Retail Express - 2 November 2021 by BetterRetailing

THE RETAIL ENERGY CRISIS

• Average store facing £824 monthly bill hike • Local shops in fixed-term contracts hit with ‘shock’ price rises • Find out how other retailers are P3 cutting back on their usage

2-15 NOVEMBER 2021 STRICTLY FOR TRADE USERS ONLY

LEGISLATION CHANGES

ACCURATE CRIME DATA

DELIVERY POST-COVID

MPs propose increasing legal age to buy tobacco from 18 to 21 in raft of new measures

Superintendent reveals how the police are planning to make reporting crime easier

How retailers can turn short-term lockdown delivery wins into long-term gains

BACK PAGE

PROUD WINNERS OF

Sterling Rolling 30g 3-in-1 Pouch

Nordic Spirit Mint Extra Strong

JTI Sales Team

Ross Hennessy, Sales Vice President at JTI UK We are thrilled to have received these three accolades – most importantly because they have been voted for by our valued customers. Our brands are going from strength to strength in retail, with Sterling the UK’s leading value RYO brand* and Nordic Spirit the UK’s no.1 nicotine pouch in traditional retail**. Our passionate sales team work tirelessly to support retailers across the country, so it’s rewarding to see these efforts culminate with award wins.”

Stock up on JTI’s award-winning products now!

Retailers should visit www.jtiadvance.co.uk or speak to their local JTI Sales Representative for more information. *IRi Market Place, Volume Share, Total RYO/MYO, Total UK, Jun 2021 **IRi Market Place, Volume Share, Nicotine Pouch Category, Total UK, YTD Jun-21. For more information or to verify comparison contact Nordic Spirit on Facebook or Instagram: @nordicspirit_uk or using our details at nordicspirit.co.uk/contact

jti.com/uk

FASCIA GUIDE

Five symbol groups and five retailers analyse the past year and make pledges for the future

P28

FOCUS ON FASCIAS

2-15 NOVEMBER 2021 STRICTLY FOR TRADE USERS ONLY

Find your fascia

PS look back at 2021 FIVE FASCIA GROU 2022 and make plans for assess how of 2021, and then

THE RETAIL ENERGY CRISIS

FOCUS ON

FASCIAS

journey they have been at starting on their those successful years have ers THE past two new site, as well as for reaching them and realising and chal- at a been with them been different their aims. unprec- who have also be time. The technologilenging in almost Retail Express will joined For those a long and initiatives who edented ways. stores cal innovations to talking to retailers retailers who have fascias that symbols have brought to each fascia group recently to their experience in partnership with having bear have allowed retailers and �ind out what the supand symbol groups, these better control their stock has been to work with prefduring customer their support port of a symbol. a con- understand the end times will have madeto their erences. But there is always And as we come to and year, with they could be doing siderable difference tumultuous more this of around be doing. businesses and well-being. helped want to �ive so much uncertainty Symbol groups have chopIn the following pages,Cost- delivery, availability and more, the retailers navigate years in fascia groups – Parfetts, group will also lay Spar each fascia Nisa, One Stop and py waters of recent hopes and aspiraways. They cutter, back on the year that out their as well as their many different 2022, look – for tions range g the for the new year have provided a strongattract has passed, rememberin the fresh pledges will they made and of products that offered pledges set out at the start and beyond. have They they customers. for retail- plans training and support

• Average store facing £824 monthly bill hike • Local shops in fixed-term contracts hit with ‘shock’ price rises • Find out how other retailers are cutting back on their usage

LEGISLATION CHANGES

ACCURATE CRIME DATA

DELIVERY POST-COVID

MPs propose increasing legal age to buy tobacco from 18 to 21 in raft of new measures

Superintendent reveals how the police are planning to make reporting crime easier

How retailers can turn short-term lockdown delivery wins into long-term gains

BACK PAGE

our say

Megan Humphrey, editor

Keep your head up during this tricky time IT’S hard to find something to be positive about right now. We are being faced with daily news reports showing the UK’s infection rates increasingly rising, as well as concerns about how much the energy crisis is putting a strain on retailers’ pockets. We’ve heard this week how some stores are having to pay an extra £824 a month, on average, to supply their premises with gas and electricity. As we enter darker nights, and a subsequent drop in temperature, it’s understandable fears are high about how much longer budgets can be squeezed. Although retailers have shared some tips that can be put to use today to help keep costs down, I suspect the impact of this will continue even once the crisis lessens. I spoke to a retailer last week who has opted to implement a confectionery bay into their newly-refitted store instead of new chillers, due to uncertainty over fluctuat- IT’S ing bill prices. UNDERSTANDABLE It seems the soaring costs are already an influence in retailers’ FEARS ARE HIGH investment decisions. This shows how reactive retailers remain to be, even during the toughest of times. This can be a positive, but over the next few months, seek external advice if you are unsure on something. By all means continue trusting the gut instinct that got you through the most challenging 18 months, but getting help isn’t a sign of weakness. Sometimes it’s not worth taking the risk when you don’t have to, but rather about keeping sales and your store safe.

The five biggest stories this fortnight 01

MPs push for tobacco age change to stop smoking MEGAN HUMPHREY

NEW proposals made by MPs to change the law around selling tobacco and e-cigarettes will have “far-reaching implications” on retailers, the Tobacco Manufacturers’ Association (TMA) has warned. Last month, Labour MP Mary Foy submitted an amendment, backed by the Royal College of Physicians and Cancer Research UK, to

the Health and Care Bill currently going through parliament in an effort to get people to quit smoking. Suggestions by Foy would allow the health secretary to raise the legal age for buying cigarettes from 18 to 21; stop e-cigarette makers using tactics that might entice children to try them, such as sweet �lavourings and cartoon characters; and make it illegal to give e-cigarettes away free as

sampler products. TMA director Rupert Lewis told Retail Express: “Tobacco products are already regulated under the Tobacco and Related Products Regulations (TRPR) 2016, which is subject to an ongoing review, due to be published by the end of 2021. “The government should use the TRPR review as the appropriate opportunity to assess all the evidence

available before deciding whether regulatory changes are indeed necessary, given smoking rates have been in decline for a number of years.” Foy’s recommendations would also empower the government to impose a new levy on tobacco company pro�its, with the proceeds from the levy being used to fund ‘stop smoking’ activities.

FOR MORE ON HOW RETAILERS ARE OFFSETTING THE IMPACT OF RISING ENERGY BILLS, SEE PAGE THREE @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 3357 Features editor Charles Whitting @CharlieWhittin1 020 7689 3350 Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361

Editor – news Jack Courtez @JackCourtez 020 7689 3371 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355 Features writer Jasper Hart 020 7689 3384 @JasperAHHart

News reporter Junior Designer Suhara Pavithri Jayasena Miriam Garofalo @suharajourno Production coordinator Production editor productioncoordinator@ Ryan Cooper newtrade.co.uk 020 7689 3354 020 7689 3368 Sub editor Jim Findlay 020 7689 3373 Sub editor Robin Jarossi Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380

Director of sales and marketing Matthew Oliver 020 7689 3367 Senior account director Charlotte Jesson 020 7689 3389

Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379 Senior news reporter Alex Yau @AlexYau_ 020 7689 3358 Editor in chief Louise Banham @LouiseBanham

Publisher fee rise

PUBLISHERS have been hit with a temporary fee rise by Menzies Distribution to offset rising mag distribution costs. Several senior sources con�irmed the rise last week. The increase will protect retailers from a carriage charge hike. Menzies is alleged to have

Account manager (new business) Jimli Barua 020 7689 3364 Management accountant Abigayle Sylvane 020 7689 3383 Managing director Parin Gohil 020 7689 3375

42,281

told distributors it was having to increase pay for drivers to protect deliveries both into other wholesale depots and to retailers. NFRN national president Narinder Randhawa said it was “a really positive development and win for the NFRN”.

PayPoint scheme

PAYPOINT stores in areas with poor cash access have been recruited to take part in a new ‘cash over the counter’ scheme, paying 13p for every customer withdrawal. The Counter Cash service, which launched on 1 November, allows customers to

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

Account manager Adelice Tatham 020 7689 3366

Account director Natalie Reeve 020 7689 3372

Subscribe online at newtrade.co.uk/our-products/ print/retail-express. 1 year subscription: UK £65; overseas (EU) £75; overseas (non-EU) £85 Retail Express is printed and distributed by News UK at Broxbourne and delivered to news retailers free by their newspaper wholesaler. Published by: Newtrade Media Limited, 11 Angel Gate, City Road, London, EC1V 2SD; Phone: 020 7689 0600

Wage rise threat

NFRN national president Narinder Randhawa has warned the National Living Wage rise could negatively impact independents. Last week, it was con�irmed the UK National Living Wage will increase from £8.91 to £9.50 per hour, equating to

6.6%, for all those aged 23 and over. However, Randhawa said the increase will threaten jobs in the sector, due to it not including “the increase in National Insurance and pension contributions that employers also have to pay”.

withdraw any denomination from 1p to £50 for free. Customers can also check their balance, earning retailers 8p per enquiry. PayPoint said the service would cut banking charges by “recycling” cash received for other services.

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

Getir franchisees

RAPID delivery company Getir is seeking franchisees in the latest stage of its growth strategy. As reported by The Grocer, the company launched its franchise model last month and aims to convert its existing network of dark sites into

franchise branches. Getir uses dark, privatelyowned distribution facilities to pack and deliver goods in up to 10 minutes. In documents sent to applicants, the �irm said it was seeking an investment between £138,000 and £203,000.

Audit Bureau of Circulations July 2020 to June 2021 average net circulation per issue

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

For the full story, go to betterRetailing.com and search ‘National Living Wage’

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

@retailexpress facebook.com/betterRetailing

2-15 NOVEMBER 2021 betterRetailing.com

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

Stores left ‘unprofitable’ as energy bills soar SUHARA PAVITHRI JAYASENA INDEPENDENT retailers across the country are being forced to generate thousands of extra pounds to foot rising bills due to the ongoing energy crisis. A survey by Retail Express of 15 retailers found each store, on average, had experienced a 35% hike in their energy bills in the past month as a result. Last month, the price of natural gas soared, putting 14 energy suppliers out of business in just over a month. The combined challenges created availability issues and rising overhead costs, worsened by the petrol shortages experienced in September. Multi-site retailer Steve Bassett told Retail Express bills across his �ive stores in Weymouth jumped by 25%, despite being in a �ixedterm contract. “I thought I was pretty safe in a �ixed contract, but my bills have actually gone up from £30,000 to £125,000 in one year,” he said. “When I questioned it, they showed me the small print in my contract that allowed them to do this.” Prestonpans retailer Ferhan Ashiq experienced a 19% increase to his bills for one out of two of his stores, which has resulted in it being unpro�itable. “I switched energy providers earlier this year be-

GOOD WEEK DARK SITES: Home delivery start-up Grocemania is seeking more partnerships with retailers to lease space in their stores as dark sites. The firm’s founder, Askar Bulegenov, told Retail Express it is using the strategy to help expand throughout the north of England. “There are thousands of independent retailers based across the UK, many who have free space like this,” he said. LOYALTY: Store loyalty firm Jisp has achieved 10,000 scans, 5,000 taps and 2,000 redemptions within five weeks of its Scan & Save trial with 14 Nisa stores. The trial allows customers using the Jisp app to get exclusive promotions by scanning barcodes with their smartphones. According to Jisp, the trial has also helped boost sales of soft drinks and alcohol. For the full story, go to betterRetailing.com and search ‘Jisp’

