Retail Express - 2 June 2020 by BetterRetailing

With one month to go until the Covid-19 bailiff ban runs out, experts warn struggling stores…

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Retailers left frustrated over Boris Johnson’s latest ‘war on obesity’ pledge

On-the-go drinks prove a hit in the sun with customers despite lockdown

Find out how three retailers have kept the category going during the crisis

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IN THE MAY ISSUE OF VAPE RETAILER

OUT NOW Special report: Changing vape sales – how convenience stores can hold on to new customers won since the lockdown forced specialist shops to close

• Nic salts: How to sell them, what you need to do to switch menthol customers post-menthol ban and how to retain them

• Pod mods and closed systems: What you need to stock, and how to sell the fastest-growing product trend in vaping

Get your digital copy today at betterRetailing.com/vape-retailer-may-2020 or call Kate Daw on 020 3871 6490 To advertise in Vape Retailer, contact Matthew Oliver on 020 7689 3367

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2-15 JUNE 2020 STRICTLY FOR TRADE USERS ONLY

With one month to go until the Covid-19 bailiff ban runs out, experts warn struggling stores…

‘ACT NOW TO AVOID EVICTION’ P3 PROMO REMOVAL RETURNS

SLUSH SALES SOAR

FOOD TO GO

Retailers left frustrated over Boris Johnson’s latest ‘war on obesity’ pledge

On-the-go drinks prove a hit in the sun with customers despite lockdown

Find out how three retailers have kept the category going during the crisis

BACK PAGE

our say

Megan Humphrey, editor

The five biggest stories this fortnight 01

Looking after yourself must always be a priority to

PM pledges to launch ‘war on obesity’ after Covid-19

MEGAN HUMPHREY SINCE the coronavirus pandemic gripped the nation, I don’t think any retailer has had much time to reflect upon how their lives have changed. Each week brings with it a host of new challenges, forcing retailers to create a ‘new normal’ and toss aside everything they once knew. A lot of essential workers have rightfully earned themselves ‘hero’ status over the past few months, but it’s not come without a price. Last week, I witnessed the struggles faced by retailers first-hand at the launch of our virtual networking event, #retailtogether. Spearheaded by our head of events, Samantha Gunston, the idea is to bring retailers together in one place every fortnight to discuss their pressure points, and seek advice from those also experiencing them. Taking place during Mental Health Awareness Week, I was relieved that it gave retailers the opportunity to share some of the WE ARE ALL ways they are managing to destress, and take time away from HERE FOR ONE their shop. Although it was tough to see some finding it difficult, the ANOTHER message was clear – ‘we are all in this together, and we are all here for one another’. I cannot stress enough the importance of looking after your own, and your staff’s, mental health at a time like this. I know it probably feels impossible, but please do take some time to clock out physically and mentally this week – trust me, you deserve it.

CONVENIENCE stores have hit back at prime minister Boris Johnson’s latest call for a ‘war on obesity’, following his own battle with the coronavirus. Last week, Johnson told senior ministers and advisors that he was planning a new strategy to combat health, despite publicly

claiming he was an opponent of the ‘nanny state’. Chair of Action on Sugar and Action on Salt Professor Graham MacGregor responded: “This particular public health crisis should have never been taken off the agenda in the �irst place.” He has urged the government to remove promotions on unhealthy food and

Anita Nye, manager of Predrink, and reformulate products to contain less salt, sug- mier Eldred Drive Stores in Orpington, Kent, added: “We ar and calories. Nisa retailer Bal Singh act responsibly by communitold Retail Express: “We get cating our sugar-free options a good margin when people to customers, but ultimately, buy products on promotion, it’s their personal choice.” Last year, the Scotand if we aren’t able to offer tish and UK governments that then we would struggle. consultations “We are already under a lot completed of pressure, and if this isn’t directed at changing how delivered in the right way, stops can promote and sell ‘unhealthy’ products. retailers will feel attacked.”

TO DISCUSS THE ISSUES THAT MATTER MOST TO YOU WITH OTHER STORE OWNERS AT OUR NEXT VIRTUAL EVENT, EMAIL SAMANTHA.GUNSTON@NEWTRADE.CO.UK FOR MORE DETAILS @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 3357 Features editor Daryl Worthington @DarylNewtrade 020 7689 3390 Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361 Editor in chief Louise Banham 020 7689 3353 Production editor Ryan Cooper 020 7689 3354 Sub editor Jim Findlay 020 7689 3373 Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380

Editor – news Jack Courtez @JackCourtez 020 7689 3371 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355

Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379

Director of sales and marketing Matthew Oliver 020 7689 3367

Account manager (new business) Jimli Barua 020 7689 3364

Senior account director Charlotte Jesson 020 7689 3389

Sales support executive Michela Marino 020 7689 3382

Senior account manager Natalie Reed 020 7689 3372

Managing director Parin Gohil 020 7689 3375

Account manager Adelice Tatham 020 7689 3366

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

Reporter Alex Yau @AlexYau_ 020 7689 3358

ATM rates delay

RETAILERS due to receive refunds on ATM business rates may face delays in payments, experts have warned. A Supreme Court decision last month ruled that ATM providers must remove and refund separate rates on ex-

Menthol ban confusion

ternal ATM machines paid by THERE has been little demand are confused. Sterling Dual for new tobacco products de- was popular, but they don’t retailers since 2010. Rates specialist Altus signed to help shops maintain want the new version because Group said the Valuation Of- sales after the menthol ban, it no longer has menthol in it.” Other retailers reported �ice Agency faces a staf�ing retailers have reported. Ken Singh, of Boghar Bros confusion over suppliers marshortage that may delay providing councils with informa- Stores in Pontefract, West keting products as ‘dual’ or tion needed to begin refunds. Yorkshire, said: “Customers ‘green’ following the ban.

Digital content editor Jody Porter 020 7689 3378

Management accountant Abigayle Sylvane 020 7689 3383

47,895

Go to betterRetailing. com and search ‘ATM’ to read more

Profiteering concerns

SMALL shops have been accused of price gouging, despite following advice to switch to non-price-marked packs. Store owners said they were experiencing more verbal abuse, and customer reports to local trading standards for

switching to higher RRPs on non-PMPs had risen. In one example, an invoice and wholesale data showed Kraft Cheesey Pasta had a 95p PMP and a 78p wholesale cost from Nisa, but its price rose by 74% on a non-PMP.

Audit Bureau of Circulations 1 July 2018 to 30 June 2019 average net circulation per issue

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

Go to betterRetailing.com and search ‘profiteering’ to read more

Go to betterRetailing. com and search ‘menthol’ to read more

Grant top-ups

STORES that missed out on initial Covid-19 small business grants may be eligible for the government’s new ‘top-up’ grants. The �irst grants excluded businesses with a rateable value (RV) of £51,000 or above.

New Department for Business guidance shows new grants for struggling businesses have a wider catchment. Even if an RV is above £51,000, if annual mortgage or rent is below £51,000, a store could still be eligible for a grant.

