Retail Express - 12 January 2021

BOOST EFFICIENCY AND CUT COSTS Five ways you could lower your overheads without breaking the bank P17-19 ICE CATEGORY ADV COSTS CUTTING ENERGY

FIVE WAYS TO CUT ENERGY COSTS IN YOUR STORE

12-25 JANUARY 2021 STRICTLY FOR TRADE USERS ONLY

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SIMPLE WAYS YOU CAN SAVE MONEY

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STUBBING OUT ILLICIT • Join our fight to stop illegal tobacco sellers hitting your sales • Trading Standards and tobacco giants reveal plans to crack down on criminal activity in 2021 P3

BROADBAND OUTAGE ANGER

SUPPLIERS’ PLASTIC PLEDGES

LOVE AND PROFITS

Independent retailers left frustrated over technical glitch from Virgin Media

Drinks manufacturers hit back at allegations they are the worst polluters

Three retailers reveal how they plan to maximise Valentine’s Day sales

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12-25 JANUARY 2021 betterRetailing.com

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our say

Megan Humphrey, editor

Let’s unite to fight against the sale of illicit tobacco AS I write this, the UK has been plunged into its third nationwide lockdown as prime minister Boris Johnson attempts to get the coronavirus pandemic under control.

This was yet another, all-too-familiar blow to small businesses. I’m sure, like me, retailers are finding it extremely difficult to stay positive, especially as we enter a new year.

Although there’s no right or wrong in dealing with this, I continue to be astounded by the optimism displayed by store owners.

Despite the pandemic being a topic that remains uppermost in our news coverage, I want to turn your attention to our new ‘Stubbing Out Illicit’ campaign.

Understandably, things that were once a primary concern for retailers have fallen under the radar, but it’s our job to ensure Covid-19 isn’t clouding the entire convenience channel, and that includes the sale of illegal cigarettes.

I have been successful in receiving the support for our new campaign from Trading Standards, as well as tobacco manufacturers, YOU MUST which will be essential in helping CONTINUE TO us drive change.

I can also reveal we have some REPORT ANY exciting plans in motion to play our part in tackling illicit tobacco, ILLEGAL ACTIVITY so stay tuned for more on those.

YOU SEE However, we can’t do this without the help of retailers. You must continue to report any illegal activity you see, so together we can fight back.

With that in mind, if you know an illicit seller undermining trade in your area, please call me on 020 7689 3357, or alternatively call Citizens Advice on 0808 223 1133.

The five biggest stories this fortnight 01

Virgin Media outage leaves retailers out of pocket

MEGAN HUMPHREY INDEPENDENT retailers have expressed frustration at a recent broadband outage by Virgin Media preventing them from carrying out card payments.

One of the affected retailers, Atul Sodha, owner of Peverills Londis Hare�ield in Uxbridge, told Retail Express he lost up to £700 in December because of the problem.

“The customer service was useless,” he said. “We weren’t able to speak to anyone directly and, as a result, we just had to wait until things got back up and running.”

He added: “There’s literally nothing you can do. No one is carrying cash at the moment, either, which makes things harder when something like this happens.”

In a bid to overcome future issues such as this, retailers

recommended investing in a portable card reader that’s powered by a mobile SIM card.

Store owners praised the device for being “neat, tidy and easy to pack away when not needed”, as well as “a great back-up that only requires a one-off payment”.

Virgin Media told Retail Express it has no record of Sodha contacting them.

A spokesperson respond-

ed: “Our 4G business backup service automatically detect faults and keeps customers connected on the rare occasions that services are disrupted.

“We know that providing a reliable and always-on connection is essential and have a range of bespoke small business products to support SMEs with disruption-free connectivity they can depend on.”

If you are interested in purchasing a mobile card payment device, call Retail Express on 020 7689 3357

FOR MORE ON HOW TOBACCO MANUFACTURERS INTEND TO TACKLE ILLICIT, TURN TO PAGE 3 @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 3357 Features editor Charles Whitting @CharlieWhittin1 020 7689 3350 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 Kate 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

Payzone Express deal

A NEW deal with National Express is expected to boost footfall for Payzone stores in the West Midlands.

The one million National Express bus customers in the region are now able to buy tickets through the NX Bus mTicket app at Payzone

stores in Birmingham, the Black Country and surrounding areas.

Payzone said it would protect cash ticket purchasing.

Commercial director Simon Lambert said the new service would “offer �lexibility” to passengers.

03

Pop-up success

RETAILERS are teaming up with takeaway services to create pop-up kitchens outside their stores to drive extra footfall.

Sophie Towers, owner of Kibble Bank Store in Burnley, has given a takeaway pizza van set days to trade from

her carpark for free.

“Footfall has soared, and we’ve seen huge interaction on social media,” she said.

“Working with other local businesses who have been hit by the pandemic is a great opportunity for retailers to grow next year.”

Account manager (new business) Jimli Barua 020 7689 3364 Sales support executive Charlotte Brady 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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PO Horizon delay

MORE than 2,400 current and former Post Of�ice (PO) retailers face delays in hearing whether they will receive compensation for historic till system errors.

Letters sent by the NFSP to claimants warned of PO “de-

lays in responding to applications”, but PO had hired extra staff to clear the claims “as quickly as possible”.

A PO spokesperson said it was “working hard to resolve these as soon as possible” and keeping claimants updated.

05

Healthier sales boost

RETAILERS have seen increased baskets as part of a scheme designed to help them compete with multiples on the availability and pricing of healthy food.

The Good Food Retail Plan saw three stores work with Greenwich Council in a pi-

lot to improve their range of healthy foods at an affordable price for low-income families.

A range of 39 products based on NHS healthy eating guidelines was chosen for the scheme and benchmarked against a major supermarket.

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.

For the full story, go to betterRetailing.com and search ‘healthy’

@retailexpress facebook.com/betterRetailing

12-25 JANUARY 2021 betterRetailing.com

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

Indies ‘best sources’ for reporting illicit MEGAN HUMPHREY TRADING Standards is looking at new ways to punish criminals selling illicit tobacco, according to North West lead Kate Pike.

The comments come as Retail Express launches its new ‘Stubbing Out Illicit’ campaign, alongside the government service and tobacco manufacturers, including JTI, Imperial Tobacco and British American Tobacco (BAT).

Pike told Retail Express: “We have got to �ind more and better ways of impacting perpetrators because they don’t care about getting a criminal record.

“Hitting them in the pocket is really what’s going to make a difference.”

“We need to be cleverer and smarter enforcement of�icers to make sure that we are getting out there.”

Pike added she is optimistic the potential changes will make a difference. “We have seen criminals crying because we have used the force of a �inancial investigator,” she said. “This is what we are going to be focusing on going forward.”

However, she reinforced the importance of the role of independent retailers in reporting criminals in their local area.

“Retailers are the absolute best sources of intelligence because they know what’s going on in their communities,” she said.

“Everything we do at a local level feeds into our intelligence picture which we can use to target activity further up the chain.”

She went on to acknowledge the frustration expressed by retailers when criminals continue to operate despite being reported.

“I can understand how frustrating it must be for responsible retailers when something does happen following a report, but then the criminals are back the next week fully restocked,” she said. “We’ve got to change that mindset.”

Pike stressed the need for everybody to work together to �ight the overall issue. “It’s really dif�icult to attribute a particular seizure to a particular piece of intelligence.

Instead, its about putting a jigsaw together,” she said.

“It all comes down to everyone working together and legitimate retailers are the ones who see it go on, and therefore must continue to report it. They are our partners in this battle.”

Imperial Tobacco UK’s anti-illicit trade manager, James Hall, told Retail Express that 82% of those who are aware of illicit tobacco being sold in the past 12 months haven’t reported it, with just 15% saying they did.

“Restrictions on travel due to Covid-19 have reduced the amount of tobacco purchased abroad for consumption in the UK, which has contributed to a

express yourself “I DO not see it impacting us massively. We are quite far up north already, and the cost of goods is usually more expensive by the time they arrive into Scotland. It is the same for our workforce as well. All our staff have been born and brought up in the area and we do not employ anyone from mainland Europe. It might impact our customer numbers as we’ve noticed the Europeans who live nearby have slowly started moving away.”

Shahid Ali, Nisa Mintlaw, Peterhead

03

GOOD WEEK FACEWATCH: Crime and policing minister Kit Malthouse has praised the use of facial recognition supplier Facewatch in convenience stores to drive down retail crime. Speaking in parliament, he said: “Facewatch is using facial recognition technology to alert staff to repeat offenders who are entering the store, allowing them to intervene before they are likely to become violent and abusive.”

