Retail Express - 8 August 2023

Alex Yau, acting editor

THIS issue is the rst in my stint of overseeing Retail Express as acting editor, while my colleague Megan Humphrey is on sabbatical until September.

Although I am excited about working more closely with retailers during the next month, I have taken on the role at a time where the issue of small shop crime has hit the national headlines yet again.

Harrowing gures recently published by the O ce for National Statistics and convenience chain Co-op have put a spotlight on rising crime levels, prompting calls for the government and police to introduce stricter enforcement on o enders.

Although the reports are newly released, many independent retailers are sadly already too familiar with these distressing incidents. I’ve repeatedly spoken to many of you in the past who experience issues ranging from the to physical and verbal abuse on a daily basis.

Just recently, I was informed of a retailer who had their entire shop ransacked in a horrible attack. Thankfully, the retailer is okay, but nobody should ever have to go through such terrible situations when they’re simply trying to make a living for themselves and their family. The repercussions aren’t just limited to the business, but the mental and physical well-being of those involved.

My main responsibility as acting editor will be to ensure Retail Express ghts on your behalf. It doesn’t have to be shop crime – we will have your back no matter the problem, so please do not hesitate to get in touch.

Urgent action demanded to stop record shop crime levels

RETAILERS have called for more urgent police action, as new �igures reveal store crime is “spiralling out of control”.

The latest annual crime report from the Of�ice for National Statistics show that small shops in England and Wales reported nearly a quarter more shoplifting incidents than last year. These �igures

re�lect similar issues recently highlighted by Co-op, which claimed crime levels by criminal gangs were rocketing to record levels.

The convenience chain reported that its stores experienced nearly 1,000 daily incidents of crime, shoplifting and antisocial behaviour this year.

In response to these issues, the Fed and ACS have demanded more urgent action from the police.

Fed national president Muntazir Dipoti said: “Shop theft is not victimless. It blights the lives of independent retailers on a daily basis and has signi�icant implications for a store’s viability.

“Retailers are disillusioned by the lack of police action when crimes are committed,

so they do not report them. It is possible the number of cases of shop theft could be even higher.”

Pledges from police chief constables were included on the cover of The Times last month, promising they would investigate crimes with “a reasonable lead”.

Lottery commission DRS debt

UPCOMING National Lottery operator Allwyn has reassured stores that existing commission levels for games will not be slashed when it takes over in February 2024.

Specialist reporter Dia Stronach 020 7689 3375

It has given an 18 December deadline for retailers to transfer their National Lot-

tery agreement from Camelot. Under the new agreement, commission levels for games, scratchcards and prize payments will remain the same.

Monthly terminal fees will also be removed for some retailers, equivalent to an annual saving of up to £600.

CIRCULARITY Scotland (CSL) owes creditors nearly £90m following its administration, with Booker and major drinks �irms among those out of pocket.

Companies House documents �iled last month revealed the body, which was

Illicit tobacco

MORE than a �ifth of cigarettes smoked in the UK last year were counterfeit products, according to research commissioned by Philip Morris Limited (PMI).

05

Vape recycling

consumption rose by 3.1% to 21.2% of total cigarette use last year. North-east England was the most prevalent region for counterfeit and contraband products, driven by growing pressures

RETAILERS have the chance to get a free disposable vape bin for their store, provided by non-pro�it organisation Green Wings Project.

The �irm has so far distributed 6,000 of the onemetre-tall bins to conveni-

Cover image: Getty Images / vgajic For the full story, go to betterretailing.com and search ‘National Lottery’ For the full story, go to betterretailing.com and search ‘tobacco’ For the full story, go to betterretailing.com and search ‘Green Wings Project’

ence stores and newsagents, with 9,000 still available. Chief executive Yan Man told Retail Express there is no criteria for retailers to meet.

The project is funded by vaping supplier Elux.

Retailers threaten to ditch Uber Eats a er sales losses

ALEX YAU

RETAILERS have threatened to boycott home delivery giant Uber Eats, after the �irm’s latest string of forced changes led to hundreds of pounds in weekly sales being lost.

In June, the �irm implemented store-wide reviews of menus designed to improve customer navigation through its service. This included the removal of product lines that had been duplicated across different categories, and separating categories into different menus. Uber piloted this in several stores prior to a wider rollout, and claimed the trial had led to sales nearly tripling in some branches.

However, the changes were forced on some stores without any warning provided to the owners. One affected Nisa owner, who asked not to be named, told Retail Express this had caused them to lose several hundreds of pounds in weekly sales over several weeks.

More than 200 products were deleted, which included core lines such as alcohol, pasta, hot food to go and curry sauces. Speci�ic brands impacted included Tango Ice Blast, Stella Artois, Dr Pepper, Kopparberg, Asahi and Co-op own label. The removals also meant the retailer was unable to run popular promotions, including sandwich meal

deals and slushies/popcorn combinations.

The retailer said: “I noticed the issues when I checked my menu, but I otherwise was given no notice. I contacted Uber Eats constantly to get an answer, but they were completely ignoring me. One time I was getting nowhere over the phone, as I kept being told to look at my emails instead. None of our products were duplicated, as they claimed.

“You’re never going to win with Uber Eats and we threatened to move our business elsewhere if improvements weren’t made.

“The service levels from other home delivery providers, such as Just Eat and Deliveroo, are getting sharper, but Uber Eats seems to be getting worse. They’re in the dark ages with the way they ask you to manage your business on the system. It’s not just our sales that have been impacted by the deletions, but also our time. Adding more than 200 products to our menu took over three hours of work. That’s massive. Uber is not accepting any liability. It’s just pure arrogance.”

Two other store owners con�irmed to Retail Express that the changes had impacted their business. One of the affected retailers said the review required them to increase staf�ing hours to accommodate the alterations, and said: “All of this is costing us time on our rota at a considerable cost for some-

thing we didn’t ask for.”

The retailers said their symbol groups had stepped in to assist with the issues, but were also unsuccessful in getting Uber Eats to correct the changes.

Retail Express understands the �irm has since re-added the products to the Nisa retailer’s menu following ongoing pressure. However, the �irm accused the store owner of unprofessional conduct during its communication with

them. The retailer, who has their own paper trail of communication, has demanded Uber Eats provides evidence to back up its accusations.

“I’ve been impacted by Uber’s actions, and can’t accept these allegations,” they added.

These changes are the latest in an ongoing battle between Uber Eats and independent retailers. Earlier this year, the �irm removed vape lines from the menus

of small shops, despite store owners being able to provide proof they were compliant.

The delivery �irm said the decision was to prevent illicit sellers from stocking dodgy vapes. Meanwhile, supermarkets were being allowed to stock vapes, giving them a competitive advantage over nearby small shops.

Uber Eats failed to comment as Retail Express went to print.

How are you supporting customers who are on tighter incomes?

“WE have an initiative in the store where we’re donating £1,000 to 20 families to help fund school uniforms. It’s a challenging time, and we understand it can be di cult to pay for certain essentials. A lot of promotions are being run on products such as 2l Coca-Cola and Heinz Beans for 55p. The customer feedback has been brilliant and our turnover has remained the same as it was at the peak of Covid, so we’re doing something right.”

Mike Sohal, Dallam Stores, Warrington

“HELPING customers who are on tighter incomes is something we’ve been doing for a long time, so we’re used to it. We started a pay-it-forward board in January, where customers can help pay for a bottle of milk, sugar or other essentials for other shoppers. We also focus on own label and position Euro Shopper at the front of the shop. It’s doing really well for us as Euro Shopper beans are 59p, nearly £1 cheaper than Heinz.”

