Retail Express - 8 September 2020

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BEHIND THE BOOZE BOOM

• Alcohol sales and new licence applications soar • Experts reveal how to develop your off-trade offering while staying within the law

8-21 SEPTEMBER 2020 STRICTLY FOR TRADE USERS ONLY

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CARD FRAUD WARNING

COVID-19 TENANT COVID-19 TENANTPROTECTION PROTECTION

NEXT-GEN NICOTINE

Retailers targeted in new wave of mobile phone top-up scams by criminals

Expert warns indies have less than a month to strike rent payment deal with landlords

The latest trends and opportunities you need to know to boost vape sales

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P20-25


MADE IN ENGLAND’S OLDEST WORKING GIN DISTILLERY

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DELIVERING SUCCESS Three retailers explain how to make home delivery profitable long-term in your store

BACK PAGE

8-21 SEPTEMBER 2020 STRICTLY FOR TRADE USERS ONLY

BEHIND THE BOOZE BOOM • Alcohol sales and new licence applications soar • Experts reveal how to develop your off-trade offering while staying within the law

CARD FRAUD WARNING

COVID-19 TENANT PROTECTION

NEXT-GEN NICOTINE

Retailers targeted in new wave of mobile phone top-up scams by criminals

Expert warns indies have less than a month to strike rent payment deal with landlords

The latest trends and opportunities you need to know to boost vape sales

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P4

P20-25

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our say

Megan Humphrey, editor

All good things must come to an end THE way in which the UK government handled the Covid-19 pandemic will continue to remain a heavily debated topic. Although my own views on the matter are constantly changing, I’ve always championed the schemes rolled out to protect businesses. In my opinion, our furlough system was one of the best in the world. But as the saying goes, all good things must come to an end. As we enter autumn, the deadlines placed on a lot of the initiatives are now upon us. Take tenant protection, for example. This was extended by the government in July, under the Coronavirus Act, to ensure no landlord could unlawfully evict a tenant for failing to pay rent until 30 September. Although many businesses have been grateful for the much-needed breathing space, there is now growing concern over what will happen once the deadline passes. How many businesses are going to be forced to close? How quickly IF YOU ARE will bailiffs demand money? STRUGGLING TO Although we don’t know the answers to these questions just PAY YOUR RENT, yet, finance specialist Barry Frost SPEAK TO YOUR has urged all retailers to contact their landlord now to attempt to LANDLORD negotiate a deal. As more deadlines approach between now and the end of the year, we will be sure to advise you, when we can, on how to continue protecting your business. But, for now, if there is anything you need our urgent help or advice on, please don’t hesitate to get in touch with me, or anyone on the team.

The five biggest stories this fortnight 01

Retailers urged to be vigilant over top-up fraud

ALEX YAU INDEPENDENT retailers have been warned about mobile phone top-up scams where criminals make fraudulent transactions of £50 or more. A message sent by The Retail Data Partnership (TRDP) to retailers warned of fraudsters pretending to be from legitimate companies. The warning read: “This involves individuals requesting that you put through electronic

top-ups on your tills as ‘tests’. These lead to large, fraudulent transactions valued at £50 and over being put through your tills.” TRDP urged retailers to refuse the transactions if they were suspicious for any reason. The scam comes as retailers across Scotland recently became victims of card fraud, where fake cards are used to make high-value purchases, leading to stock losses. Sayiad Hamid, of Day-Today

Bourtree Hill, told Retail Express: “A group came in to buy high-value items such as Cîroc. The card had to be signed for. It’s about training staff to be aware and putting a limit on signed purchases.” Ferhan Ashiq, of Day-Today Ashiqs in Prestonpans, lost

£400 to the same scam in February. “The gang acted as what can be described as charming,” he said. “Two distracted staff while the other was conducting the fake transaction. Don’t accept transactions of £20 or more that have to be signed.”

FOR MORE ON HOW TO APPROACH YOUR LANDLORD, HEAD TO PAGE 4 @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 3357 Features editor Daryl Worthington @DarylNewtrade 020 7689 3390 Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361 Editor in chief (maternity cover) Tan Parsons 020 7689 3353 Production editor Ryan Cooper 020 7689 3354 Sub editor Jim Findlay 020 7689 3373 Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380

Editor – news Jack Courtez @JackCourtez 020 7689 3371 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355 News reporter Katherine Plummer @NewtradeKate 020 7689 3395 Production coordinator Nadeem Masood 020 7689 3368 Director of sales and marketing Matthew Oliver 020 7689 3367 Senior account director Charlotte Jesson 020 7689 3389 Senior account manager Natalie Reeve 020 7689 3372

Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379 Senior news reporter Alex Yau @AlexYau_ 020 7689 3358 Digital content editor Jody Porter 020 7689 3378

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

Pernod rep deal

PERNOD Ricard is to boost its UK rep presence in convenience stores through a new partnership with field marketing firm McCurrach. The drinks giant will station in-store reps at 1,800 convenience sites, while the

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Tobacco legislation

remaining 96% of the con- ANALYSIS has revealed that venience market will be able a large number of independto access offers and category ent stores broke menthol and advice via McCurrach’s My- track-and-trace regulations. Store+ app. The partnership Retail Express’s sister title, will also provide rep visits on RN, analysed PayPoint’s EPoS behalf of Pernod Ricard to the data for the lockdown period. wider grocery retail market. It found a typical shop was

still selling, on average, 20 illegal packs per day in June and 7.3 non-compliant packs per day in July. The menthol ban came into force on 20 May. Overall, compliance with the track-and-trace law was lower than with menthol lines.

Account manager (new business) Jimli Barua 020 7689 3364 Sales support executive Michela Marino 020 7689 3382 Management accountant Abigayle Sylvane 020 7689 3383 Managing director Parin Gohil 020 7689 3375

Account manager Adelice Tatham 020 7689 3366

Subscribe online at newtrade.co.uk/our-products/ print/retail-express. 1 year subscription: UK £65; overseas (EU) £75; overseas (non-EU) £85

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46,191

Audit Bureau of Circulations July 2019 to June 2020 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 Media Limited 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.

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New recruitment

RETAILERS have received increased job applications from former office workers. Store owners told Retail Express the increase had been driven by redundancies as a result of the Covid-19 pandemic.

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Co-op value own label

Explaining how to retain CO-OP is to launch a value Bal Singh, of Nisa Local Great these staff members, retail own-label range to cater to re- Barr in Birmingham, said: expert David Gilroy said: “You cent shopping trends driven by “This is definitely something that needs to happen. People’s need to challenge them intel- the pandemic. lectually. Retail is very physiRetail Express’s sister title, shopping habits have changed cal, but give them responsibil- RN, found trademarks for the with Covid-19. There are hard ity in marketing the shop or ‘Honest Value’ range at the end times ahead and a new value improving your overheads.” of July. Welcoming the range, range is very timely.”


@retailexpress facebook.com/betterRetailing

8-21 SEPTEMBER 2020 betterRetailing.com

megan.humphrey@newtrade.co.uk 020 7689 3357

GOOD WEEK

Indies capitalise on growing booze demand MEGAN HUMPHREY EXPERTS reported a surge in new alcohol licence applications during the pandemic from retailers looking to capitalise on rising demand for alcohol lines. Newly released EpoS data from PayPoint showed how alcohol saw the biggest shift in sales during the lockdown period. The category more than doubled its representation in the top 100 lines sold in local shops, rising from seven pre-Covid to 16 in July.

