM ONE OF OUR BESTSELLING LINES

Fluids & Gas 1% Other accessories 1% Data source: IRI Convenience, 52 w/e February 24, 2019

For help in improving your tobacco accessories sales, or for a visit from a Republic Technologies rep, call 01494 492 230 or email enquiries@republictechnologies.co.uk

CATEGORY ADVICE FOCUS ON OWN LABEL

KNOW YOUR OWN LABEL With retailers increasingly finding own label lines among their most popular products, we round up the latest news and developments from the major suppliers, and get advice on hitting the sweet spot between own label and branded lines

CO-OP TO LAUNCH FOOD-TOGO TRIAL WITH SUPERDRUG CO-OP will begin an own-label trial with health and beauty chain Superdrug this summer. The trial will see selected Superdrug stores supplied with more than 40 products, including sandwiches, sushi and salads, specifically for meal deals priced under £4. The move could see Nisa and Costcutter stores in several major cities face increased competition on certain lines. The participating branches are located at train stations in Brighton, Shef-

field and London, as well as East Midlands, Bristol and Edinburgh airports. Co-op food trading director Matt Hood said: “Becoming a food-to-go partner for Superdrug is an exciting development as Co-op continues to grow its brand, further increasing the accessibility of own-brand products. These transport hubs provide an exciting and dynamic location to meet the shopping needs of busy consumers and offer our values conveniently.”

Co-op continues to grow its brand, further increasing the accessibility of own-brand products MATT HOOD, CO-OP

4-17 JUNE 2019 betterRetailing.com

BESTWAY LAUNCHES RANGE OF READY MEALS

SUPPLIER

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Sean Russell, marketing director, Costcutter Supermarkets Group “THE introduction of Co-op own-brand products into our stores has allowed many of our retailers to transform their stores into shopping destinations and not simply for distressed purchases. “Since its introduction, the reaction from shoppers has been fantastic. Our retailers are reporting increased footfall as new shoppers make a beeline for their stores. When in store, our retailers are also telling me that they are seeing larger basket spends as shoppers trust the Co-op brand and quality of product, and are therefore completing a far larger shop than they would have considered doing previously. “However, simply having a trusted own brand like Coop in the store isn’t enough to enjoy these sorts of sales uplifts. It’s clear that the retailers that are enjoying the most success are those that are engaging in promoting it across their community and then stocking a sufficient quantity of products across all categories within their store – around 30% is the recommended sweet spot. “Fresh food is key to this and we believe own brand plays a significant role in allowing a retailer to deliver a compelling fresh food offer. With fewer ‘branded’ goods being present in this category, having a credible quality own-brand offering to reassure shoppers and drive credentials of the store is vital. Shoppers tell us the most appealing categories include milk, fruit and veg, meat, sugar, biscuits, ready meals, pasta, pizza, dairy, cheese and eggs. “The most successful retailers are also committing to the highest levels of store standards so that shoppers feel confident buying any product within their store. When all of this is achieved, the blended margins across their range makes own brand a complete win-win – more shoppers, more sales and more profit.”

NISA FRESH LINES STILL POPULAR RETAILERS are reporting that Nisa’s own-label Heritage lines, such as ready meals and minced meat, are more popular than Co-op own-label products in the fresh category. Co-op completed a takeover of Nisa in May 2018. Since then, independent retailers have received access to 850 of the multiple’s own-label

lines, across a range of goods. Ketul Desai, of the General Store (Nisa) in Tufnell Park, London, said: “From a customer perspective, Heritage is seeing much more demand than the Co-op own-label range because they think it tastes better.” He also noted that the fresh Heritage products tend to last a few days longer than the Co-op ones.

BESTWAY has launched a selection of chilled ready meals as part of its Best-one own-label range. “The range has a price-marked offer of two for £5, which encourages consumers to make multiple purchases,” said Steve Carter, director of trading for the chilled category at Bestway. “The RRP of a single meal is £2.99.” According to Bestway, ready meals are one of the fastest-

growing markets in the chilled category, with 45% of shoppers regularly purchasing ready meals in a convenience store. The new own-label lines include beef lasagne, chicken tikka & rice, cottage pie, macaroni cheese, chilli con carne & rice, spaghetti bolognese, sausage & mash, beef stew & dumplings, sweet & sour chicken and chicken korma & rice.

In a bid to reduce wastage for retailers, Bestway has been able to launch the products with a longer shelf life compared to the average ready meal, which the company claims will reduce waste from approximately 5-15% on average to 1-2% for the meals in the Best-one range.

TO D E T T I M COM

OUR RETAILERS SINCE 1977

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

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

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

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CONNECT. INNOVATE. GROW. Join more than 100 like-minded retailers looking for ideas, stand-out suppliers and action plans that will help the convenience sector thrive. Take advantage of a full day of panel discussions, strategic sessions andÂ networking opportunities.

