Retail Express – 5 November 2019

‘TAKE BACK OUR STOCK’ P3

5-18 NOVEMBER 2019 STRICTLY FOR TRADE USERS ONLY

The Glenlivet is a top 3 Malt brand in the UK Off-trade*

ORIGINAL BY TRADITION ENJOY THE GLENLIVET RESPONSIBLY *Source: AC Nielsen, Total Coverage, Value Sales, MAT to 15.06.19

SCOTTISH GOVERNMENT ANGER

BESTWAY’S NEW FEE

‘OUR COMMUNITY HAS OUR BACK’

Unfair ‘strict’ deposit return scheme exemption process to impact small stores

Handling fee allows delivery drivers to unpack stock and transport it into stores

How these retailers bounced back from shop theft thanks to their local relationships

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P4

BACK PAGE

WITHOUT YOUR SUPPORT, NONE OF THIS WOULD HAVE BEEN POSSIBLE

MAKING MORE FROM HOT DRINKS

How Jacobs Douwe Egberts is helping two retailers boost their sales P12-13 SUPPLIER ADVICE

12

R HOT BEVERAGES HOT SOLUTIONS FO

5-18 NOVEMBER 2019 STRICTLY FOR TRADE USERS ONLY

SS 1 coffee , RETAIL EXPRE olds in the UK buying most from two retailers get the WITH 24 million househ E EGBERTS to help joins JACOBS DOUW category their hot beverages ON FOCUS stores Bart Dalla-Mura have and customers, RETAILERS Jey Sivapalan and with very different in very different areashot beverages are a crucial category. to yet, for both of them, Egberts at Jey and Bart’s stores and share expert We joined Jacobs Douwe hot beverage displays hot help redesign their ing the stores’ coffees, teas and advice on merchandis chocolates more effectively.

JEY SIVAPALAN

1 Stop Convenience (Go Local), Derby

BEFORE

Store

with a for value, so products “OUR customers lookvery popular. We have a lot of low price per cup areso we need to be competitive on competition nearby, what people are looking for. It’s price while stocking different price ranges, from important that we offercoffee sales are doing well so far, value to premium. Ourpack sizes, but we’re not really sure especially the bigger the category.” how to grow sales in

EXPERT ADVICE CIGDEM LETTIERI

nt manager, Category developme Jacobs Douwe Egberts

1 3

2 Nielsen MAT 07.09.19, Market, 52 w/e 26.01.19, Kantar WPO – Total 07.09.19 4 – Total Market, 52 w/e HIM CTP 2018, Nielsen

at home cups of coffee are consumed “AROUND126 billon it vital for shops in residential areas, each year , making most of the category. Tastes are like Jey’s, to make the to hot drinks, with shoppers a good range, changing when it comes much as value. Jey has customers looking for quality as lines to inspire his grouping but we’ll add a few extra rearrange the fixture, n segmentatio to trade up. We’ll also clear applying related products together,that increases in price per cup, and introducing a layoutis at Jey’s sole discretion.” recognising that pricing

ACTION PLAN 1 2 3

related ing: We grouped Block merchandis all coffees together, products – for instance, sweeteners – to help and sugars next to what they need. nd shoppers easily fi We added big-selling Highlight top sellers: have a 19% value share who brands like Kenco, 2 This will widen the shopper . in instant coffee notice the section. reach and help customers the We have rearranged Prioritise premium: ‘price per cup’, putting coffee fixture around the top of the display to at pricing the premium lines up, recognising that trading encourage discretion. is at retailer’s sole

As BAT confirms plans for pack-swap scheme, retailers call on all tobacco suppliers ahead of the menthol ban:

‘TAKE BACK OUR STOCK’ P3

SCOTTISH GOVERNMENT ANGER

BESTWAY’S NEW FEE

‘OUR COMMUNITY HAS OUR BACK’

Unfair ‘strict’ deposit return scheme exemption process to impact small stores

Handling fee allows delivery drivers to unpack stock and transport it into stores

How these retailers bounced back from shop theft thanks to their local relationships

P2

P4

BACK PAGE

our say

Chris Dillon, editor – insight

Do you know the value of your data? I’d bet it’s way more than you think AS COSTCUTTER and Nisa join forces with food delivery apps like Uber Eats and Deliveroo, it highlights how the national debate about data and privacy is relevant to retailers.

While the benefits of partnering with a delivery app can help you reach new customers and drive profits, retailers have been quick to warn others about the need to protect their data.

“Uber Eats and Deliveroo know everything about the businesses that sell through them,” warned Nisa retailer Amrit Singh. With this information, they could – if the opportunity was right – set up their own ‘dark convenience stores’ in the same way they set up ‘dark kitchens’ to cut out middle men.

For most retailers, the value of data has been underestimated. Whether it’s EPoS, loyalty schemes or shopper apps, retailers THE DEBATE have been quick to partner with ABOUT DATA third-party businesses and trade their data. For years, the adage has AND PRIVACY been that indies know their shopIS RELEVANT pers better than chains, and this has been key to their competitive TO RETAILERS edge. Now, retailers are granting access to digital chains, meaning each store faces tough questions: 1. Do the short-term benefits of trading data for extra services outweigh the long-term risks?

2. Does trading away data reduce competitive advantage?

3. Can I introduce these services myself so I can keep my data?

I’d be really interested to hear your answers to any of these thoughts.

FOR MORE OPINION, GO TO PAGE 14 @retailexpress betterRetailing.com facebook.com/betterRetailing Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379

Editor – news Jack Courtez @JackCourtez 020 7689 3371

News editor Megan Humphrey @MeganHumphrey_ 020 7689 3357

Features editor Daryl Worthington @DarylNewtrade 020 7689 3390

Features writer Priyanka Jethwa @Priyanka_NT 020 7689 3355

Reporter Alex Yau @AlexYau_ 020 7689 3358

Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361

Reporter William Dodds @WilliamDoddsRN 020 7689 3350

Digital content editor Jody Porter 020 7689 3378

Editor in chief Louise Banham 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

Production coordinator Ashley Reid 020 7689 3368

Sales support executive Michela Marino 020 7689 3382

Head of sales Matthew Oliver 020 7689 3367

Head of marketing Jessica Salisbury-Fielder 020 7689 3352

Account director Charlotte Jesson 020 7689 3389

Managing director Parin Gohil 020 7689 3375

Senior account manager Natalie Reed 020 7689 3372

Management accountant Abigayle Sylvane 020 7689 3383

Account manager Adelice Tatham 020 7689 3366

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The five biggest stories this fortnight 01

Retailers oppose ‘strict’ DRS exemption process

Hussan Lal, owner of Park Licence Grocer in Paisley, said: SCOTTISH retailers have “We have fought hard for this hit back at a new warn- exemption and small retailing that the government’s ers will suffer if the process is deposit return scheme strict. I don’t have the space to (DRS) exemption process house a reverse vending mawill be strict.

The Scottish government outlined in September that stores would be able to apply for an exemption from the scheme.

Under the proposals, retailers would be granted exemption if there is an ‘alternative return point located within reasonable proximity to the premises, and the other operator of that return point has agreed to accept the return by consumers of items of scheme packaging on behalf of the retailer’.

An anonymous source revealed to Retail Express that the application process will go live in April 2020, but the government will be strict on who it grants exemptions to.

Despite retailers initially welcoming the exemption process, retailers have since claimed that a strict process will unfairly impact smaller stores.

WILLLIAM DODDS

02

New Hasbro distributor

HASBRO has appointed a new online distribution company, BrownBox, as its distributor agent for the convenience sector.

Spearheaded by Londis retailer Steve Bassett and Lucid Direct, BrownBox is an online cash and carry where retail-

04

ers can register to order Hasbro products delivered and charged to them by Smiths News and Menzies.

Available now are a range of 12 collectable Frozen 2 figurines sold in blindbags, with a RRP of £3.99 and a 25% margin.

Screen supplier anger

BOOKER and the National Federation of Subpostmasters (NFSP) have been challenged on their alleged recommendation of digital screen supplier Rhino Media Group (RMG).

A source said RMG had halted agreed payments to hun-

dreds of stores, leaving each up to £10,000 in debt.

Some Premier retailers claimed to Retail Express they had signed a deal with RMG after being told it was a Booker-approved supplier, which Booker denied.

chine, so I need an exemption.”

Retailer Linda Williams, of Broadway Convenience Store in Edinburgh, agreed that retailers would suffer.

“DRS is a huge burden on small shops and they will

03

Barclays’ PO U-turn

BARCLAYS has U-turned on its decision to stop customers withdrawing cash from Post Office stores after it was ‘persuaded to rethink’.

Announced on 8 October, independent retailers protested against the initial decision, and just 16 days later, Barclays

05

need to process significant volumes to even break even,” she argued.

However, another source claimed that Zero Waste Scotland had made no reference to the difficulty of the process.

announced that post offices would continue to be able to offer cash withdrawals.

Trade bodies warned the move could dramatically impact footfall, and NFRN national president Stuart Reddish said Barclays had used common sense to reverse the decision.

Costcutter results fall

COSTCUTTER saw a 25% fall in turnover during 2018, its latest results have revealed.

Turnover fell from £512m to £386m, while it confirmed its store count fell by 12% in same period.

At the end of 2018, 1,560

retailers operated under the Costcutter fascia, down from 1,776 a year prior.

Costcutter’s owner, Bibby Line Group, commented: “The number of retailers declined in the aftermath of Palmer & Harvey’s collapse.”

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

Indies call for menthol buy-back scheme

BY WILLIAM DODDS RETAILERS have called on tobacco manufacturers to follow British American Tobacco (BAT) in planning to swap out non-compliant stock after next year’s menthol ban.

A ban on menthol tobacco products is set to be introduced on 20 May 2020, and retailers have been advised by manufacturers to continue stocking menthol products right up until the ban.

When Retail Express challenged all four major tobacco companies to con�irm if

they would allow swaps of menthol stock for compliant stock after the ban, only BAT con�irmed it was “in the planning process on how to execute this”.

A spokesperson added: “Our representatives will support activities such as stock rotation as a measure to reduce their exposure.”

Vip Measuria, owner of One Stop The Prior Way in Derbyshire, praised BAT’s decision. He said: “We will stock tobacco until the ban because we know there is an agreement – it is a brilliant idea that all tobacco manu-

facturers should agree to.”

However, JTI, PMI and Imperial did not con�irm whether they would engage in a swap or buy-back scheme, with many saying they were still planning what support to provide to stores.

Measuria warned: “If there was a risk of leftover stock, I would start delisting tobacco products long before the ban comes into effect.”

Retailer Atul Sodha, of Peverills Londis Hare�ield in London, added: “They are making the decision to continue manufacturing this product, so they need

to support retailers.”

However, he did stress that retailers have a responsibility themselves to prepare. “Retailers should have

a countdown from January notifying the consumer of the ban, because most of them aren’t aware it’s happening,” he added.

12%

£39.5m

The overall percentage store count drop

express yourself “When our nearby branch reduced their hours, we worked hard to speak to our customers and sell the benefits of banking with the Post Office, and it was successful.

When Barclays said it would stop working with the Post Office, people were upset and vocal – a lot took to social media. Throughout, they had faith it would get resolved, probably more than I did, and the mood has definitely improved now Barclays have changed their minds.”