Paul Neades, co-founder of licensing specialists The Licensing Guys, told Retail Express the trend was also down to more shops adding an off-trade section. “There’s de�initely been strong demand for new alcohol licence applications during lockdown as independent stores seek to better serve local needs as people shop more locally,” he said. “Alcohol and grocery ranges seem to be growing and often becoming more bespoke to the local area.” The closure of the on-

trade has also affected how alcohol is sold in the off-trade. Barnes Londis in London is one of several stores to have added a draft beer machine to attract pub-goers, giving margins of up to 35%. Asked how he ensured compliance to his licence, shop owner Sonny Siani told Retail Express: “Each pint cup came with a cap, and customers were only allowed to start drinking once they left the premises.” Where alcohol is sold in store is also changing

as some shop owners reported changing layout to facilitate social distancing. However, Neades warned �loorplan changes could represent a breach of their alcohol licences. “When we submit a licence, we include the whole shop �loor as being authorised for the sale of alcohol, but there will be many shops where that isn’t the case,” he said. “If people are moving around shop elements to facilitate distancing, they should check their alcohol licence �loorplan �irst.”

LEGISLATION: The 10p plastic bag charge will apply to all stores from April, regardless of size or business type. ACS chief executive James Lowman said: “A universal charge will ensure that there is no confusion about which stores do and don’t have to take part, and is a popular measure with retailers.” PPE: Independent shops are to receive free face-mask vending machines from Maskey. Founder Adam Freeman said the new deal with Nisa retailers offers 15% commission on sales made through the machines. With units in locations such as Hamleys toy store, Freeman claimed some businesses are making £5,000 commission a month. Go to betterRetailing.com and search ‘Maskey’ for the full story Retailers installed draft beer kegs during Covid-19 to attract new customers

POST-PANDEMIC How many convenience, newsagent or forecourt (CNF) stores are yet to reopen?

964

2.5%

CNF sites yet to reopen

Total share of the CNF estate yet to reopen

64

1/3

CNF sites reopened between mid-July and mid-August

Fraction of CNF sites yet to reopen

express yourself I THINK it’s going to be business as usual. As we have lots of elderly people coming into the shop, it’s important we stress proper social distancing and hygiene measures when the kids are coming into the shop. We’ve had a one-way system in place since March and we’ll keep this, as our customers have gotten used to it. Masks are also important, and we’ll continue stressing the importance to our staff of ensuring everyone has the appropriate face coverings. Sam Coldbeck, Wharfedale Premier, Hull

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BAD WEEK CADBURY: Tesco and Booker-supplied stores received exclusive initial access to Mondelez’s latest Cadbury Dairy Milk Orange Buttons and Orange Fingers launches, leading to frustration from rival symbol group retailers. One Costcutter retailer told Retail Express’s sister title, RN: “I’ve had confirmation they’ll have a one-month head start from launch. It’s unfair.” PARCELS: UPS is to make retailers on its Access Point click & collect network foot the bill of their own smartphone device, according to store owners. Retailers claimed the firm had told them it is to switch off its current 3G-based parcel-booking devices this year, without offering a replacement device. Retailer Julia Bywater said it was impractical for staff to use their own devices and uneconomical to purchase a device just to operate the service. Go to betterRetailing.com and search ‘UPS’ for the full story

the column where you can make your voice heard

Will Covid-19 affect your back-to-school sales?

OUR sales were down because of the pandemic, but we’re looking forward to seeing them increase again with the return of the school pupils. They are all returning through a phased approach. We will be looking at running more promotions in store. Booker has started doing promotions again on products such as soft drinks, which will help with sales. They limited promotions temporarily to ensure they could maintain availability during the pandemic. Kiru Nadarajah, Everydays, Hampton, London

THE schools are staggering their return dates. Secondary school students will go back first. I’ve got a couple of paperboys, so that will impact on newspaper deliveries. Due to social distancing, I’ll have to make sure we’re on top of how many kids are in the shop at any time. I’ll need to make sure I’ve got enough staff on shift to manage this. Another area that is important is making sure the pupils don’t spend too much time in the shop. Mike Mitchelson, Brampton Post Office, Cumbria

Do you have an issue to discuss with other retailers? Call 020 7689 3357 or email megan.humphrey@newtrade.co.uk

Mike Mitchelson


NEWS

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8-21 SEPTEMBER 2020 betterRetailing.com

‘Struggling stores must act now’ MEGAN HUMPHREY STRUGGLING store owners have less than a month to negotiate a rent payment deal with their landlords, finance specialist Barry Frost has warned. The comments were made after the government extended the time period for the suspension of evictions by landlords from 30 June to 30 September, back in July

under The Coronavirus Act. Commercial Plus owner Frost has urged business owners who are in rent arrears to contact their landlords immediately. He told Retail Express: “Retailers who have not been able to pay their rent should not leave it until the last day of the month to contact their landlord. “They need to get in touch with them urgently and try to

strike a deal to help them going forward. They have to at least ask.” Frost, who has been negotiating with landlords on behalf of stores, has predicted “bedlam” once the deadline passes. “The worst-case scenario is that landlords send bailiffs straight in,” he said. “It will be bedlam, but eventually the government will have to step in.”

However, Frost warned of added “danger” next April when business rates resume. “This will show us just how many businesses have truly been impacted by the coronavirus,” he added. If you are in need of free advice on how to approach your landlord, call Barry Frost on 01244 659 101

C-stores cut out of Deliveroo dine-in DELIVERY giant Deliveroo has excluded convenience stores from its latest ‘Eat In to Help Out’ promotional offer. The offer gives customers who purchase from 16,000 partnered restaurants £5 off orders of more than £20 on Monday to Wednesday throughout September. A Deliveroo spokesperson confirmed the news to Retail Express’ sister title, RN. It follows the government’s ‘Eat Out to Help Out’ scheme, which offered discounts of up to £10 per person on dine-in

meals on Monday to Wednesday throughout August.

NEW ‘MUST BE WON’ DRAW

RETAILERS have the opportunity to boost their sales by over 30% in Camelot’s new Lotto £20m ‘Must Be Won’ draw. From 7 November, for the first time ever, a cash prize of £5 is up for grabs for nearly a million players who match two main Lotto numbers. Commercial director Neil Brocklehurst told retailers to expect more positivity and footfall around the draws

going forward. He added that two new EuroMillions draws are also expected to follow.

‘Use tech to offset Covid-19 pressure’

FOR FajIta FrIday ©2020 General Mills *Nielsen Panel – KPI – Data to 25.07.2020 **CGI World Foods U&A 2020

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21/08/2020 11:26

EX Booker and Iceland boss Bill Grimsey has warned struggling stores to capitalise on technology and seasonality to reduce the impact of the coronavirus. He told Retail Express that the pandemic “accelerated what was an existing trend”. He explained: “There are examples of businesses who were encouraged to use technology to help them, and convenience stores must do the same. In a town called Southwell near Nottingham, one business was offering online baking classes.”


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PRODUCTS Turn home into your club’s end COCA-COLA Great Britain’s ‘Make your home the home end’ campaign will encourage people to turn their homes into their club’s ‘home end’ when the 2020/21 Premier League season starts. The campaign, which features famous faces including Marcus Rashford, Harry Kane, Alex OxladeChamberlain, Alex Scott and Jermaine Jenas, will span

radio, digital and outdoor advertising, including a partnership with Sky. The players will feature in a number of films, appearing in the homes of fans watching Premier League games. As part of the campaign, Coca-Cola has launched an on-pack promotion across Coca-Cola Original Taste and Coca-Cola Zero Sugar, which offers consumers the chance to win their Premier League team’s new shirt every week.

JOHNNIE Walker has unveiled three limited-edition bottles to celebrate its 200th anniversary. The bottles will be available across Red Label, Black Label and Gold Label Reserve varieties, with an RRP of £23.99 to £48.49. The whiskies inside the bottles remain unchanged. Black Label will be available from all wholesalers, while Red Label will be available to retailers from Spar, Booker and Costco. Gold Label Re-

serve will only be available to retailers from Costco. “This striking new design is sure to stand-out on shelf and appeal to both enthusiasts and those who are new to the Scotch scene,” said Ali Reynolds, brand ambassador at Johnnie Walker. “The new bottles also make an ideal option for gifts as we showcase the innovative brand ethos and open the doors to a new generation of whisky drinkers.”

