Retail Express - 17 November 2020 (2B)

IS THERE LIFE ON MARS? • Independent stores claim missing Mars Wrigley reps left them thousands of pounds out of pocket in rewards programme pay

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17-30 NOVEMBER 2020 STRICTLY FOR TRADE USERS ONLY

TOBACCO

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COVID-19 TENANT PROTECTION

UTILITY SCAMMING CONCERN

TOP PRODUCTS 2020

Financial expert stresses urgency of negotiating rent with landlords during lockdown

Retailers report dramatic rise in fraudsters trying to cheat them out of money

Find out the lines generating top sales in key categories this year

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19/10/2020 14:04

Holidays are Coming

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Coca-Cola Zero Sugar 1.75L PMP

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Diet Coke 1.75L PMP

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*Includes Large PET bottles, multi-pack cans and multi-pack glass bottles ** Nielsen (Home Channel) Total Coverage Value MAT w/e 13.06.20 © 2020 The Coca-Cola Company. All rights reserved. COCA-COLA is a registered trade mark of The Coca-Cola Company.

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05/11/2020 12:45

FORECOURT FOCUS Three retailers reveal how lockdown two has affected their forecourts, and how they’re responding P20

17-30 NOVEMBER 2020 STRICTLY FOR TRADE USERS ONLY

IS THERE LIFE ON MARS?

• Independent stores claim missing Mars Wrigley reps left them thousands of pounds out of pocket in rewards programme pay • Choc giant defends treatment of retailers as meeting its terms and conditions P3 COVID-19 TENANT PROTECTION

UTILITY SCAMMING CONCERN

TOP PRODUCTS 2020

Financial expert stresses urgency of negotiating rent with landlords during lockdown

Retailers report dramatic rise in fraudsters trying to cheat them out of money

Find out the lines generating top sales in key categories this year

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our say

Megan Humphrey, editor

Suppliers must ensure independents are valued INDEPENDENT retailers have been dealt a few blows this year and I think they deserve better.

Take Warburton’s, for example. During the first lockdown due to the coronavirus pandemic – which was one of the most stressful times in recent history – it decided to pledge its loyalty to supermarkets and cut deliveries to independent stores.

More recently, parcel provider UPS slashed the commission retailers receive on returned Amazon parcels, following a new partnership.

What’s more, once the parcels are collected, the retailer has to scan, repackage, segment and store them for several days, while dealing with an enhanced coronavirus risk.

In wake of the news, retailers either dropped the services, or stopped stocking the products – and I don’t blame them.

Why should retailers, who go above and beyond to serve their community, be treated as second-class citizens? There is no WHY SHOULD reason, or excuse, for suppliers RETAILERS BE to behave in this manner.

However, it’s not all doom TREATED AS and gloom. Morrisons offered a SECOND-CLASS beacon of hope last week, after it revealed it was eyeing up inde- CITIZENS? pendents for a rollout of Safeway own-label products.

It joins the likes of Sainsbury’s in its tie-up with Simply Fresh, and Tesco with Jack’s.

I urge all suppliers to take note and recognise the value independent stores offer them as we round off an extremely turbulent year.

The five biggest stories this fortnight 01

‘New lockdown creates pressure to negotiate rent’

MEGAN HUMPHREY FINANCIAL expert Barry Frost has urged retailers who haven’t already contacted their landlord to negotiate rent “to do it now”.

The comments come as government protection preventing landlords from evicting tenants during the pandemic comes to a close at the end of the year.

Commercial Plus owner Frost told Retail Express there is reason for retailers to remain optimistic. “Landlords are starting to get it because they need to make sure tenants are still there in the spring next year,” he said.

“The second national lockdown in England has added an element of seriousness to the matter.

“If you haven’t already contacted your landlord to negotiate rent during this crisis, then you need to do it now.”

Frost reinforced the need for struggling stores to make this a priority if they want their business to survive.

“This needs to be a priority,” he stressed. “Don’t be afraid to approach your landlord, and make sure that you are taking any government funding that

is made available to you.”

He added: “Things are going to get harder before they get easier. From a government perspective businesses are going to have to defer their rent.

“It’s vital landlords and tenants work together to get through the other side.”

If you need advice on how to negotiate your rent, call Barry Frost for free on 01244 659101

TO FIND OUT THE LATEST SUPPLIER CAUSING FRUSTRATION AMONG RETAILERS, TURN TO PAGE THREE @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 3357 Features editor Daryl Worthington @DarylNewtrade 020 7689 3390 Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361 Editor in chief (maternity cover) Tan Parsons 020 7689 3353 Production editor Ryan Cooper 020 7689 3354 Sub editor Jim Findlay 020 7689 3373 Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380

Editor – news Jack Courtez @JackCourtez 020 7689 3371 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355 News reporter Kate Plummer @NewtradeKate 020 7689 3395 Production coordinator Nadeem Masood 020 7689 3368 Director of sales and marketing Matthew Oliver 020 7689 3367 Senior account director Charlotte Jesson 020 7689 3389 Senior account manager Natalie Reeve 020 7689 3372

Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379 Senior news reporter Alex Yau @AlexYau_ 020 7689 3358 Digital content editor Jody Porter 020 7689 3378

Retail Express is printed and distributed by News UK at Broxbourne and delivered to news retailers free by their newspaper wholesaler.

Published by: Newtrade Media Limited, 11 Angel Gate, City Road, London, EC1V 2SD; Phone: 020 7689 0600

Morrisons own label

INDEPENDENT retailers are to get access to Safeway own-label products as part of a new development in Morrisons’ wholesale strategy.

Several sources con�irmed the multiple is in contact with convenience store owners to discuss supplying own-label

and branded goods, including household items. Morrisons reps have already begun discretely approaching existing symbol retailers to outline terms of supply.

The supermarket said it can offer more than 15,000 lines.

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

03

Lockdown chances

CONVENIENCE stores have a second lockdown opportunity as supermarkets struggle to meet demand for home deliveries over Christmas.

Grocery analyst Bryan Roberts advised retailers to prepare their ranges early and stock wider and

affordable meal lines.

“There has been a real focus on the family-of-four dining occasion this year, rather than feasts,” he said. “If independents work on their ranging early, matched with a good price point, they will be able to bene�it.”

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

Account manager (new business) Jimli Barua 020 7689 3364 Sales support executive Charlotte Brady 020 7689 3382 Management accountant Abigayle Sylvane 020 7689 3383 Managing director Parin Gohil 020 7689 3375

Account manager Adelice Tatham 020 7689 3366

Subscribe online at newtrade.co.uk/our-products/ print/retail-express. 1 year subscription: UK £65; overseas (EU) £75; overseas (non-EU) £85

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46,191

Audit Bureau of Circulations July 2019 to June 2020 average net circulation per issue

Reproduction or transmission in part or whole of any item from Retail Express may only be undertaken with the prior written agreement of the Editor. Contributions are welcome and are included in part or whole at the sole discretion of the editor.

Newtrade Media Limited accepts no responsibility for submitted material. Every possible care is taken to ensure the accuracy of information. No warranty for goods or services described is implied.

04

Post Office ATMs

THE Post Of�ice (PO) is to save 1,400 of its 2,100-strong ATM estate through a deal to take over direct ownership of its machines.

PO banking director Martin Kearsley described the £16m plan as one of the largest

investments in free-to-use ATMs in “more than a decade”. The move follows the decision by operator Bank of Ireland to drop all 2,100 PO sites by the end of 2021.

One in three PO retailers will still lose their machine.

05

Tobacco shortages

ACTION is needed to update restrictions on wholesale tobacco stock levels to avoid shortages, according to the ACS and FWD. A joint letter claimed updates to regulations designed to stop stockpiling

ahead of duty increases were needed after the government scrapped its Autumn Budget.

The two groups said if new guidance wasn’t provided, distributors would be forced to “guess” stock allocations.

@retailexpress facebook.com/betterRetailing

17-30 NOVEMBER 2020 betterRetailing.com

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

Mars Wrigley fails to keep backdated rewards promise MEGAN HUMPHREY INDEPENDENT retailers claimed they are owed thousands of pounds in backdated rewards by Mars Wrigley, after reps failed to visit stores for its ‘Your Perfect Store’ initiative.

The scheme offers retailers a monthly £35 wholesaler voucher in exchange for stocking Mars’ chocolate brands and confectionery, once checked by a Mars rep.

However, retailers complained they were missing payments due to rep shortages, which had led the company to promise in 2018 that stores would receive “backdated vouchers when they were next visited by a rep”. Despite the promise, Mars had altered its terms and conditions the year before to give just one month’s worth of backdated rewards.

Despite ongoing compliance with the scheme, a number of retailers said the confectionery giant failed to keep its end of the bargain by not keeping up its scheduled visits, and then failing to backdate payments at all.

A retailer who wishes to remain anonymous told Retail Express they are owed a four-�igure sum from the manufacturer.

“There was an 18-month period where I didn’t see a rep once. I continued to adhere to the scheme, but they didn’t want anything

to do with backdating. It’s outrageous that they just went back on their word,” they said.

“I am still adhering to the scheme to ensure compliance, but it doesn’t take away that there was a time that I lost out.”

Jeetinder Singh, owner of Meon Vale Londis in Stratford-upon-Avon, added the refusal to acknowledge the rewards owed to retailers has left a “sour taste in his mouth”.

“It was in our best interests to make sure we had the right range to get the rewards,” he said. “One day the rep just stopped coming in, and so we stopped receiving the rewards.”

Those affected also stressed a dif�iculty in being able to contact Mars directly about the issue for a number of years.

Paresh Amin, owner of Newscentre in Basingstoke, claimed he was forced to contact the American head of�ice after receiving no response from the UK team for three years.

“Nobody got back to me, they didn’t make it easy for me to contact them,” he said. “I contacted Retail Express about the issue a few weeks back.”

In the last year, Mars has shifted the scheme to run from the Shopt app, but it still relies on rep visits to ensure compliance.

Singh stressed: “It’s �ine that things have moved to the Shopt app, but I am still

express yourself “OUR Christmas plans will evolve as being flexible seems to be the key in this environment. We saw huge demand during the last lockdown for stationery and greetings cards, both of which offer high margins, so we have boosted stock levels of Christmas cards. We won’t do hampers or gift bags, but we have plenty of Christmas confectionery and will prepare Christmas dinner ingredients such as sauces, stuffing mixes and frozen vegetables.”

Les Gilbert, Chard Newsagent, Somerset

owed rewards, and I’m really disappointed.”

Meten Lakhani, of St Mary’s Supermarket (Premier) in Southampton, said he is owed hundreds of pounds in rewards.

He explained: “I have been stitched up. If you are going to enter an agreement with retailers, Mars have to upkeep their side of the bargain.”

In response to the claims, a Mars Wrigley spokesperson said: “Our ‘Your Perfect Store’ initiative has bene�ited thousands of retailers up and down the country, and we are proud of the signi�icant support and �inancial commitment we have given to the channel.

“We have always believed that independent retailers are the backbone of our local communities and that’s why we continue to invest in the channel – including a raft of promotional exclusives.

“From tailored offers to in-person and digital sup-

the column where you can make your voice heard

03

GOOD WEEK MAGAZINES: The Radio Times is helping retailers with the “huge opportunity” of people spending more time at home through promotional material. Publishing director Zoe Helme said: “We’re investing heavily in TV advertising and social marketing to drive sales. I encourage retailers to stock the title in prominent areas of the store.”