BAD WEEK

cause I had come to the end of my contract, and as of this month, one of my stores is now making a loss every week,” he said. Energy experts warned smaller businesses are likely to be hit hardest, with some potentially facing closure with no spare funds. Utility Hut director George Bias told Retail Express: “Stores are going to need to make dif�icult decisions to help with rising costs. This might be increasing prices, and it will have to be done to protect their business. If bills are going up that

express yourself “WE have seen an increase in basket spend, especially during the pandemic, and some customers have spent £50 on groceries with us. In one case, someone spent £70 in one transaction. A lot of our customers are aware of the change. One of the benefits is the potential to decrease queuing time. Customers don’t have to fumble around anymore or spend time entering their PIN, which creates less impatience for those queuing up.” Simon Grewal, Premier Crabbs Cross, Redditch

much, you will have to try and get the money back some other way.” He urged retailers who are nearing the end of their contracts to speak to a broker “as soon as possible” for advice. “Contacting a broker is the best way for retailers to get the best price,” he said. “Once a retailer signs a contract with a company, it’s very dif�icult to get out of it, so it’s important retailers are certain before signing.” Smart Energy GB’s head of policy, Iagan MacNeil, added: “Many businesses

the column where you can make your voice heard

are eligible to get a smart meter installed on their premises and this can help by giving more control over your energy spend – a vital tool for those worried about rising prices.” However, the affected retailers told Retail Express there are steps that can be made in store to help cut usage immediately. Ashiq said: “We have a lot of fridges and we have been turning off the soft drinks ones at 6pm every evening, and turning them on at 6am the next morning. We are switching off lights in storage rooms to

help reduce costs. “I’ve also walked away from price-marked packs and used non-price-marked stock where I can, so I can increase prices by 5p.” Bassett added: “I have ordered integral energy saving fridges and will be investing more.” Amit Puntambekar, of Ash’s Shop Nisa Local in Cambridgeshire, whose current bill will result in him paying an extra £6,000 a year, said he will be forced to “put prices up” in a bid to absorb costs. He has called on the government to “step in”.

DRS: Latest speculation hints the Scottish deposit return scheme could be pushed back to March 2023, leaving retailers with little time to prepare. A senior source confirmed the proposal came from the Scottish Retail Consortium. For the full story, go to betterRetailing.com and search ‘DRS’ RATES: Despite a 50% reduction in rates bills for 2022/2023, experts remain disappointed. Chancellor Rishi Sunak confirmed the news as part of his Budget speech. However, Colliers’ head of business rates, John Webber, said “a golden opportunity has been missed to instigate fundamental reforms”. For the full story, go to betterRetailing.com and search ‘Budget’

What impact has the rise in contactless limit to £100 had on your sales?

“WE don’t tend to get customers spending more than £40 for contactless transactions. For us, the increase to £100 is a risk factor. It becomes more tempting for someone to pick up a lost card and use it for up-to-£100 transactions. If it happens inside the store, the police will then ask for evidence and threaten to remove our premises licence if we don’t comply with them.” Kiru Nadarajah, Everydays, Hampton Village, Surrey

“I THINK raising the limit is a bad idea. £45 is more than enough as a limit for contactless transactions. We get a lot of elderly customers coming into the shop who don’t want to use contactless and would much rather use cash. There might potentially be an opportunity at Christmas for bigger transactions to take place, but the risk of someone coming in and using a stolen card is too high for us right now.” Paul Patel, Dibden Purlieu News, Southampton

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

Paul Patel

NEWS

2-15 NOVEMBER 2021 betterRetailing.com

Making reporting crime easier MEGAN HUMPHREY POLICE superintendent Patrick Holdaway is investigating ways to make reporting crime easier to ensure responses to incidents are adequate. The comments came at the All-Party Parliamentary Group on retail crime earlier this month. The meeting was attended by the NFRN’s newlyelected national president,

Narinder Randhawa, NFRN head of political engagement Adrian Roper, retailer Mo Razzaq, ACS government relations director Ed Woodall and Keystone Consulting director Fiona Cuthbertson. Holdaway told Retail Express: “It’s so important that we get all the information we can when incidents happen. Even if we haven’t got a known offender, we still want to know about it. We need to

know where incidents are taking place. “If we are able to make reporting crimes easier, then this will help the police be able to respond better. Tesco has their own crime database, and they record incidents on their system, which is connected to the police directly. This means staff don’t need to make a phone call to report low-level crime, only if their service is needed.”

It was also reported in the meeting there’d been no movement in pushing the Home Of�ice to amend its Police, Crime, Sentencing and Courts Bill to create new offence for attacking shopworkers. However, Woodall con�irmed the trade body has a plan to target MPs to lobby for the need for this law now, and suggested collaboration with the NFRN would be of use to build traction.

#retailtogether

Stores must level up EXPERTS have urged independents to learn from the government’s ‘levelling up’ agenda by tailoring their store to local needs. Speaking at the ACS’ Heart of the Community event last month, well-being and government policy expert Nancy

Hey said stores would bene�it from “understanding what people need in a certain area and keeping that unique”. An ACS poll revealed 58% of convenience retailers believe Covid-19 improved their business standing in their community.

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

TRDP IN EPOS NAME CHANGE

We know that it’s been one of the most challenging years in independent retail with the way you need to run your stores having changed almost overnight. We also know that with the lack of physical events taking place, there’s less of a chance to connect with like-minded retailers. That’s why we started #retailtogether, an informal digital networking event to help independent retailers share experiences, discuss issues and ideas, and see a few friendly faces.

EPOS provider The Retail Data Partnership (TRDP) has changed its name to ShopMate, with TRDP now acting as its parent company. The new website, shopmate. co.uk, will enable retailer customers to access all information related to products for the convenience market and provide helpful guides, news and insights. A new online reporting por-

tal will also be released, helping retailers gain access from any device.

Grocery price rises SYMBOL groups and independent retailers are likely to see further in�lation and range reductions due to ongoing supply chain issues, according to latest data. In October, Kantar revealed that grocery prices rose 1.7% in the previous four weeks, with the average household

now spending an extra £5.94 on groceries, compared with the same time last year. Head of retail consumer insight Fraser McKevitt said it’s a “bet that in�lation is going to go back up at the end of this year”. For the full story, go to betterRetailing.com and search ‘inflation’

Reduce plastic waste with the nation’s favourite cup of tea

M a st ke o th ck e up sw i no tc h w & !

Shoppers are now ﬁve times more likely to buy sustainable products2 Stock the ﬁrst major tea brand to complete the transition to a fully plant-based range3 The same great cuppa that not only tastes good, but does good for the planet 1. Nielsen MAT 22/05/21 2. Harvard Business Review: Research: Actually, Consumers Do Buy Sustainable Products. June 2019 3. Major tea brand refers to those with > 10% Share of Sales Value (%) Nielsen Total Tea MAT 25.01.20

PRODUCTS

Premium key to driving sales PRIYANKA JETHWA CONVENIENCE retailers should focus on a range of premium and craft beers this Christmas, with innovation in the market key to increasing pro�its. This is according to Sunny Mirpuri, sales director for convenience and wholesale at Budweiser Brewing Group UK&I, who told Retail Express in an exclusive interview that

consumers who normally opt for brands such as Carling and Foster’s are increasingly trading up, so giving equal space to these lines is important. These brands, he said, are incremental to the category and won’t detract from sales of standard beers. Having full availability of standard and premium options will ensure growth and give maximum opportunity for sales.

“Corona is doing particularly well, and bigger packs are popular in the convenience channel in terms of sales. Corona 12x330ml grew by 20.1% in value versus last year,” he said. Mirpuri added that Stella Artois 4x568ml pack remains the bestselling beer line in convenience, and research indicates 60% of beer consumers only buy pint-sized cans (568ml).

Pun boxes and snowballs from Bonds CONFECTIONERY supplier Bonds has launched its 2021 Christmas range, which includes festive Pun Boxes, Toffee Snowballs and Shaker Cups. The range caters to children and adults with products such as new Christmas Lollipops, which are shaped like seasonal characters such as Santa Claus, elves and gingerbread men.

Sports drink iPro in Parkrun expansion SPORTS drink brand iPro has announced a six-year partnership with community �itness event Parkrun as its of�icial hydration partner. The sponsorship is intended to support the brand’s expansion into wider convenience and wholesale markets as it was previously only available to Spar and Co-op retailers and some

ASSESS. COMPARE. IMPROVE

IAA

2-15 NOVEMBER 2021 betterRetailing.com

#IAA22

BENCHMARKING

forecourts. As part of the partnership, iPro is launching a new wellness range, iPro Hydrate, in four varieties, including Berry Mix, Orange & Pineapple, Citrus Blend and Mango. These have an RRP of £1.69 each and come in 500ml bottles. Parkrun, the Saturdaymorning 5km running event held across 22 countries, has attracted more than seven million people so far.

ARE YOU THE NEXT BEST SHOP? The Independent Achievers Academy gives you the tools to grow — it’s a springboard for success. Take part and see for yourself.

Fruit Shoot opts for recycled packaging

IAA Benchmarking - 2021 RN.indd 1

18/10/2021 17:39

BRITVIC has begun transitioning single and multipack bottles of its core Fruit Shoot range to clear 100% recycled plastic bottles, as part of its aim to make all its bottles produced and sold in the UK 100% recycled plastic by the end of 2022. It has also reformulated the range’s recipe, making it preservative-free, and refreshed the packaging for the �irst time in three years. The packaging update will include hand-drawn elements added to each bottle. This will all be backed by a marketing campaign spanning outdoor and digital advertising early

next year, with the tagline ‘New clear bottle, just as fruity!’.

The

No. 1 Mixer brand in convenience.*

You’ve got the Christmas spirit... We’ve got the tonic.

On the lead up to Christmas, Schweppes Mixer sales in convenience go up by around 50%, so stay stocked up!!**

To find out more email connect@ccep.com, call 0808 1 000 000 or visit my.ccep.com to request festive Schweppes POS.

Source: Nielsen Total Impulse Value MAT w/2 19.06.21* Nielsen Value Symbols and Indies 2 weeks to Christmas 2018 = 50%; 2019 = 60%; 2020 = 44%**

COC1437_Schweppes OFFTrade Ad_RE_AW2.indd 1

25/10/2021 10:06

PRODUCTS

James Hall targets food waste PRIYANKA JETHWA JAMES Hall & Co Ltd has expanded its partnership with the app Too Good To Go to reduce food waste across its company-owned Spar stores. All Spar stores under the name of G&E Murgatroyd will participate in the initiative, which includes 150 stores in Cheshire, County Durham, Cumbria, Greater Manchester, Lancashire, Merseyside, Northumberland, Tyne and Wear, and Yorkshire. Through the partnership, users of the Too Good To Go app are able to get ‘magic bags’ of miscellaneous surplus stock, close to the end of its shelf life, but still within

its best-before date at a fraction of the full retail value. The company began trialling the app in September last year, initially in a limited number of 10 company owned stores in Lancashire and Merseyside, before rolling it out wider to 45 stores. Fiona Drummond, company stores director at James Hall & Co Ltd, said: “Since we launched the partnership service 12 months ago, it has brought multiple bene�its to our business, including reducing costs and saving a huge amount of waste food. “Not only that, it has enabled us to better connect with the communities we serve across northern England.”

