CASH MACHINES IN COURT BATTLE Retailers launch action over ATM supplier charge P3 KEY CATEGORIES TO SUCCESS
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2019 8–21OCTOBER betterRetailing.com
PROFILE
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RETAILER PROFILE KOPI KALANATHAN COSTCUTTER KIRK SANDALL Location: South Yorkshire Kirk Sandall, Shop size: 3,000sq ft lines: Bestselling slush drinks Fresh & chilled, and soft drinks
STAND ‘YOU MUST EED’ OUT TO SUCC STRICTLY FOR TRADE 8-21 OCTOBER 2019
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meals, mium products. Cook ready they’re latest technology “We stock but expensive, that a lot “We use twowhich are Kopi says: in our drinks product a high-quality like,” he says. way fridges saves us of our customers available from DARYL WORTHINGTON bills, section. This lea�lets how electricity and “We have set optimoney in which explain space new the supplier, from fresh ingreKOPI Kalanathan for his gives us extra when we’re chefs. they’re made Retail mistic targets makes it easier professional in Station the section.” they’re not dients by Costcutter Sandall, yet even restocking them “We understand start hitso we have Park, Kirk expect to for everybody, he didn’t within the �irst the lower-priced opposite This means when ting them frozen products. hoped week of opening. store enters our �igures I in Engcounter. Make the something a customer only store “The weeklysix months, we says. go “We’re the Porrelli ice cream. section, they’ll �ind well,” he take your own them.” to get after almost straight buy them as and land stockingorder it in bulk and that’s right for make his store a lot of our come in to started getting and then “We design then work with “Customers have to ourselves, reveals. Kopi works his customers location, photos of the drinks or Ins- We away,” he the delivery in Scotfor own signs, to get them made. a great organise also giving is based as practical “We have station, in a resi- post them on Facebook people comCostcutter store a perthe supplier “It’s selling as possible, while experience train the to some tagram. We’ve had miles away as explains. next to a They give and the science and close back. 15 land,” he though – it drives them a memorable coming dential areasites, which means ing from towns well, sonal touch,slushy signs are a keep them good foodsuch really to our store.” them.” customers industrial be- to a really and maths for customers.” footfall variety of We put on to buy maintaining fresh pizzas the balanceitems “We have we get a Of course, be demanding. needs. Getting range, witha seating area talking point premium is, to-go with different event, with the a big range can eye on Follow the tween the keep an paninis, and eat in if they musicians need to a big opening spillage and value productsto en- and latest trends they can Doncaster, so the lo- “You because of and important to where mayor of explains. customthe section, he explains. castle, confectionery of course, can appealand want to,” he bring “From US to vegan ranges, and a bouncy we were here.” when it’s sure the store and mess,” knew “These things making them customers, presoft drinks to follow the cals really runs several stores “On weekends, store, a member a wide mix of has looking for ers to our to stay and do the we’ll have Kopi also all the it’s important This helps just those That experience of busiest looking after it more likely shopping.” the not to the in York. latest trends. of staff the importance make sure customers rest of their and we INVESTtaught him a thorbring new keeps the existabout promogo- time, cleaner gives it IT’S A BIG IT’S really thinking store, and night he says. days, if you’re in the evenings. photos tion. “Thesea convenience store ough check but it’s MENT, BUT ing ones happy,” To see more go it BEEN investment, it.” ing to makeyou have to make It’s a big of Kopi’s store, worth DEFINITELY something de�initely been �ind unique a success, IT and offer to to betterRetailing.com/storestand out This drive just limited to WORTH he says. of profiles/costcutter-kirk-sandall different,” a clear example lines isn’t He stocks he offers. Kopi’s slush. For him, and confectionslush drinks Fanta, this is the providing a great US soft drinks as as Americanfood-toAs well a ery, such drive footfall. margin, theydrinks aren’t just as well as having “These adults will with kids, popular
USERS ONLY
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RAGE AGAINST THE MACHINES
8-21 OCTOBER 2019 STRICTLY FOR TRADE USERS ONLY
fight on Retailers launch legal charges ‘arrogant’ 95p ATM
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ANGER AT CONSERVATIV
s Retailers share concern over plans to increase the top minimum wage to £10.50 by 2024
E SAFETY WORRIES
SARNI
shut Supplier Café Class meat down for using raw fillings in independent shops’ sandwiches
MAS GUIDE COMPLETE CHRIST Get your store ready for Christmas, from home baking to snacks and alcohol P16-19
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STOCK UP NOW THE HIGH-PERFORMANCE VYPE ePEN 3 For more information call 0808 169 5000
For existing adult smokers and vapers only. Vype e-cigarettes contain nicotine. 18+ only. Read leaflet in pack.
ANGER AT CONSERVATIVE PARTY
SARNIE SAFETY WORRIES
COMPLETE CHRISTMAS GUIDE
Retailers share concerns over plans to increase the top minimum wage to £10.50 by 2024
Supplier Café Class shut down for using raw meat fillings in independent shops’ sandwiches
Get your store ready for Christmas, from home baking to snacks and alcohol
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KEL0229_Pringles Xmas Themed Cans Ad_RE_AW1.pdf
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01/10/2019
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TM, ®, © 2019 KELLOGG Europe Trading Limited *Marketplace L52wks, 16th June 2019 | **See promotional packs for full terms and conditions.
KEY CATEGORIES TO SUCCESS
Find out the lines that are getting this store ahead BACK PAGE 34
8–21OCTOBER 2019 betterRetailing.com
PROFILE
RETAILER PROFILE KOPI KALANATHAN COSTCUTTER KIRK SANDALL Location: Kirk Sandall, South Yorkshire Shop size: 3,000sq ft Bestselling lines: drinks Fresh & chilled, slush and soft drinks
‘YOU MUST STAND OUT TO SUCCEED’
8-21 OCTOBER 2019 STRICTLY FOR TRADE USERS ONLY
mium products. meals, “We stock Cook ready they’re N Look for the but DARYL WORTHINGTO which are expensive, that a lot latest technology a high-quality product he says. set optitwolike,” KOPI Kalanathan his new Kopi says: “We use of our customers from mistic targets for Retail “We have lea�lets available how way fridges in our drinks explain us Costcutter in Station the supplier, which yet even section. This saves fresh ingrebills, Park, Kirk Sandall, they’re made from chefs. money in electricity and to start hithe didn’t expect dients by professional us extra space the �irst gives not within them they’re ting we’re “We understand makes it easier when have them week of opening. for everybody, so we I hoped restocking the section.” lower-priced “The weekly �igures the we opposite months, to get after six This means when straight he says. go counter. in Eng- products. started getting almost buy them as well,” and take “We’re the only store cream. a customer enters our frozen in ice come Porrelli �ind something away,” he reveals. Make the store location, “Customersthe drinks and then land stocking and section, they’ll of “We have a great to order it in bulk right for them.” your own in a resi- photos or Ins- We have ourselves, that’s store his delivery make next to a train station, to some post them on Facebook to the our Kopi works com- organise “We design a lot of with is based in Scotdential area and close means tagram. We’ve had people for his customers away as the supplier selling as practical while also giving own signs, then work made. industrial sites, which from towns 15 miles he explains. “It’s ing land,” possible, as them customers of Costcutter to get though – it drives them a memorable experience them.” we get a variety a persuch really well, store.” We put on to buy They give the store science coming back. with different needs. with the Of course, maintaining footfall to our be- to keep them foodsonal touch, and the are a range can be demanding. a big opening event, Getting the balanceitems “We have a really good musicians a big eye on mayor of Doncaster, so the lo- “You need to keep an and maths slushy signs the premium with fresh pizzas is, to-go range, spillage tween area and a bouncy castle, section, because of talking point for customers.” and value productsto en- and paninis, and a seating they were here.” the he explains. important cals really knew we can eat in if stores and mess,” when it’s of course,store can appeal to where they Follow the Kopi also runs several has “On weekends, explains. member sure the of customers, and want to,” he customlatest trends in York. That experience of busiest we’ll have a “These things bring the a wide mix prethem ry and looking after it all taught him the importance those looking for “From US confectione ers to our store, makingdo the promo- of staff sure the not just make we ranges, and and stay really thinking about more likely to soft drinks to vegan the if you’re go- time, cleaner gives it a thortion. “These days, store night rest of their shopping.” it’s important to follow IT’S A BIG INVESTcheck in the evenings. ing to make a convenience to make it ough latest trends. This helps but it’s MENT, BUT IT’S to the a success, you have a big investment, something It’s it.” bring new customers existstand out and offer de�initely been worth unique DEFINITELY BEEN To see more photos and keeps the store, �ind says. to he different,” This drive says. of Kopi’s store, go of to WORTH IT ing ones happy,” he For him, a clear example isn’t just limited he offers. lines to betterRetailing.com/store l stocks this is the slush drinks a great Kopi’s slush. He r-kirk-sandal profiles/costcutte confectionAs well as providing US soft drinks and footfall. American Fanta, margin, they drive just ery, such as “These drinks aren’t will as well as having a food-toadults popular with kids,
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RAGE AGAINST THE MACHINES Retailers launch legal fight on ‘arrogant’ 95p ATM charges
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ANGER AT CONSERVATIVE PARTY
SARNIE SAFETY WORRIES
COMPLETE CHRISTMAS GUIDE
Retailers share concerns over plans to increase the top minimum wage to £10.50 by 2024
Supplier Café Class shut down for using raw meat fillings in independent shops’ sandwiches
Get your store ready for Christmas, from home baking to snacks and alcohol
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our say
Chris Dillon, editor – insight
The best social media ideas are often the simplest – like Freebie Friday At the Spar Retail Show in Telford last week, Adam Marsh, of Spar Hampton, told the inspiring story of how he has worked with Blakemore to improve his shop. The project began by extending the store’s opening hours to 6am-10pm seven days a week, which gave them a 16% sales increase straight away. The next phase was a refit in October 2018, which enabled them to get the right mix of products for a traditional neighbourhood store, surrounded by houses, schools and retirement homes. The next challenge was telling customers about it, and that’s where social media played a significant role. “We wanted the community to know who we were, what we sold, and how good our products really are,” he told the conference. This is where Freebie Friday began – and it’s such a simple idea. A video shows Adam or a team member walkWHO SAYS ing around the shop with a basket and picking up everything they need SOCIAL MEDIA for dinner. At the end of the video, HAS TO BE they encourage shoppers to like the shop’s Facebook page and share the DIFFICULT? post to win the basket of goods. The videos are no longer than two minutes, and a recent post on Spar Hampton’s Facebook has generated more than 300 shares and just under 5,000 views. It works on a number of levels – it promotes the store as being able to cater for all of their shoppers’ needs while at the same time giving something back to the community. All it costs is about £10-worth of stock and five minutes of your time. Who says social media has to be difficult? 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
Conservatives pledge to raise min wage to £10.50
WILLIAM DODDS THE Conservative Party will increase the full minimum wage to £10.50 by 2024, despite warnings from trade bodies. Chancellor Sajid Javid announced the policy during his speech at party conference last Tuesday (30 September), which included the move to lower the threshold of eligibility for the full minimum wage from 25 to 21 years old. During the speech, Javid recalled his upbringing in his parents’ newsagents, before outlining wage increases that the NFRN and ACS claim will force independent shops to close. NFRN national president Stuart Reddish told Retail Express the Conservative Party did not support the small businesses it claims to represent. “The Conservatives said they are the party for small businesses, but this level of minimum wage is not sustainable for small retailers,” he said. “There needs to be concessions for the smallest of businesses, especially those like
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Lotto age failures
“HIGH numbers” of Camelot retailers have failed agerestriction mystery shopper visits, according to Nisa. Retailers have been told by Nisa that Camelot is reporting high numbers of failed ‘Operation Child’ inspections and retailers have been warned to improve their conduct.