PAYPOINT: Retailers are likely to be offered more in-store payment services following PayPoint’s acquisition of card merchant Handepay. PayPoint CEO Nick Wiles said: “Our acquisition will significantly increase our card payments capability and our customer base. This step refocuses PayPoint through cross-selling of services and leveraging the scale of the combined business.”

Handepay’s chief executive, Andy Peake, added: “I believe we’ve found the right home in PayPoint to take us to the next stage of our growth.”

BAD WEEK

port – via the Shopt app – we are committed to helping stores grow their sales and the overall confectionery category.

“We have and continue to deliver the ‘Your Perfect Store’ initiative in accordance with our terms and conditions, which are available on the Shopt app.

“We want to reassure the retailer community that we’ll be in touch with the retailers mentioned to listen to their concerns.”

Mars has also increased investment in promotional activity this year, in person and through digital channel exclusives.

This includes the impulse exclusive Twix Winter Spice and an extended price-marked pack range.

Mars asked retailers who have any queries to call its dedicated hotline on 01844 262517, open Monday to Friday, 9am to 5pm.

BUDGET: The government has cancelled the Autumn Budget due to the pandemic. Initially scheduled for November, the chancellor, Rishi Sunak, would have used the Budget to announce any taxation changes impacting retailers. The last Budget was held in March and, despite this cancellation, Sunak delivered his Winter Economy Plan in September.

TESCO: Independent retailers are struggling to compete on price with the multiple’s most recent Clubcard promotion, which offers members discounts on various core lines. In analysis by Retail Express’s sister title, RN, a basket of goods on the loyalty card scheme came out at 29.5% cheaper than Booker’s recommended retail pricing.

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

How has the pandemic affected your Christmas preparations?

“GREETINGS cards sales rocketed at the start of the Welsh lockdown because people didn’t know how long they wouldn’t be allowed to buy for. This resulted in panic buying, so we decided to stock more Christmas cards to prepare ourselves for more of the same trend.

We will also expand our home news delivery service after we saw an uplift in customers during the lockdown in recent weeks, too.”

Mark Dudden, Albany Post Office, Cardiff

“PLANNING for anything at the moment is difficult due to coronavirus, and Halloween was terrible this year compared to normal. But, for Christmas, we are looking at gift-pack suppliers to offer the perfect gift solutions for customers as other present shops will be closed during the national lockdown. We won’t go crazy with novelty lines, though, and we will reduce our selection box ranges, but we will have to see what is available as we are with Best-one.”

Nimesh Patel, Best-one Eldon Street, Preston

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

Mark Dudden

NEWS

04

17-30 NOVEMBER 2020 betterRetailing.com

Utility scammers target indies KATE PLUMMER INDEPENDENT retailers are worried about a rise in scam utility companies targeting them during the coronavirus crisis.

A number of store owners told Retail Express they are being called “constantly” by fake companies asking for their bank details.

Harj Gill, owner of Windmill Select & Save in Birming-

ham, said he receives at least four calls a day. “I get calls from fake energy companies and scam banks informing me there has been a purchase on my card,” he explained.

“It’s really annoying. I tend to just hang up on them now, to be honest.”

Gaurave Sood, from Neelam Post Office in Hillingdon, revealed he has been forced to block numbers in an attempt to tackle

the issue.

“I’ve received 13 calls before 10.30am on one day before,” he said. “I’ve had to buy two call blocking phones because they’ll never stop.”

However, Scottish retailer Abdul Qadar added the scammers are still finding ways to contact him even after he has blocked the respective numbers.

“They have started to call me on my mobile, as well

IT’S ANYTHING BUT AVERAGE

2020 BENCHMARKING IS NOW OPEN!

#IAA20

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

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

Steven Mahal, Arnold Premier Stores, Nottingham

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

as call from other mobile phones,” he said. “This makes it difficult to tell if it’s the scammers or not.”

Samantha Coldbeck, owner of Wharfedale Premier Convenience in Hull, said: “We have started telling them that our head office deals with utilities, and we find they hang up straight away.”

When asked by Retail Express how retailers can

protect themselves against fraudsters, the ACS advised anyone affected to contact Action Fraud.

Warn other retailers of a scam. Call Retail Express on 020 7689 3395

CCEP details DRS action COCA Cola European Partners (CCEP) has revealed it is fighting for penalties to discourage cross-border fraud taking place in the deposit return scheme (DRS).

CCEP outlined its brand plans during Scottish wholesaler CJ Lang & Son’s annual conference last week.

In addition, the supplier is also trying to ensure the deposit sits out of VAT for retailers, and that the scheme mirrors the well-designed Nordic model as closely as possible.

CHRISTMAS TOY SALES SUCCESS

AMRIT Singh, owner of Nisa Local High Heath in Walsall, has generated extra revenue after stocking Christmas-ready children’s toys.

He told Retail Express: “I started selling them after seeing parents panic-buying

Christmas presents. I sourced them from Costco. It’s working well because we’re catering to a need.” Singh has made £1,000 in revenue since selling toys.

Singh is selling Paw Patrol sets, and characters from Frozen and Disney.

Sainsbury’s openings SAINSBURY’S has revealed plans to double its convenience store openings to 20-to30 new sites a year.

Chief executive Simon Roberts announced the multiple is looking to add 110 convenience sites over the next three years by targeting “an-

chor towns in attractive underserved catchment”.

The move represents a pivot from its current urbanfocused estate. Under lockdown, 26 city sites closed and 11 never reopened. Sainsbury’s said 60 convenience sites will close or be sold.

The largest selling Soft Drinks brand

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PRODUCTS

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Terry’s Chocolate Xmas range PRIYANKA JETHWA TERRY’S Chocolate Orange has announced its 2021 festive line-up, including three limited-edition treats.

The limited-edition lines include an Orange White Ball (157g), Segsations Pouch (400g) and an Orange and Cranberry Tablet (90g).

The supplier said the Orange White Ball variety complements the existing Milk and Dark Balls, while the Segsations Pouch is designed for sharing.

The Orange & Cranberry bar “brings together two tastes of Christmas in one flavour”.

Andrew Freestone, commercial director at SHS

sales and marketing, said in terms of merchandising, consumers will purchase Terry’s Chocolate Orange as part of a planned shop and on impulse, therefore it’s important that retailers dual merchandise to attract the most sales.

He also suggested retailers stock a varied range of single-serve formats and sharing bags.

The rest of the range includes a Mini’s price-marked pack, Orange Tablet, Orange Dark Ball, Orange Milk Ball and an Orange Single bar.

In a year to April 2020, Terry’s Chocolate Orange Balls have grown in value by more than 15% in the confectionery category.

Weetabix On the Go launches £1 PMPs WEETABIX On the Go has introduced limited-edition £1 price-marked packs across its Strawberry, Chocolate, Vanilla and Banana flavours.

The bottles will be available from wholesalers such as Bestway and Blakemore until December, with plans to reintroduce them later in 2021.

Emma Varlow, general manager at Weetabix On the Go, said the brand has also introduced a 12-month field sales programme aiming to get retailers to restock the range and build distribution.

“The programme will offer a series of direct-to-store packages and wholesale vouchers, as well as providing in-store advice to grow

awareness of breakfast drinks,” she added.

RED Bull is encouraging retailers to stock up on multipacks of soft drinks this Christmas, with its multipacks trading 59% more during this period.

Sports and energy was the second-fastest-growing category during the festive period last year, with Red Bull delivering 30% of the growth.

The supplier said: “Christmas this year might look a little different, but shoppers are still reaching for Red Bull at home, with the brand accounting for a third of multipack sales during this period.”

Insights revealed retailers were missing out on sales of multipacks due to poor

availability, with 12% of shoppers saying they would buy them.

McCoy’s Muchos returns to TV KP Snacks is supporting its McCoy’s Muchos range with a new TV campaign, depicting a Mexican wrestling match.

The ad will run across Channel 4 and Dave until the end of this month, and will feature during the ad breaks

of Channel 4’s The Last Leg. With this latest campaign, KP Snacks aims to increase awareness of its McCoy’s Muchos range by partnering with channels that appeal to a “young and affluent” demographic.

Coca-Cola brings back Brioche Pasquier its festive packs teams up with Minions COCA-COLA European Partners is bringing back limited-edition Coca-Cola bottles across its Zero Sugar, Diet Coke and Original Taste varieties.

On sale now, the bottles feature a QR code that shoppers can scan to unlock content every day throughout this month and December.

The festive packs will be available across take-home formats including large bottles, multipacks of cans and glass bottles. With more soft drinks being consumed at home, sales of Coca-Cola sharing packs are up 20% in value across grocery and convenience.

The limited-edition design will be supported by the

return of the supplier’s ‘Holidays are coming’ TV ad, which will also span videoon-demand, cinema and outdoor advertising.

EHRMANNS has added a Chilean Cabernet Sauvignon to its Beefsteak Club brand.

Asado Edition features a black label and is designed to be paired with grilled meats and steaks traditionally associated with South

American cuisine.

It has fig and blackcurrant notes, an RRP of £8.99 and is aimed at the convenience sector.

It will be supported by a social media campaign.

Focus on multipacks, Asado Edition joins says Red Bull Ehrmanns’ range

BRIOCHE Pasquier is celebrating its partnership with Minions with an onpack promotion.

Characters including Bob, Stuart and Phil will be featured on the packaging on the brand’s Brioche Rolls and Brioche Rolls with Chocolate Chips.

Each pack contains a sticker or a card with a code that can be used online for a chance to win one of thousands of prizes.

In addition, every packet of Pitch Chocolate filled and Pitch Choc Chip products will contain a collectable character card featuring a different Minions character.

There are 10 characters to collect overall.

Pepsi Max refreshes Christmas in new ad BRITVIC is bringing Pepsi Max back on screens this season with its ‘Christmas refreshed’ campaign, encouraging people to refresh their old traditions, featuring UK hip hop artists Kamakaze and TrueMendous.

The outdoor artwork fea-

tures the artists’ lyrics from the advert, along with references ‘Time for a Christmas refresh’ and ‘Out with the old, taste the bold’.

It follows the brand’s pack redesign for its Cherry, Raspberry and Ginger flavours earlier this year.

17-30 NOVEMBER 2020 betterRetailing.com

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TRDP screens drive more sales PRIYANKA JETHWA CONVENIENCE stores �itted with The Retail Data Partnership’s (TRDP) MediaMaster Screen service have increased sales of promotional items by up to 41%.

The service enables retailers to advertise promotions from wholesalers, as well as running their own content, alongside the till at point of sale. TRDP can manage both of these services free of charge – retailers just need to send them details.

In a study of adverts placed over a 35-day period in 106 stores with 209 screens, average sales performance was £117.05 higher in stores that displayed

advertss on the MediaMaster screens than in stores of the same fascia that didn’t install the screens.

Budweiser 660ml proved to perform best, with average sales for MediaMaster stores during the promotional time frame being £65.47 through the 35-day period, compared to stores without the screen over the same period selling £38.49-worth of stock.

Confectionery also performed well, with sales of Cadbury Dairy Box seeing an average increase of £12.28 through the promotion period.

TRDP managing director Stephen Burnett said: “It is clear that retailers embrace technology when it provides instant, measurable results.”

