Retail Express - 10 August 2021 by BetterRetailing

STILL DOESN’T STILLL TRUST YOU

10-23 AUGUST 2021 STRICTLY FOR TRADE USERS ONLY

PARCEL FRUSTRATION

STUBBING OUT ILLICIT

SPORTS & ENERGY DRINKS

Retailers criticise myHermes for silence after term cuts earlier this year

Coventry retailer tackles illegal trade in his area with heated tobacco

Find out why customers are turning to this growing category post-pandemic

P11-14

Meals & Missions: The opportunity for increased sales and proﬁts

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

Handbook

MEALS & MISSIONS

On sale 24 August

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Only £4.99

11/06/2021 16:25

New products are key to keeping your shop relevant, and rather than the more traditional categories such as confectionery and soft drinks, research* shows that the top two categories where convenience shoppers are looking for new products are fresh & chilled and food to go. The Retail Success Handbook: Meals & Missions will help you get these categories right, so your store proﬁts. The issue will contain expert advice, cutting-edge market insight, and tips from retailers who have made them a success on the following areas: • Core meals – breakfast, lunch and evening meals • Big night in • Impulse snacking • Occasions • Home delivery

Order your copy from your magazine wholesaler today or contact us on 020 7689 3363

*The Perfect Launch, Newtrade Insight retailer research, April 2021

This edition of The Retail Success Handbook will help make your shop more attractive for customers shopping for full meal solutions and other lucrative occasions, from the big night in to special celebrations.

SMOKING SALES

Find out the evolving tobacco opportunities for your store P22-32

10-23 AUGUST 2021 STRICTLY FOR TRADE USERS ONLY

STILL DOESN’T STILLL TRUST YOU • Exposed: tech giant’s disrespect for retailers laid bare in damning new correspondence • Firm refuses to acknowledge CCTV evidence proving stores aren’t to blame • Uber Eats admits refunds system ‘not 100% accurate’

PARCEL FRUSTRATION

STUBBING OUT ILLICIT

SPORTS & ENERGY DRINKS

Retailers criticise myHermes for silence after term cuts earlier this year

Coventry retailer tackles illegal trade in his area with heated tobacco

Find out why customers are turning to this growing category post-pandemic

P11-14

our say

Megan Humphrey, editor

Market your store right I HAD the pleasure of seeing a brand-new refill station in action a few weeks ago while I was holidaying in the New Forest. The store was a Co-op Welcome franchisee located in Brockenhurst. It was hard not to be drawn in by its squeaky-clean fascia brightening up the high street. The refill station was situated at the front and made for a pleasant welcome. Signage encouraged customers to bring their own jars and fill up what they needed, to then weigh and pay for. Pastas, cereal and rice filled the tubes, but there was more to be discovered at the back of the store. Here, a smaller display unit featured a range of household necessities, including dishwasher detergent and washing-up liquid. However, a staff member told me uptake had been slow, and said: “No one seems to know we have it.” There’s a lesson to be learned here. This store was breathtaking. Not only was it a brand-new refit, but it also THERE’S A housed a Tango Ice Blast drinks machine, a post office, a hot dog LESSON TO BE food-to-go station and a water LEARNED HERE refill point, as well as trolleys. But it clearly hadn’t been marketed well. No matter what you add – whether it’s a new product or machine – it’s essential you make your customers aware of it. Social media can be a powerful tool, but sometimes leafleting, or more simply the spoken word, can be enough. Since the pandemic began, customers have been yearning for convenience – if they can get that in your store, then you should be shouting about it. TO FIND OUT WHAT PRODUCTS YOU SHOULD BE STOCKING AHEAD OF KIDS RETURNING TO SCHOOL, TURN TO PAGE 16 @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

Editorial assistant Junior Designer Suhara Pavithri Jayasena Miriam Garofalo @suharajourno Production coordinator Production editor Lucy Heaney Ryan Cooper 020 7689 3368 020 7689 3354 Director of sales Sub editor and marketing Jim Findlay Matthew Oliver 020 7689 3373 020 7689 3367 Sub editor Robin Jarossi Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380

Senior account director Charlotte Jesson 020 7689 3389 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

Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379 Senior news reporter Alex Yau @AlexYau_ 020 7689 3358 Editor in chief (maternity cover) Tan Parsons 020 7689 3353

The five biggest stories this fortnight 01

myHermes fails to respond to concerns over term cuts

CHARLIE FAULKNER RETAILERS have accused myHermes of “ignoring” them over calls to renegotiate terms, following a controversial cut in parcel commissions earlier this year. The company informed its partnered stores in May that it would be reducing the handling fee per parcel from 35p to 32p. The changes meant a

Availability anger

NISA and Co-op have received heavy criticism from retailers claiming own-label availability was greater in nearby Co-op stores, despite being told otherwise. There have been similar issues reported by Booker customers. One retailer claimed

Sales support executive Charlotte Brady 020 7689 3382 Management accountant Abigayle Sylvane 020 7689 3383 Managing director Parin Gohil 020 7689 3375

46,191 Audit Bureau of Circulations July 2019 to June 2020 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.

availability in a nearby Tesco store was greater on lines they had seen restrictions placed upon. This is the second time suppliers have been accused of restricting supply to independents to protect availability in the supermarkets.

wanted to suspend my service, unless I can renegotiate. “I will be stopping my service from them if this continues, and someone will need to come and pick up the parcels I currently have.” Dilmeet Gaba, of Londis Gerrards Cross in Buckinghamshire, added he hasn’t received a visit from any reps since the email was �irst sent out.

Asda bulk buy

ASDA has extended its cash and carry concept, The Deal Depot with the opening of 10 new sites. Following a successful launch at Asda Cardiff, stores in York, Bottle, Milton Keynes, Toryglen and Dumbarton will get a dedicated bulk-buy aisle.

The grocer is also testing a smaller selection of bulk-buy items in a further �ive stores. The ‘test and learn’ trial is a progression from the original concept that was launched as a standalone wholesale store in Bristol in December 2019.

“I’m not very happy,” he said. “This is the �irst time we’ve experienced a cut, so we will continue for now, but if myHermes do it again we will get rid of it. “I know a lot of retailers who’ve had it for a long time and seen their rates decrease.” myHermes failed to respond before Retail Express went to print.

Bread cut-offs

RETAILERS hit back after Warburtons con�irmed plans to temporarily stop deliveries into convenience stores yet again. The supplier stated it was resting routes on a rotational basis and plans to stop deliveries into stores nationwide

due to an increase in its drivers self-isolating. Last month, the bread �irm failed to deliver into supermarkets and convenience stores. A spokesperson said the company was planning ahead to “minimise the impact”.

To read the full story, go to betterRetailing.com and search ‘Warburtons’

To read the full story, go to betterRetailing.com and search ‘availability’

Account manager Adelice Tatham 020 7689 3366 Account manager (new business) Jimli Barua 020 7689 3364

store handling 300 parcels per week would see its annual commission fall from £5,460 to £4,992. At the time, retailer Mo Razzaq, owner of Jack’s of Blantyre in Glasgow, said he had contacted myHermes in an effort to renegotiate his terms. He told Retail Express: “I haven’t received any communication from them since sending an email, saying I

Bestway support

RETAIL and sales teams at Bestway started to do their own store deliveries to ease the burden of the national driver shortage. Throughout the summer heatwave, area managers at the wholesaler’s Scottish sites braved the heat and

drove vans with stock to stores across the region. Posting on LinkedIn, proud Bestway regional controller Phil Knox said: “We are supporting our depots and ops teams with any support needed to keep our shops full and consumers happy.”

@retailexpress facebook.com/betterRetailing

10-23 AUGUST 2021 betterRetailing.com

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

Uber Eats admits refunds policy is inaccurate MEGAN HUMPHREY UBER Eats has acknowledged its refunds policy is not “100% accurate”, following year-long accusations from retailers that the company is wrongfully charging them for sending deliveries to customers with missing items. Several retailers �irst alerted Retail Express to the issue in April 2020. At the time, retailers were eventually compensated, but only after it was raised with the delivery service. Since then a handful of different retailers reported Uber Eats was continuing to automatically charge them for missing items, with one claiming this happened three times in one week. In a bid to win their money back, store owners have provided CCTV images of the products going into the bags of drivers as evidence, and secured driver signatures to con�irm they have every item. A Birmingham retailer, who wishes to remain anonymous, said: “We can’t keep affording to have these deductions. It only ever happens to small orders, but they soon start to rack up. “Every order I send out now I make the driver sign to say they agree that every item has been put into their bag. When I try and complain, I just get a standard response, and nothing is ever done.”