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our members’ that rely on �ixed-price products.” Peter Wagg, of News of the Wharf in London, argued that alongside high business rates and ineffective measures to
However, a Camelot spokesperson refused to con�irm or deny whether there had been an increase in failures. Camelot previously stated it had seen year-on-year increases in the number of retailers passing mystery shopper visits over the past three years.
Sainsbury’s c-stores
SAINSBURY’S will open 110 new convenience stores and close older locations as part of plans to revive its estate of shops. CEO Mike Coupe told shareholders it would undergo a “renewal programme” by investing in the convenience
market and closing 30 to 40 older stores. GlobalData associate analyst Thomas Brereton said: “The convenience channel has grown slightly faster than the overall market and is forecast to do so over the next �ive years.”
tackle retail crime, retailers were being left vulnerable. “There are lots of shop owners who don’t even earn the minimum wage considering the hours they work,” he said.
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Nisa tobacco rebate
RETAILERS can earn a rebate of up to £2.29 on selected cases of Imperial Tobacco lines, following the introduction of a Nisa tobacco rebate trial. The rebates of between £1.07 and £2.29 per case can be obtained if stores sell
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“The government needs to act on business rates and retail crime, and it seems a perfect storm that impacts adversely on independents.”
each pack at 8-10p below the usual RRP. The 13-week trial ends on 6 December and is eligible on Players Superkings Real Red, Players Kingsize Real Red, Lambert & Butler Real Blue Kingsize, Lambert & Butler Kingsize Silver, and Gold Leaf.
Co-op shake deal
F’REAL milkshake machines are being rolled out in Co-op stores, with talks underway to do the same in One Stop. Paul Doughty, F’real head of business development in Europe, said the �irm now has 280 machines in the UK, having already secured
agreements with Booker and Spar. As well as milkshakes, the machines can produce ‘adult’ drinks, such as smoothies and iced coffee. The machines are available free on loan for retailers who can sell more than 100 cups a week.
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8-21 OCTOBER 2019 betterRetailing.com
chris.dillon@newtrade.co.uk 020 7689 3379
Retailers in legal battle against ‘arrogant’ Cashzone ALEX YAU STORE owners have launched several legal battles against Cashzone for its introduction of 95p ATM withdrawal fees. Merseyside retailer Peter Sykes said the change from free withdrawals in January cost his business an additional £2,200 per month, alongside £8,800 in legal fees. “Now my bank costs have quadrupled, footfall has decreased and card processing fees for PayPoint cost more than the commission. The
changes have really impacted the performance of the business,” he said. “Cashzone is the most arrogant of arrogant. When the ATM was free, we earned commission from customers withdrawing cash for PayPoint, which we’d return to the ATM,” he said. Sykes added he had taken a �ive-month legal challenge against Cashzone, resulting in his contract terminating next year. Nisa retailer Harris Aslam added: “The charges were unexpected and ATM transactions have drastically reduced. We’ve
launched legal action.” When asked what retailers under similar circumstances can do, Jai Singh, of MJ’s Go Local in Shef�ield, advised meeting their provider. “DC Payments sent me a letter stating they were imposing £1.85 transaction fee. This was unacceptable and I arranged to meet the area manager. He told me they’d reduce it to 95p if I signed a �ive-year contract. “I didn’t want this because I wasn’t sure how the market would change. I raised my concerns and we agreed on an additional two years
and to keep the ATM free at £150 monthly cost.” A spokesperson from Cashzone’s parent company Cardtronics said the charges were because of cuts to bank fees it received. “We believe our action to add a small charge is in the best interest of consumers, the retailers with which we partner and the long-term future of our business.” They added retailers can pay a monthly “maintenance fee” to keep their ATMs free, which sources claim ranges between £200 and £600.
BAD WEEK
0.6%
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Grocery sales increase
Number of c-store closures
Total retail sales increase
Number of c-store openings
express yourself “In the first year of MUP, many customers traded up to premium products. Sales of 2l bottles of Strongbow tanked immediately, while individual can sales went up. More premium alcohol products have come into the market, with flavoured gin and vodkas far more popular. MUP’s impact on convenience stores isn’t as great as it was, but consumer mindset has changed. People are now more likely to go to their local convenience store.” Ferhan Ashiq, Day-Today Ashiqs, Falkirk
the column where you can make your voice heard
How has minimum unit pricing affected alcohol sales in Scotland?
“MUP has levelled the playing field as the multiples are no longer able to offer silly promotions on multipacks, especially near Christmas. We now put most of our whiskies and vodkas at the minimum price so we can tell customers our drinks are the cheapest in Scotland. This lets them know we offer the same price as multiples. Margins have gone up for alcohol which is great, while sales are also marginally up.” Mo Razzaq, Family Shopper Blantyre, South Lanarkshire
“There has been an increase in the sales of spirits as convenience stores can charge the same prices as multiples. Instead of customers always going to supermarkets for spirits, they now come to their local store. Products we have been able to boost sales on include Smirnoff vodka, Captain Morgan spiced rum and Bell’s whisky. In England, multiples promote the spirits as they drive footfall, but we don’t have to compete with this.” Dennis Williams, Broadway Convenience Store, Edinburgh
Do you have an issue to discuss with other retailers? Call 020 7689 3379 or email chris.dillon@newtrade.co.uk
FIREWORKS: Independent retailers have been urged to take advantage of a £2m firework opportunity this year, after Sainsbury’s revealed it won’t be stocking them. Vikas Buying Group and Emperor Fireworks sales director, Rish Datta said margins on fireworks can reach up to 77%. “Sainsbury’s normally sell around £2m-worth, so it’s a chance for smaller retailers to capture those sales,” he said.
Read more at betterRetailing.com/news/ mup-increase-on-alcohol
What do the company’s latest figures mean for convenience?
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GOOD WEEK
MUP: Sales data from EPoS provider The Retail Data Partnership (TRDP) and convenience store owners has shown that since the introduction of minimum unit pricing, alcohol sales by volume and value are up in Scottish independent stores. TRDP said the policy prevented multiples from undercutting independents on prices.
Sainsbury’s July-September results:
0.1%
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ARCHANT: The publisher will cease in-house printing from November with operations to be outsourced to Newsprinters in Broxbourne, Hertfordshire. From 11 November, Archant titles will be printed at the News UK-owned facility and distributed to retailers by their local wholesaler. The distribution of Archant’s Norfolk and Suffolk titles had previously been managed in-house. BUSINESS RATES: Retailers are losing out on an estimated £38m a year as the business rates system is failing to refund successful appeals. Collier International’s head of business rates, John Webber, estimated that, on average, retailers receive approximately 5% of their annual rates bill back as a cash refund. Read more at betterRetailing.com/news/ business-rates-relief-failures
NEWS
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8-21OCTOBER 2019 betterRetailing.com
Sandwich supplier shut down JACK COURTEZ THE prosecution of a leading sandwich supplier has raised grave concerns over the safety of local sandwich suppliers. Middlesbrough based Café Class supplied independent shops throughout the north east, with supply agreements in place with Booker, Nisa and North East Convenience Stores.
The company was shut down by the courts after they found its products posed “an immediate danger to human health”. Environmental health of�icers had caught the �irm placing raw meat in its sandwiches and passing on products to stores that contained out-of-date ham, bacon, eggs and cheese. The court also heard that the manufacturer was not carrying out the required
checks for listeria. Rather than accept responsibility, the company’s directors said they were doing what other sandwich suppliers were already doing. “It’s common practice in the industry because shelf lives are too short,” claimed the defendants. The case came four months after sandwiches containing the bacteria listeria made
by the Good Food Chain and served to patients in hospitals led to �ive deaths. It’s not just manufacturers that suffer from dangerous goods. Owners of a Staffordshire convenience store claimed they were “victimised” earlier this year when they received a failing food hygiene inspection grade due to ranging products supplied by a local manufacturer that did not list allergens.