KP Snacks gives Popchips a redesign KP SNACKS has reduced the packaging across its Popchips range alongside giving it a new design.

The new design features pictures of the ingredients and incorporates Popchips’ tagline, ‘Popped not fried’. It is designed to increase pur-

chasing intent by appealing to consumers from a design perspective.

The supplier has also reduced the size on the plastic layers across all formats, which represents an overall decrease in plastic of 10% annually.

The packaging reduction rolls out between now and January, and is part of KP Snacks’ ‘Packpromise’, which sees the company striving to use less packaging across its range, with the end goal of all its plastic �ilm packaging being recyclable by 2025.

Seabrook launches Loaded Fries CALBEE UK is expanding its range with restaurantinspired Seabrook Loaded Fries.

The snacks come in Cheese & Bacon and Chilli Heat �lavours, and were launched in response to lockdown closing down bars and restaurants.

The supplier said it aims to bring restaurant-inspired �lavours to people’s homes.

The snacks come in 80g £1 price-marked formats for convenience retailers.

Jon Wood, commercial director at Calbee UK, said: “We know from data that snacking will continue to perform well throughout this period as consumers are seeking products that are comforting and familiar, with many turning to trusted brands.”

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08

ACADEMY IN ACTION The Independent Achievers Academy is a learning and development programme that helps to increase sales and profits. Academy in Action shows how retailers like you are working with our partners to use the Academy’s advice.

We’re here to help.

Call 020 7689 0500 Name: Shop: Location: Size: Staff:

Thushy Subramaniam Sturry Road Premier & Post Office Canterbury 500sq ft Two full-time

PARTNER ADVICE

MARKETING TO CUSTOMERS In part seven of a 12-part series, the IAA and SUNTORY BEVERAGE & FOOD GB&I visit THUSHY SUBRAMANIAM in Canterbury to improve his marketing to customers MARKETING to customers is about promoting your store to attract new shoppers and encourage repeat visits. Retailers doing this well have an attractive store front that clearly highlights what they offer in store or have launched a loyalty scheme to drive footfall.

Sturry Road Premier & Post Office was run by the same retailer for 40 years before Thushy Subramaniam took over in 2019. In July, Thushy refurbished the store to drive footfall and his next step is to find the tools he needs to help him improve the way he markets the store to customers. How can the IAA and Suntory Beverage & Food GB&I help?

Want to see more?

For more on how to improve your store and to see more of Thushy’s shop, go to betterRetailing.com/Academy-in-Action

Marketing is key to driving footfall. By making these changes, I’m sure Thushy will see a rise in basket spend.

Craig Starling Business Development Manager Suntory Beverage & Food GB&I

YOUR ACTION PLAN 1 Walk your shop

This is designed to be used to help you think like a customer

2 Benchmark your shop

WHY I TAKE PART I’ve made a lot of changes to the business this year, such as undergoing a refit, and the next step for me was understanding how I could market my business effectively to shoppers and highlight our offering.

I’m positive that the action plan agreed by myself and Craig from Suntory Beverage & Food GB&I will help to improve my marketing techniques.

Use the checklist below, ticking all you see evidence of

Make local people want to use your shop Attract passers-by in store Communicate your offer to your target shoppers Use promotions and loyalty schemes to encourage spending

IAA ADVICE Making local people want to use your shop

Communicating your offer to your target shoppers

Promotions and loyalty schemes to encourage spending

Thushy benefits from good parking and has a Post Office fascia, but it’s not obvious he offers more than these services, so passersby don’t always stop. What can he do to communicate his offer to passers-by?

Thushy uses social media to promote new products, but he wants to use the platform to target a younger demographic from universities. How can he use social media to communicate his range to students?

Thushy places new products by the till area to create excitement, but some lines are hidden by screens and signage. Thushy wants to increase purchases of high-margin products, but how can he do this?

Craig says: “Thushy has a great space in front of the store for customers, but it’s not clear they can use it or that he’s a convenience store, so he could be missing out. In addition to his new fascia, Thushy can invest in different signage options to highlight the car park and that he offers more than post office services.”

Craig says: “Social media is a great tool to showcase new promotions, but it’s hard to measure its success. To engage with local students, Thushy could run an online-only promotion on an in-demand product, or work with suppliers to get involved with social media campaigns to drive excitement in store and online.”

Craig says: “Highlighting a new or niche product is a great way to engage customers and increase sales. Thushy has an established relationship with his shoppers, so they’ll listen to his recommendations.

By creating a label or sign to use in the till area, he ensures customers are always aware of these products.”

ACTION Investigate different signage options to better communicate your offering and attract passers-by.

ACTION Run exclusive online-only promotions to build engagement with younger customers nearby.

ACTION Create a sign to advertise and increase visibility of new and high-margin products to shoppers.

Plan for success and measure it

3 Pick one thing to improve Write it down, implement it this week and let us know how you get on using #IAA20

ATTRACT NEW CUSTOMERS Visit betterRetailing.com/IAA to up your marketing strategy and see how you can improve in 11 other categories.

Next time: Environmental Sustainability

17-30 NOVEMBER 2020 betterRetailing.com

09

LIGHT

SAVINGS Suntory Beverage & Food GB&I has teamed up with Energy Saving Trust and retailer Amit Patel to show how simple sustainability-focused changes to your store can reduce overheads and deliver real savings – making them truly #GoodForBusiness in every way.

Cadbury’s 2021 Easter focus revealed MONDELEZ International has announced its Easter 2021 line-up, starting with its impulse range, featuring a golden Creme Egg, Creme Egg mixed pack and Mini Eggs sharing tablet.

To mark the brand’s 50th anniversary, it will be introducing an in-store promotion from 26 December, where consumers will be encouraged to find a ‘Golden goobilee Creme Egg’ to be in with the chance of winning up to £5,000, with additional smaller cash prizes to be won.

The egg will be a standard Creme Egg coated in edible gold, with 30 allocated for independent convenience stores.

When a consumer finds a golden egg at their local

In our first visit, we identified some “quick fix” changes that could start to impact the sustainability credentials of Amit’s store. Now, we have started to look at some larger changes that can deliver real impact.

store, the retailer will also win a cash prize of £1,000.

Mondelez is also launching a mixed 10-pack made up of Cadbury Creme Eggs and Caramel Creme Eggs, RRP £6.11.

The golden egg campaign will be supported by digital and outdoor advertising, and the brand will be rolling out a celebratory retro pack design for Creme Egg to grab shoppers’ attention in store across a range of formats.

Meanwhile, Mini Eggs will be adding a tablet format to its range. The new 110g bar will be available in cases of 20 at an RRP of £1.49, and will be supported by a new suite of PoS material, as well as a modern pack redesign.

While for some stores, the pandemic might make it difficult to implement larger changes, for others its an ideal time. Amit altered the layout of his store to make it safer for his customers, so he was able to close parts of his store to quickly and easily change his lighting in store.

STORE PROFILE RETAILER Amit Patel STORE NAME Premier Town Street, Sandiacre STORE SIZE 900sq ft

AFTER

BEFORE

AFTER

INSTALLING NEW LED PANELLED LIGHTING COULD REDUCE HIS LIGHTING COSTS BY 50% - IN AMIT’S CASE, AROUND £265 – A YEAR

Country Choice unveils Mountain Dew’s Call Christmas range of Duty promo COUNTRY choice has launched its Christmas range made up of sweet and savoury items.

Its thaw-and-serve sweet treats range consists of a chocolate mallow pudding, Christmas jammy shortcake, chocolate yule cake and a Christmas snowman cupcake.

The Christmas snowman cupcake consists of a chocolate sponge and vanilla-flavour icing with

milk chocolate decorations. It comes individually wrapped, with labels included, and has a shelf life of 14 days once defrosted.

The Christmas savoury selection includes a turkey & cranberry bake, chicken stuffing bake, steak & cheese bar, bite-sized sausage rolls, bite-sized cheese & onion rolls, and a turkey, stuffing & cranberry sandwich filling.

BRITVIC is partnering with Call of Duty: Black Ops Cold War to run an on-pack promotion on Mountain Dew for the second year.

Shoppers will be able to gain double XP points with every purchase of Mountain Dew, which will enable faster in-game progression and an additional sales opportunity for retailers.

The promotion will be supported with in-store PoS, and limited-edition Mountain Dew bottles will be available until January.

Double XP points can be redeemed until 31 January.

“The first thing people notice when they walk in a store is whether it’s bright and welcoming, or dark and foreboding,” said Jemma Healy, category controller at SBF GB&I.

strong business case to do so. Top-line estimates about Amit’s store show that installing new LED panelled lighting could reduce his lighting costs by 50% in Amit’s case, around £265 – a year”.

“Not only can great lighting make a store look welcoming, choosing ecofriendly lighting options can also save a tremendous amount of money.”

WHAT WE CHANGED By taking the old tubes out and replacing them with 20 low wattage and energy efficient LED panels*, we were able to lift the lighting level by 30% and improve the spread of light to the shelves.

THE CURRENT SITUATION The main area of Amit’s store was lit with 28 traditional 6ft long 30W tube lights, installed around 10 years ago.

These lights weren’t inviting people to walk to the back of the store or showcasing the products on his shelves, potentially stopping Amit from maximising his takings. The same lights were being used in the storage room.

These lights were using almost 3,300kWh of energy, and costing Amit around £530, each year.

A SUSTAINABLE FUTURE “Lighting can make up a significant proportion of a retail business’s energy consumption,” said Andrew Tod of Energy Saving Trust.

“There are many reasons store owners might put off replacing their old, inefficient lighting, but there is a

We also introduced two passive infrared (PIR) sensors for Amit’s storeroom – meaning the lights in those rooms would only come on when they sense movement, further helping to reduce energy use.

“By introducing new movement sensors we were able to introduce an even more sustainable system,” adds Tod. “Changing over the lights in Amit’s store took only two days, but the impact on his bills and the long-term energy use of his store will last much longer,” says Healy.

“This really is a change that, in every way, will be #GoodForBusiness”. * Actual products fitted: KLED27PNL Kali-Pro LED Panel, 27W, 595x595mm; 2x Smart control PIR microwave movement control

To get regular updates on the project, follow SBF GB&I on Twitter at @suntorybf_gbi

DON’T MISS THE NEXT ISSUE OUT

27 NOVEMBE R

New opportunities: retailers share the unusual lines proving to be sales successes PLUS How to buy a van: the dos and don’ts of choosing your next vehicle THE LEADING TITLE FOR NEWS AND CONVENIENCE RETAILERS THE LE S ADING AILER TITLE CE RET FOR N ENIEN V EWS A N ND CO ND CO Wake up and A S EW NVEN IENCE FOR N sell the coffee E TL RETAIL e G TI IN th Find out the hot drinks tips D g ERS A n Faci ckdown THE LE helping stores sell more

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

ORDER YOUR COPY from your news wholesaler today or contact Kate Daw on 020 3871 6490 TO ADVERTISE in RN, please contact Matthew Oliver on 020 7689 3367

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PRODUCTS

17-30 NOVEMBER 2020 betterRetailing.com

11

Advertorial

JTI launches Ploom S PRIYANKA JETHWA JTI has launched its latest heated-tobacco device, Ploom S, into the UK market with an RRP of £89.

While the device will only be sold through 60 accredited retailers in London, including 30 convenience stores, Evo tobacco sticks (refills) will be available for all London retailers to purchase through wholesalers within the M25, RRP £4.50.