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CATEGORY ADVICE FUNCTIONAL DRINKS TRENDS

4-17 JUNE 2019 betterRetailing.com

GOOD TO GO Functional drinks is a growing category, covering everything from standard energy to vitamin drinks. RETAIL EXPRESS takes a look at some of the options for your store, and how to get the most from your range

GIVING YOUR RANGE A BOOST THE UK’s sports and energy drinks market alone is worth £2bn, so getting it right is a big opportunity for retailers. At the same time, functional drinks as a whole is becoming an increasingly packed category. The combination of busier, on-the-go lifestyles and a growing interest in healthy living mean enhanced fruit drinks and enhanced water -based drinks are now competing for fridge space with traditional energy drinks. Retailers need to know

what type of functional drinks their customers are looking for, and make sure they always have them in stock. As Justin Whittaker, owner of MJ’s Premier in Royton, Greater Manchester, and Kate Clark, from Sean’s News in Upton upon Severn, Worcestershire, point out, customers will leave your shop empty-handed if your store isn’t stocking the brand of energy drink they’re looking for.

SUPPLIER

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NEW RANGES New ranges and flavours AND FLAVOURS

Matt Gouldsmith, channel director – wholesale, Lucozade Ribena Suntory “RETAILERS shouldn’t forget the importance of flavours within their energy drinks segment. The Lucozade Energy flavours range is growing by 36% year on year, helping to bring new shoppers into the category. Lucozade Energy recently launched a new flavour just in time to capitalise on summer sales: Watermelon & Strawberry Cooler. “In the past year, Lucozade Sport grew by 3.5 million litres in the symbol and independent channel; the largest growth contributed by any sports drink brand. It’s essential, therefore, that the brand’s popular flavours – including bestselling Orange and rapidly-growing Raspberry – are always available for shoppers to pick up in store. “Lucozade Sport is investing £5m into a summer campaign which includes social, digital and out-of-home activity to engage consumers with this leading brand and drive sales for retailers.”

CATEGORY ADVICE FUNCTIONAL DRINKS TRENDS

SUPPLIER

VIEW

GET SUGARFREE COVERED

Mark Bell, strategy and planning manager, Red Bull “WITH the heightened importance placed on the health agenda over the past year and the Soft Drinks Industry Levy in place, consumers are swaying more towards sugar-free options. Therefore, it is imperative that retailers dedicate a higher proportion of space to lowcalorie products. Diet is worth £143m, which equates to 10.7% of the sports and energy category, increasing by 18.2% from 2017. Red Bull Sugarfree has grown by 16.5% to £41.9m, making it the number-one low-calorie sports and energy drink. “Announced in 2018, the extension of the Red Bull Sugarfree range is designed to drive value within the soft drinks category, with the range removing the current taste and health barriers to trial. With more than half of shoppers walking away from a purchase if there is no low-calorie offering, the range of Sugarfree cans in different sizes will encourage more 18-to-34-year-olds, who want to cut down on sugar without giving up on pick-me-ups, to drink Red Bull Sugarfree.”

TOP

TIPS 01

Red Bull’s category development manager, Rich Fisher, shares his top three tips for retailers to improve their energy drinks sales

Allocate 60-70% of space in the soft drinks fixture to sports and energy brands, in line with its share of the category. The top five sports and energy brands are Red Bull, Monster, Lucozade, Relentless and Rockstar.

Focus on vertical blocking

tips

Stock the most effective range to drive the greatest value. Category space should be aligned with share of value sales to maximise sales.

Focus on the top five brands

retailer

Focus on space

Shoppers only see products within a 1.3-metre breadth, so consider how you merchandise sports and energy drinks. Vertical blocking helps shoppers to easily find the product they are looking for, improving their ease of shop.

Justin Whittaker, owner of MJ’s Premier in Royton, Greater Manchester, and Kate Clark, owner of Sean’s New in Upton upon Severn, Worcs, share their expertise on energy drinks

03 04

Make sure you always have the most popular energy drinks in stock Justin: “People really have their favourites, and if you don’t have what they want on the shelf, they won’t take anything else.” Have a strong range of affordable own-brand options Kate: “It’s usually the younger guys on the way to work who pick up the Euro Shopper lines. They’ll pull up in a van and grab cigarettes, chocolate, a paper and a couple of cans of Euro Shopper to start their day.” Keep an eye on the sugar-free and low-sugar trends Justin: “We have a lot of customers who want Monster Ultra sugar-free – whether it’s Ultra White or Ultra Blue – and they won’t buy anything else.” Don’t forget about the premium brands Justin: “It’s mainly the older generation who buy Red Bull, but they’re definitely loyal to that brand.” Kate: “Some people come in specifically for Red Bull and will walk out if we don’t have it.” Consider a dedicated bay for your energy drinks Justin: “We used to have our energy drinks mixed in with the other soft drinks, but we’ve just put together a dedicated bay. It’s an important category and we don’t have a single line in decline, so I want to make it as easy as possible for people to shop.”

