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FORECOURT FINANCES
How two forecourts sourced the funds for their biggest innovations P19 2021 19 OCTOBER-1 NOVEMBER g.com betterRetailin
US FORECOURT FOC FEATURE
HOW WE FINANCED OUR BIGGEST INNOVATIONS
rt is Investing in your forecou remain key to ensuring you but rm, successful long-te nance it can knowing how to fi A BIRCH be a challenge. TAMAR about how talks to forecourts biggest ideas they financed their
ONS WE USED OUR OPTI
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banks didn’t helped for example, loan, which he says as the provide us with any support higher investmade with the application Mo- were a much or reassurance, which using the forecourt, so they manager was familiar with the NICK Blight, of Blights Devon, ment for me think twice about tors Bideford in north new till financed this via bank loan. in a through business. worked with him them again. recently invested “It was all done “We’ve “We “We also have a workshop, still and the inand while we’re system and fuel pumps. buy equipment, – the old Lloyds back, it’s not some- for years came a so when we at it had little choice on a lease or installed by payingwe notice as it’s built stallation were we buy them large system had been time when banksgood in- payment plan. If I did a group, BP, thing budget,” he says. a with like we did our previous fascia the loans with a into investment again why offering and wasn’t compatible had in “We had to explain good terest rate,” Blight explains. fuel pumps, I’d rewe a worked with the lot of the processes and set up a paythe pumps were to do a Although it all more search and had Blight says the interest place,” he says. out in the end, were investment ment scheme as as large Blight and his family new business plan.” likely do things the rates aren’t normally with he would able to self-finance The retailer worked un- differently for his next invest- as a bank loan,” he says. an influx of to the pandemic, till system, after business manager of the ment. “Over and higher a new customers derstand the legalities however, sales. The pumps,
19 OCTOBER-1 NOVEMBER 2021 STRICTLY FOR TRADE USERS ONLY
Rachael Hockmeyer, Spar Sleaford, Lincolnshire is, and depends on how cash flow “FINANCING depends there are with loans. When we have on what sort of deals sometimes I’ve used bank loans past, or fuel deals. done things in the used hire purchasing we’ve done and sometimes I’ve for 20 years and “We’ve been a forecourt times depending on our different trade bodies to different things at gone through any situation. We’ve never we’ve just trusted our own ability. look for financial advice, for the best deal. Instead, I around but I don’t tend to shop I trusted the people, where would choose somewherelooked after us and I deal a lot who’s days.” I do have a broker I would go to these with Lombard, who
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his The retailer upgraded in Susto add doors to further A FORECOURT retailer store to chillers energy usage. “We sex expanded his customers, reduce to install entirely better serve local shelving didn’t want as the investadding chillers and chillers were the new we units. The chillers wasn’t worth it, so investment ment different compaforecourt’s largest years ago, researched adding on doors,” since its opening 20 nies about The forecourt worked totalling £30,000. adds. he of rid “We wanted to get were with Pastorfrigor, who carried they survey before addour older chillers as a lot of out a free The total investment outdated and using “Another ing doors. electric,” he says. was £7,000. the could self-finance decision was for sustainability “We they sure ow because our cash fl reasons and to make cient as chillers done bouncewere as energy effi cut- was good. We’ve less they could be, ultimatelycosts back loans, which is a lling ting down our overhead approach of fulfi invest in risky he says. and enabling us to your investments,” other areas of the business.”
Not every fuel customer to have IT’S also important to go inside to pay, options wants a paythe right payment which is where having for customers as convenience at-pump option on your forebecomes a top mission. Apple court comes in. Pay-at-pump While the likes of have can be a costly investment don’t some will be able and Google Pay contact- and while nance, another oplimits on payment, capped at to self-fi secure a bank loan, less cards were is tion to plan. £45 – until recently. is lease or a paymentresearching Contactless payment but The key is £100, available to you. now capped at shoppers the options broker, some banks allow Start by asking your to set their own limits. con- trade bodies or banks about and the options Similarly, have you till to your plans start a sidered using a mobile to finance them. Next, complete any apbetter serve your customers? Bud- timeline to Goran Raven, of Raven’s uses plications and make sure they your installawith gens in Abridge, Essex, line reduces are in Train your staff this and not only those tion dates. queues, but ensures served how to use this in the event are paying by card something stops working. quickly and efficiently.
Left to right: Jack Abadi, Mollie Stewart-Dodd and ‘Lord’ Ali Abadi were alleged to be acting as representatives of Re-Rates UK. Re-Rates UK strongly denied Ali’s involvement when asked and denied claims it had mistreated customers. Re-Rates UK said it was “striving to be a highly ethical company”
‘SCAM’
LORD RETURNS
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‘SCAM’ P3
EXCLUSIVE: Business rates ‘con artists’ allegedly back targeting independent retailers
‘I WORK LESS AND MAK E MORE’
How a near-death experience changed Mind Paul’s approach to retail y BACK PAGE
LEXOP RD OSED
EXCLUSIVE: Busines s rates ‘con JACK COURTEZ
THE man behind a failed business rates scheme that cost retailers thousands of pounds has been exposed by source s close to him. Self-described ‘Lord’ Ali Khalil Abadi has breached a director’s disquali�ication order, accordi ng to sources, by being involved in Atrium Investment the running of Source: The Bolton Group News targeted small busines (AIG), that ses, including received newsagents, in an rates relief from their alleged local council, Brookland Under the arrange scam. Trading demandbusinesses paid AIG ment, small ed 25% of the savings Brookland Trading – operating as often many thousan for three years, – £300 after beds of pounds . ing promised that The council’s decision they could appeal s to hand out their business rates. rates relief were unrelat ed to Brookland Trading. However, in many instances, Brookland Trading Describing the compan failed to turn up y, one forto the appeal and refused to answer mer employee claimed: “They are calls. Later, after the simply con artists small businesses and should be closed down.”
artists’ that targeted independent retailer Harry Singh Rai, s identified owner ‘Lord’ Ali Abadi with
partner Mollie StewartDodd
of K&H News in Manche ster, paid £900 to had already been scammed,” he told Brookland Trading Retail Express. may have breache . Despite not subd his director’s dismitting evidence to quali�ication order, Abadi, now aged 33, the which was disquali- nal ing up to the appeal appeal, turn- �ied from acting offence and can lead is a crimias a director of or answering to imprisona Singh Rai’s calls, Brookland Trading company for 10 years in 2011 for ment for up to two years. invoiced the store Retail Express underst owner for a further malpractice due to his involvement ands that £900, before threate in 123 Finance and he has been reporte ning legal action 3 d to the Serious Step Finance , Fraud Of�ice, and after he refused to a debt consolidation pay. that at least one forfound to have misled �irm that was mer customer is Les Gilbert, from beginning civil progents in Somerset, Chard Newsa- fore using compan customers be- ceedings against the busines y funds to pay off began warning others about Brookla personal debts. When asked to comme s. nd Trading in nt, ‘Lord’ Ali July 2016 and has Khalil Howeve Abadi r, in denied any Novemb said he saved several retailers from di’s partner, Mollie er 2016, Aba- in Brookland Trading involvement being caught out . Stewart-Dodd, by the company. now aged 23, set Gilbert warned retailer up AIG. Despite it s to “never being say ‘yes’ “Brookland Trading were calling work, Mollie’s name on the paper- agreem over the phone, get details of four-to-�ive times one source told ents in writing an hour at one point, that’s when that Abadi was “the Retail Express anyone can appeal and know that thing wasn’t right. I knew some- strings”. An ex-empone pulling the out using an agency.”their rates withI published a loyee added: blog about them and I’ve since had “There is no doubt that Ali Abadi was people call me asking the head honcho.” for information, and others Read other retailers’ By being involved calling to say they experiences with business ment of the compan in the managey, it seems Abadi rates appeals firms p3
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Retailers forced to work additional hours amid recruitment drive struggles
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our say
Megan Humphrey, editor
A Retail Express that suits your needs LAST week was a big week. If you haven’t already seen by now on Twitter, I was named in the Professional Publishing Award’s 30 under 30 class of 2021. On a personal note, this was a really proud moment. However, before you worry, I won’t be blowing my own trumpet throughout this whole column. Instead, it’s about finding out how I can better shape Retail Express to meet your needs. At the awards ceremony, I was lucky enough to listen to two editors give speeches about how you should never be afraid to try a new idea, even if you are scared. Our ‘Stubbing Out Illicit’ campaign has been running for nearly a year now and we’ve had some great successes, but deciding to launch it was a risk, knowing I had to deliver successes on the back of it. A year later, I want to take it to the next level, and I can’t do that without your input. If you have an idea about what you would like to see us doing to help tackle illicit trade, I’d like to hear from you. As well as this, I’d like to ensure you have more opportuni- IF YOU HAVE AN ties to tell me about what you IDEA, I WANT TO like and don’t like about Retail Express. I want to make sure the HEAR FROM YOU stories we are writing matter to you, and if they aren’t hitting that sweet spot then how can we ensure they do. I wouldn’t have been in with a chance of winning this award if it wasn’t for you alerting me to the issues you were facing. With that in mind, I want to encourage you to continue getting in touch so we can lobby for change and strive to ensure independent retailers are treated equally across the whole market.
The five biggest stories this fortnight 01
Staffing shortfall means longer shop owner hours ALEX YAU
INDEPENDENT retailers have had to take on additional hours to help �ill gaps caused by a shortage of shop staff. According to store owners across the UK, the pandemic has led to issues hiring shop �loor store staff, with one retailer claiming this had
been the �irst time they experienced recruitment issues in decades. The issues have resulted in store owners taking on extra hours. Shabaz Ali, of Bestone Falkirk in Scotland’s Central Lowlands, told Retail Express: “People come in, you train them up and they leave after a week. “I’m lucky I’ve got my wife
and kids helping me at night. Lately, I’ve been doing an additional 24 hours a week myself.” Mike Nichols, of Costcutter Dringhouses in York, said he has also worked additional hours on the shop�loor and is aware of other retailers who are looking to sell their stores due to the issues. Another retailer, who asked
not to be named, added they have lost �ive staff members who have gone on to start their own convenience stores. The issues with staffing have been attributed to potential employees wanting higher graduate-level salaries or becoming accustomed to hybrid working from home patterns during the Covid-19 pandemic.
PLEASE CALL US ON 020 7689 3357 OR EMAIL MEGAN.HUMPHREY@NEWTRADE.CO.UK @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 3357 Features editor Charles Whitting @CharlieWhittin1 020 7689 3350 Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361 Editor in chief Louise Banham @LouiseBanham Production editor Ryan Cooper 020 7689 3354 Sub editor Jim Findlay 020 7689 3373 Sub editor Robin Jarossi Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380
Editor – news Jack Courtez @JackCourtez 020 7689 3371 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355 Features writer Jasper Hart 020 7689 3384 @JasperAHHart Junior designer Miriam Garofalo Production coordinator productioncoordinator@ newtrade.co.uk 020 7689 3368 Director of sales and marketing Matthew Oliver 020 7689 3367 Senior account director Charlotte Jesson 020 7689 3389
Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379 Senior news reporter Alex Yau @AlexYau_ 020 7689 3358 News reporter Suhara Pavithri Jayasena @suharajourno
Payzone in Tesco
PAYZONE is to replace nearby Payzone and Post OfPayPoint services in 460 �ice sites. A CWU spokesperson Tesco Express and Extra stores, with some newly add- warned if parcel pick-up ed sites less than 200 metres and drop-off services were away from competing inde- included at the Tesco sites, “poached” parcel volume could pendent retailers. The switch began last make some nearby Post Of�ice month, bringing concern to branches “unsustainable”.
