Retail Express: 23 April, 2019 by BetterRetailing

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Name: Amit Puntambekar Ash’s Shop (Nisa Local) Shop: Cambridgeshire Location: Fenstanton, 1,400sq ft Size: part-time Three full-time, six Staff:

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Amit has the basics in place, and with a few small tweaks he will see his average basket spend rise. Loren McErlean

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and Commercial Planning Strategy Manager Suntory Lucozade Ribena

of a 12-visit In the second part and category programme, the IAARIBENA partner LUCOZADE PUNTAMBEKAR SUNTORY help AMIT g to customers improve his marketin well can drive to their customers and loyalty RETAILERS who market them, and use promotions people to shop with spend. schemes to increase runs Ash’s Shop (Nisa Local) in challenges Amit Puntambekar . One of his biggest Fenstanton, Cambridgeshireabout deals and promotions excited store. Before is to get customers so familiar with his when they are already these criteria and finding out how benchmarking against how Lucozade Ribena Suntory read well you are doing, an action plan to fit his store’s needs. helped Amit develop

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

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1 Walk your shop think be used to help you This is designed like a customer

food-to-go offer near Amit currently has his challenge is how His the back of the store. communicate a meal he can introduce and deal offer to shoppers. a great store and space Loren says: “Amit has meal deals more he can use to promote address this might be to effectively. One way show stickers on items to by using coloured This will make it shoppers what is included. to shop.” easier for consumers items

shop 2 Benchmark your ticking all you see Use the checklist evidence of

below,

Making local people

WHY I TAKE PART on how effective an outside perspective key

I wanted to get working with a I’m hoping that by can learn to my marketing was. Ribena Suntory, we store. supplier like Lucozade our sales across the better and increase communicate what use promotional tools because if you cannot profits. Marketing is so important,will struggle to gain sales and drive you you’re doing in store,

Showing regular customers in store what else he offers

meal deal Communicating his offer to target shoppers

on meal deal ACTION Place stickers are included. to show what products

YOUR ACTION PLAN

but wants to make Amit has a digital screen, to increase his better use of it. He wants spend when they basket morning shoppers’ come in to buy newspapers. screens are an Loren says: “In-store the attention effective way to grab to increase way of shoppers. One by using moving engagement can be and tailoring images on his screen day.” of adverts to the time promotions ACTION Tailor digital-screen and use moving images. to the time of day

shop

your offer to your Communicating target shoppers schemes to Promotions and loyalty encourage spending and measuring it Planning for success

improve 3 Pick one thing to it this week and let

Marketing new products to customers

Write it down, implement get on using #IAA19 us know how you

try new products Amit ensures his staff so they can recommend when they come in challenge is how he them to shoppers. His a sales uplift. can convert this into ns are a great Loren says: “Recommendatio and increase sales. way to engage customers to local staff members Shoppers will listen reinforce this by placing they trust. Amit can cards around the staff recommendation Waterstones.” store, as they do in recommendation ACTION Create staff your store. and place them around

want to use your

in-store Attracting passers-by

cards

RS ATTRACT NEW CUSTOME

ing.com/IAA/benchmark Visit betterRetail how strategy and see to up your marketing 11 other categories. you can improve in

Next time: In-store

Display

FINDING EASY MONEY The 15-minute change that puts your store on the map and increases footfall P3

SMALLER-FORMAT GROCERY

VANS EXPRESS

FEWER SHELVES, DOUBLE SALES

Lidl reveals which areas of the country it will target with its smaller stores

Find out why a Mercedes-Benz Sprinter could be right for your business

How East Lothian retailer Ferhan Ashiq revamped his store to increase his margin

P28

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our say

Chris Dillon, editor – insight

Why we produce the best journalism for independents

The five biggest stories this fortnight 01

Lidl eyes smaller format for new store openings

ALEX YAU COSTCUTTER retailers make £4,000 less than Nisa retailers on every £200,000 of Co-op own label they sell. Reported last week in Retail Express’s sister title, RN, it revealed how higher wholesale prices and lower recommended retail prices than Nisa stores were squeezing margins for Costcutter retailers. We found this out by logging the product price list order forms on 400 lines and analysing the data. This insight, which you can use to compare your own pricing against for own-label goods, is not something you could have found elsewhere. We broke this story and analysis because of our commitment to the retailers that read our titles every week and therefore support THIS INSIGHT exclusive and insightful journalism. It was that thought that spurred IS NOT the team on as we worked through SOMETHING the data we had, then going back through it with a keen eye to weed YOU COULD out any mistakes. HAVE FOUND I’m writing this because I’m ELSEWHERE incredibly proud to work alongside a team that is dedicated to producing the best journalism in the independent convenience retail sector. If you’d like to see a full analysis of the pricing data, go to betterRetailing.com/behindco-ops-own-label – you’ll also find numerous other exclusive resources to help make your business stronger. FOR MORE OPINION, GO TO PAGE 16 @retailexpress betterRetailing.com facebook.com/betterretailing Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379

Editor – news Jack Courtez @JackCourtez 020 7689 3371

News editor Megan Humphrey @MeganHumphrey_ 020 7689 3357

Features editor Daryl Worthington @DarylNewtrade 020 7689 3390

Features writer Priyanka Jethwa @Priyanka_NT 020 7689 3355

Reporter Alex Yau @AlexYau_NT 020 7689 3358

Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361

Head of design Anne-Claire Pickard 020 7689 3391

Production editor Ryan Cooper 020 7689 3354

Editor in chief Louise Banham 020 7689 3353

Head of sales Matthew Oliver 020 7689 3367

Sub editor Jim Findlay 020 7689 3373

Account director George McCracken 020 7689 3364

Sub editor Tom Allaway 020 7689 3395

Account director Charlotte Jesson 020 7689 3389

Designer Jody Cooke 020 7689 3380

Account manager Jon Melson 020 7689 3372

Retail Express is printed and distributed by News UK at Broxbourne and delivered to news retailers free by their newspaper wholesaler. Published by: Newtrade Publishing Limited, 11 Angel Gate, City Road, London, EC1V 2SD; Phone: 020 7689 0600

Discount rival Aldi has also begun expanding into smaller-sized stores. Last month,

Lower Co-op margins

COSTCUTTER retailers are being advised to sell Co-op ownlabel lines at lower recommended retail prices (RRP) than Nisa, while paying higher wholesale prices (WSP). Analysis of both group’s RRPs and WSPs on 398 key own-label lines showed that 146 lines were cheaper at Costcutter, compared to 103

at Nisa. A basket of seven popular items showed Costcutter to be nearly £1 cheaper. Nisa retailer Amrit Singh said: “It means Nisa retailers can afford to undercut Costcutter in certain categories.” Read more at betterRetailing.com/ co-ops-own-label

it unveiled its ‘Local’ trial store in south London – a 6,000sq ft shop which doesn’t

“sell bulkier items that shoppers would have dif�iculty transporting without a car”.