@retailexpress facebook.com/betterRetailing

2-15 JUNE 2020 betterRetailing.com

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

‘Strike a rent payment deal with your landlord now’ MEGAN HUMPHREY EXPERTS are urging rent defaulting stores to strike a payment deal with their landlord now to avoid eviction at the end of June. In March, the government rolled out emergency legislation to protect tenants affected by the coronavirus, stating that landlords would be unable to evict for at least a three-month period. However, �inance specialist and Commercial Plus owner Barry Frost told Retail Express that despite

being understanding of the pressures stores face, other landlords are already implementing measures to secure missed rent as the deadline nears. “I know of some aggressive landlords who have bailiffs at the ready,” he said. “Some are even asking stores to sign agreements to repay missing rent by December, and, given the choice, many will take the deal even though it’ll be impossible.” Frost recommended that retailers engage with their landlord sooner rather than later. “Communication is

key, and a lot of landlords are being supportive,” he said. “Be honest about your cash �low over the coming months and ask for �inancial support that won’t risk putting yourself out of pocket.” He added: “Landlords also have bills to pay, so they have to be realistic and help tenants get on their feet.” A retailer who had dif�iculty negotiating a deal with their landlord, but wished to remain anonymous, told Retail Express: “I was upfront and explained that I couldn’t make

the same monthly payments, and that it would depend on my store’s performance. Eventually, my landlord agreed, but it wasn’t an easy process.” Law �irm Aaron & Partners’ solicitor, Joseph Fletcher-Hunt, advised retailers to ensure any deal is made of�icial. “Whatever agreement is reached, it must be formally documented in writing,” he said. NFRN national president Stuart Reddish explained: “We encourage ministers to extend the

deadline beyond 30 June. I fear that by pressuring retailers, many landlords are going to do grave damage to our high street.” If you need help negotiating rent payment with your landlord, call Retail Express on 020 7689 3357

40% Increase in violence and verbal abuse

62%

37%

Convenience stores providing a delivery service

Stores heavily impacted by supply disruptions

express yourself “Initially, we had issues with pricing. Some products I tried sourcing for staff and customers were quite overpriced. However, I overcame this issue by speaking to my network of contacts. I spoke to various suppliers and with other retailers in WhatsApp groups who were able to direct me to other sources. My main suppliers are BrownBox and Loco Soco. Demand for PPE from customers has slowed down, though.” Hitesh Modi, Londis BWS, Chesham, Bucks

the column where you can make your voice heard

FACEBOOK: Social media giant Facebook has launched a feature allowing retailers to sell products on its website. The Shops service differs from Facebook’s Marketplace as it is aimed primarily at businesses and not members of the public. Customers who use Shops will be able to make purchases from the Facebook app. WHOLESALE: Dee Bee Wholesale held its first online trade show this month, allowing convenience retailers to see promotions and new products they would have otherwise missed out on following the cancellation of its physical trade show last month. The wholesaler plans to hold more online conferences, depending on the success of its first virtual show.

BAD WEEK

How have stores adapted during the coronavirus pandemic?

Deliveries provided a week by c-stores

GOOD WEEK

Go to betterRetailing.com and search ‘Dee Bee’ to read more about this story

ACS COVID-19 IMPACT SURVEY

600,000

WHSMITH: The chain’s Local franchisees have raised concern around the lack of communication from WHSmith, months before their franchise agreements are due to expire. However, WHSmith, which is operating with a reduced field team, has assured franchisees it will maintain support and communication for the remainder of their contracts. NISA: The Heritage own-label range is to be axed across key categories, including dairy, home baking and spirits. This latest decision from the wholesaler was due to falling volumes and rising wholesale prices. It means approximately half of 643 Heritage lines available as of August 2019 will no longer exist. Go to betterRetailing.com and search ‘Heritage’ to read more about this story

Have you found it difficult to source personal protective equipment?

“The prices for PPE were quite high at the start of lockdown. Some suppliers were charging double the price for gloves. I remember there was a period where Booker didn’t have any protective gloves. The stock returned, but it was double the cost price of what it was originally. I decided against buying this, though. Customers will end up resenting you if you charge them a noticeably higher price and they’ll never return to your store.” Harj Gill, Select & Save The Windmill, Birmingham

“I started stocking up for my staff before lockdown. Safety was one of my immediate priorities. I saw the reports of the coronavirus outbreak and wanted to make sure all my staff were protected and to reassure customers that I was taking safety in my store seriously. There were issues with high pricing due to supply and demand. As more businesses open due to the gradual easing of lockdown, this demand will increase further.” Chaz Chahal, Simply Fresh Inkberrow, Worcs

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

Chaz Chahal

NEWS

2-15 JUNE 2020 betterRetailing.com

Slush sales strong despite lockdown MEGAN HUMPHREY ON-THE-GO drinks are proving a hit for retailers during lockdown as summer approaches. Sales of drinks from Tango Ice Blast and F’real milkshake machines have reportedly been increasing in recent weeks. Coventry retailer Aman Uppal, of One Stop Mount Nod, told Retail Express he

has experienced a sales uptick of more than 100% on his slush drinks. “We are �inding families are buying them as a treat after they’ve been on a long walk,” he said. “We also started stocking American �lavoured Calypso drinks in March and have already gone through 40 cases.” Londis retailer Hitesh Modi, who has a F’real machine in his store in Chesh-

am, Bucks, added: “We have been selling milkshakes for a long time, but have seen a huge spike in sales recently.” Snowshock commercial director Peter Campbell con�irmed retailers are continuing to see demand for selfserve slushy products. However, he has stressed the importance of showcasing cleaning standards in front of customers during the coronavirus.

“Customers still need to feel con�ident the food-togo drinks machines are kept clean and hygienic, particularly if they are self-service,” he said. “We recommend that staff are visibly and regularly wiping down the handles and buttons that are used.” Uppal added: “We have created a separate queuing area to enable customers to do social distancing, and

Coronavirus Retailer Support Hub betterRetailing.com/news/coronavirus

we wipe down the machine after each use. This is what keeps customers coming back to us.” The advice follows retailers expressing concern that food-to-go sales would fall heavily during the pandemic. Go to page 26 to see how retailers are maintaining their foodto-go sales.

Shoppers stay loyal to local high streets HIGH street retailers should expect to see an increase in footfall when non-essential stores reopen on 15 June, said GlobalData. Lead analyst So�ia Willmott explained that independent retailers will appeal to shoppers who want to support local businesses. “Local town centres in particular will be better protected,” she said. “Consumers, many of whom are likely to be working from home for

a prolonged period of time, will prefer to make a short journey to their nearby high street, rather than travelling to another destination.”

2022 DATE FOR SCOTTISH DRS

All the latest news and advice on dealing with the coronavirus pandemic in one place Information, tips and support to ensure you can serve and reassure your customers The help you need to secure your business for now and the future For advice on adapting to these unique challenges, call 020 7689 0500 Lead supporters

THE Scottish parliament has passed regulations for a deposit return scheme (DRS) in Scotland. From July 2022, a 20p deposit redeemable in stores will be added to all canned, plastic and glass drinks. However, NFRN Scottish DRS committee chair Mo Razzaq has called for further action to ensure independent stores receive fair remuneration. “The commission must be higher for small stores that

will rely on manual returns,” he said.