New pack design for Plymouth Gin PERNOD Ricard UK has unveiled a new bottle design for its Plymouth Gin brand, rolling out this month. It has paper labels and recyclable plastic materials, and the brand’s monk logo is now directly embossed onto the glass instead of being applied by a plastic label. The new design will roll out across the brand’s entire range, including Original Strength, Navy Strength, Sloe Gin and Fruit Cup. Toni Ingram, global brand director for Plymouth Gin, said the new bottle design is just “one of many new ini-

tiatives” Plymouth Gin will unveil this year to ensure sustainability is front and centre of its plans.

Bisto gravy returns to Violife launches TV in new campaign festive season box PREMIER Foods has invested £4m in a new TV campaign for Bisto, aimed to drive brand awareness during the key winter season. As its �irst TV campaign in six years, it will focus on its premium Bisto Best range, which delivered 30.8% value growth in a 52-week period from July 2020, and was ahead of the category

that grew at 22%, indicating shopper interest in premium gravy options. The supplier said the TV advert is an evolution of the brand’s former ‘Togetherness’ campaign, and is set to showcase wider uses for gravy, beyond the traditional roast dinner, to resonate with modern meal occasions.

Sample £126-worth Yeo Valley spices it of Helwit’s range up for Christmas

To enter, head to betterRetailing.com/ competitions

looking to work closer with convenience retailers to grow sales in the segment.

New Bombay Sapphire lemon variety PREMIER Cru Murcian Lemon gin is the latest addition to join Bombay Sapphire’s range. Available now to convenience retailers and wholesalers, the new gin has a higher-than-average ABV of 47% and an RRP of £30. Its name refers to the Fino lemons from the Spanish region of Murcia used in its production, which are grown in a speci�ic climate and picked during the late harvest season for the best �lavour. To celebrate the launch, the brand has partnered with the Mondrian Hotel, London, to create two cocktails. It is available from wholesalers now, including C&C, LWC and Coors.

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Muhammad Khalid, Costcutter, Leeds

Preparing [for a potential lockdown] in advance is key

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“IT is tough and has been throughout the pandemic. I think preparing in advance is key just in case we go into another lockdown. Stocking up and buying things in advance is probably what we will do. We have already started doing this to make sure we don’t suffer from any loss.”

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Vol 132

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Eugene Diamond, Diamond’s Newsagents, Ballymena

“TRUTHFULLY, we have not received any payments with the cards – no one I know has received or used the cards. I really believe we won’t see a massive amount of them being used with us. Maybe the balance might be used elsewhere, but not in convenience stores.” Judith Mercer, Spar Greenway, Belfast

DELIVERY: How do you ensure the safety of your drivers? “I HAVE a lot of youngsters who do the paper deliveries. Sometimes the deliveries are to flats in big buildings, and because they are young teenagers, I get a bit worried for their safety. Instead of sending them, I go to do the deliveries myself.”

Manish Mehta, William’s News, Streatham, south London

“IT is very difficult. We try to do our best, but it is hard to know what will happen once the delivery staff leave the store. We do risk assessments every time we hire a new staff member so they know what to expect, but obviously you never know what could happen.” Anonymous retailer

We do risk assessments for staff BUSINESS RATES: What does a delay in reforms mean for you?

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 3871 6490

“A LOT of customers have told me that they have been rejected from receiving one of the cards as they were told their criteria was wrong. One customer’s whole family was rejected, and I have contacted somebody to help her sort out her application. I haven’t had many sales using the cards.”

They should be scrapped altogether

“IT is just frustrating. We need more clarification and I personally think they should be scrapped altogether. I don’t think it is very competitive – if you look at online businesses, they can trade online and do not have to pay any rates. They should at least make the process simpler.” Amrit Singh, H & Jodie’s Nisa, Walsall

“IT’S just the added pressure. We have been waiting for the government to address the reforms, but there has been no announcement, and it’s getting frustrating. I hope businesses will eventually get the relief we need and want, especially with how much we have suffered.” Liam Cross, Spar Dersingham, King’s Lynn, Norfolk

ACADEMY IN ACTION

2-15 NOVEMBER 2021 betterretailing.com

The Independent Achievers Academy (IAA) is a learning and development programme that helps to increase sales and profits. Academy in Action shows how the IAA and its partners are supporting retailers to improve their stores.

We’re here to help. Call 020 7689 0500 Name: Shop: Location: Size: Staff:

Tagtar Singh News Food & Wine Windsor 950sq ft Two full-time, one part-time

PARTNER ADVICE

RESPONSIBLE RETAILING In part three of our 10-part series, the IAA and LOUISE HARRIS from JTI visit TAGTAR SINGH’s Windsor store to help him with responsible retailing BEING a responsible retailer means keeping up with the latest legislation. A responsible retailer is in a better place to prevent crime from happening, which frees them from needing the police, keeps their staff safe and marks their store as a beacon of the community, from which other businesses can learn. Tagtar Singh’s News Food & Wine, which he has run for three years, is on a busy main street in Windsor. The bulk of his crime issues stem from underage shoppers trying to buy tobacco, nextgen nicotine products and alcohol. He has no signage relating to the Think 25 scheme, and his refusals log is not regularly checked. How can the IAA and JTI’s Louise Harris ensure he is running his shop more responsibly?

Want to see more? To see more of Tagtar’s shop, and find out how you can improve your store, go to betterRetailing.com/Academy-in-Action

Tagtar comes from a great starting point. These measures will secure him as a responsible retailer, which will be great for business. Louise Harris Communications Manager JTI UK

YOUR ACTION PLAN 1 Walk your store as customer

Use the benchmarks below as a checklist to see what you’re doing well

2 Benchmark your shop

WHY I TAKE PART

Head to betterRetailing.com/benchmark to see how you can improve

As a retailer, we’re responsible for what we sell, and selling age-restricted products to underage shoppers is unacceptable. We had a detailed discussion regarding some things JTI suggested adding to the store and enhancing some things. We have a checklist for fridge temperatures and new ID posters, and have moved some products away from age-restricted products.

Do you have signage around the shop about the sale of age-restricted products? Do you keep high-value products in secure locations that are highly visible? Do you have a relationship with your local councillors, MPs, PCSOs etc.? Do you only stock certified and/or food safety approved products?

IAA ADVICE Reduce the risk of underage sales

Display age-restricted products responsibly

Give staff the tools they need to comply with legislation

Tagtar has some signage reminding customers they will be ID’d, but this is not clear across all his age-restricted products. How can he help to deter underage shoppers from trying to buy restricted products?

Managing space is difficult for retailers, with so many different product categories to juggle. Tagtar’s counter has vaping products alongside sweets. How can he better zone his age-restricted products?

Carrying out regular temperature checks for your fridges can help you cut costs and keep products fresh. What can Tagtar and his staff do to ensure his fridge temperatures are regularly checked?

Louise says: “JTI supports campaigns to prevent those under 18 buying agerestricted products, including ‘IDentify’ – JTI’s youth access prevention scheme. We’ve given Tagtar brighter, more apparent signage than he previously had. Anywhere you have age-restricted products, it’s important age-restricted signs are visible.”

Louise says: “There are lots of challenges for retailers in terms of space. We noticed Tagtar’s placed vape products on his countertop close to sweets. It’s about trying to have responsible placement of his age-restricted products as well to support his ID signs. He’s really receptive of these suggestions.”

Louise says: “Tagtar has a sign that says which fridge should be at what temperature, but he doesn’t have an ongoing checklist, so it’s something we’ve agreed that he’s going to implement. We’ve also discussed linking the completed checklist to a bonus or prize draw, which can help incentivise his staff and embed these behaviours.”

ACTION Put ‘No ID, no sale’ signage in visible locations to deter attempts at underage sales.

ACTION Make clear distinctions in product zoning to avoid age-restricted products being close to other items.

ACTION Implement daily temperature checks with incentives to ensure adherence to food safety standards.

Are you part of a local neighbourhood watch scheme or similar?

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

SET A LEADING EXAMPLE Visit betterRetailing.com/IAA to ensure you’re protecting your staff and shoppers, and see how you can improve in nine other categories

Next time: Customer Service

LETTERS

Alan Mannings

Letters may be edited

Shop on the Green, Chartham, Canterbury

Making more from shoppers and spending less WE are looking for ways to bring in more customers to spend money with us, while at the same time reduce our own outgoings. We’re part of Londis and we’re about to start stocking more fresh meat to see how it goes. It’s another way for people to spend money with us. We’re right on people’s doorsteps, so we’re going to try. We’ll One of two leading retailers be looking at a local shares advice on how to make butcher that I know, your store rise to the top and I will also see if we can start bringing in some game meat again as well. We tried selling that once before and it wasn’t successful, but I believe it was because it wasn’t displayed properly and I didn’t have the customers to buy it. But now, I’ve been here for three or four years, and my customer demographics have changed. So, we’re going to try it again. It’s about bringing something different to the table. I understand that, at the moment, with shortages, the margins are going to be less and the price for the customer may well be higher, but we have to try. No one likes to travel much during the winter, so the more we can provide as a local shop, the easier it is for people to finish work, come to us, get what they need and then get home and shut the door. If we can offer some quality meat and a nice bottle of wine right on your doorstep, then you’re going to come to us. It might only be once a week, but it boosts sales. As well as boosting sales, we’ve just had a new chiller fitted, which will help reduce our costs and free up a huge amount of space. Finding ways to cut costs – particularly energy bills – makes a huge difference. You don’t realise how much things can add up over the course of a month. If you’re not using a light, don’t leave it on. I want to look into automated, motion sensor lights that switch off when you leave the room. Why leave your alcohol chiller on overnight? Turn it on in the morning and by the time you can serve alcohol it will be cold again. Keep maintaining your equipment, the chillers are good and if you look after them, they’ll last longer than they should. Good maintenance is key. You service your car regularly, so why not your chillers?

RISING

‘Business rates reductions: beware of the scammers’ NOBODY likes to pay taxes, but whatever the politicians may say, business rates are here to stay, certainly for the next �ive years, and probably for the lifetime of your business. Prior to the April 2017 revaluation, there was uproar and lots of scare-stories of massive potential increases in business rates. For 90% of smaller retailers, the increase never occurred, and in many cases, businesses found themselves no longer paying rates, much to their surprise and relief.