Serge Notay, Notay’s Convenience Store, Batley

“WE’RE trying to make sure we keep a range of stock at entry level prices in every single category in the store. These include own-label brands such as Euro Shopper and Lifestyle. All these have core products such as baked beans, chocolate and toilet roll at a more a ordable price. You have to cater for di erent levels of income. Despite the cheaper price, these products are actually decent quality and customers do end up realising this.”

Ken Singh, BB Nevison Superstore, Pontefract

issue to discuss with other retailers? Call 020 7689 3358 or email alex.yau@newtrade.co.uk

COMMERCIAL PROPERTY: An average of 14 o ers were made on convenience stores put on sale in the rst half of this year, according to commercial property expert Christie & Co. The rm’s retail and leisure managing director, Steve Rodell, said: “We expect the second half of 2023 to be as strong, if not stronger, than the rst half.”

MAGAZINES: A premium retail concept combining co ee to go and premium magazines in a tuk-tuk is seeking franchisees. Spanish brand News & Co ee has struck a partnership with magazine distributor Ra & Olly for the opportunity. Tuk-tuks and kiosks are already trading across three sites in London.

For the full story, go to betterretailing.com and search ‘magazines’

GOOD WEEK BAD WEEK

LOYALTY: Retailer rewards app MyStore+ has closed, with stores given less than two weeks to claim funds owed. The app, which paid retailers for taking photos of planogramcompliant xtures, closed this month. However, messages sent to stores at the end of July gave them a deadline of 6 August to ensure payment details were correct for nal payout.

For the full story, go to betterretailing.com and search ‘MyStore’

DAIRY: Retailers have had milk deliveries cancelled following the introduction of Ultra Low Emission Zones. The zones charge drivers for entering areas if their vehicles do not meet emissions standards. Newcastle introduced a £12.50 charge, a ecting retailer Neeraj Bedi, as his dairy supplier said it was no longer cost-e ective to supply his shop. Another store in Birmingham was similarly a ected.

Ken Singh

PayPoint commission increases

electronic and digital services.

THE annual commission paid to retailers by PayPoint has increased by £162 to an average of £1,208 per site.

The 15% increase across 28,478 stores was revealed in the service provider’s annual results for the year ending 31 March 2023. The change was attributed by PayPoint to increased transactions and higher commission rates for

However, a PayPoint spokesperson said the rise was 25% when isolated to the 19,935 independent retailers within the estate, due to commission received from exclusive services such as Counter Cash.

“New services and transaction volumes have driven this positive impact to retailer partner revenues, including our Counter Cash solution, which is enabled in 5,680 sites,

with 1,930 transacting regularly and £42.9m withdrawn in the financial year, and good growth in our consumer engagement proposition, PayPoint Engage, delivering brand campaigns leveraging our PayPoint One platform, advertising screens and i-movo vouchering capability.”

Chief executive Nick Wiles also provided an update on PayPoint’s latest partnership with the Fed. A targeted 1,500

Fed members have the opportunity to generate more than £1,000 a year selling gift cards for the Park Christmas Savings scheme.

Wiles said: “It’s still very early days, but we see it as a major opportunity. We conducted a pilot between March and May, and we learned quite a lot in that early stage. The scheme was launched formally two weeks ago and we’ve got 100 retailers signed up.”

Parfetts own label

PARFETTS is believed to be in talks with other wholesalers to distribute its Go Local own label to more retailers.

Senior industry sources told Retail Express the firm was “flirting” further with the idea, after it gave fellow

wholesaler Filshill distribution of the confectionery, impulse and alcohol range in July. Parfetts joint managing director Guy Swindell did not deny the claims, adding that there would be further expansion of the range.

DODGY tobacco sellers will face fines of up to £10,000 and sanctions on selling tobacco under harsher law enforcement.

New tobacco track-andtrace sanctions implemented on 20 July mean persistent offenders may also have illicit products seized and destroyed.

Businesses found repeat-

edly flouting the law will also receive a temporary or permanent removal of their ability to sell tobacco entirely.

Fed national vice president Mo Razzaq said: “We are pleased to see that tougher action will now be taken.”

MoneyGram cull

POST Office (PO) branches are likely to benefit from Tesco’s decision to axe international money transfer service MoneyGram from some of it stores.

A Tesco spokesperson confirmed to Retail Express the

service was being removed from some branches “due to very low demand from customers”. It means some PO branches near affected areas represent the only option for many MoneyGram users.

ALEX YAU

Building Business Confidence

Three new Blu Bar flavours

PRIYANKA JETHWA

IMPERIAL Tobacco has launched three new �lavours under its Blu Bar range, designed to help retailers tap into the popularity of disposables and drive sales this summer.

Available to stock at the same RRP of £5.99, the new varieties include Tropical Mix, Apple Ice and Mint Ice, taking the total �lavour range up to 13 options.

Collectively, the supplier said these �lavour characteristics, including apple, pineapple, mint and mango, accounted for 10.75% of all vape sales over the past six months, with their share contribution almost doubling versus the same period a year ago.

“The fully compliant range

has been extensively tested and comes from a recognisable brand, making it a must-stock range to cater to the demand for disposables,” said Tom Gully, Imperial Tobacco’s head of consumer marketing UK&I.

He added that disposables are the main driving force behind sales within the vape category at present, with �igures showing the segment has seen a 58% value growth in the past half year.

“To help retailers take advantage of the sales and profits available in this growing category, our three new varieties have been selected to tap into the top taste trends in the market,” said Gully.

To �ind out more about bar range, the supplier said convenience retailers can visit blubarhub.co.uk.

New Wheat Crunchies flavour

KP SNACKS is expanding its price-marked pack (PMP) range with Wheat Crunchies Spicy Tomato, available in a 70g £1.25 PMP and a 45g grab bag at an RRP of £1.

Available now, the new Spicy Tomato �lavour aims to capitalise on demand for spicy-�lavoured snacks, with it being the third-fastest-

Pringles partners with PayPoint

growing �lavour pro�ile. The supplier said it builds on the success of its Crispy Bacon £1.25 PMP, which is growing at 15.4%. It added that £1.25 PMPs represent 18 of the 20 bestselling crisps, snacks and nuts lines in independent and symbol stores, accounting for 61% of sales in independents.

PRINGLES is partnering with PayPoint to give shoppers a chance to win a daily cash prize ranging from £10 to £100 when they buy a 165g, 185g or 200g can.

To be in with a chance of winning, shoppers must buy a Pringles can from a participating convenience store during the promotional period and enter their details online.

If they are one of the winners, an email containing a link to a unique barcode will be sent to them within 72 hours of entering.

This barcode acts as a digital voucher that can be taken to any PayPoint termi-

El ar upgrades 600 device

ELFBAR has launched the next-generation version of its 600 disposable with 600V2.

It is said to provide users with a more “delicate taste and elegant appearance”, and is more environmentally friendly compared with the original device.

The supplier said El�bar 600V2 is powered by latest technology to ensure a more

consistent �lavour. It also uses antibacterial fabrics and polymer food-grade oil-conducting �ibres to boost the material’s resistance to high temperatures, which improves the e-liquid penetration rate. This results in a 45% increase in �lavour reproduction.

The device also offers 30% more puffs with the same amount of e-liquid.

Kate Moss is back in Diet Coke promo

nal to be redeemed instantly for a cash prize. Retailers can also claim a free PoS kit to promote the incentive to shoppers.

‘DIET Coke break by Kate Moss’ is the new TV ad by Coca-Cola European partners forming a part of its ‘Love what you love’ campaign.