Illicit sales crackdown

TOBACCO manufacturers are using trademark dispute tools to crack down on rising illicit sales on Facebook and other online sites. The social media giant had previously refused to remove nearly 40% of illicit tobacco sellers highlighted by Retail Express’s sister-publication, RN.

Phil Charlton, JTI anti-illicit trade operations manager, revealed that JTI works with a third party to detect and report sales of counterfeit JTI products on social media platforms. Read more at betterRetailing.com/ tobacco-illicitcrack-down

Sales support executive Michela Marino 020 7689 3382 Head of marketing Jessica SalisburyFielder 020 7689 3352 Managing director Parin Gohil 020 7689 3375

Management accountant Abigayle Sylvane Production coordinator Business Ashley Reid development executive 020 7689 3383 020 7689 3368 Kurran Jagpal 020 7689 3363 Subscribe online at newtrade.co.uk/our-products/ print/retail-express. 1 year subscription: UK £65; overseas (EU) £75; overseas (non-EU) £85

LIDL has put a focus on smaller-format grocery after it revealed that more than a quarter of its targeted store openings will be shops of at least 7,000sq ft, rather than its 10,000sq ft current average. The German discounter, which has 700 shops, has identi�ied 911 potential sites it wants to expand in across the UK. More than 250 of these are based in London, with requirements ranging between 7,000sq ft and 26,500sq ft. The average size of an Aldi store is 10,000sq ft. Retail expert David Gilroy said: “This is going to trigger closures for independents if Lidl gets going. Customers prefer value now and convenience stores have often been viewed as more expensive.” The targeted openings in London are part of an aggressive expansion strategy for Lidl in the south of England, as it has identi�ied 401 potential sites in the area. It also wants to open 258 stores in the Midlands and 248 shops in the north and Scotland.

48,789 Audit Bureau of Circulations July 1 2017 to June 30 2018 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 Publishing 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.

Short fills regulation

VAPOURIZ has called on the government to enforce higher standards on manufacturers of ‘short �ill’ e-liquids. Ben Mison, head of sales at the vaping brand, said: “Short �ills aren’t regulated, so you don’t know what ingredients are being added.”

Short �ills do not contain nicotine, but are usually sold with a high-strength nicotine ‘shot’ to mix in. This means they evade quality and size restrictions. Mason added: “We support regulation because, at the moment, anyone can make anything and sell it.”

C-store porn vouchers

STORE owners will be made responsible for verifying the age of customers who wish to view adult material online. The Department for Culture Media & Sport (DCMS) confirmed that its twicepostponed age-verification

scheme will go live on 15 July this year. PayPoint-partnered stores will be able to issue voucher codes over the counter, which allow users future access to adult sites. The codes expire after 24 hours if not activated on the of�icial app.

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chris.dillon@newtrade.co.uk 020 7689 3379

Google Maps is a ‘no brainer’ for all retailers MEGAN HUMPHREY INDEPENDENT retailers are missing out on the free opportunity to attract new customers because they are not listing their stores on Google Maps. Out of 50 randomly selected stores, Retail Express found that only a third of unaf�iliated stores had uploaded photos and listed their opening hours onto Google Maps, compared to double the percentage of symbol stores. With regards to opening hours alone, 96% of sym-

bol stores had published theirs, compared to 48% of unaf�iliated. Warwickshire retailer Sunder Sandher used Google Maps to advertise his One Stop in Leamington Spa for two years. “The good thing is that every month you get an email prompt to update your pro�ile, whether it be to advertise deals or new products,” he said. “The app also provides you with data insight – this month alone, I had more than 12,000 user interactions on my page.”

Sandher stressed that using Google Maps is a “no brainer” for all retailers. “It takes no more than 15 minutes to input your information,” he said. “It’s a must for anyone wanting to increase their exposure through free advertising.” Speaking at the ACS Summit in Birmingham this month, Google’s grocery retail head, Harry Walker, explained how changing shopper habits are paving the way for technology. “You need to be where consumers are in the mar-

ket for your products and services, and one of the �irst places they look is on Google,” he said.

How do the prices and margins compare for Nisa and Costcutter?

The percentage of lines Nisa retailers have the cheapest wholesale price on

express yourself “I don’t think independent retailers have anything to worry about. For a store of at least 7,000sq ft, Lidl will have to look at high streets or in cities. They will be more of a threat to the multiples or the big four supermarkets. It’ll be very difficult to find a space like that in a community area or neighbourhood where a lot of convenience stores are based. Most convenience stores in these areas are 2,860sq ft to 3,000sq ft and don’t meet Lidl’s requirements.” Ketul Desai, Nisa The General Store, north London

Read the full story online at betterRetailing.com/ co-op-own-label

36.6%

5.59%

39.4%

96p

of lines have a cheaper retail sales price at Costcutter

How much cheaper Costcutter is on a basket of seven popular lines

the column where you can make your voice heard

GOOD WEEK BOOKER: Savings related to Tesco’s acquisition of Booker are ahead of schedule and delivering benefits for Booker-partnered independent retailers, according to Tesco CEO Dave Lewis. Newly released end-of-year results published by the supermarket show that Booker’s sales reached £5.8bn, with a 6% increase in profits. NISA: Nisa unveiled the next step in its ‘Store of the Future’ refit format at its annual retailer conference in Stoneleigh earlier this month. The modular format focuses on self-service tills, bar-inspired alcohol areas and self-serve food, and promises double-digit sales increases. Previously labelled Store of the Future 2 Evolution, this latest version is called Evolution. Read more at betterRetailing.com/nisaformat-promises-double-digits

CO-OP OWN LABEL

Additional gross margin across 398 lines for Nisa retailers

The use of the search phrase ‘open now’ has increased by 145% year on year.

BAD WEEK CASHZONE: Retailers have expressed anger at being stuck in Cashzone ATM contracts, despite the provider hiking transaction fees to 95p, leading to a decline in cash machine revenue. The contracts allow the company to adjust charges on the ATMs without permitting stores to exit the agreements. GENDER PAY: The gender pay gap has widened in 50% of the top 22 wholesale, convenience retail and symbol groups in the UK. Less than a third made progress in reducing the median hourly wage difference between male and female staff. Costcutter CEO Darcy WillsonRymer claimed the collapse of Palmer & Harvey had meant it was not possible to provide the intended focus on the gap. Read more at betterRetailing.com/ gender-pay-gap-widens

Will Lidl’s plans of opening stores of at least 7,000sq ft in London impact independent retailers?