DONATIONS: Retailer Amrit Singh donated 50,000 face masks to local charities after being rejected as supplier to his local hospital. After securing £110,000 of personal protective equipment (PPE) in April with the intention of supplying it to the NHS at cost price, he was forced to sell it at a loss after hospitals opted to use government-backed PPE companies.

Go to betterRetailing.com and search ‘PPE’ for the full story

BAD WEEK decrease in the sale of illicit tobacco,” he said.

“However, illicit tobacco trade remains a long-term threat and we must remain vigilant at all times.”

Hall revealed the manufacturers’ dedicated antiillicit trade app, SARA, launched in January 2018, has received more than 2,400 reports of potential illegal trade activity, which has been shared with law enforcement.

“Imperial continues to assist in the reporting and investigation of these reprehensible activities wherever possible,” he said.

JTI’s �iscal and regulatory manager, Ian Howell, added: “As we look forward to the year ahead, JTI remains committed to supporting our retailer partners to

the column where you can make your voice heard

stamp out the illicit trade.

“We already have a number of private prosecutions planned for 2021. As valuable members of their local communities, retailers are key stakeholders in the �ight against illicit tobacco.”

BAT’s head of external affairs, Nathan Jones, told Retail Express about the impact the selling of illicit tobacco has on responsible retailers’ sales.

“Selling un-taxed or counterfeit cigarettes is not a victimless crime – it deprives sales from legitimate retail businesses, harms consumers and the money made by the organised crime gangs who sell these products is used to fund other serious crimes,” he said.

“Retailers play a critical role on the front line

of the �ight against this criminality. I would strongly encourage store owners to always source tobacco products from trusted, reputable suppliers and to report every suspected case of illegal supply, or purchase, to Trading Standards or other law enforcement agencies.”

Alongside pledging support for Retail Express’ campaign, Jones added: “Only by working together to eliminate this illegal activity can we protect jobs, local businesses and safeguard our communities.”

If you know an illicit seller undermining trade in your area, please call me on 020 7689 3357, or alternatively call Citizens Advice on 0808 223 1133

MYHERMES: Parcel provider myHermes has come under fire for repeatedly refusing to pay missing commission to a retailer. The retailer, who wishes to remain anonymous, said they were owed payment for 45 parcels, each at 35p. “myHermes tried to tell me I hadn’t processed as many parcels as I had, but I told them this was a glitch on their side,” they said. myHermes later confirmed it has compensated the retailer.

GUINNESS: Diageo’s new alcoholfree Guinness 0.0 is missing from shelves this ‘dry January’.

The line remains absent from cash and carries, and a message from Nisa to its retailers said “availability problems” meant the line would not arrive in stores until April, nearly half a year after its attempted launch in November. The supplier was forced to recall the product after ‘microbiological contamination’ meant some units were unsafe.

Will the UK’s transition out of the European Union impact your store?

“ONE area Brexit might have an effect on is the amount of tobacco we sell. It’s likely to be positive because there will no longer be duty-free on tobacco at the airports and the public won’t be able to fill their suitcases with cheap cigarettes. It will encourage them to buy from local stores.

We have a post office, so there might be an impact on footfall as customers might have more forms to fill out when travelling to Europe.”

Paul Patel, Dibden Purlieu News, Southampton

“I DON’T think there’ll be any major impact. One of the main worries was stock shortages, but the wholesalers have prepared well in advance to have enough to keep us going until next month. There could be some eventual issues on pasta and wine, though. We get our pasta from an Italian importer and a lot of wine is imported into the UK. We’ll have to wait until everyone is settled into the new year before we can judge properly.”

Alan Mannings, Shop on the Green, Canterbury

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

Alan Mannings

NEWS

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12-25 JANUARY 2021 betterRetailing.com

Suppliers blast new plastic claims MEGAN HUMPHREY COCA-COLA, PepsiCo and Nestlé have hit back at recent claims they are the world’s top plastic polluters for the third year in a row.

Coca-Cola European Partners (CCEP) vice president of public affairs, communications and sustainability Julian Hunt told Retail Express: “Globally, we have a commitment to get

every bottle back by 2030, so that none of it ends up as litter.

Bottles with 100% recycled plastic are now available in 18 markets around the world.”

Hunt urged retailers to use point-of-sale materials through my.ccep.com to help contribute to the wider national effort. “Retailers should also look to engage directly with shoppers and discuss the importance of recycling with them,” he said.

A PepsiCo spokesperson added: “While setting ambitious plastic reduction goals, including decreasing virgin plastic in our beverage business by 35% by 2025, PepsiCo is also committed to growing re�ill and reuse.”

A Nestlé spokesperson pledged that by 2025, 100% of its packaging will be recyclable or reusable, and it will reduce virgin plastics by one third.

IT’S ANYTHING BUT AVERAGE

BENCHMARKING IS NOW OPEN!

#IAA21

“We have a huge amount of work to do, but we can’t do it alone,” they said.

“We want to continue to work with our peers to build new partnerships and drive innovation, and to work with the government to create a level playing �ield.”

The comments come as environment campaigners Break Free From Plastic accused the suppliers of making “zero progress” on reducing

plastic waste in its annual audit last month.

Coca-Cola was found to be worse than PepsiCo and Nestlé combined, with its branding found on 13,834 pieces of littered plastic, with PepsiCo on 5,155 and Nestlé on 8,633.

To read each supplier’s full response, go to betterRetailing.com and search ‘plastic’

Welsh rates freeze THE Welsh government has revealed it will be freezing business rates until 2022.

Finance minister Rebecca Evans MS announced the news on 15 December, stating business rates in Wales will not be subject to an in�lation-

ary increase in 2021-22.

It is estimated the freeze will support around 54,000 ratepayers across Wales, who are not already receiving 100% rates relief. Stores received a rates package worth £580m due to the pandemic last year.

ASSESS. COMPARE. IMPROVE. Benchmark your shop with the Independent Achievers Academy and you will: See how your store(s) compares to your peers Identify your strengths and opportunities to take your shop to new heights Become part of a network of hundreds of forward-thinking retailers New for 2020/21: Immediate comparisons with 2019 average scores No need to re-enter your shop details if you took part last year Results and areas for improvement sent directly to you once benchmarking is complete New category: Environmental Sustainability

My takings have gone up as a result of benchmarking – it’s a great way to be proactive and to make sure you don’t fall behind.

Steven Mahal, Arnold Premier Stores, Nottingham

Visit betterRetailing.com/IAA or call the IAA team today on 020 7689 0500

£100K RIBENA DRINKS GIVEAWAY

SUNTORY Beverage and Food GB&I (SBF) has been praised for giving shop owners £100,000-worth of stock to give away to local causes.

“It shows great trust in local shops,” said one shop owner. “Rather than go direct, they are allowing us to donate to causes that matter to our community.”

SBF business development manager Craig Starling said 50 retailers were asked to help get 8,844 cases of Ribena Sparkling to causes including food banks and hospitals.

Online deliveries soar INDEPENDENT stores face new online delivery competition after One Stop and McColl’s announced plans to get their estates taking orders.

Working with Deliveroo and Uber Eats respectively, the partnerships will add a combined 600 sites compet-

ing for online order spend.

McColl’s will offer 500 essentials including Morrisons supplied Safeway own-label from 400 stores by March 2021. One Stop will be rolling out the service to 200 of its company owned stores, following a successful trial.

Illegal tobacco damages legitimate businesses by taking revenue away from honest retailers, supports criminal organisations and makes it easier for young people to get hold of tobacco products.

We all have a role to play to combat the issue.

Join the fight against the illicit trade.

Use our new postcode tool to find out how illicit tobacco is affecting your local area and your sales.

Simply enter the start of your postcode here

JTIAdvance.co.uk/DontBeComplicit

“

This new tool from JTI is a great way to help raise awareness amongst retailers and customers on the damaging impact illicit tobacco sales has on our local community.

”

Anita Nye, Premier Eldred Drive

If retailers know, or suspect that illegal tobacco is being sold in their area, they should call HMRC’s Fraud Hotline on 0800 788 887 or visit www.JTIAdvance.co.uk/DontBeComplicit

PRODUCTS

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Frozen makes gains in c-stores PRIYANKA JETHWA FROZEN is now the secondbiggest category in value behind beer, wine and spirits, data has revealed.

In a survey of 200 convenience retailers across the UK, 74% of respondents said they had seen demand for frozen grow, with 42% saying it grew more than any other category.