Now, a new revaluation is on the horizon. April 2023 will see an updated Valuation Of�ice Agency ‘valuation list’, with values based on market rents as at April 2021. For many retailers, particularly single-property operators, the system that exists will continue to ensure no rates are payable, and even for those with rateable values up to £18,000, or even £20,000, there is every likelihood that the new valuation list will see Rates Relief Schemes launched simultaneously to mitigate any

potential rates increases. It’s important businesses are aware of this because there are scammers and fraudsters that have already started to surface in anticipation of �inding ‘desperate’ retailers looking to save money in the current, very dif�icult trading conditions. When it comes to any agreement with a rates agency, don’t sign anything without seeking a second or even a third opinion. There is no hurry to appeal any new assessment. In fact, it’s not possible to do so until

after 1 April 2023. Sadly, some retailers are still paying out as a result of agreements they signed �ive or six years ago, prior to the 2017 revaluation. The Valuation Of�ice published a useful short video illustration the principle behind retail valuations back in 2016 and it will be helpful to many readers. Type in this link online: youtube.com/ watch?v=xyvM0HfVHrY Ian B Sloan, Bankier Sloan Chartered Surveyors, Banbury, Oxfordshire

COMMUNITY RETAILER

OF THE WEEK

WIN £50-worth of Kettle Chips

TO celebrate the launch of Kettle Chips’ new TV campaign, ‘There’s more to Kettle than you think’, Retail Express has teamed up with the brand to give five lucky readers a chance to win a £50-bundle, featuring bestsellers Steakhouse BBQ to Sweet Chilli & Sour Cream. The range is designed to help retailers inspire shoppers in the crisps and snacks category in the run-up to Christmas and beyond.

TO ENTER Fill in your details at:

betterRetailing.com/competitions This competition closes on 30 November. Editor’s decision is final.

Julie Kaur Duhra, Jules Convenience Store, Telford, Shropshire

‘I won a community retailing award’

STAR

Winner Julie, with her husband, Joey

LAST week I was awarded the Raj Aggarwal Trophy for community retailing. Supporting my local community was really important during the past 18 months. Being a retailer is hard enough during normal circumstances and Covid-19 certainly made it more challenging. My store is based in a neighbourhood with families and the elderly, who we supported with daily free deliveries. We made 10 deliveries each day for free. One customer was eight miles away, but we had no issue going this far to help them. She was really grateful and often stopped to chat with us. My husband, children and daughter-in-law really provided a lot of support as well during this time.

Get in touch

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

betterRetailing.com

PAID FEATURE DRIVE SEASONAL SALES

2-15 NOVEMBER 2021 betterRetailing.com

In partnership with

CAPITALISE ON CHRISTMAS ALCOHOL PERNOD RICARD UK has identified a £2,792 festive opportunity for each convenience store by stocking a broad range of premium spirits and wines in the final weeks leading up to Christmas Day. RETAIL EXPRESS finds out more

WHAT’S THE OPPORTUNITY? RETAILERS could profit from an additional £2,7921 per store in the final weeks leading up to Christmas Day by making sure they include a wide range of premium spirits, such as Jameson Irish Whiskey, and wines, such as Campo Viejo Tempranillo. Pernod Ricard UK (PRUK) says convenience stores are vital to catering for two missions in the alcohol category, which is for those grabbing a bottle on the way to a social gathering and those buying

WHAT’S TRENDING? ON-TRADE closures in 2020, due to Covid-19 restrictions, meant there was an increase in online shopping and a broader demographic of people shopping locally due to a rise in shoppers working from home. Chris Shead, off-trade channel director at PRUK, says: “Spirit premiumisation has also increased, with the category value growing more than twice as fast as total spirits (27% vs 11%) as shoppers treat themselves to affordable luxuries at home and when meeting up with friends and family4. “Retailers must be able to cater for a wider variety of tastes and occasions than in the past with more premium options that will make visibly generous and special party contributions.” Flavours is also a trend to cater for during the festive season, with the likes of Jameson Orange, which combines the brand’s Irish Whiskey and natural orange flavouring, and Absolut, available in Passionfruit, Raspberri, Vanilia and Watermelon, proving a strong choice for consumers. In fact, PRUK launched Absolut Watermelon to help retailers tap into the increased demand for watermelon-flavoured alcoholic drinks, which has grown 63%5.

to host family and friends at home. A recent study commissioned by PRUK found convenience stores were important to shoppers when picking up spirits on the way to a house party or gathering2, with 87% of shoppers buying them to consume at their destination3. The study also found that 31% of these missions were spontaneous, which is high versus 21% for total mission2.

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Chris Shead, Off-trade channel director, Pernod Ricard UK “THE off-trade is likely to retain an inflated share of the total BWS market this year. It’s important not only to stock the familiar core lines of premium spirits and wines shoppers expect to see, but also new lines from those trusted brands. This year, more than ever, it’s about breadth of range. Consumers upskilled during lockdown, tried more cocktails at home, experimented with new flavours and treated themselves to new products or flavours from their favourite brands. Last-minute purchases are crucial to getting it right this Christmas. Grabbing a bottle on the way to either hosting or being hosted has grown in importance as people celebrate shared moments, so having an enticing range is vital.”

What to Stock

Jameson Jameson Irish Whiskey is growing by 23.3% in total impulse6, providing a top opportunity to drive festive sales, while Jameson Orange is new to the market. Havana Club Havana Club 7 is driving growth for the brand by 187% in total impulse7, thanks to its focus on the convenience channel and Skepta partnership. Cuban Spiced is the brand’s first spiced product, made with 100% Cuban rum. Absolut Flavoured vodka growth is set to continue into Christmas as the versatile spirit and its flavoured range is perfect for at-home cocktail making. Beefeater London Dry Gin PRUK unveiled a premium new bottle design across the Beefeater range earlier this year. Top flavours include Pink Strawberry and Blood Orange. Malfy con Arancia and Malfy gin Rosa The two bestselling flavours from Malfy within the impulse channel, flying off the shelves in total off-trade, growing 139%8. Campo Viejo Campo Viejo Tempranillo was the numberone-selling red wine over £8 last Christmas, while Campo Viejo Reserva is expected to continue to grow as shoppers turn to trusted brands. Campo Viejo Winemakers’ Blend is the brand’s newest wine. Jacob’s Creek Reserves Jacob’s Creek Reserves recently underwent a brand refresh with a range of four classic varieties, including Sauvignon Blanc, Chardonnay, Shiraz and Cabernet Sauvignon. Rutas de Cafayate Malbec Brand new to the impulse channel this year, Rutas de Cafayate Malbec is set to capitalise on the popularity of Argentinian wine as the fastest-growing country of origin.

Amount would require full ‘Pernod Ricard UK’s What To Stock Christmas List’ to be in stock for full 12-week period and is based on RoS in the Impulse channel for the same 12-week period vs. 2020, 2PRUK Omnichannel Research Project with boobook and White Caviar May 2021, 6,000 participants, 3PRUK 2019 Christmas Shopper Research with the source, 1,970 participants, 4Nielsen Total Impulse Value Sales 52 w/e 19.06.21, 5GNPD Mintel Q1 2019, 6AC Nielsen, Total Impulse Value Sales, Period Ending w/e 19.06.21, 7Nielsen Total Impulse Value Sales to Sub-sector level – 52 w/e 19.06.21 vs. YA, 8AC Nielsen Premium+ Gin, Total Coverage, Period Ending w/e 19.06.21

CATEGORY ADVICE SAVOURY SNACKS

SALES TO SAVOUR JASPER HART looks at the key talking points surrounding savoury snacking, from pack format preferences to the impact of HFSS legislation

SUPPLIER

PRICE-MARKED FOR SUCCESS AS England approaches four months since it last experienced any nationwide Covid-19 restrictions, the key question for those with a vested interest in the world of savoury snacking is whether or not smaller formats are mounting a comeback, having suffered in the event of lockdowns and working from home at the expense of larger formats. “A number of consumers are taking advantage of their newfound freedom, which will result in a resurgence for on-the-go formats,” says Scott Snell, vice president of customer at Pladis UK&I. “Whether people are commuting to work or meeting with friends, they’ll be grabbing their favourite snacks to fuel their journeys. We’d advise retailers to stock up on grab bags, as these will be key to driving impulse sales.”

However, according to Guy Harvey, impulse category controller at PepsiCo, the pandemic’s influence on the decline of single snack packs has merely expedited an existing trend that has seen shoppers shun singles and look for perceived value in price-marked packs (PMPs). He says: “Singles declined 17.7% last year, and this year to date they’ve declined a further 13.7%. That’s off the back of a longer trend away from single packs in convenience.” Harvey adds: “The main beneficiary of that has been PMPs. In 2020, with the total category experiencing 5.4% growth, PMPs grew by 16.3%, and were the number-one contributor in cash to the channel. “While the channel is declining by about 1.4% overall this year to date in conveni-

ence, PMPs are still in growth of 4.3%.” It is clear that a foundation-

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al pillar of the savoury snacking range is balancing these larger and smaller formats.

In partnership with PepsiCo

Guy Harvey, impulse category management controller, PepsiCo “THE past 18 months for crisps, snacks and nuts have been pretty dynamic, but performance continues to be robust. Adaptability is key. We’ve seen huge changes in the pack type sales over the past 18 months. Food-to-go missions have been highly suppressed, which has affected singles, and PMPs have really benefitted, but this environment is changing and is dynamic. “Single-pack sales have been down circa 13% on a yearto-date basis, but are down 4% in the past four weeks, so adapting a range to suit the key missions and how they are evolving is going to be important. “We would expect performance to build back as more people move around the UK, so adapting the range to a limited selection of bestsellers is going to be important while catering to other segments, such as PMPs. “Be prepared to suit the missions that shoppers are coming to your stores for and adapt your ranging to suit those missions. My advice to retailers is to stock a limited range of bestsellers in singles, catering to food to go, focusing on potato-based crisps, which tend to perform better in food to go.”

ACADEMY IN ACTION

2-15 NOVEMBER 2021 betterretailing.com

We’re here to help. Call 020 7689 0500 Name: Shop: Location: Size: Staff:

Gita Patel Limehurst Minimarket & Off License Manchester 1,200sq ft Two full-time, two part-time

PARTNER ADVICE

EFFECTIVE RANGING The IAA and COCA-COLA EUROPACIFIC PARTNERS visit GITA PATEL’s Greater Manchester store to help her improve her ranging RETAILERS who effectively range their products use their space as efficiently as possible to maximise sales. They know how to give their bestsellers prominence, while ensuring new products also stand out. They establish a core range of products, usually with a ‘good, better, best’ ranging policy, which gives them the breathing space to try new lines. With her store’s post office currently closed, Gita is looking to develop the shop to help it stand on its own. She wants to better understand how her ranging and product placement are holding sales back, and what steps she can take to improve. How can the IAA and Heidi Vossen-Barnes from Coca-Cola Europacific Partners (CCEP) help develop her range?

Want to know more? To see more of Gita’s shop, and find out how you can improve your store, go to betterRetailing.com/Academy-in-Action

The sooner Gita can get an understanding of the relationship of space to sales in store, the quicker she will be able to make effective ranging decisions. Heidi Vossen-Barnes Senior Manager Independent Convenience CCEP

YOUR ACTION PLAN 1 Walk your store as a customer

Use the benchmarks below as a checklist to see what you’re doing well

2 Benchmark your shop

WHY I TAKE PART I’m happy that the IAA and Heidi from CCEP came here to help me out. The visit was very interesting, and they have given me some brilliant ideas. We have some ranges with too many products that we can cut down to make space for bestsellers, which should bring in more customers. We’re looking forward to implementing the plans to see what changes we can achieve.

IAA ADVICE Ensuring a strong core range and reviewing it regularly

Analysing sales data and deciding when to delist

Identifying new and niche products to stock

Some of Gita’s categories, such as squash, pet food and magazines, are overrepresented, with too many slow-selling brands. How can she ensure she is stocking her shelves more efficiently to avoid missing sales?