“Lidl has never really had that convenience format before, but now they’re downsizing. It’s challenging the supermarket convenience stores and independent retailers can only be next. Not only is Lidl known for value, but its products are really good quality. In some cases, they’re better than what you can get from the major multiples. Customers can see this and bringing that to a smaller format can only put more pressure on.” Purvesh Patel, The Wine Mill, east London

“It is going to be a danger to independent retailers. An Asda opened near us a few years ago and we lost a lot of trade. The smaller convenience stores from the supermarkets are popular and Lidl doing something similar with added value will be more of a threat. I had to get rid of two members of staff to make up for the loss of sales and footfall when we had competition from Asda. Not only do we have good staff, but there’s more work required for us now.” Ravi Raveendran, Colombo Food & Wine, south London

Do you have an issue to discuss with other retailers? Call 020 7689 3379 or email chris.dillon@newtrade.co.uk

Ketul Desai

NEWS

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Gov’t considers funding shop security MEGAN HUMPHREY HOME Of�ice minister Victoria Atkins is to consider allowing part of the £675m Future High Streets government fund to be given to shopkeepers to invest in security measures. The announcement was made during the prevention of retail crime debate held at the Houses of Parliament this month in London, which was

attended by 15 other MPs. The minister also revealed that results of the recently opened consultation on retail crime will be published in the autumn, clearing the way for new measures to tackle the issue. Atkins said: “I ask all members to spread the word through their network and encourage local shopkeepers to contribute to the consultation, because the richer tapestry of

evidence that we have, the better we will be able to respond.” During the debate, MP David Hanson outlined six requests for Atkins’ consideration as part of the consultation. This includes a clearer de�inition of business crime; an imposed aggravated offence for age-related sales; engagement with police and crime commissioners (PCCs); community-based penalties; a review of the £200 thresh-

old for shoplifting; and an exploration of good practice. Chair of the All-Party Parliamentary Group (APPG) on retail crime MP Steve McCabe added a clearer de�inition would help “identify the real scale of the problem”. McCabe also stressed the need for PCCs to begin setting local policing priorities for their regions. Atkins agreed: “I encourage all members to raise this issue with their PCCs.”

MUP boosts sales, footfall and margin IT’S ANYTHING BUT AVERAGE

ASSESS. COMPARE. IMPROVE.

#IAA19

Taking part in the Independent Achievers Academy enables retailers to focus on key disciplines that help them evolve. In this series, we talk to various UK retailers about the value they get from benchmarking their shops. Here’s a behind-the-scenes discussion: Meet Simon. Located in Lancashire, he owns and operates Premier Lower Darwen, a 1,500sq ft independent store.

RETAILERS have reported changing demands and better sales, margins and footfall since the introduction of minimum unit pricing (MUP) in Scotland in May 2018. East Lothian shop owner Ferhan Ashiq told BBC Radio Scotland this month: “I was apprehensive at �irst, but it has had a positive impact on sales.

“People aren’t stocking up on deals at supermarkets anymore. They know it’s the same price in my shop, so they come and buy little but often.” New Nielsen data revealed that Scottish alcohol sales grew in volume and value since the 50p-per-alcohol-unit requirement was introduced.

BRITVIC BACKS BOTTLE RETURNS

Independent Achievers Academy: Why did you benchmark your shop with the IAA? Simon Dixon: My retail development manager at Premier suggested it. I took my time when benchmarking and it was extremely beneficial. IAA: What have you changed in your business as a result of benchmarking? SD: I’ve upped my local products. I stock a local brewery and I now bring in local eggs, milk and bakery products. The emphasis on keeping it local resonates with me and my customer base. IAA: What would you say about the IAA to other retailers? SD: It gave me time to think, which you don’t always have when you are in store. Benchmarking with the IAA enables you to look at your store with fresh eyes.

SOFT drinks manufacturer Britvic has backed a UK-wide deposit return scheme (DRS) for drinks containers in the UK. The supplier’s new group sustainability director, Trystan Farnworth, said the company is “fully supportive of a well-designed

DRS” at the launch of Britvic’s 2018 soft drinks report. However, he stressed the need for it to be designed to meet the needs of retailers and suppliers. “If we don’t get the details right as an industry it will fall down,” he claimed.

Device slashes chiller energy by up to 40% Need a fresh perspective? Benchmark your shop now and reap the rewards. betterRetailing.com/iaa/benchmark

A NEW energy-saving device that can be �itted into store chillers is “the new LED lighting”, according to Energy Renewals director Ken Warner. The Smartcool device plugs in and controls the motor without voiding the warranties and reduces power consumption by up to 40%. Warner told Retail Express: “It’s the new LED lighting – a small investment that offers signi�icant utility bill savings.” He added that the

average return on investment period is two years, with the company paying the retailers any shortfall against their forecasted savings. For more info, call us on 020 7689 3357

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Premium cider grows in c-stores PRIYANKA JETHWA RETAILERS looking to increase cider sales should focus on premium lines, according to Westons Cider’s annual report. The company said value sales of craft and premium cider grew by 15.1% and 2.4%, respectively, in the past year. The value of amber cider declined by 1.7%, while white cider also decreased by 6.4% in the same period, as more shoppers traded up. Matthew Langley, insight and innovation manager at Westons, said: “Value continues to grow ahead of volume as the market turns premium – price per litre increased in

the past year by 6p to £2.25.” Within this, the top 10 cider products for retailers are Strongbow, Strongbow Dark Fruit, Kopparberg Strawberry & Lime, Kopparberg Mixed Fruit, Magners, Thatchers Gold, Henry Westons, Lambrini, Frosty Jack’s and Scrumpy Jack. While apple remains a �irm favourite among shoppers, commanding a 57% value share, fruit-�lavoured ciders account for more than a third of sales. The report follows the unveiling of Nisa’s new store concept, where the symbol group advised retailers to favour pre-mix over cider, as trading in mainstream cider becomes tougher.

Westons told RN that Nisa was “making a mistake” with its advice and that

premium cider was a major opportunity for independent retailers.

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Heineken maximises its spend for Foster’s HEINEKEN is premiering its biggest campaign in years for Foster’s, estimated to reach more than 20 million people, and 88% of all 18-56-year-olds. The £6m campaign, which will roll out across video-on-demand, social media and radio, will feature the brand’s signature characters, Brad and Dan.

Nic Casby, brand director at Heineken, said mainstream lager is growing at 10.6% in the off-trade, with Foster’s growing at 10%. “Retailers should focus on maximising their classic lager range and ensure they are getting the basics right by stocking a staple range,” he added.

Froneri and Cadbury launch ice creams

Kara and Weetabix’s Indies to get their new breakfast muffins hands on Pravha

FRONERI is adding three new ice creams to its range, including Cadbury Boost and Cadbury Dairy Milk Daim sticks, and a Cadbury Double Decker Tub. Cadbury Boost and Cadbury Dairy Milk Daim sticks join the Cadbury stick range, which the company said is the fastestgrowing branded stick range in the category, growing at 50.4% year on year. Cadbury Boost ice cream sticks will be available as a single stick for independent retailers, with an RRP of £1.80 per stick.

KARA has partnered with Weetabix to launch Breakfast Muf�ins, in Apricot & Oat and Apple & Raisin �lavours. Research from Weetabix shows that a quarter of shoppers now eat breakfast on the go, and more than a third of people eat it at their desks. The muf�ins come wrapped

in Weetabix-branded cases, and are exclusively available from Kara Foodservice. Two pack formats are available – individually wrapped and cases of 4x6, which can be included as part of a display. A blueberry �lavour is also available as an individually wrapped option.