Online delivery app nears 100 partners HOME delivery and click & collect app for independent shops Basket is nearing 100 partnered stores, according to EpoS expert Andrew Prince. He said the service’s partnership with The Retail Data Partnership and Booker enables it to generate an online site based on a store’s sales data within minutes. He added there were “no hidden costs” and the £350 on-boarding fee includes an android terminal or direct EPoS integration.

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PRODUCTS

Pernod Ricard UK’s new PMPs PERNOD Ricard UK has added £7.99 price-marked packs (PMP) of Campo Viejo Rioja Tempranillo to its range and is making more stock available to convenience retailers. The brand is growing ahead of the Spanish wine category and is the numberone red wine in the UK. The supplier says that PMPs are a key driver of sales in convenience stores,

with 82% of shoppers looking to purchase them as a part of their weekly shop. Eighty-three per cent of retailers also claim PMPs sell faster in their stores than the equivalent plain packs. Chris Shead, off-trade director at Pernod Ricard UK, said: “Consumers are savvy and know the average price of their favourite wines. “With 61% of shoppers believing PMPs offer better value for money than a nonprice-marked pack, we’re

launching one of our most popular wines to give consumers the con�idence they are being offered good value, helping retailers shift more stock and keep shelves rotating.” Campo Viejo Rioja Tempranillo PMPs will be available in six-bottle cases from major wholesalers from this month.

ACCOLADE Wines is expanding its Echo Falls brand with a Botanicals range. The new range, which was �irst launched exclusively into convenience before being made available in Tesco, is available in Melon & Mint and Raspberry & Lavender �lavours with an RRP of £4.50. The supplier says the

launch aims to cater to current consumer trends in botanicals, driven primarily by younger adults. It adds that 73% of no- and low-alcohol drinkers buy wine and, at 5.5% ABV, Echo Falls Botanicals will cater to consumer demand for fruitier and sweeter wine styles, which is growing at 2.1% year on year, with a

lower ABV intake. Caroline Thompson-Hill, European marketing director at Accolade Wines, said: ‘‘Echo Falls is the UK’s numberone fruit-�lavoured wine brand, worth £68.4m in a total category valued at £129.4m.”

PRIYANKA JETHWA

Echo Falls gets a botanical makeover thanks to new fruit-flavoured wine range

2-15 JUNE 2020 betterretailing.com

McVitie’s goes large with new loaf cakes PLADIS is expanding its McVitie’s cake range with new larger-format loaf cakes. Available now, McVitie’s Loaf Cakes will initially come in two �lavours, Zingy Lemon and Sticky Toffee (both RRP £1), with a Rich Chocolate variety joining the range later this year. The supplier said that sharing cakes are growing by 8.2%, and Claire Hooper, head of marketing for McVitie’s Cake Company at Pladis, added: “The current circumstances mean shoppers have been

spending far more time than usual in their own homes. “This has led to households making more of mealtimes, and the recent surge in popularity for McVitie’s wholecakes, which have grown by 54% in the latest four weeks, suggests shoppers are doing exactly that. “We also know that more people are relying on their local convenience stores, so it’s crucial that retailers ensure they stock up on familiar brands to drive sales in the cake aisle.”

Planning your new working environment? COVID-19 has undoubtedly affected us all, so getting your business up and running safely is the number one priority. We’ve successfully operated throughout the pandemic and are on hand to help give you the best advice and support to ensure your working environment is safe and ready to trade.

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PRODUCTS

Imperial launches Green Filter PRIYANKA JETHWA IMPERIAL Tobacco has added a Green Filter range across �ive of its brands, and launched a new variety under JPS called JPS Bright. The launches are designed to help retailers maintain menthol customers and grow sales now the menthol ban is in force. The Green Filter range includes the same tobacco blend the brands are known for, but new features include a white-tipped �irm �ilter that retains its shape and structure until the end of the smoke. It also uses reduced smoke-smell (RSS) paper, which is designed to re-

duce the linger of smoke on clothes and �ingers. Green Filter is being launched across JPS Players, Carlton, Windsor Blue, Richmond and Lambert & Butler ranges, available in packs of 20, with an RRP of £8.95.

A new way to eat chips properly

PROPER has added a �ifth �lavour to its Proper Chips range, Salt & Vinegar. The new �lavour is available now to independent retailers from Epicurium, Bidfood, DDC Foods, JDs and Olympic Foods. Epicurium offers the 20g single-serve product in cases of 24 at £14.08 plus VAT, and offers retailers a pro�it on return of 30% when sold at its RRP of 84p. Proper Chips was launched last year to provide shoppers with a healthier alternative to crisps and has added an additional £2.6m to the snacking category. Cassandra Stavrou,

co-founder of Proper, said: “More and more people are demanding healthier snacking options throughout the day, but taste remains the number-one priority.”

PREMIUM bakery supplier Rich’s is focusing on supplying retailers with individually-wrapped products, in line with meeting the changing demands of consumers during the coronavirus pandemic. Starting with cookies, all products will be available in individual wrapping to help retailers cater for the increase in at-home indulgent snacking and maintain store safety. It will also expand its range of thaw-and-serve cookies in retail-ready bags, ideal for convenience stores without an in-store bakery, or those looking to simplify their operations. The supplier says that the

demand for vegan products is also continuing to expand in the UK. Meat-free and plant-based diets were worth £3.4bn in 2019, while dairy and egg intake during the lockdown period has reduced by 15%.

Rich’s adapts retail model for c-stores

The supplier is also launching JPS Bright, which comprises a premium two-piece white stream �ilter tip that reduces the harshness of the smoking experience and RSS paper. JPS Bright features a new,

premium Virginia tobacco blend that is less bitter than traditional Virginia blends, designed to suit the taste palates of menthol smokers. The new range will be rolling out in superking packs of 20, with an RRP of £9.65.

2-15 JUNE 2020 betterRetailing.com

Cadbury cake shipper now available MONDELEZ International has unveiled a new Cadbury cake shipper, available for a limited period to independent retailers. The stand will include space for two facings of Cadbury Strawberry and Orange Cake Bars, alongside two facings of Raspberry and Chocolate Cadbury Mini Rolls. The shipper will also come with a standing display unit. All products have an RRP of £1 and offer a margin of up to 15% when sold at this price.

Pukka Pies launches New Weetos on-pack ‘home delivery’ packs promotion now live AVAILABLE from wholesale to independent retailers, Pukka is launching a ‘home delivery’ pack, which contains six pies. The new packs are designed to �it into consumers’ fridges or freezers, and come in All Steak, Chicken & Mushroom and Minced Beef & Onion �lavours, with an RRP of £7.49 each. PoS available includes window posters and website banners. Isaac Fisher, general manager at Pukka, said: “Our new packs are designed to provide an alternative revenue stream for wholesalers and independents at this critical time and help them to keep trading by delivering direct

to consumers at home. “We have seen a number of businesses start to diversify their model by offering direct-to-consumer services, so we have adapted quickly to offer a solution with this six-box offer.”