Vince Malone, Tenby Stores & Post Office, Pembrokeshire

Operating losses

£126m Turnover loss

the column where you can make your voice heard

READY MEALS: New direct-tostore premium ready meal supplier Life, Fork & Spoon is offering partnerships to independent retailers. Life, Fork & Spoon has no order frequency requirement and offers upright single and double branded f reezers at £750 and £1,250, respectively. Any freezers purchased also come with £250-worth of stock.

GUARDIAN: Guardian News & Media titles performed strongly during September, according to the latest newspaper ABCs. The Monday-to-Friday and Saturday Guardian saw month-onmonth sales up 0.5% and 2.7%, respectively, with Observer sales up 2.8% month on month.

Editor-in-chief at Guardian News & Media Katharine Viner said: “More people than ever are reading Guardian journalism.”

BAD WEEK

How did independents fare in Costcutter’s latest results?

The number of fascia stores lost

GOOD WEEK

betterRetailing.com/news/ guardian-strong-september

2018 ANNUAL RESULTS

215

03

LONDIS: Booker has apologised to Londis retailers after an IT glitch delayed their fresh deliveries. The glitch meant the wholesaler couldn’t process fresh deliveries on 25 October.

A Booker spokesperson said: “This has now been rectified.

We would like to sincerely apologise to any customers that may have been affected.”

WHSMITH: WHSmith has reduced the support its Local franchisees receive after confirming it will not renew their contracts. Retail Express understands franchisees will have the opportunity to join its wholesale model upon their contract expiring. However, the promotional support they had received previously would not be the same. betterRetailing.com/news/ whsmith-reduces-support

What does Barclays’ cash withdrawal decision backtrack mean for you?

“While we deserve to enjoy this victory, let us not forget the warning Barclays made [about the sustainability of PO banking]. I get the impression Barclays and others will not be renewing their contract in three years. This is why it’s crucial we are able to set up a PostBank. It appears Barclays would welcome such a proposition as it would relieve them of their social responsibility if the network could stand on its own two feet.”

Mark Baker, Larkhill Post Office, Wiltshire

“Our local MP wrote to the bank to ask them to change their minds about withdrawing from the Post Office. I’m not sure what has made Barclays reverse course, but the knowledge they were going to lose customers must have played a part. While this will help independent retailers, the most important thing for the sustainability of the post office network is for Post Office to change its attitude towards us retailers.”

Jimmy Patel, The Hollow Post Office, Northampton

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

Vince Malone

NEWS

04

Bestway’s delivery handling fee Sood, of Neelam Convenience & Post Office, said: “The handBESTWAY has become the ball fee makes a big difference latest wholesaler to intro- for the smaller retailer because duce a delivery handling fee- it suddenly means you have to for retailers. either increase your own pricThe optional charge (£30 in- es or take a hit. If you’ve got a cluding VAT), called a ‘handball typical elderly couple running fee’, is applied to retailers who a shop, it also makes it physiwant their delivery drivers to cally harder for them.” help unpack stock and transThe wholesaler has also inport it into store. Retail Express creased the minimum order KEL0223_Elf On the Shelf Trade Ad_RE-Mini_AW1.pdf 1 understands the fee is new. requirement (MOQ) for free Bestway customer Gaurave delivery from £750 to £1,000, ALEX YAU

excluding tobacco. It is the second time the company has increased the MOQ this year, and any order between £500 and £1,000 will incur a £25 service charge. Orders under £500 can only be collected from a depot.

The increase in MOQ means Bestway’s delivery terms are now in line with Booker Wholesale’s.

Booker had stepped up 17/09/2019 17:00 enforcement of this policy in the spring.

A Bestway spokesperson said: “The increase brings us in line with the industry and follows a review of our delivered business, taking into account the increasing costs in both labour and logistics against the ongoing challenging market and economic uncertainty.

“This increase allows us to be more efficient in our delivery operations and to provide a better service for customers.”

Symbol group enters online delivery deal COSTCUTTER has been chosen as Uber Eats’ first UK convenience partner for online grocery deliveries.

The partnership allows customers to order groceries online for home delivery from participating stores.

Several Costcutter stores had already trialled the service with the provider, and

the symbol group claims they added £1,500 to their monthly sales as a result.

Costcutter marketing director Sean Russell said: “Our partnership with Uber Eats is a great way to reach new customers and demonstrates our continued commitment to helping our independent retailers thrive.”

BUDGENS OWNER UPS THE ANTE ON SUSTAINABILITY

A BUDGENS owner ramped up his commitment to sustainability by launching a plasticfree range in his largely plastic-free store.

Andrew Thornton, of Thornton’s Budgens in north London, unveiled the ‘Unpackaged’ range last month. It allows customers to refill their

own containers with 200 products, such as milk, peanut butter and orange juice.

The new range has been launched in partnership with environment group A Plastic Planet, and Thornton’s Budgens co-leader Surma Bagum claimed customer response has been “really positive”.

Crime action pledged KENT Police have pledged to place more officers “on the road” to provide retailers with the support they need.

Following a meeting with Kent Police and Crime Commissioner Matthew Scott last month, NFRN South East District president Bhavesh Patel said: “Matthew told us that across Kent, any type of crime

was considered a serious crime, and he assured us that if any officers were not taking this seriously, he would take action.”

5-18 NOVEMBER 2019 betterRetailing.com

05

Cadbury’s 2020 Easter range PRIYANKA JETHWA MONDELEZ International has revealed its 2020 Easter range, �illed with new treats and campaigns.

Delia Lendais-Metral, Easter brand manager at Mondelez, said there are three main periods for retailers to keep in mind when it comes to Easter.

The �irst period runs from January to Valentine’s Day. During this time, Easter sales come from seasonal impulse lines, such as Creme Egg, Oreo Egg and Mini Eggs.

“Thirty-one per cent said they bought Creme Eggs to share with family before Easter, while 37% said they bought Creme Egg to eat be-

fore Easter for themselves,” said Lendais-Metral.

The second period runs from after Valentine’s Day to Mother’s Day. This part of the season is where range and visibility become more important, she added.

“While there are nine fewer days in this key second part of the season than in 2019, the opportunities are considerable if stores stock the right range.”

The �inal period, which runs from after Mother’s Day to Easter Sunday, is where gifts are crucial, with the confectionery category worth nearly £300m.

“The top-selling formats during this part of the season

are shell eggs, whether they are medium, large, giant or luxury,” said Lendais-Metral.

UK’S #1

To view the whole range, visit betterRetailing.com and search ‘Cadbury Easter 2020’

JUICE DRINK BRAND*

Haribo introduces two All I want for Christmas new £2 gift boxes is… Walkers DESIGNED for gifting, Haribo is adding to its Christmas line-up with Puck Penguin and Pip Polar Bear gift boxes (200g).

Pip Polar Bear is packed with polar bear and pawshaped jelly pieces in raspberry and blackcurrant �lavours.

Puck Penguin, a jelly and foam piece, comes in three �lavours, including peach & vanilla, blackcurrant & vanilla, and strawberry & vanilla.

Both varieties have an RRP of £2 and are available now from all major wholesalers.

The rest of Haribo’s Christmas gifts sets include Starmix and Giant Strawbs chests, and Sweet Medley,

which brings together favourites including Starmix, Tangfastics, Supermix, Giant Strawbs, Jelly Beans and Jelly Babies Double Trouble.

Horlicks launches chocolate pods FOLLOWING the launch of Horlicks Original Pods, the brand has now launched new Horlicks Chocolate Pods.

Compatible with Dolce Gusto pod machines, Horlicks Chocolate Pods are designed to offer consumers a convenient, easy-tomake drink.

Michelle Younger, marketing manager at Aimia Foods, said: “After the launch of Horlicks Original Pods earlier this year, it was a natural progression to extend our pod range.

“We believe the launch of Chocolate pods will broaden our appeal across all age

ranges and is the gateway to a younger consumer.”

UK retail sales of pods are now worth over £168m, and it’s the fastest area of growth within the hot milky drinks sub-category.

THIS Christmas, PepsiCo is teaming up with Mariah Carey for an on-pack promotion and campaign for Walkers.

The promotion will run across the Walkers core range, which will feature Carey’s face with the tagline ‘All I want for Christmas’, and offers shoppers the chance to win prizes, ranging from game consoles, to designer headphones, cash and festive socks.

Carey will also be centre stage in the new Christmas TV advert for 2019, supported by digital and in-store activity.

Wayne Newton, Walkers head of marketing at PepsiCo, said: “The festive season is the biggest sales opportunity of the year, particularly for

the savoury snacks category, worth £645m and growing at 6.5% year on year.”

Coca-Cola Energy teams up with the BBC COCA-COLA Energy is targeting music lovers with a new campaign that aims to inspire the next generation of musicians at BBC Introducing Live 2019.

The brand will host talks and masterclasses with musicians at the event at London’s Tobacco Dock.

The Borderline, presented

by Coca-Cola Energy, will give almost 20,000 budding artists

the opportunity to learn more about songwriting and production, grassroots venues and becoming an independent artist, as well as a discussion about mental health in the industry.

The partnership will also be supported by a wider campaign aimed at young adult consumers, including a multimillionpound investment and sampling campaign.

RIBENA is a registered trade mark of Lucozade Ribena Suntory Ltd. Light - 80% less calories than most regular soft drinks.

EXT IRI MarketPlace GB, value sales, latest 52 weeks 28.07.19

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5-18 NOVEMBER 2019 betterRetailing.com

07

Reign set for c-store UK rollout CHRIS DILLON COCA-COLA European Partners is bringing US brand Reign to the UK to target �itness-focused shoppers.

Available in four �lavours – Melon Mania, Razzle Berry, Lemon Hdz and Sour Apple – Reign taps into the �ledgling ‘performance energy’ sector, a segment worth $400m (£310m) in the US and growing at 41%.

The segment is de�ined by 18-to-35-year-old consumers who are interested in fashion of �itness, showing off their regimes on Instagram and following �itness social media personalities.

Other drinks in the perfor-

mance energy sector include brands such as Nocco and Bang.

Reign targets this audience by containing 200mg of caffeine, no sugar, no calories and branched-chain amino acids, which prevent muscle breakdown, as well as B3, B6 and B12 vitamins.

The company is urging retailers to stock Reign next to sports drinks. It is available now, with £1.49 price-marked packs to follow in January.

Retailers will be able to promote the drink’s ingredients and bene�its with PoS. Simon Harrison, Coca-Cola European Partners commercial development vice president, said within eight months of launching in the

US, Reign gained a 25% market share of workout energy drinks sales.

124 500ML

B OT T L E S PURCHASED

E V E RY M I N U T E *

Alpro bolts onto TV A warming new ad with ‘Good for you’ ad from Ready Brek ALPRO is joining forces with athletic legend Usain Bolt in its new TV advert to push sales of plant-based foods.

Hitting screens 18 November, the ‘Good for you’ campaign features an ‘everyday’ man going on a run after drinking an Alpro smoothie, when Bolt dashes past him mid-run. However, in the

end, the man takes over the legendary Jamaican sprinter.

The campaign will also span YouTube, Facebook, Instagram and Twitter, including shopper marketing, and Alpro will be partnering with BBC Good Food to target millennials.

Retail sales of plant-based food and drink are currently worth £396m.

READY Brek is back with its ‘Central heating for everyone’ TV ad, and for the �irst time is extending it to other media channels.