PRAVHA, a light pilsner from Molson Coors, will now be available to independent retailers across the country. Tapping into the trend for premium alcohol, last year the brand grew by 87.4%, making it the fastest-growing 4% ABV lager across the top 20 on-trade brands. Within the premium beer category as a whole, the largest value growth is being driven by world beers, where sales are rising by 15%, worth £30m. Alongside giving the beer a redesign, which includes a new embossed bottle and fully enclosed four and 12 packs, the supplier has also launched an advertising campaign targeting cities, includ-

ing London, Birmingham, Manchester and Edinburgh. The second phase of the campaign will focus on in-store promotions and sampling over the summer months.

Don Julio’s premium Back to roots with tequila hits UK shores Estrella Damm

Recruit more drinkers with a brand refresh

DIAGEO Reserve has announced its plans to launch Don Julio 70 Añejo Claro tequila in the UK market. Don Julio 70 combines traditional Añejo �lavours that result from 18 months of barrel ageing, and will be available at the end of May with an RRP of £70. Head of Diageo Reserve Rich Larkin said: “We’re delighted to introduce Don Julio 70 tequila to the UK. This �irst-of-itskind tequila showcases the talent of Master Distiller Enrique de Colsa, who has created an Añejo Claro to challenge conventions and support the growth of super premium tequila in the UK.”

PERNOD Ricard is relaunching Lamb’s Spiced Rum with a new design to increase awareness among younger consumers. The design targets shoppers aged 18 to 28 years old, and the launch will be supported by a media campaign. Lamb’s Spiced Rum has an ABV of 30% and is available with an RRP of £14. Toni Ingram, head of marketing at Pernod Ricard, said the rum category has the second youngest adult customer base in the off-trade and spiced rum is driving overall category performance.

ESTRELLA Damm has unveiled a new logo and packaging design that highlights its Mediterranean heritage. The new look underpins the ongoing investment into the brand, and will be rolled out across cans and bottles, and PoS material. The brand will also sponsor the Top 50 Gastropubs Awards, The National Restaurant Awards and a partnership with Luna Cinema, the UK’s largest outdoor cinema provider. James Healey, country manager at Estrella Damm, said: “As the fastest-growing world beer brand in the UK off-trade, at 113%, Estrella Damm has climbed from the 12th biggest world beer brand to fourth over the past year in retail.”

F L AV OURE D GIN I S IN G R OW

PRODUCTS

Craft beer cans take 72% share PRIYANKA JETHWA CRAFT beer sold in cans now represents 72% of the craft market, with 440ml formats being the most popular size that retailers should invest in. This advice came from craft beer and cider distributor EeBria, which reported that in 2016, this figure only stood at 16%. David Jackson, chief executive and co-founder at EeBria, said the breweries that made the switch from bottles to cans found, on average, that their rate of sale almost tripled. “This was mainly triggered by Manchester brewery Cloudwater’s decision

to stop using 330ml bottles, and to move to 440ml cans, making it one of the first in the UK using this size. It didn’t take long for many others to follow suit,” he said. For the past two years, the price of craft beer has also increased steadily, by approximately 2%. Jackson added: “Between 2016 and 2017, prices increased by 9%, but this is likely to have been influenced by the drop in the value of the pound. “This has made imported items such as many hop varieties and kegs more expensive, with this additional cost being passed on to the customer.”

23 APRIL-6 MAY 2019 betterRetailing.com

Trio of cheesy snacks arrives from Dairylea MONDELEZ International has added three new products to its Dairylea range: Snackers with Cadbury Dairy Milk Giant Buttons, Dunkers Cheesy Cones and Lunchables Streetfood Pizza. The new products will be a key focus in Dairylea’s media plans this year, including outdoor, digital and social media advertising. Rebecca Prout, senior brand manager for Dairylea at Mondelez, said: “With these launches, we are con�ident Dairylea will continue to be the driver of growth in the processed cheese

snacking category. “Dairylea Lunchables are the number-one brand in the snacking kits category, worth double that of the next largest brand in the segment.”

From Old Rascal to something new

McVitie’s biscuit twist Strongbow heads to is easy to digest the pub for new ad

THATCHERS has relaunched Rascal Cider with a new look that will be supported by a social media campaign. Formerly known as Old Rascal, the revamp will feature a new clear recyclable 500ml bottle, allowing the colour of the cider to be seen through the glass. It will come with an RRP of £1.85. Martin Thatcher, managing director at Thatchers, said: “The label has changed, but the �lavour of the cider stays as it always has. Drinkers will recognise the taste that they have had for years and we hope, through a new campaign, to introduce new drinkers to this traditional, bittersweet cider.”

PLADIS has launched McVitie’s Digestives Twists in Chocolate Chip & Caramel and Chocolate Chip & Coconut �lavours, both with an RRP of £1.25. The range is designed to appeal to younger shoppers looking for new �lavour combinations. Emma Stowers, brand di-

rector for McVitie’s at Pladis, said: “McVitie’s is the UK’s fourth-largest food brand, present in 21.5 million households, so introducing new products that build on our range, such as McVitie’s Digestives Twists, offers an opportunity for retailers to grow their biscuit sales.”

FOCUSING on pub culture, Heineken has premiered a new TV advert for its cider brand, Strongbow. Set in the north of England, the 60-second ad features musicians Rob Waters and Chris Kinley playing for locals. For the �irst time, the campaign includes all three Strongbow ciders – Original, Dark Fruit and Cloudy Apple.

Emma Sherwood-Smith, cider director at Heineken, said: “Strongbow has always been famous for its advertising re�lecting the brand’s strong roots in the pub. “This is the �irst in a series of adverts where we’ll see locals celebrated. These are the people who bring us all together in pubs up and down the country.”

Rosie’s Pig has it in Pack upgrade dials up Dial up the premium the can with rhubarb pastries’ heritage with new botanicals WESTONS Cider is launching Rosie’s Pig Rhubarb in a four-pack canned format for the �irst time. The launch comes as We-

stons unveiled an updated look for its Rosie’s Pig range, featuring an illustrated depiction of the supplier’s �irst delivery truck, which was called Rosie’s Pig. Sally McKinnon, head of marketing at Westons Cider, said: “There is a growing demand for canned formats – which now represent 48.6% of the cider market in the off-trade – and we’re con�ident the launch of Rosie’s Pig Rhubarb four-pack will appeal to cider consumers and nontraditional cider shoppers alike.”

BRIOCHE Pasquier has redesigned the packaging of its bakery foods to further emphasise its French heritage. The new packaging features clearer labelling and information, alongside recipe recommendations. One of the company’s �lagship products, Pains au Lait, has also changed name, and will now be known as Brioche Rolls. Matthew Grenter, the company’s sales manager, said: “We are delighted with the new packaging and it’s sure to help retailers develop their continental bakery, and encourage more customers to try the Brioche Pasquier brand.”