More than a third expanded their freezer space to meet this demand, but only 40% regularly include frozen food in their orders.

Meanwhile, 19% of retailers said they planned to invest in frozen over the coming months, beating household and tobacco categories.

In convenience overall, potato products, pizza and ready meals command the biggest value share in frozen, followed by �ish, poultry, vegetables and desserts.

Chris West, channel controller at Birds Eye, said with people conscious about spending, frozen food is the optimal solution as it leads to less wastage since it can be put back in the freezer.

“Value for money will play a big role next year, so retailers need to ensure they have a permanent frozen meal deal in the same position to create familiarity,” he said.

“Planned top-up missions are the number-one reason for buying frozen foods.”

Jacob’s Mini Cheddars’ big launch TAPPING into evening snacking, Pladis has launched Jacob’s Mini Cheddars Sticks.

Available from next month to convenience retailers, the range comes in Rich & Tangy Cheddar and Grilled Cheddar & Sizzling Steak varieties in 150g sharing formats, with an RRP of £1.99.

Christopher Owen, marketing controller at Pladis UK&I, said more than a third of UK households (37.5%) already buy Jacob’s Mini Cheddars, and the launch aims to give retailers an opportunity to increase sales in

sponsored

snacking further by appealing to more occasions.

The launch will be supported by TV and digital advertising from March.

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Every website or app – no matter which template you choose – is pre-built with a product catalogue,

secure payments, social sharing and delivery options. With Studio Store, retailers can keep increasing sales, even at this uncertain time.

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Guinness Draught returns to screens DIAGEO is bringing Guinness Draught back onto screens after a decade in response to more people drinking at home.

The ad includes a 20-second clip, which also spans video-on-demand, outdoor, social media and radio, demonstrating how consumers can still enjoy a “perfectly poured” Guinness at home, even if the circumstances are a little different.

Neil Shah, head of Guin-

Nature Valley’s new protein soft bakes GENERAL Mills has launched Nature Valley Soft Baked Protein, available in Oats & Honey and Blueberry & Almond varieties.

Available now, the bars are designed for the 38% of breakfast cereal bar consumers looking for protein options. The launch will be supported by a £1m investment as part of the brand’s ‘Get out more’ campaign.

Adrienne Burke, market-

ing manager for snacking at General Mills, said: “We know 25% of UK consumers eat cereal bars for morning fuel, and are looking for ways to increase their protein intake in the morning, too.

“By offering a breakfast biscuit with high protein content we’re meeting this demand head-on.”

It has an RRP of 89p for a single bar, and £2.89 for a pack of four.

Galaxy launches premium blocks MARS Wrigley UK has launched Galaxy Orange Block and Galaxy Fusions.

Galaxy Orange Block will be available in large, pricemarked and single formats, while Galaxy Fusions will be available to convenience retailers this year, in Blonde Chocolate with Sea Salt, Dark Chocolate with 70% Cocoa, and Dark Chocolate with Raspberry Meringue varieties.

The launches will be supported with a campaign spanning TV, digital, social media and in�luencer activity, in April.

ness GB, said: “People love to savour Guinness Draught and we wanted to remind people that they can enjoy the taste whether they choose to drink it in a pub or at home.”

He added the popularity of Guinness Draught Beer in a can has naturally increased in recent months, and it wanted to celebrate that with circumstances being different this year, people can still enjoy their favourite brands.

A pudding-flavoured McVitie’s biscuit PLADIS is expanding its McVitie’s Milk Chocolate Digestives and Milk Chocolate Hobnobs with a limited-edition, dessert-inspired range, McVitie’s British Icons.

Milk Chocolate Digestives will be available in Strawberry Cheesecake and Lemon Drizzle �lavours, while Milk Chocolate Hobnobs will come in Chocolate Brownie and Sticky Toffee Pudding

�lavours, RRP £1.59.

Emma Stowers, brand director for McVitie’s at Pladis UK&I, said innovation is crucial when it comes to keeping shoppers engaged with what’s on offer in the biscuit aisle.

She added this is particularly important for younger shoppers who are increasingly seeking “unusual and exciting �lavour experiences”.

Makeover for Crabbie’s Yardhead HALEWOOD Artisanal Spirits has unveiled a new look for Crabbie’s Yardhead Single Malt Scotch Whisky in order to emphasise the brand’s premium whisky credentials.

The new bottle design features a slimmed-down shape, an updated white label and a new handle shape.

It will be backed by the brand’s �irst print, outdoor and social media campaign, which focuses on on the versatility of Crabbie’s Yardhead and includes a range of new serve suggestions.

Crabbie’s Yardhead was awarded Gold at the San Francisco World Spirits Awards in 2019 and 2020.

12-25 JANUARY 2021 betterRetailing.com

Gordon’s launches non-alcoholic bev GORDON’S has launched an alcoholfree option, available to convenience retailers now.

Growing at 33%, low- and noalcohol spirits are the fastest-growing segment within alcohol. Gordon’s 0.0% is available in 70cl bottles, RRP £14.

Anita Robinson, Diageo marketing and innovation director, said: “Combining years of experience, our in-

novation team has created a product at 0.0% ABV, which also remains true to the brand’s heritage and has been made by distilling the same botanicals used in Gordon’s London Dry Gin.” Gordon’s 0.0% follows the launch of Sicilian Lemon Distilled Gin earlier this year and Premium Pink Distilled Gin in 2017.

Embassy Signature extends range

IMPERIAL Tobacco has extended its Embassy Signature range with a Gold Superkings variety.

Embassy Signature Gold Superkings will be a straight swap for Embassy No.1 Red Superkings to help differentiate the new Embassy Signature range from the existing Embassy offering, which includes Embassy Filter.

It has an RRP of £9.50,

targeting those looking for premium options at a cheaper price.

Chris Street, UK market manager at Imperial Tobacco, said: “Demand for value is shaping shopper behaviour as consumers continue to seek out greater value from the products they buy. This is a trend we expect to continue and accelerate as a result of the pandemic.”

STG UK rebrands Signature Dual SCANDINAVIAN Tobacco Group UK (STG UK) has rebranded Signature Dual to Signature Action to maintain consistency within its global brand range.

First launched in February 2020, the Filter Cigarillos can appeal to a growing number of ex-menthol smokers looking for alternatives due to its peppermint click �ilter, Virginia blend tobacco and natural leaf wrapper.

STG UK country director Alastair Williams said: “Sales of our newly renamed Signature Action brand have been growing steadily since its launch, and we will be continuing to build on this momentum throughout 2021, not least through our �ield sales force who will be calling on as many independent retai-

lers as possible.

“We are keen to stress only the name of the product is changing and the cigar itself will remain the same.”

is a gap in the market for plant-based snacks.

During the �irst lockdown there was a 110% increase in searches related to ‘healthy snacks’, demonstrating how consumers are actively looking for inspiration for healthier options.

MORE OCCASIONS, MORE SHOPPERS, MORE SALES Availability is everything! As consumer behaviour evolves it brings new shoppers and new purchase occasions to every category.

With 38% of occasions happening at home, particularly whilst relaxing or after a meal, and almost half of all gum purchases unplanned, it is crucial for retailers to make gum available and visible for every shopper, every trip.

Ceder’s taps into wellness concerns PERNOD Ricard UK has launched a digital campaign for its premium nonalcohol spirit Ceder’s to tap into the health interests of consumers.

Ambassador Cat Meffan will help grow awareness of the brand, which will include Instagram takeovers and a wellness content series, with activity taking place throughout this month.

There is also in-store PoS available to convenience retailers that will educate shoppers on how to drink

Ceder’s, with the campaign set to reach 10 million health and wellness-focused consumers.

INDEPENDENT convenience retailers are selling 50% more next-gen nicotine products year on year.

Data provided exclusively to Retail Express by The Retail Data Partnership (TRDP) from its estate of 3,100 UK stores shows the number of stores stocking next-gen products has also increased.

In November 2019, 2,625 stores in TRDP’s estate were

selling next-gen products, which increased by 4.72% in the past year to 2,749 stores.

The growth is even more dramatic when looking solely at retailers that have offered next-gen products for more than a year. There are 2,305 stores that sold next-gen products in November 2019 and are still selling them today. In these stores, sales have increased by 152%.

Ensuring the MOST POPULAR FORMATS ARE ALWAYS AVAILABLE to boost both planned and incremental purchases.