Account manager (new business) Jimli Barua 020 7689 3364 Management accountant Abigayle Sylvane 020 7689 3383 Managing director Parin Gohil 020 7689 3375
42,281
03
NFRN’s new president
BIRMINGHAM retailer Narinder Randhawa has been elected as the NFRN’s new national president at this year’s 101st Annual Conference, winning 51% of the vote. He has taken over from Stuart Reddish, who was
For the full story, go to betterRetailing.com and search ‘Payzone’
Account manager Adelice Tatham 020 7689 3366
Account director Natalie Reeve 020 7689 3372
Subscribe online at newtrade.co.uk/our-products/ print/retail-express. 1 year subscription: UK £65; overseas (EU) £75; overseas (non-EU) £85 Retail Express is printed and distributed by News UK at Broxbourne and delivered to news retailers free by their newspaper wholesaler. Published by: Newtrade Media Limited, 11 Angel Gate, City Road, London, EC1V 2SD; Phone: 020 7689 0600
02
04
Natasha’s Law
TWO-THIRDS of independent retailers are selling food to go in breach of Natasha’s Law. The legislation was introduced on 1 October, requiring businesses that prepare and pack fresh food for direct sale on site to list all the ingredients and allergens included
on the packaging. Mystery shop visits by Retail Express to 23 shops across London, Liverpool and Manchester between 1 and 4 October found 60% of 15 retailers selling affected lines, such as bread and salad pots, were not compliant.
�irst elected in June 2019. Randhawa successfully challenged vice president Muntazir Dipoti for the top post. It is believed to be the �irst time in the NFRN’s history that a challenger candidate has beaten the vice president to take the highest of�ice.
For the full story, go to betterRetailing.com and search ‘Narinder’
05
PO replaces Horizon
THE Post Of�ice (PO) is replacing Horizon with a newcloud-based system in its new ‘Drop & Collect’ formats next month. PO chief executive Nick Read revealed the news at the �irm’s ‘We are Post Of�ice’ conference in Coventry on 7
October. A dozen Drop & Collect branches are expected by Christmas, using the new cloud-based system. More than 170 postmasters have been involved in “shaping the design of the new system”. Horizon is set to be replaced entirely by 2025.
Audit Bureau of Circulations July 2020 to June 2021 average net circulation per issue
Retail Express’ publisher, Newtrade Media, cares about the environment. Reproduction or transmission in part or whole of any item from Retail Express may only be undertaken with the prior written agreement of the Editor. Contributions are welcome and are included in part or whole at the sole discretion of the editor. Newtrade Media Limited accepts no responsibility for submitted material. Every possible care is taken to ensure the accuracy of information. No warranty for goods or services described is implied.
For the full story, go to betterRetailing.com and search ‘Natasha’
For the full story, go to betterRetailing.com and search ‘Post Office’
@retailexpress facebook.com/betterRetailing
19 OCTOBER-1 NOVEMBER 2021 betterRetailing.com
megan.humphrey@newtrade.co.uk 020 7689 3357
03
FORECOURT FINANCES
How two forecourts found the finances for their biggest innovations
Re-Rates UK ‘preying’ on small shop owners
GOOD WEEK P17
19 OCTOBER-1 NOVEMBER 2021 STRICTLY FOR TRADE USERS ONLY
ing for myself is Murtada Abady and not Abadi. As “CON-ARTIST” and self- mentioned previously, the styled ‘lord’ Ali Abadi has spelling is similar, but not once again been named the same.” One of the former staff by former colleagues as being involved in a busi- members con�irmed that ness rates �irm “preying” independent convenience stores and newsagents on small businesses. In 2018, Retail Express were among those targeted revealed Ali Khalil Abadi by Re-Rates UK. Sources breached a court order described scenarios where banning him from running businesses were promised a company until mid-2021 a reduction of their busiby setting up Atrium Invest- ness rates for an upfront ment Group under his part- fee and a share of any savings. However, even in inner’s name. Last week, Ali Abadi and stances where no savings his close associate Jack Aba- were achieved by Re-Rates di [pictured together] were UK, customers claimed they again accused of running received invoices for thouanother rates revaluation sands of pounds. A former staff member company – OverRatted (sic) Rates Ltd, trading as Re- explained: “We would freRates UK – by online news quently be instructed that if site the Leicester Citizen. such a person calls to hang Speaking to Retail Express, up immediately. This haptwo former staff members pened a lot and was mostly and a former customer al- people who had had money leged that both Ali and Jack taken from them and had Abadi were closely involved. not received a reduction in Jack Abadi’s own social me- their business rates. Often dia accounts also described this wasn’t just for the �irst him as the ‘CEO’ of Re-Rates payment, but secondary UK. All sources and a lead- payments, too.” One former customer ing chartered surveyor shown Re-Rates UK’s com- agreed, stating that they mercial terms described the paid nearly £1,000 upfront company as “ripping off” after a visit by Re-Rates representatives they idensmall business owners. All claims made by these ti�ied as Ali Abadi and his sources were strongly de- partner, Mollie Stewartnied by Re-Rates UK compa- Dodd, after seeing a picture ny director Murtada Abady. of them. “We waited months He told Retail Express: “Ali and nothing happened, Jack Abadi is in no way associ- [Abadi] took over and said ated or involved in any way we should get a reduction with Re-Rates UK or my- soon. I didn’t hear anyself. Please note the spellSTAFFING WOESthing and our rates didn’t MEGAN HUMPHREY
JISP: Chief customer officer Greg Deacon said the company’s app could remove the need for stores to collect bottles delivered to homes in upcoming deposit return schemes. A proposal by Jisp, seen by Retail Express, includes a QR code-marked bag included with goods. For the full story, go to betterRetailing.com and search ‘Jisp’
BAD WEEK
Jack Abadi, Mollie Stewart-Dodd and Ali Abadi pictured together at a nightclub
decrease, but after three months we were sent an invoice for further payment. I asked for proof that they had got us a reduction and they didn’t answer. We refused and received a court summons, but as soon as we �iled a defence it didn’t go to trial because they never responded[…] That’s what they do, they threaten people but there’s nothing to back it up.” Another former customer said they had been invoiced for more than £9,500 because they said the terms of the contract entitled ReRates UK to 18%+VAT of any INSURANCE DELAYS
reduction in their business registered with the Valurates, regardless of whether ation Of�ice Agency, with the reduction was due to clients able to monitor the efforts of Re-Rates. For their case online, and coninstance, when Covid-relat- �irmations sent by the VOA ed business rates relief was itself when their rates are automatically applied to reduced. “We never had any comtheir rates, they claimed ReRates UK invoiced for 18% plaints from the council and never had complaints from of this reduction. When asked if Re-Rates customers. We get the recharges customers for rates duction, we invoice them, relief applied to their cus- we try and keep our customer’s business rates, a tomers happy all the time,” spokesperson for Re-Rates, he said. Murtada Abady said: “As who only identi�ied himself as ‘Jack’, responded: “I’m per our contract, we can not going to sit here and only invoice our success fee explain the whole process,” once we have succeeded in achieving a reduction.” but said that Re-Rates was CHEERS FESTIVE
P3
EXCLUSIVE: Business rates ‘con artists’ back targeting independent retailers
Retailers forced to work additional hours amid recruitment drive struggles
express yourself
P2
“THERE was something from the government yesterday about them providing more support to factories so that they can continue to trade despite the energy increases, but convenience store retailers should be getting that support as well. We need to campaign for it. There has been no mention of retailers by the government. We have kept going and were working the whole way through the pandemic and now our bills are higher.” Sophie Towers, One-Stop Kibble Bank, Burnley
WHSMITH: The chain is experimenting with what to stock at the counter after next year’s high in fat, salt or sugar promotions ban. After October 2022, chain, symbol and franchise stores larger than 2,000sq ft cannot display unhealthy lines at checkouts, entrances and gondola ends. A spokesperson for WHSmith said the trial will “introduce electrical accessories” and “impulse products in our queue management systems”.
Stores face waits of up to six months to receive payouts covering pandemic losses
the column where you P4 can make your voice heard
How retailers can create the perfect alcoholic offer this Christmas
CARD PAYMENTS: Dojo is set to increase its charges for new customers taking less than £150,000 per annum on card to 1.3% of transaction values. A representative working for Paymentsense-owned Dojo confirmed existing customers wouldn’t be affected by the new rates for stores taking less than £2,884.62 per week in card payments. BILLS: Burnley retailer Sophie Towers’ monthly energy bills have more than doubled as fears grow regarding the impact of the energy crisis on local shops. Despite speaking with a number of brokers, Towers said the cheapest rate she could find would cost £2,565 per month, compared with £1,250 on her current fixed-term contract tariff. For the full story, go to betterRetailing.com and search ‘energy’
P22 next government How do you want the to support local shops?
“EVERYTHING the government has been saying has never mentioned small businesses. They are never making any promises for us. Where is the recognition from the government to us for going the extra mile during the pandemic. We have paid the ultimate price. So many shopkeepers have made sacrifices and we have not been appreciated by the government. They need to help convenience stores and can do this by reducing VAT for small businesses.” Manish Mehta, William’s News, Streatham
“WE need more clarification over business rates. I personally think that they should be scrapped altogether. I don’t think it is a very competitive. If you look at online businesses, they can trade online and do not have to pay any rates. I think retailers should be rewarded for keeping our premises open in the modern market. If business rates can’t be removed, then they should at least make the process simpler.” Amrit Singh, Nisa Local High Heath, Walsall
Do you have an issue to discuss with other retailers? Call 020 7689 3357 or email megan.humphrey@newtrade.co.uk
Amrit Singh
NEWS
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19 OCTOBER-1 NOVEMBER 2021 betterRetailing.com
Insurance payout ‘waiting game’ MEGAN HUMPHREY SMALL businesses face waits of up to six months to receive insurance payouts covering losses brought on by the pandemic. Last September, the High Court ruled that small stores suffering a reduction of trade due to Covid-19 closures could claim for losses, subject to policy limits. The companies included in
the case were Arch Insurance, Argent Syndicate Management, Ecclestical Insurance Of�ice, MS Amlin Underwriting, Hiscox Insurance Company, Royal & Sun Insurance and Zurich Insurance. However, last week, Capital Law’s senior lawyer, Catrin Povey, told Retail Express that getting a payout remains a “waiting game”, despite the Financial Conduct Authoity ordering �irms to pay compen-
sation at the “earliest possible date to support businesses”. “The courts are really backed up and it’s taking a while to get decisions through,” she said. “I expect this to be the case for at least another six months. Out of 100 cases we are dealing with, we have only reached a �inal decision for one.” As a result, Povey revealed some business owners have given up. “We’ve had clients
who can’t be bothered to keep pushing because it’s so time consuming,” she said. “It’s understandable when retailers have had other priorities since reopening post-pandemic, like wanting to make money that they have lost.” When asked what stores can do to better their chances of reaching an outcome sooner, Povey urged them to continue gathering evidence. “Some retailers who’ve had
The innovators shaping the future of independent convenience retail Winners announced! Don’t miss the special edition of RN, on sale 29 October, where we reveal the winners of RN’s inaugural 30 under 30 initiative, and the reasons why they won Order your copy from your magazine wholesaler today
“
The entries we received were all outstanding – showcasing the exceptional young talent working in independent convenience retail across the UK
Jack Courtez, RN editor and lead 30 under 30 judge
RN 30 under 30 shines a light on the rising stars working in independent retail – those who are making real differences to their communities and customers, and to their own bottom lines. After a year like 2020, when independent retailers across the UK went above and beyond, it’s time to reward and celebrate those who are making a difference.