The brand is now worth £10m and is growing at 18% in value, making it the fastest growing in the cereal category.

The campaign will run throughout this month and

will be supported by an onpack promotion offering consumers the chance to win free heating for a year, worth £1,200. ‘Golden tickets’ will be hidden inside packs.

Corresponding in-store promotional activity, as well as social media support, including Ready Brek Facebook and Instagram activity, will also take place.

Bake in style with cute cupcake cases

New rum is an authentic blend of cultures

AVAILABLE to independent retailers now, Dr. Oetker is expanding its kids’ baking range with new themed cupcake cases.

Dr. Oetker Unicorn Baking Cases and Dinosaur Baking Cases will come in cases of 50, each with an RRP of £1.35 (six units per case).

The Rainbow Cupcake Cases will come in cases of 72 with an RRP of £1.79 (six units per case).

The launch follows the supplier’s Unicorn and Dinosaur Sprinkles and Dinosaur and Unicorn Wafers earlier this year.

EQUIANO is a new rum that blends premium liquids from Africa and the Caribbean, available with an RRP of £49.95 with an ABV of 43%.

The rum contains no additives, and no added sugar, spices or colours. The liquid is a blend of tropically aged molasses rums from Bajan

producer Foursquare, with liquid distilled in Mauritius at Gray’s Distillery. It makes Equiano the �irst rum made from two distilleries, on two different continents.

A percentage of pro�its from every bottle sold will go to a chosen equality-focused charity each year.

RIBENA is a registered trade mark of Lucozade Ribena Suntory Ltd. Light - 80% less calories than most regular soft drinks.

EXT IRI MarketPlace GB, value sales, latest 52 weeks 28.07.19

08

CATEGORY ADVICE

In partnership with

GET INVOLVED

To increase your sales, call 020 7689 0500 or visit betterRetailing.com/ increasing-impulse-sales

INCREASING IMPULSE SALES RETAIL EXPRESS joins MARS WRIGLEY’s field sales leader, MIKE FITZPATRICK, as he visits two retailers to advise how creating impactful displays and tapping into trends can drive impulse purchases

THE OPPORTUNITY

62% of gum purchases are unplanned RETAILER

SHAILESH PAREKH Nisa Local New Invention, Wolverhampton, West Midlands

EXPERT ADVICE

MIKE FITZPATRICK Field Sales Leader, Mars Wrigley

“I HAVE a large range, but I’m nervous to stock gum on the counter because I prefer to have an uncluttered till area.

Knowing the right products to stock can also be challenging, so I’d like to find out which are the bestselling lines.”

“UNDERSTANDING where to display products to maximise visibility can be challenging, as well as knowing the top-selling lines to stock. We’ll look at how we can bring Shailesh’s gum closer to the customer, and introduce new lines, including bottle formats.

With Vicky, we’ll make the category more visible so these products can be easily noticed by customers as they are paying for other items.”

RETAILER

VICKY ONIONS

Vicky’s Convenience Store, Bromsgrove, Worcestershire

“WE have very limited space in our store, meaning it can be difficult knowing where to display products to get the best results. My gum fixture is positioned on the till, but customers often find it hard to find popular lines.”

WHAT HAPPENS NEXT? Shailesh and Vicky will make changes following the expert advice they receive from Mike during store visits.

We will share the changes they make and monitor their results.

Look out for Retail Express on

19 NOVEMBER

5-18 NOVEMBER 2019 betterRetailing.com

09

Accolade Wine’s festive promos CHRIS DILLON ACCOLADE Wines is investing £1m in an on-pack Christmas campaign across its Echo Falls, Hardys, Mud House, Jam Shed and Stone‘s Ginger brands under the strapline ‘It’s treating season’.

Accolade is also supplying branded bags to retailers to appeal to the 22% of consumers who buy wine as a gift over the Christmas period.

Echo Falls will launch an on-pack promotion, giving away free disco ball key rings with ProsEcho Falls, Echo Falls Summer Berries Vodka and Echo Falls Pink Gin. Later in the season, additional Echo

Falls varieties and Fruit Frusions will give customers the chance to win a full-sized disco ball.

Accolade will also launch limited-edition neck tags on Hardys VR, Stamp, Nottage Hill and Crest, promoting it as the UK’s number-one wine brand.

Neck tags on Jam Shed will promote its use as the base for making mulled wine, while Mud House tags will give consumers the chance to win adventure weekends.

Stone’s Ginger neck tags will encourage consumers to try Stone’s Gin with Ginger Ale. Paul Hillier, head of trade marketing at Accolade

Wines, said: “Retailers can depend on Accolade Wines to drive their wine sales over the all-important Christmas trading period.”

STOCK

UP NOW! B ACK ON TV SOON

Funtime milk launches redesign

Dutch gin distilled to original 1689 recipe

FLAVOURED milk brand Funtime is relaunching its range with an updated pack design featuring a modern look and new health claims.

With the ready-todrink �lavoured milk sector growing by 13% year on year, the brand is outgrowing this at 26% year on year.

The 500ml bottles have been redesigned to appeal to young adults looking for an alternative to carbonated soft drinks, and claims read ‘virtually fat-free’, ‘source of calcium’ and ‘no added �lavours or preservatives’.

AMSTERDAM Craft Gin Company has launched a new premium gin, Gin 1689, which has been distilled to an original 1689 recipe.

The 330-year-old recipe is from the time of King William III of England and Queen Mary II, and was found in the archives of the British Library.

Taking a trip down the CBD lane

Get things popping with Butterkist

TRIP is a new CBD-infused soft drinks brand to join the market, aiming to capitalise in a sector that by 2020 is projected to be worth £1bn in the UK. It aims to target millennial shoppers with its modern and contemporary packaging, and is available in three �lavours with an RRP of £2.99.

Flavours include two sparkling, Elder�lower Mint and Peach Ginger, and a still Cold Brew Coffee.

It contains no added sugar and 15mg of CBD per can.

RETURNING to screens and billboards this autumn, KP Snacks is investing £2m behind Butterkist.

Designed to tap into the key Christmas sales period, the outdoor advertisement will carry the strapline ‘Get things popping’, and will run until the end of this month.

Kevin McNair, marketing

Distilled with the same botanicals as the 1689 recipe, the gin is a classic juniper style spirit in a royal blue bottle with gold lettering.

Other botanicals include dried quince and apple, lemon and orange peel, nutmeg, aniseed and clove.

It has an RRP of £35 (70cl) and is available from HT Drinks.

director at KP Snacks, said that 79% of consumers snack at home, with the big night in segment growing at 10.3% year on year.

A further 45% of consumers say snacks are a must-have for evenings in, making a dedicated big night in �ixture essential for retailers wanting to drive sales in the run-up to Christmas.

RIBENA is a registered trade mark of Lucozade Ribena Suntory Ltd. Light - 80% less calories than most regular soft drinks.

EXT IRI MarketPlace GB, value sales, latest 52 weeks 28.07.19

PRODUCTS

10

Nationwide rollout for Irn-Bru CHRIS DILLON FOLLOWING its launch in Scotland in July, Irn-Bru’s Energy variety is now available to retailers in England, Wales and Northern Ireland.

Irn-Bru Energy is available in a sugar version, with an RRP of £1.19 or in 99p pricemarked packs (PMP), and a sugar-free version, which has an RRP of £1.09 or comes in 89p PMPs. Its sugar version is subject to the soft drinks sugar tax.

The launch taps into the �lavoured energy sector, which makes up 34% of carbonated energy drinks and is growing faster than original energy. The company urges

retailers to stock the lines next to energy products such as Coca-Cola Energy and Red Bull, not next to its core carbonate range.

Adrian Troy, marketing director at Barr Soft Drinks, said energy is the most profitable soft drinks segment for retailers, with more than 33% of soft drinks sold in convenience stores being an energy drink.

“In Scotland, Irn-Bru Energy is selling three times as fast as Coca-Cola Energy, but Irn-Bru is also growing at 9% in England. So, we are con�ident that demand will be high,” he added.

The launch will be backed by outdoor and digital advertising next year.

Sweet & Salty Nut gets a new design GENERAL Mills has revamped the look of its Nature Valley Sweet & Salty Nut bars, which are available in packs of four for £2.40.

The packs focus on improved taste and better-foryou messages, alongside having a more premium feel with new fonts to help consumers differentiate between the varieties – Dark Chocolate with Nuts and Roasted Peanuts.

Kat Jones, marketing manager for Nature Valley, said: “Nature Valley is growing ahead of the category at 7.1%, and over the past 12 months we’ve seen the brand excel in the convenience channel, as we have tapped into impulse buyers looking for snacks while on the go.”

New CBD variety for Blockhead gum BLOCKHEAD has introduced a Cannabidiol (CBD) variety to its range with an RRP of £4.99 per pack (seven pieces).

Available to Nisa, Costcutter, Londis and Budgens retailers, Danny Lowe, the company’s chief executive of�icer and founder, said the gum is vegan and sugarfree, and contains 3mg of CBD per gum.

“CBD is fast becoming the hottest trend in supplements and we were keen to explore how we could partner the taste of gum with the natural bene�its of CBD. “Consuming CBD in gum form allows users to not only control their dosage more closely, but also to eas-

ily transport it on the go, allowing them to enjoy the effects whenever and wherever they desire.”

5-18 NOVEMBER 2019 betterRetailing.com

Border Biscuits gets famously fiery WITH sales increasing by 38% in the past two years, Border Biscuits is backing its Dark Chocolate Ginger with a new ‘Famously �iery’ campaign.

The £3.5m campaign includes TV and online advertising, with the aim to increase the brand’s market share of the special treat category from its current 11%.

Reap the rewards of Call of Duty BRITVIC is partnering with Call of Duty: Modern Warfare for its latest on-pack promotion for Mountain Dew. The promotion will be printed on packs of Mountain Dew Citrus Blast, RRP £1.54, and Mountain Dew No Sugar, RRP £1.39, where consumers can redeem codes – enabling the person to progress through the game more quickly – and will be supported with in-store activity, outdoor media, competitions and social media.

Florence Brain, director of channel operations for outdoor at Britvic, said: “Mountain Dew as a brand has a strong reputation among the gaming community. Having supported the industry for

a number of years, the latest partnership with Call of Duty: Modern Warfare is perfectly placed to drive further cross-category sales.

“We suggest retailers implement a second site close to till points to target impulse purchases.”

It follows the company announcing its plans to remove more than 90% of plastic from its packaging and reducing weight by 50%.

John Cunningham, Border Biscuits managing director, said: “We are a growing family-owned business and we have an ambitious strategy to continue to build sales.”

Nisa focuses on Co-op frozen lines NISA is expanding its frozen range with a new catalogue for its retailers that details Co-op own-label and branded products.

The brochure has more than 100 pages detailing products alongside tips to increase sales of the frozen category in store. PoS is also available to retailers.

Tracey Redfearn, Nisa brand manager, said: “Ownbrand sales are driving growth in several frozen categories including �ish, meatfree, vegetables, ready meals and pies.

“There are more than 70 new Co-op own-label products featured in the brochure and the range has examples of innovation within frozen

to meet changing trends within the market, such as Co-op Good as Gold low-calorie ice cream, Co-op Incredible meat-free burger and the Co-op free-from range.”