The campaign is being supported by limited-edition packs, available in original and caffeine-free Diet Coke varieties, including 500ml,

1.75l, 2l bottles and 330ml can multipacks. The cans will showcase designs based on phrases such as ‘11:30 appointment’, ‘Gardner’ and ‘Runaway’.

An on-pack promotion will offer customers the chance to win fashion-related prizes, including Selfridges e-gift cards.

Spar adds rice pudding and custard tins to own-label range

SPAR is launching own-label varieties of rice pudding and custard.

The two launches are available in 400g tins with RRPs of 95p.

According to the symbol group, rice pudding and custard are the largest ambient dessert subcategory, with a retail sales opportunity of more than

£500,000. This is due to their use in accompanying dishes or as desserts in their own right.

The release was supported in Spar stores with PoS and graphics, internal, external communications and digital comms.

Puerto de Indias to expand into UK

SPANISH gin brand Puerto de Indias is looking to expand further into the UK convenience market.

The company is now targeting off-trade outlets, in particular for its strawberry and blueberry �lavoured gin.

Speaking to Retail Express at the company’s distillery in Seville, international sales manager Raul Blanco explained how the product has become the �irst globally successful Spanish gin, with a presence in more than 40 countries.

Blanco also pointed to

recent research highlighting the key opportunity of strawberry gin in the UK: “It has been named the favourite gin �lavour in the UK. This is especially true amongst the younger demographic, with over half of 18-to-24year-olds rating it as their favourite �lavour,” he said.

“There is also the opportunity of airport sales, with 60% of UK tourists trying local gins when travelling and 74% of Brits looking for gin brands they’ve tried on holiday when they return home.”

Aston Manor Cider launches

Frosty Jack PMP range

ASTON MANOR Cider has launched a range of pricemarked bottles for its Frosty Jack’s extra-strength cider range.

The new formats include a 2.5l bottle with a £5.99 price mark and a 1l bullet bottle pricemarked at £2.99. Retailers will also have access to non-pricemarked options.

The supplier says it introduced the PMPs to reassure

customers they were not being overcharged. “Aston Manor’s ethos is around affordability, so we are excited to be able to offer our brand-new 1l bullet bottle as part of our offering to customers,” said Grace Anthony, marketing manager at Frosty Jack’s.

“Having yet another format to offer customers helps us to ensure Frosty Jack’s remains accessible to shoppers.”

Asahi expands Man City tie-up

ASAHI has continued its partnership with Manchester City, with its non-alcoholic Super Dry 0.0% becoming the football club’s of�icial training kit partner.

The agreement will see the brand feature on the front of all men’s and women’s �irstteam training kits for the

2023-24 season. It is a continuation of the partnership between the company and club ahead of the most recent season.

The ongoing collaboration has seen the creation of bespoke bottles to celebrate the club’s treblewinning season.

Cash giveaway from PepsiCo

CHARLES WHITTING

PEPSICO has launched a giveaway offering 10 independent businesses the chance to win up to £2,000 in its latest giveaway.

In a �irst for the supplier, the giveaway is open to both independent hospitality businesses and retailers.

Entrants must buy three cases of any qualifying product in a single transaction from a participating wholesaler and text ‘SUNSHINE’, their full name, business name and postcode to 85100 by 31 August to be in with a chance of winning.

Qualifying products within the competition include: all 32 x 32.5g Walkers; all 32

x 45g Walkers; all Walkers Max 50g; all Walkers Baked 37.5g; all Doritos 32 x 40g and 24 x 48g; PopWorks 18 x 28g; PopWorks Sweet & Salty 85g; PopWorks Sour Cream & Onion 85g; PopWorks Sweet BBQ 85g; all Walkers single serve and grab; all Snack A Jacks 24 x 23g; and all £1.25 pricemarked packs (PMP) of any product.

“We wanted to support our independent retailer colleagues through one of the busiest times of the year with our latest giveaway, helping them to invest in their outlets so that they can continue serving their communities,” said PepsiCo’s head of wholesale, Mike Chapman.

Pladis relaunches Jacob’s Crinklys

PLADIS is relaunching its Jacob’s Crinklys range with a new non-HFSS recipe.

Jacob’s Crinklys nonHFSS contain 30% less fat than the original and are available now in the brand’s Cheese & Onion and Salt & Vinegar varieties. As part of the relaunch, the range features new packaging with “30% less fat” and “ovenbaked” �lashes.

Both varieties are available in a 6x23g multipack and a 150g sharing bag, as well as an independent-exclusive £1.25 price-marked pack for Salt & Vinegar.

“It was about time we took the range’s popularity one step further by bringing Jacob’s Crinklys to super-

Dole relaunches canned fruit range

market shelves with a new, healthier recipe,” said Asli Akman, marketing director, Pladis UK&I.

Oreo relaunches twist campaign

OREO is re-introducing its ‘What’s your Oreo twist?’ campaign until September.

The campaign will focus on Oreo’s full range of products, including Oreo Twists Vanilla & Caramel along with Oreo Twists Vanilla & Raspberry.

This year’s campaign consists of three short �ilms,

Marlish launches Pink Grapefruit

SUSTAINABLE soft drinks producer Marlish Waters has expanded its range of canned-at-source �lavoured spring waters with the launch of a Sparkling Pink Grapefruit variety.

The new variety is available in a 330ml can, which independent retailers can buy from LWC Drinks in cases of 24. It is free from arti�icial �lavours and preservatives, and each can contains fewer than seven calories.

“By extending our range of �lavoured spring waters to include Pink Grapefruit, we’re hoping to bring a new and exciting �lavour to the table, that doesn’t com-

promise on taste [or] any health goals,” said Joe Evans, cofounder and director at Marlish Waters. Other varieties include Sicilian Lemon, Raspberry, Brazilian Orange and Elder�lower.

Kenco launches TV campaign

THE Dole Sunshine Company is set to relaunch and expand its canned fruit range.

The new range will launch in late August and will consist of three cuts of Tropical Gold Pineapple – slices, chunks and a small chunk cut, which the supplier says is unique to the range.

It will also feature a Tropical Fruit Mix variety, containing pineapple, papaya and guava.

Each line will have an RRP of £1 for a 227g can, which the supplier says offers retailers margins of more than 30%, and customers a �lexible,

long-life product. Andrew Bradshaw, UK sales director at Dole, said: “This smaller range provides the perfect portion size for smaller households.”

Dole will be supporting the relaunch with sampling, social media, in-store activations and geo-targeted advertising.

Havana Club’s birthday bottle

supported by PR, digital and social media advertising on key platforms used by millennial and Gen Z consumers.

“We want to continue the conversation by inviting even more consumers to share their own ways to enjoy an Oreo biscuit,” said Rafael Espesani, senior brand manager at Oreo.

PERNOD Ricard UK has launched a limited-edition Havana Club rum bottle made in collaboration with lifestyle brand Places+Faces to mark the latter’s 10th anniversary.

The bottle is available now to independent retailers from major wholesalers with an RRP of £28.50, ahead of a wider grocery launch this month. Its design takes inspiration from the Cuban sky and sun as well as the Places+Faces logo.

It is given further on-shelf standout with a golden cap and the Havana Club logo in gold foil.

The supplier will support the launch with a digital, outdoor and social media

advertising campaign, as well as PoS for convenience retailers. Additionally, merchandise is available to buy from Places+Faces.

JACOBS Douwe Egberts

(JDE) is investing £6.4m into a campaign for its Kenco coffee range, with the aim of reaching 96% of coffeedrinking adults.