With thanks to our supporters
to prove Covid-19 was on their premises as a reason for closing have been able to obtain text messages between customers proving they were experiencing symptoms,” she said. “Putting out messages on social media has been useful for them. The Financial Ombudsman said it’ll take this as a form of evidence. I advise retailers to keep conversations going with customers as much as possible.”
If you have still not received a payout you are entitled to, call Retail Express on 020 7689 3357
Handepay’s new offers
CARD payment provider Handepay is supporting the launch of a new onemonth rolling contract, providing a more �lexible and simple service. This is immediately available to all customers switching their card machine from
another provider and will initially run from October for a trial period. In parallel to the one-month contract launch, the �irm is also supporting the offer of a 12-month contract to any customers new to card payments that sign up to the service. For the full story, go to betterRetailing.com and search ‘Handepay’
JACK’S SYMBOL GROUP SCRAPPED THE Jack’s symbol group is to be discontinued and Booker is replacing Happy Shopper, Farm Fresh and Discover the Choice own labels with the Jack’s brand. The discount format, launched by Tesco in 2018, was made available to independents as part of a trial in October 2020. The first Jack’s retailer, Mo Razzaq, who converted his Family Shopper in Glasgow, said he will switch
to the Premier fascia. Two other stores are also set to convert to a Premier and Budgens after the trial.
To read Booker’s statement, go to betterRetailing.com and search ‘Jack’s’
SimplyFresh to Spar FOLLOWING the closure of Sainsbury’s wholesale division and partnership with SimplyFresh, retailer Ajay Odedra has switched his store in Essex from SimplyFresh to Spar. The Spar store relaunched on 20 September. Odedra said the process was “quick and
ef�icient, with supply being switched within a week”. More than 60 stores supplied by AF Blakemore have moved across to Spar this year and another 80 are due to join within the next six months. For the full story, go to betterRetailing.com and search ‘SimplyFresh’
M M M ... G O R D O N ’ S F L AVO U R S . DECISIONS, DECISIONS GORDON’S SKUS OCCUPY THE TOP 8 SPOTS IN IMPULSE*
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Variety packs lead cheese sales STOCKING up on a variety of premium cheeses and selection packs this festive season will be key to growing sales in the cheese category, Lactalis UK & Ireland has advised. The supplier recommends offering hard and soft speciality, premium, hot eating and blue cheese, alongside selection packs, as these varieties all see the highest sales increase during December compared with other times of the year. Over the past three years, 72% of December cheese
volume sales came from speciality cheeses, which soar in popularity just for Christmas, it added. The cheese types that see the highest sales uplifts during December include baking brie, breaded baking cheese, baking camembert, gorgonzola, Danish blue, blue stilton, dolcelatte, wensleydale, extra mature cheddar, emmental and �lavoured varieties, selection packs (which increase by 72%), buffalo mozzarella, goat’s cheese and brie. The cheeses with the biggest volume share growth during December include selection packs, extra
CADBURY Orange Twirl is now available in a 60p pricemarked pack (PMP) following the variety becoming a permanent line after strong consumer demand. Sales of standard orange chocolate are worth £25.9m, having grown by 47%, and the �lavour is ahead of standard chocolate sales. The bar will be available to retailers in cases of 48, and is the third-bestselling
bar in the adult single confectionery segment, according to brand owner Mondelez International. The supplier added that the bar was one of topselling single-format new launches of 2019 despite being on sale for only a few weeks, being incremental to the category by attracting younger adult shoppers and driving category growth of 3.4% when it launched.
PRIYANKA JETHWA
mature cheddar, mature cheddar, �lavoured varieties, blue stilton and brie. Héloïse Le Norcy-Trott, group marketing director at Lactalis UK & Ireland, said to further capitalise on sales, it recommends introducing popular cheese types even earlier in the year, as seasonal cheeses see a 34.8% volume sales increase during October and November.
To find out how much more consumers are spending in the cheese category during Christmas, head to betterRetailing.com and search ‘Christmas cheese’
Opihr gets inspired by the Middle East QUINTESSENTIAL Brands has added a Black Lemon �lavour to its Opihr gin range, based on �lavours from the Middle East. The launch will also be supported by in-store PoS using the tagline ‘Let the taste take you there’. The supplier said: “In a category as crowded as the gin segment, Opihr Gin has stand-out appeal; it’s a
brand that catches the eye on shelf thanks to its design, but its appeal also extends to its taste, with the innovative and on-trend �lavour propositions.” Available now with an RRP of £23 (70cl), the brand partnered with recipe box company Gousto for Flavourlust as part of the two-day pop-up ‘foodie experience’ that took place last month.
Cadbury Orange Twirl gets PMP option
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ACADEMY IN ACTION
19 OCTOBER-1 NOVEMBER 2021 betterretailing.com
07
The Independent Achievers Academy (IAA) is a learning and development programme that helps to increase sales and profits. Academy in Action shows how the IAA and its partners are supporting retailers to improve their stores.
We’re here to help. Call 020 7689 0500 Name: Shop: Location: Size: Staff:
Asim Iqbal Roslin Convenience Store & Post Office Roslin, Edinburgh 500sq ft Four full-time, one part-time
PARTNER ADVICE
MARKETING TO CUSTOMERS In week one of a 10-week programme, the IAA and RN help ASIM IQBAL in Roslin, Edinburgh, improve his online presence and his marketing techniques MARKETING to customers is about advertising your store to drive footfall and repeat visits. Retailers doing this well have up-to-date information about their store readily available online and ensure their shop fronts are clean and clearly highlight their offering. Asim Iqbal runs Roslin Convenience Store and Post Office with his family, which underwent a major refit in March 2020. Asim documented the refit on Facebook, along with symbol group promotions. His next step is to find the right tools to make the store’s Facebook page more personal, boost engagement and better market his store. How can the IAA and RN help?
Want to know more? To see more of Asim’s shop, and find out how you can improve your store, go to betterRetailing.com/Academy-in-Action
Marketing in store and online is key to attracting new customers. By making these changes, I’m sure Asim will see a rise in spend. Jack Courtez Editor RN
YOUR ACTION PLAN 1 Walk your store as a customer
Use the benchmarks below as a checklist to see what you’re doing well.
2 Benchmark your shop
WHY I TAKE PART I’ve made a lot of changes in my business in the past 18 months, including undergoing a major refit. The refit has helped to increase our engagement online and in store, but we’d like to grow our followers and add more variety into our posts to interact with shoppers outside the store, and increase spend. I’m positive the action plan agreed today will help me to achieve this.
IAA ADVICE Ensure customers can easily find out about you online
Encourage customers to shop with you more frequently
Make your marketing more engaging
Asim regularly posts on social media and his shop is listed on Google, but struggles to fully showcase what his store offers. With new houses nearby, what can Asim do to help show potential customers they can rely on him?
Asim has an elderly customer base that he would like to market his range to specifically, but most aren’t using social media. How can Asim target this demographic and showcase his range?
Asim uses supplier materials on social media to push new products and promotions, but he wants to make his page relevant and more personal to attract local customers. What can Asim do to drive footfall in his local area?
Jack says: “Shoppers rely on social media and Google to find local businesses, especially when on the go. Having highresolution images of the store gives an idea of what to expect. This will help shoppers moving into the area to understand why they should shop with you and build trust with your Facebook following.”
Jack says: “Newspapers are a traditional medium for mature customers, with many bought daily. Consider advertising in a local newspaper to reach this demographic. You can find the right titles by asking them what they read and what they’re looking for. This will help to uncover what they’d like to see in store.”
Jack says: “Social media is great for new promotions, but it needs to be store specific. To attract new customers, Asim could post about time-sensitive things, such as advertising their delivery service on a rainy day. Asim could also create a local hashtag for people to search and find more about what he offers.”
ACTION Update Facebook and Google with high-res store pictures of the shop to show what products you offer.
ACTION Ask customers which media they use and what they’d like to see in store to help decide where to advertise.
ACTION Create time-sensitive posts about your delivery service and promotions. Use a local hashtag to expand your reach.
Head to betterRetailing.com/benchmark to see how you can improve.
Is your shopfront clean and bright with no cracked glass or clutter? Does your signage clearly tell potential shoppers what you sell? Do you have a loyalty scheme in place to encourage repeat visits? Can you easily find your shop details online, along with opening hours and high-quality photos? Do you have a strategy of who you want to engage on social media and how to turn it into sales?
3 Pick one thing to improve on
Write it down, implement it and let us know how you get on using #IAA22
ATTRACT NEW CUSTOMERS Visit betterRetailing.com/IAA to up your marketing strategy and see how you can improve in nine other categories
Next time: Responsible Retailing
08
PRODUCTS
Richmond gets a rebrand PRIYANKA JETHWA
OPERATION 18 MYSTERY SHOP VISITS
help prevent sales to those under the age of 18. Make sure your store is ready and prepared to pass a visit:
TOP TIPS z Always look at customers to assess their age z If in doubt, ask for ID z Ensure all staff are fully trained to correctly check ID at all times REMEMBER: If your store doesn’t correctly ask for ID on 3 separate occasions, you could lose your National Lottery terminal.
HEALTHY PLAY MYSTERY SHOP VISITS help ensure you know how to provide Healthy Play information to any player who may need help with their play.
TOP TIPS z To pass you need to give GamCare details to the mystery shopper z Press the ‘Healthy Play’ button on your terminal homescreen and hand over the printout z Ensure all staff know how to provide GamCare details to a customer when needed
Freephone 0808 8020 133 www.gamcare.org.uk Rules & Procedures apply. Players must be 18+.
IMPERIAL Tobacco has redesigned Richmond’s outers to portray a more uni�ied look, following the decision to reduce its RRP from £11.25 to £9.25 last month. The Richmond range will be adjusted to offer a simpli�ied choice, all positioned within the new ‘value’ tier. This will include the varieties formerly known as Real Blue, which will now be called Original Superkings and Original Kingsize, as well as Bright Superkings and Green Filter Superkings, all of which will be available to buy in packs of 20 at an RRP of £9.25. Chris Street, market manager UK at Imperial Tobacco,
said: “As demand for value tobacco continues to grow, many consumers are looking for a familiar brand that they know will deliver satisfaction at a low price.” Some of these shoppers, he added, are increasingly buying into the roll-your-own segment, but, as a result, they tend to buy less frequently.
“Through these latest developments, we’re helping retailers appeal to these shoppers with a brand that bene�its from more than 50 years of heritage and reliable quality, with value that delivers, to inject growth into their factory-made cigarette sales,” he said.
Bird’s Custard and Ambrosia plays on premium treats appeal PREMIER Foods has launched Bird’s Custard Pods and is relaunching its premium Ambrosia Deluxe range. The custard pods are designed as a convenient way to make smooth custard that is ‘lump-free’ and comes in a wet pod format. It is also vegan. Meanwhile, its Ambrosia Deluxe range will feature a new-look can and ‘combi’ format packs that will help to extend the appeal of ambient desserts. This will all be supported by the return of its TV campaign featuring its ‘Moley’ character, on screens until January. An on-pack promotion across Ambrosia
Devon Custard and Ambrosia Rice Pudding cans will give consumers the chance to win thousands of ‘Moley’ cuddly toys in the run-up to Christmas.