Gita’s till system doesn’t break down sales of individual product lines, so is unsure of her bestsellers. How can she get a better understanding of what is and isn’t selling to identify weak points?

Gita gets in new products and trials them for six weeks. However, she has had mixed success. How can Gita give them a better chance of long-term success and ensure customers know to come to her store for them?

Heidi says: “Without EPoS data, it’s difficult to see what is doing well. If you have products that are sitting on your shelf for a long time, that’s a sign to delist. If you’ve got similar options available, it’s unlikely customers will mind, and it’ll give you space to add in new products that may sell faster.”

Heidi says: “By noting down what you’re stocking up more frequently, you’ll get a feel for what’s doing well and what isn’t. Once you know this, you can work out what needs to go. Try placing green stickers by bestsellers and red by what you’re planning to delist to ensure you don’t reorder.”

Heidi says: “It’s great to be on top of new products, but you’ve got to promote them to ensure their success. Because of the way products are merchandised, customers miss things when they’re new. Make sure when you’ve got new products in you really shout them out to bring that excitement.”

ACTION Rationalise ranges to have three options – good, better and best – removing any additional lines.

ACTION Record which soft drinks lines are being restocked to understand best and slow sellers.

ACTION Help new products to be successful by promoting them on gondola ends and on social media.

Head to betterRetailing.com/benchmark to use our online tool and see how you can improve

Do you have a list of everything in your core range? Do you use sales data to understand your best and worst sellers? Do you use sales data to understand your best and worst sellers? Do you have a comments box or similar for shoppers to suggest new products? Do you encourage your team to highlight key items to shoppers to ensure their success?

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

SATISFY YOUR TARGET SHOPPERS Visit betterRetailing.com/IAA to better serve your costumers and see how you can improve in nine other categories

Next time: Staff Development

CATEGORY ADVICE SAVOURY SNACKS

RETAILER

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new products

Kesser Mahmood, Da Shop, Stockport

Mini Cheddars Crunchlets Pladis has expanded its Mini Cheddars brand with the launch of cheese snack Crunchlets. Available in Rich & Tangy Cheddar and Cheddar & Caramelised Onion flavours, the baked snack is available in a multipack of six 115g bags with a £1.15 RRP, and a £1 PMP.

“SAVOURY snacking performs really well for us. You have core flavours that have been out for years, but a lot of the emphasis is on now healthier snacking. Popchips have come on the market and Penn State Pretzels are performing quite well. Premium brands, such as Tyrrells and Kettle Chips, are also strong. “The majority of our crisps are PMPs because people like seeing the price immediately. I also do well on pub snacks such as pork scratchings because you can’t get them in a lot of places, so that has helped because people see us as a destination if they want them. “We sell loads of dips alongside crisps. I’ve got Doritos dips and hummus, taramasalata, red pepper, guacamole, and tzatziki, and they do really well.”

Festive packaging Premium crisp brands Tyrrells and Kettle Chips are getting festive packaging across selected lines, with suppliers KP Snacks and Valeo hoping to drive sales through the return of sharing occasions this Christmas. Walkers and Ghostbusters PepsiCo has partnered with the upcoming film Ghostbusters: Afterlife, with an on-pack promotion available until 30 November, running across all flavours of Wotsits, Quavers, Monster Munch, French Fries and Squares. It excludes Quavers Prawn Cocktail and Salt & Vinegar. Shoppers have the chance to win a range of prizes every hour, including film tickets, Sony technology and a trip to New York.

AVAILABILITY OVER ALL IT’S especially crucial that retailers stock the right range of snacks, given that the category is not only evergreen, but hugely popular. “Crisps, snacks and nuts is a fast-growing, priority category with huge scale, worth £3.5bn and growing 4.1% year on year,” says Matt Collins, trading director at KP Snacks. “Shoppers are spending an extra £100 in the category, up by 14% year on year. “With 67% more people choosing convenience for ‘main shops’, and one in five baskets containing a bagged snack, it represents an important opportunity for retailers to grow sales and footfall.” Retailer Asif Shamim, of

Welcome Stores Go Local Extra in Middlesbrough, says his sales are fuelled by PMPs now. “Things have changed a lot. Smaller bags are on a massive decline – people do get them, but now they’re 65p and people can get a bigger bag for £1, whereas schoolkids are better served by multipacks.” Unfortunately, such an indemand category has been hit with availability issues like many others in recent weeks, meaning that retailers are having to make sure they can simply fill their shelves before beginning to focus on key brands. “I’m having massive issues with Walkers stock at the moment. I think the only lines

not affected are Cheese & Onion and Ready Salted,” says Shamim. “There’s no Doritos, either – I haven’t seen them in a month. “I try to fill my shelves, do double facings and sell crisps I wouldn’t normally have sold. Jacob’s Cracker Crisps have done well over the past three years, but now do better than they ever used to do, so there’s one that’s doing well that not many stores would have had before.” Try to turn any availability issues into an opportunity to switch up your ranging, as consumers may be drawn to a display offering a change from the dominant sellers.

2-15 NOVEMBER 2021 betterRetailing.com

HEALTH IS WEALTH THERE is a spectre hanging over the category in the form of the government’s restrictions on products high in fat, sugar and salt (HFSS). One way for affected retailers to get ahead of these incoming restrictions is to invest in healthier formats, with accompanied messaging to customers. “The government’s proposed ban on promotion of HFSS products provides retailers with a major issue given that there are very few nonHFSS products currently available in the snacks market,” says Jon Wood, commercial director at Calbee.

“We predict this will inevitably lead to an overhaul of ranging and pricing within the category to ensure there are products on fixture that meet the new guidelines and will be allowed in feature space. Traditional snacks will be required to optimise sales from within the aisle. Products that can achieve this will be the market winners after the proposed 2022 changes.” Pia Villa, chief brand officer at Graze, adds: “Additional benefits are what shoppers are looking out for when topup shopping or snacking on the go. In fact, 44% of adults see snacks as a good way to

boost their nutritional intake, while 53% of consumers are actively trying to eat snacks that are more healthy.” Graze intends to capitalise on this audience with low-calorie products that still appeal to shoppers used to category mainstays. “Flavour is a key decision-maker when selecting crisps. As we try to entice people away from the crisps category, we have made sure we deliver on the traditional flavours they know and love, which is why our Crunch range comes with the familiar tastes of Salt & Vinegar, Lightly Sea Salted, Smoky Barbecue and Sweet Chilli,” says Villa.

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Scott Snell, vice president of customer, Pladis UK&I “PMPS continue to drive growth in convenience, so offering a range of popular savoury snacks in this format is crucial. Despite the fact that only 12% of products in convenience stores are PMPs, they represent three-quarters of sales in the channel. This is because shoppers perceive PMPs to represent good value for money and – with financial concerns present in many households – this is even more important, as consumers are savvier than ever before. “In fact, 91% of shoppers are actively looking to save on groceries, meaning PMPs will remain a key driver of impulse purchases for independent retailers. Offering a variety of popular products in PMP format will certainly help independent retailers drive impulse sales. Many shoppers associate PMPs with promotions – and promotions are the driving force behind purchases for more than two-fifths (43%) of impulse shoppers. “Couple this with the fact that the crisps and snacks category is one of the top categories for impulse purchasing, and it’s clear there is an opportunity to encourage shoppers to spend more in store by stocking savoury snacks in PMPs. “Larger pack formats continue to play an important role in attracting big-night-in shoppers. In fact, in 2020, larger packs accounted for huge volume growth – with sharing packs and multipacks driving 17.8% and 11.7% growth, respectively.”

CATEGORY ADVICE SAVOURY SNACKS

DO YOUR HOMEWORK PEPSICO’S Guy Harvey says it’s important to be clued up around the upcoming legislation so no opportunities are missed. “The legislation itself is quite hard to understand and is not black and white, so it will be a real role for us as a supplier to help retailers understand what is and isn’t compliant,” he adds. “There are many facets to HFSS, so we will be spending a significant amount of time helping retailers understand

it next year.” Being familiar with healthier snacking trends can set retailers in good stead should they need to adapt their ranges. For example, according to Melanie Tucker, head of outof-home at Graze, four of the top 10 healthy snacking lines are PMPs, delivering 70% of the top 10 lines’ volume. The HFSS legislation also presents an opportunity for stores under 2,000sq ft, which won’t be affected, and can continue

to place HFSS products by their entrances and tills, and on gondola ends. Retailers should be aware of their competition, and prepared to advertise on social media to cater for potential new shoppers. “The legislation coming through means that multipack formats will gain relevance, with potentially more volume coming through convenience stores as shoppers look to do more top-up and stock-up shopping,” says Harvey.

2-15 NOVEMBER 2021 betterRetailing.com

top tips

Top tips from Matt Collins, trading director at KP Snacks Must-stock ranging Stock a strong core that covers the top-selling lines which will deliver category growth – 41% of sales go through the top five brands. Excite and engage shoppers with a sprinkling of new products. Understand your shoppers’ missions and cater to them Capitalise on the growth of PMPs and be ready for a resurgence in food-to-go occasions. Make your fixture easy to shop Blocking similar type products together, such as ridged crisps, will make it easier for your shoppers to find what they need. Sixty-eight per cent of bagged snacks are bought by shoppers on impulse. Drive impulsive purchases in store Sixty-one per cent of impulse crisps and snacks are picked up in secondary locations. Use displays and secondary sitings to drive snacking sales and locate in complementary categories, for example soft drinks or sandwiches. Make use of branded display and PoS, such as stackers and dump bins, to drive basket spend.

82% of consumers are unable to name a retailer doing a good job of reducing plastic waste*

To ﬁnd out more, please call Michael Sharp on 020 7689 3363

*Kantar

Newtrade Media is passionate about helping independent retailers to become more sustainable.

CATEGORY ADVICE PRICE-MARKED PACKS

PRICE-MARKED POSSIBILITIES Price-marked packs bring assurances to customers and sales to stores. CHARLES WHITTING finds out where and how retailers can make the most out of them

WHAT PRICE-MARKED PACKS BRING THE demand for price-marked packs (PMPs) is strong, particularly in certain categories. With purse strings tightening as uncertainty grows this winter, having a range of products that customers feel they can trust the price of can be an important tool for retailers looking to beat the competition. With many stores looking to shake off the tag of being more expensive than multiples, PMPs can provide that certainty. According to Lumina Intelligence, around 47% of current convenience baskets include PMPs, with 82% of people actively looking for them as part

of their weekly shop. ‘‘Value-for-money confectionery continues to be a hugely popular choice for shoppers, particularly as financial circumstances have changed over the course of the pandemic,” says Mark Walker, sales director at Swizzels. “According to recent research, one in five shoppers are more likely to shop in a particular convenience store if they know it stocks PMPs, and PMPs sell five times more than non-price-marked equivalents, so it’s important for retailers to stock a range of value products from popular brands to boost sales.”

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Jacqui Dales, London Road Bakery (Spar), Boston, Lincolnshire “SINCE the start of lockdown, our customers have been looking for value for money when coming in store. In the past year, we’ve moved a lot more into the £1 PMP space. “For a customer who wants a good value-for-money purchase, it’s a real no-brainer that they pick a grab bag at this price. “We’re constantly evolving our range of products in order to adapt to shopper demands, and we felt like we were missing a trick by not stocking enough £1 PMPs. “We never realised just how many strong lines were included as part of Walkers Hero 25, so since May this year, we’ve substituted a number of £1 PMPs into the bay in place of a few lines of singles.”