EXCLUSIVE to convenience retailers, Burton’s Biscuits Company has launched larger price-marked packs (PMP) of Maryland Cookies. Available from midJune, the new £1 200g PMP range will replace its 99p 136g PMP range, and will include three �lavours: Chocolate Chip, Double Choc and Hazelnut. The supplier says it aims to offer shoppers even better value for money and drive impulse sales. Kate Needham, marketing director at Burton’s Biscuit Company, said: “PMPs remain hugely important in driving sales in the impulse sector, playing a vital role in offering

shoppers reassurance when it comes to value, a factor that will be more important than ever as the nation faces into the challenges of a recession.”

Maryland Cookies now in larger packs

To get a list of Burton’s full range of PMPs, go to betterRetailing.com and search Maryland Cookies

THE Weetabix Company has launched an on-pack promotion for Weetos this month, offering nine consumers the chance to win £500 to spend on sports kit and equipment. The on-pack promotion will be available across 500g and 350g price-marked packs of the cereal, and will run in stores until August. To enter, consumers need to send in a photo of their Weetos pack or bowl as part of a unique sporting environment, whether that’s a basketball hoop made out of the box, or Weetos pack goal posts. Abbie Randall, marketing assistant at Weetos, said: “The on-pack campaign will stand out on-shelf, helping to

raise awareness of the Weetos brand and increase visibility and sales in store.” Weetos is worth £12m and is the fourth-biggest product in the chocolate cereal category, growing at 13% year on year in value.

COCA-COLA European Partners has reduced the RRP across its colas range of pricemarked packs (PMPs). Coca-Cola Zero Sugar 1.75l bottles – including the Cherry and Vanilla-�lavoured varieties – and Diet Coke are now available in a new £1.75 PMP, and 1.5l bottles of Coca-Cola Original Taste and Cherry are now available in a new £1.95 PMP.

Coca-Cola Zero Sugar 500ml bottles and its �lavours will come in a £1 PMP, as will Diet Coke Sublime Lime and Diet Coke Twisted Strawberry. According to the supplier, sales of larger pack formats have increased in recent weeks, as shoppers increasingly look for better value for money.

Coca-Cola lowers the RRP for its PMPs

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OPINION LEADING INDUSTRY OPINION ON THIS FORTNIGHT’S HOT TOPICS

What do you think? Get in touch for the chance to be featured in Retail Express

ATMS: How will the removal of a separate rates bill affect independents? “THIS is a landmark ruling from the Supreme Court, which will have huge impact on our sector and will help maintain widespread access to cash. The government now needs to set up a simple refund process that ensures full compensation is paid to all retailers who have been subject to wrongful bills.” James Lowman, chief executive, ACS

“THIS is a massive relief, not only for the supermarkets involved, but also for the consumers who need access to these machines. Many would have suffered if the judgement went the other way and retailers ripped the ATMs out of their stores, to save extra rates bills, denying free access to cash.” John Webber, head of business rates, Colliers International

This is a landmark ruling from the Supreme Court

DRS: What is the reaction to the passing of the Scottish regulation? “WE remain concerned about the impact of Covid-19 on businesses and their ability to plan for and invest in the scheme. However, we look forward to working with the scheme administrator once it is formed and indeed would welcome the opportunity to be part of it.”

2022 is a reasonable start date for us

“THIS policy was always going to happen and it was better to help shape it. 2022 is a reasonable start date for us. Even with the coronavirus, we have two years to build a policy that works. The Scottish government has listened to us so far, so I’m con�ident it will delay it if needed.” Mo Razzaq, Family Shopper, Blantyre

Pete Cheema, chief executive, SGF

WHOLESALERS: How is safety being prioritised as lockdown eases? “THE majority of our wholesale members have been reopening. We’ve got suppliers who can provide their staff in warehouses with additional personal protective equipment and we’re giving advice on how to complete the government’s coronavirus risk assessment checklist.” Tom Gittins, managing director, Confex

“WE have hired professional security guards. We have also added new shifts, which had reduced the number of staff on site at any one time, while still supporting stock replenishment. Communications have increased to help retailers when visiting Parfetts and in their own stores.”

We have added new shifts, reducing staff on site at any one time

Guy Swindell, retail director, Parfetts

COVID-19: How accessible is personal protective equipment?

I am unable to get them delivered until the end of July

“USUALLY, I order enough masks from Amazon for the month ahead, but lately they are either sold out or I’m unable to get them delivered until the end of July. I used to be able to get 50 for £11, but now they have gone up to as much as £45.” Sue Nithayanandan, Costcutter Epsom, Surrey

“RETAILERS asked whether we could get them access because they were confused about where to buy from. They wanted to use a company they trusted and knew was selling legitimate products. Orders are free and delivered by news wholesalers.” Richard Lamb, founder, BrownBox

LETTERS

2-15 JUNE 2020 betterRetailing.com

Letters may be edited

amit Puntambekar

Ash’s Shop Nisa Local, Fenstanton, Cambridgeshire

Meeting the new hierarchy of customer needs

‘Retailers hailed as heroes of their communities’ THE efforts of independent shop owners have caught the eye of mayors, members of parliament and national news shows in the past month. “Social distancing is better served by shopping locally. Independent retailers have done an amazing job. They

are providing one million extra weekly food deliveries, tireless extra hours spent in store and are pulling out the stops to support their local communities.” Dawood Pervez, Bestway managing director, told Sky News

stantial difference to everyone in the wider community.” A letter sent to Robin Bawa, owner of Stevenson Post Of�ice & Convenience Store, North Ayrshire, by Scottish Parliament Member Ruth Maguire

“The continued delivery of your services makes a sub-

“Long after this emergency is over, we hope you will

look back with pride and satisfaction on your part in maintaining the vital fabric of our society.” A ‘certi�icate of gratitude and appreciation’ received by retailer Anita Nye (pictured), of Premier Eldred Store in Orpington, Kent, from the mayor of Bromley, Hannah Gray

WIN £50-worth of Carabao

WIN £50-worth of Trebor

CARABAO Energy Drinks is offering 50 retailers £50-worth of stock and PoS from its new price-marked range. Carabao is the fastest growing energy drink on the market, known for high-profile football sponsorships, its fruity taste and lower sugar content.

TO recognise and celebrate the incredible work by retailers in these challenging times, Trebor, the UK’s number one mint brand, is giving five lucky retailers the chance to win £50-worth of its core range and latest products, including Trebor Cool Drops, Trebor Extra Strong Minis and Trebor Soft Fruits.