Vita Coco launches chocolateflavour vegan drink VITA Coco has launched its �irst chocolate-based drink with Choc-o-lot, which is marketed as a healthier alternative to similar chocolate drinks in the market. This is because the brand said it contains 60% fewer calories and 37% less sugar compared to other drinks, and is dairy-free and vegan. Like other Vita Coco products, it also contains potassium and vitamin C, designed to be a “nutritious chocolatey treat to beat that afternoon slump”. Available now from all major wholesalers, it has an RRP of £1.99 for a 330ml carton and an RRP of £3.75 for the 1l format.
A FRESH LOOK AT YOUR SOFT DRINKS Changing your soft drink display can appear daunting. There’s a knockon effect when you move one SKU out that can create more questions than answers. Andy Pheasant from Suntory Beverage and Food GB&I (SBF GB&I) joined Andrew Cruden at his Northampton store to find out how you can simplify the improvement of your whole range.
THE RETAILER
THE STORE
ANDREW CRUDEN MARKET SQUARE NEWS NORTHAMPTON
ANDREW PHEASANT HEAD OF REGIONAL ACCOUNTS SBF GB&I
“We’ve been here now for 24 years, and during that time we’ve built up a strong customer base. But while we’ve added new products in, we haven’t properly looked at how we range our display for six years.
“While Andrew’s store is in the middle of a town centre, he knows his regular customers really well and has built a good ‘local’ feel in his shop.
“Being a town centre store, we have a lot of passing trade, as well as office workers who want to be able to find the drink they want really quickly”.
“There isn’t a huge amount of space to play with, so he needs to make sure that every centimetre delivers all it can. By looking at how his soft drinks are laid out and highlighting the biggest growing categories, he can really grow his sales.”
THE OPPORTUNITY
£800M%1 29.3%2
THE SIZE OF STIMULATION, THE FASTEST GROWING SOFT DRINKS SEGMENT OF THE LAST FIVE YEARS THE INCREASE IN BASKET SPEND SEEN WHEN SHOPPERS BUY A STIMULATION DRINK
THE LESSONS
1.
FLOW YOUR PRODUCTS BY CATEGORY
2.
GET KEY BRANDS AT EYE LEVEL
1 IRI SL Data latest 8 week data to 17.05.20 (Total Drink Later change vs. YA) 2 EXT IRI, MarketPlace, GB, latest 52 week data ending 21.02.21
3.
HOOK ONTO GROWING TRENDS
THE RESULTS
28%
TOTAL SOFT DRINK SALES UPLIFT ON PRE-PANDEMIC LEVELS4
32.8%
INCREASE IN MONTHLY STIMULATION ENERGY SALES5
THE CHANGES WE MADE STEP ONE
FLOW YOUR PRODUCTS BY CATEGORY
BEFORE
AFTER
We ranged Andrew’s soft drinks by category to make it easier for the consumer to find what they're looking for. The quicker shoppers can find something in store, the more they're going to spend. So, we have blocked by colas, which then flow into stimulation, then into refreshment energy, and then into the waters at the other end of the display. STEP TWO
BEFORE
AFTER
GET KEY BRANDS AT EYE LEVEL It’s vital to make sure the key brands consumers are looking for most often are displayed at “eye level”. In Andrew’s store, these are CocaCola, which flows into Monster, Red Bull and then Lucozade, making the biggest sellers easy to see on shelf. STEP THREE
HOOK ONTO GROWING TRENDS
BEFORE
AFTER
TO SEE MORE OF ANDREW’S SHOP AND FOR ADVICE FOLLOW @SUNTORYBF_GBI ON TWITTER AND LINKEDIN 4 Based on five-week data 23/8/19 - 30/9/19 v. 23/8/21 - 26/9/21 5 Based on five-week data 01/07/21 - 31/7/21 v. 23/8/21 - 26/9/21
At the moment, we know cans are performing really well, and we also know that stimulation is what's driving the soft drinks category. So we've made sure these drinks are really easy to find. We've also added in some new take-home options such as 900ml Lucozade Energy, because people are still looking for bigger formats.
12
ACADEMY IN ACTION The Independent Achievers Academy (IAA) is a learning and development programme that helps to increase sales and profits. Academy in Action shows how the IAA and its partners are supporting retailers to improve their stores.
We’re here to help. Call 020 7689 0500 Name: Shop: Location: Size: Staff:
Dinesh Patel The Tuck Shop Sawbridgeworth, Hertfordshire 1,000sq ft Three full-time, five part-time
PARTNER ADVICE Creating the right feel in your shop layout will make for a better shopping experience. By dualsiting key lines, I’m sure Dinesh will drive sales.
SHOP LAYOUT In September, the IAA and RETAIL EXPRESS visited DINESH PATEL in Hertfordshire to discuss ways to maximise his shop layout and enhance shopper experience CREATING the right feel for your store’s layout means thinking about the journey your customers take and arranging products in a way that improves their experience and ensures a repeat visit. Tills should have a clear view of the entire store, meaning it’s easy for customers to find and serve as a vantage point against theft and queues. Owner Dinesh Patel has run The Tuck Shop in Sawbridgeworth, Hertfordshire, for 35 years and has become a destination for gifts and greeting cards. The store is a grade II listed building, making it a challenge to improve the flow and drive sales. How can the IAA and Retail Express help?
Want to know more? To see more of Dinesh’s shop, and find out how you can improve your store, go to betterRetailing.com/Academy-in-Action
Megan Humphrey Editor Retail Express
YOUR ACTION PLAN 1 Walk your store as a customer
Use the benchmarks below as a checklist to see what you’re doing well.
2 Benchmark your shop
WHY I TAKE PART As the store is a grade II listed building, our biggest challenge is creating the right flow to improve shopper experience because we’re limited to what we can do with the space we have. Customers often struggle to locate the products they need, and we’d like to change this, whether it’s for a night in or buying a gift. I’m sure the action plan will help me to achieve this.
IAA ADVICE Arrange products and categories to boost spend
Review and improve your shop layout
Increasing profitability through your layout
Dinesh wants to encourage customers to pick up additional products on their way to the till, but it’s currently occupied by everyday products. What can Dinesh do to drive impulse purchases?
Dinesh wants to create the right flow so customers can shop efficiently. However, categories that should be grouped together, such as household, are currently in separate areas. How can he improve?
Dinesh stocks a wide range of alcohol. He wants to entice customers to try something new, but struggles to encourage shoppers to do this. What can he do to highlight his range and drive sales?
Megan says: “Household products are often bought as a planned purchase, so locating this in a prime location won’t increase spend. Moving impulse products to these areas and placing complementary lines, such as crisps and snacks, can encourage customers to pick up extra items, helping to increase spend.”
Megan says: “Dinesh’s household range is currently located in two places, but by merchandising them together, Dinesh can create a better flow for customers topping up, resulting in a higher spend. What’s more, placing them away from the till allows Dinesh to focus more on lines often bought on impulse.”
Megan says: “Dinesh has a strong wine range full of unique and branded lines. A ‘wine of the week’ promotion where a premium wine is displayed in the window and highlighted on shelf can push customers to trade up to something new. This could also entice those passing by into the shop.”
ACTION Move impulse products to hightraffic areas to encourage customers to pick up extra items while shopping.
ACTION Group categories and related products together to improve customer flow and increase spend.
ACTION Introduce a ‘wine of the week’ promotion, highlighting it on shelf to boost spend.
Head to betterRetailing.com/benchmark to see how you can improve.
Do you signpost areas of your shop to make it easy for customers to find their way? Do you group products and complementary categories together to make buying easier? Is your till area neat and tidy, and does it have a good view of the shop floor? Do you put high-margin products at eyelevel to maximise profit? Do you check which adjacencies are working and make adjustments?
3 Pick one thing to improve on Write it down, implement it and let us know how you get on using #IAA
MAKE SHOPPING A BETTER EXPERIENCE Visit betterRetailing.com/IAA to make your store easier to shop and see how you can improve in nine other categories
Next time: Effective Ranging
PRODUCTS New vodka flavours PRIYANKA JETHWA JJ WHITLEY has added a new �lavour to its range with a Blue Raspberry Russian Vodka variety that has an RRP of £16. The launch comes as the brand has invested in signi�icant marketing, including activity on Sky channels, and an upcoming outdoor campaign that will be running until Christmas.
Simon Jackman, senior global marketing manager for white spirits at Halewood Artisanal Spirits, said; “Following the launch of Artisanal Gold Vodka earlier this year, we’re continuing to expand our range with the addition of a Blue Raspberry variety. “This launch has the same bottle. Plus, the bright blue liquid provides shoppers with an opportunity to
Celebrating the Day of the Dead IN celebration of the Mexican holiday Día de los Muertos, commonly known in English as the Day of the Dead, Old El Paso has launched limited-edition packs across nine of its meal kits and sides. On shelf now until midNovember, �ive of the nine lines feature a different skull mask to cut out and collect. Each pack also displays
a QR code for shoppers to access Old El Paso’s special Day of the Dead landing page, which features recipes, quizzes and tips for putting together a ‘Mexican �iesta’ at home. To see the full list of limited-edition lines, head to betterRetailing.com and search ‘Day of the Dead’
create a range of impactful, Instagrammable serves at home.”
19 OCTOBER-1 NOVEMBER 2021 betterRetailing.com
KP Snacks launches limitededition Christmas packs of Tyrells KP SNACKS is getting into the swing of all things Christmas with festive packs of Tyrrells. Available now, limitededition themed packaging will be available across Hand Cooked Crisps (RRP £2.29) and Veg Crisps (RRP £2.50) sharing bags, including Mature Cheddar & Chive, Sea Salt & Cider Vinegar, Lightly Sea Salted, Sweet Chilli & Red Pepper, Sea Salt & Black Pep-
per and Mixed Root Veg with Sea Salt varieties. Sharing varieties are the most popular format in the category, with the category overall being important during Christmas, worth £300m during the month of December alone. Sixty per cent of consumers
say they are most looking forward to celebrating with friends and family, and 50% of consumers say snacks are a must-have for an evening in.
THEY WORK HARD Time for a proper break
£9 Old Jamaica redesigns soda range OLD Jamaica’s rebrand of its soda range will include a new look, �lavour and 2l plastic bottle format. The new Tropical variety is available now in a 300ml can with an RRP of 45p, alongside a 2l format, RRP £1.49. The packaging redesign will roll out across all four �lavours, with the 2l format extended across Pineapple and Grape �lavours. This will all be promoted via an on-pack promotion and social media. Terri Cooper, senior commercial manager at Old Jamaica, said: “Our range has proved popular with younger consumers, but to ensure its success we need to offer variety and choice.”
13
.2 5
RRP*
Our lowest price*
For Tobacco Traders Only. *Based on ITUK RRPs as at September 2021. RRP: For the avoidance of doubt, retailers are free at all times to determine the selling price of their products.