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top tips from KP Snacks Stock consumer favourites The role of category leaders and large brands will become more important as shoppers turn to brands they trust, recognise and recall. Brands help retailers drive sales and retain shopper loyalty – 41% of crisps, snacks and nuts (CSN) sales go through the top ﬁve brands. Ensure great value is also great taste Taste is the number-one CSN category driver, meaning PMPs should deliver on delicious ﬂavours, as well as excellent value. Excite and interest consumers Retailers should engage shoppers by stocking new lines and classic favourites in PMP formats, capitalising on consumer trust and excitement. This shopper intrigue will see retailers drive greater sales.

THE PROS OF PMPS FOR some retailers, PMPs are an essential part of their store’s offer. Kim Patel, from Ardingly News Stores in Ardingly, West Sussex, tries to stock PMPs wherever possible. “I love PMPs,” he says. “It builds confidence with my customers. Anything I have in store, if it’s price-marked, then it sells. People pick them up more confidently when they’re pricemarked and I’ve seen a growing demand for it. Where my shop is located, I find it’s branded products that are more popular. If it’s branded and price-marked,

people will buy it.” Having consistency in your pricing can also provide reassurance that results in repeat custom from shoppers, as they are more likely to go back to places where they know what the prices will be, rather than worrying about potential increases should a sale come to an end. This is particularly relevant now as consumer confidence is fragile. “It is always important to convey value to the customer, but you also want to build reliability and ensure the customer

can depend on you within their budget. By offering one-off deals and the odd price reduction, retailers risk introducing new products to customers that, without a promotion, they will choose not to buy,” says a spokesperson for Boost. “By offering PMPs, it allows you to build up reliable value where you can become a staple in the customer’s shopping basket. The customers know they are paying what is deemed a good price, and it builds trust, which is an integral part of the shopping experience.”

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Guy Harvey Impulse category management controller, PepsiCo “IN partnership with KAM Media, we conducted research to find out the challenges retailers face in store. More than a quarter (28%) of retailers cited lack of space as the biggest challenge faced when it comes to crisps and snacks1. With 62% of consumers saying they’re now more careful with their cash2, it’s important retailers adapt their ranges based on the demand from shoppers for value. Our Walkers Hero 25 line-up gives greater focus to RRP PMP and sharing products, intended to offer retailers formats that are in demand with their shoppers.”

PepsiCo Bespoke Research commissioned in partnership with KAM Media | June 2021, Lumina Intelligence Channel Pulse Survey 2020

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CATEGORY ADVICE PRICE-MARKED PACKS

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THE CONS OF PMPS HOWEVER, it is important for retailers to make sure they understand the risk to their margins when it comes to PMPs. Ferhan Ashiq, from Day-Today Ashiqs in Prestonpans, East Lothian, who is also Scottish president of the NFRN, feels that currently the margin on PMPs isn’t enough to justify stocking them. “In theory, they’re great because they help to make con-

sumers feel confident about the price they’re paying,” he says. “But if I can’t get margins of 25% on crisps, 30% on confectionery, 25% on alcohol and 35% on soft drinks, then I’m going to struggle to survive. I’m actively taking PMPs out of my store. “I can’t, at the current margins and prices, support PMPs, with the current cost climate and with increased

wages, increased delivery and electric costs. “Our margins must reflect our costs, otherwise we will go under. Sales are still good but they’re not much use if you’re making a loss on them. Wholesale costs are rising but suppliers don’t take that into account. The formula that suppliers use to decide PMPs is not currently fit for purpose.”

top trends Top trends in PMP preferences from Del Monte Sustainability As consumers become increasingly conscious of the impact of their eating habits, product choices and associated packaging, they are demanding tangible action from the brands they invest in. As such, it’s important for retailers to offer PMPs from brands that fulﬁl consumer desire to be more environmentally conscious.

CATEGORIES WHERE VALUE IS IMPORTANT IT would be possible to have every product in your store price-marked, but it is important to strike a balance, focusing on items that sell better when they are price-marked and avoiding PMPs where they won’t have the desired impact. Chilled foods can enjoy a strong improvement in sales if they are price-marked, for example. “Saputo Dairy UK advocates merchandising PMPs in the main chilled/dairy fixture as part of the core range and ensuring that they are in the relevant

category fixture, driving footfall to your PMP range,” says Allison Wallentin, category manager for convenience at Saputo Dairy UK. “Stock a core range of bestsellers, remembering that the top lines will contribute a disproportionately high percentage of category sales.” Pet food is another category where customers – unwilling to compromise on brands – will be looking for the best deal when shopping for essential products. “As most pet food purchases are highly planned, with shoppers

visiting fixtures on autopilot, by stocking premium PMP meals for pets, retailers can stand out from the competition,” says Simon Spear, customer director for discounters and convenience at Mars Petcare UK. Soft drinks are another category where PMPs enjoy significant popularity and are worth considering as a complementary addition to your range, particularly for impulse purchases. “Accounting for more than 60% of total soft drinks sales in independent and symbol con-

venience stores, PMPs offer visible value, which can help to reassure shoppers who are spending carefully, but who want to enjoy their favourite brands,” says Amy Burgess, senior trade communications manager at CocaCola Europacific Partners. “We expect larger packs to remain in high demand as people continue to make the most of the opportunity to socialise at home, and enjoy festive occasions such as Halloween, Bonfire Night and Christmas with friends and family.”

Quality PMPs offer clarity and transparency to shoppers who are seeking value products, but do not want to compromise on quality. It is therefore essential for retailers to stock leading brands. Health Consumers continue to seek out products that satisfy their varied health needs. Del Monte saw a strong uplift in Del Monte canned mandarins over the past year as shoppers prioritised products that could be incorporated as part of their ﬁve-a-day and also offered vitamin C. It’s imperative for retailers to ensure they continue to stock a variety of nutritious options to remain competitive and cater to a growing demand from consumers.

CATEGORY ADVICE PRICE-MARKED PACKS

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THE IMPULSE OPPORTUNITY OF PMPS AS well as being appealing to those keen to save money, PMPs can also be attractive to people looking to save time on their shop, providing quick and accessible information about how much something costs. For retailers, this customer preference can be of particular benefit in on-the-go categories. As people return to commuting and start travelling more often, having a strong range of snacks and soft drinks that are price-marked can help to boost basket spend. “With healthy snacking back in the spotlight and PMPs playing a big part in a customer’s purchasing decision,

there has never been a more important time to consider PMP formats in the healthier snacking category. Not only will shoppers be looking for healthier snacks, but they will also be looking for a good-value product, and PMPs demonstrate just that,” says Melanie Tucker, head of out-of-home at Graze. “We predict that impulse sales are only going to be on the up as more people are on the move again. For more impromptu buys, customers want products that clearly state the price on pack and to show that they are good value for money instantly.” This approach has brought

significant popularity within the crisps, snacks and nuts (CSN) category, with 40% of shoppers saying they are more likely to buy CSN in a PMP format. “Across the CSN market, £1 PMP ranges are growing in value at 6.8% ahead of overall market growth,” says Matt Collins, trading director at KP Snacks. “£1 PMP ranges are the main driver of growth in convenience and represent 70% of the sharing segment. “The PMP format is now the largest format within CSN across symbols and independents. Fifty-four percent of shoppers purchase items on impulse, and PMPs drive these

sales through clear messaging and displays.” The same is true of soft drinks, meaning that a strong PMP offer in multipacks will attract customers looking to save money, and a strong PMP offer on single bottles and cans will appeal to more timepoor customers. “PMPs are considered by many retailers as a promotional mechanism – therefore, stocking PMPs drives profit and adds growth to the overall soft drinks category, with one in five consumers driven to purchase a soft drink on impulse if it is on promotion,” says a spokesperson for Red Bull.

new PRODUCTS in PMPs Mars Wrigley is looking to continue to grow the gum category with the launch of its £2 RRP Extra sugar-free gum PMP 46-pellet bottle across its bestselling core flavours, Peppermint and Spearmint. The bottle is an exclusive format for the retail channel. “Gum bottles will be driving the growth in 2021 with 1.7% projected growth, so we recommend stocking it alongside core single packs for maximum sales success,” says Katie Walland, gum portfolio director at Mars Wrigley. Swizzels’ newest addition to its PMP range is the Drumstick Chocolate bar. This new concept for Swizzels sees milk chocolate filled with the unique and iconic flavour of the Drumstick Lolly – a raspberry & milk fondant centre, with real raspberry pieces. Mars Petcare has launched ‘Dream Sixteen’, a reinvigorated range of must-stock petcare products. The ‘Dream Sixteen’ includes three new PMPs, including lines from Pedigree, Sheba and Cesar, carrying PMPs of £3.75£4.75 to appeal to more than half of shoppers who say they like this format. In April, Boost expanded its energy flavours range with the introduction of Mango 250ml Energy. “We are the only mainstream brand to offer this on-trend Mango flavour in a 250ml size can, which is one of the fastestgrowing flavours in the energy drinks category, up 22% year on year in volume sales,” says a spokesperson for the brand.

FOCUS ON FASCIAS

Find your fascia FIVE FASCIA GROUPS look back at 2021 and make plans for 2022

FOCUS ON

FASCIAS

THE past two years have been different and challenging in almost unprecedented ways. For those retailers who have stores in partnership with fascias and symbol groups, having their support during these times will have made a considerable difference to their businesses and well-being. Symbol groups have helped retailers navigate the choppy waters of recent years in many different ways. They have provided a strong range of products that will attract customers. They have offered training and support for retail-

ers starting on their journey at a new site, as well as those who have been with them for a long time. The technological innovations and initiatives that symbols have brought to bear have allowed retailers to better control their stock and understand customer preferences. But there is always more they could be doing and want to be doing. In the following pages, �ive fascia groups – Parfetts, Costcutter, Nisa, One Stop and Spar – look back on the year that has passed, remembering the pledges they made and the plans they set out at the start

of 2021, and then assess how successful they have been at reaching them and realising their aims. Retail Express will also be talking to retailers who joined each fascia group recently to �ind out what their experience has been to work with the support of a symbol. And as we come to the end of this tumultuous year, with so much uncertainty around delivery, availability and more, each fascia group will also lay out their hopes and aspirations for 2022, as well as their fresh pledges for the new year and beyond.

PAID FEATURE IN ASSOCIATION WITH PARFETTS

FACTS

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Number of stores: more than 850

Cost of joining: free

The past year

Parfetts PARFETTS examines the pledges it made for 2021 and looks ahead to 2022

PARFETTS had a record year as more retailers turned to independent wholesalers to support them through the pandemic. The business expanded its geographical reach by expanding its delivered service into the Midlands and saw its online presence grow to more than 40% of all orders. Go Local now has more than 850 retailers in the fascia and launched an off-licencefocused fascia, The Local. Digital channels have boomed for Parfetts over the past year, and the popularity of the GOLD (Go Local

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Direct) service has also grown, and currently operates in five of its seven depots. It offers a 24-hour model where depots work as cash and carries from 6.30am to 6.30pm, and are then used by the delivery and click & collect teams to pick orders through the night. Go Local retailers enjoy everyday great value and an industry-leading programme of promotions.