GUM BOTTLE FORMAT WILL BE DRIVING THE GROWTH IN 2021 with + 1.7% projected growth so ensure you are offering the best sellers

Next-gen sales increase by 50%

Fridge Raiders go veg for first time KERRY Food has launched Fridge Raiders Veggie Bites, marking the �irst time the brand has ventured into the meat-free category.

The new range is available in Simply Seasoned, Mexican Heatwave and Indian Masala varieties, with an RRP of £1, and aims to cater to the surge in consumers opting for plant-based options, as almost half of the UK population look to reduce their meat consumption.

The snacking category has also seen signi�icant growth over the past year, but according to the supplier, there

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As consumer habits develop, traditional ways of consuming gum are also starting to change. On the Go remains crucial, however gum users are also engaging with the category during both active and non-active leisure – this could be gaming, working out, or simply at home relaxing. Core consumer appeal is around switching off and relaxing in a busy world – and gum helps consumers do this wherever and whenever they are.

Ted Collins, Category Development Head at Mars Wrigley

1 Ipsos Shopper Connections Global Benchmarks: average 20% of purchases are unplanned (hypermarket/supermarket). Base big box gum buyers (n=235), small format gum buyers (n=88), Ipsos aisle intercept survey. Q1b. When did you decide to buy gum today?, Snacking & treating usage study, Kantar, 2017

8891_f - Wrigley - AiA RE Column Ad.indd 1

27/10/2020 17:13

PRODUCTS

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THE NEW NAME

£9RRP . 50

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THE NEW PRICE

Nestlé’s 2021 spring range NESTLÉ Confectionery has announced its 2021 spring confectionery range, featuring a selection of its bestselling brands.

Back this year will be its KitKat Bunny, �irst launched last year where it became the number-two novelty line, generating sales worth £3.1m.

The range comes in several formats, including single; sharing bag containing six individually wrapped bunnies; multipack of �ive; and a giant easter egg containing a single bar and mini bag inside.

Milkybar is also adding a chocolate foil-wrapped bunny character to its range.

It will be available in single, and small and medium novelty formats.

This will join the existing Smarties Bunnies range, which was launched last year comprising �ive characters, alongside a new Smarties Buttons Giant Egg complete with a mini pouch.

Meanwhile, the supplier’s mini eggs range will include KitKat Mini Eggs, Smarties Mini Eggs, Milkybar Mini Eggs pouches and Aero Milk Chocolate Mini Eggs varieties.

KitKat is also adding a Chunky Cookie Dough Incredible Egg product to its range, comprising a cookie dough�lavoured milk chocolate egg with caramel, alongside

three KitKat Chunky Cookie Dough bars.

AVIKO has added three premium frozen potato lines to its range.

The range includes Super Crunch Julienne Fries (RRP £1.69), Bistro Garlic & Herb Wedges (RRP £1.39) and Mashed Potato (RRP £1).

The supplier said chips and wedges are “two of the most popular frozen products consumers buy in supermarkets”, with potential to replicate

this success in convenience.

Shah Khan, senior marketing manager at Aviko UK & Ireland, said: “At a time when eating out is limited due to ever-changing Covid-19 restrictions, shoppers are placing more value in enhancing at-home eating experiences.

Offering a premium and varied frozen potato range is therefore essential for retailers looking to pro�it.”

DEL Monte has announced a six-month partnership with food writer and anti-food-poverty campaigner Jack Monroe to promote the positive bene�its of eating canned fruit.

This will include Monroe creating recipes utilising the brand’s core canned fruit range. The focus of the

PRIYANKA JETHWA

Aviko launches three Del Monte partners new frozen lines with Jack Monroe

Become a master of fish with Young’s YOUNG’S Seafood has announced the return of its ‘Masters of �ish’ campaign, aimed at encouraging more people to eat �ish.

The ad will be broadcasted to 42 million consumers between now and May, and will run across networks such as ITV, Sky and Channel 5.

It forms part of a wider

For Tobacco Traders Only *RRP: for the avoidance of doubt, retailers are free at all times to determine the selling of their product.

digital outdoor advertising campaign close to stores, promoting its key products, such as Chip Shop Cod, Gastro Coated, Gastro Bakes and Gastro Scampi.

Recipe creations will feature across social media and paid search features to help inspire consumers to incorporate �ish into their diets.

recipes will be to offer families inspiration to create nutritious and affordable dishes.

The recipes will be made available to consumers through a digital campaign, including Monroe’s and Del Monte’s social media channels, with the hashtag #YesWeCan.

Weetabix makes a splash for 2021 WEETABIX is returning to TV screens with a light-hearted new-year ad, encouraging consumers to experiment with recipe ideas when eating Weetabix.

With the tagline ‘Have you had yours?’, the £22m campaign will run across TV, video-on-demand, digital and social media plat-

forms throughout this month and February.

The supplier said 30% of Weetabix sales are now made online, and it will be supporting this through ‘pay per click’ investment. It added 40% of the UK say they ate more during lockdown, with 80% of people wanting to try harder to stay healthy in the new year.

GROW YOUR SALES SOCIAL MEDIA

12-25 JANUARY 2021 betterRetailing.com

09

INSTA SUCCESS

THE NEW NAME

£9RRP . 50

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RETAIL EXPRESS explores how retailers are using Instagram to attract new customers

GETTING SOCIALS RIGHT FACEBOOK and Twitter are established as a strong means for independent retailers to reach out and get in touch with their shoppers, but social media doesn’t end there.

Instagram is specifically tailored towards sharing videos and photos, and as the saying goes, a picture paints a thousand words. Cliché aside, the fact is that as our lives get busier and the amount of content thrown at us through our phone or computer increases, we have less time to stop and

read everything, so pictures, memes and GIFs are becoming more important for communication. What’s more, the pandemic has made it even harder for independent stores to get the face-to-face time with their customers which has always been their biggest strength. Social media is one way to help bridge that gap.

Chances are you have a camera on your phone, so why not take advantage of Instagram? It might allow you to reach new shoppers.

top tips Setting up Instagram for your business Download the app to your phone It’s available from Apple’s App Store, Google Play Store and the Windows Phone Store.

Sign up This can be done with either your email address, or through your Facebook account.

Set up your profile Go to settings and switch it to a business account.

This will enable you to add information such as your opening hours.

Get following and posting Follow other local businesses who have Instagram accounts. Consider putting up signage in store, and posts on your other social media pages to encourage shoppers to follow you on Instagram as well.

top tips Tips for Instagram success Reach out With stricter Covid-19 restrictions in place, it’s getting harder for shoppers to come to your shop. Use Instagram to let them know how you’ve adjusted to keep serving them, for instance through home delivery.

Show your good deeds Build your shop’s image. If you’re doing good work in the community, whether donating to charities or helping with free school meals, share videos and photos on Instagram to spread the word.

Keep it unique A bit of imagination can go along way. Pancake Day is around the corner – why not ask customers who come to your store for the ingredients to tag you in a picture of the pancakes they make? It’s fun for them, and helps you get a bit of free publicity.

BOOSTING SALES ANY valuable time spent posting on Instagram must increase sales or footfall.

Gaurave Sood, from Neelam Post Office in west London, uses Instagram to post about new products and offers. He believes it is useful for bringing in new customers. “Regulars use Facebook, but Instagram seems to have a wider impact,” he says.

Harry Singh Hallen, from Londis Carstairs Junction in South Lanarkshire, meanwhile, stresses the importance of posting regularly. “Londis provides PoS most days, so I will put this on my ‘story’ that lasts 24 hours,” he says.

Meanwhile, Sandeep Bains, of Simply Fresh in Faversham, says Instagram can give shoppers a virtual tour of your store. As well as using it to advertise product launches, he’s used it to promote services he has offered during the pandemic, such as home delivery.

Other retailers have stressed Instagram is vital for promoting your store’s brand.

For instance, if your team is doing great things for the community, make a video about it and share it on Instagram.

It’s not just about promoting your range, and communityfocused posts tend to be popular, and are likely to be shared.

For Tobacco Traders Only *RRP: for the avoidance of doubt, retailers are free at all times to determine the selling of their product.

OPINION

10

DON’T MISS THE 22 JANUARY 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 COVID-19: How did the pandemic affect your parcel volume over Christmas?

“IT made us extremely busy, as a post office in the next town closed just before the pandemic, so we are the nearest one for a lot of customers. It has been difficult because we only have one Horizon system and counter, and most offices have an extra one.”

Sophie Towers, Kibble Bank Store, Burnley

Big nights in are here to stay – get your offer right with our special feature

WHATSAPP: Will customers ordering directly through the service help you?