TO ENTER

Fill in your details at:

betterRetailing.com/competitions

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

I’D like to start by saying that I hope everyone is trading, and, most importantly, safe. I want to focus on the latter, and the steps we have taken. In 1943, the psychologist Abraham Maslow created the idea of a ‘hierarchy of human needs’, which, in my opinion, is important to understand in Each issue, one of seven top our industry. retailers shares advice to As a result of make your store magnificent the Covid-19 pandemic, our customers, old and new, are now concerned about something they had never thought about before: safety while shopping. In response to this, we have introduced Perspex screens, floor markings, a traffic-light system and a hand sanitiser point in store. Mostly, these steps were done early, and this gave our customers a lot of relief that they could shop safely with us. Starting their journey outside the shop with social distancing queue marks, to within the store where they shop knowing we have sanitiser points and social distancing. Finally, at the end of their trip, we have Perspex screens installed and a two-metre distance for them to stand away from the cashier. Most of the above mentioned steps are not only relatively cheap to implement, but will also drive customers to your business in the long term. This is the time for every one of us to shine and show the very best of what we do, day in, day out. I am of the belief that while social distancing remains, trade will continue at this increased level, but only if we’re meeting the new customer need of having a shopping environment they feel they can use safely. To further take advantage of the increase in trade, we have started running a basic promotional package, on lines where we are confident we can secure a certain level of supply. Convenience stores are not supermarkets, but customers will still expect us to have a basic level of promotions if the supermarkets are doing the same. A final note, not related to customer needs, but retailer needs. The government has offered a range of grants and loans to small business. It is imperative that you spend some time seeing what is available to you, and what is applicable. These can be used to invest in your business, and even offer a cash-flow buffer for the potentially unsteady future.

Get in touch

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

CATEGORY ADVICE

SUPERCHARGE YOUR SNACKING SALES

RETAIL EXPRESS catches up with competition winner JEY SIVAPALAN from Derbyshire to find out how Mini Babybel’s in-store makeover helped him increase his chilled sales MINI Babybel teamed up with Retail Express in January to give away a store makeover and a month’s worth of stock to one lucky retailer, with four runners-up receiving a mini fridge. In March, we visited competition winner Jey Sivapalan, of 1 Stop Convenience (Go Local) in Derby, with Claire Wynne from Mini Babybel, to share category advice on upgrading his chilled and dairy to drive sales.

FOCUS ON JEY SIVAPALAN 1 Stop Convenience Store (Go Local), Derby

CHALLENGES Attracting impulse sales: Jey’s chiller is at the back of his store, so he had no way of driving impulse sales. Changing shoppers: Jey’s shoppers are increasingly looking for snacks to go, but these products were difficult to find. Making bestsellers visible: Jey stocks a wide chilled range, but did not highlight bestselling lines and potentially missed sales.

CHANGES TO DRIVE SALES Driving impulse: A Mini Babybel-branded mini fridge was placed by the till to capture shoppers’ attention. Focus on snacking: We grouped together snacking products, such as Mini Babybel, making it easier to shop the fixture. More visibility: We added PoS across the fixture to help top-selling lines stand out and entice shoppers to try something new.

BEFORE

In partnership with

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Promotional feature

AFTER

THE RESULT

JEY SAYS

“I’M really happy with the changes Mini Babybel recommended for my chilled and dairy range. My chiller is now merchandised logically and it’s easier for my customers to find what they’re looking for quicker. Since the visit, I’ve found more of my shoppers are buying chilled snacks, such as Mini Babybel. Introducing a secondary siting has also really helped to increase impulse sales.”

22%

The increase in sales between week one and week five of the trial period

KEY LESSONS

Introduce a secondary siting of top-selling dairy lines, like Mini Babybel, to drive impulse sales.

Create a flow by grouping chilled products together to help shoppers locate the right products.

Use PoS to showcase new products, like Mini Babybel, and to make your display noticeable.

DRIVE SALES IN YOUR STORE For information on how you can grow sales in your store, or to order your own Mini Babybel mini fridge, call 020 7689 0500

MINI BABYBEL’S TIPS FOR YOUR STORE

1 2 3

Cater to increasing consumer demands for healthier snacks by offering portion-controlled, high-protein options, such as Mini Babybel.

AFTER

Maximise sales opportunities by introducing a secondary siting of top-selling dairy lines, such as Mini Babybel, next to crisps, lunch snacks or sandwiches. Capitalise on seasonal opportunities, like summer snacking and back to school, to attract customers to the chiller.

EXPERT ADVICE CLAIRE WYNNE Channel manager, Mini Babybel “I’M delighted to see that sales of Mini Babybel have increased significantly over the trial period, while similar products have remained flat. What’s even more encouraging to see is that cheese as a category has more than doubled in sales. Introducing market-leading lines, such as Mini Babybel, merchandising to create the right flow and an additional siting near the till have all helped increase impulse purchases and drive sales.”

GET INVOLVED

For more advice and tips, and to see more of Jey’s store, go to betterRetailing.com/supercharge-your-snacking-sales

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CATEGORY ADVICE SUMMER SOFT DRINKS

2-15 JUNE 2020 betterRetailing.com

SUMMER REFRESH As a summer like no other arrives, what soft drinks trends are going to drive sales and profits for your store? TOM GOCKELEN-KOZLOWSKI takes a look

IMPACT OF CORONAVIRUS IT’S difficult to overestimate the impact Covid-19 is having on ways of life, and, by extension, key convenience store categories. “Consumer buying behaviours across soft drinks inevitably changed in the wake of Covid-19, and what we saw was a rapid shift in sales across different formats,” says Haleem Sadiq, director of trading, retail, at Bestway Wholesale. “Retailers were initially left with on-the-go formats as consumers stayed home, and the first week of lockdown, when panic buying was broadly seen across the country, led to a significant uplift in water sales as

people focused on health, wellbeing and core staples, with demand shifting to in-home and take-off formats.” Meanwhile, Wayne Thompson, business unit controller for out of home at FrieslandCampina, points out that while 1l formats of Yazoo have grown 31% year on year, it’s important not to neglect impulse formats. “We must not forget that there is still demand for onthe-go formats,” he says. “There are key workers who still require a refreshing drink as part of their lunch or as a pick-me-up.”

ENERGY DRINKS THAT TASTE GOOD MANY current trends long predate the coronavirus crisis, of course. Energy drinks are “one of the largest and fastest-growing categories in impulse grocery”, according to Red Bull, and Euromonitor data backs this up. For the past decade, energy has been the fastest-growing segment within soft drinks, with growth predicted to continue for the next five years. Red Bull’s latest innovation has been Red Bull Zero, a sugar-free variety of the energy drink that the firm says “offers shoppers more choice for

those moments where they’d rather have less sugar”. Yet, for much of its existence, the energy category was held back by a perception that its products didn’t taste good. Red Bull, with its range of flavours such as Orange, Tropical and Coconut, isn’t the only brand to heed this. “Consumers are increasingly opting for flavoured varieties when choosing an energy drink, with flavoured energy now accounting for 34% of the mainstream energy market and growing faster than original energy,” says Adrian Troy, marketing director

at Barr Soft Drinks. AG Barr rolled out Irn-Bru Energy nationwide in November last year after an earlier launch in Scotland in July 2019. Coca-Cola European Partners, meanwhile, has innovated its energy brand, Monster, with a host of new flavours including Monster Pacific Punch and Monster Ultra Paradise, which both arrived earlier this year.