4-17 JUNE 2019 betterRetailing.com

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WHO’S BUYING FUNCTIONAL DRINKS?

Paul Gurnell, sales director, Savsé

“HEALTH-CONSCIOUS consumers are the main group buying functional products. For Savsé, our core customer group is 25 years through to late-30s, and typically those who are very conscious of what they’re putting in to their bodies. “They’re not on a crash diet, more so looking to adopt a healthier lifestyle, beginning with their diet “For our 750ml bottles, we have two core markets. The first is the young professional couple who are purchasing items for a weekend brunch or to keep in their fridge to enjoy throughout the week. They’re prepared to pay more for these items thanks to their disposable incomes. “The other core group is the parents who want to select the best products for their families during the weekly shop. We’re seeing that most families purchase cartons or bottled soft juices or smoothies as part of their grocery shops because they are a way of getting a range of fruit and veg into their kids’ diets.”

RED BULL WITH THE TASTE OF COCONUT & BERRY. WITH OR WITHOUT SUGAR.

RETAILER

Q&A

Samantha Coldbeck, Wharfedale Premier, Hull What are your most popular ranges of energy drinks? “Energy drinks are very important for us. They are the biggest seller in our chilled section and they take up over half of our soft drinks fridge. Our shop is in an area with a lot of blue-collar workers, and they’ll often come in for an energy drink to get their energy fix. They need a quick hit of energy, so something like a coffee is too time-consuming. “The big cans are the most popular, things like Relentless and Rockstar, which we sell chilled and ready to drink. We’ll almost always have offers on some of our energy drinks ranges, and we stock them in price-marked packs when we can.”

What’s doing well at the moment? “Sugar-free and low-sugar is doing really well. I think it is a combination of people being more health-conscious, and the sugar tax coming into effect. Our sales of sugar-free and low-sugar energy drinks have more than tripled in the past year.”

What about other functional drinks, such as vitamin drinks? “These are not doing as well as the energy drinks. The kind of area we’re in, people don’t have the time to be too health-conscious. For them, getting energy is more important. “There’s been one big exception, which is Moose Juice, this is really bucking the trend. It has a selection of vitamins in it which are suited for body builders and people going to the gym. That’s doing really well, but it’s really the only one. I think with other functional drinks, such as Purdey’s, the prices are putting people off.”

VITALIZES BODY AND MIND.

For Retailer Use Only

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Cow & Gate Follow On Milk 200ml Winner RTD Formula Category. Survey of 10,399 people by Kantar TNS.

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Important Notice: Breastfeeding is best for babies. Follow-on milk is only for babies over 6 months, as part of a mixed diet and should not be used as a breastmilk substitute before 6 months. We advise that all formula milks including the decision to start weaning should be made on the advice of a doctor, midwife, health visitor, public health nurse, dietitian, pharmacist or other professional responsible for maternal and child care based on baby's individual needs. Cow & Gate Growing Up Milk with Iron to support normal cognitive development. ยน IRI HBA/HH Impulse Value Latest 52 weeks - 20th April 2019

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CATEGORY ADVICE BABYCARE

4-17 JUNE 2019 betterRetailing.com

A GROWING MARKET With the babycare market in growth, it’s more important than ever that retailers stock the right products in the right way, reports TAMARA BIRCH

BIG

ALL CHANGE THE range of babycare products has expanded significantly in the past decade and so have customers’ expectations of their convenience stores, meaning it’s important to carry a range that covers both planned and lastminute purchases. “Convenience retailers who stock the right brands and products have a great opportunity to continue to capitalise on

parents’ growing demand for top-up and on-the-go purchases,” explains Sam Higgins, senior brand manager for Ella’s Kitchen at distributor RH Amar. Parents spend an average of £500 on a baby during the first month, with almost £150 spent on nappies and feeding products. Many retailers are finding success placing their babycare products next to their adult healthcare products, like

RETAILER

VIEW

Meten Lakhani, St Mary’s Supermarket, Southampton “WE sell products we know customers will need at any time of the day, plus that little extra. “As retailers, it’s our job to know our customers and go that extra mile, stocking products customers don’t even know they need until they’ve arrived in your shop. “We stock nappies, baby food, dummies, lotions, oils and shampoo. “Our most popular products are baby wipes and nappies, which offer a margin of 30-40%.”