BOMBAY Sapphire’s limitededition bottle, English Estate, includes three new botanicals: pennyroyal mint, rosehip and toasted hazelnut. The launch of the bottle marks the �irst of a number of limited editions expected from the brand. Sam Carter, senior brand ambassador at Bombay Sapphire, said: “Bombay Sapphire English Estate is a gin with plenty of complexity. It has a slightly more prominent botanical taste and citrus �lavour. “It is the ideal canvas for many cocktail recipes – whether mixed in a spritz, combined with bolder �lavours, or kept simple in a gin & tonic.”

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MAKE YOUR SOFT DRINKS SALES SPARKLE RETAIL EXPRESS joins category expert Jemma Healy from LUCOZADE RIBENA SUNTORY to find out how

small changes to your soft drinks display can grow sales

THE OPPORTUNITY

50% of soft drinks are bought on impulse*

BEFORE

NOW is the perfect time to improve your soft drinks display to maximise summer sales. Retail Express visited two stores with Jemma Healy from Lucozade Ribena Suntory to show them how an improved range and great displays can grow sales in a category worth £1.7bn to independent retailers. First, we join Dilmeet Singh at his store in Gerrards Cross, Buckinghamshire.

FOCUS ON

EXPERT ADVICE

Londis Gerrards Cross, Buckinghamshire

Commercial activation controller, Lucozade Ribena Suntory

DILMEET SINGH

“WE plan to fully refit our store over the next year, so getting suggestions from category experts such as Lucozade Ribena Suntory on how we should improve our soft drinks section is invaluable. I want to find out how to organise my chiller so I can maximise sales for the wide variety of customers we cater to.”

JEMMA HEALY

“I LIKE how Dilmeet caters to different shoppers. To drive impulse sales, you need to make sure bestsellers are visible, so Dilmeet will see growth in the category by optimising the main chiller at the front of his store for fast-selling lines such as Lucozade Sport and Ribena. We will add a few low- and no-sugar lines that are missing and double-face bestsellers to maximise impulse purchases.”

ACTION PLAN

PRIORITISE BESTSELLERS: To make sure shoppers see the biggest and bestselling products easily, we gave them priority space in the chiller.

SEGMENT THE CATEGORY: To help shoppers on specific missions for specific needs, we blocked products by category and then by brand to make the fixture easier to shop.

CREATE EXCITEMENT: To drive excitement and tempt shoppers into trying something different, we made room for new products next to big sellers.

1 2 3

LUCOZADE RIBENA SUNTORY’S TIPS Place top-sellers at eye level so shoppers can find their favourite brands. Maximise year-round sales by focusing on layout, range and stocking up. Make it easy for shoppers by blocking categories and brands.

WHAT HAPPENS NEXT? Over the next six weeks, Dilmeet will follow Jemma’s advice. We will track the sales data to see what changes. Keep a look out for Retail Express on

7 MAY

GROW SALES IN YOUR STORE For more advice and tips, and to see more of Dilmeet’s shop, go to betterRetailing.com/ sparkling-soft-drinks *IGD Food to Go 2016

PRODUCTS ‘Biggest cider launch of summer’ CHRIS DILLON THATCHERS is rolling out its rosé variety to convenience stores in a move the supplier is calling ‘the biggest cider launch of the summer’. The company initially launched the variety in Sainsbury’s, but has now con�irmed listings with Booker and Co-op. Thatchers Rosé is available in 500ml bottles and cans, and is made with Pink Lady, Fuji and Gala apples with no other fruit added. Philip McTeer, head of marketing at Thatchers, called rosé an ‘untapped’ opportunity for retailers in the apple cider category.

“This is going to be the biggest cider launch of the summer. I can’t see any other manufacturer doing anything of this scale this year,” he added. Apple cider is growing at 5.5% in value sales compared to 2.6% in volume, whereas �lavoured cider’s volume sales are growing faster than value, showing that discounting is driving �lavoured cider, while there’s an opportunity to sell more premium products in apple. Thatchers also announced new packaging across its cans that removes 70 tonnes of aluminium each year from the market. When asked about the business’s stance on a returns

scheme for bottles and cans, Chris Milton, sales director at Thatchers Cider, told Retail Express: “Change is certain, and it’s clear that consumers want manufacturers and retailers to do more. I’m against adding cost to any system, but we fully expect a scheme to come into force, and it’s got to be done in the right way.”

the stat

5.5% The value growth of apple cider

23 APRIL-6 MAY 2019 betterRetailing.com

RedLeg adds some sweetness to spice REDLEG spiced rum is extending its range with the launch of a Caramelised Pineapple �lavour, available from May. The launch comes as the rum category continues to achieve double-digit growth. RedLeg Caramelised Pineapple has a 37.5% ABV, and comes with an RRP of £20. Jade McKenzie, marketing coordinator at Distil, said the company expects the �lavour to attract new consumers to the RedLeg brand, not just to the spiced rum category, but as a whole. “As the gin boom has demonstrated, consumers are con�ident about moving between �lavours and styles

within a popular spirits category,” she added.

Red Bull four-pack flies on to shelves

Whip up a treat with Unilever increases indulgent ice creams focus on big night in

RED Bull is extending its multipack range with the launch of a 355ml four-pack. Multipacks are worth £167m to the market, which equates to 12.5% of the overall sports and energy category, and Red Bull 355ml is one of the top 10 fastestgrowing products in the soft drinks sector, adding £13m in value in the past year. Mark Bell, the company’s strategy and planning manager, said: “Giving retailers the opportunity to stock a variety of multipack options alongside single cans helps the product to stand out on the shelf.”

SUPPORTED by a £3m marketing investment, Carte D’Or’s new range of ice creams are available in Brownie & Vanilla, Raspberry Cheesecake and Sea Salted Caramel �lavours. The new Carte D’Or layered pints come in 100% recyclable plastic packaging with a gold lid and foil seal, emphasising its premium nature. Each product is 430ml with an RRP of £3.99.

Doom Bar campaign tackles pollution

Wall’s Pastry grabs a A dash of watermelon thin slice of the pie in time for summer

SHARP’S Brewery is hitting screens with its new £1m nationwide campaign for its �lagship brand, Doom Bar. ‘In our elements’ is Doom Bar’s �irst above-the-line campaign to run on video-on-demand and social media, and will draw on the brewery’s location on the Cornish coast. The campaign will also reinforce the brewery’s commitment to its surroundings through a partnership with charity Surfers Against Sewage. The partnership will help raise funds

WALL’S Pastry has added a new variety to its Thins range with a Chicken & Chorizo flavour, which contains 65 calories per slice. The launch is available in a five-pack with an RRP of £1.50. Michael Holton, brand marketing manager at Addo, said: “The success of our Thins range proves that the trend for healthier on-the-go snacking is showing no signs of slowing. “We encourage retailers to extend their Thins offering with this new flavour to capitalise on the growing opportunity.”

for Surfers Against Sewage to support their work in tackling plastic pollution.