CATEGORY ADVICE SUMMER SOFT DRINKS

NEW PRICE MARK

SUPPLIER

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John Luck, chief marketing officer, Carabao “WHILE in 2020 people will probably spend the majority of their summer at home due to Covid-19 restrictions, the demand for great-tasting, refreshing and especially healthier soft drinks will continue. “Lockdown has accelerated this trend, with even more shoppers increasingly conscious of what they consume, and looking to purchase lower-sugar, healthier drinks. ‘How the product affects my health and well-being’ is now the number-two factor influencing shoppers’ purchasing behaviour, according to the GlobalData Covid-19 survey conducted in April 2020. This comes above traits such as cost, or even enjoyment.”

Price mark pack accounts for over 60% of total soft drink sales in independent and symbol convenience stores1 ml

1P £ PM

500

*Recommended resale price

PRICE IS KEY WHILE keeping an eye on the new trends in soft drinks and trying them in your store to see what’s a hit with your customers is vital, so is getting the basics right. Price and a sense of value is often important, and for many retailers, pricemarked packs remain one of the best the ways to do that. Recently, Carabao announced it had launched 69p price-marked cans for three of its flavours in time for summer, with the aim of

SCAN TO ADD TO YOUR NEXT ORDER Diet Coke Lime

Coke Zero

Coke Zero Cherry

Coke Zero Vanilla

Coke Zero Strawberry

Scan to receive your PMP POS kit *Recommended resale price is a recommendation only and you are free to set the price at whatever level you determine. Source: (1) AC Nielsen MAT Total Soft drinks independents and symbols w.e. 21.03.20. ©2020 The Coca-Cola Company. All rights reserved. COCA-COLA, COCA-COLA ZERO and DIET COKE are registered trade marks of The Coca-Cola Company.

COC1254_CCEP PMP Trade_Ad_FC-IC_Bookends-RE_AW1.indd 1

22/05/2020 17:00

taking advantage of the format’s popularity. “The introduction of these price-marked cans follows the impressive record sales growth in retailers that opted to introduce Carabao’s new lower price at the start of the year,” says Carabao’s John Luck. “During Q1 2020, sales data for convenience retailers has shown that Carabao Green Apple and Mandarin Orange have overtaken key competitors such as Relentless Origi-

nal and Monster The Doctor in energy drinks rate of sale rankings. One convenience customer saw a staggering rate of sales growth of 226% after the introduction of the lower promotional price.”

2-15 JUNE 2020 betterRetailing.com

SAME GREAT TASTE Flavoured Light Colas are worth £171 million and growing +17.7%2 L

1.75

5 £1.7P* PM

*Recommended resale price

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Matt Gouldsmith, channel director for wholesale, Lucozade Ribena Suntory “A SPIKE in sales can normally be expected at this time of year, given the weather and increased summer events – and, when the sun comes out, this can be boosted even further. However, this isn’t a typical summer. At the time of writing, people are still able to exercise, so hydration in the warm weather will remain important. Usually we’d see soft drinks sales increase by 1.6% for every 1°C temperature change. This makes it hugely important for retailers to have their drink-later soft drinks range ready for shoppers who are enjoying the warmer weather in their gardens. “Due to the impact of the coronavirus outbreak, this summer will see shopper missions in the convenience channel shift from impulse to top-up as the number of big night in occasions rise. LRS has adapted its production schedules to make more larger pack sizes on its core drinks including Ribena and Lucozade Energy, which, with consumers staying at home, are now more in demand than ever.”

POWER OF INNOVATION IT’S not just new tastes and flavours that are driving product development in the soft drinks category. In particular, the desire for more natural ingredients you’re probably seeing throughout your store has also come to soft drinks, and the big names are coming up with products to meet this need. “In terms of growth drivers, it’s important to remember shoppers want excitement when looking for a soft drink. We are investing in ambitious innovations across our range of leading brands to drive

sales for retailers this summer and beyond,” says Lucozade Ribena Suntory (LRS) channel director for wholesale Matt Gouldsmith. “Lucozade, the UK’s biggest sports & energy drinks brand, has tapped into this trend with the recent launch of a new sub-brand. Sweetened with Stevia, and with 4.3g sugar per 100ml, Lucozade Revive is designed to offer a different type of energy. It’s not a boost or a buzz, it’s a naturally inspired uplift that makes drinkers feel revitalised and back in the groove.”

SCAN TO ADD TO YOUR NEXT ORDER Coke Zero Cherry

Coke Zero

Diet Coke

Coke Zero Vanilla

To find out more visit www. cokecustomerhub.co.uk or call Customer Hub on 0808 1 000 000 *Recommended resale price is a recommendation only and you are free to set the price at whatever level you determine. Source: (2) AC Nielsen MAT Total GB Light Cola w.e. 22.02.20. ©2020 The Coca-Cola Company. All rights reserved. COCA-COLA, COCA-COLA ZERO and DIET COKE are registered trade marks of The Coca-Cola Company.

COC1254_CCEP PMP Trade_Ad_FC-IC_Bookends-RE_AW1.indd 2

22/05/2020 17:00

CATEGORY ADVICE SUMMER SOFT DRINKS

MAKING MORE FROM DAIRY-FREE BRITS have been gradually embracing dairy alternatives in greater numbers over recent years, but the trend has been given a shot in the arm with the rise of oat milk – a substitute that has gone from being a niche concern to a fixture on the menus of Pret a Manger, Costa and more in less than two years. Last September, Mars Chocolate Drinks and Treats added Galaxy Oat to its range in response to what it calls “consumer trends for vegan options”. The drink is joined by another on-trend dairy-free

2-15 JUNE 2020 betterRetailing.com

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product, Bounty Coconut, both of which contain no added sugar and are registered with The Vegan Society. Both products are available in a 250ml format. Michelle Frost, general manager at Mars Chocolate Drinks and Treats, says: “We are really excited to be offering a range of drinks that meets growing consumer demand for dairy alternatives. “These varieties not only bring familiar confectionery favourites to the category, but also give the opportunity for customers to enjoy nondairy drinks on the go.”

Emma Wood, head of F’real EME, Rich Products “WHEN it comes to indulgent, sweet drinks, dairy is still in high demand. Cold dairy drinks had 244 million servings in 2018, up 6.2% on the previous year. “Milkshakes, which make up nearly half of cold dairy drink servings, had particularly strong growth. “In addition, flavoured milk was up by more than £15m to £156.7m in 2017, so the market is clearly benefitting from an increase in consumers seeking sweet rewards. “Grocery outlets keen to cash in on this growing trend now have an almost risk-free way of driving increased revenue from this fast-growing category.”

six products to stock

Galaxy Oat Alongside Bounty Coconut, this product caters to the growing trend in dairy alternatives. Available in a 250ml format.

RETAILER

THE DECLINE OF SUGAR GALAXY Oat and Bounty Coconut join many other new products that are launching with either low or no sugar, as shoppers’ efforts to live healthier lives continues. Becky Unwin, senior brand manager at Vimto, says the new Vimto Remix range, which has provided £9.2m of incremental sales, is a nosugar launch retailers need to be aware of when reviewing their range.