GOOD WEEK TAKEAWAYS: Businesses’ licences to sell takeaway alcohol have been extended until March 2022. The licence gives retailers the opportunity to bring in more revenue by allowing customers to buy takeaway alcohol from their premises. Many retailers have benefitted from this during the pandemic, after investing in standalone draft keg machines. KITWAVE: The wholesaler has confirmed it is on track to meet the “peak summer demands” of its independent customers. The comments were published in its latest financial results for the past six months ending 30 April. The group said its new 70,000sq ft distribution centres in London would help to “meet future growth expectations”. Go to betterRetailing.com and search ‘Kitwave’ for the full story

BAD WEEK

Alcohol, tobacco and confectionery were the most popular lines retailers claimed customers lodged false complaints about, with charges of anywhere up to £30 being made each time. However, after constant probing, one retailer received personal correspondence from one of Uber Eats’ territory account managers who admitted the company’s refunds policy is not “100% accurate” and it refuses to acknowledge CCTV as evidence. In the email received by the retailer, and seen by Retail Express, the representative said: “Uber Eats does have a rigorous refund policy in place with miss-

express yourself “WHERE are you supposed to hide it? Under the counter, like cigarettes? We need clarification on what is allowed and what isn’t, and where it’s supposed to go. It doesn’t clearly say you cannot put something somewhere. I’m a bit lost on it as I think most people are. We need this information clearly in advance from the government so we can correctly prepare for the legislation changes, and we need it now.” Trudy Davies, Woosnam & Davies, Llanidloes

ing items being a possible example of something that may need to be covered by a restaurant. Each query is assessed on a case-bycase basis, although please be aware that our support team wouldn’t use CCTV when making a decision. “The system will not be 100% accurate – for example, sometimes Uber may pay for a refund that is either customer fraud or the fault of the restaurant, and sometimes the restaurant may pay for a refund that is either fraud or the fault of Uber.” They said because of this, the partnership agreed a “goodwill threshold”. “This means that you

the column where you can make your voice heard

can claim back an agreed amount of refunds from Uber each month if you believe that a change has been made incorrectly,” it read. Retail Express understands Uber Eats is now working on product solutions for retailers speci�ically to improve accuracy when packing orders. It has recently improved reporting for restaurant partners, with its ‘Restaurant Manager’ portal now giving more detailed information about what went wrong with each refunded order. The company has also updated the app to make it easier for customers to select exactly what items were

missing with their order. When asked to comment on whether the delivery service is planning on rectifying its refunds policy, a spokesperson for Uber Eats said: “The vast majority of orders made via Uber are completed without an issue, and we believe that our refunds policy is fair for eaters and restaurant partners. We have a dedicated team who are constantly reviewing and improving our processes and we are always happy to review any refund if there is a concern.” Are you experiencing similar issues with Uber Eats? If so, call Retail Express on 020 7689 3357

SAINSBURY’S: Last month, the supermarket announced it would be exiting wholesale supply by summer 2022. The decision affects symbol group SimplyFresh and independent retailers who had struck relationships with the multiple over the past 18 months. Jerseybased First Choice Groceries’ director, Jake Shaw, said this would have a “major impact” on the business. PARCELFORCE: Post Office retailers criticised the new delivery system after claims parcels were taking up space in stockrooms. One retailer said: “Previously, drivers could manage the routes themselves, but there’s a new routing system that’s not fit for purpose and they can only come at specified times. Any parcels posted after that time stay in the shop. They can’t collect on weekends either, so bulky parcels take up space.”

How are you preparing for the upcoming high-fat, -salt and -sugar (HFSS) laws?

“THE ACS put out a fact sheet recently, which is very useful. It’s broken down all the different elements of the sort of regulations that are coming into place, and how it will affect different retailers. The problem I had at the start was that this is very different to the sugar tax, which is quite simple to follow. There are so many levels depending on how big your store is, and whether you’re part of a franchise or not.” Aman Uppal, One Stop Mount Nod, Coventry

“I THINK there’s plenty of retailers out there that still don’t understand what the legislation is and how it’s going to impact them. What I’ve been looking for is a definitive answer on how this is going to impact us, what this legislation says, and how I can go and look at my business, then know how to adapt. We want clarity on the approach that we need to take.” Vince Malone, Premier Tenby Stores & Post Office, Pembrokeshire

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

Vince Malone

NEWS

Tackling illicit with heated tobacco MEGAN HUMPHREY A WEST Midlands retailer is combating the sale of illicit tobacco in his local area by selling and promoting heated tobacco. Ravinder Sandhu, owner of Loco Hill�ields in Coventry, teamed up with tobacco company Philip Morris International (PMI) to get clued up after becoming concerned about the number of stores

selling illicit products. He told Retail Express: “There were about two or three shops [in the region] that I knew sold illegal tobacco. “A rep spent a couple of weeks with me telling me about the different ranges [of heated tobacco], as well as educating me on the bene�its over smoking. “It gradually started gaining traction. I sold more

than 60 Iqos devices in three months, which is unheard of.” Sandhu said he quickly noticed customers in the area who usually bought illegal cigarettes convert to heated tobacco. “I reckon about 40% of them have now turned to buying Iqos from my shop,” he said. “Once I told them about the health bene�its and the competitive price, they never went back.

“Once I got talking to them, they admitted they used to buy tobacco illegally.” He added: “Overall this is better for my community. I have put the effort in to become an expert, and helped my staff do the same – we are all self-suf�icient and know what to recommend if a customer asks. “Other store owners should think about doing this because they’ll see huge sales.”

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COSTA COFFEE TRIALS EXPRESS

COSTA coffee is set to trial its new Express machines, servicing hot and cold drinks across UK convenience stores. Taking place in 40 selected locations in Bristol this summer, the trial will offer more than 500 different varieties of coffee, as well as iced fruit cordials including a strawberry & lime flavour. The trials have already attracted great interest from convenience retailers, having

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‘Heavy’ drink shortage

previously reported a high demand for self-serve cold drinks machines during winter.

Driver search begins GROCERY delivery company Beelivery continues its search for 50,000 new drivers, aimed at creating a low-risk and increased sales business model. With no shops, warehouses or partnered outlets, Beelivery operates with an army of delivery drivers picking or-

ders from ideal locations. The service already covers 90% of households across the UK, with a range of 3,000 lines commonly found in convenience stores and supermarkets. A £2m TV and online campaign is also due to be launched.

PRODUCTS

10-23 AUGUST 2021 betterRetailing.com

Birds Eye encourages Fruit Fusions gets a whole new look frozen fish sales

BIRDS Eye is launching a campaign to change negative perceptions towards frozen �ish and reinforce the quality of its range. Supported by a £2.3m investment, ‘Get on board’ aims to encourage shoppers to up their intake of �ish to meet NHS guidelines. It will span TV, digital and on-pack advertising, including in-store PoS. Mike Sowerby, general

marketing manager for �ish at Birds Eye, said on-pack consumers will be able to scan a QR code where they can �ind out more about where and how the supplier sources its �ish. “More people are seeing the bene�its of eating frozen food, which has seen the category on an upward trajectory for a number of years now,” he added.

PERNOD Ricard UK is inviting consumers to ‘Let the funshine’ with its new campaign for Malibu. Running through August on YouTube, Instagram, Facebook, Snapchat and digital media, the brand will collaborate with singer AnneMarie, actor Michael Dapaah and nine UK in�luencers. The campaign is set to capitalise on the popularity

of the brand, with Malibu experiencing 26.5% growth in value, ahead of the ‘alcoholic specialities’ category. Marnie Corrigan, brand director at Pernod Ricard UK, said: “After a year of virtual hangouts, summer is �inally here and the Malibu ‘Let the funshine’ campaign is our way of helping everyone make the most of time spent with friends and family.”

Let the ‘funshine’ begin with Malibu

ACCOLADE Wines has given its Echo Falls Fruit Fusions wine a new look with further differentiation between its 5.5% and 9% AVB varieties. Fruit Fusions 9.0% ABV appeals to Echo Fall’s core demographic of younger wine shoppers, while the 5.5% ABV taps into the growing trend around moderation. Fruit Fusions 5.5% will feature a silver capsule colour, while the 9.0% ABV option will vary in colour depending on the �lavour. An enlarged ABV call out will be consistent across the entire range to ensure clarity in-store. Echo Falls, now worth £120m, is the UK’s number one �lavoured wine brand with a 54% market share.