The shop owner responded: “They seem well-labelled enough to me. I don’t label the food – it’s the suppliers who do that.” Retailers are advised to ensure all products contain the necessary allergen and ingredient information, and that local suppliers can present proof of food business registration and a food hygiene rating.
Old totes replaced with smaller, lighter boxes SMITHS News has responded to retailer concerns about tote box weights with a plan to replace them with smaller, lighter boxes from November. The company revealed an order for 250,000 of the new small models that Smiths
News CEO Jonathan Bunting promised will limit magazine weights per box to below the industry limit of 18kg. The company claimed the smaller totes will lead to fewer wet magazines and faster processing at Smiths HQ.
Rising slush hygiene risk for small shops STORES are at risk of receiving low food hygiene ratings due to their slush machines, according to research by Retail Express’ sister title, RN. Inspection documents show that both multiple and independent sites had been told to take action to ensure their slush machines are safe from bacteria. Some councils are also understood to be cracking down on the machines with greater swabbing and testing of the machines during visits. Stores were advised to en-
sure machines are cleaned and left empty overnight if switched off, to use a foodsafe disinfectant to clean the devices, to keep a log book of cleaning and to keep the syrup away from contaminants.
Go Local symbol group store count on the rise THE Go Local symbol group has grown to 500 stores, according to group operator and regional wholesaler Parfetts. The company is aiming to double its store count to hit 1,000 stores and claims its �lexibility is its biggest recruitment driver. Parfetts retail director Guy Swindell said: “We are attracting retailers to our Go Local symbol group in record numbers. They value our independence and truly �lexible approach to how they work with us. “Our USP is that we recognise that retailers need the �lexibility to trade in the way they want.” The wholesaler’s retail club, offering deals, promotions and advertising material to
stores, now comprises 3,000 members, up from 2,400. The expansion is believed to be aided by the �irm’s acquisition of Blakemore’s Middlesbrough depot in 2018. Swindell previously told Retail Express the group was targeting Nisa, Costcutter and Booker partnered stores concerned about “losing their independence”, following the takeover of their wholesaler by either Tesco or Co-op.
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New James Hall food-to-go range PRIYANKA JETHWA SPAR’S wholesaler for the north of England, James Hall, has launched a new food-to-go range, Fazilas, offering a spicy selection of ethnic foods. The range includes nine products, such as wraps, �latbreads and sandwiches. Varieties include a chicken tikka masala wrap with free-range mayonnaise and cos lettuce, Keralan-style chicken wrap with garlic and ginger mayonnaise, chickpea salad wrap with chilli mango dressing (vegan), onion bhaji and Bombay potato wrap (vegan) and tandoori chicken �latbread
with lemon and herb mayonnaise. These all have an RRP of £3 each. The sandwich range includes cheese savoury, chicken mayonnaise, egg mayonnaise and tuna mayonnaise varieties. The new range is included within Spar’s meal deal, which offers a main, snack and drink for £3.50. Peter Dodding, sales and marketing director at James Hall, said: “This range has been designed to meet customer demands for aromatic �lavours, and one which will complement the sandwich, wraps and �latbread range currently available in Spar stores.”
Hi-Chew sweets introduced to the UK COSTCUTTER has teamed up with Bobby’s Foods to bring Japanese confectionery brand Hi-Chew to the UK. Launched to retailers at the Group’s expo earlier this year, Hi-Chew is available to Costcutter retailers in Pineapple, Strawberry and Cherry �lavours. Supporting the launch will
be a consumer campaign backed by in�luencers. Mike Owen, Costcutter’s group category director, said: “We’re delighted to be working in partnership with Hi-Chew in the UK. We work hard to provide our retailers with insight and range options that will help them drive footfall and increase basket spend.”
Sprite campaign to support new bottles COCA-COLA European Partners (CCEP) has unveiled a new campaign to support the launch of its redesigned Sprite bottles that are easier to recycle. Launched last month to coincide with Recycle Week (23-29 September), the ‘Clear is the new green’ campaign educates consumers on the recyclability of the Sprite packaging, which has turned from green to clear. The campaign is appearing on more than 6,000 display panels across the country, and is part of CCEP’s efforts to remove virgin plastic from circulation as it aims to double the amount of recycled plastic used in all its plastic bottles, across 20 brands.
Earlier this year, CCEP announced that Glacéau Smartwater bottles will be made from 100% recycled plastic by the end of the year.
JTI launches American Spirit Essential Blue JTI has expanded its American Spirit range with the launch of American Spirit Essential Blue rolling tobacco. The new brand comes in a 30g format and a paper pouch pack, capitalising on the RYO category which is growing by 7.6% year on year, generating sales of £2.7bn a year. American Spirit Essential Blue has an RRP of £14 and is available to independent and convenience stores across London, and selected wholesalers across London, Brighton and Bristol. The new product will be supported with a regional campaign including wholesale PoS materials. Ross Hennessy, head of sales
at JTI, said: “American Spirit Essential Blue provides an opportunity for retailers to pro�it from this category, especially with the paper pouch format, which is completely new to the JTI range and the market.”
CCGB partners with Cotswold Fayre reports Merlin Entertainments increase in chilled COCA-COLA Great Britain has partnered with Merlin Entertainments to offer a 50% discount at its parks in exchange for empty plastic bottles. The initiative, which CocaCola launched in 2018, has been extended to more attractions this year in response to consumer feedback. The 23 machines will be available at UK attractions, including Alton Towers Resort, Thorpe Park Resort, Chessington World of Adventures Resort, Legoland Windsor Resort, Sea Life Blackpool and Warwick Castle Resort. Leendert Den Hollander, vice and general manager at Coca-Cola European Partners, said: “As part of our sustainable packaging strategy, we’re
determined to make recycling on-the-go easier. Ultimately, we want to reach the point where 100% of our packaging is collected, reused or recycled – and where none of it ends up as litter in our streets, parks or in the oceans.
FINE food wholesaler Cotswold Fayre has reported that convenience stores are increasingly making plans to remove ambient shelving to increase in-store chiller space. The wholesaler, which launched a chilled range in 2017, has continued to see growth in chilled sales, now accounting for 13% of its business – with sales predicted to increase to more than 30% of the total business over the next �ive years. The top �ive chilled products by volume sales at Cotswold Fayre are: Rodda’s Cornish Clotted Cream (6 x113g), Shaken Udder Chocolush Milkshake (6 x 330ml), Cartmel Sticky Toffee Pudding (6 x 250g), Ossa Organic Tra-
ditional Chicken Bone Broth (6 x 500ml) and Mash Direct Mashed Potato (6 x 400g). It says that this trend matches industry stats, which state that over the past �ive years, 34% of convenience retailers have invested in refrigeration at their premises.
Cookie Dough gets a vegan makeover
Fruittella marks gelatine-free debut
COOKIES on Cookie Dough is the latest addition to Ben & Jerry’s non-dairy ice cream varieties. Following the launch of its non-dairy range in 2017, Unilever has launched a new vegan cookie dough variety under its Ben & Jerry’s brand. Made with almond milk, Ben & Jerry’s Cookies on Cookie Dough features caramel non-dairy ice cream, vegan cookie dough pieces, chocolate pieces and a cookie swirl. It comes with an RRP of £6. Ben & Jerry’s non-dairy range is now a family of four, with existing non-dairy �lavours Peanut Butter & Cookies, Chocolate Fudge Brownie and Coconutterly Caramel’d.
PERFETTI Van Melle (PVM) is launching its �irst gelatine-free range with two new Fruittella fruity jelly varieties. Growing at 8.2%, Fruittella is tapping into the biggest trend this year, with more than 23 million people now open to a meat-free diet. Fruittella Koalas come in Lemon, Pineapple and Raspberry �lavours, while the Fruittella Sour Snakes come in Tropical, Lemon, Apple and Raspberry �lavours. Both are available in 120g bags and exclusively in £1
price-marked 100g bags for the convenience channel. The new launch is available initially in Dhamecha, before rolling out to more independent retailers later in the year.
8–21OCTOBER 2019 betterRetailing.com
New ultra-premium tequila hits the UK AMBER Beverage Group has launched a new ultra-premium tequila brand, Villa One, in partnership with singer Nick Jonas and entrepreneur John Varvatos. The tequila comes in three varieties, including Blanco (£40), Reposado (£45) and Anejo (£55), and will be distributed in the UK by Cellar Trends in mid-tolate 2020. It will be made available to independent convenience retailers via wholesale. Rudy Costello, acting global president and chief executive of�icer at Stoli Group, said: “The superpremium and ultra-premium tequila sector is pro-
jected to grow by 8% this year and it doesn’t look to be slowing any time soon.”
Cadbury Brunch gets a protein upgrade MONDELEZ International is expanding its Cadbury Brunch Bar range with a new format and two new additions. Cadbury Brunch Bar Choc Chip will be available as a single bar for the �irst time in a 32g format with an RRP of 55p. Also joining the range is Cadbury Brunch Bar Peanut Protein and Cadbury Brunch Bar Cranberry & Nuts Protein. Cadbury Brunch Bar Peanut Protein is a renovation of the brand’s original peanut �lavour, with added protein. Peanut is the number-one �lavour in protein, accounting for 43% of value sales of protein products. Both �lavours will be available in 5x32g multipacks at an RRP of £2.
Cîroc launches new White Grape variety DIAGEO Reserve’s ultrapremium vodka, Cîroc, has announced the launch of limited-edition Cîroc White Grape (£35.90) ahead of the festive season. It will be presented in a goldlook 70cl bottle. Richard Larkin, Europe incubation, prestige and reserve director at Diageo, said: “As consumers continue to place emphasis on premium experiences and occasions, Cîroc is perfectly placed to meet this demand. “Last year’s launch of Cîroc Black Raspberry was received well by consumers, and we’re looking forward to getting this out into the onand off-trade as one of the musthave spirits for the party season.”