To mark 100 years of the brand, the supplier has launched an advert running across TV, YouTube and Meta social media sites.

With the tagline ‘We rise

by lifting each other’, the ad sees a community transform a local football pitch into an area that can be enjoyed communally.

Roberto De Felice, marketing director UK&I at JDE, said the supplier would further support the brand with a campaign in support of its Gold Indulgence blend, as well as in-store competitions.

Müller unveils TV campaign

MÜLLER Yogurt & Desserts has launched a new TV campaign as part of a major brand refresh.

The new adverts aims to celebrate the unique rituals consumers have when eating and drinking Müller products.

The TV campaign will air for 17 weeks and will be supported by on-demand video,

YouTube and PR. Müller will also redesign its packaging to make it more cohesive, distinctive and easy to �ind. From September, Müller will start to roll out new packaging designs across all of its branded yogurts, desserts and drinks products: Müller Corner, Müllerlight, Müller Rice, Müller Bliss and Müller Frijj.

Putting retail at the heart of the Licence transition

There are exciting times ahead with Allwyn UK having been awarded the next Licence to operate The National Lottery from 1st February 2024. Camelot is supporting Allwyn with this transition to ensure there is no interruption to you selling The National Lottery and serving your customers.

There is a jam-packed plan* for the remainder of the current Licence to continue to maximise your sales and returns to Good Causes. Plans to transform The National Lottery over the next 10 years are on track to make it even Bigger, Better and Safer. This will be underpinned by a strong and thriving retail network, with YOU selling Draw-based Games and Scratchcards from YOUR stores.

You will be hearing from us soon on how you can easily transfer your current Retailer Agreement from Camelot to Allwyn. Your Retail Sales Executive will also visit your store to guide you through the process. Thank you for your continued support as a National Lottery retailer and the role you play in raising £30 million every week for Good Causes across the UK.

code and visit The Retailer

website

COMING UP IN THE 11 AUGUST ISSUE OF RN

OPINION

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

PRODUCTS: Which new lines are attracting major sales?

“MRBEAST Feastables chocolate. He’s one of the biggest YouTubers, and Spar has got exclusivity on his range along with Asda. It’s driven huge footfall and attracted lots of age groups, but mainly the younger demographic.”

Ian Lewis, Spar Minster Lovell, Oxon

Pricewatch:

3,451

“WE’VE got Liquid Death flavoured water, and bubble tea. Both have a good following on social media. We’ve been posting it on our social media pages. It’s about keeping people excited. It keeps us relevant.”

Atul Sodha, Londis Harefield, Uxbridge , west London

MrBeast Feastables has driven huge footfall

TOBACCO: Are trading standards clamping down more on illicit sellers?

“I DON’T see it. Unfortunately, once isn’t going to change the bad behaviour. There are five or six retailers in my area who sell illegal products. One retailer was clamped down on by trading standards, but there’s still some in the area who do it.”

Five or six retailers in my area sell illegal products

STANDARDS: What new measures are helping improve customer service?

“EVERY three months, a supervisor reviews staff on shift. If the staff member fails, I have a conversation with them. It 100% leads to improvements. If an issue happens a second time, it escalates – not to penalise, but to help them.”

Amish Shingadia, Budgens Caterways, Horsham, West Sussex

“WE have a board up as a reminder to staff to uphold service, standards and smile to customers. We focus on providing good customer service, keeping a low wait time and ensuring the store has good availability, product range and displays.”

Amit Puntambekar, Ash’s Shop, Fenstanton, Cambridgeshire

It’s good for us as responsible retailers

Ferhan Ashiq, Levenhall Village Stores, Musselburgh, East Lothian

“IT’S rife around my area. The retailers that are doing it are not even bothered. There’s nothing clever about it. Some retailers do it very brazenly, they do not even hide the fact. It’s not just tobacco, it’s the vapes and laughing gas. I see no action being taken.”

Gaurave Sood, Neelam Post Office, Hillingdon

A supervisor reviews staff on shift

VAPING: Is your wholesaler helping you recycle products?

“ONE Stop helps collect the cardboard and plastic packaging from vapes that we put in the cage. They do the same with batteries. We use a third-party company to collect those. It’s good initiative that will benefit the environment, and it’s good for us as responsible retailers.”

Dee Sedani, One Stop Matlock, Derbyshire

“MY wholesaler has been helpful in providing more information. I know there are regulations coming in that will require us to be more responsible with recycling disposable vapes and electronics. However, I’m not too clear on what is required as there doesn’t seem to be much information out there.”

Anonymous retailer

‘Delivery of £300worth of Country Choice stock didn’t arrive’

LAST month, we didn’t receive more than £300-worth of Country Choice stock on a scheduled delivery through our wholesaler Brakes.

I wasn’t sure how widespread the issue was and whether it impacted retailers across the country, but I was informed it had affected customers in the area. I ended up getting in

contact with Country Choice directly to �ind out what had happened and they were very prompt in responding to me. It turns out the issue wasn’t caused by anything exciting. It was a BT outage, which affected their delivery systems. Initially, I wasn’t given an answer as to when the issue would be resolved and was left hoping it would

COMMUNITY RETAILER

be �ixed within a matter of days. My Country Choice stock was delivered in the end.

Anonymous retailer

A Country Choice spokesperson said: “We can con�irm that there was a technical issue affecting a very small number of Country Choice customer orders on

I’ve learned to adapt to new challenges

THE start to 2023 was di cult, but we have come through it and have learned things along the way.

the evening of 23 July.

“The problem was quickly recti�ied and all affected customers have since been contacted to apologise and make arrangements for the missing products to be redelivered.

“We apologise for any inconvenience that was caused and would like to reassure customers that the incident has now been resolved.”

COMMUNITY RETAILER OF THE WEEK

“LAST month I embarked on a 26-mile hike in the Peak District through the rain. I did this with a friend in support of Macmillan Cancer Support and we raised more than £1,000 for the cause. Coca-Cola Europaci c Partners was also very helpful and donated £500 when I told the supplier I was doing the challenge.

“Macmillan Cancer Support is here to help everyone with cancer live life as fully as they can, providing physical, nancial and emotional support. I’ve done many of these challenges for good causes in the past and I’ve got some more planned for the future.”

“I SELL plants where the proceeds go to several local charities. The idea was started a couple of years ago in the pandemic when a sta member had a couple of surplus plants. Although everybody had a lot of free time, they couldn’t get hold of plants. It’s been really successful. I’ve given £500 to N-Able, a sports organisation in the area. I’ve used £100 for the Millennium Community Garden, in conjunction with the Rotary club. I’ve also used the funds to buy a bleed kit for the community to access. The money from the plants helped fund three kits.”

Being highly adaptable and optimistic, I can take the setbacks in my stride, but my top tip learned from this di cult start of the year has been to focus on setting myself reasonable and achievable goals. Looking back, I just kept going over the past few years. A hospitalised partner gave me the wakeup call I needed to realise that, even if you’re just doing one thing every day or even half a job every day, you have to keep moving forward.

Each issue, one of seven top retailers shares advice to make your store magni cent

In the store, we are back to having monthly team meetings where my team members can contribute and discuss new ideas and initiatives that will help the store moving forward. We hired the village hall to have lots of space and we made full use of the kitchen to make pancakes last month, which were delicious.

Mixing it up, we started with a SWOT analysis where my colleagues came up trumps. It was so good to get their understanding and input. They really did a good job and it created some wonderful discussion and an action list that we are working through together.