Walkers focuses on its 100-calorie-and-less snacks

PEPSICO’S new campaign for Walkers will drive awareness of its multipack snacks that contain 100 calories or less. As part of this, the logos of each product will be replaced with words indicating surprise on a new TV advert. This will be backed by

outdoor and social media advertising, including instore PoS. Calorie content is currently the number one consideration among families purchasing snacks. However, 71% of UK consumers are not aware of

Walkers range of snacks that contain under 100 calories. The campaign therefore aims to bridge this disconnect, and will focus on its products including Wotsits, Quavers, French Fries, Squares, Snack-a-Jacks and Frazzles.

£3.5m spend behind Win cash prizes with JJ Whitley Vodka Naked and Tropicana JJ WHITLEY Vodka has announced the launch of its �irst campaign celebrating the brand’s Russian provenance and British heritage. The campaign will put a spotlight on its bestselling varieties – Artisanal Russian Vodka, Raspberry Vodka and its recently launched Artisanal Russian Gold Vodka – forming part of a wider campaign to grow awareness for the brand. It will also see the brand feature on TV for the �irst time as sponsors of Sky One’s ‘Nights in’ programming throughout August. The £3.5m campaign will run until December, and in addition to the Sky activity, it includes outdoor, digital and print advertising.

PEPSICO is encouraging retailers to maximise the chilled fruit juice and smoothies opportunity with the chance to win cash prizes as part of its �irst retailer campaign. One retailer will win a £5,000 cash prize, with 10 other £500

runner-up prizes on offer. The campaign will run across core Naked and Tropicana lines between 7-15 September. To be in with a chance of winning, retailers have to buy any two cases from the range. The supplier said the category

remains an important category for retailers to consider during the summer months. “Our Tropicana and Naked brands drove the recovery of single-serve chilled juice in 2020 in impulse,” said Guy Harvey, impulse category management controller at PepsiCo.

PRODUCTS

Maltesers Buttons gets an orange twist in new flavour PRIYANKA JETHWA MARS Wrigley UK is expanding its Maltesers Buttons range with an orange�lavoured variety, on sale now. Maltesers Orange Buttons are available in four formats, including single (RRP 63p), treat bag (RRP

Win prizes with Carling beer CARLING has launched a new competition giving consumers a chance to win a range of football-themed prizes. Twenty ‘golden tickets’ will be hidden inside promotional four-can multipacks. The cans will still look and weigh the same as normal cans. Winners will be able to redeem the tickets for home

£1.19), share pouch (RRP: £2.09) and more to share pouch (RRP £2.79) sizes. Michael McKay, who is the store manager across two One Stop stores, a Costcutter and a Nisa Local in the East Midlands, said they will be stocking the chocolate in one One Stop store in the share pouch format, on promotion for £1-1.25. McKay explained chocolate sales during summer normally “die down”, so launches such as this will help him keep the category fresh. To make the most of chocolate launches, he encourages convenience retailers to get new products in store fast to take advantage of the ‘newness’ before sales dwindle and customers can

match day experiences worth more than £4,500. This includes a 65-inch Smart TV, soundbar, TV Sports Pass, £1,500 sofa voucher and £200 takeaway voucher. On top of this, they will get

Retailers can win big with Cadbury

MONDELEZ International’s new competition will give retailers the chance to win a range of family prizes by stocking up on Cadbury treats mainly bought for and by children. Every time a retailer buys a case of Curly Wurly, Chomp, Freddo and Freddo Treasures, they can visit deliciousdisplay. co.uk and �ill in the entry form to enter the draw for a £100 Love2Shop gift card every week for 10 weeks. Those who are unsuccessful in the weekly draws will also

be entered into a �inal draw for the opportunity to win one of two family days out to a Merlin Entertainments attraction of their choice.

�ind them everywhere. “We’ll range the chocolate on a promotional end to make it stand out. With product launches like this, you have to display them in a prominent

position in store as the popularity will subdue quickly. “The same happened when we had the original buttons in store. In contrast, Smarties Buttons did very well,” he said.

xxx

10-23 AUGUST 2021 betterRetailing.com

Pladis relaunches Better Biscuits PLADIS has relaunched its Better Biscuits category management platform to help independent retailers add £21m to biscuit sales annually. This means the average independent retailer could be selling more than £450-worth of extra biscuits in a year. The relaunched platform outlines �ive key steps for retailers to get this growth. This includes: stocking the bestsellers, as 80% of biscuit sales come from just 5% of products; making the category easy to shop, as 47% of shoppers will leave a shop if they can’t �ind what they’re after; driving excitement through balancing launches with core lines; making biscuits impossible to miss by using PoS and secondary sightings; and catering to events and occasions.

Shampoo bars set to be next big trend, says Alberto Balsam

a one-year supply of Carling, including a Carling-branded football table, beer fridge and glassware.

UNILEVER is launching a range of shampoo bars under its Alberto Balsam brand, available in Sunkissed Raspberry, Nourishing Coconut & Lychee and Juicy Green Apple varieties. With RRPs starting from £2.50, the supplier said the natural beauty market is estimated to grow by £21m in the next three years, with products such as shampoo

Pernod Ricard says drink more… water AS part of its ‘responsible party’ initiative, Pernod Ricard’s new global digital campaign is aimed at tackling the issue of binge drinking. ‘Drink more… water’ aims to connect with Gen Z and features snapshots of what can happen when people

drink to excess. The campaign is based on the supplier’s ‘responsible party’ programme’s main drivers: to persuade young adults there is no fun in excessive drinking and to empower them to make the right choices for themselves.

bars, which are marketed as being better for the environment, set to be popular. It added the shampoo bars can also last up to 70% longer than a standard shampoo bottle. Carly Burford, marketing director at Unilever UK&I, said: “We’re transforming our liquid formula into bars and making them free-from plastic.”

Mikado supports on-the-go biscuit sales MONDELEZ International has launched a social media campaign for Mikado to help grow on-the-go biscuit sales. The campaign features its Milk, Daim and Go Milk varieties, and the supplier said Mikado is the number-one price marked-pack option in the on-the-go biscuits segment. Live now, it will span Facebook and Instagram and is expected to reach 12.5 million shoppers. New PoS materials will also be available for retailers, including a gutter tray, shelf highlighter, clipstrips and posters.

OPINION

DON’T MISS THE 20 AUGUST ISSUE OF RN

RETAILER OPINION ON THIS FORTNIGHT’S HOT TOPICS

What do you think? Call Retail Express on 020 7689 3357 for the chance to be featured PANIC BUYING: How are you driving customers back into your local shop? “WE are talking to customers and telling them to carry on buying what they need as we have stock. We might not have the full range, but we have enough. We are going to cash and carries to pick up stock to fill in any gaps.” Samantha Coldbeck, Wharfedale Premier Convenience, Hull

Get your hours right: how to achieve the optimum opening schedule for your store

PANDEMIC: How many customers are still wearing face masks in store?

Staff development: the training and processes that will build a strong workforce

People need to make their own decisions Tips foteam er s happilthier samolerale ea improve stoforremance to per andple h ways st store

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“MORE than 80% of our customers are wearing them. Mostly it’s the elderly and people over 40. We say thanks to people for doing so. All the staff are wearing them and they are double jabbed. I think everyone understands that people need to make their own decisions.” Jey Sivapalan, 1 Stop – Go local, Derby

“TEN per cent, and they are mostly elderly. The staff and I are wearing them, and we’ve still got notices on the doors. We’re not able to force anybody to wear one. We’re trying to encourage it where possible. I can’t tell people to get out of the shop because I’ll lose customers.” Ken Khaira, Londis Store, Sunderland

CRIME: Would more neighbourhood policing reduce incidents? “ABSOLUTELY. We really need to go back to basics. There has been a lot of negativity about policing due to cuts. The government needs to start reinvesting in terms of bobbies on the beat. People are reluctant to report crimes because the police don’t do anything.” Kuljit Singh Jaye, Narborough Post Office, Leicester

“A POLICE presence makes people think and potentially stop what they’re doing. The police seem to have lost a bit of respect, but I think it’s a social problem. You should be able to vote on having a police officer, and you could pay an extra £20-£30 on your council tax.” Sunny Mehat, Go Local Extra Inkersall, Chesterfield

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

Kay Patel, Best-one Wanstead, London

We are going to cash and carries

PLUS

THE LEADING TITLE FOR NEWS AND CONVENIENCE RETAILERS THE LE ERS ADING RETAIL TITLE FOR NE IENCE NVEN WS AN D CONV AND CO NEWS ENIENC R FO E E RETA G TITL ILERS IN 39 tips for AD THE LE a better shop ra

“I’VE called the suppliers I used when we first saw panic buying. I’m finding I can’t rely on just one, so instead I’m splitting my orders in case one falls through. Speaking to other retailers to find out who they are sourcing products from is essential.”