PRIYANKA JETHWA

8-21 SEPTEMBER 2020 betterRetailing.com

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Henri Wintermans gets fancy makeover SCANDINAVIAN Tobacco Group UK is launching limited-edition UK-themed packs for its Henri Wintermans Half Corona cigars, which have an RRP of £11.45. The pack features a ‘dressed up’ Mr Wintermans, with a top hat, umbrella

and bow tie with a Union Jack design. The brand is the UK’s bestselling medium and large cigar, having increased its volume share from 71.8% to 76% in the sub-category. It has an annual sales value of just under £15m.

Johnnie Walker marks 200th anniversary

Planning your new working environment? COVID-19 has undoubtedly affected us all, so getting your business up and running safely is the number one priority. We’ve successfully operated throughout the pandemic and are on hand to help give you the best advice and support to ensure your working environment is safe and ready to trade.

Email: businessservices@bigdug.co.uk

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PRODUCTS

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Cocktails at home this Christmas PRIYANKA JETHWA PERNOD Ricard UK is encouraging convenience retailers to focus on shoppers making cocktails at home, alongside gin, vodka, whiskey and wine, to grow sales this Christmas. According to the supplier, 43% of consumers claim to have attempted making cocktails at home during lockdown.

This has led to more people experimenting with drinks, with a slight bias towards cocktails with fewer ingredients. One of the most popular cocktails has been Piña Colada, which has led to sales of Malibu increasing by 89% in value. Elsewhere, gin has experienced double-digit growth in the past 12 weeks. Beefeater, for example, is growing at

96.5%, while Plymouth experienced 33.6% growth in value during the lockdown period. Meanwhile, vodka is now the second-biggest value contributor in spirits after flavoured gin, worth £45.9m. Within this, Absolut is the fastest-growing vodka brand and commands the biggest share in the premium vodka category.

Irish whiskey is now the second-fastest-growing category behind gin, with Jameson leading the growth in value by 22.1%. Finally, wine has had a 27% growth in value during the pandemic. To read more, go to betterRetailing.com and search Pernod Ricard UK Christmas 2020’

Big night in with Butterkist popcorn KP Snacks has announced a Butterkist ‘Ultimate movie night’ promotion in partnership with Now TV, running from now until 31 November. The promotion will be available across the entire Butterkist range, including sharing bags, £1 price-marked packs and multipacks. There are 10 prizes up for grabs, including a TV, entertainment system and a 12-month Now TV Sky Cinema Pass. Matt Collins, trading director at KP Snacks, said: “In recent months, there has been an increase in savoury

snacking, with crisps, snacks and nuts showing up in 70% more convenience baskets during lockdown.”

REPUBLIC Technologies is extending its Zig-Zag lighter range with three new additions. Utility Lighters, Kitchen Lighters and Candle Lighters, all with an RRP of £1, are designed to help retailers make the most of cross-category sales and offer shoppers more choice. Gavin Anderson, general sales manager at Republic Technologies, said each product comes in five colours and is available in shelf-ready

packaging to increase visibility with a standout display. He suggested retailers dualsite each range with related categories to drive sales and encourage impulse purchases.

RUNNING until 15 November, Mondelez International has unveiled details of this year’s ‘Match & win’ promotion. For the fourth consecutive year, the supplier has partnered with Premier League teams, including Liverpool, Manchester United, Manchester City, Arsenal, Chelsea and Tottenham Hotspur, to give shoppers a chance to win 10 pairs of VIP tickets and 500

pairs of match tickets. The on-pack promotion will run across Cadbury singles, multipacks and sharing bags, including Twirl, Wispa, Crunchie and Double Decker.

Zig-Zag lighters extends its range

‘Match & win’ promo returns for fourth year


8-21 SEPTEMBER 2020 betterRetailing.com

McVitie’s launches a new brownie range

Pladis unveils Christmas 2020 range with five new lines PLADIS is adding �ive new lines to its McVitie’s Christmas range to help retailers tap into seasonal trends, with premium, sharing and gifts in mind. The new range includes McVitie’s Christmas Pudding Milk Chocolate Digestives and Gingerbread Milk Chocolate Digestives, available in 250g formats with an RRP of £1.50. McVitie’s Jaffa Cakes Orange & Cranberry will be

available in a 125g pack with an RRP of £1.20. It contains the same ingredients as regular Jaffa Cakes, but with an orange & cranberry jelly in the centre. The new �lavour is designed to drive sales among the brand’s loyal base – with 31% of UK households claiming Jaffa Cakes is a must-stock – and among younger shoppers looking to try new �lavours.

MONDELEZ International has launched Cadbury Wispa Gold Duo to help retailers drive sharing confectionery sales. The new format is available from all major wholesalers now and has an RRP of 85p, in line with the rest of the Cadbury Duo range.

The supplier said Cadbury Wispa Gold is growing at 4% year on year, with Wispa the third-biggest brand within the Cadbury range after Cadbury Dairy Milk and Cadbury Twirl, and caramel the fourth-most-popular �lavour in the chocolate category.

Cadbury Wispa Gold now in Duo range

Aiming to offer variety and tapping into the gift category, McVitie’s Jaffa Cakes Christmas Present, with an RRP of £3, contains 20 original and 20 seasonal Jaffa Cakes. Finally, to encourage trade up and celebrate more than 180 years of the brand, Pladis is launching a McVitie’s Heritage Tin with an RRP of £8, containing a selection of 28 biscuits.

PLADIS has launched McVitie’s Moments Brownies, available in individually wrapped packs of �ive from major wholesalers. With an RRP of £1.85, McVitie’s Moments Brownies are available in two �lavours: Double Choc Fudge and Creamy White Choc. The Double Choc Fudge �lavour is a chocolate

brownie topped with milk chocolate ganache, while the Creamy White Choc �lavour is topped with white chocolate cream. Cake bars have continued to drive growth for the prepacked cake category by 24% over the past two years. They are now bought by one in three British households.

Mentos turns to interactive promo MENTOS has launched a new interactive on-pack promotion, designed to get consumers to share pictures of the packs online. The brand will be encouraging shoppers to take a sel�ie of themselves with their favourite Mentos roll or multipack, and share the photo on Facebook and

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Instagram using the hashtag #Mentosmeandyou. Those who take part will be in with a chance of winning a range of prizes throughout the year. The prizes include limited-edition boxes of Mentos, including some �lavours that are not currently available in the UK.

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OPINION

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DON’T MISS THE 18 SEPTEMBER ISSUE OF RN

RETAILER OPINION ON THIS FORTNIGHT’S HOT TOPICS

What do you think? Call Retail Express on 020 7689 3357 for the chance to be featured CO-OP: Will its new ‘Honest Value’ range be popular? “A CO-OP value own-label range along the lines of ‘Honest Value’ would be amazing and perfect for our shoppers. We stock quite a lot of value options – for instance, on baked beans we do Heinz and Co-op. The Co-op range is even more of a value offer than PMPs.” Sarah Nandhra, Nisa Local Cross Lane, Leeds

PLUS

UPS: Should stores have to fork out for new devices?

How to make your store the first choice for quick and convenient evening meal options THE LEADING TITLE FOR NEWS AND CONVENIENCE RETAILERS THE LE ADING ERS TITLE RETAIL FOR NE IENCE NVEN WS AN CO D D CONV S AN ENIENC R NEW FO E E RETA TL ILERS ING TI AD LE THE

Outside the box Four new ideas retailers have taken from different industries to improve their stores

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“WE do sell loads of own label and PMPs in the shop, but we are trying to move away from PMPs because the value is not there in that range. I would certainly be interested in looking at an ‘Honest Value’ range depending on what the price points will be for our customers.”

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The best independent retailers stay ahead by reading RN each week. Do you?