Everything you need to know about next-gen nicotine

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THE LE ADING TITLE FOR

Four retailers reveal how they are beating the January slump

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

Do you?

I use it to update opening and closing hours

“WE have used WhatsApp to send videos of our stock on the shelves for customers to browse. They then make lists or call us to tell us what they want and pay us through a bank transfer. We then deliver to them. However, we use Snappy Shopper more than WhatsApp.” Atul Sodha, Londis Peverills, Hillingdon

“I DON’T use WhatsApp business for customer orders, but it is quite a good tool to communicate with trade contacts. I also use it to update opening and closing hours at the store and have my email and store address listed. With customers, I use Snappy Shopper more.”

Amrit Singh, Nisa Local High Heath, Walsall

PROMOTIONS: What offers are you running to sustain footfall in January?

“WE implemented a range of offers in the new year, including reducing the price of milk to 85p for a pint and selling loaves of Hovis bread and sugar for 69p. We basically reduced a number of everyday items in store and online we had similar offers.”

Mike Lakhani, Premier St Mary’s, Southampton

“WE rolled over pre-existing promotions we had for Christmas, including cheap boxes of chocolate and cookies, into January to sustain footfall. We are also starting to bring in Easter stock because we think that will drive incremental impulse sales.”

Amit Puntambeka, Ash’s Shop, Cambridgeshire

We rolled over preexisting promotions NEW YEAR: What learnings from 2020 will you be implementing this year?

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

Vince Malone, Tenby Stores, Pembrokeshire

We saw an increase in larger parcels

PLUS

R SHOP AY FO GIVEAW

“WE saw an increase in people sending larger parcels and a definite increase in using guaranteed services to ensure parcels arrive on time. People are using options like special deliveries, next-day courier services and tracking their parcels via Parcelforce.”

We learned the importance of being well stocked

“ONE thing that really struck me last year was the importance of keeping prices low by keeping overheads low. We more than halved our staff costs in 2020 by removing some of our services such as parcels, photocopying and currency. This meant less work and more profit.”

Les Gilbert, Chard Newsagent, Somerset

“WE learned the importance of making sure we are well stocked. We also learned to look after vulnerable customers as we did a lot of deliveries to older people. 2021 is not guaranteed to be normal yet, so we will have to take it as it comes with the tier system.”

Ajmer Kaur Sohal, Premier Kens Convenience Store, Winsford Cheshire

LETTERS

12-25 JANUARY 2021 betterRetailing.com

11

natalie lightfoot

Letters may be edited

Londis Solo Convenience, Baillieston, Glasgow

Home delivery has kept us going through the crisis

‘Bestway won’t let me pay cash’ I HAVE been a member of Bestway’s Oldbury Cash & Carry for over 10 years. I get my delivery from them every week and normally pay a £2,000 bank transfer when I do, and pay cash for the rest.

However, I have stopped buying from them in the last four weeks due to an ongoing issue. They told me they want me to pay for my delivery all on card, and not use cash. The problem is payments in my store are 80% cash and 20% card. If I bank all of the money, it’ll cost me over £100 in bank charges, which I simply can’t afford. I also have a limit on my card of £2,000.

I explained all of this to them, but they didn’t want to know. I have sent numerous emails to head of�ice and tried to talk to the branch manager, all with no success. The only thing they told me was that they take cash in the actual cash and carry, but that payments for deliveries should be on card.

Anonymous retailer

Ashar Rehman, head of operations at Bestway Wholesale, responded: “Thank you for bringing to our attention the situation the shop owner has raised with Retail Express in respect of our driver being unable to take cash on delivery and the changes we

have recently made.

“As retailers will know and appreciate, the reason behind the change was that EHO (Environmental Health Of�ice) advised businesses including Bestway/Batleys that we should not be collecting cash (for driver safety reasons) during the Covid-19 pandemic.

In order to comply with EHO advice and as a responsible company, we adopted this recommendation as we have our customers’ and our employees’ best interests at heart during these exceptional times, although we do understand that this change has created a concern for a small number of our customers.

“We have worked with the shop owner to �ind solutions, and members of our team have spoken to them in the past few weeks when they made us aware of his concern over possible bank charges.

“We have provided some possible options for them to review and are con�ident a solution will be agreed with no detriment to their business.

Meanwhile, we have continued deliveries as usual so there is no impact on their trading.

“We would like to reassure all our customers during these challenging times that together we will work to �ind solutions that support their businesses.”

COMMUNITY RETAILER

OF THE WEEK

WIN £50-worth of McCoy’s Fire Pit

RETAIL Express has teamed up with McCoy’s to give five retailers the chance to win £50-worth of McCoy’s Fire Pit, a new range inspired by wood-fired cooking. Available in grab bag and £1 price-marked packs, McCoy’s Fire Pit comes in three varieties, including Flame Scorched BBQ Rib, Flame Roasted Peri Peri and Flame Smoked Chorizo.

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.

@anita_nye – Premier Eldred Drive Stores, Orpington

‘We donated gifts to a local school’

WE donated Christmas presents to our local school. Last year we did a massive Santa’s grotto, and we had some leftover gifts. This year we couldn’t do that because of the pandemic, so we thought we’d give them to the school instead. We spoke to them to find out how many pupils there were. We also delivered extra for families who are struggling. The school is opposite our store and we have always had a good relationship with them which is why we chose it in particular.

AS we head into another lockdown, convenience retailers will be facing a host of new challenges.

Our strengths have always included our connection to our communities, and the ability to be more flexible than the multiples. Now is a time when we can drive that home, and offering delivery is one way to do that.

We saw a drop in footfall during the Each issue, one of seven top previous lockdown retailers shares advice to of around 100 make your store magnificent customers a day, and the signs are that the same thing will happen this time. Having the home delivery service helped us make up those shortfalls, and has contributed to an overall increase in average basket spend.

We’ve noticed a change in buying habits over that time.

At the start, people were using us to do the big weekly shops they’d usually do at the supermarkets, now they’re using delivery more for sweets and treats, chocolate bars, drinks, cigarettes and things like that.

As always, we aim to give customers better quality than they get at the supermarket. For instance, we won’t do a substitution in their order without checking with them first. We’ve found that the home delivery has brought us in new customers from further afield, as well as helping us keep serving our existing shoppers.

Setting a delivery service up is not easy. Running home delivery is labour intensive, and that’s something you need to bear in mind. What’s more, you need to really promote it. We had someone leafleting everyday to get the message across, and when we started, we offered the service free of charge to establish it.

After nine weeks, we started to charge £3 per delivery – that transition was tough, but we were honest with our customers about why we had to charge, and most of them understood that we had to cover our costs.

In the trial stage, we were only doing deliveries for a few hours a day. In hindsight, I think we should have had a bigger window at the start. It would have allowed us to pick up useful information about people’s buying habits much quicker.

I also wish we’d started leafleting much sooner and quicker, as the faster you get the message out, the more people will start investing in the service.

In our store, the philosophy is that we’re not a business, we’re a face – someone the community get to know and can talk to. By carrying that philosophy into our home delivery, we’ve managed to make it work. I’d urge any retailer who hasn’t tried home delivery yet to look at their options now.

Get in touch

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

CATEGORY ADVICE LOW-SUGAR SOFT DRINKS

12

12-25 JANUARY 2021 betterRetailing.com

HEALTHIER DRINKS CHOICES Through all the upheavals of 2020, one trend remained – shoppers looking to cut down on sugar. TAMARA BIRCH talks to suppliers about 2021 trends and how retailers can drive sales

the stat

63%

of shoppers are trying to be healthier

LEADING HEALTHIER LIFESTYLES HEALTH has been a key shopper concern for a number of years, with 63% of shoppers saying they’re trying to be healthier.

Soft drinks are no exception, with the category shifting towards low- and no-sugar options. More suppliers have launched zero-sugar varieties of their core ranges to help retailers drive sales. Matt Gouldsmith, wholesale channel director at Suntory Beverage & Good GB&I, says zero-sugar and low-sugar drinks are continuing to grow.

“Over the past few years, shoppers’ spending on zeroand low-sugar soft drinks has increased by 33% and

29%, respectively, showing just how important this segment of the market is,” he says. “This means retailers should ensure their chillers are stocked up on lower-sugar carbonated soft drinks, such as Lucozade Zero, to capitalise on the ongoing trend towards lower-sugar choices.”

Amy Burgess, senior trade communications manager at Coca-Cola European Partners (CCEP), echoes this and recommends the best course of action to drive soft drinks sales is offering choice, but warns not to lose your focus on bestselling lines. “Consumers want choice when it comes to

soft drinks, so while it’s important to ensure you have a wide range of low- and nosugar products in stock, don’t reduce space given to your current bestsellers.”