07
Fiji Water introduces Nestlé premieres first new format to the UK advert for Yes! range PREMIUM water brand Fiji is launching its Fiji Water Sports Cap bottle into UK wholesale from this month. Following a successful launch in the US, it will join Fiji Water’s current lineup of 330ml, 500ml and 1l ranges in the UK. Designed for people on the go, the 700ml bottle �its in cup holders and gym equipment. Wai Mei Lee, vice interna-
tional president at Fiji Water, said: “Whether people are working out in the gym, or just on the go, they need to stay hydrated. There has been a huge success of the sports cap bottle in the US, so we’re excited to bring this format to consumers in the UK.”
NESTLE has announced that it is launching its �irst advert for its fruit-and-nut-based Yes! bars. In order to make the range more accessible to retailers focusing on food to go, Yes! Tempting Dark Choc, Sea Salt & Almond and Delicious Dark Choc, Banana & Pecan singles will be available in cases of 12. The supplier says these
outers are ideal for smaller retailers, as they require a lower cost outlay.
ACADEMY IN ACTION
PRODUCTS
08
Cadbury unveils Twirl Orange CHRIS DILLON
Three-month follow-up:
DIGITAL ENGAGEMENT In May, the IAA and PAYPOINT visited HARJINDER RUPRAI’s store in Birmingham to help improve her digital engagement. Three months on, we learn how the action plan is benefiting her business
IAA ADVICE 1
Use Google My Business to improve the store information online.
2
Review sales in relation to Facebook posts to see what works.
3
Personalise social media posts so they are unique to your store.
THE RESULTS
CADBURY has announced it is rolling out a limited-edition orange-�lavoured Twirl. Available in 43g bars, RRP 65p, in cases of 48, the launch taps into the growing �lavoured single confectionery segment, which represents 24% of single confectionery sales. Retailers can drive sales with new PoS. Radhika Pai, Cadbury Twirl brand manager at Mondelez International, said: “The trade response to the �irst-ever Twirl �lavour has been overwhelmingly positive, and we are con�ident that consumers will love it, too.” The �lavour has already
launched in Australia and New Zealand, which has led to 52% of shoppers buying into the new �lavour alone. Some regional wholesalers have claimed the launch was delayed. A product notice in a Hancocks depot in September announced it was delayed until this month. A spokesperson from Mondelez International added: “The interest in the limited-edition launch of Cadbury Twirl Orange from the public and trade alike has been incredible. “We’re proud to bring such a high-demand launch to the UK and will continue to deliver innovation across our portfolio of brands to the market.”
Wall’s Pastry vegan New sustainability campaign from CCGB range launched CONSUMERS will be reminded that all bottles produced by Coca-Cola Great Britain (CCGB) are 100% recyclable in the company’s latest campaign. The ‘Round in circles’ campaign includes print and outdoor advertising with a focus on transport hubs.
Kris Robbens, CCGB’s marketing director, said: “As well as taking action to make our packaging as sustainable as possible, it’s important we use our marketing and communications to encourage more people to recycle our bottles.”
25
We’ve recently Google My Business updated the views a week information on our Google My Business page, and added some new photos. We’re already seeing the benefits, with notifications from Google that the number of visitors is going up.
PARTNER ADVICE Retail is constantly evolving, and convenience stores have to take advantage of the latest technology, whether it’s EPoS or Google My Business. It’s vital your shop is easy to find and well presented on all Steve O’Neill major platforms. Marketing Director
PayPoint
KEEP UP WITH THE MODERN CONSUMER Call us on 020 7689 0500 to engage shoppers through data and technology, and find out how you can be a part of the next visit programme.
WALL’S Pastry has launched its �irst vegan range, including a Vegan Jumbo Roll and BBQ Jackfruit Jumbo Roll. Vegan Jumbo Roll (120g) is made with a mix of minced mushrooms, oats and seasoning, wrapped in vegan puff pastry. The BBQ Jackfruit Jumbo Roll (120g) is �illed with pulled jackfruit and hickory smoked BBQ sauce. Both varieties are also available in a snack-sized pack of four (30g), and feature ‘plantbased’ labelling. Michael Holton, brand manager at Addo Food Group, said: “We are con�ident that retailers will be able to capitalise on the growing opportunity plantbased alternatives provide, with a product that targets
vegans as well as those simply looking to eat less meat.”
McVitie’s sponsors Petits Filous goes Tokyo 2020 Olympics sugar-free for first time WITH just under a year to go until the Tokyo 2020 Olympic Games, McVitie’s has launched the �irst of its in-store activations as part of its Team GB sponsorship. The �irst of many competitions includes giving shoppers the chance to win prizes such as a trip to Tokyo. Shoppers will be able to enter the competitions online, by text or via store loyalty cards. The brand will also be rolling out on-pack messaging in
the new year in support of the partnership. Sam Mitchell, general manager for McVitie’s at Pladis, said: “As we look ahead to the 2020 Olympic Games, we’ll be working alongside retailers to show our support for Team GB. “It all kicks off with this series of competitions, which are sure to get the British public in the mood to cheer on the nation’s mostloved sports team next year in Tokyo.”
WITH parents increasingly concerned about the amount of sugar in yoghurt, Petits Filous has launched a no-added-sugar range (RRP £1.50). Petits Filous No Added Sugar has 4.9g per 100g of sugar and comes in Strawberry &
Banana and Apple, Pear & Banana �lavours (6x47g). Elisa Costa, senior brand manager for Petits Filous at Yoplait, said: “We’ve worked hard to reduce sugar in our products and are proud to to launch Petit Filous’ �irst noadded-sugar range.”
CATEGORY ADVICE
In partnership with
8-21 OCTOBER 2019 betterRetailing.com
09
Promotional feature
ENERGISE YOUR SALES RETAIL EXPRESS checks in with Bury retailer Kev Murji to find out how LUCOZADE RIBENA SUNTORY category expert Jemma Healy has increased his sales by improving his soft drinks chiller
PRIMARILY an impulse category, stocking market-leading brands is important for retailers to drive soft drinks sales. In July, Jemma Healy from Lucozade Ribena Suntory visited Kev’s store in Bury, Greater Manchester, and shared her advice on how segmenting displays and understanding consumer missions can grow sales in a category with a £1.4bn opportunity.
AFTER
FOCUS ON KEV MURJI Go Local Extra, Bury, Greater Manchester
CHALLENGES AND CHANGES Blocking: To help shoppers locate their favourite brands quickly, we grouped subcategories like sports and energy together. Impact: To drive sales of Kev’s bestsellers, we placed them at eye level to make key lines stand out. Promotion: To increase basket spend, we suggested adding a drink and snack deal to encourage Kev’s customers to add extra items to their shopping.
KEV SAYS
“SOFT drinks are a key category for us. The range and layout changes we made with Lucozade Ribena Suntory and Retail Express are going well, and we’ve seen growth. The new ranges we’ve introduced, such as flavoured and enhanced waters, are selling well. We now regularly restock them from our wholesaler.”
THE RESULT Kev’s soft drinks sales have seen an increase of
£1,643 per year
KEY LESSONS
1
Simplify shopping by stocking soft drinks by brand, making it easier to shop the fixture.
2
Analyse your sales data to determine bestsellers and give them priority in the chiller.
3
Add a snack deal to encourage customers to purchase additional items.
1 2 3
BEFORE
LUCOZADE RIBENA SUNTORY’S TIPS Group subcategories together to help customers find drinks easier. Place bestsellers at eye level so shoppers can stock up on their favourite brands. Use meal deals to encourage extra purchases and grow basket spend.
GET INVOLVED
EXPERT ADVICE JEMMA HEALY
Category controller, Lucozade Ribena Suntory “KEV’ss range and understanding of his customers is great, so it’s really pleasing that with some small changes and greater focus, we’ve been able to drive a sales increase. By spotting some key range improvements and gaps, we’ve helped keep sales growing.”
DRIVE SOFT DRINKS SALES IN YOUR STORE To see more of Kev’s shop, and for more advice and tips, go to betterRetailing.com/energise-your-sales
ACADEMY IN ACTION
PRODUCTS
10
A new nutty combo to dig into PRIYANKA JETHWA
Three-month follow-up:
SERVICE TO THE COMMUNITY In May, the IAA and BOOKER visited ARJAN SINGH-RHOUD to help boost his community involvement and social media presence. Twelve weeks later, we check in on the progress he has made
IAA ADVICE 1
Share photos on social media about your in-store activity.
2
Work with local schools on healthy food options and upcoming events.
3
Trial a new home delivery service to help vulnerable customers.
£2k
THE RESULTS
per week We donated to a sales increase school trip and are continuing our support. We’ve also started a free delivery service for elderly customers and are posting about our community support, which has increased sales by £2,000 per week.
PARTNER ADVICE Don’t underestimate the importance of making your shop a part of the community. Whether through social media, events or fundraising, working in the community will increase customer loyalty, sales and profits. Martyn Parkinson Brand Director – Premier Booker Wholesale
DRIVE AWARNESS AND LOYALTY Call us on 020 7689 0500 to find ways to contribute to your local area and see how you can be a part of the next visit programme.