CATEGORY ADVICE SUSTAINABILITY
14
HOW 15 RETAILERS ARE BECOMING MORE SUSTAINABLE Retail Express’ publisher, Newtrade Media, partnered with SUNTORY BEVERAGE & FOOD GB&I (SBF GB&I) to run a workshop on how retailers can be more sustainable. Here are 15 pledges made by retailers on the day that can help you operate more sustainably
BEING MORE SUSTAINABLE SUSTAINABILITY is a hot topic everywhere you look and sustainable shopping is a rapidly increasing priority for many consumers. To help retailers get started, SBF GB&I and Retail Express’ publisher, Newtrade Media, partnered on a sustainability workshop in August. SBF GB&I has invested heavily in becoming more sustainable in recent years. Recently, it has invested £6m into a range of sustainable packaging updates for its Lucozade brand in 2021, and reduced Ribena’s plastic sleeve by 77%. As well
as this being the right thing to do, there are clear financial and business benefits for suppliers and retailers in investing in sustainability. Tom Gaw, channel controller at SBF GB&I, says: “More than a third of shoppers now choose to buy from sustainable brands. Over the past 18 months, we’ve made positive changes towards 100% recyclable packaging, including our Lucozade brand, which is now made using 100% recycled material.” For stores themselves, ideas and takeaways from the event included different ways of
monitoring your energy usage. For Aman Uppal, of One Stop Mount Nod in Coventry, this meant ordering a smart plug to monitor the energy consumption of his food-to-go machines. For Dilmeet Singh, of Londis Gerrard’s Cross in Buckinghamshire, buying an electric van is his next step to being more sustainable, while Sivarajah Thievanayagan, of Nisa Local in Peterborough, has plans to use his sales data to reduce waste in store and find places to donate stock near its sell-by date, such as a local farm or food bank.
SMALL CHANGES, BIG DIFFERENCE IT CAN be difficult and overwhelming to know where to start on improving your sustainability credentials. To help show retailers what’s possible, SBF GB&I teamed up with Energy Saving Trust and retailer Amit Patel, of Premier Sandiacre in Derbyshire, to show how simple changes can have a positive effect. “Our biggest challenge and energy drainer were our chillers,” says Patel. “We replaced two open-fronted chiller units with newer models that are more efficient and use doors.” Other changes included
installing LED panels and motion sensors in rooms that aren’t used regularly, such as the stockroom, and implementing processes to manage stock efficiently, which helped to reduce waste. The Energy Saving Trust carried out a professional audit of Patel’s store, which gave an in-depth view on what could be improved. Every audit the Energy Saving Trust conducts is based on the retailer’s aims, with recommendations based on how they can improve, as well as potential costs and savings involved.
19 OCTOBER-1 NOVEMBER 2021 betterRetailing.com
In partnership with
01
ATUL SODHA, LONDIS HAREFIELD, UXBRIDGE, MIDDLESEX
11
“AS A result of SBF GB&I’s event and the ideas I have heard from other retailers, I am looking into new ways to reduce food waste. To do this, we’re going to join the food wastage app Too Good to Go. In addition to this, we plan to donate any food we do not sell by doing things like offering it to animals at a nearby farm. We will also be looking into different ways to reduce the plastic we use on our hot food-to-go counter and seeing what grants are available from our local council.”
02
03
KISHOR CHANDARANA, TARA’S LONDIS, HIGH WYCOMBE
“I AM going to research how to install sensors in our stockroom. This will help us to save on electricity and, ultimately, help the environment. Secondly, we plan to review our chiller units and see if they are as energy efficient as they could possibly be.”
04
CHAZ CHAHAL, SIMPLYFRESH – THE FORGE SHOP, INKBERROW, WORCESTERSHIRE
“WE ARE going to install sensors in the stockroom and the office area. This is because the stockroom and office area aren’t in constant use, but the lights are always on, increasing our energy usage. By installing sensors, we hope to reverse this, ensuring lights are not on all day and making a saving over a year or so.”
05
IMTIYAZ MAMODE, WYCH LANE PREMIER, GOSPORT, HAMPSHIRE
“I AM planning to research different options to change our current, normal tube lights to LED lighting, which are environmentally friendly, a good investment for the spend and will reduce our overall energy costs each year.”
AMIT PUNTAMBEKAR, ASH’S SHOP, FENSTANTON
“MY PLEDGE based on what I have learned from SBF GB&I’s sustainability workshop is to further examine the energy savings we have made and the reduction in CO2 emissions since our refit in 2019. This will allow us to further understand any improvements. We also want to market and highlight all the good work we are doing to be more sustainable to our customers. We are already part of the Too Good to Go app and use it to not only reduce waste, but see if nearby stores are using it, too.”
METEN LAKHANI, ST MARY’S SUPERMARKET, SOUTHAMPTON
“RECENTLY, we installed new freezers and automatic light switches. As a result of this event, I have realised I need to do some research and install doors onto my existing chillers. This will help me to sustain the energy and electricity that is being used daily, helping to reduce overall costs and help us improve our sustainability credentials.”
15
12 06
AMRIT SINGH, H & JODIE’S NISA, WALSALL, WEST MIDLANDS
“WE LEARNED at the event that there’s always things you can be doing to move forward. We are going to refocus on sustainability. We are looking at buying an electric vehicle, as well as buying some paper bags. It will be a focus for us going forward.”
07
SUE NITHYANANDAN, COSTCUTTER EPSOM, SURREY
“I WAS looking at replacing my chillers and today’s workshop has been very useful in helping us understand how to make that decision. The chillers we choose to install must be energy efficient to help us save money, which is one of our goals going forward.”
08
AMAN UPPAL, ONE STOP MOUNT NOD, COVENTRY
“DURING the event, I went online and purchased a smart plug after hearing Amit talk about them. The smart plug will tell me my energy use per day for every one of my food-to-go machines. This will allow me to make adjustments if I need to.”
09
ASIYAH & JAWAD JAVED, DAY-TODAY STENHOUSEMUIR, STIRLINGSHIRE
“WE ARE looking to buy new chillers that have doors and are energy saving. We have already spoken to a few companies about it regarding what we can do in store and the costs involved.”
10
SUKHVEER ATHWAL, SHOP AROUND THE CLOCK, TENTERDEN, KENT
“WE ARE going to focus on improving our sustainability credentials in our food-to-go area. We will start by changing the packaging we use to recyclable material. We have had a few companies suggested to us from other retailers that attended the event, so we will reach out to them and see what is possible.”
ANITA NYE, PREMIER ELDRED DRIVE STORES, ORPINGTON, KENT
“THANKS to what we have learnt from SBF GB&I and other retailers, we are pledging to either put doors on our existing chillers or install chiller scoops. Chiller scoops recycle cold air back into the chillers, instead of allowing it to escape into the shop. This helps cut down the amount of heat we use to keep the store warm for the team.”
13
SIVA THIEVANAYAGAN, TYS RETAIL, CAMBRIDGESHIRE
“BASED on today’s discussion from SBF GB&I, and through listening to the challenges other retailers face and what they’re doing to be more sustainable, we’re going to look at our data, uncover where we’re consistently wasting products and see how we can reduce this.”
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DILMEET SINGH, LONDIS GERRARDS CROSS, BUCKINGHAMSHIRE
“OUR pledge is to reduce plastic. This was inspired mainly by American shoppers and how they use paper bags for their grocery shopping. Following today, I know this is something we could incorporate into our store as well.”
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HARJ DHASEE, MICKLETON VILLAGE STORES, GLOUCESTERSHIRE
“WE ARE going to focus more on in-store marketing to shout about how we’re being more sustainable in store. We will also make long-term plans on how we can better communicate our sustainability efforts to our customers.”
16
DON’T MISS THE 29 OCTOBER ISSUE OF RN
OPINION
19 OCTOBER-1 NOVEMBER 2021 betterRetailing.com
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 DARK SITES: How are you competing against rising openings? “I’VE been looking at setting up a dark site in the back of my shop and hiring delivery drivers on scooters. I initially thought about looking at renting out external warehouse space, but I had a few issues where I had to make sure I had the correct licensing and planning application.” Anonymous multi-site retailer
The innovators shaping RN future 30 under 30: of independent the be inspired by the retailers convenience shaping the future of retail convenience retailing Winners announced! S PLU Don’tWhen miss the special and whereedition to useof RN, on sale 29 October, where we reveal the winners of RN’s inaugural 30 under 30 price-marked packswhy to they won initiative, and the reasons
boost sales
Order your copy from your magazine wholesaler today
It’s a real nightmare for multi-site operators
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“I’D advise other retailers to avoid trying to beat them on price. Instead, the best way to compete is by offering products they don’t already have. It’s a good way to differentiate. We make an effort to advertise that we offer products that aren’t available from any rivals.” Gaurave Sood, Neelam Post Of�ice & Convenience, Uxbridge
I’ve been looking at setting up a dark site ALLERGENS: How prepared were you for Natasha’s Law? “I’VE kept our food to go in the store that I manage directly, but removed it elsewhere. It’s a nightmare for multisite operators to keep close enough attention. For many stores it will be as much as three months before they get to grips with it, and health departments will be looking.”
Ferhan Ashiq, Day-Today Ashiqs, Prestonpans
“THE food-to-go suppliers we work with have told us what the new law means for the packaged goods we sell and how labels may change. We are very proactive with what is happening out there with laws and quite savvy when we see something new happening.”
Bobby Singh, BB Nevison Superstore & Post Of�ice, Pontefract
UNIVERSAL CREDIT: How will the £20 removal by gov’t impact your store?
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The entries we received were all
“THERE is a chance the “THERE are a lot of food outstanding – showcasing decrease may eventually afbanks in my area, withthe a lotexfect the sales of grocery and young of people heavilyworking relying on in ceptional talent spending habits. I predict I them. That’s why this reducindependent convenience retail may see a reduction in sponta- tion is going to hit people neous purchases.across My store the is in my area badly and I am UK located in a low-income area, concerned that it could affect so I predict that a lot of the spending habits in my store. Jackmay Courtez, RN editor and lead 30anunder residents rely on UniverIt is something to keep sal Credit.” eye out for.” 30 judge Anonymous retailer
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I may see a reduction in spontaneous purchases
CHRISTMAS: How are you planning to The best independent maintain availability? retailers stay ahead by “DON’T be too picky about “EVERYONE will adapt. If reading RN each week. what stock you take. It’s about you’re a consumer and RN 30 under 30 Doshines you? a light on the rising stars working in independent retail – those getting as much Christmas there’s not something you who are making real differences to their communities and customers, and to their own bottom lines. ORDER YOUR COPY from your
After a year like 2020, independent retailers across the UK went above and news wholesaler todaywhen or contact beyond, to reward and celebrate those who are making a difference. Kateit’s Dawtime on 020 3871 6490
With thanks to our supporters
You just don’t know. I’m not unconfident
stuff in store as you can and not skimping. The cheaper lines will still sell. We’ve had random availability issues. We haven’t had four-packs of Coke for a few weeks. You just don’t know. I’m not uncon�ident.”
David Sellers, owner of three Nisa stores in Yorkshire
want, you’ll �ind something else. Customers are always going to leave your store with something else if you haven’t got what they want. Ninety per cent of people �ind something that works for them.”
Sophie Towers, One Stop Kibble Bank, Burnley
FORECOURT FOCUS
Learn how this Jet forecourt appeals to HGV drivers on page 18
Perfect storm: fuel prices inching towards record highs DARYL WORTHINGTON PETROL and diesel prices respectively rose by 22p and 21p more than 2020 in September, according to RAC Fuel Watch data. There are signs pricing could continue increasing, leading to more stress at the pumps for forecourt operators and their customers. These rises are the result of a 10.65% increase in the price of oil from $71.29 to $78.88 per barrel in September. Brian Madderson, chairman of the Petrol Retailers Association, noted that the price of Brent Crude has risen by more than 50% this year. On 6 October, he alerted the government to the “swift rise” in the wholesale price of petrol and diesel, which would likely lead to price hikes
at the pumps, with many forecourts already short on supplies following the delivery crisis forced to buy at higher wholesale levels. The result of these higher prices is that unleaded increased by 1.5p to 136.83p per litre, while diesel went up by 2.5p to 139.25p per litre in September. According to RAC, the price for both fuels is now edging close to the record highs back in April 2012. “As life moves ever closer to normal as the world gets to grips with Covid-19, demand for oil is outpacing supply, and with producer group OPEC+ deciding on 4 October not to release more oil, the barrel price has now broken through the $80-mark for the �irst time in more than three years,” said RAC Fuel spokesman Simon Williams.