Budweiser Brewing’s Huggies promises to new bottle editions cut its plastic use BUDWEISER Brewing is rolling out 200,000 limitededition bottles featuring nine designs as part of ‘Beck’s artist series’.

The printed bottles have ink and varnish applied directly to the glass for a ‘no label’ look, with full 360 bottle decoration and a premium design.

Simon Gerdesmann, the company’s digital object printing and Tattoo Alpha Plant site manager, said: “We are excited

that we now have a way to combine a digital print and a premium bottle design which enables our beer brands to deliver unique and varying messages on the bottles.

“Premium small batch productions for speci�ic events or moments are now possible four weeks faster than the traditional bottle labels – from designing to having it on the shelf, where it will de�initely stand out from the pack.”

KIMBERLEY-CLARK has pledged to remove plastic from its baby wipe range, Huggies, in the UK over the next �ive years.

By the end of this year, it will remove excess packaging from inside larger multipacks, including its 12- and 18-packs.

In addition, the brand is aiming to be the �irst baby wipe brand to label the plastic content of its wipes on pack.

The changes, which will be introduced this year, form part of a long-term strategy to eliminate plastic in Huggies wipes.

We’ve had a reďŹ t

Faster access, 24/7 Refreshed membership packages Recommended content based on your preferences New tools and downloads Plus all the exclusive news and insight crucial to making better-informed business decisions, better stocking and pricing comparisons, and better relationships with your shoppers — and suppliers Harness the power of

to improve your bottom line.

12

SUPPLIER ADVICE

HOT SOLUTIONS FOR HOT BEVERAGES WITH 24 million households in the UK buying coffee1, RETAIL EXPRESS joins JACOBS DOUWE EGBERTS to help two retailers get the most from their hot beverages category RETAILERS Jey Sivapalan and Bart Dalla-Mura have stores in very different areas and with very different customers, yet, for both of them, hot beverages are a crucial category.

We joined Jacobs Douwe Egberts at Jey and Bart’s stores to help redesign their hot beverage displays and share expert advice on merchandising the stores’ coffees, teas and hot chocolates more effectively.

BEFORE

FOCUS ON

JEY SIVAPALAN 1 Stop Convenience Store (Go Local), Derby “OUR customers look for value, so products with a low price per cup are very popular. We have a lot of competition nearby, so we need to be competitive on price while stocking what people are looking for. It’s important that we offer different price ranges, from value to premium. Our coffee sales are doing well so far, especially the bigger pack sizes, but we’re not really sure how to grow sales in the category.”

EXPERT ADVICE

ACTION PLAN

Category development manager, Jacobs Douwe Egberts

1

Block merchandising: We grouped related products – for instance, all coffees together, and sugars next to sweeteners – to help shoppers easily find what they need.

2

Highlight top sellers: We added big-selling brands like Kenco, who have a 19% value share in instant coffee2. This will widen the shopper reach and help customers notice the section.

3

Prioritise premium: We have rearranged the coffee fixture around ‘price per cup’, putting the premium lines at the top of the display to encourage trading up, recognising that pricing is at retailer’s sole discretion.

CIGDEM LETTIERI

1 3

Kantar WPO – Total Market, 52 w/e 26.01.19, 2 Nielsen MAT 07.09.19, HIM CTP 2018, 4 Nielsen – Total Market, 52 w/e 07.09.19

“AROUND 26 billon cups of coffee are consumed at home each year1, making it vital for shops in residential areas, like Jey’s, to make the most of the category. Tastes are changing when it comes to hot drinks, with shoppers looking for quality as much as value. Jey has a good range, but we’ll add a few extra lines to inspire his customers to trade up. We’ll also rearrange the fixture, grouping related products together, applying clear segmentation and introducing a layout that increases in price per cup, recognising that pricing is at Jey’s sole discretion.”

5-18 NOVEMBER 2019 betterRetailing.com

In partnership with

13

Promotional feature

JACOBS DOUWE EGBERTS’ TIPS FOR YOUR STORE

THE OPPORTUNITY

£13.05

is the average spend by a convenience coffee shopper per trip3 – double the average

FOCUS ON

BART DALLA-MURA Tysoe Village Stores, Warwickshire “MY store caters to affluent shoppers and those looking for value. I have to cater to all these different needs, as well as offering niche products. Hot beverages are an important category for me, but I don’t have elastic shelves, so deciding what to stock is a challenge. Customers come here to do their weekly shop, so if I’m missing some of those niche products, I’ll miss the sale.”

EXPERT ADVICE

62%

of hot beverage sales come from coffee, making it key for convenience stores4

Getting hot beverages right is vital for driving sales and boosting basket spend

1

Block merchandise related categories and product groups together on each shelf.

2

Coffee is the biggest category within hot beverages – make sure your fixture reflects this.

BEFORE

3 4

Offer shoppers choice by stocking premium and value options.

Encourage impulse purchases with secondary sitings near your tills.

ACTION PLAN 1

Specialist ranges: We added machine pods and capsules, as these will resonate well with more affluent shoppers looking for specialist products.

2

Coffee focus: We moved coffee to the top shelves – replacing hot chocolate – as it is responsible for the most sales and should increase shopper spend.

3

Secondary siting: We put cappuccino and latte sticks on a separate promotional unit close to the till to encourage impulse buys.

CIGDEM LETTIERI

Category Development Manager, Jacobs Douwe Egberts “TWENTY-FOUR million UK households buy coffee1, meaning whoever your customers are, it’s important to get your hot beverage range right. Bart has a good selection of hot beverages, covering premium and value-added lines. We’ll rearrange his fixture, putting coffee at the top instead of hot chocolate.

We’ll also introduce some more specialist products, to attract customers who are looking for more premium coffee products.”

GET INVOLVED

WHAT HAPPENS NEXT? Over a six-week trial period, Jey and Bart followed Cigdem’s expert advice and we tracked the sales data.

Keep a look out for Retail Express on

19 NOVEMBER For more advice and tips, and to see more of Jey and Bart’s stores, go to betterRetailing.com/hot-solutions-for-hot-beverages

14

DON’T MISS THE 15 NOVEMBER ISSUE OF RN

OPINION LEADING INDUSTRY OPINION ON THIS FORTNIGHT’S HOT TOPICS

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

BARCLAYS: How has the bank’s

U-turn been received?

“OUR decision provoked a great deal of public and private debate. Ultimately, we have been persuaded to rethink our proposals by the argument that our full participation in the Post Of�ice Banking Framework is crucial at this point to the viability of the Post Of�ice network.”

“WE are relieved that common sense has prevailed at Barclays. NFRN members, their customers and local communities can all breathe a sigh of relief that Barclays customers can continue to access their cash from sub post of�ices.” Access to cah is important to the daily lives of millions.”

Jes Staley, chief executive, Barclays

Stuart Reddish, national president, NFRN

Wholesalers must open their doors to the public before they’re shut for good

How to make sure your new staff members hit the ground running

PLUS

RETAIL CRIME: Why is it so important for indies to report it?

Retailers share their ideas for investment in the new year

D WS AN FOR NE TITLE ADING THE LE

THE LEADING TITLE FOR NEWS AND CONVENIENCE RETAILERS THE LE ADING ILERS TITLE E RETA FOR NE ENIENC WS AN CONV D CONV ENIENC E RETA cret se s ILERS Nisa’ plans Winning

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Patrick Holdaway, chief inspector, National Business Crime Centre

“THE continuing trends of the Of�ice for National Statistics �igures showing a decrease in the overall number of shop thefts being recorded by the police do not re�lect what we see in our sector. We urge retailers to report all incidents of shop theft to provide an accurate picture to police forces.”

James Lowman, chief executive, ACS

LEGISLATION: What is behind Scotland’s energy drink consultation?

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“THERE is a massive amount of under-reporting. We get a lot of people telling us that crime is happening, but when we look at our own data, it doesn’t support the claims. Hopefully the Home Of�ice consultation results will come up with a plan to support small businesses.”

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

Do you?

ORDER YOUR COPY from your news wholesaler today or contact Kate Daw on 020 7689 3394 TO ADVERTISE in RN, please contact Matthew Oliver on 020 7689 3367

“WE welcome the leadership shown by many retailers in stopping their sales to young people under the age of 16.

The purpose of this consultation is to ask whether this is enough and, in particular, whether mandatory measures are needed.”

MSP Joe Fitzpatrick, Scottish minister for public health, sport and well-being

“In our view, a voluntary approach to the sale of energy drinks has worked well.

There is an ever-growing list of age-restricted products on offer and a mandatory approach will place a lot more pressure on retailers and add to the overall compliance burden.”

A mandatory approach will place more pressure on retailers

John Lee, head of public affairs, SGF

RECYCLING: What will no business rates on a DRS mean?

We have made a strong case for this rates relief

“RETAILERS will be critical to the success of our planned DRS and by introducing rates relief, we are supporting them to play their part. I look forward to the introduction of the scheme and the positive change in behaviour it will lead to.”

“WE have made an extremely strong case for this business rates relief and we are really proud to say that the Scottish government has listened and delivered something of real value to the industry that will genuinely bene�it retailers.”

Nick Everitt, director of advisory EMEA, Edge by Ascential

Pete Cheema, chief executive, SGF

LETTERS

5-18 NOVEMBER 2019 betterRetailing.com

15

Bay Bashir

Letters may be edited

Belle Vue Convenience Store, Middlesbrough

Christmas is the time to get new customers and reward staff

‘I’m still paying for PayPoint even though I’ve sold both my shops’ I’M having issues with PayPoint. I used to have two units in Croydon. I sold one of them – Marv’s, on Sydenham Road – at the start of the month.

My contract with PayPoint has been transferred under the new owner’s name, but I am being asked to pay £432 for some reason.

The second unit I used to own was AC Foods Limited, on Norfolk House. This is now a restaurant, but PayPoint is trying to charge me £500 plus £100 VAT for picking up and decommissioning an EPoS system during my time there.

Arjun Patel, former owner of two stores

A spokesperson for PayPoint responded: “With regard to Mr Patel’s �irst site, his card services contract was not transferred to the new owner, so the £432 is for the early termination of that contract. For his second site, this is a standard removal charge for the technology in store. Although

TWEETS OF

Mr Patel terminated this contract early, too, this charge was waived in full due to the circumstances.”

THE WEEK

WIN £50-worth of Chocomel stock

Tweet us to get featured!

@retailexpress

CHRISTMAS is the most important and profitable time of the year for all five of my stores.

It’s the time to get new customers through the door and into your shop.

However, it’s also an important time to think about your staff.

In the run-up to Christmas, I try to personalise the rewards I give to all Each issue, one of seven top of my employees. retailers shares advice to This means not make your store magnificent just giving them a bonus, but also throwing in something extra that I know they’ll like, such as a bottle of champagne.

You want to have a warm and positive atmosphere in your shop, and that means happy staff on the shop floor.

Every year, we have a Christmas fancy-dress competition, with the customers voting on the winners. This helps my staff let their hair down, and it gets my customers involved.

My stores open on Christmas Day and Boxing Day, and this can be a sensitive issue. I’ve found the fairest and easiest way is to let all of my staff know they’ll be expected to work at least a few shifts over Christmas.

I make it so they’ll only be doing short, four-hour shifts, and then, where I can, I let them pick the ones they’d prefer to do. For instance, people who have young children are unlikely to want to work on Christmas morning, so I do my best to help them avoid doing that.