Unwin says: “Vimto Remix Orange, Strawberry and Lime is a refreshing, citrusbased newcomer to the range, crafted from a mix of three real fruits and the topsecret Vimto blend of herbs and spices. “In terms of flavour popularity, orange is second only to cola, so we’re expecting this new no-added-sugar launch to be the soft drink of the summer.”

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Kuki Grewal, Budgens, Thames Ditton, Surrey “OUR soft drinks are a little different at the moment. We’re not seeing so many sales of smaller formats because these often come from school children or people coming in during office hours. Instead, we’re seeing more sales of larger formats as people are drinking more at home. “Top-selling larger formats for us are Coca-Cola, Diet Coke and lemonade. I think the move away from small formats is benefitting traditional core range products. We’re keeping all of our products at RRP. Other trends are continuing as normal. As the hot weather comes out, we’re seeing a big increase in our sales of waters.”

Vimto Remix A no-sugar brand extension, Vimto Remix provides shoppers with a mixture of strawberry, lime and orange flavours all in one. Yazoo The brand’s core flavours – Chocolate, Banana and strawberry – are experiencing double-digit growth in their large 1l formats. Red Bull Zero Offering a similar taste to Red Bull Original and an alternative to Red Bull Sugarfree, this product is a new addition to the energy giant’s line-up. Irn-Bru Energy The product arrived in stores around the country last November after a successful launch in Scotland in July. Lucozade Energy Citrus Chill The brand’s new lemon & lime-flavoured drink has been launched ahead of the summer season, and comes in 380ml PMP and standard packs.

We're committed to driving your sales with our tasty, lower-sugar drinks

CATEGORY ADVICE OWN LABEL

EACH TO THEIR OWN DARYL WORTHINGTON takes a look at how own label is evolving in convenience stores, and how retailers are using it to benefit their businesses

MORE THAN VALUE THE meaning of own label has diversified massively in the past few years as symbol groups work harder to broaden and strengthen their offering in convenience stores. For many, this means own label is more than just giving your shop a value option. Costcutter and Nisa stores now being able to stock Co-op products is perhaps one of the biggest changes, giving these

independent stores the opportunity to benefit from an established and well-recognised brand name. Retailers from both symbol groups have highlighted just how significant this change has been, in particular pointing to its positive impact on their meals for tonight and fresh ranges. The breadth of own-label ranges has also diversified,

which, in turn, can give retailers entry into new categories. Spar, for instance, has broadened its offering in recent years. The range now includes alcohol, grocery, fresh foods, frozen and confectionery, as well as its food-to-go brand, Daily Deli. Own-label products, meanwhile, can also prove a key point of difference for your business.

“One Stop strawberry trifle – a bestseller for us – it can’t be purchased anywhere other than a One Stop retailer. Own label gives shoppers a reason to shop in my store,” says Vip Measuria, owner of One Stop @ The Prior Way in Derby. “Own-label products have been incredibly important, even before the coronavirus – they’re staple lines for us in both our stores.”

THE COVID-19 EFFECT CORONAVIRUS is, of course, changing everything, and that could include the importance of own-label products. In the short term, with shortages still an issue, shoppers are less likely to be hunting for specific brands. Using own-label products to fill gaps in your shelves is therefore a great way to keep availability up and community needs met. Longer term, the post-Covid-19

outlook could be a bleak one. Redundancies and furloughs are having an effect and will likely continue for the coming months as the economy readjusts. “There’s a good chance that people will be counting pennies a lot more in the coming months,” says Samantha Coldbeck, of Wharfedale Premier in Hull. “That means that good-quality symbol products are going to be vital. We’re already starting to

RETAILER

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Samantha Coldbeck, Wharfedale Premier, Hull, East Yorkshire see the effect in our store, and it will make it even more critical

that retailers stock a range that can meet everyone’s needs.”

“WE always aim to have a ‘better, best’ range across our store, and the own-label products we get from Booker are an important part of that. At the moment, of course, availability is a real challenge and that’s the priority, but generally speaking, they’ve have been very good. “The Euro Shopper range lets us offer a variety of options across the store, and this means we meet more shopper needs. For instance, from Monday to Thursday, people will buy the own-label version of a product, then trade up at the end of the week to treat themselves. You also really see this at the end of the month. For example, customers treating themselves to some Heinz Beanz after pay day for their Sunday breakfast. The important thing is that having both own label and branded names means you can meet both needs.”

CATEGORY ADVICE BABYCARE

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21 23

Advertorial

DOWN WITH THE KIDS

Gary Elliot Head of category and shopper development, Danone

Is your babycare range hitting all the latest trends? TOM GOCKELEN-KOZLOWSKI finds out

How you can grow your baby-feeding sales OFFERING a credible baby-feeding range, including products from Cow & Gate, the number-one brand within the category1, could help drive sales for retailers. Parents shopping this category are very brand loyal, so if they can’t find what they are looking for, they are likely to go elsewhere. This shows that there is an opportunity to drive customer loyalty and help drive sales by stocking baby-feeding products. We often work with retailers – large and small – to help parents navigate the category and help educate them throughout their feeding journey. A great example of this is when our field team worked with H & Jodie’s Nisa Local in Walsall to help boost their baby-feeding value sales by 84%. The growth was made possible through simple changes.

the stat

55%

1. Separate baby-food products from others so there’s a clear distinction, and ensure you stock the optimal core range in the milk, food and cereal sub-sections.

of shoppers go to independents for top-up missions

BAD NEWS, GOOD NEWS WHEN it comes to the babycare category, there is good news and there is bad news. To get the bad news out of the way, the UK has a falling birth rate (though who knows for how long after months of lockdown). “Although worth £232.8m across total grocery, a falling birth rate is currently the biggest obstacle to category growth for baby food,” explains Chris Eley, category insights analyst at RH Amar, which distributes Ella’s Kitchen. This means stores need to work harder to attract parents and need to get them spending more to maintain – let alone grow – profits.

More positively, however, independent retailers look like they are particularly well positioned to capitalise on the opportunity. “More than half (55%) of shoppers say they go to convenience and independent stores for top-up missions, and we know feeding is a strong performer in the babycare category as a whole,” says Gary Elliott, head of category and shopper development at Danone. “Therefore, baby-food products in convenient top-up formats – such as sachets, jars and pouches – should be prioritised and give incidental purchases prominence in store.”

2. Merchandise products in a logical order for easier navigation, such as grouping baby-food jars in ages from four-to-six months to 10 months onwards. 3. Place similar products close together so customers can easily find what they’re looking for within their preferred brands.

RETAILER

IMPORTANT NOTICE: Breastfeeding is best for babies. Infant formula is suitable from birth when babies are not breastfed. Follow-on-milk is only for babies older than six months as part of a mixed diet and should not be used as a breastmilk substitute. We advise that all formula milks including the decision to start weaning should be made on the advice of a doctor, midwife or a healthcare professional.

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Bimal Patel, Londis Ferme Park Road, Stroud Green, London

“BABYCARE is a very important category for us. Customers come in really needing these products, so stocking a good range is vital. It’s really what being a convenience store is all about. We have a one-metre display and, within that, we stock milks, baby food, creams and nappies – you need to stock a wide variety of products. “The margins vary across the category, but are fair. The category attracts shoppers who buy a larger basket, buying multiple babycare items and other products around the store. They also tend to come back regularly, so it’s about building loyalty.”