The police seem to have lost a bit of respect FINANCE: How concerned are you about debt levels post-pandemic?

We started repaying it three weeks ago

“I’VE been lucky enough that “EVERYONE is concerned. We I’ve not had to take debt on. took out a loan of a quarter of But for the UK as a whole, it a million pounds six months is concerning. There is more ago. It’s a standard five-year unemployment and a lot of term contract and we started jobs being cut. Our sales repaying it three weeks ago. were really high during the We are in a lucky position to pandemic in comparison to be able to pay it back. Custhe same time last year, but tomer accounts are at 20%, but spending has stayed level.” last week we saw a dip.” Aidan Staton, Solo Stores, Birmingham

Dilmeet Gaba, Londis Gerrards Cross, Buckinghamshire

LETTERS

10-23 AUGUST 2021 betterRetailing.com

of CHRISTINE Hopes Longtown, HOPE Hereford

Letters may be edited

How to beat the heat and make sales

‘Menzies is shortsupplying my mag orders’ Constraints were put on my TV Choice magazines from Menzies again last week. I have a 220-a-week standing order, 190 of which go to HM Prison. I didn’t realise until this morning that we hadn’t been delivered enough, and I’m not prepared to say to my customers that we can’t deliver

what they need. So, I went to Asda and Morrisons to buy enough to �ill their order out of my own pocket, all at cover price. This is the �ifth time this has happened in the past six months, it’s pretty much a regular occurrence. When I contacted Menzies afterwards to increase my

order quantity, I was questioned as to why it was such a jump. Unless I make an of�icial complaint there’s no way to get anybody to listen. This is really starting to grind my gears, as it is always the independents who lose out. Samantha Coldbeck,

Wharfedale Premier Convenience, Hull A Menzies Distribution spokesperson said: “We’d like to thank Ms Coldbeck for bringing this matter to our attention. We have been in contact with Ms Coldbeck to resolve and do not anticipate any further issues.”

COMMUNITY RETAILER

OF THE WEEK

Prakesh Patel, Newtown Post Office & Convenience Store, Manchester

‘We won the Daily WIN £50-worth of limited-edition Yazoo Express’s competition’

YAZOO is helping retailers capitalise on the growth of the stay-at-home occasion by giving five Retail Express readers the chance to win £50-worth of new LimitedEdition Jaffalicious Choc-Orange 1l. With a shelf life of up to nine months, it can be stored ambient, ready to be put in the fridge once opened.

TO ENTER Fill in your details at:

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

“WE are the winners of the Daily Express’s ‘Newsangels’ competition. In association with the National Lottery, it was launched to shine a light on the newsagents who went above and beyond for their communities during the pandemic. We are over the moon and want to extend our thanks to everyone who nominated us. We have been doing this for 33 years and to be rewarded for it during such a tough time feels amazing. We prioritised helping our elderly customers in the last year or so and made sure they got everything they needed when shielding. We won £5,000, but the acknowledgement means more.”

OH my goodness, the weather has been glorious in recent weeks. That good weather has brought in loyal customers and visitors alike. I’m not sure if it’s the heat or my second vaccination, but we have had a fantastic day as I write this. So, what can we retailers do to make the most of these hot, sunny days in our stores? First, it’s critical Each issue, one of seven top to keep topping up retailers shares advice to those temperaturemake your store magnificent controlled treats, drinks, ice and ice cream. You need to have plenty of snack food as, for many customers, it’s too hot to eat what they originally thought. You also need to help them prepare for advance meal purchases, whether that’s barbecues or simple dinners. You are trying to cover multiple customer types with multiple needs all from one little space, while trying to offer something new and exciting. Any independent retailer is different, but you need to make sure that people see you as the place to go to get anything new and exciting. Anyone can have the right products, but it is how you engage with your customers and community that will make your goodies shift. It’s so important to inform your customers about what products you have in person and online. Educate your staff about it as well and make sure that they are talking to your customers about it. But it’s not just the products you have on offer or the way you promote them that you need to think about when the mercury starts to rise. Your store itself and the people in it will be affected by the heat, so here are some top tips to consider for coping on a hot day. Open your doors and windows as soon as possible in the day to get air circulating throughout the store. Why not turn some lights off so it feels as it you’re working in the shade? When you’re washing your hands, switch from hot water to cold and just run your wrists under the cold tap for 20 seconds. This will help to cool the blood around your entire body. If you have external seating, make sure you’re moving it to shaded areas as the sun moves during the day. And finally, to make the store a better place to work, offer your colleagues and staff a chilled drink or an ice cream. They will have earned it. Having said that, I’m off to dust the sunglasses left over from last year.

Get in touch

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

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CATEGORY ADVICE SPORTS & ENERGY DRINKS

10-23 AUGUST 2021 betterRetailing.com

SPORTS & ENERGY DRINKS Sports and energy drinks are a growing category as the population looks to get in shape now restrictions have eased. CHARLES WHITTING finds out more

the stat

£14bn The value of energy drinks

WHO’S DRINKING SPORTS DRINKS? THE demand for sports drinks grew during the pandemic, with people trying to stay healthy and alert during successive lockdowns. Now, as we get back to more active lifestyles following the easing of restrictions and the inspirations of the Olympics, popularity for drinks that enhance our exercise routines has continued to grow. “The segment continues to benefit from the healthier lifestyles trend, with customers increasingly seeking food and drink with functional ingredients to help achieve maximum results, during sports or when

working out,” says Amy Burgess, senior trade communications manager at Coca-Cola Europacific Partners (CCEP). “We encourage retailers to review the amount of space they allocate to each sector within soft drinks. Sports drinks should be given the chiller space they deserve, especially with restrictions easing and people actively going to gyms more.” However, the sports drink consumer has never just been someone looking for a drink after playing sport – although this is an important customer base. While sports and energy drinks often occupy similar

spaces, the reasons for purchase vary considerably. Almost every retailer will have sports drinks customers. “Peak Performers are sporty consumers using ‘big can energy’ to fuel performance; Work Fuellers are pre-family with demanding jobs who want energy to focus on the task at hand; Mood Enhancers are busy families juggling childcare, lifestyle and work; and then we have Pleasure Seekers, who are the young adults socially drinking big can energy with their peers,” says Adrian Troy, Barr Soft Drinks’ marketing director.

“The category has to be exciting and varied to keep these shoppers engaged.” Colin Savage, from Baxters Newsagent in Milngavie, Glasgow, sees a wide array of customers buying sports drinks. “Lucozade normally sells quite well. The people buying them are often younger people – women and men – people in offices. Kids buy sports drinks as well. The only age that doesn’t buy it is the elderly,” he says. “People are loyal to the category, but not to brands. I’m working my way through the Monster flavours and whatever I get in tends to sell.”

CATEGORY ADVICE SPORTS & ENERGY DRINKS

10-23 AUGUST 2021 betterRetailing.com

THE IMPORTANCE OF HEALTH AND FLAVOURS WHILE it is tempting to introduce new brands into your sports drinks shelves, the importance and attachment to bigger names remains significant, so it’s worth using them for new products. “Any product, we’ll give a go,” says Bobby Singh, from BB Nevison Superstore in Pontefract, West Yorkshire. “And some end up successful and make a name for themselves. But sales of Lucozade are consistent. The leading brands sell consistently, there’s no doubt about that.” Therefore, for retailers to add variety to their sports drinks

range, it is worth looking at what leading brands are doing, which is launching new flavours to capture customers’ imagination. “Consumers are increasingly opting for flavoured variants when choosing an energy drink, with flavoured energy accounting for 34% of the mainstream energy market and growing faster than original energy,” says AG Barr’s Adrian Troy. “Flavour remains important – they are looking for more than functionality, they want a great-tasting product. Eight of the fastest-growing energy drinks lines are flavoured, four

of which are juice-based.” Along with new flavours, people are looking for health benefits from sports drinks. Drinks with specialist added products can be a winner, as can low- or no-sugar versions of popular lines. According to Red Bull, the brand sold 33.3% more sugarfree volume through its multipacks, making sugar-free options an important addition. “People are looking for sugarfree and low-calorie drinks,” says Singh. “At one time, the ratio between original and diet would have been five to one. But things are changing.”

MERCHANDISING ADVICE FROM SUNTORY BEVERAGE & FOOD GB&I

1 2

Block your soft drinks by category It’s important to group the same types of drinks together. This will also help shoppers find what they want more easily.