It’s important to note that what counts as healthier will be different for every consumer. Some will be looking at the calorie content of a drink, while others will be looking for natural ingredients. Talk to your customers about how they value health and try to offer options covering low sugar, low calories and lines that use natural ingredients, such as Britvic’s Robinsons Fruit Cordials.

YOUR NEW YEAR MUST STOCKS.

11016RB_Trade Press December 2020 Part 2 - 260x339mm.indd 1

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CATEGORY ADVICE LOW-SUGAR SOFT DRINKS

14

SUPPLIER

FLAVOUR INNOVATIONS IF a shopper decides to live a healthier lifestyle, it does not necessarily mean they want to compromise on taste and flavour.

Britvic’s out-of-home commercial director, Phil Sanders, says flavour is a key driving force within the no-sugar cola segment in soft drinks and that the brand’s Pepsi Max is growing in value by 17% year on year. “Pepsi Max accounts for 28% total volume cola sales throughout the category and we launched Pepsi Max Raspberry last year, which has become the biggest flavour ex-

tension in soft drinks since its launch in 2019,” he says.

Suppliers have also launched a selection of new flavours in the sports and energy category. Red Bull, for instance, launched Red Bull Tropical Sugarfree in 2018, along with Coconut Berry Sugarfree in 2019 to help meet the demand for sugar-free alternatives. Similarly, Carabao Green Apple, Original and Mandarin Orange contain just 63 calories.

“Eighty-nine per cent of shoppers express an aspiration to eat and drink more health-

ily,” says Mark Tanner, head of independent and wholesale at Carabao. Tanner advises that, to drive sales, retailers should avoid merchandising drinks by the amount of sugar content.

“Retailers need to ensure their soft drinks are positioned in a way that makes lower-sugar soft drinks easily accessible to customers.

“Avoid arranging space by the sugar content as this could result in shoppers missing those healthier options if they’re not grouped with other products from the brand,” he says.

VIEW

But it’s not just fizzy drinks where flavour is a key sales driver. Flavoured milk continues to grow, with the sub-category worth £385m across the total market.

In fact, chocolate-flavoured milk is worth £44m, with a market share of 27%, according to Michelle Frost, general manager at Mars Chocolate Drinks & Treats. She says: “Retailers should look to weight their chillers to reflect these leading flavours, using familiar brands to encourage shoppers to drive consumer interest and sales.”

Phil Sanders, out-of-home commercial director, Britvic

“LAST year we saw an increase in the value of lowcalorie soft drinks, which grew by 3.2% and, with 29% of the population trying to reduce sugar in their diet, it’s important for retailers to stock a range of healthier drinking options to ensure shopper demands are met.

Stocking low- and no-sugar alternatives of a core range of well-known brands, such as Tango Sugar Free, 7up Free and Pepsi Max, is a simple way to ensure your range has something on offer for those looking for a healthier soft drink.”

MORE THAN FIZZY DRINKS IT’S easy to think of energy drinks and carbonates when someone mentions low- and no-sugar, but it’s important not to forget about offering a range of water, the original drink of choice for health-conscious consumers. According to Nichola Grant, channel marketing manager at Highland Spring Group, bottled water is worth £220m within convenience and

sparkling water is worth approximately £17.3m.

Sparkling water is an ideal alternative for those who aren’t fond of flavoured fizzy drinks, or for adding to alcoholic drinks as a mixer instead of soda water. “The past 18 months have seen a trend towards sparkling natural source water, which is ideal for those looking for a little lift,” says Grant.

When merchandising, make sure to stock fast sellers on the bottom shelf of your chiller and allow space for sparkling water, including a range of different flavoured options for customers looking for something a bit different.

Some customers prefer their drinks chilled, so stock a selection of larger formats if space permits to meet this need.

SUPPLIER

VIEW

Jacob Hall, category manager, Danone Waters “THIS year, the top three soft drinks segments in the convenience market (cola, energy and carbonates) accounted for nearly 65% of total soft drinks sales and grew ahead of the total market. The fastest-growing sub-segment in each was low-sugar and diet. In total low-sugar options, these segments grew by nearly £33m vs one year ago1.

“When it comes getting the balance on shelf right, it’s still important to offer choice for consumers. Full-sugar formats in these top segments still account for more than 70% of sales, so it’s important to still offer variety for customers to make their own decisions.

“Should we be re-thinking how we merchandise as low-sugar growth continues? In short, not right now.

Analysis of the decisions consumers make at the shelf show that the soft drinks segment was their primary decision, followed by still/sparkling.

“Brand, flavour and sugar content then held equal influence in the final shopper decision. So, while offering low-sugar options to capitalise on growth is key, remembering to prioritise shelf-space to your largest overall segments can’t be overlooked.”

1

Source: IRI Plussuite, Total Convenience L52 weeks (28/11/20)

top tips Four tips to building a strong low- and no-sugar range Every customer is different While the internet continues to promote different diets, every customer’s goal will be different. Some will be looking at the calorie content, others will look at the sugar content, while some will choose natural ingredients. Talk to your customers to get a deeper understanding of what they’re looking for.

Offer more than fizzy drinks Low- and no-sugar soft drinks don’t just mean energy drinks and carbonates, but incorporating a range of water, too. Suppliers have reported a rise in demand for larger formats, so consider stocking a selection of 1l bottles and larger in your chiller to also meet the need for instant gratification – especially in the summer.

Sell at the right price Value is likely to be a top mission of this year, so offering this in store is important. While multipacks and larger formats offer more value, it’s just as vital to offer an attractive price across 500ml bottle formats, too.

Cater to flavour and taste Over the past few years, shoppers have been looking to try new flavours across several categories. As a result, suppliers have launched new flavours in their top-selling lines. CCEP, for example, launched Diet Coke Sublime Lime last year, while Britvic launched Pepsi Max Raspberry and Ginger.

12-25 JANUARY 2021 betterRetailing.com

15

OFFER THE RIGHT PRICE AND FORMAT ON-the-go consumption slowed in March last year due to Covid-19 government restrictions resulting in more shoppers working from home. As a result, multipacks and larger format sales surged.

In fact, these formats are now driving the category across convenience, with a 10.8% growth in the past 12 weeks, according to Nichola Grant. She says: “Multipacks should be highlighted as a key

product for the in-home occasion, merchandising alongside other multipack healthy snack options, as well as fresh fruit.”

Grant recommends promoting 1.5l still and sparkling water as part of a ‘big night in’ meal deal to drive sales with those looking for less indulgent soft drinks, particularly mid-week.

Multipacks offer value because customers are get-

ting more for their money, but Carabao’s Mark Tanner says retailers need to offer competitive prices across the board to increase sales. “Lowsugar drinks sometimes carry a higher RRP than the higher-sugar choices, making it difficult for shoppers to justify making the right choices,” he says. “In this time of economic uncertainty, retailers need to offer an attractive price to maintain higher sales.”

SUPPLIER

VIEW

Nichola Grant, channel marketing manager, Highland Spring Group

“LOOKING at the long-term perspective, the big night in is likely to remain a key opportunity as shoppers have more restrictions on their everyday lives in the wake of the pandemic, and potentially less disposable income to go out. This represents an opportunity, particularly for sparkling water and ‘drink later’ options.

“Stocking a selection of bottle formats, cap types and pack sizes from recognisable brands helps retailers meet the needs of ever-changing consumer demand.

Retailers should ensure they focus on availability throughout the day. Customers are staggering their shopping times, so it’s important to have products available at all times to make it easy for people to pick up what they are looking for.”

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Run a better shop in 2021

The Retail Only Success £4.99 A MUST-READ FOR PROFIT-DRIVEN INDEPENDENT RETAILERS

December 2020

Handbook

RUN A BETTER SHOP IN 2021

Out now!

TOP

S

RATION

O COLLAB

ED REVEAL Own label, PMPs & Value

Healthier choices

Alcohol trends

A boom in world food

Delivery services

Community involvement

A shifting grocery market

Sustainability

Fighting illicit trade

OTC medicines & household

Shop security

Joining a franchise group

For independent news and convenience retailers, a major contributor to success in 2021 will be the ability to link up with the right suppliers. This year, collaborations between manufacturers and independent retailers have been more important than ever, so as part of the December edition of The Retail Success Handbook we’re going to show you how the right partnerships can really benefit your business.