Those working on Christmas Day and Boxing Day don’t have to wear a uniform – I find this helps create a more relaxed, festive atmosphere. Again, it’s all about treating your staff with respect, and letting them know that you appreciate what they do.

Thanks for having me today @wingyipstore!

Although the company predominantly serves trade customers, it’s seen increasing demand from normal retail shoppers and has been investing in vegan and coffee trends. Lots for independent retailers to learn. @AlexYau_ First Minister makes big announcement on DRS – business rates will not be levied on RVMs. great news and will help retailers invest in the tech they need to make DRS work @envipco @TOMRAGroup @orbit_agency @ScotGrocersfed

RETAIL Express has teamed up with FrieslandCampina to give away £250-worth of product, split between five lucky retailers.

The prize consists of new luxury chocolate milk Chocomel. One of the Netherlands’ best-kept secrets, the velvety, smooth and creamy chocolate drink has only recently been introduced to the UK.

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.

From 1 November, all the convenience stores in the village of #Chartham will be charging 5p per plastic bag. All the monies raised by doing this will be going to a local cause. #NKMinimart #PremierShalmsfordSt #AUMNewsagents @ShopOnTheGreen

Get in touch

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

CATEGORY ADVICE

In partnership with

SELLING LIKE A TREAT

EXPERT ADVICE JOY HEWSON Team Manager representing Mars Wrigley

RETAIL EXPRESS catches up with MARS WRIGLEY to find out how its category advice has increased confectionery sales for two retailers CONFECTIONERY is a prime category for retailers, so having the right products for your customers is crucial. In August, Retail Express and Mars Wrigley representatives Joy Hewson

BEFORE

and Aileen Penman visited two retailers near Birmingham to share category advice to help improve their core ranges and displays to make them easier for customers to shop.

“I’M pleased to see that Shailesh’s sales have increased. He’s got a great store with good footfall, so it shows that by following our advice to forwardface the block bars and make sure key lines such as duo bars are grouped together can help increase sales.”

THE RESULT

4%

AFTER

The increase in Shailesh’s sales since following Mars Wrigley’s merchandising advice

FOCUS ON SHAILESH PAREKH Nisa Local New Invention, Wolverhampton, West Midlands

CHALLENGES DISCIPLINED DISPLAY: Duo bars were placed next to their standard-sized equivalents across the fixture, making it difficult for customers to differentiate at a glance.

SHARING OPPORTUNITIES: Shailesh stocked sharing bags, but was missing linked purchases as they weren’t next to complementary products.

GROUPING BLOCKS: Sharing blocks were faced down on the shelf, making them difficult for customers to locate within the fixture.

CHANGES TO DRIVE SALES DISCIPLINED DISPLAY: As bestsellers, we remerchandised duo bars and placed them at eye level so they’re easier to find.

SHARING OPPORTUNITIES: We added a selection of sharing bags next to the magazines to encourage impulse purchases and increase basket spend.

GROUPING BLOCKS: Sharing blocks

KEY LESSONS were difficult for customers to see and often missed, so we placed them facing forward on the top shelf.

SHAILESH SAYS

“Having an outside expert visit was really beneficial. It’s always

useful to get advice and new suggestions from someone that isn’t in the shop every day. I’ve noticed people buying more of the duo and block bars since the visit and it shows in the sales, as Galaxy block and Mars Duo are now in my top five bestsellers.”

1

Make it easy to find bestsellers, such as duo bars, at eye level in a prime location.

2

Add a selection of sharing bags near impulse-led products, such as a hot drinks machine or magazines.

3

Forward-face sharing blocks on the top shelf of your fixture to ensure high visibility.

5-18 NOVEMBER 2019 betterRetailing.com

17

Promotional feature

BEFORE

AFTER

FOCUS ON VICKY ONIONS Vicky’s Convenience Store, Bromsgrove, Worcestershire

CHALLENGES VISIBILITY: The confectionery fixture was towards the back of the shop, so was difficult to spot and meant key impulse purchases were being missed.

PRESENTATION: Popular duo bars were stocked on a low shelf, or next to standard-size bars, which meant they were difficult to spot.

RANGE: Vicky has a limited amount of space and was missing top-selling lines, meaning she wasn’t accommodating all of her shopper’s needs.

THE RESULT

CHANGES TO DRIVE SALES VISIBILITY: To maximise key sales opportunities, we added a secondary display of block chocolates and sharing bags in a high-traffic area.

PRESENTATION: To help customers shop the fixture at a glance, we grouped bestselling duo bars together in a prime position.

RANGE: We introduced top-selling lines – such as Maltesers Buttons – that were missing from Vicky’s display to help her cater to different shopper needs.

8%

DRIVE CONFECTIONERY SALES IN YOUR STORE

The increase in Vicky’s sales since following Mars Wrigley’s merchandising advice

If you want to grow sales and improve the performance of your store, call 0207 689 0500

VICKY SAYS

“I’m delighted with the changes – they have been really effective. The block bars and sharing bags have been a big success, customers started buying them straight away. Changing the gondola end has made confectionery more noticeable and I’m finding customers shop the range more. I’ll definitely keep the changes.”

KEY LESSONS

1

Introduce a secondary siting for sharing bags and block chocolates to encourage impulse purchases.

2

Group duo bars at eye level to help customers find what they are looking for, at a glance.

3

Stock a core range of bestselling lines, such as Galaxy Minstrels, to cater to different shopper needs.

AFTER

MARS WRIGLEY’S TIPS FOR YOUR STORE

1. Make sure bestselling lines are located in the centre of the fixture

EXPERT ADVICE AILEEN PENMAN Team Manager representing Mars Wrigley

2. Confectionery is a sociable treat, so stock a range of sharing bags and block chocolates

3. To meet the demands of busy customers, group standard bars together

4. A tidy and well-stocked display makes it more appealing

“I’M really happy to see that the changes we made in Vicky’s store worked. It shows that secondary sitings can help highlight the category and boost sales.

By putting the bestselling lines in the centre of Vicky’s display, we’ve made it easier to shop and her customers seem to have taken advantage of that.”

for customers and is quicker to shop

GET INVOLVED

DRIVE CONFECTIONERY SALES IN YOUR STORE For more advice and tips, and to see more of Shailesh and Vicky’s shops, go to betterRetailing.com/selling-like-a-treat

FOCUS ON FASCIAS & FRANCHISES

18

Partners for success RETAIL EXPRESS speaks to retailers about what six of the biggest fascias and franchises have to offer

FOCUS ON

FASCIAS & FRANCHISES

RETAIL is changing, and with it so has the range of services fascias and franchises offer to their members.

As customer data becomes more important in the sector, the leading fascias are collecting insights from across their members, and feeding these back into individual stores.

This, in turn, helps retailers make more informed ranging and merchandising decisions for their own customer base.

Symbol groups also give

their members access to bigger ranges, opening the door onto higherquality own-label products that will help convenience stores take on online discounters and the multiples.

Elsewhere, fascias and franchises are playing active roles in helping retailers grow their businesses, from regular business development manager visits to assisting with major re�its. With the pressure growing on stores to

become a destination, fascia groups have become pivotal in helping ambitious store owners meet the latest consumer trends and keep customers coming back.

Of course, symbol group support is only the �irst stage of any store development, large or small. Financing is also vital, which is where �inancing companies come into play.

Got Capital, for example, takes the risk of personal guarantees and collateral out of �i-

nancing by instead using a model based on percentages of a business’s revenue.

Whether it’s joining a fascia and franchise for the �irst time, or looking to switch one for another, it can be a daunting experience.

Over the next six pages, we take a look at some of the biggest fascia groups, explore what they offer franchisees and speak to retailers who are members to �ind out what they have to offer.

5-18 NOVEMBER 2019 betterRetailing.com

FACTS

Average store size: 1,300sq ft Number of Stores: 1,998

19

Conditions of joining: Threeyear fascia and supply agreement, stock Londis Core In Every Store range

Stephen Bassett

WHY STAY

Londis Westham Road, Weymouth I see my rep monthly, but he’s always available over phone, email or WhatsApp

Londis A part of the Booker Group, LONDIS supports its members with trends such as food to go, meal solutions, dessert bars, American candy and healthier foods Londis has almost 2,000 members and aims to deliver bene�its such as lower prices and exclusive products to help drive footfall and pro�its.

The symbol group provides support on new footfalldriving categories such as chilled, food to go, meal

WHY JOIN

solutions and also the latest trends like dessert bars, protein, free-from, premium spirits, American candy and healthier foods.

The fascia operates a zerocost model and is a �lexible symbol partner that has a fully delivered service and support package. Londis also

boasts award-winning ranges, a leading fresh offer with more than 2,000 lines and a leading promotional package.

With the support of merchandising, range, store development and supply chain teams, Londis strives to let its members ‘Make More and Save More’ in their business.

“My family has been with Londis for 25 years. I’ve stayed with the symbol group because it is always changing and improving, especially since they are now part of Booker and Tesco.

Londis has been hands-on in helping me and my team prepare for an upcoming refit in my Christchurch store by as-

JOIN

Being a Londis retailer means I benefit from the buying power of Booker Group. It doesn’t get better anywhere else.

which are all Londis – and the fascia helped me to develop those businesses by looking at the products I stock and how to correctly price them. We are in the process of developing my third forecourt and Londis is helping us with

“Being in regular contact with our business development manager has been really reassuring, knowing we can get his support when we need it. I see my rep monthly, but he’s always available over phone, email or WhatsApp.”

joinlondis.co.uk

Join Londis today and watch your profits grow

”

- 00% Cost Free model - Earn up to 4% discount*

Londis gets involved and looks at simple ways to increase sales and profits “I’ve been with Londis for a year and the quality of their service is what attracted me to them. Compared with other symbol groups, Londis gets involved and looks at simple ways to increase your sales and ultimately, profits.

“I own three forecourts –

0808 178 8644

“

Lee Mohamed

Londis Golden Cross, Colnbrook

sisting with the design and offering ranging advice that fits in perfectly with the store’s demographic and location.

“Londis is always looking to improve its offer. Most recently, they have helped me introduce a dessert bar, which has been great for our business.

- Award winning Own Brand & Fresh range

ideas and concepts that will work well for us.

“With Londis, the services they offer is what you’ll get. Londis have been really fantastic and our partnership is working well for my businesses.”

- Dedicated Retail Development Team

Steve Bassett Londis Weymouth Bringing our new branding to you with a click.

Visit our 360 Virtual Tour at : http://360.skyeyeplus.co.uk/files/LondisLeeds/

Call us on 0808 178 8644 or visit joinlondis.co.uk * Terms and Conditions apply.

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25/10/2019 15:46

FOCUS ON FASCIAS & FRANCHISES

20

Costcutter COSTCUTTER uses in-depth shopper insights and data to help retailers grow their businesses Costutter continues to invest in the offer, insights and innovations retailers need to grow their businesses.

At the heart of this investment is Costcutter’s unique business growth programme, Shopper First: Drive Five to Thrive, which provides indepth shopper insights and data to help tailor every aspect of a store – from range and missions to marketing and in-store execution.

The fascia’s supply deal with Co-op is clearly a major draw, with Costcutter explaining it brings together wholesale strength and grocery retailing expertise with its understanding of the independent convenience sector.