They should provide the devices to us

Julie Bywater, Bywater News, Dudley

“THEY should provide the devices to us. The commission is not that much, so it will take a very long time to recoup the cost of the device, which we will no longer receive for free. We get an average of between six and 10 customers in the store per day, but it has been very quiet recently.” Mita Patel, Sarwal’s News, Surrey

BACK TO SCHOOL: How has the return of students impacted your store? “MY newspaper sales increased during lockdown, but I’ve taken on an extra paperboy. It spreads the delivery stops and ensures my newspapers are delivered on time. It costs more, but these costs have been offset by the increase in sales over the last few months.” Dipak Shah, H&R News, Camberley

“BACK to school is always good because it means extra sales from pupils and parents. Whether the pandemic will have an impact on how they come into store is to be seen. As a parent myself, I do have my concerns, but we’re just going to have to wait and see what will happen.” Jai Singh, MJ’s Go Local Extra, Sheffield

It means extra sales from pupils and parents NISA: Is the £30 nominal fee for Stoneleigh still acceptable?

ORDER YOUR COPY from your news wholesaler today or contact Kate Daw on 020 3871 6490 TO ADVERTISE in RN, please contact Matthew Oliver on 020 7689 3367

“AS a retailer for nearly 30 years, and one of the original pilot Access Points, I was totally dismayed with UPS’ total disregard for the needs of their customers, when they have announced that we are to foot the bill of their essential equipment for use in our stores.”

I know costs to run an online session are lower

“I CAN understand paying it when Stoneleigh was a physical event, but it’s being held online and I know the costs to run an online session are significantly lower. I was told previously the fee was to cover lunch, but that shouldn’t be the case if it’s no longer physical.” Anonymous retailer

“THEY have changed what was a great conference and key part of the year to meet suppliers, retailers and see loads of new products. What do they need the £30 nominal fee for now as the conference is being held online instead of in-person at Stoneleigh?” Anonymous retailer


LETTERS

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11

of CHRISTINE Hopes Longtown, HOPE Hereford

Letters may be edited

New recruits mean we’re looking to the future again

‘Retailers can’t overlook sorting out their pension’ Retailers spend all their hours working hard putting money into their tills and dealing with newspaper wholesaler problems, but they sometimes forget what all that effort is for. Some are reaching an age of retirement now and need to consider whether they’ve thought about their national

pension or will. It is easy to overlook these things, but this is something you should never do. Speak to your accountant and see if there are any years of missed pension payments. There are instances of husband-and-wife teams where the husband has paid all the national insurance. He passes away, but the wife doesn’t get

anything because of that. Another important area to look at is inheritance. Does the retailer know what to do when drawing up a will, or do they want to leave it in the hands of the government? These are all important decisions which should be examined. Retailers are opening early and closing late. They’re earn-

ing money, looking at pro�it margins and examining end-ofyear accounts. But remember what you’re doing it for. You’re doing it all for your retirement, pension and your children. The money is all going towards helping your future.

Alpesh Patel, Wheathampstead Post Of�ice, Hertfordshire

COMMUNITY RETAILER

OF THE WEEK

Mo Razzaq – @morazzaq

WIN £50 worth of Lost ‘I hosted an online the Pot block noodles gin cocktail class’

RETAIL Express has teamed up with Pot Noodle to give five retailers the chance to win £50-worth of stock of its new Lost the Pot block noodles. The prize will include a trio of flavours, including Roast Chicken, Curry and Sweet Chilli, the perfect dinner solution for families.

TO ENTER Fill in your details at:

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

BECAUSE of coronavirus, Maggies – a charity that supports people living with cancer – is receiving fewer funds. We wanted to do our bit, but it is hard when people are not supposed to congregate. Because I have worked with them before, Maggies asked me to host and organise an online gin cocktail-making class. We believe supporting Maggies is more valuable than ever now because of lockdown. As retailers, it is important to get involved as part of the community and look at where issues are and see if we can do anything towards them. Things like this go a long way in making customers sympathise with us, too.

SINCE my last column we’ve had to bite the bullet and recruit. Me and the team have been working super hard over the last few months, but to protect ourselves and ultimately keep the business sustainable we needed some extra pairs of hands so we could all get back to working normal hours. In an ideal world, we would have started this Each issue, one of seven top recruitment process retailers shares advice to months ago, make your store magnificent but the ongoing uncertainty of Covid-19, and not wanting to upset our balance at such a challenging time, meant we just couldn’t do it. We follow a simple recruiting process in our store. We advertise in three main places: the newsletter for the local church, a poster in the store window, and we also post about it on social media channels – this is really effective as we can ask people to tag others they know who are looking for a job. Being in such a rural location, I always worry that we won’t get any applicants, but we got a good response this time. When it comes to the interview, we have a scoring template for the questions we ask, and we’ll offer the job to the highest-scoring individual. In the interests of transparency, we always encourage applicants to ask for feedback, and the template means we can honestly tell them where they lost marks. We verbally offer the role and have a two-hour paid induction/trial to ensure the job is what they expected. We then have a written induction process which we work through together with them. On-the-job training covers all the usual suspects of manual handling confidentiality, GDPR and smiling to customers. This time we took on two new starters, and three weeks in they’ve proven total assets to the team. To be honest, I’m kicking myself for not starting the recruitment process sooner, but that’s a valuable lesson for the future. Having the new team members has given us all a new optimism. It’s allowed us to catch up on certain tasks that we’d neglected due to more urgent priorities – things like defrosting freezers and cleaning light fittings. What’s more, it means we’re able to think about the future again. I’m looking forward to developing together with my newlook team for 2021, knowing that we will be able to react and learn side-by-side this winter.

Get in touch

@retailexpress betterRetailing.com facebook.com/betterRetailing megan.humphrey@newtrade.co.uk 020 7689 3357


IAA RETAIL STUDY DAY

12

ONE MONTH ON: WHAT DID YOU LEARN? Last month, the Independent Achievers Academy (IAA) visited 2019 Overall Best Shop Nisa Local High Heath, where owner Amrit Singh and his family shared ideas, insight and strategies for success. Retail Express catches up with IAA partners and retailers who attended to discover the lessons they took from the day

THE RETAIL STUDY DAY: AMRIT’S STORE THE Independent Achievers Academy (IAA) visited 2019 Overall Best Shop Nisa Local High Heath in Walsall last month as part of its first-ever virtual Retail Study Day. Owner Amrit Singh discussed his most recent refit, as well as the lessons he learned. “It was insightful seeing what changes Amrit and his family made, and then understand why,” explains Vince Malone, from Tenby Stores & Post Office (Premier Express) in Pembrokeshire. “We realised the importance of trying something new and we’re now applying this in our own decision-making.” Amrit and his family recently underwent one of the industry’s first refits during the coronavirus lockdown. Amrit upgraded his chillers, alcohol display and turned what he says was a “dead space” into a profitable area. He also contin-

ued to engage the community with a raft of support. “Amrit’s dad Harjit Singh’s work with the High Heath Hub and the community really stood

out for me,” says Raaj Chandarana, from Tara’s Londis in High Wycombe, Buckinghamshire. “The community testimonials showed how much they’re

MARKETING TO CUSTOMERS valued in the community.” One month on, we catch up with IAA partners and retailers to find out what they learned from the day.

Michael Kennedy, category executive, Lucozade Ribena Suntory “It’s clear from the minute you step into Amrit’s shop that the layout puts the customer at the heart of the experience. From petcare to fresh produce, every element takes key shopper missions into consideration – both new behaviours due to Covid-19 and long-standing convenience trends. The digital screens at the fresh section sharing product information and Amrit’s social channels promoting NPD are great examples of customer marketing to help to create sales opportunities.”