Noel Clarke, vice president of refreshment at Unilever, said: “The launch will bring excitement back into the frozen dessert category and provide consumers with fresh inspiration. “We know shoppers are looking for smaller, more indulgent formats, so with a choice of three �lavours to choose from, consumers are in for a treat.”

HELLMANN’S is spicing up its offer with a new range of big night in sauces to accompany takeaways. The range includes Pizza (Chilli Garlic Sauce), Chicken (Chilli BBQ Sauce), Mexican (Spicy Sauce) and Kebab (Tzatziki Sauce). They all have an RRP of £1.89. Andre Burger, vice president of foods at Unilever, said the takeaway market has had “staggering” growth over the past decade and is now worth an estimated £4.2bn. He said the new range is set to tap into this opportunity. “The big night in trend is hard to ignore – millennials and Generation Z are swapping party wear for pyjamas.

CÎROC Summer Watermelon is the latest �lavour to join Diageo Reserve’s range, with an RRP of £39. Made using French grapes and presented in a bright frosted red and white bottle, the �ive-time distilled vodka has been infused with one of 2019’s more trends �lavours to create a fruity taste. Rich Larkin, head of Diageo Reserve, said: “White spirits continue to lead the way when it comes to seasonal drinks, and we are constantly innovating and researching to bring the freshest new �lavours. “Cîroc Summer Watermelon has been carefully crafted to ensure it retains the luxury credentials the brand is

Whether it’s staying at home on the sofa binge watching TV or hosting a dinner party for friends, the home is now the centre of the action for them,” he added.

known for, while delivering an on-trend �lavour that can be enjoyed in cocktails.”

PRODUCTS

23 APRIL-6 MAY 2019 betterRetailing.com

Mondelez kicks off weekly draw £20m campaign spurs TOBY HILL AS THE football season draws to a close, Mondelez is kicking off a weekly prize draw named ‘You’re off’ as part of the supplier’s threeyear sponsorship deal with the Premier League. Shoppers who buy Cadbury single or duo products can enter the barcode on the ‘You’re off’ website, where they will be entered into a draw to win one of several travel- and football-themed prizes. These include a trip to Australia to watch Perth Glory play Manchester United, and a trip to Singapore to watch Tottenham Hotspur. An instant-win website mechanic will also give

Barr packs attitude into new Irn-Bru ads WITH summer approaching, AG Barr is driving sales of Irn-Bru with a £6m campaign, running across TV and digital. The adverts, which went live on 13 April, target 16-34-yearold carbonates consumers, encouraging them “to have the metal and con�idence to go about their lives with a bit more attitude, by getting some Irn in them”, according to the

rebrand for Carlsberg

shoppers the chance to win a range of Premier League goodies including 50 pairs of Premier League tickets as well as power banks, keyrings and bags. ‘You’re off ’ runs from 29 April to 7 June, across price-marked (PMP) and non-PMP varieties of Wispa, Twirl, Boost and Double Decker singles; non-PMP Crunchie single; and Cadbury Dairy Milk, Boost, Wispa and Double Decker Duos. Raphael Capitani, Cadbury brand manager at Mondelez, said: “Our end-ofseason promotion last year drove success and consumer engagement for the brand. This campaign will continue this.”

supplier’s marketing director, Adrian Troy. “Not only will the new campaign entertain and engage consumers, it will help drive the overall carbonates category as we lead into the key springsummer period,” Troy added. Retailers can use Barr’s IrnBru themed PoS to create instore theatre and drive incremental sales.

CARLSBERG is launching a £20m advertising campaign to revitalise its brand following the introduction of Carlsberg Danish Pilsner in March. The rebrewed Pilsner aims to harness trends towards more artisan beers, at a time when interest in standard lager is at an all-time low, with 1.6 million fewer drinkers than �ive years ago. The adverts invert the brand’s ‘probably’ slogan. Carlsberg UK’s marketing director, Lynsey Woods, said: “We will be grabbing the attention of drinkers and creating compelling reasons for them to experience the changes for themselves.”

New Seaveg flavour General Mills talks makes its way to indies tacos with Old El Paso available to retailers. Lindsay Hill, marketing manager for Old El Paso, said: “Summer is a key sales period for the category. The weather gets warmer, the evenings get lighter and households increasingly come together to enjoy a family meal.”

CLEARSPRING is expanding its range of seaweed snacks with Organic Seaveg Crispies Black Pepper. Containing 37 calories, the snack has an RRP of £1.99. Maria Dawson, commercial director at Clearspring, said: “Sea vegetables are one of the leading trends in�luencing sales of organic and plant-based foods in independent stores.”

OLD EL PASO has unveiled a £1.5m TV and social media campaign as well as a packaging refresh across its Mexican meal kits. The TV advert is backed by a recipe promotion on social media, designed to inspire busy parents. PoS will also be

Freshen up your chews with Mentos

A whole lotta loaf from Warburtons

Ribena spends £6.2m on heritage promotion

CONVENIENCE retailers can drive mints sales this May as Mentos has unveiled Chewy & Fresh – a new brand, which comes in two varieties. Available in a resealable bottle, Chewy & Fresh comes in Peppermint and Lemon Mint �lavours, and contains 90 sweets per tub. Mark Roberts, trade marketing manager at brand owner Perfetti Van Melle, said: “Mint products are under pressure to stand up against traditional sugar confectionery – the category needs some excitement injected back into it.” Retailers can drive sales in store with PoS.

WARBURTONS is getting juicy this spring with Fabulous Fruit Loaf, a new premium product made with cranberries, raisins, currants and sultanas. Available in 400g packs with an RRP of £1.99, the loaf joins Warburtons fruity teacakes, a raisin & cinnamon fruit loaf and a fruit loaf with orange in the range. Darren Littler, Warburtons innovation and product marketing director, said the product would engage a younger audience and trade up existing fruit loaf shoppers.

FOLLOWING the launch of Ribena Frusion, its infused blackcurrant water range, Ribena is kicking off a £6.2m campaign that promotes the brand’s healthier qualities. Ribena’s ‘Blackcurrant artistry’ campaign includes TV, video-on-demand, outdoor and digital advertising, as well as social media activity. The brand will also give away 600,000 bottles of Ribe-

na Frusion. Previous sampling for Ribena has driven £1.81 in sales for every £1 spent on the campaign. Charlotte Flook, head of Ribena at Lucozade Ribena Suntory, said: “By promoting Frusion as part of the wider brand and emphasising our blackcurrant artistry since 1938, we are communicating our heritage and focus on meeting the consumer needs of today.”