According to Costcutter, the quality and appeal of Co-op products has increased footfall, basket spend and sales across its stores.

FACTS

WHY JOIN Costcutter’s commercial terms include no fees or surcharges and a rebate of up to 6%.

Interested retailers can choose from the Costcutter, Mace, Supershop and Simply Fresh Fascias.

s

pper o h s g n tti

by pu

CALL

505

Are you looking for a partner that uniq ue will work with you to grow your customer business insightto s its full potential? Look at what Costcutter can offer you!

Come and

CALL

US!

01904 232

505

meet the team Unique shopper insight to drive your sales

& Let us show you our stores

Modern, contemporary store brand to drive footfall

n

• f

Highly competitive price and great rebate of up to 6% Right range including award-winning Co-op Own Brand Leading the sector marketing to today’s digital shoppers Unrivalled BDM support for your business

costcuttersupermarketsgroup.com

Y

Come and meet the team and let us show you our stores.

Cost of joining: No joining or membership fee

Costcutter Kirk Sandall

The team have helped me put together an attractive range

WHY STAY

US!

01904 232

Number of stores: 1,560

Kopi Kalanathan,

“I rejoined Costcutter last June after 10 years as it now has a bigger range, and are able to stock Co-op products, I knew it was the right decision for me.

“My store is 3,000sq ft, so having a large range of food and drink is really im-

Helping you grow your businessfirst

Average store size: Ranging from 700sq ft to 7,000sq ft

portant to ensuring I stay ahead of the competition, seeing as we have quite a few other stores in the area.

Being able to stock Coop products gave us that much-needed edge.

“Since rejoining, the team have been great in helping me put together

an attractive range and they are always on hand if I need them.

“One of the most helpful things is that Costcutter really listen to the needs of its retailers and takes aboard our ideas – it’s never about pushing products, but working together.”

Mike Nicholls,

Costcutter Dringhouses, York

It’s never been about the group pushing stock onto us “I’ve been with Costcutter for nine years because it is the only symbol group that I’ve come across that has a point of difference.

“Working with Costcutter has never been about the group pushing stock onto us, but how it can help me develop my business and understand

JOIN

who my shoppers are. For example, when redesigning my store in October last year, the retail director and buying director were very hands-on in helping me decide on the shop layout.

“Not only does this help me run my business, but provides them with insight

as to how a c-store works best so they can help other retailers out.

“At the moment, I am working closely with the alcohol buyer to help me with my merchandising, and he has been monitoring sales figures to determine how best to range it.”

01904 488 663 costcuttersupermarketsgroup.com

5-18 NOVEMBER 2019 betterRetailing.com

FACTS

Average store size: 2,300sq ft Number of UK retail members: 1,300+

21

Cost of joining: Free until 31/12/2019, plus £2,000 reward. Annual subscriptions start from £860+VAT

Sunny Mann

WHY STAY

Nisa Local Blidworth Mansfield The Co-op products have been a big hit with our customers

Nisa

JOIN

Retailers JEREMY HUGHES and SUNNY MANN have developed their stores with NISA FOR more than 40 years, Nisa has provided the tools needed by independent retailers to help them compete against increasing local competition.

Nisa is now offering a special deal of free membership and £2,000 to anyone who signs up and starts trading before the end of 2019.

WHY JOIN

Since its acquisition by Co-op, Nisa partners can now stock more than 2,000 Co-op own-brand products, which means they can offer their customers not only their own strong individual independent proposition, but one strengthened by that of

start to finish.

Someone from their team is always readily available to talk to me and help with anything I need, from getting products to ranging advice.

“I’ve found that Nisa work really hard to be

“I’ve been with Nisa since 2013, and they’ve looked after us quite well.

“I chose Nisa because they offered the best chilled products and deals, which is what I needed at the time.

“I’ve also just undergone a major refurb, which Nisa helped us with from

the Co-op own brand.

Nisa says its partners can trade their businesses in the independent way they always have, backed by competitive prices, promotions and an own-brand range that drives a real point of difference.

join-nisa.co.uk

0800 542 7490

REASONS

there for retailers and the Co-op products have been a big hit with our customers. Nisa is a very handson symbol group and they truly go the extra mile.”

TO

JOIN NISA

£ £2,000 Reward

HIP

ERS

MB

ME

Free membership

98% 98% Availability

2,000+ Co-op own label products

Jeremy Hughes Nisa Local Holt & Farndon, Holt, Wrexham

Working with Nisa enables us to compete at a higher level.

My customers have commented on the increased choice “I JOINED Nisa in July so I could better cater for shopper demand for good quality fresh and chilled produce.

“Since opening with the new Nisa signage, my customers have commented on the increased choice and sales are increasing

each week. I have been working on expanding my chilled range, which is now selling really well – and Nisa have helped me every step of the way.

“Having access to the Co-op range has allowed me to get all the benefits of stocking such a great-

quality range at a good price, but I still get the advantages of being an independent. The Co-op fresh range is much better than what we used to offer our customers.

It’s still early days with Nisa, but it’s all going really well.”

Dan Brown, Pinkie Farm, Musselburgh Young Scottish Local Retailer of the Year – SLR Rewards 2019

For even more reasons, visit join-nisa.co.uk #JoinNisa | 0800 542 7490 17451_NISA_TradePress_Dan Brown advert_2018_150x128mm_AW01.indd 1

24/10/2019 12:33

FOCUS ON FASCIAS & FRANCHISES

22

One Stop Retailers KARLOS PATEL and PAUL THOMAS have used ONE STOP to improve their merchandising, ranging, own label and promotions As part of its franchise package, One Stop is able to offer franchisees ‘multi-awardwinning’ support, technology and promotions, as well as working with stores to get them actively engaged in their local communities.

One of the most eye-catching One Stop features is the offer of an up-to-£50,000 “fully managed store refresh”, which will include new layout, new �ixtures and new �ittings inside and out, plus a special opening day celebration.

One Stop also offers a number of automated systems to assist with activities such as stocktaking, reordering and store admin.

Perhaps most eye-catching is the fact that One Stop is a subsidiary of Tesco, giving franchisees a share of

FACTS

WHY JOIN the buying power of a major national chain.

One Stop stores are able to offer their customers a

range of services, including free cash withdrawals, a post of�ice, National Lottery, myHermes and many more.

Stop Stop Stop watching watching watching your sales your sales your sales decline. decline. decline.

Start getting the margins, the basket spend and the figures you deserve.

Start getting margins, theStop basket spend and the figures Fed up of watching your figures fall? As athe One franchisee you can expect to see your weekly Start getting thethe margins, basket spend and the figures salesyou increase by an average of more than 14% in your first 13 weeks. deserve. you deserve.

Fed up of watching your figures fall? As a One Stop franchisee you can expect to see your weekly

Fed upsales of watching As than a One Stop franchisee you can expect to see your weekly increase your by an figures average fall? of more 14% in your first 13 weeks. sales increase by an average of more than 14% in your first 13 weeks.

01543 363003 01543 363003

01543 363003

openaonestop.co.uk openaonestop.co.uk

openaonestop.co.uk

JoinUs@onestop.co.uk JoinUs@onestop.co.uk

JoinUs@onestop.co.uk

Average store size: 1,600-1,700sq ft Number of stores: More than 900

Conditions of joining: Stores must generate more than £10,000 a week in sales, and be 1,000sq ft+

Paul Thomas

One Stop Bridgend, Brynglas, Bridgend Shoppers buy One Stop own label knowing it’s good quality

“We opened our store in March and One Stop have been helping us every step of the way.

“As a newcomer to convenience retail, I’ve found being part of a franchise group is better than being unaffiliated. The support I’ve received from One Stop

WHY STAY

is second to none, from merchandising advice to running a store.

“We are currently looking at expanding into the building next to us, and One Stop have been actively involved by designing new shop layout designs and the ef-

fect the expansion could have on the business.

“Customers really enjoy the promotions because they are similar to ones found in multiples.

“Also, shoppers buy One Stop own label knowing it’s good quality.”

Karlos Patel

One Stop Temple View Grove, Leeds I’ve gone from doing eight-hour shifts to just three a day

“We’ve been part of One Stop for the past five years, and we’ve just renewed for the next five, too.

“This is because One Stop makes your life easier and get actively involved to help you improve your sales and business.

“This year, we underwent

JOIN

a refurbishment where One Stop helped us improve our shelving and remerchandising our store.

“We see our rep, who helps out with shelf labels, new products and does it all for me, once a month in store – I’ve gone from

01543 363 003 joinus@onestop.co.uk

doing eight-hour shifts to just three a day. I wouldn’t think twice about joining One Stop again.

“With One Stop, you’re getting so many benefits while remaining an independent store.”

openaonestop.co.uk

5-18 NOVEMBER 2019 betterRetailing.com

FACTS

WHY STAY

Average store size: n/a Number of stores: 500

23

Cost of joining: No joining fee.

A five-yearminimum-length contract. Credit available dependent on criteria.

Bay Bashir

Belle Vue Convenience Store, Middlesbrough

If I have an issue with my store, Go Local goes straight into action

Parfetts

“I’VE been with Go Local for two years and the support I’ve received from it has been amazing. Since joining, my margins have increased by up to 20%.

“The promotions you get with Go Local are outstanding and have proved beneficial to my stores. Go Local treats every retailer the same, with

JOIN

every retailer having access to the same promotions.

“Over the past two years, I’ve been very happy with the professional attitude of Go Local, from helping us with our refit to meeting with our rep each week.

“Go Local gets actively involved with your business,

offering advice and support when they are needed.

“If I have an issue with my store, there’s always someone to contact and Go Local goes straight into action.

I chose Go Local because it puts its words into action.”

0161 429 0429

info@parfetts.co.uk

Go Local Extra retailers can benefit from:

* Subject to our Terms & Conditions

Parfetts fascias, including GO LOCAL and GO LOCAL EXTRA, are continuing to recruit new retailers PARFETTS, which is the owner of the Go Local and Go Local Extra fascias, has undergone another strong year for retail recruitment and is now seeking to expand into new geographic areas.

As an employee-owned company, Parfetts says it can be �lexible in how it recruits and services its customers

WHY JOIN

and franchises. Partnership underpins how Parfetts continues to work with retailers to develop their store offering and remain competitive in a tough retail environment.

Parfetts aims to support a diverse customer base, and the offer is underpinned by great value. The fascia group’s Retail Club now sits at 3,500

members. Parfetts claims that its team is dedicated to listening to customers to ensure that they deliver what is right for retailers.

At the moment, Parfetts is aiming to streamline the connection between suppliers and retailers to ensure promotions can be executed quickly in store.

Andy Robinson

Summer Lane Stores, Wombwell, Barnsley Shoppers are noticing the store since it became a Go Local Extra

“I’VE been with Go Local Extra since 2015, and I’ve never looked back. I bought the store as a small newsagent that customers would just walk past, but shoppers are noticing the store since it became a Go Local Extra.

“The support I’ve re-

ceived from Go Local Extra has been beneficial to every area of the business.

“When I expanded my store, the symbol group supported me with the design, business plans and improving my range.

“I’m planning to expand

in 2020 and Go Local Extra are looking into design plans, the latest trends that would work in my area and new products.

“Go Local Extra has been with us every step of the way.”