NUTS For… is the new range of sweet and savoury nuts from snacking brand Sun Valley Nuts. Available in single-serve 35g grab-and-go bags, the Nuts For… sweet range is inspired by traditional desserts. Flavours include Rocky Road Riot, Eton Mess Up! and Chocolate Brownie Chaos. Savoury �lavours include Punchy Smoked Paprika, Indian Spice Infusion and Wicked Wasabi & Soy. The RRP for the nuts is £1.29 and they come in cases of 15. To make it easier for retailers, they come in shelf-ready packaging and can also be
supplied in a euroslot for clipstrip merchandising. The supplier has also launched new Simply Dip’d Chocolate Almonds (30g bag), which are roasted almonds dipped in 70% dark chocolate and �inished with a light dusting of cocoa. Alison Robson, marketing manager at Sun Valley Nuts, said: “The UK snacking market is growing, with three quarters of consumers indulging each day, but despite its success, it’s a category arguably suffering from a lack of interesting combinations. “The Nuts For… range has been designed as a backlash to conventional on-the-go options,” she said.
Pip & Nut launches festive collection
Getting sparkly with Dr Oetker Sprinkles
PIP & Nut has launched its �irst festive nut butter with a limited-edition Pumpkin Spice �lavour. The almond butter contains Californian almonds that have been blended with pumpkin seeds, cinnamon, cloves and nutmeg, which creates a spicy Christmassy �lavour. It comes with an RRP of £3.95. Pippa Murray, Pip & Nut’s founder, said: “Our limited-edition �lavours are fast becoming some of the bestselling lines in our product range.”
ROSE Gold Blush Sprinkles and Mermaid Treasure Sprinkles are the latest additions to Dr Oetker’s Ultimate Sparkle range. They follow the launch of the brand’s Ultimate Sprinkles range in 2018, including Unicorn Confetti and Glamour & Sparkle. Sprinkles are supplied in cases of six and come with an RRP of £2.29 each. The products can be sprinkled onto cupcakes or cakes before buttercream or icing sets. Alternatively, they can be used as an ice cream topping. Jen Brown, head of marketing of cake and dessert at Dr Oetker, said: “Our Ultimate Sprinkles range has performed well since launching last year
and we wanted to add to the range with some on-trend products. Mermaid baking is an emerging trend, so we expect the Mermaid Treasure Sprinkles to be a hit with home bakers, alongside Rose Gold, which is a popular colour emerging in home baking.”
A festive look rolls out Nomadic Dairy for Jammie Dodgers refreshes its range BURTON’S Biscuit Company has launched limited-edition Christmas designs on Jammie Dodgers for the �irst time. Jammie Dodgers will be embossed with three seasonal designs – a stocking, a star and a Christmas tree – and will come in festive packaging from this month. The limited-edition Jammie Dodgers will be available in 140g packs, with an RRP of 89p. Special Christmas packs will
also be rolled out on some of Burton’s other popular biscuit brands, including Maryland Cookies 230g packs, RRP £1, and a Maryland Mini Cookies Sharebox, RRP £1. Both will be renamed ‘Merryland’, and the latter is expected to appeal to shoppers looking for stocking �illers. In savoury biscuits, Burton’s will launch a Cathedral City Baked Bites Share Box in 140g packs, RRP £1.49.
FOLLOWING �ive years of double-digit growth, Nomadic Dairy is launching a new look and adding a new �lavour to its range. The new look aims to differentiate itself from competitors, focusing on the fact it comes in single tubs, and the supplier says it aims to drive value in a category that is being eroded by volume pumped into the market with “ever cheaper multipacks and deep deals on singlebrand multibuys”.
The new �lavour, Sicilian Lemon, will come with an RRP of £1.40 and joins its existing range comprising Raspberry, Salted Caramel and Alphonso Mango �lavours. Alan Cunningham, managing director at Nomadic Dairy, said: “We have a clear focus on single serve, convenient and portable products with a spoon included. “Whether it’s lunch, a postgym treat or an end to dinner, we’ve got a pot to match consumers’ busy lifestyles.”
CATEGORY ADVICE
In partnership with
8-21OCTOBER 2019 betterRetailing.com
11
Promotional feature
GET INVOLVED
To increase your confectionery sales, call 020 7689 0500 or visit betterRetailing.com/ satisfying-sweetcravings
SATISFYING SWEET CRAVINGS On behalf of MARS WRIGLEY, JOY HEWSON and AILEEN PENMAN visit two retailers to advise how impactful displays and effective merchandising techniques can drive confectionery sales
THE OPPORTUNITY
71% of confectionery purchases are bought on impulse
RETAILER
SHAILESH PAREKH Nisa Local New Invention, Wolverhampton, West Midlands
EXPERT ADVICE
JOY HEWSON
Representing Mars Wrigley in the West Midlands
“MOST of my chocolate sales come from impulse purchases, especially the duo bars. However, the majority of my customers buy standard-sized bars, so I would like to know how I can effectively merchandise my range to encourage customers to trade up.”
“SHAILESH has several opportunities to maximise his chocolate sales and meet his customers’ needs. He has an excellent range, and his fixture is highly visible when customers are walking to the till. To help customers notice bestselling lines, we will be remerchandising Shailesh’s fixture to optimise sales.”
RETAILER
VICKY ONIONS
Vicky’s Convenience Store, Bromsgrove, Worcestershire
EXPERT ADVICE
AILEEN PENMAN Representing Mars Wrigley in Worcestershire
“WITH so many products available, I find knowing what to stock challenging. I’m located near a prison, so I have a lot of passing trade from visitors, which means confectionery purchases tend to be made on impulse. I would like to know how to persuade my customers to indulge.”
“KNOWING what to stock can be overwhelming, which is why we recommend stocking our top 35 lines to help retailers make their decisions. The opportunity to grow sales lies with sharing bags. We will explore how simple display changes can entice customers to trade up and treat themselves.”
WHAT HAPPENS NEXT? Joy and Aileen will share their expert advice on range and display and make changes to Shailesh and Vicky’s fixtures during store visits to help increase their sales. Find out what advice was given in the next of the series. Look out for Retail Express on
22 OCTOBER
PRODUCTS
12
New Polar Krush iced drink brand PRIYANKA JETHWA POLAR Krush has launched a �izzy frozen drink brand to meet demand for self-serve carbonated frozen drinks. The Vortex Fizzing Ice Storm frozen brand comes in Blue Raspberry, Strawberry, Lemon & Lime and Tropical �lavours. It is sold through self-serve dispensing units, which are available to retailers, and serve two or four �lavours. The units feature digital
video display screens and can serve 430 drinks per hour, and retailers can earn 83% pro�it on every single drink sold, according to Polar Krush. The machine has a monthly rental agreement with no upfront costs. All Vortex products are supplied in eco-friendly bag-in-box packaging with compostable and reusable cup options and spoon straws made from paper and recycled cups.
Want to get Vortex products in your store? Call Retail Express on 020 7689 3355
New Alpro Greek with Have a movie on Granola hits stores Hooch this autumn AVAILABLE to Spar stores now, Alpro has launched Greek Style with Granola with an RRP of £1.50 per pot. Designed to propel plant-based food and drink into the mainstream by making plant-based options available across more products, the pots include a singleserve plant-based alternative to yoghurt range. It comes in a 140g recyclable cup with a
spoon, and is high in plant protein, as well as low in sugars and saturated fat.
GLOBAL Brands is bringing back its ‘Movie on us’ campaign for Hooch. The on-pack offer has been extended to even more Hooch lines, with codes now on 440ml cans, as well as the 70cl and 500ml bottles. A movie marketing campaign will run throughout autumn to support the promotion, covering consumer advertising, including a dedicated social plan and in�luencer videos that are expected to reach more than 12 million consumers.
M&M’s Bars to hit TV screens for first time MARS Wrigley UK has launched a new campaign for M&M’s Bars. The digital campaign will be backed by a £1.4m spend, and will include more than 50 new digital assets all featuring the M&M’s characters comically stuck in a chocolate bar, launched alongside the return of the brand’s adapted Super Bowl advert ‘Bad passengers’. The campaign will span social media and outdoor – supported by in�luenc-
ers and a brand partnership with Ladbible. Cordelia Linacre, M&M’s senior brand manager, said: “M&M’s Bars is a massive launch for us this year, so it was only �itting we went big with this campaign, including the adapted ‘Bad passengers’, we have more than 50 new assets designed for each social platform.” M&M’s Bars launched in the UK in July this year and is available in Chocolate, Crispy, Hazelnut and Peanut �lavours.
Brand controller at Global Brands Christian Sarginson said: “Movies available include major blockbusters.”
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SUGAR TAX:
Will it be applied to food? “PUBLIC Health England (PHE) is committed to monitoring of the sugar reduction programme. The next progress report, due in the first half of 2020, will provide a further assessment of progress. PHE will also work towards revising the salt reduction targets.”
“WHEN motivated, the food industry can give us healthier options. It is imperative the levy is applied to caloriedense processed foods and milk-based drinks that meet an agreed criterion set by the government. The government should be proud that it was brave enough to introduce the soft drinks levy.”
Public Health England Katharine Jenner, campaigns director, Action on Sugar
It is imperative the levy is applied to calorie-dense processed foods
PLUS • New best-practice advice • New wholesaler Pricewatch • New-look product news
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CRIME: What does Co-op’s report say about retail crime?
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“I KNOW of colleagues who have had knives held to their throats, or been made to kneel down with guns or other weapons held at their head. The impact of these incidents lasts a lifetime, not only for those directly involved, but also for their colleagues, families and communities.”
“DATA sources show the frequency and severity of violence towards shop workers is increasing. The fear of physical violence is causing some shop workers to change their shift pattern, their place of work or, in the worst cases, terminate their employment entirely.”
Jean-Marie Hughes, former shop worker
Dr Emmeline Taylor, report author
The frequency of violence towards shop workers is increasing
PARFETTS: What do its latest results mean for convenience?
Delivered wholesale is increasingly valuable to retailers
“OUR strategies are working well, particularly in the Go Local Direct (GOLD) delivered wholesale strategy out of Sheffield. We are now focusing on growing GOLD sales southward out of the Somercotes depot and westward out of Aintree.”