ACADEMY IN ACTION

23 APRIL-6 MAY 2019 betterRetailing.com

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

Name:

Riki Mhatre

Shop:

Today’s News Location: Newcastle upon Tyne 1,100sq ft Size: Three full-time, one part-time Staff:

We’re here to help. Call 020 7689 0500

PARTNER ADVICE

CUSTOMER SERVICE In the first of 12 visits, the IAA and POST OFFICE meet RIKI MHATRE to discuss how to improve customer service INCREDIBLE customer service is the store factor that costs nothing, yet delivers bigger baskets, more frequent visits and happier staff. Retailers report that it can influence customer shopping habits more than pricing or range. Before benchmarking, find out how Post Office’s Peter Johnson helped Riki create an action plan to make loyal customers. He is already strong in customer service, helped by his enthusiastic and cheerful staff who live locally and know the community. How can the IAA help Riki make more of his brilliant team in customer service?

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

Riki is enthusiastic and open to advice, both of which are essential to maintaining customer service. Peter Johnson

Head of Network Development Post Office

YOUR ACTION PLAN 1 Walk your shop

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

2 Benchmark your shop

Use the checklist below, ticking all you see evidence of

WHY I TAKE PART I wanted to benchmark to find out what other retailers are doing that I’m not. By taking on board their ideas, I know I can improve my store as a whole. Part of this involves meeting our community’s need for additional services, so I was delighted Post Office could give me advice in this area.

Presenting your staff and shop professionally Engaging with customers so they feel welcome Setting the standard and sticking to it Handling suggestions and complaints Anticipating and exceeding customer expectations

IAA ADVICE Presenting his shop professionally

Presenting his staff professionally

Articulating customer service expectations to staff

Riki has worked hard to change the store’s reputation from an early-open off-licence to a more community-friendly shop. How can he make his shop more welcoming?

Riki is considering a new name and colour scheme for his store. Associating his employees’ customer service skills with this will help cement the store’s friendly reputation.

The service standards for staff to follow were: make money, keep the store clean and stay happy. Most of these happen naturally, but is it clear what action they require?

Peter says: “First impressions are about what customers see and feel when they enter, which makes it vital to get the environment right. Factors such as temperature and lighting are key in making customers want to spend time in your store.”

Peter says: “Everyone has experienced that moment when you need advice, but you’re not sure whether someone is a member of staff. Having uniforms can help shoppers to ask for help. It also helps to ensure a professional overall look for the store.”

Peter says: “Most businesses seek to achieve the aims outlined by Riki. The challenge is to make sure any standards are measurable, and to articulate this to staff. Having this documented and available to refer back to helps staff know what is expected.”

ACTION Improve lighting around the till to better present your offering.

ACTION Introduce uniforms to ensure customers can easily identify staff.

ACTION Write down and communicate clear customer service expectations for staff.

3 Pick one thing to improve Write it down, implement it this week and let us know how you get on using #IAA19

KEEP SHOPPERS COMING BACK Visit betterRetailing.com/IAA/benchmark to better serve your customers and see how you can improve in 11 other categories.

Next time: Marketing to Customers

PRODUCTS

Availability is crucial to success PRIYANKA JETHWA TO increase average basket spend and sales of soft drinks, unaffiliated independents must improve the availability of products and visibility in store. This is according to Steve Davies, head of category for convenience and impulse at Britvic, who at the company’s annual soft drinks review stressed that average basket spend at an unaffiliated store stood at only £5.16, with 15% of sales coming from soft drinks. Symbol group retailers, on the other hand, averaged basket spend of £6.48, with 19% of sales coming from soft drinks.

For unaffiliated retailers to increase this figure, he said: “Retailers should ensure they have more than one facing of bestsellers and ensure the soft drinks chiller is one of the first things shoppers encounter when coming into the store.” He said retailers must also concentrate on trending categories such as energy, which is growing at 14.1%, and cola, growing at nearly 12%. “It’s important to do so, because soft drinks shoppers spend, on average, £6.70, which is 20p more than non soft drinks shoppers. At the moment, only 11% of drinks are bought on impulse, well behind confectionery at 27%,

and crisps and snacks at 23%. “This means there is definitely room for improvement

by focusing on availability and positioning of drinks,” he added.

US tobacco trends hint at UK dip

Unicorns add a little magic to fruit flakes

THE number of cigarette packs sold in the US dropped significantly in March as smokers made the switch to vaping. Tobacco sales in the US, which is often seen as a forerunner to sales trends in the UK market, fell 8.8% compared to last year. While price increases partly offset the impact on reve-

FRUIT Bowl is adding new Unicorn Fruit Flakes to its kids’ range, available in single packs with an RRP of 49p. The range is gluten-free and vegan, and each pack contains the same amount of sugar found in a single apple. The launch will be supported with a campaign, which will include the chance to win a unicorn for a child’s birthday party. Alice Bream, Fruit Bowl’s brand manager, said: “It is a great opportunity for us to build the brand as we look forward

nues, the decline followed an 8% fall in tobacco volumes in February, and an overall 5.3% decrease in 2018. Dan Thomson, managing director at Juul, said: “Sales previously declined by only 2-3% on average every year. We believe we can help achieve similarly transformative results in the UK.”

to a number of new launches across convenience.”

23 APRIL-6 MAY 2019 betterRetailing.com

Muchos investment for new McCoy’s ad KP SNACKS is investing £4m in a new campaign for its Mexican-style tortilla crisps, McCoy’s Muchos. The ‘When Mexican flavour calls’ campaign will span TV, video-on-demand, digital, outdoor and in-store activity, and will run until the end of May.

Claire Cooper, marketing manager at McCoy’s, said: “McCoy’s is the fourth biggest crisps, snacks and nuts brand in the UK, worth £124.7m. “The brand is also growing ahead of the total crisps, snacks and nuts category at 5%.”

Jägermeister rolls out promotion for indies JAGERMEISTER’S new onpack promotion, ‘Ice cold’, has been launched exclusively into the convenience channel. The promotional bottles offer shoppers the chance to win one of 30,000 prizes, including branded merchandise, such as Jägermeister shot glasses, and moneyoff vouchers to redeem at Jägermeister’s online store. Thirty thousand 50cl pricemarked bottles of Jägermeister’s

promotional packs will be available to the convenience channel, with an RRP of £14.99. Giles Mountford, trade marketing manager at Jägermeister, said: “It’s important to us that consumers understand how to best enjoy the product. “The new Ice Cold pack has been designed to educate our fans in an engaging way – only revealing the promotional codes when it hits the ideal serving temperature of -18°C. “The convenience channel is a key channel for Jägermeister, with the brand outperforming the wider category, so we’re pleased to launch an exclusive pack offering added value and something unique to both the retailer and shoppers.”

A brand refresh for Britvic adds to the Are your customers Stowford Press Cider water-plus category cheddar spreaders? WESTONS Cider has refreshed the branding for its Stowford Press Cider to reinforce the brand’s premium quality.