Major milestone for battery electric vehicles THE total number of batteryelectric vehicles (BEVs) on UK roads has overtaken plugin hybrid models (PHEV) for the �irst time, according to the RAC. RAC analysis of Society of Motor Manufacturers and Traders data found September marked the highest-ever single month of new BEV registrations, with 32,721 sold, even though overall car sales were down on recent years. BEVs now represent 50.4% of all plug-in cars in the UK, but just 1% of the
total cars in the UK. Nevertheless, the growth has come as petrol and diesel car sales have fallen signi�icantly. Petrol plummeted from an average 123,535 a month in 2019 to 75,265 per month in 2020. Diesel fell from 48,481 per month on average in 2019 to just 21,814 per month in 2020. According to the RAC’s director of EVs, Sarah Winward-Kotecha, the �igures show there is “a clear momentum towards electric car adoption in the UK”.
“This looks likely to spell further misery for drivers at the pumps as we head towards Christmas, especially as some analysts are predicting the price could even hit $90 before the end of the year. “If this were to happen, we could see the average price of unleaded hit a new record of around 143p per litre. Diesel would shoot up to 145p, which is only 3p off the record high of 147.93 in April 2012.” Williams added that the crises point to continued uncertainty and potential frustration for drivers. “Since many of Britain’s pumps ran dry over the last weekend of September, our patrols have dealt with a surge in out-of-fuel breakdowns. “At its worst they attended 13 times as many as they
would do typically in a single day, but fortunately this has now subsided to just twice as many,” Williams continued. “As forecourts’ fuel stocks return to normal, drivers
Growing support for Car Wash accreditation PAYMENT app GoWash has declared its support for the Responsible Car Wash Scheme (RCWS), and will encourage sites joining its nationwide network to get accredited under the scheme. RCWS launched a pilot project back in May, funded by the Home Of�ice, to test the effectiveness and value of licensing for car wash businesses and check whether hand car washes treat employees, customers and the environment fairly.
“Payment methods offered by car washes are one of the main indicators of whether they are operating as legitimate businesses,” said Teresa Sayers, managing director at RCWS. “Cash-only payment could be a sign of non-compliance with business or employment regulations. “The GoWash app provides transparency over business transactions and convenience to the public looking to �ind and pay for a car wash nearby.”
will inevitably switch from worrying about whether they can get the petrol or diesel they need to just how much a �ill-up is costing them. “Drivers in London and
south-east will undoubtedly feel particularly hard done by as they are still experiencing problems with getting hold of fuel while also paying the highest prices in the UK.”
Forecourt crime surged in second quarter of 2021 FORECOURT crime rocketed by 20.5% in the second quarter of 2021. It was propelled by a near-38% increase in drive-off incidents, according to the British Oil Security Syndicate (BOSS). The period coincided with the easing of lockdown restrictions in April, covering the three months to 30 June 2021. Levels of crime are now at the same levels as the fourth quarter of 2019. ‘No means of payment’ incidents increased by 12.9%, the average number of incidents
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
per site rose to 17, and the average number of litres taken jumped by 13.6% to 46.7. “The BOSS index has returned to 2019 levels, but the jump in 2021 re�lects the growth in traf�ic as economic activity recovers from the pandemic,” said Kevin Eastwood, BOSS’ executive director. “The big increase in the number of drive-off incidents emphasises that forecourt retailers should be watchful at all times, but especially when forecourts are congested with customers.”
FORECOURT FOCUS PROFILE
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We try to offer what people need TAMARA BIRCH “WHEN I started 19 years ago, the store was a drop-in, and now we offer everything,” says service station operator (SSO), Shelley Atkinson, of Jet Newton Park in Darlington, County Durham. “We started off small, growing every year, upgrading our offer to cater for ever-changing customer missions.” The forecourt recently underwent another major refit, introducing new pumps including Jet-brand fuel and a new, larger HGV loading area. Inside
the convenience store, a new food-to-go area was installed, incorporating F’real milkshakes, a Polar Krush slushie machine and a Seattle’s Best Coffee machine. “Most of our customers are HGV drivers, so it’s important we cater to that. We focus mainly on grab and go. We have a deli and a unit where we sell fresh chicken, jacket potatoes and so on, all of which is cooked on site,” Atkinson says. The store does have a local customer base from a nearby village, but the majority come off the motorway. “Local vil-
01
lagers come to us on their way somewhere, rather than for their weekly shop – we’re built for drivers, but locals will come for a top-up.” For the past three years, the forecourt has been part of Jet, while the convenience store has been with Spar for five years. “Jet supported us through each refit and is very hands on, which is great,” she says. “Spar supports us with merchandising advice and deliveries. Any issues we have, whether it’s a shortage or availability issue, both are on hand to help.”
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03
Catering to a transient customer base
Striking a balance
Upgrading the forecourt
AS part of the refit, the forecourt upgraded its shower facilities. “We try to give customers everything they want and need while travelling on the road,” says Atkinson. In addition to a food-to-go area and deli counter, the store benefits from a café. “Before, the café and deli counter were separate, which made it difficult for customers to mix and match. Now, we’ve merged them into one, giving them a wider variety of products and they can choose different combinations,” she says. Each product is prepared on site and the café sells fresh chicken, jacket potatoes, breakfast options and mince. “We have a large seating area, too, and during the height of the pandemic, we offered takeaway to visiting key workers,” says Atkinson. The store offers a full variety of lines to cater to any mission, running several promotions to showcase value.
THE forecourt offers a wide range of car-care products, news and mags, and food to go – everything a transient customer will need. “The last thing we want is our customers to be stranded. We also stock flasks, oil and bulbs – we might not sell a lot, but they’re there for those distress purchases,” says Atkinson. While striking a balance is key, thriving on customer service is most important. “Many of our customers want someone to chat to as being on the road can be quite lonely. Our café staff member knows every single one of our customers and many will visit just to talk with him. “Our staff get on with everyone and most of our customers are regulars,” she says. Customer service is more than talking to the store’s clientele, though. “It’s important to maintain the forecourt’s features and ensure they’re immaculate,” she adds.
“STAFF are trained on everything. This means the forecourt is always clean,” says Atkinson. “Customers don’t want to see grease, gloves and litter everywhere, so make sure to check it regularly.” The forecourt benefits from air and water machines, and has plans to install two electric charging points in the coming weeks. She adds: “We have room for six and it’s the future of motors and forecourts, so why not get ahead?” A challenge for the SSO, though, has been striking the right balance between EV charging points and petrol pumps. “All cars will be electric at some point, which is great, but lorry drivers will always need fuel,” she says. Atkinson introduced a disabled parking bay directly outside the store, helping to drive repeat visits. “Having a disabled parking space at the front of the store is a huge help for some of our customers,” says Atkinson.
FORECOURT FOCUS FEATURE
HOW WE FINANCED OUR BIGGEST INNOVATIONS were a much higher investment for the forecourt, so they financed this via bank loan. “It was all done through Lloyds and while we’re still paying it back, it’s not something we notice as it’s built into the budget,” he says. “We had to explain why the pumps were a good investment and had to do a business plan.” The retailer worked with a business manager to understand the legalities of the
CATER FOR EVERY CUSTOMER IT’S also important to have the right payment options for customers as convenience becomes a top mission. While the likes of Apple and Google Pay don’t have limits on payment, contactless cards were capped at £45 – until recently. Contactless payment is now capped at £100, but some banks allow shoppers to set their own limits. Similarly, have you considered using a mobile till to better serve your customers? Goran Raven, of Raven’s Budgens in Abridge, Essex, uses this and not only reduces queues, but ensures those paying by card are served quickly and efficiently.
Not every fuel customer wants to go inside to pay, which is where having a payat-pump option on your forecourt comes in. Pay-at-pump can be a costly investment and while some will be able to self-finance, another option is to secure a bank loan, lease or a payment plan. The key is researching the options available to you. Start by asking your broker, trade bodies or banks about your plans and the options to finance them. Next, start a timeline to complete any applications and make sure they are in line with your installation dates. Train your staff how to use this in the event something stops working.
loan, which he says helped with the application as the manager was familiar with the business. “We’ve worked with him for years and the installation came at a time when banks were offering loans with a good interest rate,” Blight explains. Although it all worked out in the end, Blight says he would likely do things differently for his next investment. “Over the pandemic,
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Investing in your forecourt is key to ensuring you remain successful long-term, but knowing how to finance it can be a challenge. TAMARA BIRCH talks to forecourts about how they financed their biggest ideas
RETAILER
WE USED OUR OPTIONS NICK Blight, of Blights Motors Bideford in north Devon, recently invested in a new till system and fuel pumps. “We had little choice – the old system had been installed by our previous fascia group, BP, and wasn’t compatible with a lot of the processes we had in place,” he says. Blight and his family were able to self-finance the new till system, after an influx of new customers and higher sales. The pumps, however,
19 OCTOBER-1 NOVEMBER 2021 betterRetailing.com
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for example, banks didn’t provide us with any support or reassurance, which made me think twice about using them again. “We also have a workshop, so when we buy equipment, we buy them on a lease or payment plan. If I did a large investment again like we did with the fuel pumps, I’d research more and set up a payment scheme as the interest rates aren’t normally as large as a bank loan,” he says.
Rachael Hockmeyer, Spar Sleaford, Lincolnshire “FINANCING depends on how cash flow is, and depends on what sort of deals there are with loans. When we have done things in the past, sometimes I’ve used bank loans and sometimes I’ve used hire purchasing or fuel deals. “We’ve been a forecourt for 20 years and we’ve done different things at different times depending on our situation. We’ve never gone through any trade bodies to look for financial advice, we’ve just trusted our own ability. I don’t tend to shop around for the best deal. Instead, I would choose somewhere where I trusted the people, but I do have a broker who’s looked after us and I deal a lot with Lombard, who I would go to these days.”
CALCULATE THE BENEFITS A FORECOURT retailer in Sussex expanded his store to better serve local customers, adding chillers and shelving units. The chillers were the forecourt’s largest investment since its opening 20 years ago, totalling £30,000. “We wanted to get rid of our older chillers as they were outdated and using a lot of electric,” he says. “Another decision was for sustainability reasons and to make sure they were as energy efficient as they could be, ultimately cutting down our overhead costs and enabling us to invest in other areas of the business.”
The retailer upgraded his chillers to add doors to further reduce energy usage. “We didn’t want to install entirely new chillers as the investment wasn’t worth it, so we researched different companies about adding on doors,” he adds. The forecourt worked with Pastorfrigor, who carried out a free survey before adding doors. The total investment was £7,000. “We could self-finance the chillers because our cash flow was good. We’ve done bounceback loans, which is a less risky approach of fulfilling your investments,” he says.