“ALTHOUGH cash and carry is here to stay, a 9.8% annual increase in Parfetts’ turnover is an indication that delivered wholesale is an increasingly valuable service to independent retailers – a trend similarly experienced by other wholesalers.”
Greg Suszczenia, joint managing director, Parfetts
Alex Yau, news reporter, Retail Express
LETTERS
8-21OCTOBER 2019 betterRetailing.com
15
sam coldbeck
Letters may be edited
Wharfedale Premier convenience store, Hull
The right balance between margins and promotions is the key to profitability
‘Speaking to Smiths solved my late-delivery issues’ SIX weeks ago, Smiths News informed us our magazines would start to be delivered from its Liverpool depot. As a result, we faced some late-delivery issues. I’ve persevered, but now think it can only be resolved by speaking to someone at Smiths News. Thanks in advance. Adarsh Chauhan, Westleigh Post Of�ice & News
Responding to the claims, a Smiths News spokesperson said: “We have tried to contact the retailer twice, however he is not picking up the phone, but we will continue throughout the day. “Smiths News is aware that the retailer was having service issues following the network rationalisation of Warrington.
“As a result, we re-routed the Leigh area. “The service provider on this route has also been changed, and we have seen a step-change in terms of performance; the last query we have from the customer is dated 15 August. “We will continue to try to make contact, and if there are any further updates, I will drop something over.”
TWEETS OF
Chauhan responded: “What Smiths News said in the letter is correct, and the service provider has now been replaced. “After speaking to the customer service team, I was told they would make some personnel changes, and the issue has been addressed. “I appreciate the help from Retail Express in getting this issue resolved.”
THE WEEK
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Fingers crossed for the next round, which will be announced in October.Thanks to the County Times for featuring us #Woosnam #Llanidloes #IAA2019 #IAA19 #NFRN #LoveRetail #LoveLlani #CountyTimes @ IAAcademy @ThisIsRN @betterRetailing @NFRN_Online @trudydavies1964
AS SUMMER draws to a close, I’ve been spending time looking at how profitable we are as a store. Because our shop is heavily dependent on promotions, our margins are often lowered and need careful management. While it’s tempting to look at other symbol groups’ offerings and think Each issue, one of seven top customers are retailers shares advice to sometimes getting make your store magnificent better deals, I know we can’t afford to give stock away just to get people through the door. Striking the balance between healthy margins and strong promotions is proving to be the way forward. Manufacturer-led multibuys sometimes drive margins down to single figures, often on distress purchases such as pet products and household goods. So, while we’re keen to offer price-marked products, doing so has to make sense financially. It’s important to me that manufacturers, suppliers and retailers realise the sector is a partnership between us all, and, in order for us to make a profit and survive, we will only stock products that enable us to make a fair living. Shrinkage is another area I’m keen to monitor and update. Shop theft, damaged goods, shortages from suppliers and out-of-date stock can all weigh heavily on your bottom line. In our store, staff have rotas in place to ensure stock rotation is done at the same time as sections are cleaned. They also understand which products need date-rotating every time a section is merchandised, and shoplifting is closely monitored with diary entries. CCTV is kept of repeat offenders and banning notices are put in place for those who reoffend. Probably our most profitable quality is the team we have working for us. This time of year is a great opportunity to brush up on staff training, appraisals and rotas. If our staff are delivering the best, most effective customer service, upselling where appropriate and putting their best into the running of the shop, our customers will come back time and again. Profitability comes in many forms, but the job is made so much easier when the store is made to work hard for us.
Former #NFRN president Mike Mitchelson meets with Home Secretary @patel4witham at #ConservativeConference2019 to discuss what can be done to help independent retailers from rising levels of crime and violence. #RetailCrime @NFRN_Online RETAIL Express has teamed up with FrieslandCampina to give away £250-worth of its brand-new ready-to-drink coffee, split between five lucky retailers. The prize consists of Barista Coffee Co, a product that doesn’t compromise on taste and offers stand-out on shelf while tapping into the on-the-go market.
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.
Lovely to see an incredible donation of £200 being made through the MADL scheme from local retailer Gwilliams to Ashcott Football Club.The donation will help go towards purchasing new goal posts for their recently acquired sports field. @MADLcharity
Get in touch
@retailexpress betterRetailing.com facebook.com/betterRetailing chris.dillon@newtrade.co.uk 020 7689 3379
CATEGORY ADVICE YOUR COMPLETE CHRISTMAS GUIDE
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GETTING FESTIVE From stocking premium alcohol to selling mince pies in October, DARYL WORTHINGTON looks at what retailers need to know in the last few weeks before Christmas
GET READY FOR CHRISTMAS WITH the multiples launching their Christmas ranges earlier each year, the pressure is on convenience retailers to keep up the pace if they’re going to compete. With that in mind, it’s vital to ensure you’re prepared for Christmas across your store and in every category, from confectionery to alcohol.
Independent retailers have two main advantages – one is being more convenient, the other is being able to give a more personal customer service to shoppers. Using these to the maximum can drive sales and boost your overall shop margins in the weeks leading up to Christmas.
key lineS It’s not just about food and drink Are you catering to these five Christmas distress purchases in your store? Batteries Antacids (for heartburn and indigestion) Sticky tape Wrapping paper Christmas cards
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ALCOHOL AS a category, alcohol is changing fast – with more customers looking for higherquality options, from craft beer, to premium gin and vodka. More than any other time of year, Christmas is when customers are likely to be looking for a premium alcohol product, whether it’s as a gift or a personal treat.
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This means if your store doesn’t normally stock premium alcohol lines, Christmas could be the time to trial some. If you do have a premium range, make sure you’re well stocked on your bestselling lines for the party season and add the most eyecatching launches. Pernod Ricard recently re-
Embracing the Christmas opportunity
Kim Brown, head of fresh, frozen and direct to store, Nisa “THE fresh Christmas proposition is a crucial part of any retailer’s business and an area they should not be afraid to embrace. “Christmas lunch is the main event of the day, after all the gifts, and being part of this can really help retailers to lock in loyalty from their customers. “At Nisa, we offered our retailers a sneak preview of what a fresh Christmas could look like last year, with the availability of some key Co-op own-label products, and this year, our retailers will really see the benefits of working with Co-op. “Treats such as prawn and lobster thermidor bakes, salted caramel melt-in-the-middle desserts and Asianstyle chicken lollipops are three of the exciting new products for this year’s festive offer. These products are available to partners of Nisa and we think it will open up a world of opportunities to independent retailers and their customers. “Aside from the fantastic opportunities within fresh food, there are also many key essentials that shoppers will be looking to buy early and store away until Christmas. With that in mind, we will be supporting Nisa partners in the run-up to Christmas with a weekly one-off deal as part of our 12 Deals of Christmas promotional activity.”
vealed that independent retailers missed out on the opportunity in premium spirits last year. According to the company, the convenience channel increased its value share of premium spirits by just 3% in the last quarter of 2018, versus grocery achieving 8% growth. In fact, convenience lost 1% versus the previous year.
For alcohol, it’s important to make sure you have the latest products in store that your customers could be looking for, and balance the established brands with the seasonal launches shoppers will want to try. For instance, Diageo recently announced a limitededition Cîroc White Grape for
the festive season, which will be stocked by major wholesalers from mid-October. Meanwhile, Pernod Ricard will be launching the Plymouth Gin Box in November, aimed at premium gin lovers.
O T D E T T I COMM
S R E L I A T E R R OU SINCE 1977 “We joined Nisa in 2013 when we first opened our shop and worked with them to get the store we wanted. Everything from the EPOS system and the immediate back-up we get if we ever struggle with anything, to the field team whose views we really value because of their experience, all the guidance we get from Nisa has made it so much easier.
If it wasn’t for Nisa we just wouldn’t have gone for the shop. We love their suggestions, the advice that they offer, as well as everything we get from them in terms of the support and the expertise is really fantastic - we really value all of it. For us the whole shebang that we receive from Nisa is brilliant and we wouldn’t have come this far without them.”
I really don’t think we would have succeeded in grocery without Nisa. Frank and Adrienn Ago The Snooty Fox Store, Shalford, Surrey
Join the family... Visit: www.join-nisa.co.uk 0800 542 7490 14647_NISA Trade Ad_Snooty Fox_2019_Mini Page_172x240mm_AW01.indd 1
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CATEGORY ADVICE YOUR COMPLETE CHRISTMAS GUIDE
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RETAILER
CONFECTIONERY IT’S no secret that Christmas is the prime time to be driving sales in confectionery. As Mondelez trade communications director Susan Nash notes, shoppers spent £937m on confectionery over Christmas 2018. “The shopper tendency to trade up to more premium products is prevalent at Christmas,” says Nash. “Large sharing packs and gift products – such as tubes, tubs, selection boxes and gifts for kids – are a key
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part of every store’s range during December and offer a significant trade-up opportunity as consumers look for special presents for friends, family, work colleagues and teachers.” Get your festive confectionery in early to drive sales, and ensure your range includes a mix of premium lines as well as the most recognised brands and products to attract customers to the fixture, and encourage trading up.