TRENDS

shower gels and shampoos. Six out of 10 parents with children aged five and under regularly buy grocery shopping at convenience stores, compared with 49% for other shoppers, indicating what a The percentage of babycare substantial opportuspend that goes on food nity the category can be for retailers.

the stat

56%

Gary Elliot, head of category and shopper marketing, Danone Early Life Nutrition “ONE of the biggest trends we’re seeing is that parents want to enjoy the experience of getting to know their little ones, and they are looking for new ways to take out the hassle and give them more time during this important period. As a result of this, convenient formats are seeing growth across the board.”

Three top tips Separate baby food products from others so there’s a clear distinction and ensure you stock an optimal core range in each sub-section: milk, food and cereal. Merchandise products in a logical order for easier navigation, such as grouping baby food jars in ages from four-to-six months to 10 months upwards. Place similar products close together so customers can easily find what they’re looking for within their preferred brand.

Build the most effective range for your store A MUST-READ FOR PROFIT-DRIVEN INDEPENDENT RETAILERS

WHAT TO STOCK

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Alcohol

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Crisps & snacks

Protein

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Free-from

Soft drinks

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Chilled

Ice cream

Vaping

Don’t miss our essential What to Stock guide Compiled using exclusive EPoS data from 3,000 independent stores across the nation and covering 28 core convenience categories. With easy-to-use tools, it’s never been so simple to compare your range, price and profits with retailers just like you.

• A look inside one of the UK’s best-ranged shops • Alcohol, confectionery, soft drinks and tobacco mini-features • All you need to start offering free-from and protein products

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PROFILE

4-17 JUNE 2019 betterRetailing.com

RETAILER PROFILE RAHUL ODEDRA UPTON ST LEONARDS POST OFFICE Location: Upton St Leonards Shop size: 900sq ft Staff: Two full-time, one part-time

‘YOU WON’T FIND THIS STOCK IN OTHER STORES’ DARYL WORTHINGTON RESPONSIBLE for 20% of his store’s trade and bringing in £1,000 a week in business, working with local suppliers has really paid off for Rahul Odedra and his small village shop. The store’s locally-sourced products include meat, eggs, milk and bakery items. “You won’t find these products in any other convenience stores,” he says. The meat comes from a farm shop in the village. “They supply us with fresh meat three times a week to sell in the shop,” explains Rahul. Meanwhile, a local farm provides the shop with eggs and a local bakery delivers fresh bread three times a week. “The fresh bread in particular is really popular with our customers,” he says. Rahul knows the key to success is giving customers the products they want at a good price. One of his standout lines is a range of low-sugar and sugar-free biscuits. “People can’t find these biscuits in supermarkets, so they’re very popular. Usually, sugar-free and gluten-free

products are more expensive, but these are the same price as other biscuits,” he explains. Newspapers are another important category for his store, the most popular titles being the Mail, Times and Telegraph. He operates a paper delivery service for around 100 customers in the area. Although the service is generally straightforward to organise, getting reliable newspaper deliverers is crucial. “Here, the newspaper deliverers are really good. They’re always on time and they give a good service to customers. When recruiting them, you have to give them a chance, to see how they do. You also have to explain to them from the start that the job requires

Why should you care about illegal tobacco?

commitment. It’s not hard work, but they need to be reliable and on time, even if it’s raining or snowing,” he says. Rahul’s store contains the village’s only post office. Although it’s a great footfall driver, his challenge is to make sure post office customers also buy other products from his store. He finds the best way to do this is by talking to his customers, telling

IF YOU DON’T SPEAK TO YOUR CUSTOMERS, THEY JUST WALK OUT THE DOOR

them what is available, and asking them what they’d like to see stocked. For example, customers told Rahul they’d like to see an increase in his wine range, which led to a big success recently with Laithwaite’s wines. “Laithwaite’s has a warehouse near our shop, so I went there and asked if they’d like to supply our store. They agreed,” he says. “You can usually only find them in restaurants. One of my customers told me that a glass of some of these wines would cost £5 in a restaurant, but we can sell it for £8 a bottle.” Through talking to his customers, he has also learnt lessons about the category that have improved his service even more. “Sometimes, customers will talk to me about the wine they’re buying. I listen to them, and I can share that information with another customer when they’re asking me for a wine recommendation. Communication is vital.”

to your customers 1 Speak “I’ll tell them about the other things we sell in the store, and they’re often surprised at the ranges we have,” says Rahul. “If you don’t speak to your customers, they just walk out the door.” for local opportunities 2 Look

“We stock a lot of things from farm shops that people don’t expect to see in their local stores. These products are always very popular,” Rahul explains.

To see more photos of Rahul’s store, go to betterRetailing.com/ upton-st-leonards-post-office

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out what your customers need 3 Find

“A lot of our customers are retired people. They’d like to be able to come in every day to buy their newspapers, but they can’t. That’s why we tell them about our newspaper delivery service – it really helps them.”

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