CUSTOMER SERVICE Nigel Parry, retail operations manager, Post Office “Amrit’s changes to layout and ranging are viewed in the context of customer needs, as well as the business bottom line. Take a scientific approach by testing new ideas and getting customer feedback before making big spending decisions. Delivering customer service should be a team activity, so encourage innovative ideas – and don’t forget members of your family. View your store through your customers’ eyes to make sure you’re not missing anything obvious; even small changes can make a big difference.”


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EFFECTIVE RANGING Heidi Vossen-Barnes, senior manager, convenience & wholesale, Coca-Cola European Partners “Amrit’s approach to expanding his chilled range outlined some great advice for other retailers. To avoid unnecessary waste, his advice was to expand each section at a time to see what sells before jumping into a completely new and expanded planogram. His stocking of ready meals by a local supplier also gives his store a point of difference, which is something other retailers could do across numerous categories in store.”

AVAILABILITY Lauren George, brand & trade PR manager, Mars Wrigley “I was impressed by Amrit’s monitoring of segment performance across the store and priority for popular lines. As shopper habits evolve, it’s crucial to dedicate more space and increased availability to better-performing products. This is key to boost impulse purchases, as well as driving overall awareness of NPD – a core driver of confectionery category sales. It also demonstrates to shoppers that Amrit not only understands what they want, but also puts their needs first in store.”

IN-STORE DISPLAY Susan Nash, trade communications manager, Mondelez International “Amrit keeps his confectionery gifts range flexible so he can adapt his display to suit seasons, such as Christmas and Easter, and mini occasions like Mother’s Day and Father’s Day. This approach shows an advanced understanding of how changing in-store displays to suit changing shopper occasions creates a greater commercial return. Chocolate is the top choice for gifts for many occasions through the year and consumers are prepared to spend more than when purchasing for themselves*.”

RESPONSIBLE RETAILING Sarah Connor, communications manager, JTI UK “Following the recent Retail Study Day, it was great to receive a masterclass from an award-winning independent store on how independent retailers can respond to the current pandemic in an innovative and customer-focused way. With the development of their duty-free style vaping area, it was good to see that they are as focused as ever on ensuring that robust age-verification procedures take place for all vaping products sold.”

STAFF DEVELOPMENT Chiara Ferri, retailer engagement executive, British American Tobacco UK & Ireland “Amrit Singh clearly explained why staff satisfaction is important: it leads to a positive ambience at the workplace and employees accept challenges with a big smile and deliver even in the worst of circumstances. Passion comes when employees are satisfied with their job and organisation on the whole. Showing that the employer cares, listens and acts upon the things that really matter to employees will maintain high motivation and loyalty to the workplace.”

ENVIRONMENTAL SUSTAINABILITY

*Mintel (MDLZ Christmas Demand Spaces 17+18 Comparison vs Chocolate for Sharing)

Ruth Forbes, head of responsible business projects, JTI UK “Amrit’s store is clearly at the heart of the community and it was great to see how he gets involved in local environmental action. With ‘Environmental Sustainability’ being a new category this year, there were also some key learnings for retailers, particularly around store refits and the importance of making considerations for energy-efficient equipment when doing so. It’s clear that there’s huge potential for independent stores to lead by example and take sustainability seriously.”

To watch the video or to get involved with this year’s benchmarking process to find out how you can improve your store, call the IAA on 020 7689 0500

RETAILER

VIEWS

Aman Uppal, One Stop Mount Nod, Coventry

“Amrit’s store looks fantastic and he’s raised the bar again with his most recent refit. Amrit’s honesty about what has and hasn’t worked well for him was also very refreshing. Their involvement in the community is admirable and what they’ve done with the Hub is amazing. I’m a firm believer that all retailers should invest in their communities, so it was great to see Amrit and his family’s work with this.”

Ferhan Ashiq, Day-Today Ashiqs, Prestonpans, East Lothian

“Amrit’s store is well-designed and has utilised the space well. I personally liked that he consistently reviews his range to offer his customers a choice. His cake display, for example, is always changing and he’s currently trialling celebration cakes in store and always looking for something new. Amrit has a fantastic range and has thought about his customers in the process.”

Raaj Chandarana, Tara’s Londis, High Wycombe, Buckinghamshire “Amrit’s approach to merchandising is great. He understands his customers, and how to cater for the demand for new products by merchandising them effectively across the store. For me, the most valuable part of the day was Amrit and his family’s approach to their community – their involvement isn’t something that can be taught. The testimonials showed just how much they’re needed in the area.”


CATEGORY ADVICE CHRISTMAS CONFECTIONERY

14

SEASONAL TREATS Christmas is an important sales opportunity for convenience retailers, but what confectionery trends are suppliers expecting to dominate the season this year? TAMARA BIRCH finds out

HOW SHOPPER FESTIVE HABITS WILL CHANGE THE Covid-19 pandemic has changed shopper buying habits across multiple categories, and, according to suppliers, Christmas trends are likely to change, too. Research carried out by Ferrero and KAM Media found that 71% of retailers remain optimistic about the seasonal period and believe shoppers will continue to support their local stores by spending the same or more on seasonal products as a result of lockdown. Andrew Mutton, managing director at Storck UK, agrees, and

says shoppers are more likely to buy gifts and sharing lines from their local convenience stores. “As a result of shoppers turning to their local convenience stores for their main and top-up shops, the convenience channel has grown by 8% in sales this year,” he says. The report concluded that social distancing measures have made shoppers more sentimental and appreciative of their loved ones. As a result, Fererro and other suppliers are expecting to see increased acts of kindness and gifts as

shoppers look to add more joy at Christmas. Mutton says: “This means that in the lead-up to Christmas, more people are likely to turn to their local stores for seasonal treats and confectionery gifts.” Despite the uncertainty, Levi Boorer, customer development director at Ferrero, says retailers remain undeterred in their processes, with 50% planning their seasonal offering up to two months in advance. “It’s therefore even more important that retailers ensure they are stocking a strong core

range to appeal to shoppers throughout the autumn and winter seasonal confectionery trading spikes,” Boorer says. By preparing early and helping shoppers complete Christmas shopping Start of the last weekend trips quickly and safely, rebefore Christmas tailers can wrap 2020 up with a strong finish.

Key DAtE

19 December

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CATEGORY ADVICE CHRISTMAS CONFECTIONERY

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WHAT’S ON TREND IN 2020? SHARING bags and larger formats are expected to be a main focal point this Christmas, with 46% of retailers planning to stock these. Susan Nash, trade communications manager at Mondelez International, says that with this in mind, retailers should split their seasonal confectionery range into three phases, starting from September. The company suggests retailers focus on sharing confectionery in September and October, moving into advent calendars and tree decorations in November. Gift ideas and selection boxes were advised for

December, when shoppers are looking to trade up. Storck’s Andy Mutton also recommends retailers start early. “Sales start to spike from as early as October for festive confectionery, with 63% of annual sales occurring between October and December. Make sure to maintain availability until Christmas to meet shopper needs,” he says. Jo Sinisgalli, gifting senior brand manager at Mars Wrigley, suggests early promotions can help get the season off to the best start. “It’s also just as important to capitalise on sales opportunities in the

final week, so ensure you’re fully stocked with a range of chocolate products right up to Christmas Day.” Selection boxes and novelties, such as Milky Way and Skittles Selection Boxes, are also set to be a hit among retailers and shoppers, with 40% of retailers looking to stock more of these products this year. To help meet this predicted demand, Mondelez has launched an Oreo Selection Box in a 430g format comprising two Original Cadbury Dairy Milk bars, as well as Cadbury Oreo Classic and Mint, with an RRP of £5.95.

2020 launches Chocolate Thorntons Classic Thorntons Classic grew by 20% over Christmas last year, following a brand refresh. This year, Thorntons Classic is introducing new flavours, with new recipes for Nutty Caramel, Tempting Toffee and Creamy Fudge, as well as the new Orange Blush chocolate.