A promotional offer, including a Ploom S device and a five-pack of Evo tobacco sticks, will be available for £39 through these retailers.

Sarah Connor, communications manager at JTI UK, said sales of heated tobacco have

increased by 270% in the UK in the past 12 months, with London making up 70% of all volume sales. She added that plans for a nationwide launch are in review.

The device is available in Matte Black, Soft Champagne and Steel Silver colours, with one full charge facilitating the use of 20 tobacco sticks.

It has two different heating modes and uses ‘heatflow technology’, where the heat never comes into contact with the tobacco stick, meaning users are less likely to get debris in the device.

Evo tobacco sticks come in Bronze (full flavour), Sepia (smooth), Emerald (menthol) and Purple (berry menthol) varieties.

Nick Fisher CEO, Facewatch

Facewatch now works when face masks are worn

Knorr’s vegan liquid seasonings KNORR has launched its first range of vegan liquid seasonings with Rich Vegetable, Miso Mushroom and Deep Smoke flavours.

Fikerte Woldegiorgis, foods marketing director at Unilever UK & Ireland, said: “We know having the right ingredients is half the battle, the other side is the knowledge, which is why we’re on a mission to get the nation eating more veg and have teamed up with TV chefs The Hairy Bikers for our #CheatOnMeat campaign.”

It follows the launch

sponsored

of its vegan stock pots earlier this year, and while it will be a Tesco exclusive initially, it will roll out to convenience stores later on. The seasonings have an RRP of £2.30.

Facewatch: now face mask ready FACEWATCH, the leading retail facial recognition system, now works when wearing a face mask.

The system is guaranteed to reduce theft by at least 35% in the first year and deters antisocial behaviour.

At just £199 per month, Facewatch is low-cost and fully GDPR-compliant.

Gareth Lewis, loss pre-

vention officer at Southern Co-op, said: “We’ve been running facial recognition in 20 stores for around 18 months, and within that time frame, we’ve diverted more than 3,000 incidents of theft. Our stock loss has come down to a point where we had a return on investment in eight months.”

Pernod Ricard UK targets Gen Z with new Absolut campaign PERNOD Ricard UK is targeting Gen Z with a new campaign for Absolut, which celebrates the importance of ‘meaningful connections’ during the lockdown.

‘It’s in our spirit’ is the first national campaign from the brand in over 18 months, and will span TV, video-ondemand, digital and social media. It will feature actress Tessa Thompson and music

artist MNEK breaking out of a virtual world into ‘real life’ to spend a moment together.

The supplier said the campaign, which runs this month, will reach more than 80% of 18-to-34-year-olds in the UK, driving conversation of the brand in the lead up to Christmas. Thirty- and 20-second prime-time TV spots will roll out on channels including Channel 4, ITV and Sky.

URBAN EAT is bringing back three limited-edition sandwiches for Christmas: Turkey, Bacon & Cranberry, Vegan Feast and a Pigs Under Blanket panini, available until 23 December.

The supplier said the hot food category spikes every November and December, therefore its Pigs Under Blanket option is suited to

retailers who can heat it in store and cross-merchandise with hot drinks.

Katy Holder, marketing director at Urban Eat, said: “We’ve designed a line-up that will help food-to-go retailers meet a range of customer tastes and needs – from classic turkey to a vegan option, and even a twist on a Christmas dinner favourite.”

THE convenience sector is under attack, firstly from Covid-19, but also from the very customers retailers have been helping since the first lockdown began in March.

A recent ACS survey reported a 40% increase in store violence and verbal abuse, and since the introduction of face masks, there’s been an alarming increase in shop theft, too. It seems retailers and front-line employees are paying a high price for the increase in sales within the sector. According to Unite national officer Bev Clarkson, “the pandemic took verbal abuse to the next level”.

There’s a fine line between delivering high levels of customer service and keeping theft to a minimum, while ensuring the safety and security of your staff. This is where Facewatch can help.

Facewatch uses technology to help retailers create a safer working environment and reduce theft. In fact, Facewatch is the only GDPR-compliant system in the UK that provides a unique facial recognition and data sharing service. The software is viewed as the biggest advancement in store safety since the introduction of CCTV. We are constantly looking for ways to improve the system and we’re pleased to announce a free upgrade is now available that enables recognition, at the same level of accuracy, when face masks are worn.

Gareth Lewis, loss prevention offer at The Southern Co-op, explains how he finds the system. “We’ve been running facial recognition in 20 stores for the past 18 months,” he says. “Within that time, we’ve diverted more than 3,000 incidents of theft and colleagues now feel like they’re taking part in a solution and incidents of theft have dropped. Our stock loss levels have reduced to a point where we had a return on investment in eight months. Facial recognition is the only technology that has worked in terms of turning the offender around.”

Urban Eat returns with festive sandwiches

For more information on what Facewatch can do for your business, please call 020 7930 3225, email enquiries@facewatch.co.uk or visit facewatch.co.uk

12

ADVERTORIAL REDUCING ENERGY

In partnership with

17-30 NOVEMBER 2020 betterRetailing.com

CONTROL ENERGY BILLS WITH A SMART METER Avoid estimates and only pay for what you use. Ask your energy supplier if you are eligible for a smart meter

UNDERSTANDING ENERGY USAGE COVID-19 has been hugely challenging for businesses across Great Britain. As firms begin opening up amid continuing restrictions, many are assessing their financial situation and focusing on how to operate in this difficult new trading environment.

At a time like this, many businesses are looking for ways to save money and create a healthier bottom line. The good news is that there are lots of small changes you can make to your business that add up to a big difference.

Energy is a key expense that businesses need to factor into their outgoings. So, a great way to gain more control and to understand how much energy you’re using, identify ways to reduce your consumption and therefore save money, is by requesting a smart meter installation from your energy supplier.

INSTALLING A SMART METER SMART meters are available for many businesses and enables you to see accurate bills, so each month you only have to pay for the energy you actually use. They also help you to keep better track of your energy and give you the information you need to reduce your consumption. In fact, some business owners who have had one installed say it highlighted areas of spending they weren’t aware of.

Your energy supplier will be ready to fit your smart meter once your eligibility has been confirmed. They will arrange a date and time that is suitable for you and your business requirements. A trained installer from your energy supplier will call round to your premises and fit your smart meter, and after the installation process is complete, they can show you and your staff how your smart meter works and answer any questions.

Contact your energy supplier to find how smart metering can work for your business. Eligibility may vary.

Eligibility may vary.

OPINION

14

IAA #COMMUNITYSTARS

RETAILER OPINION ON THIS FORTNIGHT’S HOT TOPICS

What do you think? Call Retail Express on 020 7689 3357 for the chance to be featured COVID-19: Have you reintroduced store restrictions during lockdowns?

“OUR social distancing stickers have been in place since March, so we didn’t need to reintroduce them. Also, we are not being strict with limiting customers into the store as we don’t have issues with overcrowding.

Masks will remain mandatory.

Things just feel the same as they have been for a while.”

Serge Notay, Notay’s Premier, West Yorkshire

The Independent Achievers Academy (IAA) joined Chris Tomes, of Costcutter & The Food Shop in Swanage, Dorset, to discover how he adapted his business and differentiated himself from multiples throughout Covid-19 restrictions. Here are three lessons you can learn

Uncertain of how Christmas will be, Chris has merchandised his seasonal products to drive early sales and has built an impactful display that’s easy to shop by stocking biscuits and confectionery together.

2

When he remerchandises different categories, Chris takes inspiration from planograms and tailors them to in-demand products and current bestsellers. He then shows his team to highlight what good looks like to him, so they can replicate it.

3

When availability became a concern at the height of the coronavirus pandemic, Chris used social media and word of mouth to inform shoppers about price and supplier changes and to reassure them as well.

CHRIS’ TOP IDEA “Word of mouth was the most effective way of informing shoppers about any changes, but we also did a social media post thanking our supplier and to inform shoppers we had been able to source stock elsewhere.”

Join the IAA on 25 November to hear how Trudy Davies, owner of Woosnam & Davies News in Llanidloes, Powys, is ensuring her small store is thriving. Read the full coverage of Chris’ session at betterRetailing.com/chris-tomes-community-stars

Sophie Towers, One Stop Kibble, Burnley

Things feel the same as they have been for a while

KEY TAKEAWAYS 1

“WE already have cleaning stations and screens in place from the first lockdown.

However, I have designed a lighting system for outside the store, so customers know when to enter in line with social distancing measures.

We now sell them wholesale to other shops.”

RETAIL CRIME: How has the threat level in your store changed due to lockdowns?

Criminals are not afraid of committing offences

“I PERSONALLY don’t think that any laws or restrictions passed will prevent retail crime. We just have to take the loss when it occurs. The criminals are not afraid of committing offences because they know the police are overstretched and won’t be able to stop them.”

Nimesh Patel, Best-one Eldon Street, Preston

“WE haven’t had any issues with crime so far during the new lockdown. As there are fewer people around, criminals stick out more, so the chances of them getting caught increase, which perhaps deters them. Our CCTV and body-worn cameras are helping to prevent incidents.”

Anita Nye, Premier Eldred Drive Stores, Orpington

SUPPORT: How has your local authority supported you during Covid-19?

“WE haven’t had any backing from local authorities, and we don’t expect to. It’s a tough time for everyone. I think we are in the small minority of businesses that may potentially benefit from a lockdown, so I wouldn’t expect any further help unless our circumstances change.”

Sandeep Bains, Simply Fresh Faversham, Kent

“WE’VE had absolutely no support, to be honest, no advice and no information about how they can financially help us – even when we had issues in our store. Local authorities only want you to be at fault, and unfortunately the police are only interested in fining people without masks.”

Mike Lahkani, Premier St Mary’s, Southampton

We have had absolutely no support SALES: What lines are proving most popular with customers right now?

Footfall is down, but we are selling a lot more PPE

“FOOTFALL is down because of the second lockdown, but we are selling a lot more PPE items, including hand sanitiser and masks. Aside from that, magazine sales have been strong as people have little else to do. We’ll see if that changes this time around.”

Nainesh Shah, Mayhew News, London

“HOME baking products are selling well, and knitting wool has taken off as people are knitting for new babies. We have seen increased sales on multipacks as customers are buying in bulk, rather than picking up the odd thing.”

David Woodrow, Woodrow’s Newsagents Bishopton, Renfrewshire

LETTERS

17-30 NOVEMBER 2020 betterRetailing.com

15

Stop sophie One Kibble towers

Letters may be edited

Times are changing, but community remains priority THIS year we took the big decision to switch fascias. This is a challenge at the best of times, and in 2020 it’s even more so. Nevertheless, by looking at it carefully we decided this would give us the right franchise at the right time for the area that we’re in, and that’s the most important thing for us.

One of two new retailers Inevitably the shares advice on how to make first few months your store rise to the top have seen some grumbles from our customers.

There are certain own-label products they’re used to which they can’t get anymore, but we’ve found that as long as you communicate clearly and honestly with them, they’ll understand. Especially if you can show them you have an alternative that’s just as good.

It’s putting the community first that has made us delay the refit that is part of switching to One Stop. We were already in Covid tier three here prior to the prime minister announcing the new lockdown, and it felt that shutting the shop down now would have been, frankly, unethical.

We always strive to be there for our customers, and we’ve felt their gratitude over the past year. What’s the point of a local shop if you’re not there to serve the community at what is the most challenging time any of us can remember?