• • • • • • •

2% Rebate on Go Local Purchases FREE fascia & imagery scheme No joining, membership or weekly fees Full symbol store development programme FREE merchandising advice and support FREE marketing support FREE personalised PoS package

• • • • • •

Delivered service for fascia customers Dedicated Retail Development Advisor Full symbol promotional package on big brands Exclusive access to our category partner Click + Collect Digital marketing campaigns & dedicated consumer website

For more information contact John O’Neill, Customer Development Manager Tel: 0161 429 0429 Email: John.ONeill@parfetts.co.uk

5-18 NOVEMBER 2019 betterRetailing.com

FOCUS ON FASCIAS & FRANCHISES

24

Post Office Retailers PRASANNA SIVARAJAH and MOHAMMED SARWAR explain the opportunities they’ve had from working with the Post Office Retailers who take on a post of�ice �ind their sales increase.

Research shows that one in three post of�ice customers will buy three or more items in the shop when they visit, and 93% of shoppers said they were more likely to choose a store if it had a post of�ice.

The modern post of�ice franchise is designed to work in convenience stores, CTNs and forecourts, with an openplan layout and a small counter next to the retail till. Once your staff are trained, they can provide customers with essential services such as mail, banking and a range of

FACTS

bill payments.

Post Of�ice pays a fee per transaction and provide a post of�ice terminal, cash and stock deliveries, alongside marketing materials.

A business support manager will be on hand for your �irst six months, and support is available online, by phone and during area manager visits.

WHY STAY

fascia, so we could stand out from the competition.

“When we first opened it, the team were great in helping us carry out the refit on the Post Office side and training us on special services that we could now start to offer.

“They advised us

to concentrate on certain services during key periods – such as in the summer, focus on passport and travel card and money services which are popular then – and trained us accordingly, so we could try to achieve maximum sales.”

Prasanna Sivarajah Vinery Stores and Post Office, Cambridge I’m able to sell financial support to shoppers

because it has a Post Office*

“I decided to join the Post Office in 2017, and it’s been the best decision for me and my husband.

“When we first joined, we implemented a lot of changes and our business development manager was there the whole way to guide us. They helped us

travel more % ofthancustomers half a mile to visit a store with a Post Office

Boost your business runapostoffice.co.uk

JOIN

Source HIM Research 2018

*

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Post Office Blairgowrie, Perth and Kinross The team were great in helping us carry out the refit on the Post Office side

said they are % ofmoreshoppers likely to choose a store

39

Number of UK retail members: 11,500

Cost of joining: No franchise fee, but shop premises must be accessible

Mohammed Sarwar

“I’ve worked with Post Office in the past, having elements such as terminals in my other stores, but last year I decided to invest in a Post Office in Blairgowrie.

“Post Office has always been a trusted brand, so it made sense to invest in the

Be the store they cross the street for 93

WHY JOIN

Average store size: n/a

07/10/2019 15:04

create leaflets to distribute to our neighbourhood, letting them know we had longer opening hours than the previous owners.

“Post Office were also great when I was training to become a customer relationship manager – so I’m able to sell a range of finan-

0333 345 5560 nd.enquiries@postoffice.co.uk

cial support to shoppers, such as mortgages.

“This led to a dramatic increase in footfall and incremental sales from the c-store side of our business.

Shoppers, especially the elderly, can come in and sit down while going over any questions they may have.”

runapostoffice.co.uk

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CATEGORY ADVICE HOT BEVERAGES

26

WARM UP YOUR SALES With so many hot drinks to choose from, it’s not surprising that shoppers expect a lot from their retailer. TAMARA BIRCH looks at the biggest trends in hot beverages, and explains how to make the most from the category

A CHANGING MARKET IN WINTER, shoppers want unique hot beverages in a variety of flavours and formats.

The hot beverages market is growing, with new products being launched consistently.

Retailers need to keep up to date with market trends and consumer habits to ensure they are maximising the full sales opportunity that the category offers.

The past few years have seen a rise in the coldcoffee trend, premium options and companies leading the charge in producing more sustainable and ethically sourced products.

To be successful in this category, it’s important retailers offer standard and premium ranges of beverages to suit every budget.

CATERING TO DISTRESS PURCHASES ACCORDING to Jacobs Douwe Egberts (JDE), distress top-up purchases are a common driver for packaged coffee purchases.

JDE’s category and shopper marketing team lead, Michael Haynes, says retailers have the opportunity to further increase their basket size by catering for impromptu hot drinks purchases. “Forty-seven per cent of shoppers say distress purchases

are the most common reason for purchasing extra products,” Haynes says. “Good prices and promotions, as well as a convenient location for quick and easy purchases, can all drive coffee shoppers to the channel.”

Merchandise coffee products at eye level, with an option of premium and instant, to help customers buying last minute locate the product quickly. Use

PoS to encourage customers to pick up additional items. Also, consider cross-merchandising related categories to increase spend. Within the instant coffee category, consumers continue to trade up to higher pence-percup coffee segments, reflecting the ongoing premiumisation trend. Retailers can drive sales by offering a premium brand, or pods, such as Tassimo.

Branded products are popular with customers because they have names they trust Vip Measuria, One Stop Pirory Way, Derby

5-18 NOVEMBER 2019 betterRetailing.com

27 23

TEA AND HOT CHOCOLATE COFFEE is growing in popularity, but tea is still the stereotypical drink associated with British culture. Fifty billion cups are drunk every year, with the tea category constantly evolving. Traditional tea is a popular choice with consumers, but retailers can drive sales by offering a premium and speciality tea range.

Shoppers’ tastes are diversifying, so it’s no surprise that flavoured tea is popular. Chai, mint and more adventurous flavours, such as mango and cranberry, are just some additions shoppers are searching for. Retailers can put themselves ahead of their competition by adding a flavour option to their offering.

Similar to tea, the hot chocolate category has evolved over the past few years. Tapping into health trends, companies have been introducing lowcalorie options or sachet formats to encourage shoppers to treat themselves. To cater for health-conscious customers, stock a variety of low-calorie sachets, such as Options.

coffee to go What are the coffee machine options?

Costa Express Compact and Merlow The Compact coffee machine claims to deliver a quality Costa experience, is easy to use and offers an increase in footfall. Available with sweetener and chocolate sprinkles. The Merlow coffee machine is an upgraded version of Compact, offering a larger screen, a self-cleaning drip tray and contactless technology. Costa also offers to install the machine.

Nescafé & Go Nescafé & Go is available to be purchased outright from Nestlé Professional. The cost of the machine is £99+VAT, but retailers can purchase a bundle deal for £129+VAT. Available with a 12-month warranty, Nescafé & Go requires no plumbing – simply plug in and go.

Tchibo To Go Tchibo To Go offers up to 16 speciality hot beverages in two sizes. With no upfront cost or installation fees, Tchibo Coffee Service operates on a profit-share payment plan.

Tchibo To Go is easy to maintain and monitors cups sold, peak sales period and maintenance performance to help retailers make the most out of their coffee machine.

CATEGORY ADVICE HOT BEVERAGES

28

5-18 NOVEMBER 2019 betterRetailing.com

RETAILER

VIEW

Bruce Morgan, Best-one Brownlies, Biggar, South Lanarkshire Invest in a coffee machine “Installing a coffee machine has helped drive our footfall significantly. We are trying to make our shop a one-stop destination – we want customers to be able to come in and get everything they need. Our coffee machine has been a hit, and families will often come in during the winter and buy hot chocolates with treats. Stock your coffee machine where it can be seen from outside to entice passing customers in.”

Add promotions “I’d advise any retailer with a coffee machine to add a promotion or two to draw customers in. We offered a cake or a chocolate bar with every coffee sold when we first installed the coffee machine, and it helped our sales.

Having a coffee machine is a good way to increase spend throughout the store. Many of our customers will come in for a coffee, but pick up other things they need, too.”

top tips Make the most of eye-catching PoS Using clear signposting for your hot beverage categories can encourage impulse purchases. Seasonal periods, such as Christmas, provide a great opportunity for retailers to increase spend, so work with suppliers to ensure PoS is updated.

Group subcategories together To grow spend, it’s important retailers make customers’ shopping journeys as convenient as possible. Group subcategories, such as premium tea or coffee, together in prime shelving positions where customers are encouraged to trade up.

Merchandise according to new and ongoing trends Capsules are becoming increasingly popular as consumers look to create café experiences at home. Shoppers are looking to indulge on their hot drinks, so aim to increase sales by stocking a range of premium or organic products.

new lines

RETAILER

VIEW

Consider these products to broaden your range Vimto Squash Shoppers can add hot water to Vimto to make a soothing winter drink. Available in Original and No Added Sugar in 2l, 1.5l, 1l and 725ml formats. Hot Vimto offers an alternative for shoppers who aren’t fond of tea, coffee or hot chocolate.

Kenco Millicano According to JDE, consumers are seeking premium product lines and indulgent coffee experiences. Maximise these trends by selecting a range that corresponds with the growing segments, which is key to unlocking many opportunities within the market.

Novus Tea Best merchandised in your premium hot beverages range, the brand offers pouches of 25 and 100 pyramids. Also, the brand serves 250g loose-leaf teas for foodservice customers. Available in plastic-free packaging, the company say premium teas and functional blends are right on-trend.

Vip Measuria, One Stop Priory Way, Derby Focus on brands “Branded products are more popular with our customers because they have a name they recognise and trust. We recently started stocking Starbucks packaged coffee, which has been a real hit with our customers and it means they can create the coffee shop experience at home. Costa is also a bestselling product for us, too.”

Know your market “Although pods are on the rise in popularity, we haven’t seen this in our store. Packaged coffee is definitely more popular because it can be taken anywhere – and you don’t need a machine to make the drinks. Hot chocolate is popular for us in the summer. Being successful in the hot beverages category is about knowing your audience and merchandising accordingly.”

30

VANS EXPRESS FORD TRANSIT CUSTOM PLUG-IN HYBRID

TRANSIT CUSTOM PLUG-IN HYBRID Zero emissions no longer means zero confidence for van drivers as Transit unveils a first-of-its-kind solution. CHRIS DILLON travels to Ford’s launch event Stockholm, Sweden, to find out more

NEW LAUNCH!

INTRODUCTION WITH London introducing an Ultra-Low Emission Zone (ULEZ) earlier this year, the attention surrounding electric commercial vehicles has increased. Whether or not your vehicle is exempt can be complex to work out, meaning many business owners are considering moving to electric vehicles for guaranteed peace of mind. This isn’t just about London – there are plenty of other towns and cities in the UK consulting to bring in their own version of ULEZ, such as Leeds, Bristol, Glasgow, Sheffield, Manchester and Bath.

While few would argue against making the air in our cities cleaner, anxieties around the lack of charging points are enough to put many people off buying an electric vehicle – especially an electric van. This is a perspective Ford is hoping to change with its new Transit Custom Plug-in Hybrid – the first van with zero-emission driving capability in the one-tonne van segment – available to order now.

The van’s front wheels are driven by an electric motor powered by a battery, which can be charged with mains electricity for an electric driving range of up to 35 miles. However, the vehicle also contains a petrol engine that acts as a range extender, offering a total driving range of more than 310 miles. The van offers a 1,130kg payload and an unchanged 6m3 of load space from previous models.

The battery is covered by an eight-year/100,000-mile warranty and charging takes just over four hours with a domestic 230-volt 10-amp supply or just under three with a type 2 16-amp supply.