SUPPLIER

VIEW

Kinder Fluffy Toy range Two new fluffy toy novelties – a squirrel and a sloth – will be added to Ferrero’s Kinder Fluffy Toy range this year. The new figures will sit alongside the reindeer and polar bear options.

Jo Sinisgalli, gifting senior brand manager, Mars Wrigley

“AS retailers, businesses and manufacturers alike will understand, Christmas 2019 was a difficult year for the retail sector. Christmas 2020 also brings its own challenges, with the Covid-19 pandemic forcing many retailers and consumers to consider how they will be spending the holidays this year, both financially and socially. “Premiumisation is a growing trend, with premium chocolate bought as an affordable luxury by 56% of those who consume chocolate. We also expect boxed chocolate to outperform this year, following its success in 2019. In the final four weeks to Christmas alone, boxed sales rose by 43%, and much of this success is down to consumers looking for larger boxes to share and buying into the premiumisation trend. “While challenging for many, the situation presents retailers with the opportunity to tap into this and help unlock cross-category opportunities this Christmas to boost sales during essential shops in line with government advice.”

Cadbury Dairy Milk Jingly Bells New to Mondelez’s 2020 Christmas range, Cadbury Dairy Milk Jingly Bells are available in two flavours, Hazelnut Creme and Chocolate Noisette. The limited-edition chocolates are designed as a treat for adults or as a stocking filler. The company also says they’re aimed at shoppers who are baking seasonal products. Cadbury Roses by Emma Bridgewater Following the success of last year’s Olivia Burton partnership, Mondelez has partnered with Emma Bridgewater, a ceramic company. The new limited-edition tin is designed to encourage customers to trade up and will also include a voucher for shoppers to use at Emma Bridgewater stores. Galaxy Caramel Truffles To help retailers capitalise on demand for premium products, Mars Wrigley has launched Galaxy Caramel Truffles. “Caramel confectionery has had 22% growth since last year, so we’re confident shoppers will love these,” says Mars Wrigley’s Jo Sinisgalli.

SUGAR CONFECTIONERY CHRISTMAS is also an opportunity for retailers to drive sugar confectionery sales, with the sub-category worth £1.35bn and growing at 3.4% during this period. Mark Roberts, trade marketing manager at Perfetti Van Melle, says to achieve higher sales, retailers should focus on sharing bags and portion-controlled multipacks. “These formats cannot be overlooked; Chupa Chups lollipops, for example, are a favourite and portionable, and

To make the most of Christmas sales, high visibility is important. Creating a secondary siting can help with this, but it’s not always practical for smaller stores. Instead, try dedicating a gondola end or promotional bay to drive visibility, or merchandise with other confectionery lines and use signage to highlight your offering. Sinisgalli says to use PoS to create in-store theatre that makes limited-edition and iconic products, like Maltesers Reindeer, unmissable in store.

with hygiene and sanitation becoming increasingly important to shoppers, our range of lollipop bags, party bags and multipacks are perfect stocking fillers and great for sharing at social events,” he says. To meet shopper needs, dedicate a promotional bay for seasonal sugar confectionery, focusing on gifts and sharing packs, like Swizzels’ Sweet Shop Favourites range. Roberts also explains that the most popular time for sugar confectionery at Christmas is the weekend before:

“£1.4bn was recorded through tills on the Saturday and Monday before Christmas last year.” Mark Walker, sales director at Swizzels, says 85% of shoppers buy sugar confectionery at Christmas for a gift, so offering a range of bestselling known brands is key. “Christmas is one of the biggest calendar events for sugar confectionery, so to entice shoppers and encourage sales, stock a range of bestselling products from wellknown brands,” he explains.

Milky Way and Skittles Selection Box Also new to Mars Wrigley’s 2020 Christmas range is Milky Way and Skittles Selection Box, launched to help retailers tap into demand for sharing products this year, as well as a top-up gift for all ages. Sugar confectionery Werther’s Original Caramel Mix New to Storck’s 2020 festive range, Werther’s Original Caramel Mix consists of Butter Candies, Creamy Toffee, Creamy Filling and Caramel Fudge. Werther’s Original is available in a 120g sharing bag, best suited to smaller groups meeting over the festive period. Drumstick Squashies Carton Returning to Swizzels’ seasonal 2020 range, the supplier says Drumstick Squashies Carton was extremely popular in 2019. The 350g carton contains Drumstick Squashies Original Raspberry & Milk, making it an ideal gift for shoppers.



18+ Only. This product contains nicotine and is addictive. Further information on the pack. *Source: Nielsen. Volume Share and Share of Modern White Segment in Sweden and Denmark between September 2019 – February 2020. Excludes Norway where nicotine pouches without tobacco cannot be sold. VELO is sold under the brand name LYFT in Sweden and Denmark.

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CATEGORY ADVICE NEXT-GEN NICOTINE

8-21 SEPTEMBER 2020 betterRetailing.com

THE NEXT OPPORTUNITY PRIYANKA JETHWA and DARYL WORTHINGTON take a look at why now is the time to make sure you’re getting the most from next-gen products, and how to drive sales in your store

THE TIME IS RIGHT “IT’S too early to tell the exact outcomes of the characterising flavour ban yet, but what we do know is that with menthol and capsule smokers now unable to purchase their preferred traditional tobacco product in the wake of the ban, they may seek alternatives, which presents an opportunity for next-gen products,” says Mark Yexley, communications director at JTI. “Therefore, next-gen products are set to be a crucial footfall driver for retailers – and a category that retailers should

monitor closely to ensure they’re able to capitalise on any developments and potential profit opportunities.” As Yexley says, the opportunity in next-gen nicotine products has been growing for years, yet the implementation of the flavoured tobacco and menthol ban back in May could well trigger more shoppers to branch into the category as they look for alternatives. With that in mind, there’s never been a better

time to make sure that you’re taking this new core convenience store category seriously, from traditional e-cigs to new products such as Nordic Spirit nicotine pouches, to get the best possible results for your business.

the stat

£254m

The value of the vaping category last year in traditional retail


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CATEGORY ADVICE NEXT-GEN NICOTINE

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8-21 SEPTEMBER 2020 betterRetailing.com

VAPING IN THE WIDER MARKET SINCE mid-March, the vaping market has been turbulent to say the least. At the beginning of lockdown, when vape specialists were forced to close, convenience stores and online markets picked up trade, and this has in most cases remained that way. Earlier this year, Liberty Flights told Retail Express’ sis-

ter title, Vape Retailer, that after the week-long initial boom when panic-buying took over, it found that the new high demand was being maintained within convenience stores and online, especially for its pod mod devices and e-liquids – with some of its retailers selling double their average. This increased turnover in the channel has led to many

retailers investing in floorlength displays, and in June, the industry saw suppliers, such as Vape Base, trialling new category solutions with independents. Asked why the company shifted its focus to convenience stores, it said that Covid-19 put a huge strain on vape specialists, with many forced to close due to reduced foot-

fall. This in turn has presented a massive opportunity for convenience retailers to pick up their trade. To find out more about the dynamic vaping market, and how you can make the most of it in your shop, subscribe to Vape Retailer. Call Kate Daw on 020 3871 6490

INVESTING IN STAFF AVTAR ‘Sid’ Sidhu, of St John’s Budgens in Kenilworth, Warwickshire, has moved into the vaping category in a big way. And for him, developing staff is key to making the most of it. “Selling a device is about building loyalty with a customer,” he says. “You want them to keep coming back to the store for their refills, and then they’ll start buying other items, too. We incentivise our staff with a bonus for selling devices – it’s all about getting them to cham-

pion the category in our shop.” Suppliers also stress the importance of having shop staff keenly involved in the category. “If retailers don’t invest in training their staff on the products on offer, there’s a strong chance they’ll miss out on sales,” says Imperial UK corporate affairs director Duncan Cunningham. “However, if they make sure their staff know the products well, it will pay off massively in terms of sales and repeat visits.”