We’re of course still really excited about the refit, and we were really keen to get it done before Christmas. But, ultimately, our shop is still relatively new – just over five years old, and that means we can wait a while longer.

I’ve always thought it’s important for a local shop that community involvement doesn’t stop at the shop door, and 2020 has made that clearer than ever before. This half term, we got involved in giving free school meals to families in the estate who are struggling financially. We teamed up with a charity from Burnley who provide meals for the homeless in Manchester, but are unable to do this due to Covid-19 restrictions. We made a cold packed lunch option, while they had volunteers making hot food. We set up a phone line for those who didn’t want to come in person – you have to remember that not everyone is comfortable asking for help in public.

It ended up being a really positive event – there was a great atmosphere around the place, and we were giving away 30 meals each day. It was an event that brought people together, and having our shop involved in it felt really special.

RISING

STAR

‘We gave out up to 50 free school lunches a day’ I HELPED provide free school meals during the half term following the campaign of Premier League footballer Marcus Rashford.

I’ve had the shop in the area for 25 years and have got to know the residents quite well, so I thought it was important to give back to them through

campaigns like this one.

I don’t know specific numbers, but I had a lot of kids come in to get the meals.

Each meal came with a sandwich, drink, piece of fruit, a snack and a jelly sweet.

I worked with a local sandwich supplier called Luncheon Express and my wholesaler Parfetts also

helped provide the drinks. I paid for the rest of the stuff myself and we were getting between 40 to 50 sandwiches to give out a day.

What surprised me was a letter from my MP, Gill Furniss, who had written to congratulate me for the help I had provided to the local community.

It wasn’t just me who sup-

ported their community, either, as my brother Jai – who also runs a convenience store in Sheffield – also helped provide free school meals to children living nearby during the half term school holiday.

Rav Singh, Go Local Extra Southey Convenience Store, Sheffield

WIN £64.80-worth of Freshr

WIN £50-worth of Jam Shed stock

RETAIL Express has teamed up with Freshr to give five retailers £64.80-worth of stock each of its menthol filter.

Freshr is designed for ex-menthol smokers who are looking for alternatives. Users just need to twist the twopiece cigarette holder to open it, then crush the capsule inside the filter to release the flavour.

ACCOLADE Wines has teamed up with Retail Express to give five lucky winners two cases of Jam Shed’s bestselling Shiraz with limited-edition mulled wine recipe neck tags. When heated, hints of vanilla and cinnamon are emphasised to make the perfect base for mulled wine – ideal for a winter warmer at home.

TO ENTER

TO ENTER

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Editor’s decision is final.

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Editor’s decision is final.

Get in touch

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

NICOTINE POUCH

This product contains nicotine.

Nicotine is an addictive substance.

NORDIC SPIRIT OF SWEDEN

What is Nordic Spirit?

• 100% tobacco-free nicotine pouch • A convenient and discreet tobacco-free nicotine product that can be used in situations where smoking or vaping might not be possible • Contains a blend of plant-based fibres, flavourings, nicotine and a small amount of gum base which allows the pouch to fit comfortably under the top or bottom lip

WHAT DO RETAILERS SAY?

• Nordic Spirit is available in three flavours, Mint, Bergamot Wildberry and Elderflower and is currently available in two strengths (regular 6mg and strong 9mg), as well as an extra strong 12mg version of the mint variant • Nordic Spirit has an RRP of £6.50**

WHY STOCK IT?

• Nordic Spirit is the UK’s leading tobacco-free nicotine pouch brand, with an 90.5% market share1

Mr Amin, Owner of ‘The Centre’, London said:

People have been asking for Nordic Spirit for over a year, and as soon as it became available in the UK, I made sure I was the first person to stock it in my area. A lot of people come back and say how good Nordic Spirit is, saying they’ve recommended the product to their friends and colleagues at work. The best way to stock Nordic Spirit is on the counter because they spark conversation with customers

*Source: IRI Market Place, Unit Share, Nicotine Pouch Category, Total UK, Aug 2020. to verify contact us via nordicspirit.co.uk/contact **RRP effective 8th July 2020. You are at all times free to sell JTI’s products at whatever price you choose.

• Nordic Spirit has been the fastest growing tobacco-free nicotine pouch brand in the UK over the last 10 months2 • The nicotine pouch category in the UK is growing and is now worth £380,410 a month3, which equates to approximately £4.6 million a year4

1 IRi Market Place, Unit Share, Nicotine Pouch Category, Total UK, May 2020. 2 IRi Market Place, Unit Share, Total Nicotine Pouch Category, Total UK, over the last 10 months to May 2020 (based on slope calculation). 3 IRi Market Place, Value Sales, Nicotine Pouch Category, Total UK, May 2020. 4 IRi Market Place, Value Sales, Nicotine Pouch Category, Total UK, Annualised Figure Based on May 2020.

18

ACADEMY IN ACTION

17-30 NOVEMBER 2020 betterRetailing.com

The Independent Achievers Academy is a learning and development programme that helps to increase sales and profits. Academy in Action shows how retailers like you are working with our partners to use the Academy’s advice.

We’re here to help.

Call 020 7689 0500 Name: Shop: Location: Size: Staff:

Agnelo Desousa Trinity Food & Wine Laindon, Essex 500sq ft Two full-time, one part-time

PARTNER ADVICE Sarah Connor

RESPONSIBLE RETAILING In part eight of a 12-part series, the IAA and JTI help AGNELO DESOUSA of Trinity Food & Wine become a more responsible retailer RESPONSIBLE retailing is about protecting your staff and shoppers by keeping up to date with legislation. Being responsible also means reporting illicit sales in nearby stores and ensuring age-restricted products are highlighted with signage, too.

Agnelo has operated Trinity Food & Wine in Laindon, Essex, for 15 years and has embedded himself into the local community.

Agnelo has a refusals register and asks for ID, but because of his relationship with the community being as strong as it is, Agnelo feels it’s not always needed. How can the IAA and JTI’s Sarah Connor help him to ensure he continues to retail responsibly?

Want to see more?

For more on how to improve your store and to see more of Agnelo’s shop, go to betterRetailing.com/Academy-in-Action

Responsible retailing is key to protecting minors. By following the action plan, Agnelo can protect himself and his community.

Sarah Connor Communications Manager JTI

YOUR ACTION PLAN 1 Walk your shop

This is designed to be used to help you think like a customer

2 Benchmark your shop

WHY I TAKE PART

Use the checklist below, ticking all you see evidence of

Being a responsible retailer ensures I’m keeping my community, and my team, safe. Sarah from JTI offered some great insight about how to do this and I’m looking forward to implementing the action plan.

I’ll start by writing down any refused sales in our refusals register, as well as recording times where my team and I have asked for ID, too.

Eliminate underage sales using the Challenge 25 scheme Minimise theft and ensure staff feel safe Work with the police to report and reduce crime Obey legislation so staff and customers are protected

IAA ADVICE Eliminating underage sales using the Challenge 25 scheme

Asking for ID and keeping a log of refusals

Working with the community to educate about and reduce illicit trade

Agnelo has Challenge 25 signage above his tobacco gantry to keep shoppers informed, but other age-restricted areas aren’t highlighted as clearly. What can he do to ensure customers are aware of age limits on other products, like alcohol?

Agnelo combats underage sales by having a refusals register. The last entry, however, was the last refusal in 2018 and he hasn’t had any refusal sales since. How can Agnelo show he’s asking for proof of age?

Agnelo is aware of illicit tobacco sales in the nearby town centre, but this has declined since the coronavirus lockdown. However, Agnelo wants to educate his customers on the impact buying illicit tobacco has on retailers. How can he do this?

Sarah says: “Displaying Challenge 25 signs around the store and close to age-restricted products is the first step in youth access prevention. By having these signs, Agnelo can highlight the process he and his team follow to prevent underage sales and avoid any potential customer confrontations that can happen when asking for ID.”

Sarah says: “A refusals register is a practical way of ensuring you’re applying Challenge 25 and documenting it shows that you’re being compliant. By following ‘No ID, No Sale’, Agnelo reduces the risk of underage sales, as well as being able to provide documentation to Trading Standards if inspected.”

Sarah says: “Agnelo is doing a great job in reducing underage sales, but his next step is educating his shoppers on the dangers of buying illicit products, such as tobacco.

Retailers should be able to inform shoppers about the risks of buying illegal products and make sure to report any intelligence of illegal sales to the authorities.”

ACTION Place Challenge 25 signage in visible locations to highlight in-store processes and deter underage sales.

ACTION Keep a log of all sales where ID has been requested, and sign and check it weekly.

ACTION Educate shoppers on identifying illicit trade and the risks associated with doing so.

Improve safety in your community

3 Pick one thing to improve Write it down, implement it this week and let us know how you get on using #IAA20

SET A LEADING EXAMPLE Visit betterRetailing.com/IAA to ensure you’re protecting staff and shoppers, and see how you can improve in 11 other categories

Next time: Availability

FORECOURT FOCUS

How Lockdown round two is affecting our forecourts p20

Pandemic triggers biggest drop in traffic since records began DARYL WORTHINGTON THE COVID-19 pandemic and associated lockdown have contributed to 2020 seeing the biggest drop in road traf�ic since records began, according to statistics released by the Department for Transport (DfT) in late October.

According to the DfT’s provisional estimates, motor vehicles travelled 305.4 billion vehicle miles in Great Britain in the year July 2019 to June 2020. That’s a decrease of 13.6% compared to the year ending 2019.

Car traf�ic had a signi�icantly larger percentage decrease than van and lorry.

The number of miles completed by cars on the road fell by 15.2% to 234.1 billion in the year to July 2020, while van and lorry traf�ic decreased by 7.3% and

7.8%, respectively.

The drop in traf�ic was not limited to certain road types, with motorways, Aroads and minor roads falling by 17.3%, 14.1% and 11.1%, respectively.

Perhaps unsurprisingly, the DfT puts these drops down to the pandemic and spring lockdown. “Explanatory analysis suggests that the observed decrease in road traf�ic levels may be linked to the coronavirus,” says the DfT. Indeed, it’s suggested that had the pandemic not taken place, the �igure for the year ending June 2020 would have increased by 1% to 357.1 billion vehicles.

All motor vehicle traf�ic for the year ending July 2020 was 0.5% lower than the same period 10 years ago, and only 4.6% up on 20 years ago.

What does it mean for lockdown two?

With a second nationwide lockdown having come into effect at midnight on 5 November, these �igures could paint an alarming picture for the amount of traf�ic on the roads in the coming months.

“There is little doubt that 2020 is having a profound impact on our travel habits.

Incredibly, 52 billion fewer vehicle miles were travelled in the year to the end of June than was to be expected if the pandemic hadn’t hit,” said RAC head of policy Nicholas Lyes.

“The biggest fall in traf�ic volumes was on motorways as drivers tended to stay local during the lockdown periods in the spring, with the sight of empty highways surely one of the enduring images of that stage of the pandemic.”

“The million-pound question now is: what happens next? With the introduction of local lockdowns in several parts of the UK, we’re already seeing traf�ic volumes

Petrol station car washes No-deal Brexit would avoid second lockdown increase cost of EVs CAR washes in England that are part of a petrol station forecourt are able to stay open throughout the UK’s second coronavirus lockdown.