DRIVING TEST A SMOOTH, silent, automatic drive alongside a comfy interior makes driving this van an incredible experience. Ford has continued on its journey of turning vans into mobile offices with more room up front, designed for comfort and productivity – especially with its on-board modem feature.

The van lets the driver manage how the vehicle is powered, with four modes: EV Auto, EV Now, EV Later and EV Charge. These modes enable you to either charge the battery on the go, drive with the petrol engine or a mixture of both that conserves battery power. The vehicle will also benefit from geofencing technology, which automatically switches the vehicle into a compliant mode when entering a low-emission zone, thus preventing possible charges and penalties.

While driving was effortless at the best of times, the experience was further improved by dropping the van into ‘L’ gear, which essentially means you can drive the vehicle with one foot. Whenever I took my foot off the accelerator, the van would break, charging the battery. It took a bit of getting used to, but I found it incredibly useful in stop-start environments, like driving through the centre of Stockholm during rush hour.

fast facts Price: starts at £39,145+VAT Efficiency: 91.7mpg Emissions: 60g/km CO2 from petrol engine Payload: 1,130kg Load volume: 6m3

5-18 NOVEMBER 2019 betterRetailing.com

VERDICT TO demonstrate the capabilities of the Transit Custom Hybrid, Ford captured data over an eight-month period for a trial of 20 vehicles in London. The vehicles operated in pure electric mode for 35% of the time on the road, increasing to 68% in central London.

During the trial, no van needed to use public charging facilities – vehicles were either charged at home or work – showing that its range was capable of a whole day’s work across a variety of professions.

For retailers wanting a vehicle that bridges the gap between business and family, Ford also offers the tech in an eight-seat Tourneo format, which delivers 79.1mpg fuel efficiency and has climate control for both front and back.

Its high price tag may prove much too steep for many retailers, but for those who are looking for the cutting-edge tech to power their city-centre business forward, the Custom will be a fantastic addition. If you travel into a ULEZ zone every day, the costs saved by the Transit Custom Hybrid make it a compelling choice.

FORDPASS PRO FORD has also updated its FordPass Pro app with a host of new features that promises more efficiency, security and productivity for business owners who have connected vans.

The app now includes guard mode, which will tell the owner anything that happens to the vehicle, including being unlocked with a key. Owners can now also book a service on the app to proactively manage the maintenance of their vehicles.

Four additional features it includes: Information about each vehicle, such as fuel, tyre pressures, oil pressure and AdBlue levels Vehicle location – which lets owners know exactly where their vehicles are Remote lock/unlock – offers peace of mind that vans and contents are safe Remote start – ideal for ensuring vans are warm, de-iced and ready for work

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CATEGORY ADVICE CIGARS

32

5-18 NOVEMBER 2019 betterRetailing.com

CLEARING THE SMOKE CHRIS DILLON reveals simple ways to keep your cigar sales strong this Christmas

the stat

2.8% The value growth of miniatures in the past year

GROCERS ARE FIGHTING BACK

MINIATURES ARE BACK IN GROWTH THE long-term decline of cigars is nothing new, but the days of dramatic fall-off in 2015, 2016 and 2017 appear to be slowing.

Looking at the decline for miniatures, the stability is even more profound.

Since October 2017, the decline has been mostly flat, even growing during 2018.

The rate of decline was also unchanged by two of the biggest shake-ups in tobacco in recent years – EUTPD II and the collapse of the UK’s biggest tobacco wholesaler, Palmer and Harvey.

“For the past two years, cigars have not been governed by plain packaging and can be sold in smaller pack

sizes than cigarettes and rolling tobacco,” says Tony Lyles, Ritmeester field development manager.

“EUTPD II had little impact on cigars, mostly because we fought very hard and won the right to be exempt from plain packaging.”

“At the moment, the jungle drums for plain packaging have

gone quiet, but we’re certainly not staying complacent,” says Scandinavian Tobacco Group country director Alastair Williams. “We certainly think there is opportunity in the next piece of legislation coming in – the menthol ban.”

All of this means that the run-up to 2020 is a great time to revaluate your cigar range.

CIGAR shoppers are moving towards the multiples, with symbols and indies losing footfall.

Multiples’ share of cigars has grown by 0.5% in the past year, while indies and symbols are down 0.1% and 0.6%, respectively.

“A main reason of this is because smokers went from the multiples to independents

after the 2012 display ban, but since c-stores went dark three years later, we have seen smokers return to their previous shopping habits,” says STG’s Williams.

Retailers need to offer a stronger range, high availability and competitive prices to keep their shoppers from returning to the supermarkets.

This Christmas

GAIN A FEW POUNDS The UK’s bestselling med/large cigar sells even better at Christmas* Henri Wintermans premium cigars increase in demand over the festive season.* Last year sales increased by 20%* during December.

Just stock the essential brands to ensure great profits Data source: IRI MarketPlace. Total market.

Market Share. Time period: w/e 11-08-2019

CATEGORY ADVICE CIGARS

34

DON’T MISS OUT ON CHRISTMAS CHRISTMAS is a crucial time for cigars, with sales increasing by 7.5% last December compared to November 2018.

Retailers need to make sure they are known as a destination to the category to ensure success.

“Every year, cigar sales follow a very similar pattern with a spike in volume in December around Christmas and

5-18 NOVEMBER 2019 betterRetailing.com

SUPPLIER

PANEL

Tony Lyles, field development director, Ritmeester

during the summer months,” says Ross Hennessy, head of sales at JTI. “Stocking the right range is critical, especially at Christmas,” agrees Ritmeester’s Tony Lyles.

Premium cigars are especially critical, such as brands like Henri Wintermans.

The segment grew by 20% during December.

Make cigars unmissable “Don’t hide cigars in the bottom of the gantry. Cigars are now the only colour seen when the gantry door is open.

It’s also more profitable, such as margins of 18% for Royal Dutch Miniatures and upwards of 25% for Royal Dutch Double Filter. It pays to stock and make them noticeable.”

Ross Hennessy, head of sales, JTI

STG’S 2020 PLANS STG recently announced it has acquired Netherlandsbased Royal Agio Cigars, adding brands such as Mehari’s, Panter and Balmoral to its range. The company is expected to take over distribution in the first half of 2020 and add 2% to its market share in the UK. For convenience retailers, the three main products are Mehari’s Ecuador, Java and Red Orient – the 11th biggest cigar from a total market perspective. Red Orient currently does not

appear in the top 16 list in independents, so retailers should expect the company to want to replicate its success here. Mehari’s Ecuador is the 10th bestselling Panatella and one of only four products in the segment that increased its market share between August 2018 and 2019.

The move follows STG changing the name of Café Crème to Signature last year.

STG’s Williams says: “Consumer research into the brand came back with three key words: authentic, premium and contemporary. We felt the name ‘Signature’ reflects this perception more.”

Become an expert “Independent retailers must be knowledgeable about the cigar category and the different brands they stock – making staff education and training a must. JTI Advance is constantly updated and can provide regular training to suit the busy schedule of retailers. JTI’s sales force also provides expertise on the latest trends and sales data.”

Alastair Williams, country director, Scandinavian Tobacco Group Stock up on miniatures “While total cigars are down 6.4% year on year, miniatures have grown by 2.8% to £105m in value sales. With miniatures commanding 74% of the category, this is a key area for retailers to get right in their store. Moments Blue performs well in this segment and has grown its share of cigars from 4% in 2013 to 14% in 2018.”

For more cigars advice and bestsellers, go to betterRetailing.com/ cigar-sales

muststocks Signature Blue Hamlet Miniatures Hamlet Signature Classic Signature Red Filter Moments Blue Henri Wintermans Half Corona Royal Dutch Miniatures King Six

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PROFILE

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5-18 NOVEMBER 2019 betterRetailing.com

RETAILER PROFILE BRENDA THOMAS AND EMILY SPENCERMAWER BRENDA’S OF NORWELL Location: Norwell, Nottinghamshire Staff: Four Opening hours: Mon-Fri 7.30am-5pm, Sat-Sun 7.30am-12pm

‘LOCALS HELPED MAKE BACK THE £500 WE LOST’ L-R: Brenda, Marion, Emily and Callum DARYL WORTHINGTON WHEN Brenda’s of Norwell in Nottinghamshire fell victim to shop theft a few years ago, a whip round in the local village meant they quickly made back the £500 they had lost.

Convenience stores and newsagents often talk of being part of their community, but such generosity shows how important Brenda’s has become to its customers.

“We used to be a post of�ice,” says Brenda Thomas, who has been at the premises since 1987, and now co-runs it with her granddaughter, Emily Spencer-Mawer.

Her daughter, Marion Mawer, and grandson, Callum Mawer, also work at the store.

“In 2005, the post of�ice closed, so we went to the community and asked them what we should do.

“They said they wanted us to stay, and that we should focus on being a village shop. The support was overwhelming. It persuaded us to carry on.”

To keep this community relationship strong, the store offers a number of services to its local customers.

“We have an outreach post

of�ice come in a couple of days a week, which is really important,” continues Brenda.

“We also take in people’s laundry. For some customers who struggle to leave the house, we’ll �ill up cool boxes for them and drop them to their door.”

The store also hosts a wide range of community events that serve to promote its range and raise money for charity.

These include wine tastings several times a year, Brenda’s Breakfast mornings and more.

These events and the shop are advertised for free in the local parish magazine, in exchange for distributing it in store.

“The wine tastings are really popular – we stock wines from a local supplier and it’s a great opportunity for people to come in and taste them, and we make

a lot of money for local charities as well,” Emily explains.

“We stock a lot of local products, including meats, bakery and spirits,” says Brenda.

“Sometimes, we’ve had customers complain about the price of the local sausages and bacon. But when they try them at the breakfasts, they realise how good the quality is and start buying them.”

According to Emily, the local products give the store a point of difference. “We offer things customers won’t be able to get

BRENDA’S HOSTS EVENTS TO PROMOTE ITS RANGE AND RAISE MONEY FOR CHARITY

if they go to a supermarket,” she says. “Usually, they can get them cheaper from us than they would a farmer’s market,” she explains.

“One thing that people have really noticed is the fresh fruit and veg we get delivered in the mornings, again from a local supplier,” adds Brenda.

“That’s been really popular.”

As with everything else in the store, the ranging decisions at Brenda’s are driven by the community.

“Ninety per cent of what we stock are things customers have asked for,” explains Emily.

“We have some customers who refuse to buy anything that isn’t in compostable packaging, for example, that’s why we started stocking the 2 Farmers range of crisps, because the packs are plastic-free.

“We’ve also started doing milk in glass bottles to try and reduce the amount of plastic we use in the store – it’s what matters to the people who live here.”

For more pictures of the store, go betterRetailing.com/storeprofiles/brendas-of-norwell

in news 1 Invest and mags “We stopped doing home news delivery, but papers are growing our business. There’s a good chance the customers who come in every morning willl buy something else as well,” says Brenda. customers 2 Give a taste Emily says: “For the wine tastings, the supplier comes in and talks to customers about the wines. It’s a great way to let customers taste the local products they might not have heard of.” the most 3 Make of branding “Someone in our community made hessian bags with the shop name on,” says Emily.

“We tell our customers to take photos of them when they’re travelling, and we display them on a map.”