Jeet Bansi, Meon Vale Londis “WE start off our Christmas displays early, as it’s a great way to get sales in your store. For us, the main thing is a front-of-store display unit by the shop’s entrance to grab customers’ attention and let them know we’re stocking Christmas products. “We’ve already sold three or four cases of mince pies this year. Although some people moan about Christmas starting earlier every year, when customers see products like this they’ll buy them because they like them, even if Christmas is still three months away. “We’ve found that, with Christmas and Halloween, once you have these products on display, you’ll get a lot of impulse purchases on top of people making their Christmas shopping trips. Lots of people pick up tubes of Christmas sweets, for example. “You also have to pay attention to what your customers want. This year we’ve already had customers asking us for tins of biscuits, so we’ll put those on display soon.”
top tipS Emma Thornton, celebrate portfolio director, Mars Wrigley Early promotions on boxed chocolates can help kick start your season. However, it is important to capitalise on sales opportunities in the week before Christmas. The final two weeks leading up to Christmas will always be busy, so you should ensure you are fully stocked with a range of chocolate products right up to Christmas Day. Make premium prominent – give your shoppers a fully stocked range of gifts to encourage shoppers to trade up to premium presents for the special people in their lives. Use all PoS available to you to create seasonal in-store theatre that makes products only available in the season, such as Maltesers Reindeer, unmissable. Help shoppers find confectionery whatever their mission by placing confectionery at multiple points around the store – don’t forget to ensure that it’s close to the entrance and near the till. The 2018 Christmas disp lay at One Stop Stoke Aldermoor, courtesy of retailer Dan Amin
SNACKING ALONGSIDE confectionery, a selection of sweet and savoury snacks is vital for Christmas. Crisps, nuts and snacks are the second most popular premium category at Christmas after confectionery. Many customers will be looking for the most recognised brand names, the likes of Walkers and KP, as they stock up for the Christmas holiday.
It’s also worth considering the types of snacks shoppers will want to enjoy with alcoholic drinks. Cross-merchandising nuts with your beer selection, for instance, could be a great way of boosting spend. Matt Collins, trading director at KP Snacks, says: “Christmas captures attention, but don’t forget business as usual and that shoppers nipping out
to grab last-minute distress purchases can be interrupted and inspired by PoS. “Sainsbury’s and Tesco both saw a year-on-year decline in sales between Christmas and New Year in 2017, which could be attributed to consumers nipping out to their local store on top-up missions, rather than visiting the big stores.”
8-21 OCTOBER 2019 betterRetailing.com
HOME BAKING FOR many shoppers, Christmas is the time to get in the kitchen and do some baking. Convenience stores can step in by being the place to make those last-minute distress purchases in the run-up to the big day – for instance, customers who have run out of flour or icing. “Seasonal occasions bring huge peaks to the home baking category, with Christmas the biggest period for sales,” says Jen Brown, head of marketing, cake & dessert at Dr Oetker. “In the six-week period leading up to Christmas, there is a 40% uplift in sales, and sales of cake
decorations, ingredients and mixes total £33.6m. Seasonal-specific mixes and decorations are helping to drive the uplift, worth £1.6m of the category during this period.” According to Brown, the most popular bakes in the festive season are Christmas cakes, yule logs, gingerbread and iced cookies. “The key sectors that drive the uplift at Christmas are marzipan (£2.4m), icing (£1.4m), decorating icing (+£761k), and shimmers and lustres (£254k) ranges. “These can be used for traditional Christmas cakes, as well as extravagant centrepieces and novelty decoration,” she explains.
key lineS Four key baking ingredients to stock at Christmas Marzipan Icing Decorating icing Shimmers and lustres
the stat
40%
The sales uplift of cakemaking products in the run-up to Christmas KEL0223_Elf On the Shelf Trade Ad_RE-Mini_AW1.pdf
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CATEGORY ADVICE TOBACCO & EMERGING PRODUCTS
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8-21OCTOBER 2019 betterRetailing.com
TOBACCO, £18bn VAPING AND BIG OPPORTUNITIES the stat
The value of the UK tobacco market in 2018/19
Next-gen products are growing in importance for retailers, but that doesn’t mean you should neglect your tobacco range, reports DARYL WORTHINGTON
UNDERSTANDING IS EVERYTHING SELLING nicotine products is becoming an increasingly complicated business. Whether it’s understanding the legislation on tobacco or getting a grip on all the different types of e-cigarettes that are available, retailers need to be more switched on than ever about this traditional core category.
“Since the introduction of EUTPD II and standardised packaging, there is now markedly more responsibility on the part of wholesalers and convenience store owners to really understand their tobacco offering, from the broader category to the various sub-sectors and their rela-
tive pricing,” says Duncan Cunningham, head of corporate and legal affairs at Imperial Tobacco. Building a knowledge of these ranges isn’t easy, but understanding where the growth and opportunities are is vital if retailers are going to get the most from tobacco and emerging products.
YOUR CUSTOMERS ARE THINKING A B O U T S W I T C H I N G .*
*Whilst quitting tobacco completely is the best decision a smoker can make, for those who don’t, there are better alternatives to smoking.
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CATEGORY ADVICE TOBACCO & EMERGING PRODUCTS
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TOBACCO STILL GOING STRONG
MUCH has been made about the growth of the next-gen tobacco market, and while it’s clear that this has been an increasingly significant category in the past 10 years, tobacco is still important, with many retailers continuing to see it as one of their primary footfall drivers.
“The tobacco market has remained bullish over the past 12 months,” says Imperial Tobacco’s Duncan Cunningham. “Even with the introduction of EUTPD II and standardised packaging regulations, we still see clear opportunities to bring products to market that meet consumer demand
and ensure adult smokers continue to enjoy new tobacco experiences.” There is data to back up these conclusions. According to our Retail Success Handbook: What to Stock, the bestselling cigarettes, JPS Players Real Red Superkings 20s, offer
average weekly sales per shop of £143, with distribution in 92.1% of stores. The bestselling rolling tobacco, meanwhile, Amber Leaf 30g, is distributed in 95.45% of shops with average weekly sales of £154.97 per shop. Interestingly, there are also several cigarette products that have relatively low distribution, but offer good weekly sales where stocked. As cigarette customers tend to stick to their favourite brand, you could be losing customers if you’re not stocking their preferred choice. Rothmans Blue Superkings 20s, Chesterfield Green Superkings Menthol 20s and Sovereign Dual King Size 20s are all stocked in less than 75% of convenience stores, yet combined offer average weekly sales of £98.78, meaning a quarter of retailers could be missing out by not selling these lines.
ROLL-YOUR-OWN TOBACCO, AND CIGARS SINCE 2010, roll-your-own (RYO) tobacco’s share of the market has grown by 10%, coinciding with a roughly 10% drop in cigarettes, showing where smokers’ tastes are heading. “The value segment continues to grow as consumers seek out value-for-money products. As a result, the RYO category has grown 7.6% year on year, now generating sales of £2.7bn,” says Ross Hennessy, head of sales at JTI. “With 6.5 million kilograms of rolling tobacco sold in the UK each year, this category offers significant opportunity for retailers to maximise sales by stocking
up on value RYO products, such as JTI’s Sterling Rolling Tobacco, which is now the UK’s fastestgrowing tobacco brand. “Other brands to stock include Amber Leaf, which is the number-one tobacco brand in the UK, with a 30.5% share of the RYO market.” Cigars are another important category for retailers to bear in mind, especially around Christmas. Alistair Williams, country director for Scandinavian Tobacco Group, says: “Miniatures have grown by 2.8% in value to £105m this year. The segment also con-
tains the fast-growing cigar in the market – Moments Blue – which has grown its share from 4% of cigars in 2013 to 14% in 2018.” “The total value of the cigar market in the UK is approximately £197m,” Hennessy explains. “Miniature cigars are the leading cigar category and growing in share terms, with a current market share of 74.8% and is the fastest-growing cigar sector. “For example, each year, cigar sales follow a very similar seasonal pattern, with a spike in volume. “In December 2018, cigar sales volume increased by 7.5% versus the prior month,” he says.
Kam Nijjer, from Budgens Meriden, stocks a range of Cuban cigars from a local supplier in his store. He says they’re a premium product, which offers a good margin. “They give us a point of difference with our competitors, such as the local Co-op. They’re popular with our customers as well, especially around special occasions,” he says. Nijjer’s also found that smoking paraphernalia can drive extra impulse purchases. “We stock painted lighters by our till,” he explains. “These have been a great source of impulse sales.”
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Duncan Cunningham, head of corporate and legal affairs, Imperial Tobacco “IMPERIAL suggests organising tobacco products by brand, range and price segment – sub economy to premium – ensures availability is consistently maintained. “In England and Wales, smoking accessories, such as rolling papers and filter tips, are not currently subject to the tobacco display ban and so can continue to be displayed and kept in public view. “Our intelligence and brand teams collaborate closely, actively monitoring category trends to both cater for and react to changing consumer tastes, while ensuring adult smokers continue to enjoy new tobacco experiences. “Retailers can also take note of their bestselling cigarettes and roll-your-own products and always ensure their stock rooms contain enough backups to replenish gantries, should supplies run low.”
YOU SHOULD BE THINKING ABOUT H E AT E D T O B A C C O A LT E R N A T I V E S .
More of your customers will look to quit cigarettes. Whilst quitting tobacco completely is the best decision a smoker can make, for those who don’t, there are better alternatives to smoking. That’s why there’s never been a better time to start stocking HEETS.
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CATEGORY ADVICE TOBACCO & EMERGING PRODUCTS
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8-21OCTOBER 2019 betterRetailing.com
THE NEXT-GEN OPPORTUNITY THE past decade has seen nextgen tobacco products rocket in popularity, making the category harder and harder to ignore. Retailers might feel they cannot compete with specialist vaping stores, but that isn’t necessarily the case. “Many retailers have seen the benefit of the lucrative and growing vaping category and have
looked at ways to offer a wide range of products,” says Ben Mison, head of sales at Vapouriz. “Vapers are realising that they don’t need to visit specialist vape shops to get branded e-liquids, kits and accessories.” Convenience and value are where retailers can really gain an advantage. Retailer Jey Sivapalan’s Go Local convenience
store is in a residential area outside Derby. Although relatively new to the next-gen nicotine category, he has an extensive range and plans to expand it. “E-cigarettes are getting more popular in our store. We sell a lot of Edge refills, and we do a three-for-£6 offer on these, which keeps our rate of sale up and gives us a good margin.”