SUPPLIER

VIEW

Nick Geens, head of Logic and reduced-risk products, JTI

“TO build a comprehensive offering, retailers should look to stock a full, consolidated range and maintain good availability of key products. It is also important that retailers recognise which products are currently proving popular with customers. For example, pod vaping devices are currently the fastest-growing segment in the category, and nicotine pouches, which is currently growing in the UK. “To better understand the category and maximise sales, retailers should monitor EPoS data, stock the bestsellers in their area and take advantage of educational tools such as JTIAdvance.co.uk, which offers advice to help make the most of the category, from the latest trends to legislation and new products. Retailers should also speak to their local JTI sales representative, who can provide up-to-date advice and information on the category and trends.”

Christmas in an important sales opportunity forIllegal convenience tobacco is damaging your local retailers, but what confectionery trends are suppliers expecting community, funding organised crime to dominate the season this year? TAMARA BIRCH finds out and undermining local businesses

We all have a role to play to combat the issue. Don’t be complicit in the illicit trade

Anyone with information about this type of crime should contact Trading Standards on 03454 04 05 06 or visit www.jtiadvance.co.uk/DontBeComplicit




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CATEGORY ADVICE NEXT-GEN NICOTINE

8-21 SEPTEMBER 2020 betterRetailing.com

NEXT-GEN RANGING AND MERCHANDISING

SUPPLIER

VIEW

Duncan Cunningham, UK corporate affairs director, Imperial and Blu “MANY specialist vape stores have invested significantly in their store interiors to ensure they offer maximum consumer appeal. Although these stores include an extensive range of products, they are often carefully displayed to promote a minimalist look, featuring sleek arrangements of products. These attractive interiors and displays help draw consumers in from the high street and drive footfall into the stores. Therefore, any independent retailers looking to compete and truly position themselves as a destination store for vapers should consider investing in their displays and range to offer a similar shopping experience for their customers. “We have a range of different options that can be tailored to the needs of individual retailers, including everything from counter display units to fully installed gantry furniture. Any retailers interested in finding out more should speak to their dedicated sales representative.”

WHAT TO STOCK Products to watch out for

“REGARDING merchandising, ensure closed pod systems and devices are ranged together, and liquids and open systems are grouped,” says John Patterson, sales director at Juul Labs UK. “Other smoking alternatives should be merchandised separately. This will create less confusion for the customer and make product selection for staff

easier. Within each sub-category, block horizontally by brand and double-face the bestselling lines, space permitting. For example, all Juul devices and pods should be on one shelf, with Mint and Menthol having two facings. For added visibility, utilise manufacturer-provided countertop displays.” Meanwhile, more retailers

are trying shop-floor displays, which Nick Geens, head of Logic and reduced-risk products at JTI, says will allow shoppers to browse your range. “This can help drive repeat custom as shoppers won’t feel rushed at the counter and it helps them expand their knowledge of the different products available in their store.”

why not buy ? shoppers do. N E W M Y B L U. H A N DY A N D E A S Y VA P I N G.

Riot Squad Riot Squad is launching a new campaign through Vape Local retailers, offering three hybrid nicotine salts for £10. RRP £10 (three-pack) Juul Labs Juul Labs has added a Rich Tobacco flavour to its e-liquids range, replicating the taste of Virginia tobacco. It comes in a 18mg nicotine strength and is the first flavour to come in the brand’s updated packaging. RRP £10.99 (four-pack) Nordic Spirit JTI has expanded its Nordic Spirit range with an Elderflower flavour in 6mg and 9mg strengths, with an RRP of £6.50 for 20 pouches. It has also given its packaging a redesign with new colours. RRP £6.50 (20 pouches) Edge Menthol Tobacco Nic Salt e-liquid Edge has added a Menthol Tobacco Nic Salt e-liquid to its range, available in a twin-pack, designed for consumers who are looking for menthol alternatives now that the menthol ban is in place. RRP £4 Dot Pro Vape Menthol Kit The Dot Pro Vape Menthol Kit comes with 2ml of menthol e-liquid, the most of any pod device in the market. Users are able to use both Liberty Flights and Vampire Vape e-liquids in the device – a first in the market. RRP £12.99 (kit), £6.49 (2x2ml pods) Iqos Menthol Kits Iqos Menthol Kits by Philip Morris Limited include an Iqos 2.4 device and two packs of menthol tobacco Heet sticks, with an RRP of £49, but the price drops to £39 when consumers register the device. RRP £39-£49

This product contains nicotine. 18+ only. Not a smoking cessation product. © Fontem 2020. 2020

25


CATEGORY ADVICE WINTER REMEDIES

26

WRAPPING UP WINTER SALES Always an important convenience category, winter remedies could be an even bigger opportunity in the wake of recent events, writes DARYL WORTHINGTON

A NEW OPPORTUNITY the stat

ALTHOUGH many lockdown restrictions are being lifted and something approaching normality is returning in some walks of life, certain new shopper habits and routines remain. “We’re seeing consumers regularly shop at their local stores, and with this likely to continue for the long term, there’s a great opportunity for convenience re-

tailers to meet consumer need for over-the-counter (OTC) cold and flu treatments as we move towards the autumn and winter months,” says Paul Trethewy, controller for convenience at GSK. During the pandemic so far, according to Trethewy, Beechams has seen its value growth double and its volume of sales triple at the rate of the cold

and flu category. “This reinforces the mass opportunity the cold and flu category holds for retailers, especially with the upcoming winter season.” Medicated confectionery, such as Fisherman’s Friend, are suitable for a number of ailments year-round. However, they too are likely to grow in importance as the temperature plummets.

“It is well-known that menthol and eucalyptus can help keep winter ailments at bay, but they are also useful at other times, for example to relieve symptoms of hay fever. Another strong year of growth demonstrates that the brand continues to be an essential must-stock,” says Jon R White, regional business manager for Fisherman’s

24%

Friend in the UK. “As we head into the cold and flu season, we advise retailers to monitor the level of inciof shoppers buy healthcare dents of coughs and colds products on impulse to ensure they are able to maximise sales by meeting consumer demand for cost-effective remedies, such as lozenges.”

WHATEVER THE DAY THROWS AT YOU...

Christmas in an important sales opportunity for convenience retailers, but what confectionery trends are suppliers expecting to dominate the season this year? TAMARA BIRCH finds out Sales up +2.8%* £1.5 million #whateverthedaythrowsatyou TV campaign** 10 flavours available now

CATCH SOME PROFITS WITH FISHERMAN’S FRIEND WWW.FISHERMANSFRIEND.CO.UK U.K Distributor – Ceuta Healthcare: 0844 243 6661 *Ceuta Healthcare, in-market sales, MAT May-Apr 2020 vs PY

**Running for 5 months nationally: October 2020 – February 2021


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TO HIDE OR NOT TO HIDE? ALTHOUGH logic used to have it that remedies such as cold and flu medicines would be found behind the counter in a convenience store for security purposes, that is no longer always the case. “Although some winter remedy products are required to be kept behind the counter, retailers should look to stock some

top tips Four lessons to make winter remedies fly in your store Stock up on multi-symptom solutions As self-care concerns grow in shoppers’ minds, multisymptom solutions such as the Beechams All-in-One range are growing in popularity. Focus on your till Position lozenges and sweets from the big names, like Fisherman’s Friend, by your till to encourage impulse sales and remind customers to stock up. Get ahead of the game More shoppers are looking at prevention rather than cure. Products such as Halls Proactive range can meet this need. Get out from behind the counter If you haven’t already, consider moving your OTC medicines from behind the counter and onto the shop floor to increase visibility and sales.