PLUS • How key categories are changing – retailer tips to stay ahead • Meeting customer needs in 2021 • How to run a profitable delivery service • Easy ways to improve your shop security

Don’t miss out – get your copy today at betterretailing.com/product/rsh/ or call Kate Daw on 020 3871 6490

CATEGORY ADVICE CUTTING ENERGY COSTS

FIVE WAYS TO CUT ENERGY COSTS IN YOUR STORE With 2021 likely to be shaped by economic uncertainty, TAMARA BIRCH gives retailers a guide on cutting their energy costs

SIMPLE WAYS YOU CAN SAVE MONEY AS we enter the height of winter and continue the quiet January period, this is the ideal time for retailers to look at how they can cut their energy bills and save money. Switching to energy-efficient chillers, installing LED lighting or even reviewing your contract and changing suppliers are just some of the ways to cut costs.

Installing a door-closing mechanism is a great way to reduce heat loss in your store, showcasing a professional and tidy look to shoppers. This will also remove the need to have the heating on all the time or

behind the till area for your team, too.

There will be an initial investment and it’s important to calculate outgoing costs against what you’re likely to save. But there are cost-effective solutions to trial before spending large amounts of money, such as installing sensors in areas that aren’t in use 24/7.

Introducing new processes is key to maintaining any changes you make, so train staff and reinforce this with signs or reminders. This will enable you to consistently save money throughout the year.

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CATEGORY ADVICE CUTTING ENERGY COSTS

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INSTALL SENSORS OR LED LIGHTING INSTALLING LED lighting is an investment, but the return and savings on this can cancel out the initial cost. Bay Bashir, owner of Belle Vue Convenience Go Local in Middlesbrough, North Yorkshire, uses LED lighting in store and advises retailers to look long-term.

“All our shops have LED lighting which has helped to reduce bills, but it’s not a quick fix to reducing bills – you’ll see the difference over time,” he says.

Contact different LED manufacturers for quotes, but don’t just ask them for the cost of installing the lighting, ask

ENERGY-EFFICIENT CHILLERS ACCORDING to a recent study

by The Wholesale Company (TWC), 63% of retailers agreed that investing in better-quality or more modern chillers offers a better overall impression of the store – but they can also help cut overhead costs.

By having doors on the chillers, cold air that circulates the store is more likely to remain in the chiller, helping to save on heating bills, too. Reach out to suppliers about any solutions that they offer. CCEP, for example, has a selection of chillers available that use natural refrigerants, are fitted with LED lights and use advanced insulation technology.

Hunt says: “We’ve also introduced energy-management systems that can reduce power consumption by an average of 30% by sending it into standby

mode after periods of inactivity.” Retailers can enquire about equipment using the Coke Customer Hub. Simon Robinson, managing director of Pastorfrigor GB, says the company has launched a new Genova OV chiller system. “The new cabinets are designed with natural refrigerant, cost just £1 per day to run (2.5-metres wide) and have a good display capacity,” he says.

Alternatively, talk to retailers about their chiller options and compare different suppliers to see if the outgoing investment is worth the annual savings. Or reach out to your symbol group to find out about the options they have available. Spar, for example, has developed energy-saving refrigeration for its retailers.

them how much it’ll cost in electricity to illuminate your store. Alternatively, Ruth Forbes, head of responsible business projects at JTI, recommends introducing a ‘switch off’ policy in addition to LED lighting.

“A ‘switch off’ policy for

staff in areas that aren’t in constant use, such as a stock room, can further reduce energy use and cut bills,” she says.

Energy-saving bulbs also reduce overhead costs and are another solution that can reduce cost over time, despite an initial bigger outlay.

COMPARE TO FIND THE BEST PRICE COMPARE energy suppliers and see how much money you could save. It’s widely known that energy prices change frequently, so when your contract runs out, it’s best to know your options.

In fact, Julian Hunt, vicepresident of public affairs, communications and sustainability at Coca-Cola European Partners (CCEP), says doing this will help you to better understand your consumption. “Operating sustainably can help to drive down costs – in terms of the type of energy stores use and how much of it,” he says. “It’s worth ex-

ploring the deals available on renewable energy tariffs, and then finding ways to improve energy efficiency in store, such as by using the latest equipment.”

Retailers in the past have reported the importance of talking to other convenience retailers to find out what you can expect to pay on an annual basis. Talk to retailers with a similar size store to get a more accurate understanding of this. Also, use price comparison sites to find the best deal and use cashback websites to save any initial costs, too.

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CHECK YOUR HEATING SYSTEMS MANY stores need a heater behind the till to keep their staff warm in winter. Although it’s not recommended to remove heating, it could be sending your bills sky high.

Suntory Beverage & Food GB&I (SBF) helped a retailer in Sandiacre, Derbyshire, make three changes to help him save more than £345 a year in energy costs – and one of these changes was replacing his 800W oil-filled radiator behind the counter.

Jemma Healy, category controller at SBF, says they also installed a new door-closing

mechanism for his front door and two other changes. “If the UK’s 46,388 convenience stores made these four sustainability-focused alterations, the total savings across the channel could be up to £16m per year.”

Also, make sure you’re not overpaying by comparing prices, especially if you’re a multi-site retailer with different energy consumption levels. Retailers can do this through price-comparison sites or talking to other retailers about the suppliers they use.

UNPLUG UNUSED APPLIANCES THE reality is that we don’t use every appliance all the time, but it’s often the case that they’re left switched on anyway. Create a checklist of the appliances that aren’t used daily or that could be switched off when the store closes at the end of the day, ensuring nothing is missed before you or your team leave for the evening. You could even assign responsibility for spe-

cific appliances to specific team members, encouraging them to take ownership of the task.

Covid-19 government restrictions have meant some areas of a convenience store aren’t as profitable as they once were, so review this and calculate how much you could save if you temporarily shut down a certain area. Ketul Desai, of Leiston Londis in Suffolk, for example,

shut down his food-to-go area in his London store when his footfall declined.

The most important thing is training your teams to follow any processes you set, as well as having routines and procedures in place to remind them and help you keep an eye on what’s being done. Bay Bashir says it’s key to build good habits and cover areas from the start. “If

you’ve got four members of staff and one isn’t following protocol, like leaving a light on, it’s important to remind them about it. It’s trial and error,” he says.

Consider putting one member of the team in charge of this and check daily. Alternatively, add it to a checklist of tasks your team need to perform when shutting the shop down in the evening.

RETAILER

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Bay Bashir, Belle Vue Convenience Go Local, Middlesbrough, North Yorkshire “WE have the same processes across all of our stores, including any sustainability efforts and ways to reduce our energy outgoings.

“Our main goal is trying to maintain the right temperature in store where customers and staff don’t feel cold and are comfortable to continue working.

“Some of our chillers have doors on, which helps to improve the temperature of the store, while others don’t and it’s not always possible to have doors across the board. Cutting energy costs and being consistent with it is about building good habits with your team from the start and reiterating these processes for any new starters.”

CATEGORY ADVICE PERFORMANCE ENERGY

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TOP PERFORMERS People need to exercise, even under lockdown. DARYL WORTHINGTON finds out how you can make sure you’re offering the performance energy products they need

the stat

62.7%

Growth of the performance energy segment in the past six months

A GROWING OPPORTUNITY FOR all the restrictions that have been put on what we can and can’t do over the past 12 months, the ability to exercise is one of the few things that’s been maintained. In the first lockdown, the government still encouraged us to get daily exercise, despite gyms having shut. Now, even as we enter national lockdown for the second time and the country’s gyms are closed once again, there is still room for sports, workouts and other physical activity, even if this activity cannot take place in a gym.

Government guidelines still permit outdoor exercise once a day, which will allow people to engage in running, walking and cycling in their local area.

People will take full advantage of this as they bid to stay fit and keep up New Year’s resolutions through this pandemic.

Combined with the fact that

Covid-19 and the lockdowns have seen many shoppers pay closer attention to their health and well-being, it could be primetime to make sure you have a range of snacks and drinks available for shoppers looking to give themselves a boost for their exercise regime.

David Butcher, managing director UK & Ireland at Carabao, says: “In Carabao’s Taste of the Nation report, research found that 18% of respondents cited exercise as an occasion when they’d consume energy drinks, a clear opportunity to drive category sales growth by stocking an energy brand such as Carabao.”

It’s not just energy drinks – performance energy covers products shoppers will be looking to consume before or after a run, workout or game of football, whether it’s a protein bar or an isotonic drink.