“I am immensely pleased to announce that the government con�irmed with us that, in England, car washes that are part of a petrol station would be able to remain open as there is no requirement for an ‘open business’ to close off parts of their business that are closed,” said Brian Madderson, chairman of the Petrol Retailers Association

(PRA) and Car Wash Association (CWA).

Madderson said the government announcement came as the result of “intense lobbying” from the CWA. “CWA will continue with its robust lobbying as Automated Car Washes (ACW) that are not connected to a petrol station have not yet been granted an exemption to remain open,” he continued. “We are working to ensure that these ACW are not discriminated against in this, and any potential further, lockdown.”

NEW research from the Society of Motor Manufacturers and Traders (SMMT) has revealed that a no-deal Brexit would lead to an average price hike of £2,800 for fully electric cars manufactured in the EU and sold in the UK. The �igure, based on the 10% no-deal World Trade Organisation tariff, would effectively make the £3,000 plugin grant to incentivise uptake of electric vehicles “null and void”, according to an SMMT statement. The cost increase for fully electric cars is so high

because they require expensive battery technology.

“Just as the automotive industry is accelerating the introduction of the latest electri�ied vehicles, it faces the double whammy of a coronavirus second wave and the possibility of leaving the EU without a deal,” said Mike Hawes, SMMT chief executive.

“As these �igures show, nodeal tariffs will put the brakes on the UK’s green recovery, hampering progress towards net zero and threatening the future of the UK industry.”

start to dip again after rising through the summer,” Lyes continued.

“Nonetheless, the RAC’s own analysis suggests that drivers are attaching greater

importance to having access to a vehicle in light of the pandemic, which they see as a reliable and safe form of transport in these continually uncertain times.”

Asda slashes fuel prices at its petrol forecourts ASDA announced on 3 November that it was cutting three pence per litre off diesel and two pence per litre off unleaded at all of its 322 petrol stations across the country.

The multiple put the price slash down to a drop in the wholesale cost of fuel.

“We want to continue to support the nation during this second lockdown by passing on reductions in wholesale cost of fuel to our customers, and we hope this will provide some additional support to those essential

Have you made any big changes in your forecourt that have grown your sales and profits?

Let us know on 020 7689 3390 or at editorial@newtrade.co.uk

workers, such as NHS staff and key workers who are still required to make essential travel journeys to and from work,” said Asda’s senior fuel buyer, Dave Tyrer.

Luke Bosdet, fuel price spokesman at the AA, said Asda’s price cut “throws down a challenge to other fuel retailers”.

“In the last lockdown, many fuel stations held back savings from lower wholesale prices because they said they needed to compensate for lower fuel demand,” he explained.

FORECOURT FOCUS ADVICE

20

‘At some point this will finish’ DARYL WORTHINGTON LOCKDOWN mark two is officially here, but how is it affecting forecourts? For many independents, the first round of lockdown saw a dramatic drop in fuel sales as the roads emptied out. For some, this was countered with a massive surge in the shop side of the business, while others were not so fortunate.

So, how is the second lockdown different, and how are retailers responding? For Goran Raven, from Raven’s Budgens in Abridge, Essex, an area close to the M11 and a major route into London, the drop

in fuel sales hasn’t been so severe this time around. “Although sales are down, it’s not by a huge amount, around 500l a day. I’d say the best way to describe it is that everyday is like a Saturday at the moment, there are still a lot of cars on the road. In March, the roads were almost completely deserted.”

That’s not to say that the return of lockdown hasn’t brought challenges. “As with the first lockdown, there’s definitely a few more difficult customers we need to deal with,” he explains.

“People are stressed out and on edge. My advice to my team is always to polite difficult custom-

01

ers to death – don’t put yourself at risk, agree with them as much as you can and try to diffuse the situation that way.”

According to Raven, it’s vital that stores strive to keep going above and beyond for shoppers as more people shop local. “At some point this will finish,” he explains.

“We’re trading up at the moment in our shop, but it’s important to maintain high standards and show the new customers we can do things as well as the big boys – in fact, some things we can actually do better then them. Getting that message across is how you’ll keep new shoppers in the long term.”

02

Window painting by Expert Window Art at Raven’s Budgens

03

Keep it steady

Retain some normality

Raise the bar

“THIS lockdown hasn’t had as dramatic an effect on shopper habits as the first one,” says Raven. “I think shoppers are used to it, and so are we. We stocked up on key things like hand sanitiser and toilet roll when it was announced, but this time they’re selling steadily, rather than panic buying.”

For Raven, the key thing is adjusting the store to lockdown shopper patterns that are now creeping back in.

“Covid-19 has seen us pick up a new, third rush hour,” he reveals. “We used to have peaks mornings and evenings around commuters – now we also have one at lunchtime.

People who are working from home are popping out to get something for their lunch.”

According to Raven, this hasn’t just affected his foodto-go sales. “We’re getting a lot of people coming in for a ready meal, or for ingredients so they can make something themselves from scratch, so grocery has increased.”

“WE’RE trying to keep things as normal as possible for our customers,” says John Stevenson, from Stevenson Garages, owners of several forecourts in the north of England.

“We’ve been a bit more considerate with the decisions we make this time round. For example, in the last lockdown we reduced our hours to protect the team, and while we’re still protecting the team through high hygiene and safety standards in store, we haven’t reduced our hours this time.”

Although he has seen a drop in fuel sales, Stevenson says many of the extremes of the last lockdown haven’t returned.

“Shop sales have remained steady and we haven’t noticed any panic buyers. Because other businesses and schools have stayed open, not a lot has changed.

“When it was announced that schools were to remain open, it all felt normal and shoppers are thinking about their purchases more.”

“PEOPLE expect more from us now,” says Rachael Hockmeyer, from Hockmeyer Motors in Sleaford, Lincolnshire. “Because we went above and beyond adding new grocery lines last lockdown, shoppers expect and are requesting the same this time, so we’re focusing on making sure we’re stocked.”

One area where shoppers started using the store more was for beer, and so the team at Sleaford Motors has made a new display for beer slabs, making it easier for customers to see what’s on offer. Another challenge has been getting ready for Christmas amid the uncertainty. “People don’t know if they’ll get to be with their families, and one thing we’ve seen is that our hampers are doing really well this year,” she explains.

Meanwhile, on the car side of the business she notes the garage has been very busy due to a surge in MOTs, the result of the government not putting a hiatus on them as they did in the last lockdown.

FORECOURT FOCUS FEATURE

17-30 NOVEMBER 2020 betterRetailing.com

21

FUEL UP FOR THE FUTURE With new fossil-fuelled cars set to be banned by 2030, THE RETAIL EXPRESS TEAM looks at the possible alternatives

CHANGING TIMES IN FEBRUARY, the government announced it would end the sale of all combustion engine vehicles by 2035, and while 15 years might well seem a while away when you’re battling a pandemic, shifts in motorist habits will start to take place before then.

Indeed, there are already a number of initiatives in play to encourage motorists and businesses to move away from petrol- and diesel-fuelled vehicles.

One of the biggest criticisms thrown at electric vehicles (EV) is the cycle of a lack of infrastructure meaning there’s a lack of EVs on the road, and a lack of EVs on the road meaning there is a lack of investment in infrastructure.

Recent major investments in

EV charging stations by companies like Gridserve could start to change that. The UK’s fuel future will likely be a mix, with not just one solution to the

hydrocarbon problem. So, although EVs might be the most developed fossil fuel alternative, what other options are being looked at?

BIOMETHANE is a renewable fuel which can be made from processing a variety of waste products, such as manure, plants, wastewater or even landfill. Typically used in heating and electricity production, recent years have seen it starting to be adopted as a vehicle fuel.

So far, biomethane has mostly been used in HGVs,

companies such as Argos, Royal Mail and Hermes having trialled biomethane in their logistics fleets. John Lewis Partnership announced plans last year to convert its entire 500-vehicle fleet to biomethane by 2028, and is building a biomethane refilling station close to its headquarters in Bracknell.

Of course, HGVs are only a

fraction of traffic on roads in the UK, yet there are now also signs that biomethane could be coming to cars as well. For instance, earlier this year, Volkswagen launched a Golf TGI with natural gas drive, which could also run on biomethane. Combined, this suggests biomethane could become important to the UK’s fuel mix in the future.

HYDROGEN The Volkswagen Golf TGI runs on natural gas or biomethane

ELECTRIC VEHICLES THE most established fossil fuel alternative is EVs. Showing just how serious the EV opportunity is becoming, earlier this month, Bentley announced it will stop making petrol cars by 2030 and go fully electric.

Although many independent forecourts don’t see value in investing an EV charger yet, some have have already taken the plunge of setting up a EV charge point, while others are weighing up their options.

BIOMETHANE

“The routes people are going to take aren’t going to change with the electric revolution, and forecourts are where they are exactly because they are on busy, regular routes,” said André ten Bloemendal, vice president Europe at ChargePoint, earlier this year.

“The potential customers will still be there even after everything has gone electric, and they will still need to stop and fill up, only with electrons, not fuel.”

HYDROGEN-FUELLED cars are increasingly seen as having the potential to play a pivotal role in hitting the UK’s emissions targets. A growing amount of vehicles are powered by hydrogen fuel cells, from cars to scooters or buses, and there are three different hydrogen fuel cell cars available to buy in the UK. Hydrogen vehicles can be quickly refuelled using a pump like a conventional petrol or diesel car, but instead use gas. They produce only water as a by-product and

have a range of around 300 miles per tank, like conventional vehicles.

As is often the case with renewable-fuelled vehicles, however, the issue preventing wider uptake of hydrogen-fuelled vehicles is a lack of infrastructure.

In 2017, the government announced £23m to build more fueling infrastructure for hydrogen-fuelled vehicles.

Yet, according to UK H2 Mobility, there are currently only eight hydrogen refilling stations for cars in the UK.

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TOP PRODUCTS OF 2020

17-30 NOVEMBER 2020 betterRetailing.com

23

THE YEAR IN LAUNCHES THE RETAIL EXPRESS TEAM runs through the key product launches of the past 12 months

TOP OF THE POPS IT may have been a year like no other, but that hasn’t put a freeze on the rate of new product launches. With so much going on, it can be hard to keep track of what’s been released into the convenience market, while tightening purse strings for retailers and shoppers alike is sure to cause a greater reluctance to experiment with new lines.

In our guide of the top products of 2020, we’ve teamed up with The Retail Data Partnership (TRDP) to give you data on the new lines released between 1

December 2019 and 1 November 2020 offering the highest average monthly rate of sale to independent retailers in certain key categories, making it easier for you to check you’ve got the right lines in stock.

We’ll also take a look at some of the standout products that you may have missed out on, or the hidden opportunities which could help drive sales to your store. We’ve also broken down some of the new trends that have popped up in the wake of Covid-19, and the products you could stock to meet them.

CADBURY ORANGE TWIRL Stores stocking: 74% Average monthly rate of sale: 151 IN our product review of 2019, the limited-edition launch of Cadbury Orange Twirl was voted the biggest product launch of the year by retailers, thanks to its popularity with customers.

It’s perhaps of little surprise, then, that its return in 2020 was met with enthusiasm.

The product was relaunched in September, with supplier Mondelez International saying more stock would be available than in 2019.

Signs are that the limitededition line remains popular, despite the trials of this year, with Danny Ahmed, from Costcutter Crankhall Lane in the West Midlands, revealing to Retail Express in October he was selling two to three boxes of Orange Twirl a day.