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Jon R White, regional business manager for Fisherman’s Friend in the UK “IN order to capture those all-important impulse purchases, the key is to position well-known brands near the till point that are recognised and trusted by customers. “Menthol and eucalyptus have been used to keep airways clear and breath fresh for many years, and our Original Extra Strong variety contains more menthol than competitor brands. This helps to ensure continued strong sales outside of the winter season, cementing its position as the UK’s bestselling flavour with an incredibly loyal following. “However, to ensure that all retailers and consumer needs are catered for, we’ve also successfully introduced a wide range of fruity and mint flavours – still with the benefits of menthol, but with a more subtle, softer flavour. These lozenges have proved a big hit with consumers – as shown by the buoyant sales of our Sugar Free Spearmint, which launched in the convenience channel last year. In a short space of time, it has already become a popular addition to the Fisherman’s Friend lineup, with a rate of sale that suggests it will fast head towards becoming the brand’s second-bestselling product, behind Original Extra Strong.”

self-treatments on the shop floor to minimise disruption to a shopper’s journey as they seek cold and flu solutions,” says Trethewy. “With 24% of shoppers admitting to buying healthcare products on impulse, it’s important that retailers position their winter remedy products on the shop floor to encourage

impromptu purchases and to avoid missing out on additional revenue. Displaying winter remedy products on the shop floor gives the best results in the winter remedies category.” Consider adding lozenges and sweets to the till area to drive extra impulse sales. Even those shoppers who aren’t yet suffering sore throats or

blocked noses might be tempted to stock up if they see the well-known names. “Medicated confectionery is widely recognised as a distress purchase and, as such, offers a huge opportunity for convenience store owners to capitalise on impulse sales during the winter cold and flu season,” says White.


CATEGORY ADVICE WINTER REMEDIES

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OVER-THECOUNTER NEEDS

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Elizabeth Hughes-Gapper, brand manager, Jakemans “GROCERY channels remain the preferred option for consumers shopping for cough remedies, with these stores offering greater convenience and choice of products. Consumers can shop for these items alongside main food shops, and with pharmacies feeling the pressure because of Covid-19, there is an opportunity for grocery retailers to take on some of that weight. “To maximise the opportunity, retailers should consider multiple sitings, by placing menthol confectionery sweets in the confectionery section, medicine aisle and at till points. Stocking brands that offer good-value on-the-go relief at the point of purchase will help to drive impulse purchases at the till. Retailers should also look to use shelf-ready packaging when merchandising and ensure winter ailments solutions are in a prominent position.”

GSK’S Paul Trethewy is in little doubt as to this year’s key winter remedy concern. “Given the existing pressure placed on the NHS, many shoppers are seeking self-treatment from OTC solutions. This has resulted in our Beechams All-in-One Range increasing in value sales by 1.2% in the past year. It appears consumers are wanting to self-treat effectively, and therefore take comfort from multi-symptom solutions. “The performance of the multi-symptom segment has also seen a positive increase in frequency of sales, demonstrating consumer demand for this type of cold and flu treatment.” It’s also important not to forget that there will still be shoppers seeking quick relief to a sore throat or runny nose. “As it starts to get colder outside, consumers are looking for a way to stay ahead of the game when it comes to their health,” says Susan Nash, trade communications manager at Mondelez, which produces the Halls and Halls Soothers ranges.

“Last year, Halls demonstrated its market-leading position with the launch of new Halls Proactive with Vitamin C. Halls Proactive with Vitamin C was a first to enter the category. This product aims to drive incremental sales for retailers, through extending into a new shopper need and targeting a broader consumption occasion,” she adds. Meanwhile, Elizabeth Hughes-Gapper, Jakemans brand manager, points out that just like in many other sections of a convenience store, shoppers are paying closer attention to the ingredients of the winter remedies they buy. “There is growing consumer interest in the use of natural ingredients, and Jakemans throat sweets use only the finest natural ingredients with no artificial colours or flavours,” she says. “Our sweets are suitable for vegetarians and each one bursts with menthol, an ingredient that releases natural vapours to soothe the symptoms of a sore throat and keep airways clear.”

Christmas in an important sales opportunity for convenience retailers, but what confectionery trends are suppliers expecting to dominate the season this year? TAMARA BIRCH finds out

what to stock

Hall Proactive with Vitamin C Available in two refreshing citrus flavours – Orange and Pink Grapefruit – Halls Proactive comes in a handy resealable bag that’s ideal for all consumption occasions. Fishmerman’s Friend Fisherman’s Friend retails at 78p for a 25g packet, £2.19 for a 3x25g multipack or £1.45 for a 45g box. Flavours include Original Extra Strong, Sugar Free Spearmint, Super Strong Mint and Aniseed. Beecham’s All-in-One range The range has grown 1.2% in value sales in the past year. It includes capsule, powders, tablets and liquid varieties to meet a variety of different shopper needs. Jakemans stick pack Jakemans’ most popular flavours, Throat & Chest, Honey & Lemon and Cherry, now come in stick-pack formats as well as the normal 100g bags.


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8-21 SEPTEMBER 2020 betterRetailing.com

‘YOU’VE GOT TO THINK ABOUT THE FUTURE’ Home delivery is the buzzword for convenience stores, but how can you do it in a way that is viable for your business in the long term? Three retailers have their say

THE PROBLEM Covid-19 pushed more retailers than ever before into operating a home delivery service. But how can this go from being a way of serving the community through a crisis, to a continued part of a business?

1

Mo Razzaq, Family Shopper Blantrye, South Lanarkshire

“TO make a delivery service work long term, it’s not about getting your existing customers to use it, it’s about attracting new shoppers. If there’s a part of town you’re not getting footfall from, lea�let that area and get them signed up. “We charge £2.50 per delivery. Two pounds of that goes towards paying the driver and 50p towards maintaining the app. Some of our drivers are self-employed, others work directly for us on an hourly wage. The delivery service is now so popular that paying our drivers hourly is actually more cost-effective. “While the average basket in our shop is £7.99, it’s £18.99 online, and this is key to it being viable for us. We do fewer promotions online compared with what we do in store, which helps keep the margin up. In general, online customers tend to buy more – for instance, they’re more likely to buy a 12-pack of water or multipack of beer, which helps boost the spend.”

2

Ketul Desai, Leiston Londis, Suffolk

“WE’RE currently planning how we’ll set up a home delivery service in our store, because to make it work long term you can’t rush into it. “I think the key thing is going to be offering something that the multiples can’t. Ultimately, they’re also offering home delivery now, and there’s no point going head to head with them. For instance, take something like Tango Ice Blast – a hugely popular product. We’ll offer it on delivery, and we’re also going to sell other goods with it, so it becomes part of a delivered meal deal. We’ll be offering products you won’t get from a supermarket, and the meal deal means we can also demonstrate good value. “We also plan to have no minimum spend, to encourage shoppers to shop with us over the supermarket. Maintaining availability will be crucial – when shoppers come to your website, they need to be able to get everything they need.”

3

Sunder Sandher, One Stop working with Royals, Leamington Spa

“I GAVE a talk about home delivery services at a conference in 2017. At the time, I was with Deliveroo, but I would advise retailers to look at their customer base. Deliveroo and Uber Eats are quite crowded now in terms of competition, and I’ve switched to Snappy Shopper as my primary delivery provider. “Deliveroo and Uber Eats take 30% commission off your sales, which is quite high compared to Snappy Shopper. Yes, I have to use my own delivery drivers, whereas Uber Eats and Deliveroo provide these, but the lower commission rate makes it worth it. “A lot of retailers have other businesses in taxi �irms and I would advise them to take advantage of these where they can. Use the taxi drivers to help with deliveries to reduce overheads further. Snappy Shopper also helps with other costs, such as the marketing of your store. Reducing costs and improving ef�iciencies is about looking to as many places as you can.”

Facing a challenge? We’ve teamed up with the betterRetailing.com Support Hub and the IAA to provide a helpline for the answers you need. Call 020 7689 0500, email iaa@newtrade.co.uk or visit betterRetailing.com/coronavirus


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