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LETTERS
19 OCTOBER-1 NOVEMBER 2021 betterRetailing.com
Londis Solo
natalie Convenience, lightfoot Baillieston, Glasgow
Letters may be edited
A shop’s layout should never stand still
‘Smiths are sending me crumpled mags yet again’ SMITHS News is once again delivering my tote boxes with one magazine folded up on top. This is the third time this has happened. After complaining before, they did stop and started putting the extra copies I’d asked for in a plastic sleeve, which worked per-
fectly. When they don’t do this, the magazine gets crumpled and wet, and I can’t sell it. As I’ve said before, customers go elsewhere if the magazine they want isn’t in good condition. It doesn’t look good to customers, either, when my stand is looking sparse. I just want an explanation as to why
this is happening again when it’s clear Smiths is able to do it right.
Munir Butt, Butts Super News, Reading, Berkshire A representative from Smiths News responded: “We want to offer our
sincere apologies to Mr Butt. Receiving damaged copies is unacceptable, and we have investigated with the local team why this was happening. The process should be for individual copies to be placed into bags to protect them, something that has now been checked and recti�ied.”
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Trudy Davies, Woosnam & Davies, Llanidloes – @trudydavies1964
‘We are donating old jewellery’
“WE’VE started encouraging customers to donate old or broken jewellery that they no longer want. I used to do this a while back, but a lot of the new projects I was working on meant this took a backseat. We’ve had a great deal of donations already. I sell whatever I get and then split the funds between Alzheimer’s, Birmingham Children’s Hospital and Meningitis Now. We have supported these charities for nearly 30 years. I’ve put up new posters in the window to show customers we are prioritising it again. It’s about helping the community get together and have a place to donate it to, rather than throwing it away where it ends up in landfill.”
OUR shop floor is under 500sq ft, so it’s a very small store. But even with that small a store, by organising our space and being careful with what we’re doing, we’ve still managed to fit in a F’real machine, a Tchibo coffee machine and a Tango Ice Blast. We have two chilled lanes and space for magazines and an American candy Each issue, one of seven top range. I’ve got retailers shares advice to three 3.75-metre make your store magnificent refrigerators and a one-metre upright freezer. We’ve managed to fit everything in. A shop’s layout should never stand still. Never just say ‘the milk is at the back, papers are at the front – that’s how it is’. That doesn’t work, it’s about trial and error, and moving things around. I’ve had my coffee machine set-up in two different places and then I took all the facings out so I was left with just the machine. I moved the cups and stirrers into a more compact space and now the whole thing sits on my counter. You can always redesign things. During seasonal events, such as Halloween and Christmas, we still need to create theatre in store. It’s still so important. You can’t just skip it. But how do you do that with such a small space? Well, we look to decorate the outside of the store. We’re going to be part of a local community Halloween walk, so we’ve built a house outside our store with witches’ legs underneath. Kids will come by and get sweets from the store on the walk. It helps with the community engagement and if it’s outside the door, it draws everyone’s attention. We were the talk of the town last year because we got bales of hay with scarecrows outside. Even when you haven’t got space for it, you’ve got to think outside the box – or outside the shop. For Christmas, we’re suspending things from the ceiling – bunting and tinsel and those glittery things that you pull and they expand to make snowflakes. I would never be afraid to have stuff like that in the store. You need to acknowledge all the seasons. With a symbol group, you’ll get sent the basics, but you should go further. You’ve got to get creative. We get sent pallets of stuff all the time, so we make something out of them. We’ve learned how to be carpenters. Most of this stuff is reusable for the next year as well.
Get in touch
@retailexpress betterRetailing.com facebook.com/betterRetailing megan.humphrey@newtrade.co.uk 020 7689 3357
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CATEGORY ADVICE CHRISTMAS ALCOHOL
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BRINGING FESTIVE CHEER Amid the return of competition from pubs and bars, JASPER HART finds out how retailers can keep their Christmas alcohol sales buoyant this year
SEASON TO BE JOLLY NO one needs reminding how subdued an affair Christmas 2020 was, but hopefully this year’s festive season will see fewer silent nights. Off-trade alcohol sales hit £531m in the week before Christmas in 2019, and while many retailers reported strong sales last year, it’s worth looking at that figure when thinking about sales in 2021, now that pubs and restaurants have fully reopened. With hospitality likely to be open throughout the season, retailers should be looking to target customers creat-
ing big nights in for their friends and family. “Despite the reopening of the on-trade, consumers have missed hosting at home as well as enjoying big nights in with family and friends,” says Ben Blake, head of marketing EMEA at Treasury Wine Estates. “In addition, many will seek the perfect Christmas gift or a bottle of something special to bring to a dinner party – a choice that delivers on quality, value and experience factor.” Across multipacks, trading up for gifts and parties, emerging categories and the potential to cross-merchan-
dise with lines such as confectionery where permitted, retailers have plenty to consider when lining up their Christmas alcohol offer. For Imtiyaz Mamode, of Premier Wych Lane in Gosport, Hampshire, the length of time shoppers have spent away from pubs has led him to prepare for big alcohol sales this Christmas. “It’s £4 or £5 for one pint and they can easily get a pack of four 440ml beers for £4.85,” he says. “They’ve started comparing prices and this habit is continuing, so our sales will be the same as last year, maybe even higher.”
19 OCTOBER-1 NOVEMBER 2021 betterRetailing.com
CATEGORY ADVICE CHRISTMAS ALCOHOL
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TRADING UP AS Christmas is a time of celebration, premiumisation is the name of the game for people treating themselves and their nearest and dearest. “Customers are more likely to trade up to premium spirits during the festive season,” says Charlotte Rann, off-trade director UK&I at Bacardi. “We’re seeing an increase in the number of
customers turning to convenience to purchase gifts, and one in five spirit purchases in convenience is made for someone.” This isn’t limited to spirits. BrewDog says craft beer is particularly popular in convenience, while Mark Stammers, sales director for UK & Ireland at E&J Gallo Winery, points to wine being a popular choice over the
festive period as it is enjoyed across celebrations or offered as a gift. “Following a strong performance over the past 18 months, we expect the trend towards premium wines to continue as consumers lean towards treating themselves and enjoying quality wines,” he says. He adds that Gallo Family Vineyards’ Chardonnay and
Sauvignon Blanc are expected to generate strong sales this Christmas, but also recommends retailers cater for the increasing desire for Malbec from wine consumers. Well-signposted premium options are guaranteed to turn heads more so than at any other point in the year. According to Sunny Mirpuri,
sales director for wholesale and convenience at Budweiser, 48% of shoppers are planning on trading up their drinks this Christmas. “Alcohol continues to be an area where consumers are prepared to splash their cash,” he adds, “With 52% of shoppers willing to pay extra for higher-quality alcoholic drinks to have at home.”
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Charlotte Rann, off-trade director UK&I, Bacardi “LAST year, we saw significant growth in spirits in convenience stores as people looked for easier, more local, speedier shopping options. To avoid missing out, range and availability are really important. Research tells us that having a limited choice of spirits is a barrier to purchase in convenience, so having a breadth of spirits options at different prices, and always being stocked up, is crucial. “The festive season is all about treating yourself, and your friends and family. So, unsurprisingly, premium spirits such as Grey Goose and Bombay Sapphire perform really strongly around this time of year. During the October-to-December period last year, premium spirits grew ahead of total spirits in convenience – up more than 40% versus 26%, respectively – with premium vodkas one of the fastest-growing categories. “In fact, vodka is typically the largest spirits category over Christmas, making up more than 40% of all spirits sales in convenience last year – so Grey Goose is a definite must-stock to tap into that opportunity.”
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ON-TREND CATEGORIES RETAILERS could also use the opportunity presented by shoppers expanding their palettes within established categories such as beer, wine and spirits to try to push emerging category segments. “In 2020, the ready-todrink (RTD) category was the fastest growing in alcohol globally and has continued to perform well in the UK, with more consumers looking for exciting new flavours
ON P U K STOC K’S NO.1 L1 THE UD COCKTAI E RAND
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CGA Mixed Drinks Report, Q3 2020 and CGA Mixed Drinks at Home Report, January 2021. 2Nielsen Scantrack Data to 26.12.20 MAT % Change YA. 3Aperol Spritz advert to be aired on Video On Demand TV from 29th March – 11th July 2021. 1
and more premium choices they can grab and enjoy at home,” says Kevin Fawell, off-trade sales director at Molson Coors. “Meanwhile, hard seltzer sales have increased in value more than eight-fold in the space of 12 months in the UK.” These categories, as well as low- and no-alcohol options, particularly appeal to younger adult drinkers. While plenty of us are in a celebratory mood after months of
lockdowns, Covid-19 has prompted a certain healthconsciousness among many people, so a basic low- and no-alcohol offering should be part of all retailers’ drinks offering. “We expect the importance of no- and low-alcohol products to increase around Christmas, with sales projected to rise by 31% by 2024,” says Tom Smith, marketing director for Europe at Accolade Wines.
CATEGORY ADVICE CHRISTMAS ALCOHOL
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19 OCTOBER-1 NOVEMBER 2021 betterRetailing.com
CROSS-PURCHASING TRADING up can help drive extra sales, but so can remembering the benefits of matching alcohol with other products, specifically when Christmas provides a thematic foundation. Most wholesalers will have gift options across beers, wines and spirits, including a bottle and a glass, or some chocolates in bespoke packaging. Imtiyaz Mamode has a custom gift option priced at £35, comprising a bottle of gin, a
pack of chocolate and a purse he has bought, which he giftwraps according to customer preference. The rise of in-home cocktails also presents an opportunity for drinks kits, either created by a supplier or retailer. “When planning a spirits display, we recommend retailers devote a good proportion of their top shelf to impulse options that include gift packs and cocktail kits to tap into the 45% of
shoppers who will choose a spirit or accessories just because they fancied it,” says Bacardi’s Rann. From a more practical standpoint, make sure that your mixers selection is well stocked, as an increase in spirits sales will have a knock-on effect on sales of carbonates and tonics. Where possible, try to merchandise these two categories closely to each other, with an eye to take-home pack sizes.