Within each category, arrange by format Range formats within each category together so they flow smoothly. Putting colas together, for example, and then segmenting this section further into cans and formats, will improve the ‘shopability’ of the category by making it easier to find the right format.

Block energy by category and highlight your take-home offer Energy and sports drinks account for 30% of total soft drinks sales in convenience, so it’s an important segment of any retailer’s chiller, especially in the summer, with drinks satisfying different shopper needs. By blocking sports and energy by need state – starting with stimulants, flowing into sports, then energy and finally natural energy – customers will be able to easily find the right drink for the right occasion.

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

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CATEGORY ADVICE SPORTS DRINKS

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BIGGEST EVER MARKETING CAMPAIGN

BUILDING A RANGE WITH space at a premium in convenience stores, dedicating the right amount of it to sports drinks and then finding the right lines to include can be a challenge. As a drink that is often consumed on the go or immediately after exercise, smaller bottle formats should always be prioritised. “Isotonics is a high-value, high-growth category and this new wave of leisure pursuits is helping to drive the market,” says Craig Wescott, trade marketing manager at Refresco UK. “Activities such as hiking, camping, cycling, climbing and watersports are this year replacing holidays overseas. This means the opportunity for impulse purchasing is high and consumers are looking for great hydration to support an increasingly active lifestyle.”

However, many retailers have found that people stock up on their sports drinks, increasing demand for mulitpacks on their shelves as well. It is also important to cover different price points in your range. Value options will often sell well alongside recognised and premium brands. “We sell Lucozade Sport, Monster and Red Bull, and then have value drinks for 39p,” says Savage. “That’s like its own market and people will buy them in threes and fours. And then we sell Red Bull at £1.35 – almost a pound more – and while we sell much more of the 39p stuff, a lot of people just prefer the Red Bull.” It’s also worth considering where additional incremental sales can be generated,

whether it’s focusing on snacks to go with the hydration or protein options to cater for sportier customers. “With 98% of protein drink consumers also buying sports and energy drinks, stocking sports drinks provides a great opportunity to drive crosscategory purchases. The protein sector continues to be an important part of consumers’ functional drinks repertoire,” says Adrian Hipkiss, marketing and international business director at Boost Drinks. “Interestingly, protein shake drinkers consume 9.1 units per month, higher than energy, sports or coffee, therefore retailers should capitalise on this by citing key brands like Boost Protein alongside sports and energy to increase sales and maximise profits.”

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Jeet Bansi, Meon Valley Londis, Stratford-upon-Avon, Warwickshire

STOCK UP TODAY! #CHOOSENOW

“WE sell a lot of water in the hot weather, but there’s also been an uptake in sports drinks. They provide instant refreshment and hydration. We have a gym next to us so that brings a lot of demand as well. “The Lucozade Sports and our Euro Shopper sports drinks – which are price-marked at 50p – both sell well. It’s an even split, really. We sell Monster Hydro and Boost drinks as well. If there’s a new flavour, we make sure we highlight it and promote. Anything new will sell, but we always ask ‘is this the right price point to fill a gap?’. “We have builders coming in who want two or three drinks to stay hydrated and we’ll get people going to the gym who want to take two bottles. As a result, we have multipacks on sale as well. It’s a no-brainer, really.”

betterRetailing.com

CATEGORY ADVICE INDUSTRY CLOSE-UP

BOOST TURNS 20 WITH NEW LAUNCHES AND INITIATIVES

10-23 AUGUST 2021 betterRetailing.com

BOOST MARKS 20 YEARS

1 2

Choose now, change lives. Boost’s ‘Choose now, change lives’ campaign will invest a £20,000 fund (£10,000 in Northern Ireland) in community organisations as part of its Corporate Social Responsibility (CSR) efforts. There will be three rounds of winners. Mango launch. The supplier expanded its 250ml energy can range with a new Mango flavour, available in a 59p price-marked can. Mango is one of the fastest-growing flavours in sports and energy drinks.

As the independent-only energy drink brand marks a major anniversary, founder and managing director SIMON GRAY and marketing director ADRIAN HIPKISS outline how it wants to help retailers

LOOKING FOR THE BEST BOOST’s Local Legends campaign will shortlist 20 independent retailers based on the impact they have had in their local communities. Entries are encouraged from retailers and community members on their behalf. These retailers will be judged later this year by a panel of judges that includes senior Boost stakeholders and Jason Birks, NFRN deputy vice president. The winners will be selected at a gala Platinum Party in-person dinner and awards ceremony in Lon-

don in November, with first place taking home £20,000. Second- and third-placed retailers will take home £2,000 and £1,000, while the remaining 17 retailers will also receive prizes. Adrian Hipkiss says the money is for the winners to invest as they see fit: “It’s to really invest back into their business. That could be anything from a vehicle to a store makeover and any systems or anything they see fit to make a difference to their business.”

FEWER, BIGGER, BETTER BOOST has a ‘fewer, bigger, better’ approach to its ranging that suits independent stores with limited display capacity, especially in a highly congested category like energy drinks. Rather than inundate retailers and customers with new launches, the supplier takes a measured approach that considers trends and how individual launches can benefit from them. Through its launch of Caffe Latte, Caramel Latte and Double Espresso ready-todrink (RTD) coffee drinks,

Boost has three flavours that represent 70% of the category’s volume. It is now the third-fastest-growing brand in RTD coffee. The launch of Boost Mango is based on more than a third of shoppers saying they make their energy drink purchase based on flavour alone, with mango flavours currently growing at 22% year on year in volume sales. These focused launches that get the supplier’s full attention mean retailers can have confidence in stocking them.

3 4 5

Caramel Latte launch. Following on from its Caffe Latte and Double Espresso launches in 2020, Boost built on its RTD coffee range with Caramel Latte, with the flavour being the fastest-growing in iced coffee. Wholesale support. Boost is giving platinum certificates and gift hampers to in-depot teams at its wholesale partners to thank them for their continued support, alongside its Local Legends campaign for retailers. Turnover targets. Thanks to its new product launches and brokerage deal with Rio Drinks, Boost is estimated to hit £50m in turnover in 2021. Previous turnover milestones were £15m in 2012, and £30m in 2018.

TOP THREE PRODUCTS

1 Boost Original 250ml First launched in 2007, a year before Boost won the Yorkshire Evening Post’s Small Business of the Year Award, the 250ml can (often price-marked) has become synonymous with the brand.

2 Boost Original 1l The original Boost format, launched in 2001 in PET bottles. The 1l bottle is still popular for take-home occasions, which have risen since the pandemic. This isn’t expected to slow down now restrictions have ended.

3 Boost Sport Orange Launched in 2007, Boost Orange Sport was the supplier’s first attempt at branching out beyond energy into the sports drinks segment, and remains a top-selling flavour.

To find out more, contact Boost UK by visiting boostdrinks.com/contact-us or calling 0113 240 3666

CATEGORY ADVICE BACK TO SCHOOL

10-23 AUGUST 2021 betterRetailing.com

GROWING SCHOOL SALES With the return of school looking more similar to 2019 than 2020, TOM GOCKELENKOZLOWSKI explores what retailers can do to boost sales ahead of term starting

A RETURN TO NORMAL? TO put things simply, the return to school is a hugely important time of year for the retail industry. “Back to school is the third biggest retail period in the year after Christmas and Black Friday, and worth more than £1.16bn, according to Mintel,” says Jeremy Gilboy, founder of St Pierre Groupe. With the bakery firm producing two sandwich-friendly loaves – Baker Street Sliced

White Loaf and Sliced Brown Loaf – it is understandable that Gilboy wants stores to prepare for the back-to-school opportunity. Yet, as we shall see, back to school provides many more opportunities than this. What are the trends and opportunities your business should focus on in 2021? The pandemic saw more children stay at home and some-

thing of a crash for demand of lunch-box-ready snacks. That’s now changing. “The easing of lockdown has seen the number of consumption occasions rise dramatically, with Maryland Minis and Jammie Dodgers Minis placed to meet consumer needs for a permissible treat on the go, in the car, after school sports and leisure activities,” Kate Needham, marketing di-

rector at Burton’s Biscuit Company says. Mini formats, such as these, offer both portion control and calorie-limited options that mean they can be included in lunch boxes. Through multipack offers, retailers can make things even easier for parents. The KP Snacks portfolio, for example, now includes 32 products that are 100 calories or fewer per pack in-

cluding Pom-Bear, Hula Hoops Puft, Skips, Popchips and Space Raiders. “Tapping into the demand for bagged snacks will be essential for retailers, given that two in five kids’ lunch boxes contain a bagged snack,” says Matt Collins, trading director at KP Snacks.