I have now stopped annual planning because things are too unpredictable and it’s too much pressure. We still have annual targets, but I only plan for the next 12 weeks. A er all, it seems every third week another juggernaut of information comes along. We need to adapt to new things as quickly as possible, so I am Kissing daily – KISS (Keep it Simple Silly). I had been berating myself for not being better without really realising how far we have come and how much has changed. It’s important sometimes to look back and take stock of just what all those incremental, simple changes and improvements have achieved.

I don’t know what lies ahead, but I know that when I look forward another two years, the site and business will be completely di erent. I keep remembering a teenage leadership session called Storming – Norming – Performing. I am certain with all the changes we have made, we are steering out of the storm phase, on to procedural norming and performing is in sight.

Trudy Davies, Woosnam & Davies News, Llanidloes –@trudydavies1964

‘Charity plant idea is really successful’

Julie Duhra, Jule’s Convenience Store, Telford

OF THE WEEK

‘A 26-mile hike was my charity challenge’

CELEBRATING SIGNATURE’S 60TH

RETAIL EXPRESS partnered with STG UK to o er one retailer a free European city break for two to celebrate the 60th anniversary of Signature, the world’s rst small cigar, and its new limited-edition packs

THE SIGNATURE OPPORTUNITY

TO celebrate the 60th anniversary of its Signature cigar brand, Scandinavian Tobacco Group UK (STG UK) has launched a range of limited-edition tins. The new tins have been designed to give retailers a talking point for their customers, whether or not they are regular cigar smokers, as well as inject novelty into the category.

The ‘60 years of craftsmanship’ message on-pack highlights the brand’s longevity, reinforcing its status as the world’s rst small cigar, as well as its consistent quality.

Retailers should capitalise on the opportunity to stock up, as each line in the range is a leading seller. Signature

Blue is the UK’s bestselling ‘traditional’ cigar1, while Signature Red Filter is the UK’s number-one traditional aromatic cigar1. Additionally, Signature Action is the fastest-growing peppermint click lter cigarillo1

What’s more, cigars are exempt from plain-packaging legislation, so retailers can stock them on the middle shelf of their gantries to maximise visibility and draw customers’ attention.

SUPPLIER VIEW

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“SIXTIETH anniversaries are usually celebrated with diamonds, and there’s no doubt Signature has always been the jewel in our crown, representing 60 years of quality, experience and cra smanship. Since its arrival back in 1963, Signature has become a truly global brand which is now sold in more than 80 countries worldwide. Here in the UK, the brand portfolio is currently worth nearly £50m in annual sales1, with strong products in both the miniature and cigarillo segments. Retailers should take the opportunity to stock up, as limited-edition packs usually prove popular with regular smokers and will be in demand. We’re proud to celebrate such an important anniversary for Signature and want to thank all the convenience retailers who have played such a vital role in its continued success.”

Nataly Scarpetta, marketing manager, STG UK

THe RunnersUP

Joel Gardiner Hopeman Stores, Elgin

Amarjit Singh Michaels, Birmingham

Ian Ross

Bargain Booze Waterloo, Merseyside

Kishor Amrat

Premier Weatherhill Road, Hudders eld

Gillian Adams

The Wee Shop, Ballymena

Sunny Bajaj

Khaneja Superstore, Slough

Diptikumari Patel

Avery Local, Sutton Cold eld

Ram Sundavadra Spar Belmont, Durham

Mohammed Javid Kost Konscious, Edinburgh

Joga Ram KeyStore, Paisley

THE COMPETITION

STG UK decided to extend its anniversary celebrations to independent retailers with a competition o ering one lucky retailer the chance to win a free two-day city break. Additionally, 10 runners-up won a free outer of the new limited-edition tins.

The competition is a chance for retailers both well versed and unfamiliar with stocking cigars to give their category a boost. “We don’t normally stock cigars,” says runnerup Gillian Adams, of The Wee Shop in Broughshane, Ballymena. “But normally I’m the only shop open on a Sunday or after 9pm, and this is when people come in and ask for them, so the base is there to sell them. Hopefully stocking the limited-edition range will lead to more regular sales.”

Joel Gardiner, another runner-up from Hopeman Stores in Elgin, added: “We

sell a lot of cigar brands, including Signature, to a mix of customers. We sell quite a lot of whisky, and a lot of people like to have a dram with a cigar at the weekends.

We haven’t stocked any of the limited-edition packs yet, so it will be good to let the customers know about them and I’ll probably put them on at a promotional price.”

WINNER

“I’VE always sold a lot of Signature cigars during my time in retail. It’s a classic brand for the independent channel that my customers still ask for, and the limited-edition tins, which are a symbol of its enduring popularity, look great. I’m really looking forward to taking some time o away from the shop, which will be the rst time my wife and I have done so since 2014. Work-life balance has always been an important topic for independent retailers, so it’s great to see STG o ering retailers the chance to get away from behind the till and recharge.”

RUNNERS-UP THE

“THE competition came at a good time, as our cigar sales are slowly growing, with more over-50s buying into the category. Signature Original is one of the bestselling cigar brands in my shop, so I’m looking forward to getting some of the limitededition stock in.”

“WE have steady cigar sales thanks to a core group of regular customers. Signature Blue tends to be a bestseller. We haven’t stocked any of the anniversary packs yet, but we’ll promote them to the people who normally buy the brand, highlighting that it’s the 60th anniversary and putting them on a special promotion.”

Jason Byrne, Kingswear Post O ce, Dartmouth, Devon

Ian Ross, Bargain Booze Waterloo, Merseyside

Ram Sundavadra, Spar Belmont, Durham

CATEGORY ADVICE TOBACCO

MAKING TOBACCO WORK IN YOUR STORE

Independent retailers face increasing challenges with selling tobacco, writes CHARLES SMITH, but shoppers still expect it to be part of stores’ convenience o ering

WHY RETAILERS SHOULD STILL STOCK TOBACCO

TOBACCO sales are being seriously squeezed. Smoker numbers are in long-term decline, making up just over one in eight (13.3%) of the population in 2021. On top of that, the growth of disposable vapes, such as Elf Bar and Lost Mary, and next-gen alternatives, such as Iqos heatnot-burn products, is also eating into tobacco sales.

The cost-of-living crisis has

increased the number of consumers turning to next-gen products as they seek to give up or save money.

Dean Holborn has two stores in Redhill, Surrey, and Nut eld, a nearby village.

Redhill’s weekly tobacco sales are £5,000, while Nut eld’s are around £2,500. “Redhill’s customers are more transient and less a luent,” says Holborn,

“with many overspending on tobacco. In the past two years, the total tobacco category has declined by 20% or more, mainly due to single-use vapes. Roll-your-own (RYO) has shown minimal growth, cigarettes have dropped and cigars have declined markedly.” Tobacco presents challenges for independent retailers, but stocking it still brings rewards.

Despite all the pressures, tobacco remains a huge category and is worth £14bn before tax. Consumers come to independent retailers again and again for cigarettes, RYO, pipe tobacco, cigars and smokers’ accessories. Just as importantly, they buy other items while they’re there.

The retailers we spoke to are doing well with vapes, but

don’t see their tobacco sales being stubbed out just yet.

“Tobacco is still a relevant part of convenience,” says Andrew Cruden, from Market Square News in Northampton. People come into his shop to buy tobacco and while they’re there, they pick up other things, too.

Cruden’s overall tobacco sales are around £10,000 a week.

“The total gure hasn’t

changed much in the past two years, but there’s been a drop in cigarettes, with RYO growing 10%-15% and £700 per week going to vapes,” he says.

“Many cigarette smokers buy vapes as well. The government has set a target of 2030 for banning tobacco sales, but I can’t see it happening. It was going to be 2027, then they put it back.”