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Peter Patel, Costcutter Mantle Road, Brockley, London “WE get new flavours every time the seasons change from our local beer suppliers, and pre-packed gift packs featuring small wine bottles and chocolates or glasses from Nisa and Costcutter. Last year we got a red berry-infused IPA with a stylish can, and it sold out within three days, but you’ve got to be careful with seasonal drinks. If you order something a bit ‘out there’, you’re lumbered with it if it doesn’t sell, so we’re cautious with buying them. “Our sales last Christmas were good, but I’m anticipating a decline this year because last year everyone was in lockdown and nothing was open so everyone had Christmas at home. “I think we’ll lose sales in premium wine because people will go to restaurants. In the build-up to Christmas, the parties will be back on and I think that’s where we can make sales, but not for Christmas day itself. In terms of in-store theatre, we have a section with mulled wine and some more ports and sherries. “Don’t concentrate on everyday products, look at selling slightly different ones. For example, RTD spirit cans were really good for us last year.”
alcohol gift sets Aperol Spritz Kit – features a 35ml bottle of Aperol and a 37.5cl bottle of Cinzano Prosecco, RRP £16 Baileys & Lindt gift set – features a 50ml Baileys Original Irish Cream, decorated glass and Lindt Lindor truffles, RRP £16 BrewDog gift pack – contains a 330ml can of Punk IPA, a 330ml can of Hazy Jane and a branded glass, RRP £6 Thatchers Gold with Glass and Tin – features a 500ml Thatchers Gold bottle and branded glass in a tin container, RRP £10 Stella Artois gift set – offers a 330ml Stella Artois bottle and a branded glass, RRP £5 Dead Man’s Fingers Trio Rum Pack – features three 50ml bottles of Dead Man’s Fingers rum, RRP £10 Grey Goose La Collection – contains four 50ml bottles of Grey Goose, including Original, Orange, Lemon and Pear flavours, RRP £15
CATEGORY ADVICE CHRISTMAS BISCUITS & CAKES
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SELLING FESTIVE TREATS Christmas is a time for treating oneself, which means that a strong festive biscuits and cakes offer is essential for retailers at this time of year, as CHARLES WHITTING discovers
A BIGGER CHRISTMAS THIS YEAR CHRISTMAS last year was severely disappointing for many people, but the lastminute cancellations resulted in an uptick in sales for convenience stores. This year, with people looking to make up for a lost Christmas, the opportunity is different, but still there. Biscuits and cakes are popular all year round as a pick-me-up and a treat – and this year has required more of that than most. But Christmas brings about a swathe of seasonal varieties that tradition dictates customers buy. For retailers, a strong range of biscuits and cakes – general and seasonal – is a must. “This year’s seasonal snacking sales are set to exceed 2020’s £161m incremental opportunity, as consumers look to make up for last year’s limitations and
celebrate the season with larger groups of friends and family,” says Jonathan Bull, marketing director for chocolate, cake and seasonal at Pladis UK&I. “It’s no secret that we’re a nation of biscuit lovers. Worth £2.96bn in retail, biscuits are a shopping-basket essential for 99.5% of households, so they’re indemand year-round,” adds Scott Snell, vice president of customer at Pladis UK&I. “However, we expect Christmas this year to be big, as consumers make up for missed time and enjoy bigger celebrations – and snacking will play an integral part in this. “That’s why stocking up on – and regularly restocking – the core bestsellers, alongside popular sharing and gifting products (such as McVitie’s Victoria and
new-for-2021 McVitie’s Jaffa Cakes Jaffa Hamper) is vital.” Biscuits and cakes are generally purchased as treats, and Gurbinder Kang, who runs two stores in Coventry and Swadlincote, has found that the stresses of the pandemic has overwhelmed many healthy-eating pushes that were prevalent and on the rise in 2019. Chocolate bars, cakes and biscuits are also likely to feature heavily this Christmas a result of almost two years of stress and difficulty. “The year before last, there was a lot of media coverage on sugars and people not buying chocolate as much as they used to,” she recalls. “Then the pandemic hit, and now single chocolate bars that the supermarkets don’t tend to focus on are selling really well.”
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CATEGORY ADVICE CHRISTMAS BISCUITS & CAKES
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BUILDING A RANGE BEFORE retailers start purchasing every new product or themed biscuit for their shelves, it is worth considering your customer demographic and working out which biscuits and cakes will work best. Gurbinder Kang’s two stores are within eight minutes of each other, but the local demographic is so different that she has to take different purchasing approaches for Christmas. “You can put any cake on sale in my council estate store and it will sell,” she says. “Anything that’s Christmassy sells. If it looks good on the shelves, they’ll buy it. “But in the store on the main road, we’ll sometimes struggle to sell the same kind of lines. They prefer familysized options.” However, one major selling
point in both stores is value. Price-marked packs (PMPs) “fly out” because customers feel confident they’re not being overcharged. Bigger brands remain the bestselling products, so retailers should work to get those popular options. Retailers should also look at categories, such as shortbread, that see an increase in popularity around Christmas. “Consumer demand for shortbread is at its highest over the festive season, with shortbread fingers and assortments accounting for more than 75% of the seasonal biscuit category as consumers look to trade up,” says Kate Needham, marketing director at Burton’s Biscuit Company. One of the major challenges for retailers at the moment,
of course, is availability, with some stores struggling to get the products that their customers need. Last year, Arfan Sabir, from Baneswell Express in Newport, brought in new products from Pladis, and other new flavours of biscuits from Bestway, as well as introducing offers, but stock availability has limited his ability to benefit. “I’ve done my own offers and things like that to keep the customers happy, but for Christmas, it depends. “It’s all a bit up in the air at the moment, but we’ll be trying to get stock in right up to Christmas Day,” says Sabir. Retailers should be looking wherever they can – including smaller local suppliers – to meet their festive needs and to bring an element of uniqueness to their store’s offer.
RETAILER
VIEW
Uthay Soundararajan Costcutter Inverleith, Edinburgh “COSTCUTTER has a good range during Christmas and Easter. There are cakes and chocolates that you normally see in the supermarket and we’ll be selling them. The first order arrived last week and the next one comes next week. But if we need more last minute, we buy from the supermarket. “We have a couple of shelves dedicated to them and we keep them stocked there. “Every Christmas, it’s mainly chocolates, dark chocolate and big packets that sell well. We make hampers with wine and chocolate cake, and that works very well, too.”
HOW TO DISPLAY IT CHRISTMAS displays are part and parcel of the festive season, as retailers look to draw customers’ attention to every possible Christmas treat on offer. It’s imperative to sell these seasonal products when it’s appropriate, as demand will flag after Christmas, so starting promotional activity as early as possible is a good idea. A general festive theme and decoration throughout the store should get customers in the mood, while positioning products in highfootfall areas, particularly near the entrances, will keep these biscuits and cakes at the forefront of people’s minds even if they don’t buy from you on that particular visit. “A well-merchandised festive biscuit display, located in high-footfall areas, can heavily influence shopper purchas-
ing decisions. It’s about making the shopper experience as seamless as possible, so Christmas-themed space and signage, and offering secondary sightings, are essential considerations in order to maximise sales,” says Pladis’ Scott Snell. “Incorporating paired products and cross-category promotions will also help to drive incremental purchases across a number of categories, as shoppers spend more time in store as a result.” Kishor Patel, from Surya’s International Food Store in Basingstoke, Hampshire, is going to put her Christmas biscuits and cakes at the front of the shop so people can see them. “We have two floors. We’ll put all the good Christmas stuff at the top and position them prominently so people can see it as they pass by the window,” she says.
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Kishor Patel Surya’s International Food Store, Basingstoke, Hampshire “WE’RE an international shop so we have European biscuits from Hungary and Lithuania and things like that rather than the domestic products. “We’ve already started ordering it from our European suppliers, so we should get it at the beginning of November. The earlier we have it, the earlier people see it. They might not buy it straight away, but they’ll remember where to buy it. As things get closer, they get hectic because they can’t find it elsewhere. So, early merchandising would be a good tip.”
festive launches Cadbury Festive Fingers Selection New for 2021, this product is aimed at the adult gift market and combines three shopper favourites: Cadbury Dairy Milk Fingers, Cadbury Bournville Fingers and Cadbury Orange Fingers. The selection has an RRP of £4.50. McVitie’s Mince Pie flavour Milk Chocolate Digestives After a successful launch in 2020 – with sales worth £1.2m – Pladis is revamping its McVitie’s Seasonal Milk Chocolate Digestives, with an added festive flavour. McVitie’s Mince Pie flavour Milk Chocolate Digestives will join McVitie’s Christmas Pudding flavour Milk Chocolate Digestives – exclusive to Tesco – and McVitie’s Gingerbread flavour Milk Chocolate Digestives, which will be making a return for Christmas 2021. McVitie’s Jaffa Hamper The McVitie’s Jaffa Cakes Jaffa Hamper combines Jaffa Cakes classics with seasonal family favourites. It includes a pouch of McVitie’s Jaffa Cakes Nibbles, three McVitie’s Jaffa Cakes Cake Bars, three McVitie’s Jaffa Cakes Original three-packs and one McVitie’s Jaffa Cakes Orange & Cranberry 10-pack. Flipz Gingerbread Flipz Gingerbread is available in a 150g sharing pack this Christmas. Pladis is giving Flipz fans the gift of gaming this season – with a Flipz Big Game Dropz onpack promotion, offering shoppers the chance to win a PlayStation 5 every day, along with additional prizes for runners-up. McVitie’s Milk Chocolate Digestives Gingerbread Slices Each individually wrapped McVitie’s Milk Chocolate Digestives Gingerbread Slice consists of a layer of gingerbread-infused biscuit, topped with McVitie’s milk chocolate. McVitie’s Milk Chocolate Digestives Gingerbread Slices are available in a pack of five bars at an RRP of £1. Galaxy Cake Bars Galaxy Salted Caramel Cake Bars feature a soft chocolate sponge, topped with salted caramel and covered in Galaxy milk chocolate, and include a snowman on pack. Galaxy Orange Cake Bars feature a soft chocolate sponge, topped with orange chocolate cream and covered in Galaxy milk chocolate, and features a scarf-wearing penguin. Both limited-edition packs contain five individually wrapped bars, all featuring the festive characters. Galaxy Salted Caramel Cake Bars and Galaxy Orange Cake Bars have an RRP of £1.85.
ADVICE
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USING EPOS DATA Modern EPoS systems provide retailers with plenty of data on what’s being bought and sold. The RETAIL EXPRESS team finds out what retailers are getting out of it
We don’t use EPoS data at the moment, but we’ll need the staff to know more. I want to know how to use it to find out my hottest lines across the board. – Gurbinder Kang, Swan Stores, Swadlincote, Derbyshire
1
Gerald Thomas, Arcade News, Ammanford, Carmarthenshire
“BECAUSE I’ve got a lot of home news delivery customers, I use it to see what’s required and to see if something’s not selling. Do I need to increase my order or cut it back? I use Repos at the moment. I’m probably not getting the most out of it, but I don’t always have the time. I look at what I need currently and assess data to make sure I have enough newspapers and magazines. I can get any information from the past and that provides me with information for the future. “I look at past bank holidays and Christmas periods to see how many magazines or newspapers I was selling compared to previous years. I’m looking at my Christmas TV listing magazines right now – what I had last year and what I sold – and I’ll make sure that my Menzies order is right. I sell a lot of partworks, so I look at the Menzies website to see what I’ve ordered and I look at my EPoS to see what I’ve sold.”
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Kirti Patel, Londis Ferme Park Road, London
“ONE of the key things we’ve done with our EPoS is automating our store and making sure that everything is fully stockcontrolled through the EPoS. We can analyse everything from the computer. We changed our EPoS system recently to Point Four. It’s a really good system and we have the online platform as well. When we added it to our system, it updated our online of�ice and online store. It uses a barcode to bring up the ingredients and when it’s not in stock in my store, it won’t show up on our website, which is really bene�icial and easy to control. “It’s all coming through one system, so we can analyse it remotely. I’ve got the app on my phone so I can access it remotely. It’s also on the cloud, so I can see even more things – takings, how many people are using the tills, things like that. These �igures are at the touch of a button and it helps me keep track of what’s going on in store when I’m not there.”
3
Harry Singh Hallen, Londis Carstairs Junction, Lanarkshire
“WE use our EPoS to do our orders. We check our busy times of day, what we’re selling and what products aren’t selling. We do our checks every day because I’m always in the back of�ice, checking things out. “But I also like to have a proper sit down every week to have a good look at what’s been happening because things can change so quickly. It’s good to �ind something that sells as well as you wanted it to because then you can think about increasing the price and getting a better margin. If it’s not selling then you can think about getting something else in. It enables me to use the space on my shop �loor better and make the most of my shelf space. “I’m a small store, so being able to maximise all my shelf space is important, but the same principle should apply to bigger stores because space is money.”
In the next issue, the Retail Express team looks at the sustainability of home delivery post-Covid-19. If you have any problems you’d like us to explore, email charles.whitting@newtrade.co.uk
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