Kellogg's Back to School Advert Retail Express 260x339mm Jun 21.pdf

23/06/2021

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CATEGORY ADVICE BACK TO SCHOOL

10-23 AUGUST 2021 betterRetailing.com

SUPPLIER

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Gill Riley, marketing director, Quorn Foods “REDUCING meat in our diets is one of the best and easiest ways that we can all help protect the environment. By engaging children in meat-free at mealtimes now, they can develop more mindful eating habits and carry this into their adult years, playing a big part in the change our planet needs. “With our ‘Helping the planet one bite at a time’ campaign, Quorn is investing heavily throughout 2021 to show families that switching to Quorn is an easy and delicious change we can all make, that comes with huge benefits to people and the planet alike.”

HEALTHIER CHOICES AS shoppers return to the daily ritual of preparing lunch boxes, ensuring they are as healthy as possible is a priority for parents and schools. According to Bel UK – the firm behind both Babybel and The Laughing Cow – 73% of consumers see cheese as an easy way to get protein. Add to this the fact that 29% of convenience store shoppers are now eating more healthily and Bel UK sees back to school as a great opportunity for increasing sales of healthier snacks. “Catering to shoppers’ increasing interest in healthy, portion-controlled formats, delivering sources of protein and appealing to parents and children, Babybel and The Laughing Cow [are] naturally rich protein-based snacks

that offer a good source of calcium” says Emily Galazka, senior brand manager for Babybel & The Laughing Cow at Bel UK. One category that has long offered health benefits to young consumers – and therefore gained popularity among parents – is milkbased drinks, and retailers should ensure they are promoting them as such. “Yazoo Kids is the fastest growing no-added-sugar milk drink on the market,” says Dan Chesbrough, business unit controller for grocery at FrieslandCampina. Yazoo’s Strawberry and

Banana no-added-sugar contains only 96 calories, making it the only flavoured milk drink to meet the Change4Life recommendation of two snacks with a maximum of 100 calories a day.

DINNER OPTIONS LUNCH isn’t the only mealtime opportunity for convenience retailers to capitalise on. As life returns to term-time normality, the pressure to provide quick, tasty and nutritious dinnertimes once again grows, and the easier things are for parents the better. “Back to school is a busy time for every family,” says Gill Riley, marketing director at Quorn Foods. “That’s why we’re advising retailers to stock up on our bestselling frozen products including Quorn Crispy Nuggets, Mince and Sausages” Like Quorn, Birds Eye offers products for the freezer – an

area of the store that has seen something of a renaissance in recent years. “With consumption of frozen food on the rise, people are no longer just filling their freezers to have ‘emergency’ options to hand – consumers have re-found their love for the ease, nutritional and high quality that frozen meals offer,” says Joss Bamber, commercial manager for Birds Eye at Nomad Foods. Birds Eye Chicken Dippers saw growth of 46% last year, providing clear evidence of the popularity of these convenient options among parents.

CATEGORY ADVICE BACK TO SCHOOL

10-23 AUGUST 2021 betterRetailing.com

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Jeremy Gilboy, founder, St Pierre Groupe (Baker Street) “PARENTS will be looking for lunch-box foods that are convenient, versatile and will keep their children satisfied throughout the day, such as ingredients for tasty sandwiches. Retailers should therefore stock products that meet these criteria, as well as capitalising on consumer trends, like minimising food waste. “More than ever, shoppers are actively seeking out longer-life bakery products and brands, such as Baker Street. Cleverly packed to be fresher for longer, Baker Street guarantees a minimum life of 35 days from delivery to depot to help ensure on-shelf availability and reduce the risk of in-store wastage for retailers.”

top tips

AFTER-SCHOOL SALES OF course, while concerned parents may make up the bulk of the back-to-school consumers, children will also be venturing into stores on their way home. Chris Smith, at Hancocks, says supplying “pocket friendly treats on the way home from school” is one of the key op-

portunities for retailers as schools return in September. “We have a wide range of tempting sweet treats including the popular Sour Punch from our US confectionery range,” he says. Sour flavours have become a perennial favourite among school-age consumers but

Smith says that it is a market which continues to grow “New to our American range is Warheads Sour Ooze Chewz Theatre Box. These are chewy treats filled with a sour, oozy candy. Flavours include mango, strawberry, green apple, black cherry, watermelon and blue raspberry,” he says.

For manufacturers and retailers looking to win at lunchtime, category management is key, says Matt Collins, trading director at KP Snacks Cross-merchandising Activate lunch-box occasions and maximise singles sales by sitting commonly purchased products, such as soft drinks and crisps, together. Effective marketing Capitalise on marketing campaigns run by brands by stocking the lines that are benefiting from high-profile TV or other advertising exposure. Great displays Make use of brand PoS and other collateral to maximise impact and inspire shoppers in store. Clear pricing Give shoppers great value by using PMPs and promotional offers, sited in prominent locations in-store to maximise sales. Top products Stock the bestsellers your customers are seeking and use well-known brands to deliver strong shopper appeal.

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Joss Bamber, commercial manager, Birds Eye “AS children make their way back to school, shoppers are largely looking for convenient mid-week options that cater to a number of family members quickly and easily. “Our advice to retailers is to always prioritise stocking a core range that shoppers know and love to ensure repeat purchases within the category, but if space permits, retailers should also look to stock items that will drive those incremental sales. “While shoppers are excited to try new and exciting ranges, there is still clear value in a strong core line that the whole family will enjoy.”

® Reg, Trademark of Société des Produits Nestlé S.A. SHREDDED WHEAT is low in saturated fat. Reducing intakes of saturated fat contributes to maintaining normal blood cholesterol levels. It’s important to have a varied, balanced diet and healthy lifestyle.

CATEGORY ADVICE TOBACCO

10-23 AUGUST 2021 betterRetailing.com

CAPITALISE ON TOBACCO Tobacco is a fast-moving category that is affected by multiple rules and regulations. TAMARA BIRCH explores the areas in growth and the importance of training

SUPPLIER

MEETING SHOPPER NEEDS THE UK tobacco market is worth £2bn and remains heavily price driven, according to Duncan Cunningham, UK corporate affairs director at Imperial Tobacco & Blu. “While many smokers may be experimenting with the nicotine products available across different segments, shopper demand for value continues to dominate tobacco buying habits,” he says. To cater for the shift to value lines, retailers should be well-equipped with a strong product range cover-

ing multiple prices. This is so customers who want to trade up to premium brands can do so. Ross Hennessy, sales vice president at JTI UK, echoes Cunningham and says: “Existing adult smokers continue to seek good-quality tobacco at an affordable price – including within the roll-your-own (RYO) category.” In the RYO category, value RYO is the leading sector with a 50.2% share. This provides an opportunity for retailers to drive repeat custom by ensuring they stock a selection of

lower-priced RYO tobacco, such as Sterling Rolling Tobacco. But Cunningham expects customers to adopt a dual smoker course between RYO and factory-made cigarettes (FMG). “A trend developing is a move towards adult smokers buying different RYO and FMG to suit different occasions. Figures show a quarter of consumers are now dual smokers,” he says. For Andrew Dunning, of Stanwix News in Carlisle, however, volume sales aren’t what they used to be. “The

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support is still there through the manufacturer, but the category costs a lot and there isn’t the same volume of people buying it and there’s no loyalty.” In cigars, suppliers are reporting trends towards medium and large cigars. “The medium/large segment is enjoying a renaissance, growing by 17.4% in volume and 23.4% in value versus the same time last year,” says Alastair Williams, country director at Scandinavian Tobacco Group UK.

Duncan Cunningham, UK corporate affairs director, Imperial Tobacco & Blu

“MANUFACTURERS and retailers have a responsibility to proactively prevent underage sales and support youth access prevention measures. As part of this, retailers must implement and demonstrate an ageverification policy and process is in place and make sure that nicotine products are only marketed to and used by adults. With this in mind, we encourage retailers and their staff to familiarise themselves with Challenge 25 policies to ensure age verification on all tobacco- and vape-related sales.”