IRI HBA/HH Impulse Value Latest 52 weeks – w/e 18 April 2020

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CATEGORY ADVICE BABYCARE

2-15 JUNE 2020 betterRetailing.com

FAMILIAR TRENDS TRENDS in babycare reflect and magnify consumers’ wider concerns and preferences, so it is unsurprising that, as scratch cooking grows in the grocery market, products that cater to this have arrived for infants. “We are seeing a continued rise in consumer demand for convenience and ‘homecooked’-style meals, with links to more fresh and natural ingredients,” Elliott says. “This has led to continued product innovation across the baby-feeding category. Around 40% of shoppers now place importance on the natu-

rality of a product, while nearly half want full clarity of the ingredients in a product when purchasing it.” To reflect this, Danone’s Cow & Gate and Aptamil cereal products now have new recipes, introducing “more exciting textures and adultlike flavours” to its range. Another trend that follows adult grocery is the rise of dairy-free, according to Ella’s Kitchen. The firm recently launched the UK’s first range of dairy-free pouches in response to research that 7% of babies under the age of one suffer from a dairy allergy.

The range of coconut milk-based products includes Rice Pudding with Banana & Strawberries, Pear & Fig Porridge and Banana Yoghurt. RH Amar’s Chris Eley says focusing on these trends is vital in a potentially tough market. “There are still some pockets of growth, at a brand and sub-category level, but under what is a challenging market, it’s essential for retailers to get the product mix right if they’re going to maximise the opportunity for sales,” he says.

CONVENIENCE IS KING SO, how else can stores attract shoppers with younger children? As any parent will know, convenient options are a godsend. For Danone, this has meant creating new milk formats for infants. “For those busy parents searching for convenience, we launched new sachet packaging for our First Infant milk, Follow On milk and Growing Up milk products across both Aptamil and Cow & Gate brands in February,” says Elliott. “These are easy to carry and ready to mix, removing the

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need for counting scoops.” Meanwhile, Ella’s Kitchen has focused on developing a range of snacks as the demand for snacking is a driving factor in the babycare category. Eley says: “Strawberry & Banana Melty Puffs are leading Ella’s Kitchen’s charge in snacking and are among the brand’s bestselling products in convenience, while Tomatoes & Leeks Melty Puffs, Sweetcorn & Carrot Melty Sticks and two Oaty Fingers products (Strawberry & Apple and Banana & Raisin) are also popular.”

five top tips

The category needs care With a falling birth rate, the opportunities in babycare will go to those stores willing to put in time and effort. Follow the trends Similar trends are taking hold in babycare as in the rest of the convenience market, such as on the go. Position these products clearly Suppliers stress that busy parents need an easy-tofind fixture. Encourage large basket spend Multi-deal promotions and good merchandising can mean bigger baskets. These customers stick around Customers who can find what they need in your store at this time can become shoppers for life.

Gary Elliott, head of category and shopper development, Danone

“INDEPENDENT convenience stores should invest in babycare for a simple reason: young families represent 56% of customers and spend 38% more than the average shopper. We also know from shopper feedback that consumers – particularly parents – are increasingly busy, so they are looking for ways to make their shopping trips as efficient as possible. “Through babycare, independents have a huge opportunity to offer customers the products they want and need at a closer proximity to their homes.”

A PATH TO SUCCESS MAJOR brands, then, believe they have worked out the right formula to profit in this category, no matter what challenges exist. Ella’s Kitchen has seen total sales of £67.1m in the past year across all retail outlets, and with a 28.8% share of total baby food, has become a must-stock, according to Sam Higgins, senior brand manager for Ella’s Kitchen at RH Amar. “Indeed, it appears that many convenience retailers already understand this, with Ella’s Kitchen accounting for more than £1 in every £3 spent on baby food in impulse and convenience,” Higgins says.

As such, it makes sense to foreground the category in store, according to Elliott. “As a high-value category, my number-one tip for retailers is to place their baby-feeding fixture at the front of the store to help drive awareness and improve accessibility for parents,” he says. “These parents may well be shopping with buggies, making it difficult to move around small stores. “An ideal location for the baby-feeding fixture is next to the newspaper and health and beauty sections.” Get it right, and these young families can be loyal customers for life.

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2-15 JUNE 2020 betterRetailing.com

‘OUR FOOD TO GO MORE THAN TRIPLED’ RETAIL EXPRESS finds out how retailers are selling food to go during the coronavirus pandemic

THE PROBLEM Shopper habits are changing rapidly, and that means convenience stores have to adjust. Food to go is a category that has taken a significant hit after a drop in footfall due to more people eating at home, and growing hygiene concerns. Three retailers share how they’re maintaining food-to-go sales during the coronavirus pandemic

Dan Brown, Pinkie Farm Convenience Stores, Musselburgh, East Lothian

“WE closed down our food-to-go section at the start of the crisis, more as a result of a staff shortage than anything else. After two weeks, we started to open it up again, keeping the range as simple as possible, satisfying the customers who were coming in by making sure we could still offer the basics. “A big change has been that customers are now looking more to evening meals than breakfast things in the morning because all the local restaurants have closed down. So, we’ve made it a priority to have a strong range of evening meals. “We’re also now selling meal kits that are built from our food to go. For instance, ‘make your own pizza’ or ‘make your own curry’, as well as an afternoon tea platter and things like that. “We’re very conscious of the fact that people are eating more at home, and big nights in are more important now.”

Atul Sodha, Peverills Londis, Harefield, Middlesex

“OUR food to go has more than tripled in the past few weeks. We’re selling a much bigger range of products than we did before, from southern fried chicken burgers to homemade bread pudding. “To get food to go right, you need to be doing something that really stands out. People are having to eat from home now with all the restaurants and cafés closed, and they’re getting tired of it. If you can offer them something good-quality and easy, then it’ll be popular. A case in point: since this crisis started, we’ve sold more than a thousand homemade samosas. “We offer a number of really good, unique products, and we post a few pictures of them on Instagram or Twitter, so customers know we have them. But the thing that really makes a difference is when they come into the store and see it for themselves. They’ll try it, and if it’s good, they’ll spread the word for you.”

Dennis Williams, Broadway Premier, Edinburgh

“OBVIOUSLY a lot has changed throughout our store since the crisis started and food to go is no different. We’ve had losses in some sections of the category, and gains in others. “We’ve had fewer people coming in for our lunchtime specials – instead we’re selling a lot more rolls and sandwiches through the day, sometimes as late as 9pm or 10pm. “We’re getting a lot more health workers and carers coming in, and they’re eating on the hoof, grabbing something quick. So, we’ve stopped doing the lunchtime specials and focused on making more of the grab-and-go-type things. As a retailer, you need to think on your feet and adjust to what people need. “With bakeries and restaurants around here being shut, we’re serving different customers than we were before. The challenge is to retain those customers by making sure you’re offering good quality and service.”

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