It’s an offence to sell tobacco to any person under 18 years of age. For tobacco trade use only. Not to be left in the sight of consumers.

Smoking kills

Latest Launches

Embassy Signature Silver Edition

Imperial’s new Embassy Signature Silver Edition is available to buy for a limited time. It has an RRP of £11.60 per pack of 20 and provides reducedsmoke-smell paper.

Sterling Dual Capsule Leaf Wrapped

JTI UK has expanded its cigarillo portfolio, led by the Sterling Dual Capsule Leaf Wrapped range, with the launch of new Sterling Dual Double Capsule Leaf Wrapped, which o ers double the flavour with a combination of peppermint and berry mint capsules.

Sterling Essential Rolling

In December last year, JTI UK reformatted Sterling Essential Rolling, to feature rolling papers, an enhanced blend and a zip pouch. The new features o er adult smokers everything they need in one pouch and is designed to tap into the ultra-value segment, with 80.4% of all sales volumes currently in the value or ultra-value RMC and RYO sector.

CIGARETTES VERSUS RYO

THERE’S nearly a 50/50 market share split between cigarettes and RYO, says Tom Gully, head of consumer marketing UK&I at Imperial Tobacco, at 54% and 46%, respectively.

“We’ve seen shopper demand for value gain momentum as a result of the cost-ofliving crisis, and we’re now seeing the lower-priced tiered products account for the larg-

est proportion of tobacco sales,” he says. “In cigarettes, the sub-economy segment is now 63% of sales, while the economy segment accounts for just over half (56%) of RYO.”

Gully expects value to remain the dominant trend and this can have a positive impact for retailers’ margins. As demand grows for RYO, tobacco accessories such as Rizla Sil-

ver Kingsize Combi and Republic Technologies’ OCB provide a substantial sales opportunity and give good margins for retailers.

However, the concern for Cruden is that he says 90% of RYO now comes with papers and lters included, which is hitting separate sales of accessories, so retailers should consider this when stocking up.

THE PRICE IS RIGHT

RETAILERS recommend talking to suppliers for advice, tracking sales in the category, and stocking products that reflect the value trend. Eighty per cent of Cruden’s shoppers are either buying cheaper products from the same brand, or smaller quantities.

Having the right products on o er, sourcing them at good prices and letting customers know about what you’ve got is key.

“In cigarettes, they’ve moved from Benson & Hedges Gold to Blue, and in RYO from Golden Virginia and Amber Leaf to Riverstone or Players. Some RYO suppliers are switching packs from 30g to 32g, 2g more, and people are going for those,” he says. “Most tobacco companies are o ering retailers support

with lower-priced brands. Embassy reduces its RRPs by £1.10 and gives it back to the retailers.”

Even so, Holborn doesn’t see as much brand switching as there was when tobacco advertising existed.

“Of the cigarette brands, Marlboro are still strong sellers, but B&H Blue outsells them,” he says. “I think the tobacco category will keep going. There’s still a market, and it’s relevant, but I can’t see it doing anything but decline. It all depends on what happens to single-use vapes. It’s likely the government will pull them in, because they’re single-use plastic, and encourage younger people to vape. Vapes mean great profits for retailers, but they’re a big problem in schools.”

THE UK’S No1 FASTEST GROWING SUPER COMBO FROM

Gavin Anderson, sales & marketing director, Republic Technologies (UK)

“AS demand for cigarettes continues to decrease, tobacco accessories are very well placed to o er consumers a quality and value alternative, but they must be e ectively displayed.

“Retailers who create an eye-catching display ogantry, while stocking brands such as Swan, Zig-Zag and OCB, stand to bene t most. Our latest branded display units not only enable retailers to showcase the very latest new lines, creating awareness and driving impulse purchases, they also enable retailers to signpost the wider tobacco category.

“By o ering tobacco accessories brands that consumers know and trust, retailers can make the most of a category that is performing well in the face of a challenging economic headwind. Sales can also be enhanced by the e ective use of eye-catching PoS. Tobacco-accessories consumers are creatures of habit, with strong levels of repeat purchase.”

USING TOBACCO ACCESSORIES

TOBACCO products need to be kept out of sight, and many retailers have retired their gantries entirely to enable them to showcase other products such as wine and spirits, mov-

ing their cigarettes to drawers behind and beneath the counter. But customers still need to know that you’re selling tobacco. Sta members should be able to upsell at the counter, but

EDUCATING CUSTOMERS

WHILE value-led options are the driving trend in tobacco, retailers also need to be able to talk authoritatively to their customers about new products and special deals, and to make recommendations for them based on their preferences. This doesn’t just allow you to drive sales, but it can also improve customer loyalty.

“Sta who are well educated on which products o er the greatest value for money will be in a far superior position to help shoppers nd the best products that suit their needs. This will, in turn, likely see these customers returning to that same store multiple times, thanks to the more personable and informative purchasing experience in store,” says Gully.

Retailers should take the time to talk through their ranges with sta members, while also taking advantage of supplier insights both from reps and online, to ensure

it’s also worth using tobacco accessories, which can be displayed, to trigger that selling opportunity.

“Having a visible display of accessories, either as part of installed gantry furniture, or a small counter display unit where space is restricted, also signals to shoppers that tobacco products are stocked

the moment they walk through the door, so this would also be our recommendation.

“Wherever they’re displayed in store, it’s really important that sta are knowledgeable about the range of accessories and tobacco products stocked so they are well equipped to answer any questions and o er advice to any shoppers

that need it,” says Gully.

On top of this, accessories represent the highest margin opportunity within traditional tobacco, meaning that a good range will not just increase the overall basket spend, but your pro ts as well.

“Recent gures show that lter tips are worth a sizeable £114m of sales, and while reg-

ular papers account for £40m, kingsize papers (£31m) and combi papers (£26m) are also proving to be popular. With this in mind, we strongly recommend that retailers stock a wide range of products across each of these segments to cater for customer needs and maximise the sales opportunities on o er,” says Gully.

they are able to talk to their customers in the most helpful way possible.

Gemma Bateson, sales director at JTI UK, adds: “Having up-to-date knowledge on the latest tobacco trends, such as the growing popularity of ultra-value products, is vital and enables retailers to provide a good level of customer service. Retailers and their sta should use all the platforms available to them, including jtiadvance.co.uk, to learn and talk con dently about new products, such as Sterling Essential Rolling and Sovereign Blue.” As well as helping customers get value options in tobacco, Cruden says well-trained sta can help to drive sales of higher-value products, especially if the customers are out on the town. “Getting shoppers to trade up is all about face-to-face communication. Saying that, you can make more money selling cheaper options,” he says.

New design

SOFT AND EASY TO HANDLE

BALANCED MOISTURE

GREAT TASTE, SATISFYING AROMA

70% OF CONSUMERS WILL BUY AGAIN AFTER EXPERIENCING THE TASTE*

ATTRACTING YOUNG ADULTS

TAMARA BIRCH explores how retailers can become the ultimate destination for young adults and university freshers

THE POWER OF SOCIAL MEDIA

YOUNG adults are a prime audience for convenience store owners to drive sales. Not only are they the next-generation customer, but many have a higher disposable income.

Many young adults and university freshers also buy little and often, rather than doing weekly shops, a trend seen by Richard Inglis, who owns three Welcome stores in Southampton.

“Young adults and freshers

are the classic convenience store market,” he says. “We notice these shoppers will come in up to three times a day to buy for their next meal, especially if they are local. They are buying as they need it.”