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CATEGORY ADVICE TOBACCO

10-23 AUGUST 2021 betterRetailing.com

FACTOR IN TOBACCO ACCESSORIES TOBACCO accessories are often bought alongside RYO tobacco, with the category now worth more than £314m. What’s more, unlike the rest of the category, tobacco accessories can be placed in the open for consumers to view. The sub-category also wasn’t impacted by the menthol ban. Gavin Anderson, head of sales at Republic Technologies, says: “There has been a significant number of consumers looking for flavour alternatives to menthol cigarettes and a raft of tobacco-related new products has hit the market to help retailers cater to this demand.” For example, Republic Technologies launched Swan Fresh Burst Crushball filters almost a year ago, while Imperial Tobacco launched Rizla flavour cards. To capitalise on the demand

for menthol alternatives, make sure to offer filters and papers and maintain availability. “To tap into this trend and take advantage of the incremental sales on offer, retailers should make sure they’re fully stocked at all times with filters, papers, lights and other flavour-related innovations like Rizla Flavour Cards and Rizla Polar Blast Crushball filters, to cater for the rising number of consumers buying into the RYO segment,” says Imperial Tobacco & Blu’s Duncan Cunningham. Knowing what to stock comes from understanding what your customers need. Take note or use sales data about what’s regularly bought, ensuring you maintain sales. Also, review your range and find out what you’re missing. Do you have a menthol alternative? Do you

have more than one option of papers and filters? Do you have enough lighters in stock? If you don’t, research what products are available and utilise tobacco rep visits to get the stock you need. Also, make sure they’re on your next delivery order and consider ordering slightly more to avoid low stock in future. Environmental concerns are also featuring in the tobacco accessories market, according to Anderson. “There’s increasing demand across all categories for more natural products, reduced packaging and removal of single-use plastics. “This has led to a surge in demand for category-boost products, such as OCB Virgin Slim & Tips and OCB Organic Hemp Slim & Tips, which are unbleached papers and made using OCB natural gum,” he says.

DON’T FORGET ABOUT CIGARS CIGARS is a category that hasn’t been as heavily impacted by legislation and can help your gantry stand out. To capitalise on the category, STG’s Alastair Williams recommends ensuring retailers stock the right brands to meet consumer demand. “Don’t forget miniatures, which are responsible for

THE IMPORTANCE OF STAFF TRAINING AS tobacco is heavily impacted by legislation, staff training is vital. Make sure they are aware of the range you carry in store and know enough about the product that they’ll feel comfortable discussing them for any customers who ask. Most shoppers are brand loyal, and it can be daunting when customers are forced to choose another product, so in addition to ensuring availability, make sure staff are

clued up. If they are, it can be a good way of helping to retain customers. “Talking to your customers is key, but particularly with your tobacco customers, who may well be the most loyal you have so it makes sense to treat them accordingly,” says STG’s Alastair Williams. Imperial’s Duncan Cunningham says: “Customers could walk out due to their product being out of stock, and simply not re-

turn, especially if they do find it in stock elsewhere. “Make sure to maintain availability and staff are aware of what products are stocked in store and where they’re positioned in the gantry at the bare minimum.” Ian Howell, JTI’s fiscal & regulatory affairs manager, echoes this and says: “Ensuring that all staff are well trained to retail responsibly can be challenging, especially

for smaller, independent retailers who often don’t have the resources or time to provide the same level of staff training that larger stores do.” JTI offers a youth access prevention scheme, IDentify, which aims to reduce the number of convenience stores ‘at risk’ of selling tobacco and vaping products to minors. The programme uses test purchases to check whether retailers are following Challenge 25.

nearly three quarters of all cigars sales and are still very much the engine room of the category. “It’s more important to stock the right range rather than a broad range as the top 10 cigar brands account for nearly 90% of sales. We recommend retailers stock cigars on the middle shelf where they are visible and more likely to be purchased by adult smokers who can see them.” Cigarillos are still relatively new to the market, but it’s a market now worth circa £6m a month. JTI UK’s Ross Hennessy says: “Retailers should stock up on products, such as Sterling Dual Capsule Leaf Wrapped, which has a 92.5% share of the UK cigarillo market.”

STG also launched its own cigarillo product at the beginning of last year, which contains a peppermint click filter in a convenient pack of 10. The product itself contains a blend of Virginia tobacco and a light real leaf Ecuadorian wrapper to deliver a smooth taste. Similar to cigars, cigarillos aren’t bound by tobacco legislation so make sure they’re visible when you open the gantry doors and those buying cigarettes and RYO tobacco can see them. What’s more, for Anita Nye, of Premier Eldred Drive Stores in Orpington, Kent, cigarillos are proving a big seller. “We’re selling more and more. Cigarillos sell well because shoppers can buy it as a menthol option.”

PAID FEATURE GROW YOUR SALES

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In partnership with

CAPITALISE ON TOBACCO AND NEXT-GEN BAT UK’s B2B Manager, Adrian Del Popolo talks to RETAIL EXPRESS about what’s trending in tobacco and next-gen products and how retailers can make the most of both categories

WHAT’S TO KNOW ABOUT TOBACCO? TOBACCO is on a long-term declining trend and it’s extremely important for retailers to tap into new growth opportunities in the adult nicotine consumer market. One of the biggest opportunities is the rapid growth of new categories replacing traditional tobacco consumption. Vype/Vuse is the leading closed system vape product and is seeing continued rapid growth. Another interesting new category

is tobacco-free oral nicotine pouches, in which Velo is the fastestgrowing brand in the UK market. It’s worth noting, though, that in the more traditional segments of the market, cigarettes at the lowest price points are gaining share, like Rothmans (RRP £9.50). Retailers should also make sure they maintain good stock levels for their customers.

RETAIL RESPONSIBLY YOUTH access prevention is paramount to retailing responsibly. Retailers need to be sure they only sell to people aged 18 and over. BAT UK’s youth access prevention programme, Verify, is designed to raise awareness of youth access prevention among independent retailers. We want to ensure none of our products are sold to people under 18. It’s fundamental to our strategy. Our communication includes educational material on our new B2B platform, in stores and on our websites to remind retailers of the programme about the importance of the youth access prevention message. Staff training is also vital in the vaping and nicotine pouch categories, too. Staff should be trained across these different categories as more adult nicotine consumers are moving towards vaping and closed systems. These customers will go elsewhere if they don’t find the brand they are looking for, so it’s vital to keep up with the full range of products and make sure they’re available. We also offer Verify training and PoS to reinforce the importance of youth access prevention.

To find out more about BAT UK’s display options or how they can help you in store, contact vapermarket.co.uk or your local BAT sales representative

SUPPLIER SUPPORT IS KEY OUR new B2B platform, My BAT Rewards, is the go-to place for retailers to find the essential information on all BAT UK products, including Vype/Vuse and Velo. On top of that, our new expanded field force means we have more sales representatives nationwide to help answer retailers’ questions. Retailers should also make sure they’re stocking the right lines, like Pall Mall. BAT UK recently added two lines to the Pall Mall range: Pall Mall Shift Kingsize and Pall Mall Shift Blue Kingsize. Our research has given us valuable insight into how we innovate a brand known for pushing the boundaries for adult nicotine consumers. Pall Mall was the first capsule and double capsule product in the UK and to push our innovation even further, we’re now offering a demi-slim format in the low segment.

SUPPLIER

VIEW

Adrian Del Popolo, B2B Manager, BAT UK “SINCE the menthol ban, we’ve seen a reduction in tobacco products in the range overall, so retailers need to ensure they make the most of their in-store space. The menthol ban has also led to an increase in menthol e-liquid sales as adult nicotine consumers are keen to keep the menthol taste. Independent retailers can benefit from the growth in vaping and BAT UK is here to help. Our state-of-the-art gantries allow retailers to combine Vype/Vuse closed systems and BAT UK’s modern oral product, Velo, together in a controlled, ordered and impactful display.”

Nicotine products are for over 18s only Ensure VERIFY is visible in your shop Complete VERIFY online training to learn about your responsibilities

What is VERIFY? VERIFY provides retailers with display materials, support and training on how to avoid selling tobacco, vapour and oral nicotine products to under 18s and ensure compliance with the law.

www.vapermarket.co.uk/verify

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*Based on a retailer buying at the current wholesale selling price and selling at RRP as of 09/04/2021. You are, of course, at all times free to sell JTI’s products at whatever price you choose. **IRi Market Place, Volume Share, Total RYO/MYO, Total UK, over the last 12 months to March 2021 (based on slope calculation)

cider

CATEGORY ADVICE TOBACCO

10-23 AUGUST 2021 betterRetailing.com

WHERE CAN YOU GET SUPPORT? MASTERING the tobacco category can seem like a minefield, so knowing where you can go for support is key. Imperial Tobacco, for example, has its Ignite app, which allows retailers to keep up to date with the latest news, information, and training opportunities. “It includes a wide range of tools and advice,

including incentive articles, downloadable PoS, product information and top tips on how to increase sales in store,” says Cunningham. JTI recommends retailers make the most of their dedicated sales force, JTI sales representatives and their retailer website, JTIAdvance.co.uk. JTI’s Ross Hennessy, says:

“JTIAdvance.co.uk provides retailers with key category insights, news on product developments, and up-to-date industry and legislative information. “JTI’s extensive UK sales force can also provide expertise on the latest trends and sales data to help retailers maximise the profit opportunity.” Similarly to JTI, BAT has a

youth access prevention programme, Verify, designed to raise awareness of youth access prevention among independent retailers. For information and support on next-gen products, Phillip Morris Limited (PML) has its Digital Trade Engagement platform. “Accessible to registered retailers, the platform offers

tools, resources and new support services that will help retailers get the most out of stock Iqos and Heets,” says Kate O’Dowd, head of commercial planning UK & Ireland at PML.