Although customers might buy their initial vaping device from a specialist shop, newsagents and convenience stores can get good results by being the local place to go to for refills. “The key to success lies in offering a range that suits their shoppers needs,” says John Patterson, sales director at Juul Labs. This depends on retailers’
customer demographics and sales, but the top three closed pod Starter Kits in terms of sales are Juul, MyBlu and Vype Epen 3. Juul has four out of the five bestselling refills.” Patterson continues: “With less than 4% of vapers being never-smokers, growth will come from switching current smokers to vaping. Almost 60%
of adult smokers want to quit, and flavours and nicotine levels play important roles, so ensure mint and fruit flavours are displayed in addition to tobacco across a range of strengths.” Learn more about vaping with our recent Retail Success Handbook. Call 020 3871 6490
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Nick Geens, head of reduced-risk products, JTI “WITHIN the vaping category, capsule and refillable products are in growth and are now used by most UK vapers. To provide a successful vaping offering for their customers, convenience store retailers should stock a full, consolidated range that includes Logic Pro, Logic LQD, and the new Logic Compact, which has launched in the independent and wholesale channels after successful distribution into grocery last year. “They can also tap into the demand for value e-liquids by stocking the new Logic Epiq range. With an RRP of £2.50 and available in price-marked packs, Logic Epiq is available in two different strengths and eight flavours, reflecting the UK’s most popular vaping flavours; fruit (41%), followed by menthol (29%) and then tobacco (19%).”
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CATEGORY ADVICE DIWALI
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LIGHTING THE CANDLE FOR DIWALI The festival of light is an important time for Hindus, Sikhs and Jains, bringing friends and families together. PRIYANKA JETHWA outlines the most popular products during the period
TRADITIONAL DISHES FOR Hindus, Sikhs and Jains across the country, Diwali is a time when friends and families get together to celebrate the festival of light by heading to the temple and enjoying food and drink. For retailers, this presents an opportunity to showcase the best range of savoury snacks and sweets for shoppers to stock up on before heading out to parties and gatherings at home.
But the key to this lies in knowing what products are popular and associated with Diwali, and then arranging them in a way that is appealing, focusing on in-store theatre. Salih Sheikh, head of marketing and digital at Bestway Wholesale, says that it advises retailers, particularly those near cities such as Leicester, London and Birmingham, to help maximise Diwali
shopping and make it as easy and convenient for shoppers as possible. He adds: “Creating a dedicated Diwali stand in store where ambient products are displayed together – such as basmati rice, packets of mixes to make dishes such as Pakora and Dahi Vada, spices such as garam masala and chaat masala, and cooking oils such as butter ghee, vegetable and sunflower oil – will mean
shoppers can easily find everything they need and encourage multiple purchases.” However, while having a range of popular Indian products is important, retailers shouldn’t forget that the most popular treats served at Diwali are normally those made at home. This includes Mithai (Indian sweets) that require ingredients such as sugar, chickpea flour and condensed milk.
8-21OCTOBER 2019 betterRetailing.com
MERCHANDISING WHEN it comes to putting together a display for Diwali, it’s worthwhile checking out what PoS kits suppliers are offering retailers to make preparations easier, whether you’re in a densely populated Indian community or not. This year, Ferrero is focusing on Diwali by launching bespoke PoS kits including
themed posters and shelf talkers, available to order on its trade hub yourperfectstore.co.uk. The kits will contain similar Christmas-themed PoS as well to help support retailers during a busy time in the year. Levi Boorer, customer development director at Ferrero, says: “We’ve placed a lot of
key lineS Cofresh Chakri and Bombay Mix RRP £1 Cofresh Peri Peri Corn Crackers RRP £1 Rubicon 2l RRP £1.79 Rubicon Deluxe RRP £1.69 Tilda Pure Basmati 10kg (plus 1kg free) RRP £15.99 Limited-edition 2kg tins of Tilda Pure Basmati RRP £5.99
focus on religious festivals for a number of years now. We invested in research, which revealed that 71% of retailers at the time weren’t actively engaging around the occasion with their customers. There’s been a real shift since then.” Debbie King, director of commercial sales and marketing at Cofresh, says to
maximise impulse purchases, retailers should display Diwali snacks close to the till. “Consider creating a clear Diwali snacking zone so that customers can easily find what they’re looking for. Also, make the most of manufacturers’ PoS material,” she adds.
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CATEGORY ADVICE DIWALI
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8-21 OCTOBER 2019 betterRetailing.com
SAVOURY SNACKS AND MEALS DIWALI is a key festival for many shoppers and presents a great opportunity for independent retailers to drive sales. During this celebration, basmati rice plays a central role because of its versatility in complementing other flavours, particularly Asian food, with it being a key staple in Indian cuisine.
in the total convenience market and growing faster than the category, which is growing at 13%,” he explains. To help support retailers during Diwali, the supplier has launched a national TV advertising campaign, promoting packs of Tilda Pure Basmati 10kg, which offer ‘10% extra free’, and lim-
Dilip Srinivasan, commercial marketing manager at Tilda, says the supplier sees sales of Basmati rice peaking significantly during this time and the festival period usually accounts for 33% of total annual voLume of large bags of Basmati. “Tilda’s big bags are growing by 58% in value with-
ited-edition 2kg tins of Tilda Pure Basmati. Cofresh is also bringing out limited-edition varieties of its bestselling Bombay Mix and Chakri, available in big bags, in 900g and 650g formats. Also available this year are Cofresh Corn Crackers, that come in 120g bags, and
three spicy flavours, including Hot & Spicy, Chilli & Lime and Peri Peri. “We know that Diwali is a key selling time for independent retailers, but it’s important to ensure you stock the right range for your customers otherwise you could miss out on valuable sales,” adds King.
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SOFT DRINKS FOOD and drink are at the heart of festival celebrations, and Diwali is no exception, with sales of exotic juice drinks increasing by 42% at this time. Having a large range of flavours to choose from in larger pack formats is important to shoppers, particularly when they are catering for large family gatherings with a range of tastes. Adrian Troy, marketing director at Barr Soft Drinks,
says that drinks like Rubicon provide a major opportunity to drive sales with a broad choice of flavours. He advises retailers to make the most of PoS to drive impulse sales and create instore theatre at the fixture. “Rubicon Deluxe, available in Mango and Guava flavours, is a must-stock product range at Diwali. These higher-sugar, more indulgent products are ideal for special occasions and entertaining,” he explains.
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PROFILE
34
8–21OCTOBER 2019 betterRetailing.com
RETAILER PROFILE KOPI KALANATHAN COSTCUTTER KIRK SANDALL Location: Kirk Sandall, South Yorkshire Shop size: 3,000sq ft Bestselling lines: Fresh & chilled, slush drinks and soft drinks
‘YOU MUST STAND OUT TO SUCCEED’ DARYL WORTHINGTON KOPI Kalanathan set optimistic targets for his new Costcutter in Station Retail Park, Kirk Sandall, yet even he didn’t expect to start hitting them within the �irst week of opening. “The weekly �igures I hoped to get after six months, we started getting almost straight away,” he reveals. “We have a great location, next to a train station, in a residential area and close to some industrial sites, which means we get a variety of customers with different needs. We put on a big opening event, with the mayor of Doncaster, musicians and a bouncy castle, so the locals really knew we were here.” Kopi also runs several stores in York. That experience has taught him the importance of really thinking about promotion. “These days, if you’re going to make a convenience store a success, you have to make it stand out and offer something different,” he says. For him, a clear example of this is the slush drinks he offers. As well as providing a great margin, they drive footfall. “These drinks aren’t just popular with kids, adults will
buy them as well,” he says. “Customers come in and take photos of the drinks and then post them on Facebook or Instagram. We’ve had people coming from towns 15 miles away to buy them.” Of course, maintaining such a big range can be demanding. “You need to keep an eye on the section, because of spillage and mess,” he explains. “On weekends, when it’s busiest we’ll have a member of staff looking after it all the time, and we make sure the night cleaner gives it a thorough check in the evenings. It’s a big investment, but it’s de�initely been worth it.” This drive to �ind unique lines isn’t just limited to Kopi’s slush. He stocks US soft drinks and confectionery, such as American Fanta, as well as having a food-to-
go counter. “We’re the only store in England stocking Porrelli ice cream. We have to order it in bulk and organise the delivery ourselves, as the supplier is based in Scotland,” he explains. “It’s selling really well, though – it drives footfall to our store.” Getting the balance between the premium items and value products is, of course, important to ensure the store can appeal to a wide mix of customers, and not just those looking for pre-
IT’S A BIG INVESTMENT, BUT IT’S DEFINITELY BEEN WORTH IT
mium products. “We stock Cook ready meals, which are expensive, but they’re a high-quality product that a lot of our customers like,” he says. “We have lea�lets available from the supplier, which explain how they’re made from fresh ingredients by professional chefs. “We understand they’re not for everybody, so we have them opposite the lower-priced products. This means when a customer enters our frozen section, they’ll �ind something that’s right for them.” Kopi works to make his store as practical for his customers as possible, while also giving them a memorable experience to keep them coming back. “We have a really good foodto-go range, with fresh pizzas and paninis, and a seating area where they can eat in if they want to,” he explains. “These things bring customers to our store, making them more likely to stay and do the rest of their shopping.” To see more photos of Kopi’s store, go to betterRetailing.com/storeprofiles/costcutter-kirk-sandall
for the 1 Look latest technology Kopi says: “We use twoway fridges in our drinks section. This saves us money in electricity bills, gives us extra space and makes it easier when we’re restocking the section.” the store 2 Make your own “We design a lot of our own signs, then work with Costcutter to get them made. They give the store a personal touch, and the science and maths slushy signs are a talking point for customers.” the 3 Follow latest trends “From US confectionery and soft drinks to vegan ranges, it’s important to follow the latest trends. This helps bring new customers to the store, and keeps the existing ones happy,” he says.