24

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ALCOHOL AND TOBACCO THESE two convenience store categories have seen a number of changes in recent years, as well as talk of new trends shaking up the market, which means the insights from TRDP’s data are particularly interesting.

Unsurprisingly, the menthol ban has played a big role in the tobacco market this year. After Sterling New Dual, Rizla Flavour Infusions Menthol Chill and Players Green Filter Superkings had the next highest average monthly rate of sale (28.89), followed

by the Rizla Flavour Infusions Fresh Mint (23). Clearly, then, shoppers were looking for new launches to fill the menthol gap.

In terms of alcohol, Thatchers Cloudy Lemon being the top launch points to a growing interest in cider. Next

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FRESHR LAUNCHED in response to the menthol ban, Freshr is a menthol cigarette filter which attaches to cigarettes to give customers the familiar flavour. Each pack contains 31 filter tips, which can be used on up to 93 cigarettes.

The company pledges that its social media team will help drive footfall to stockists’ stores with “highly targeted campaigns” and will

also share digital assets with retailers.

Freshr recommends retailers stock it on the counter initially, and says it will provide PoS, such as counter mats and posters. it has also invested in a trial pack, which consists of one filter that can be used three times and one holder.

Each retailers stocking Freshr will receive 20 of these while stocks last.

STERLING DUAL Stores stocking: 94% Average monthly rate of sale: 70 2020 has been a year like no other for a number of reasons, but for convenience retailers you can add the menthol ban to the list of upheavals. This saw a raft of new launches to try to provide smokers with an alternative, including the new Sterling Dual.

The King Size Cigarillos contain a Virginia blend tobacco and, unlike cigarettes, are wrapped in tobacco leaf.

Available with an RRP of £4.50, the menthol cigarillos have a mentholated capsule in the filter, which consumers can click for a peppermint flavour.

Their status as a cigar product means they are unaffected by the menthol ban.

RIZLA FLAVOUR INFUSIONS Stores stocking: 2,837 Average monthly rate of sale: 35

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SUPPLIERS have come up with a number of innovative ways to provide adult smokers an alternative in the wake of the menthol ban. Last December, Imperial Tobacco released its new Rizla Flavour Infusions, cards that can be used to add a menthol flavour to traditional tobacco products while still complying with the ban.

A number of retailers Retail Express has spoken to this year have highlighted the product as a strong performer in their stores and a popular alternative for menthol smokers. The Rizla Flavour Infusions are available in two varieties, Menthol Chill and Fresh Mint, and, according to our data, Menthol Chill is offering the best rate of sale in independent stores.

up came Hooch Pink (19 average sales), and after that, another cider, Strongbow Rosé with a rate of sale of 17. Evidently, then, the interest for new flavours seen in other categories is also apparent in cider.

17-30 NOVEMBER 2020 betterRetailing.com

THATCHERS CLOUDY LEMON Stores stocking: 33% Average monthly rate of sale: 26.54 THATCHERS added the new Cloudy Lemon Cider to its range in March. The 4% sparkling cider comes in packs of 4x440ml cans at an RRP of £5.50, and mixes a naturally cloudy Somerset cider

with lemon juice. According to Thatchers, the launch into the category was aimed at providing an alternative to berry-flavoured ciders.

At the launch, managing director Martin Thatcher said the product would appeal “not only to cider lovers, but also those who enjoy a gin & tonic”.

BOOST ICED COFFEE LATTE Stores stocking: 23% Average monthly rate of sale: 11 THE growth in chilled coffee drinks is a trend that retailers have been reporting to Retail Express since last year, with many saying they offer a great option all year around. Boost entered the canned coffee sector with a Latte and Double Expresso option, both available in 250ml cans.

“Sixty-six per cent of 18-to-24-year-old coffeedrinkers see chilled coffee as a good alternative to sugary drinks, and on-the-go hot and cold coffee sales are up 54% in the past year,” said Simon Gray, founder and managing director of Boost.

DIET COKE SUBLIME LIME Stores stocking: 37% Average monthly rate of sale: 14 COCA-COLA European Partners (CCEP) added Diet Coke Sublime Lime to its range in February this year, to give retailers a way to tap into the growing flavoured colas market, worth £227m at the start of the year and growing at 11%. According to CCEP, lime is the third-

most-liked soft drink flavour in the UK. Diet Coke Sublime Lime is available in 330ml and 500ml packs, plain and price-marked, as well as multipacks, and 1.25 and 2l formats. The launch was supported by a campaign spanning digital and TV, alongside sampling and in-store promotions.

25 23

TOP PRODUCTS OF 2020

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17-30 NOVEMBER 2020 betterRetailing.com

ANIMAL OPPORTUNITY

WOTSITS GIANTS FLAMIN’ HOT Stores stocking: 35% Average monthly rate of sale 17 FEBRUARY saw Walkers add two flavours to the Wotsits brand, Flamin’ Hot and Sizzling Steak, and, according to our data, it’s the Wotsits Giants Flamin’ Hot that have been standing out in convenience stores so far in 2020.

2020 is a year that will live long in the memory for a number of reasons, not least the drastic shifts that have taken place in shopper habits. Convenience stores have found themselves seizing opportunities in new categories as shoppers move away from supermarkets, and with Covid-19 likely to remain on the agenda into 2021, so will these new opportunities.

Petcare is one such category.

Many convenience stores already had lines in their range, but Mars Petcare’s State of the

Nation report from earlier this year showed petcare sales had grown by 3.1% in convenience stores, meaning it could be time to re-evaluate your offer.

Important to bear in mind as well is the greater concern shoppers have on what they feed their pets. In particular, more are looking at the health credentials pet food products offer.

In June, Winalot relaunched its pouches range, highlighting more clearly benefits such as quality ingredients and containing no added artificial flavours.

Supported by TV, digital and in-store marketing, Walkers owner PepsiCo described the addition of the two new flavours as “responding to the nation’s pleas”. The company said the launches would open sales opportunities for retailers by meeting shopper demand for meat and spicy flavours.

WINALOT POUCHES

RED BULL RED EDITION

RIBENA RASPBERRY RAYS

Stores stocking: 43% Average monthly rate of sale: 13

Stores stocking: 48% Average monthly rate of sale: 10.68

LAUNCHED in July as a Summer Limited Edition, Red Bull made its new Watermelon line a permanent fixture in October, redubbing it Red Edition. Red Bull says this decision was made because its performance was in line with the top launches in the sports and energy category.

The Red Edition is now available with an RRP of £1.35 per can. According to Red Bull, 41% of energy drinks users are interested in exotic- and tropical-flavoured energy drinks, while the Red Bull Editions lines have grown by 26.8% over the past year.

RIBENA extended its range with the addition of Raspberry Rays back in June. The new juice drink comes in a pricemarked pack 500ml bottle at £1.09, or two-for-£2. The product tested positive in trials, with 70% of shoppers claiming they would buy a raspberry-flavoured Ribena.

According to supplier Suntory Beverage & Food, sales of raspberry-flavoured drinks are growing at 17% year on year. Charlotte Flook, head of brand for Ribena, said: “Raspberry Rays is perfectly positioned to bring new consumers into the on-the-go juice drinks segment.”

AS part of Winalot’s relaunch, the jelly part of the Winalot pouches range now has a grain-free recipe in response to growing demand for grainfree options. In the convenience channel, Winalot pouches are available in 3x100g and 12x100g pouches, both in price-marked and non-pricemarked packs.

“There is a growing demand for dog pouches, as the category has trebled over the last five years and Winalot pouch

has grown an impressive 33% year on year,” said a spokesperson from Winalot. “Adding Winalot pouches to your pet food fixture will ensure you are ranging products that shoppers coming into your store want to buy.”

RETAILER

VIEW

Gaurave Sood, Neelam Post Office & Convenience, Uxbridge, Greater London “THERE hasn’t been a huge number of new products this year due to the current climate, but any orangeflavoured products have flown off the shelves. Cadbury Orange Twirl, Orange Buttons and Orange Fingers are selling fast, and we typically have to put 10-20 new packets out each week. Luckily, my wholesaler has been able to keep up with demand and we’re getting them in weekly – they’re my number-one product of 2020.”

How to grow your PLAN YOUR WAY TO PROFIT pet category Why Pet Is Important Profit

Brand

Shoppers expect to find Premium products Premium = Profit

Felix is the number 1 pet food brand.

Felix Pouch outsells its nearest competitor by more than 2:11

Planned

Pack Size

Location

91% of pet food purchases are pre planned

Being able to buy the right brand and pack size is important to your customers

Cat ownership increases in urban areas and Dog ownership increase in rural areas, so flex your range accordingly

Pet Food is worth £8 million pounds per day

Are you stocking what your customers are looking for?

Top Tips Offer a range of Luxury Wet Cat Food

• Luxury is growing strongly in

convenience but often under 2 represented in store

• Customers will pay a premium for

luxury cat food. The two key brands being Gourmet and Sheba

Drive Wet Cat Food growth through Pouch

• 70% of Wet Cat Food sales in Convenience are in Pouch

2

• Felix is the Number 1 Pet Food brand1

• Felix As Good As It Looks are the top sellers1

• Stock a range of Singles and 12pks

to meet your customer requirements

Expand Dry Cat Food range to bring in new customers

• Adding Advanced Nutrition Dry Cat to your fixture can grow sales through premiumisation

• Purina One is the number one selling Advanced Nutrition Dry Cat Food1

Introduce a Dog Pouch

• Your customers are looking for more

convenient formats and dog pouches are a huge trend

• Winalot is the number one

pouch brand in Symbols and Independents and the 12 x 100g packs the top sellers3

IRI Pet outlets and Ocado 52 wks 18th April 2020. 2IRI Convenience & Forecourts 52 wks 18th April 2020. 3IRI Symbols & Independents 52 wks 18th April 2020

1

TOP PRODUCTS OF 2020

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NEW FLAVOURS GOING STRONG A STAND out from this year’s new product launches is that suppliers are delivering innovation in flavour, and shoppers are responding. The success of orange chocolate goes beyond Cadbury Orange Twirl, with both Cadbury Orange Buttons and Orange Fingers performing strongly in our figures.

And it’s not just orange that’s bringing shoppers in. Nestlé Confectionery’s newly launched KitKat Chunky Mint scored average monthly sales of 27 across the stores surveyed, KitKat Chunky Cookie Dough hit 21, and KitKat Gold 12. Meanwhile,

Aero’s Caramel aramel chocolate bar has a monthly average of 22, and Twix Salted Caramel 18.

This doesn’t mean it’s time to throw out your top performers, but introducing new flavours to your chocolate range could draw in some new sales.

A similar pattern can also be seen in soft drinks and sports and energy drinks. Whether it’s Diet Coke Sublime Lime, Red Bull Red Edition or Ribena Raspberry Rays, customers are looking for new tastes, so trial some new flavours of established classics to see what your shoppers are looking for.

KITKAT CHUNKY MINT Stores stocking: 57% Average monthly rate of sale: 27 TAPPING into that taste for new flavours in chocolate, Nestlé Confectionery brought back popular KitKat Chunky flavours this year as part of its KitKat flavourites campaign, with a Cookie Dough and Chunky Mint option join-

ing Chocolate and Peanut Butter flavours.