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Adrian Del Popolo, B2B manager, BAT UK “WE’ve seen a reduction in tobacco products in the range overall since the menthol ban, so retailers need to ensure they make the most of their space in-store. The menthol ban also led to an increase in menthol e-liquid sales as adult nicotine consumers are keen to keep the menthol taste. Independent retailers can benefit from the growth in vaping and BAT UK is here to help. Our stateof-the-art gantries allow retailers to combine Vype/Vuse closed systems and BAT UK’s modern oral product, Velo, together in a controlled, ordered, and impactful display. Contact us at vapermarket.co.uk for more information.”

30g RRP†

£11.95 For or Tobacco Traders Only. *Based on ITUK RRP as at 3rd March 2021. **For promotional dates, contact your local supplier. Based on a retailerr buying at wholesale le pri price and selling at RRP from Aprril 2021. †RRP: For or the avoidance of doubt, retailers are free at all times to determine the selling price of their products.

SEE YOUR TOBACCO SALES SOAR WITH EMBASSY SIGNATURE WITH DEMAND FOR VALUE DRIVING TOBACCO SALES, IMPERIAL TOBACCO CAN HELP YOU TAP INTO THE TREND WITH ITS NEW EMBASSY SIGNATURE RANGE. EVERYTHING IS PREMIUM EXCEPT THE PRICE THE UK TOBACCO MARKET IS WORTH

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FACTORY MADE CIGARETTES (FMC) HAVE A MARKET SHARE OF

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THE SUB-ECONOMY FMC SECTOR IS BOOMING Shopper demand for value is shaping the tobacco market and Embassy Signature taps into this trend by offering premium features at a great price. EMBASSY SIGNATURE TAPS INTO THE VALUE TREND Designed with premium features at a competitive price, the range is made using the finest Virginia tobaccos to give smokers a satisfying experience. STOCKING THE RIGHT PRODUCTS IS KEY Make sure staff know where products are on the gantry so they’re easy to find. This will also help you monitor stock levels and avoid running out. EDUCATION IS CRUCIAL If you and your staff know the products well, you can better advise your customers. Strong knowledge will pay off massively in repeat visits and more sales.

For Tobacco Traders Only. i Based on RRP as at July 2021 | ii FMC & RYO, ITUK Estimates excluding duty free and travel retail, FY20 | iii ITUK Estimates Oct 20 - Mar 21 *RRP: For the avoidance of doubt, retailers are free at all times to determine the selling prices of their products.

PER PACK OF 20S

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GOLD Embassy Signature Gold is made using the finest Virginia tobaccos wrapped in high quality paper to give smokers a premium experience. Available in packs of 20s and packs of 100s.

SILVER Embassy Signature Silver benefits from special reduced smoke smell paper, designed to reduce the linger of smoke smell on clothes and fingers. Available in packs of 20s.

GOLD SUPERKINGS Embassy Signature Gold Superkings are ideal for down traders and switchers looking for premium features at a value price point. Available in packs of 20s.

NEW CRUSH Embassy Signature New Crush features the new ‘fresh protect’ resealable foil, as well as filter tip technology to deliver a cooling sensation. When coupled with flavour cards, it is one of the closest menthol alternatives on the market. Available in packs of 20s and packs of 100s.

CATEGORY ADVICE TOBACCO RETAILER

VIEW

Anita Nye, Premier Eldred Drive Stores, Orpington, Kent

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“OUR cigarette sales have remained steady, even when the packs of 20 were discontinued and the menthol ban came into effect. We’re just selling more and more. Not so much the premium brands, though. Sterling tobacco is a big one for us. “We stock Nordic Spirit and cigarette menthol papers continue to thrive. We stock vapes in our convenience store and our newsagents next door but vape sells better in the convenience store. We have glass unit out on the shop floor, which shows people and gives them a view. We have Nordic Spirit, Vuse and Velo in there.”

top tips Stock the top 10 tobacco and cigar lines It’s recommended to start your tobacco range with as broad a range as possible, but for those with smaller gantries, stocking the top 10 will help. Make sure to include a selection of RYO, FMG and cigars and cigarillos in your tobacco range. Use customer feedback and sales data Before overhauling your range, use your sales data to determine which are your best and worst sellers. This will help ensure you remove the slow sellers and allow you to try new products or lines you have yet to stock. Also, listen to customer feedback from those who regularly buy from you. Invest in staff training Staff training is imperative. Customers are more likely to go elsewhere if their brand isn’t available and are less likely to return. By ensuring staff are aware of the full range you stock and the prices, too, they’re more likely to feel confident talking about them. Carry out refresher training when you review your range, as well as Challenge 25. Use supplier platforms The majority of tobacco suppliers have tools available for retailers to utilise that includes the latest up-to-date news, downloadable PoS and training opportunities. Also, reach out to them about regular sales representative visits so you can get tailored advice. Know the law From plain packaging to track and trace, tobacco is heavily legislated. What’s more, Challenge 25 is one that you and your staff should be aware of. Create a folder for them to refer to about different legislation and run regular test purchases to ensure they’re following Challenge 25 consistently.

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ADVICE

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PREPARING YOUR CHRISTMAS ORDERS AND OFFERS The RETAIL EXPRESS team finds out what retailers are expecting for this Christmas and how they’re preparing

How are retailers planning for this Christmas? – Paul Thomas, One Stop Coity, Bridgend

Meten Lakhani, St Mary’s Supermarket, Southampton

“LAST Christmas, people weren’t going to each other’s houses, but we sold more rather than less. It was much better than I thought it was going to be. This year will be different again. I think people have a lot of making up to do after missing out last year. There will be a lot of parties and people going around to each other’s houses and seeing in the new year. Compared with last year, we’re expecting a massive rise in demand this year for alcohol, boxed confectionery, prosecco, wine, boxed beer, Quality Street and Celebrations. “We’ll order according to what’s on promotion in the catalogue that we’ve just received through the presell. The promotions are important because it’s hard to compete with the bigger supermarkets as they’re getting cheaper and cheaper, so our main focus is being well-stocked and providing great service, in store and online.”

Peter Bhadal, Londis Woodhouse Street, Leeds

“IT’s de�initely not too early to start planning for Christmas and putting orders in. We recently received our presell for Christmas and if I don’t �ill it in now it will affect our access to stock on an ad hoc basis later on when demand is higher. Booking in stock right now is essential. “We have a bit of a different situation in our store. I’m in a student area, so we’re not as busy around Christmas as other stores, and it isn’t our prime objective. But we have to prepare for the students coming back in January when it’s much harder to get stock in again. We can’t access the deals in January, so we have to stock up for Christmas in September and then hold it back until January, which is always quite dif�icult and frustrating. With the supply restrictions at the moment, it is quite worrying and I know that every retailer is in the same boat.”

David Sellers, owns three Nisa stores in Leeds, Sheffield and Hull

“We did all our Christmas presell three weeks ago. We do it through Nisa, and they give us good advice. It all comes under the same presell, and they let you know what’s going to be on promotion on certain periods, allowing you to look at the things you might want and get your preorders in. “We get more in for the Shef�ield store than for Hull because it’s a bigger store and we can get a bit more varied with the offerings to re�lect the customer base. Our Hull store has a bit more of a basic offer, but in Shef�ield people will buy more premium products even if it’s more expensive. Also, Christmas Eve is the biggest day for sales in Shef�ield but not in Hull. We’re not doing anything differently at the moment because things can change so quickly. We’ll make adjustments. It’s not the end of the world if you don’t get presell, but it just puts you at ease.”

In the next issue, the Retail Express team looks at the delivery-driver crisis and how retailers are reacting to it. If you have any problems you’d like us to explore, email charles.whitting@newtrade.co.uk.