HEALTHY AMBITIONS THE drive to be healthier has been shaping shopper habits for years. More customers are paying more attention to the products they buy, checking ingredients and nutritional information. This is particularly the case in January, when New Year’s resolutions push consumers to take on new fitness regimes, diets and health goals.

“A new year means newyear’s resolutions for consumers, often focused around becoming more active,” says Matt Gouldsmith, channel director for wholesale at Suntory Beverage & Food GB&I, manufacturers of drinks brands such as Lucozade and Ribena.

“A brand like Lucozade Sport, therefore, is crucial in driving sales from shoppers who are putting a focus on exercising,” he says.

“Consumers are actively seeking healthier alternatives, which will likely continue throughout the category irrespective of the radical changes brought on by coronavirus. Sixty-three per cent of consumers report to eat healthily all or most of the time, showing just how crucial this segment of the market is in helping achieve overall growth. It’s important to have the right range available to shoppers, to help drive sales from those looking for healthier soft drink options.

“This means retailers should ensure their chillers are stocked up on lowersugar soft drinks, such as Lucozade Sport Low Cal, to capitalise on the ongoing trend towards lower-sugar choices and maintaining an active lifestyle.”

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what to stock

LOOK FOR THE HOUSEHOLD NAMES IT’S key to make sure you’re stocking the brands that are making major promotional pushes across online, TV and elsewhere, especially the ones that are motivating and educating shoppers on their exercise regimes.

These are the products that will be fresh in customers’ minds, or be the brand name shoppers are looking for en route to the gym, so having them in store can be a great source of impulse purchases.

“Lucozade Sport recently teamed up with England footballing superstar Raheem Sterling as part of a marketing campaign for new Lucozade Sport Cherry Kick, which is the latest addition to the £111m portfolio,” Gouldsmith continues. “The

campaign highlighted the importance of keeping hydrated during exercise even during the colder months.”

Retailers have reported that campaigns make a difference to sales, especially if a familiar face is also on the bottles.

“There is a sports culture for Lucozade Sport with parents coming in to buy it before taking kids to play football or whatever,” says Atul Sodha,

from Londis Peverills in Harefield, Greater London.

“The latest Cherry Kick with Raheem Sterling on there has done particularly well.”

Of course, it’s not just Lucozade that has have close brand associations with major sporting events. “Shoppers naturally associate the Carabao Energy Drink brand with sport due to the brand marketing and football sponsorships over the years,” says David Butcher.

“Carabao brand awareness correlates strongly with the latter stages of the Carabao Cup. For this reason, independent retailers should ensure the brand is prominent within chillers around January-March each year to benefit from the increased shopper awareness and demand.”

afraid to ask these customers if they’re looking for something specific.

Age range also plays a role in buying habits, according to Serge Khunkhun, from One Stop Woodcross in Bilston, West Midlands. “Protein products tend to be more popular with younger adults because they spend more time in gyms, and are more focused on their image,” he says.

top tips

Three take-homes for your store Lockdown exercise Despite the lockdown, there is still a need among people to exercise and therefore a demand for performance energy products. Think about how the earlier lockdowns affected sales and alter your lines accordingly.

Look out for marketing campaigns The brands that are getting the most media exposure are the ones that will be fresh in shoppers’ minds, especially if they’re tied in with celebrities. Make sure you have these names in stock.

Think about demographics According to CCEP, performance energy is particularly popular among 18-to-35-year-olds. If this is a big part of your shoppers, building up a dedicated performance energy range could be a great idea.

Three stand-outs for your soft drinks chiller Reign Total Body Fuel Amy Burgess, senior external communications manager at Coca-Cola European Partners, says Reign Total Body Fuel is the biggest performance energy drink in the UK. Alongside 200mg of caffeine, the recipe includes ingredients that help prevent muscle breakdown, improve blood flow and stimulate the release of growth hormones.

Carabao Mixed Berry Launched in convenience stores in February 2020, Carabao said at the time that berry-flavoured drinks were underrepresented in the energy drink sector. It contains 63 calories, which Carabao says is lower than its competitors.

Lucozade Sport Cherry Kick Making its debut in in April 2020, limited-edition Lucozade Sport Cherry Kick was launched in partnership with Manchester City and England footballer Raheem Sterling. Price-marked packs at £1.19 or two for £2.20 are available.

SUPPLIER

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WHO BUYS WHAT? ACCORDING to retailers, there are a number of factors determining who buys what energy products. Not all performance energy products are the same – they perform different functions and the more seriously someone takes their exercise, the more specific their shopping habits are going to be. If your store is close to a gym, sports field or running track, bear this in mind and don’t be

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Khunkhun also notes that isotonic drinks and Lucozade Originals tend to be more popular with younger consumers.

“With isotonics, it doesn’t matter what brand you have, whether it is Euro Shopper, Boost, Lucozade, Jack’s isotonic – it tends to be a pricedriven category.”

Amy Burgess, senior external communications manager, Coca-Cola European Partners “THE performance energy segment in Great Britain has grown at a rate of 62.7% over the past six months, supported by almost half of people making an effort to keep active at home. Research has shown that getting back into the gym is a priority for Brits as lockdown restrictions are relaxed, so we expect this growth to continue.

“Since launching at the end of 2019, Reign Total Body Fuel has become the biggest performance energy drink in GB, worth nearly £5m and more than three times bigger than its nearest competitor.

“The range was developed in response to growing demand among 18-to-35 year-olds for drinks that can help them achieve maximum results when they work out, without having to compromise on taste.”

#retailtogether

NEXT SESSION

Thursday 14 January 4.30pm

We know that it’s been one of the most challenging years in independent retail with the way you need to run your stores having changed almost overnight. We also know that with the lack of physical events taking place, there’s less of a chance to connect with like-minded retailers.

That’s why we started #retailtogether, an informal digital networking event to help independent retailers share experiences, discuss issues and ideas, and see a few friendly faces.

Join us every other Thursday at 4.30pm

For more information, contact Samantha Gunston 020 7689 0500 / @samanthagunston

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‘PEOPLE SEEM TO BE TREATING THEMSELVES MORE AT THE MOMENT’ THE RETAIL EXPRESS TEAM finds out what retailers anticipate for Valentine’s Day 2021

THE PROBLEM ROSES are red, violets are blue, but with a pandemic on, will Valentine’s Day come true? We speak to three retailers about how they’re preparing and where they think the Valentine’s Day profits are this year.

1

Sue Nithyanandan, Costcutter Epsom, Surrey

“WE have ordered a lot of �lowers and chocolates as we are going to have a special display for all our Valentine’s Day products. We will put up balloons and make a feature of it at the front of our store. The display will go up in mid-January and the �lowers will come in later, as I get them through Co-op.

“Prosecco and wine also sell well, and this year we are hoping to do speci�ic meal deals, such as steak, wine and a dessert. We also have a good selection of cards and I �ind premium ice-cream, such as Ben & Jerry’s and Häagen-Dazs, does very well.

“We also sell cuddly toys and strangely enough the chocolate roses on a stick have sold quite well over the past few years, as instead of having a single rose that will die, they look nice and you can eat them. In general, people seem to be treating themselves more at the moment.”

2

Vasanti Jesani, Bargain Booze Atherton, Greater Manchester

“UP to now, I haven’t done anything special for Valentine’s Day, but I have been doing some forward thinking this year.

We used to have a �lorist on our parade but they have closed, so I am thinking of doing in-store �lowers and possibly gift boxes, as these did well over Christmas. I will look at combining chocolates and wines. In general, I think consumers are spending more money and we have seen an increase in expensive wines being purchased. We are selling wines that don’t normally sell well and people are coming in speci�ically for offers they have seen on our lea�lets.

“I’m already getting the Valentine’s products in and starting to create an atmosphere in store with decorations such as ceiling hangers and stickers for the window. As a retailer I am evolving and concentrating more on the store and what we can do – and this feels like the next step.”

3

Faraz Iqbal, Premier Linktown Local, Kirkcaldy, Fife

“THE focus will be on �lowers and chocolates. We’ll put the �lowers in front of the counter and the chocolates in the front promotion bay which is opposite. Flowers and chocolates are bestsellers, but Prosecco and wine can also do well.

“I usually get the products in a few weeks before, when Premier’s monthly promotions change. However, most of the sales we make usually come in the last week as people leave it to the last minute. We bring our �lowers in the week before and keep them for Mother’s Day. “It is hard to predict Covid-19’s impact on the day, but there might be more sales due to the fact we are more convenient and people don’t want to go down the high street. That’s why more people shopped with us for Christmas. There might be an uplift in premium goods because people aren’t really going out, so some will have more money to spend.”

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