Social media plays a vital role in young adults’ buying habits, as noted by Faraz Iqbal, of Premier Linktown Local in Kirkcaldy. “Young adults will notice a product on TikTok or Instagram and they will in-

stantly need that product,” he says. “Once they buy it, you’ll see them posting it on their social media and they’ll tag you, increasing your pro le.”

There’s no denying the power of social media, with the likes of Prime, dget spinners and Little Moons all receiving success after going viral on TikTok. Iqbal says American products continue to sell well among young adults and often go viral on social me-

RETAILER VIEW

dia. The same is true for Inglis, who has recently introduced Liquid Death – a new range of still and sparkling water from the US. “It looks like an energy drink, so, if anything, shoppers are interested in it and it’s a great conversation piece,” he says.

Talk to your young adult customers about trending products on TikTok. Then, download it and research to nd the next-best thing.

FOOD TO GO AND SNACKING IS VITAL

WITH many young adults and freshers buying on the go, whether it’s en route to lectures, work or meeting friends, there’s a strong sales opportunity for retailers. The costof-living crisis means young adults at university will be living on more of a budget than ever before. So, meal deals will

be a way to drive sales.

“Young adults are traditionally a value-conscious audience, so will look for ways to manage their budget,” says Abigail Nelson-Eho , brand manager at Urban Eat. “Meal deals will therefore be important to young adults, with more than half on the lookout for one

on their lunch break.

“Not only that, 71% like the assurance of knowing the total cost of the meal when they get to the till, which is what a signposted deal o ers.”

In the lead up to the new university term, run social media posts across Instagram and video content for TikTok to alert

Faraz Iqbal, Premier Linktown Local, Kirkcaldy

“BUILD a relationship with young adults, but remember this takes time. Some of my young adult customers have been coming to my store for years, so we’ve almost moved past the retailer-customer relationship to become friends. With young adults, it’s all about what’s buzzing. Everything on social media trickles through and they will recognise your shop if it ends up on someone’s TikTok or Instagram story.”

young adults of your promotions. If you’re unsure on which videos to make, talk to other retailers about what they’re focusing on to help get started.

Snacking is also a key area, worth £24m in convenience stores, with pot snacks remaining the main sub-category, making up 62% market

share, according to Lucy Richardson, UK category director at Unilever UK&I.

“This category is key for students wanting quick, easy and a ordable lunches,” she explains. “Gone are the days where options simply included a sandwich and a packet of crisps. Shopper demands have

evolved, and retailers now need to cater with variety, flavour, healthy and free-from products and, where possible, include hot options.”

Include ‘comfort foods’ in any student-speci c displays. Chocolate, bakery and sugar confectionery are strong products after a socialising night.

CATEGORY ADVICE YOUNG ADULTS & FRESHERS

THE LOW AND NO TREND

FORTY-THREE per cent of UK drinkers say they are looking to moderate, according to Steve Young, sales director at Asahi UK. “It is typically younger adults who are reducing the amount they drink or are not drinking at all,” Young says.

Mike Lakhani, of St Mary’s Supermarket in Southampton, has noticed this shift, with more students choosing lower-ABV products. “We’ve had a massive increase on non-alcoholic products,” he says. “We have added to our o ering in this area, including ciders. Ciders, such as Kopparberg and Peroni, are performing well.”

However, not all retailers have noticed this trend.

Iqbal says there was a trend towards low- and no-alcohol a few years ago, but this has since passed. “Young adults have decreased their alcohol

intake, but they are shifting towards lower-ABV products, such as ready-to-drink alcohol,” he says.

With non-alcoholic products, taste and flavour are vital components to attract a young adult audience. Young says taste remains the most important purchase driver above price, with younger adults prioritising brands that o er quality.

With freshers’ week quickly approaching, Young recommends retailers start with a core range of just four products. “These products would include a non-alcoholic craft brand, a stout, a can option and Peroni Nastro Azzurro 0.0% 4x330ml,” Young adds. Lakhani adds freshers’ week is the prime time to stock up on both alcoholic and alcohol-free lines, as these shoppers get their rst taste of freedom.

TOP TIPS

Abigail Nelson-Eho , brand manager at Urban Eat, o ers three top tips for young adults and freshers

Make sure to o er classic favourites, as well as more standout options, to cater for a range of tastes.

Capitalise on di erent eating occasions. Food to go is no longer just centred on the lunchtime trade. Bring in breakfast and snacking options, too. Place bestselling products at eye level in the chiller to encourage purchase and create meal deals where possible to increase basket spend.

“THE back-to-university period is a time of great upheaval for students. They will stay loyal to stores that make their shopping experience simple and provide relevant o ers. Retailers should consider promoting deals targeted at students on TikTok and Instagram. For example, they could o er simple meal solutions for a reduced price or highlight they stock brands that are popular with students.”

“YOUNG people are more aware of the foods they consume, but this doesn’t necessarily mean they are any healthier. Young people, for example, are drinking less, but they’ll compensate this for something else. We’ve noticed young adults are more likely to treat themselves than other customers. It’s about nding a balance for them.”

ATTRACTING YOUNG ADULTS IN STORE

FOR many young adults and freshers attending university from September, it will be their rst time away from home. Many will be learning to do things for the rst time and retailers have the potential to create long-term customers by o ering a full meal solution.

Inglis says his biggest seller among students is pizza. “Students in our area love pizza, so stock up on both frozen

and chilled. It’s easy, cheap and lling,” he says. “They will occasionally buy fresh ingredients, but it’s all about convenience.”

It’s vital retailers o er a full meal solution, as well as other products they might need to buy last-minute. This expands past food, but includes personal care items, next-gen products and alcohol. “A big category with us for young adults is

vapes, so we make sure to have a range of di erent flavours of the main brands,” Inglis adds.

O ering convenience as seamlessly as possible is vital to attracting young adults in store, especially as many are so used to receiving information and products at the touch of a button. Iqbal stresses that a relationship could be impacted if a problem arises that young adults haven’t come

across before, like having to pay with cash.

“If you have a minimum charge of, say, £5, it can deter young adults from buying from you,” he says. “Young adults want to buy what they need, tap with their phone and leave. If you aren’t able to o er this, it could impact future business from them. It’s all about the connection you have with them.”

Steve Young, sales director, Asahi UK

SUPPLIER VIEW

Danny Wilson, owner of 17 One Stop stores in Yorkshire

RETAILER VIEW

STREAMLINE YOUR SERVICE

CHARLES WHITTING nds out where retailers can make e ciencies in their home delivery service to make it more pro table

FINDING THE PROFITS POST-PANDEMIC

THE Covid-19 pandemic saw the home delivery trend explode from a slowly growing idea into an essential innovation and opportunity for convenience retailers to reach customers who wouldn’t or couldn’t visit their stores.

Retailers found they could sell their products to people who would never – or had never – set foot in their shops, broadening their customer base and overall sales without

having to expand the footprint of their stores.

However, now people are back on the move, the questions for retailers is whether the demand that skyrocketed during the pandemic is still there, and whether o ering home delivery is still a viable and pro table option during a cost-of-living crisis.

“We can already see with the cost-of-living crisis that people are watching what

they’re spending, and the use of delivery services is decreasing,” says Umar Majid, from Baba’s Kitchen in Glasgow.

“However, delivery services will still work for stores that have already got them and are running them properly.

“Anyone trying to introduce the service now from scratch could nd it very di cult.”

Ultimately, retailers need to balance the twin consumer demands around home deliv-

ery: convenience and value. That means they have to deliver products faster and more seamlessly while still keeping prices low.