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Looking ahead to 2022

In addition, significant investment in the digital offer now means you can order stock as easily as booking an Uber. Parfetts offers a 25-strong retailer development advisor team, which is always on hand to assist.

parfetts.co.uk

NEW OFF-LICENCE FOCUSED SYMBOL GROUP

Parfetts will continue to invest in digital channels to make it easier for retailers to order new products online. It has already launched a new app that enables retailers to order next-day delivery up to midday of the day before to help keep shelves stocked. The expansion in the Midlands will continue with a commitment to providing everyday great value and regular promotions from leading brands.

The Go Local, Go Local Extra and The Local fascias will continue to expand and evolve, with more support available for innovative formats. Parfetts has also increased the field team in line with the growth of the fascia estate to help retailers evolve and develop their stores. Parfetts puts the retailer at the heart of its business and takes a partnership approach respecting their independence as business owners.

“Switching from Bargain Booze to The Local and Parfetts has seen my margin increase by 8% overnight”

Retailer viewpoint Haydn Hicks The Local Store, Ulverston, Cumbria

Haydn Hicks :: The Local :: Ulverston

“I WAS flattered to be asked to be the first store owner to work with Parfetts on bringing its dedicated alcoholfocused stores to life. “Having been with Bargain Booze for 22 years, it was time for a change and a new challenge, where I felt I could bring out the benefits of independence that my customers will love. “The Local is a great con-

cept and has given me an immediate increase in margin of 8%. “I have my independence back and the flexibility to use my expertise to work with customers to give them what they want, responding to the latest tastes and trends popular in the drinks world. “I’m developing rela-

tionships with local craft brewers, which means I’m introducing the communities I serve to premium quality, locally produced beers and spirits. “A one-size-fits-all approach to retailing is not a model that Parfetts subscribes to, and this allows independence to flourish.”

Drinks Retailing Shortlisted Finalist Convenience Store of the Year

For more info contact John O’Neill, Customer Development Manager Tel: 07717 300148 Email: John.ONeill@parfetts.co.uk

PAID FEATURE IN ASSOCIATION WITH COSTCUTTER

Costcutter What COSTCUTTER did for its retailers in 2021 and what it plans to do in 2022

The past year THE acquisition of Costcutter has taken Bestway’s symbol, franchise and company store retail estate to more than 3,795 UK stores. With Costcutter now part of the Bestway family, it’s even better placed to champion and support independent retailers and benefit from the greater support offered by Bestway’s scale. Retailers can enjoy a first-rate offer and support package, with benefits of investment and high margin opportunity for them to build their businesses. Retailers can also enjoy rebate rewards on qualifying purchases in line with their current rebate struc-

ture, as well as being able to tap into Bestway’s promotions. Supporting independent retailers to retain shoppers converted to Costcutter stores has been a key focus throughout 2021. Costcutter’s Shopper First business growth programme is at the heart of that effort. Costcutter also supports its retail partners by ensuring every retailer in the group has access to the 65 depots in the Bestway and Batleys Cash & Carry network, which ensures retailers can top up and ensure consistency of service and keep their shelves stocked during the current market conditions.

FACTS

Store size: 700-7,000sq ft

across Bestway Retail in the UK

Number of members: 1,550 within CSG, 3,795 stores

Cost of joining: no cost

The coming year

Costcutter joined Best-one in Bestway’s estate when it was acquired earlier this year

NOW part of the Bestway family, new retailers have a compelling choice as to the symbol or retail proposition that best meets their needs, skills and aspirations. Costcutter will continue to invest in its retailers through individual development plans to accelerate retailer growth – plans that have been proved to drive sales. This comes alongside an increasing focus by the marketing teams in driving consumer awareness and brand recognition to deliver trust and confidence in Costcutter’s core brands. Bestway Retail has cen-

tres of specialism with teams that have deep understanding in how to support the different business models, from operations to sales and marketing. In 2022, the company is opening the Bestway Retail Development Programme to all its customers, offering advanced support and insights to help them grow their business. Costcutter will also be inviting retailers to come

to talk to them about their future, and to discuss how joining the fascia group can make a difference to their business.

Retailer viewpoint Muhammad Khalid Middleton Park Service Station, Leeds

Whatever your store. Whatever your shopper. Bestway Retail now has the right offer for you. Join Us – 01904 232 505

“THIS redevelopment was a big £1m investment for us, and we were looking for a strong partner to support us and help us make more possible. While we spoke to most of the symbol groups, it was Costcutter that stood out. The service station has now been redeveloped, opening at the end of April 2021, inclusive of a fully equipped Costcutter store. “The fact that Costcutter is now part of the Bestway

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group is a major benefit for us. I’ve had good experiences dealing with Bestway and its cash and carry, and it works a lot better for us now. “We get fantastic support from both Costcutter and Bestway – it’s a win-win and it’s made life a lot easier. For example, when we started, the Costcutter team worked with us and did our merchandising – we ben-

01904 232 505

efitted massively from their experience. “The store is now a reflection of a modern supermarket and while it’s still early days, we are seeing store sales continue to grow, and the support we get from Costcutter and Bestway is second to none.”

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PAID FEATURE IN ASSOCIATION WITH NISA

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FACTS

Number of stores: c. 1,000

Cost of joining: £860+VAT

The year ahead THE Co-op own brand range continues to be key, offering a good value, quality product to shoppers. Nisa’s promotional alignment with Co-op will continue to give partners access to more than 2,400 Co-op ownbrand lines, with promotions including £5 frozen deals, Super Saver deals and more. Nisa is using the latest research to identify the trends that will drive future sales and set its partners up for success. Nisa’s aim is to provide fresh thinking for ambitious entrepreneurs to ensure

Nisa How NISA met the pledges it made at the start of the year, and how it plans to support retailers in 2022

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they can create the best customer offer for their unique demo. Thought leadership and instore solutions will improve customer experience through category insights, store-format innovation and expert account management teams. Following the introduction of a new trials manager, Nisa partners can be among the first in the sector to trial and introduce successful and innovative

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solutions to help grow their businesses. Nisa’s Making a Difference Locally charity has seen a significant increase in community support from retailers, with more than £1m donated to charity across the UK over the past year, and this is expected to continue in the year ahead.

nisalocally.co.uk/retailers/ contact-us-and-join-nisa

The past year A RECORD number of retailers moved to Nisa Retail last year, with those investing in new and upgraded stores enjoying average sales uplifts of 11%. As part of the Co-op Group, Nisa is better able to make greater investment in price and promotions, and improving its offer to retailers. Nisa’s latest store format, Nisa Express, was unveiled in 2020, providing a dedicat-

ed fascia option and store format for forecourt and smaller convenience sites up to 1,000sq ft, of three format options – essentials, forecourt and food-centric. Nisa’s new rebate model, Fresh Rewards, launched earlier this year and, built on simplicity and fairness, gives independent retailers the opportunity to unlock up to 5.5% in rebates with additional benefits available.

Last year saw the formation of a dedicated induction team to support new partners during their first 90 days with Nisa, ensuring a smooth transition process. Despite the challenges brought about by Covid-19, Nisa continued to provide engagement opportunities for retailers, hosting a virtual Nisa Live event along with a virtual Nisa Expo.

Retailer viewpoint Bari Aslam Fishpool News, Bury, Lancashire “MY store was not growing, so after considering different groups, Nisa was recommended to me. Since our very first conversation, I haven’t looked back. The Nisa support network is amazing. You don’t just get one person, you get the whole team. We shut the store to do a full refit, added in extra chillers and shelving, and gave our customers a whole new range to choose

from. They love the choice I am now able to offer them. “The promotions and offers through Nisa are great for driving footfall – the £5 freezer deal is very popular – and the leaflets we get work with new shoppers coming in all the time. I should have done this years ago, but I didn’t think my store was big enough and I

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Fresh thinkers wanted Find out more about becoming a Nisa partner at

was concerned I wouldn’t hit the sales, but the area needed this store and the range. “I love the freedom I have with Nisa to stock what I want in store and the flexibility to run my store my own way, but with all the resources and support available from Nisa.”

nisalocally.co.uk/retailers or call 0800 542 7490

Nisa’s fresh thinking has helped Tom double the turnover of his store. Here’s how we could help you drive basket spend and add value to your business: • Access to the Co-op own-brand range • A best in fresh range • The latest retail insight and expertise • Innovative store design You can also earn up to 5.5% rebate as part of our Fresh Rewards scheme.

PAID FEATURE IN ASSOCIATION WITH ONE STOP

One Stop ONE STOP looks back at its achievements this year and its plans for 2022 The past year One Stop recently invested millions of pounds to improve efficiencies in store and save colleagues time with a brand-new EPoS system provided at no extra cost. This is to control all front-end operations, including cashing and reporting.

FACTS

One Stop has also introduced WiFi into stores to ensure that the EPoS system can be used under the best conditions. One Stop has developed its supply chain and moved to a six-day short-life fresh delivery model to allow flexibility, so less stock needs to be kept in stores. Franchisees stock more than 400 lines of One Stop’s own label and Jack’s lower-price-point range. Using the new data management tool called Yext, One Stop has introduced a digital package for franchisees to enhance their local store visibility online. This means that retailers will get boosted posts and targeted ads to highlight in-store products and promotions.

You put the kettle on. We’ll bring the tea.

Average store size: 1,000-3,000sq ft Number of members: 200+

Cost of joining: weekly fee of £92

The year ahead One Stop have ambitious store growth targets. This year, they appointed Matthew Elliot as national recruitment manager, with the aim to open many more franchise stores in 2022. A huge focus for One Stop for the upcoming year is within vending. They have recently developed ‘Eat Street’, which is a dedicated area within One Stop stores to keep all vending solutions together. This makes stores become destination shops. One Stop understands they’re in a rapidly changing market – therefore, it’s key to keep looking for ways to appeal to customers and, in turn, grow sales. Some of the vending services One Stop offers include Tango Ice Blast, Costa Express, F’real milkshakes and Country Choice.

At One Stop, franchisees are provided with a combination of benefits such as a £50,000 store investment upon joining, market-leading promotions and a dedicated business development manager to provide support.