Nestlé Confectionery says mint is the country’s second-favourite flavour after caramel, with sales of mintflavoured products growing at 7.4%. In 2013, meanwhile, shoppers voted mint their favourite KitKat Chunky variety, and judging from our data, that’s still true in 2020.

THE HIDDEN GEM Stores stocking: 22% Average monthy rate of sale: 20 CADBURY Oreo White £1 PMP is the standout new product this year that most retailers are potentially missing out on. Only available in 680 of the stores surveyed, the

launch has an average rate of sale of 20 per month.

The product seemed to have a low-key launch in February, and yet the stores that got hold of it seemed to get a good rate of sale. Getting it in stock could make your store stand out from your local competition.

17-30 NOVEMBER 2020 betterRetailing.com

*Source: Confectionery Brands Penetration | TOTAL MARKET | 14-Jun-20 | 52 w/e ® Reg. Trademark of Société des Produits Nestlé S.A. Illustrations for illustrative purposes only.

*Source: Confectionery Brands Penetration | TOTAL MARKET | 14-Jun-20 | 52 w/e ® Reg. Trademark of Société des Produits Nestlé S.A. Illustrations for illustrative purposes only.

CATEGORY ADVICE SAVOURY SNACKING

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SAVOUR THE OPPORTUNITY With shoppers settling in for the winter, TAMARA BIRCH takes a look at savoury snacking and explains how retailers can ensure they have the right range for Christmas 2020

FESTIVE TRENDS IT’S no secret that 2020 has been challenging, and with tighter Covid-19 restrictions in place in England and throughout the UK, shoppers are cautious about where they shop.

March saw the return of the big weekly shop, and Matt Collins, trading director at KP Snacks, says the convenience market is growing 2.7% year on year, with 90% of UK shoppers now visiting a convenience store more often.

As we enter the colder months and the festive season, shoppers will be looking to top up. While it’s uncertain how Christmas will be this

year, catering to predicted trends is a simple way to make sure you’re meeting the needs of your customers.

Suppliers have predicted that ‘being together’ will be a main focus for the festive season in savoury snacking, whether that’s together in person or virtually. Scott Snell, vice president of customer at Pladis UK & Ireland, says focusing on larger formats and stocking bestselling lines will be key.

“In June, independent retailers’ sales increased by 33%, compared to the same four weeks in 2019,” he says.

“We expect this will remain the case throughout the festive season, with shoppers relying heavily on convenience stores. As a result, it’s vital retailers stock up on the core, bestselling products, as well as festive lines to drive excitement.”

To drive festive sales, crossmerchandise savoury snacking products with related categories, such as alcohol. To help the area stand out, invest in inexpensive signage, for instance from somewhere like Amazon, to point shoppers in the right direction and entice additional purchases.

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HEALTH WHILE England is now back in lockdown, there’s an opportunity for retailers to offer a selection of healthier savoury lines for healthconscious consumers. In fact, new research by Eat Real, a healthier snacking brand, shows that while flavour is the top driver for purchase (81%), 80% of shoppers are also looking for lower fat content.

Helen Pomphrey, marketing director at Eat Real, says: “Stocking a healthier snacking brand can help retailers meet demand for lower-calorie lines and gain an edge over competitors.” Meanwhile, free-from lifestyles are increasing for several reasons, whether it’s for health, lifestyle or ethical concerns.

KP Snacks’ Matt Collins says 22% of shoppers cite health as the most important factor when buying crisps and snacks, while 51% say flavour is the main factor behind their decisions.

As a result, the supplier launched Hula Hoops Puft, which contains less than 72 calories a pack, and Popchips to help retailers cater for the demand of flavour and health brands.

Low-calorie products might be all you need, but the market is increasingly moving towards higherprotein diets. If you haven’t already, introduce a range of nuts, such as KP Nuts, to offer a snack product to customers looking for something to meet that need.

THREE top tips Stock a value range Value is becoming a more prominent shopper mission across several categories, so why not get ahead of the game and introduce a value range if you haven’t done so already? Alternatively, run a special offer or consider if price-marked packs (PMPs) are right for your store.

Don’t underestimate health Similar to value trends, health is becoming more important to shoppers. While winter and tighter Covid-19 restrictions will have some shoppers reaching for comfort food, others will be reaching for those lighter snacks, so offer both options to become a one-stop shop.

Be festive Retailers often have a seasonal area for confectionery and alcohol, but why not offer a selection of savoury snacking sharing packs? Also, create in-store theatre by decorating the area to prompt spontaneous purchases and convert browsers into paying customers. Consider a second siting of snacks near your alcohol as well.

SUPPLIER

COMMUNICATING VALUE THE UK is in recession and shoppers are probably going to be watching their outgoings and looking for ways to make their finances go further. As a result, suppliers, such as PepsiCo, recommend stocking a range of sharing bags and multipacks.

Matt Goddard, wholesale trading director at PepsiCo, says: “Since lockdown began, there’s been a decrease in sales of single-serve products, but an increase in sharing and multipack sales. With fewer people on the go, multipacks

have increased by 63% compared to pre-Covid 19 sales.”

Bestway’s trading director, Kenton Burchell, offers similar advice and says sharing bags will continue to grow. “The sharing segment is currently worth £1.2bn and growing by 8.4%,” Burchell explains. If space permits, add a selection of sharing bags, such as McVitie’s Jacobs Mini Cheddars, to your display to capture shopper attention.

Stocking a selection of PMPs reassures shoppers they’re getting the best deal. Pladis’

Snell says retailers should stock a range of bestselling lines in PMP format. “Thanks to the enhanced volume of sales which PMPs generate and the growing popularity of PMPs – increasing by 11.5% – retailers can be confident they will continue to help them generate profit,” he says.

PMPs aren’t for every retailer, so, as an alternative, consider implementing a new promotion to increase spend and advertise this on social media to remind shoppers of the value you can offer in store.

VIEW

Scott Snell, vice president of customer, Pladis “INDEPENDENT retailers’ New Year’s resolution should be to never run out of stock of the bestselling largerformat savoury snacks. Crisps and snacks is one of the largest core snacking categories (worth £2.25bn), so there is a significant opportunity for retailers to make the most of this by stocking products which best align with current trends, such as ‘being together’.

“Sharing formats, for example, have played an important role in bringing families and households together during a tumultuous 2020, and when you couple this with the fact that PMPs generate a third of sales in the convenience channel, we’re confident these can help drive sales, such as Jacob’s Mini Cheddars Smoky BBQ, which is now available in a PMP format.”

CATEGORY ADVICE SAVOURY SNACKING

32

TOp products Doritos Stax Launched in April, Doritos Stax has an RRP of £2.50. The crisps are available in three flavours in 170g tubes, including Ultimate Cheese, Sour Cream & Onion and Mexican Chilli Salsa. PepsiCo’s Matt Goddard says the launch “gives shoppers the chance to try something a little less ordinary with our biggest launch to date. This new take on the popular tortilla chip has added some excitement to the cannister snacks segment which traditionally has appealed to an older audience.”

Jacob’s Mini Cheddars Mexican flavours Jacob’s Mini Cheddars Mexican flavours are available in Lime & Chilli, Nacho Cheese & Jalapeño and Chipotle Chicken Wings – with an RRP of £1.89. The launch aims to help retailers make the most of the brand, which is currently worth £70.3m. Also available to independent retailers is Jacob’s Mini Cheddars Smoky BBQ in a £1 PMP format.

McCoy’s Hot Mexican Chilli PMP Retailers can now stock McCoy’s Hot Mexican Chilli, Popchips BBQ and Sour Cream & Onion in £1 PMPs. According to KP Snacks, the £1 PMP formats aim to help retailers drive impulse purchases and excite shoppers.

The PMP formats launch follows an increase in savoury snacking, with crisps, snacks and nuts showing up in 70% more convenience baskets during lockdown.

SUPPLIER

VIEW

Matt Goddard, wholesale trading director, PepsiCo “TAKING a few simple steps, such as refining your crisps and snacks range, adjusting your fixture layout and displaying what you have to offer with a little PoS, can be all it takes to increase your sales. Jason Sichel, of Spar Holmer Green in High Wycombe, for example, saw his crisps and snacks sales grow by 22% in just three weeks, thanks to guidance from his Walkers sales development rep, which include our top tips for boosting sales.

“We recommend retailers stock larger PMP sharing packs to capitalise on evolving needs and use social media platforms and PoS to remind shoppers of the range you offer. Also, get behind promotions, such as our Doritos PlayStation 5 on-pack promotion, to add some theatre and excitement in your store.”

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‘YOU NEED TO MAKE A SAFETY NET’ With the future more opaque than ever, THE RETAIL EXPRESS TEAM speaks to three retailers about running a store in unpredictable times

THE PROBLEM Lockdown is back and nobody knows how long for, the UK is battling a recession and nobody knows what 2021 will bring.

These are the most uncertain times many of us will have seen in our lives. So, how can independent stores prepare for the unpredictable?

1

Jacqui Dales, Spar London Road Bakery, Boston, Lincolnshire

“YOU NEED TO make a safety net where you can. We have our staff working in bubbles – so they’re always on shift with the same people. This means if we do get a case of Covid-19, it won’t hit the whole team.

“You’re reliant on gut feeling and your customer knowledge, especially when ordering. We’re putting in our orders for Easter at the moment, but it’s impossible to know what the situation will be. We’ve erred on the side of caution, and if we don’t have enough we’ll use wholesalers to top up nearer the time.

“Last Easter, when lockdown had only just started, we set up an Easter Bunny delivery service – delivering chocolate eggs to people’s homes – and we also started doing isolation hampers for those stuck indoors. Both were popular and we’ll look at something similar again this year. When sales are unpredictable, you’ve got to �ind new opportunities where you can.”

2

Trudy Davies, Woosnam & Davies News, Llanidloes, Powys

“TO KEEP THE business strong in uncertain times like the coronavirus pandemic, we keep doing what we do best, really, which is servicing our community with what they want and delivering it to them. For instance, we collect used postage stamps for the Meningitis Trust, which uses the funds from reselling them for research, education and support. We also give free coffee to key workers who are working through the pandemic, and give wool and baby clothes to hospitals all over the UK. Aside from this, we support initiatives like the Poppy Appeal.

“I think this keeps our business strong because our customers appreciate the things that we get involved in and that makes them appreciate us. They see us as the �irst to get involved in the community and so they support the store. A close community bond is the way to build loyalty with customers and keep business strong.”

3

Sophie Towers, One Stop Kibble, Burnley, Lancashire

“WE HAVE ADAPTED to keep the business strong in uncertain times like the coronavirus crisis. Initially, the struggle with maintaining stock was hard during the pandemic, so we went to the cash and carry. Fortunately, we do not have any issues with stock coming through anymore. Staff self-isolating due to exposure can also be tough, but all my staff work as a team to support each other.

“Although it’s been a very stressful time for everyone, a lot of positives have come from the pandemic for people who own convenience stores. For instance, there have been increases in trade, and people are shopping locally again and supporting family businesses instead of large shops. Also, local communities have all really pulled together to support each other. Although these are uncertain times, some convenience stores are actually thriving. Many retailers I’ve spoken to feel the same.”

Facing a challenge? We’ve teamed up with the betterRetailing.com Support Hub and the IAA to provide a helpline for the answers you need. Call 020 7689 0500, email iaa@newtrade.co.uk or visit betterRetailing.com/coronavirus