“Retailers have reached a crossroads,” says Dael Links, head of marketing for Snappy Shopper.

“They need to diversify their delivery options and invest in the right technology to meet the ongoing needs of their consumers.”

WHERE YOU CAN FIND EFFICIENCIES

IF you’re going to keep prices online the same as they are on the shop floor – as retailers with Snappy Shopper tend to do – you’ll need to nd ways to cut down on your expenditure when delivering.

For some retailers, this means cutting back the number of drivers they have, possibly even to one.

That puts enormous strain on the remaining driver, however, so better e ciency can be found by increasing orders to the extent that it more than pays for full-time drivers.

“Until you start doing real

volume on Snappy Shopper, you have to take the hit on the sta you need to send out of the store to go and deliver the products. Other stores have a full-time delivery driver, which is the most cost-e ective, but we only do 25 deliveries over 12 hours, so we’re in a position where it’s not worth getting a full-time driver, but it’s still costing us money because a supervisor has to take time away from the shop,” says Majid.

To make deliveries even more e cient, retailers can invest in electric cars, which

MAKING MONEY

FOR delivery to be successful it has to attract a lot of customers, and there are four ways Snappy Shopper recommends to drive this tra c: pricing, consistency, marketing and range.

“We’re seeing that customers tend to spend more online, with a 160% increase in customer spend online compared with in store,” says Links.

“To o er your customers adequate choice, we recommend having 2,500 of your

top-selling lines in your online product range. There is also an option to add additional categories to promote seasonal items at times like Christmas and Halloween, meaning you can capitalise on trends throughout the year.”

Another way to increase pro ts from delivery is to charge people more for it. Retailers using Deliveroo or Uber Eats will often place a surcharge on their delivered options, compared with in-store

will reduce their fuel bills, and also examine their delivery routes more closely.

A haphazard approach can see drivers making the same trips multiple times, but with a more organised system in place, they can reduce petrol costs, driver hours and also customer waiting times, which can drive future orders.

“Consistency and customer service create brand loyalty and lead to repeat orders,” says Links. “Customers want to receive their orders within the stipulated 30-60 minutes, with minimal substitutions.”

RETAILER VIEW

“I MADE an on-demand delivery platform at the start of the pandemic, using my store as a dark store at night a er it had closed, but it was a lot of time and e ort. I would close the store at 7pm, go home and eat my dinner, and then I would be out on the road delivering groceries, as I was the only driver. It was so draining, I had to step it back.

purchases, to cover the extra cost of using those services. The downside to this can be that fewer customers may be willing to use your store.

“With on-demand, people are willing to spend more, so we have products that are £14.20 in store that will be £25 when delivered,” says Arjun Patel, from Premier Cavendish Square in Swindon, Wiltshire. “You get fewer customers that way, but you make more pro t.”

Ultimately, if you are to make pro ts from your home delivery service, you need to invest in promoting it so it becomes something that customers want to use regularly.

“From a marketing perspective, it’s all about strong and powerful branding inside and outside the store,” says Links.

“Our marketing team will promote your stores across our social media platforms to drive sales on the app and generate awareness.”

“We’ve got a platform now, which is on the back burner for now, but will enable other stores to join. We’re nalising an algorithm and we’ve got AI involved as well. It will be a separate business to the store.

“My best advice is to focus on revenue and pro t. To drive more revenue, you can charge more money per order, but do fewer deliveries. With higher prices, you can do two or three deliveries yourself and make £50£60 each, or you try to make 20 deliveries that aren’t worth as much and have the stress of getting drivers.”

INSIGHT OPINION

Max Schwerdtfeger, insight editor, Newtrade Media

“ACCORDING to a Newtrade Insight report published in 2022, ‘Home Delivery: What is Driving Growth?’, 30% of retailers said their revenues from home delivery had fallen since July 2021, while 31% of retailers said revenue from home delivery had increased and 43% reported that it had stayed the same.

“It perhaps shouldn’t be surprising that revenue has been, and continues to be, stubborn. Almost half (47.3%) of retailers said they hadn’t invested in their home delivery service at all since July 2021.

“The rest have invested in a mixture of areas, the most popular being in advertising their home delivery services, at 17.3%. This is also where they plan to invest in the future, with 34% saying advertising is going to be a priority.

“It is also the area in which they want help from suppliers, delivery partners and fascia groups, with 43.3% saying so, and this creates reasons to be optimistic for home delivery. Almost half (49.2%) of retailers who said they want help with marketing their services also plan to invest in advertising, with 20% of that number claiming to have already done so.

“Retailers who identify marketing as a challenge are also more optimistic for home delivery’s potential, with 56% saying they expect revenues from home delivery to increase in the next 12 months. This is higher than the number of retailers who believe they will increase – 44% – and it indicates they believe the potential for home delivery is there, they just lack the means to scale it up and promote it.”

Arjun Patel, Premier Cavendish Square, Swindon, Wiltshire

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DELISTING FAILING PRODUCTS

The RETAIL EXPRESS team nds out how retailers identify products that aren’t justifying their place on their shelves and how they phase them out

Anish

Panchmatia, One Stop Wylde Green, Sutton Cold eld, West Midlands

“I CONSIDER myself a landlord and the product is my tenant. The products that make me the most money deserve the most shelf space and those that don’t make me money don’t deserve the space. I don’t look at margin, I look at volume sales because I can increase volume. We use data and always request more information if we can. It’s about taking that ruthless approach.

“We had three metres of pet food and it was selling badly, so we decreased the space to two metres. We’ve seen an increase in sales because there’s less choice now. The promos are the same, but it looks like we have more offers because there are fewer products. Petfood is paying double the ‘rent’ at two metres than it was at three metres.

“Wines are down, so we had a range review and there were 20 products that we’re selling one of each week, so we got rid of them.”

2

“IF it’s a speci�ic product then we use our till data. We try to look at this every two weeks and look at our worst-performing lines. But sometimes it can just be a case of when you’re walking around the shop, you notice that a line is looking a bit tired.

“You might see, for example, one of the 2l bottles of carbonate hasn’t been reordered for a while. That means it’s not doing what it needs to be doing, so we get rid of it. There have been moments, frustratingly, where a customer has asked for a line again after we take it out.

“With our core lines, each person in the store is in charge of a speci�ic section – for me, it’s soft drinks and crisps. By the time my shift is over, everything in those categories has to be fully forward and labelled, and the stock order has to be put in. By knowing our own area inside out, we can get on things straight away.”

3

“WE’RE constantly doing daily checks. One of the main things to look at is the date. That’s a good factor for whether a product is selling quickly.

“Then, on a weekly basis, we go through a department report for high and low sellers. You have to keep an eye on these things because otherwise you’re going to have shelves stocked full of dust pickers. How regularly they’re selling depends on the category. With alcohol, once we’re only selling a bottle or two a week, we’ll try to replace it with something else, but in grocery, it can tick along at a can a week.

“Once we’re down to the last few, we put them out of position near the counter, on the counter or in a reduced-to-clear section, as well as a reduced section on our delivery platform. We’ve often used them in the 1p deals for home delivery with Snappy Shopper and reduce them in store, too.”

In the next issue, the Retail Express team nds out what retailers do to keep customers coming back. If you have any problems you’d like us to explore, please email charles.whitting@newtrade.co.uk

Reuben Singh Mander, The Three Singh’s, Selby, West Yorkshire

Anand Cheema, Costcutter Fresh, Falkirk, Central Lowlands

I always make sure my shelves are nicely stocked. How do retailers identify and take out failing lines? – Dilan Patel, Hallcroft News, Retford, Nottinghamshire