Retailer viewpoint Harman Basainty One Stop, Rheidol Avenue, Swansea

If you’re wondering how to refresh your convenience business, we’d love to chat with you about becoming a One Stop franchisee www.openaonestop.co.uk

“I OPENED my store three weeks ago and from start to finish it’s been easy with One Stop. They’ve helped me out a lot, not only with start-up contributions, but also organising the majority of my stock and sending down a team for the store launch. “They were helpful getting the store ready and those store launch members stayed with us for a week to make sure everything was running

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correctly and the staff were trained up. “I chose One Stop because of the range of products and promotions they offer me. Their EPoS system makes stock taking and ordering so easy, and their chilled products are a lot more appealing to my customers. Customers are aware of brands and so having these brands plays a bit part. “I’ve got two stores and

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I’m looking to open more. One Stop’s EPoS allows me to look at other stores and focus on other parts of the business, but from anywhere I can still see what’s on my shelves and what I need. Being with One Stop will allow me to expand. I’d recommend them.”

openaonestop.co.uk

PAID FEATURE IN ASSOCIATION WITH SPAR

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FACTS

Number of stores: 2,600 Average store turnover: £22,000

Cost of membership: free for the first year

Looking ahead to 2022 SPAR is determined to maintain its lead in the convenience market and will invest £125m in the business over the next 12 months. Spar will invest £100m in stores and will invest £25m in improving the supply chain and IT capability – everything from depots to vans and electric bikes for home delivery. Going into 2022, Spar will be driving shopper missions, particularly with ‘making a meal’ and ‘grab and go’ through engaging lifestyle content, video content, offers and Spar own-label products. Spar’s collaborative and

Spar What has Spar achieved in 2021, and what does the year ahead hold for the symbol group? The past year SPAR has reported sales growth of 8.5% year-over-year-over-year (YOYOY to four weeks ended 28 March 2021). Despite the Covid-19 pandemic, Spar stores were consistently there for customers. Last year saw accelerated growth as a result of the dedication and focus of Spar colleagues. Spar has been very versatile with its retailer recruitment process over the past 12 months and has brought in a number of great retailers who have felt supported throughout. Spar has held very successful virtual trade shows and conferences, and the business constantly demon-

strates the benefits of being with Spar. More than 360 new stores have opened or refits have taken place during the course of the year, ensuring that the Spar customer proposition is the best that it can be. Spar has launched several data-driven, mission-focused developments with new formats starting with the major redevelopment at Carnon Downs in Cornwall. The 2,600sq ft store is the first in the country to unveil the new Spar UK store design concept. Average weekly sales for the first six weeks of trade were more than £53k, an increase of 33% on the pre-launch period.

Retailer viewpoint Michelle Appleyard Spar Appleyard Store, High Littleton, Somerset “I LOVED the day-to-day running of my parents’ store in West Harptree, which has been under the Spar fascia for five years, and used to dream of owning my own store. My husband Jason and I bought the village shop in High Littleton last year. We could not have chosen a better location and it’s become a great success, despite the stress of opening it at the start of the coronavi-

rus pandemic. “My father recommended that we go with Spar. With their support, we gutted and refurbished the store, putting in new floors, ceilings and electrics. The support from our business development manager, and Appleby Westward, has been fantastic. We love the range of products and prices. Through the pandem-

ic the availability was good and helped us give a good supply to our customers, which helped us establish the business. “Moving to Spar was a great decision and we’ve rapidly found ourselves performing way ahead of our business plan.”

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commercial approach brings a modern approach to a store’s proposition and a relentless focus on what today’s convenience shopper is looking for. Dedicated planning teams produce bespoke planograms and layouts, making it easy for retailers to recreate. This includes dedicated one-to-one business support. Spar sees its future in lo-

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cal as consumers choose to shop locally in stores owned by independent retailers. The symbol group delivers customer-first modern format developments, store redesigns and refreshes, with innovations tailored to suit each store.

spar.co.uk/own-a-store

CATEGORY ADVICE PETCARE

BOOSTING SALES OF PET PRODUCTS Pet food is an essential purchase for nearly half the population, but CHARLES WHITTING discovers that food is just the beginning of the opportunity for retailers

THE PREMIUM PET OPPORTUNITY THE number of pet owners shot up during the pandemic, with 20 million cats and dogs currently living in the UK, according to Mars Petcare. With 47.7% of households owning a cat or a dog – let alone considering those households that own a second or third pet – retailers that are stocking petcare products will have an essential item of shopping for almost half their potential customers. “Following 3.2 million households welcoming a new family pet – dogs being the

most popular (57%), closely followed by cats (38%) – this sharp rise in new pet ownership offers retailers the longterm opportunity to build relationships with pet owners,” says Arthur Renault, UK portfolio director at Mars Petcare. “After many consumers chose to shop locally during the pandemic, the convenience sector is forecast to be the thirdfastest-growing channel in the next five years, behind online and discount.” Additionally, with people having spent more time with

their pets during lockdown, there has also been a marked trend towards more premium pet food, as well as more treats and toys. This means retailers need to ensure that they are stocking quality products and offering clear-cut trade-up options for their customers. “Premiumisation has long been a key driver of petcare sales, but the past 12 months has seen the trend grow in popularity even further, with 40% of owners viewing their pet as a child or family member. With such strong sentiment, it’s no

wonder that premium offerings are continuing to drive petcare sales,” says Renault. “With 72% of shoppers stating that they would be unwilling to compromise on the quality of products being bought for their pet, it’s no surprise that luxury options are continuing to drive petcare sales. Mars Petcare’s premium brands, Cesar and Sheba, are growing by 8% (trays) and 14% (pouches), respectively, making them ideal for encouraging shoppers to spend a little more to treat their beloved pets.”

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CATEGORY ADVICE PETCARE

THE IMPORTANCE OF BRANDS WHEN it comes to customer preferences in the petcare department, branded products seem to be most popular, so retailers should make sure they are stocking the most well-known and popular brands, and displaying them effectively. “Honesty, trust and transparency are some key consumer trends that have emerged postCovid-19, with shoppers looking for brands they can trust and which deliver authenticity,” says

Julia Padgett, category analyst at Inspired Pet Nutrition, which owns Harringtons and Wagg. “Consumers are also increasingly looking at sustainability issues, and Harringtons – with its focus on natural ingredients – strongly delivers in this area.” Arfan Sabir, from Baneswell News in Newport, stocks several flavours of Pedigree Chum, as well as Winalot. He has had big sales growth

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Sasi Patel, Go Local Extra, Rochdale, Greater Manchester

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in recent years, selling at a flat price of £1.30. “It’s a bit quieter now the bigger shops are open, though,” he says. However, it is important to remember that customer confidence is dropping and value for money is seen as increasingly important. While price-marked packs will give customers the comfort of knowing what they’re paying for, it is also worth stressing the quality of what’s on your shelves, particularly in

more affluent demographics. “With a recession still a strong possibility, research has shown that nearly 50% of pet owners think swapping to cheaper pet food is a good way to save money,” says Padgett. “Therefore, it’s important to show the value and benefit of high-quality, natural dog food and it’s worth remembering that in previous recessions, many owners didn’t compromise in this area.”

Arthur Renault, UK portfolio director, Mars Petcare “WITH the dramatic increase of pet ownership, also comes a lot of training, so we expect treats to be an ongoing popular purchase. Almost half (44%) of dog owners revealed they have fed their dog more treats every week, and 14% admit to ‘spoiling’ their dog daily since the start of the pandemic. “Dreamies had 12.9% growth, while Pedigree grew by 11.8%, as treating rose by 12% in the weeks following lockdown on 23 March 2020. Even with restrictions easing, people working from home more often means they are spending more time with their pets, broadening the opportunity for treating them. “Price-marked packs (PMPs) offer shoppers security, by clearly identifying the price on pack. As additional households are now navigating pet parenthood, PMPs are a positive way for retailers to highlight good value and offer reassurance to shoppers that they are offering competitive prices.”

“WE use the cash and carry for the core range, such as Whiskas, treats and pouches, but we use Solvex for the extended range. It’s a bits-and-bobs company and they work with all the big major partners, such as Good Boy and The Bone Company. They sell dog bones, tags, collars, leads and the flea-accessory kits. All the stuff you’d expect from a pet store, but not necessarily in a convenience store. They flew off the shelves when we got them in. It’s all sale and return, so if it doesn’t work they take it back and swap for something that does work. “I’ve got a one-metre fixture for dog products and one metre for cat products. I’ve got branded and non-branded products, and stock treats on clipstrips. It doesn’t take much space or investment, and the margins are great – we can get 40% to 65% margins from Solvex. If you think about someone who’s lost a lead when walking a dog, they going to want a lead now. We can get away for selling that for £2.99.”

product launches Harringtons has recently launched its new 6x400g ‘Meaty’ wet dog food plastic trays multipack, containing two new ﬂavours – beef and lamb. Harringtons is the fastest-growing brand within plastic trays, growing by 34.7%, and the addition is set to bolster its range as multipacks continue to drive sales within this emerging product format. Mars Petcare recently launched a natural-inspired range under its premium dog brand, Cesar. The new range features a multipack format, and the brand’s ﬁrst wet multi-serve option – Cesar Natural Goodness Cans – that caters for two-to-three servings. Available now, the products are available in 100% recyclable packaging, contain 100% natural ingredients with vitamins and minerals, are grain-free and contain a selection of wholesome ingredients, including cranberry, sweet potato and beans. Designed for health-conscious pet shoppers, it will give retailers a more premium offering to tempt Cesar shoppers and those looking for a multiserve option.

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DELIVERY POST-COVID With lockdowns over for the time being, RETAIL EXPRESS finds out what retailers will be doing with their home delivery services

We did a lot of grocery delivery during lockdowns, but is it likely to remain as popular? – Sharon Rimmer, Bilsborrow Post Office & Village Store, Preston, Lancashire

Amrit Singh H & Jodie’s Nisa, Walsall, West Midlands

“DELIVERY has dropped off like a lot of things pre-Covid-19 lockdowns, but we’re looking at the long-term trend. Getting things online and offering a strong delivery service is the way things are going now. We’ve been using Snappy Shopper for the best part of 18 months. It’s a great platform and we will continue to use them as we move forward. We’re doing phone orders as well and these two approaches cater to our customers and work well. Customers can see what’s in stock, what’s reduced to clear and which new products we have. “Delivery currently makes up around 8% of my overall sales, but I do see it growing. The bene�it is that it’s not just existing customers. The common misconception is that I’m delivering to customers who are already coming in. But what I’ve found is that I’m delivering to a whole new audience. You’re not cannibalising existing sales, you’re growing new ones.”

Terry Caton Londis Chesterfield, Derbyshire

“DELIVERY has dropped off since the lockdowns eased, but there are still opportunities for retailers. You’ve only got to look at Jisp, Snappy Shopper and others to know that there are lots of good online platforms out there. It’s about understanding your market. We’re still offering the same service we were offering 18 months ago, and we’ll continue with that. It’s on a smaller scale than it was, but we’re still getting enquiries. We need to continue what we’re doing and maintain that offer. “It will depend on what kind of store you are, and the products and services you offer. You need to understand your customer base and what their requirements are. Use social media and talk to them to understand what they actually need, and then work out if offering delivery is right for your business and your customer base. Look at the stats and understand the market, and make an informed decision.”

AJ Singh Premier Morley, Leeds

“WE’RE still actively doing it. We’re adding more food-to-go formats to it, in fact. We’re on Just Eat and we are growing it. We’re having another refurb at the store with a designated delivery and click & collect area. We’re pushing delivery and still doing well – we’re getting 100 deliveries a day and still growing it. Last week, we introduced fresh doughnuts and that did really well. I got the machine from Blackpool, and on Saturday we sold 1,200 doughnuts. “We’ve delivered to all types of customers – there are new faces, we’ve got customers who we delivered to over Covid-19 and whom we’ve retained. We have customers who come into the store and know what we do. We have customers who can’t get out because they’re a single parent. We deliver to care homes and assisted-living homes. We deliver to people who don’t want to get out of bed. The list is endless.”

In the next issue, the Retail Express team looks at how retailers are adapting to the rise in card payments. If you have any problems you’d like us to explore, email charles.whitting@newtrade.co.uk