The updated design includes a reference to Herefordshire, where Stowford Press is made. The new packaging, launching initially with Stowford Press Apple Cider 4x440ml, will also be plastic-free. The updated look for Stowford Press coincides with another round of growth for apple ciders in the off-trade market, at 2.5% year on year. In grocery and impulse, Stowford Press’ Apple Cider is growing 24.8% year on year.

TO support summer sales, Britvic is introducing a new variety to its infused sparkling water brand, Aqua Libra, with a Cucumber, Mint & Lime flavour. With 85% of the population trying to be healthier and 53% stating that sparkling flavoured water is a good alternative to traditional carbonated soft drinks, the UK market is at the beginning of a journey into the infused water market, following its explosion in the US. Rachel Phillips, out-ofhome commercial director at Britvic, said: “Following the introduction of the soft drinks industry levy, we’ve seen a significant uplift in people switching from full-

sugar drinks to no- and lowsugar alternatives.”

LACTALIS McLelland’s Seriously Spreadable is returning to TV screens with its ‘Be a real cheddar spreader’ campaign. The campaign is set to form a part of a £1.2m marketing spend for the brand this year. It will also be supported by in-store activation and pro-

motional activity, as well as partnerships with social media celebrities. Mike Chatters, sales director for Lactalis McLelland, said: “As the fastest-growing brand in the category, we believe that this is the perfect time for Seriously Spreadable to return to screens.”

ACADEMY IN ACTION

23 APRIL-6 MAY 2019 betterRetailing.com

Name:

Amit Puntambekar

Shop:

Ash’s Shop (Nisa Local) Location: Fenstanton, Cambridgeshire 1,400sq ft Size: Three full-time, six part-time Staff:

We’re here to help. Call 020 7689 0500

PARTNER ADVICE

MARKETING TO CUSTOMERS

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

Loren McErlean

Commercial Planning and Strategy Manager Lucozade Ribena Suntory

In the second part of a 12-visit programme, the IAA and category partner LUCOZADE RIBENA SUNTORY help AMIT PUNTAMBEKAR improve his marketing to customers RETAILERS who market to their customers well can drive people to shop with them, and use promotions and loyalty schemes to increase spend. Amit Puntambekar runs Ash’s Shop (Nisa Local) in Fenstanton, Cambridgeshire. One of his biggest challenges is to get customers excited about deals and promotions when they are already so familiar with his store. Before benchmarking against these criteria and finding out how well you are doing, read how Lucozade Ribena Suntory helped Amit develop an action plan to fit his store’s needs.

Amit has the basics in place, and with a few small tweaks he will see his average basket spend rise.

YOUR ACTION PLAN 1 Walk your shop

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

2 Benchmark your shop

Use the checklist below, ticking all you see evidence of

WHY I TAKE PART I wanted to get an outside perspective on how effective my marketing was. I’m hoping that by working with a key supplier like Lucozade Ribena Suntory, we can learn to use promotional tools better and increase our sales across the store. Marketing is so important, because if you cannot communicate what you’re doing in store, you will struggle to gain sales and drive profits.

IAA ADVICE

Making local people want to use your shop Attracting passers-by in-store Communicating your offer to your target shoppers Promotions and loyalty schemes to encourage spending Planning for success and measuring it

Communicating his meal deal offer to target shoppers

Showing regular customers what else he offers in store

Marketing new products to customers

Amit currently has his food-to-go offer near the back of the store. His challenge is how he can introduce and communicate a meal deal offer to shoppers.

Amit has a digital screen, but wants to make better use of it. He wants to increase his morning shoppers’ basket spend when they come in to buy newspapers.

Amit ensures his staff try new products when they come in so they can recommend them to shoppers. His challenge is how he can convert this into a sales uplift.

Loren says: “Amit has a great store and space he can use to promote meal deals more effectively. One way to address this might be by using coloured stickers on items to show shoppers what is included. This will make it easier for consumers to shop.”

Loren says: “In-store screens are an effective way to grab the attention of shoppers. One way to increase engagement can be by using moving images on his screen and tailoring adverts to the time of day.”

Loren says: “Recommendations are a great way to engage customers and increase sales. Shoppers will listen to local staff members they trust. Amit can reinforce this by placing staff recommendation cards around the store, as they do in Waterstones.”

ACTION Place stickers on meal deal items to show what products are included.

ACTION Tailor digital-screen promotions to the time of day and use moving images.

ACTION Create staff recommendation cards and place them around your store.

3 Pick one thing to improve Write it down, implement it this week and let us know how you get on using #IAA19

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

Next time: In-store Display

DON’T MISS THE 3 MAY ISSUE OF RN

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

MINIMUM UNIT PRICING: Has it impacted alcohol sales? “I’VE seen sales of 3l and 1l ciders decline and it has made us more competitive with nearby supermarkets, but it’s not really made much of a difference to alcohol sales, to be honest. Like cigarettes, customers will still want to drink alcohol and they’ll buy the products regardless of price.” Shabaz Ali, Best-one Falkirk, Stirlingshire

Crime special: what thieves really think of your store Our exclusive feature shares insight from prosecuted shoplifters and offers advice on tackling theft

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“TESCO is heading in the right direction with Booker working wonders on sales. Aldi and Lidl remain a threat, but CEO Dave Lewis has been busy bolstering the group’s armoury. With plenty of scope for improvements, profits and dividends could rise.” Deanna Oppenheimer, nonexecutive chair at finance expert Hargreaves Lansdown

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“SALES growth in the fourth quarter eased as we started to sign annual contracts with retailers. We are continuing to unlock the benefits of joining forces for Booker’s customers, with greater choice, lower prices and better quality. I’m delighted with the improvement across the business.”

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Hussan Lal, Park Licence Grocer, Paisley, Renfrewshire

TESCO-BOOKER: Have independents benefited since the merger?

FREE cut-out-and-keep glossary of key vaping terms, plus tips and strategies to grow your profits

RETAIL NEWS THAT MATTERS

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“IT’S levelled the playing field and is bringing customers to smaller shops instead of supermarkets. We’ve seen a 30% increase in sales of bottles of Smirnoff and Glen’s because the prices are the same, regardless of whether you go to a supermarket or a convenience store.”

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The best independent retailers stay ahead by reading RN each week. Do you? ORDER YOUR COPY from your news wholesaler today or contact Kate Daw on 020 7689 3394 TO ADVERTISE in RN, please contact Matthew Oliver on 020 7689 3367

“THE high street delivered one of our best trading performances in recent years, despite the widely reported challenges, with like-for-like sales down 2%. High street profit is in line with expectations. This has been driven by good growth in seasonal stationery ranges, including Christmas cards.” Stephen Clarke, chief executive, WHSmith Group

“WE’RE still seeing strong demand. We remain relevant by offering something different in stationery, greeting cards and wrapping paper. This is important. We offer 54 different colours of plain card and nobody else nearby does this.”

We’re still seeing strong demand in the area

Mark Dudden, WHSmith Local and Post Office, Albany Road, Cardiff

CO-OP: Will no longer selling kitchen knives reduce knife crime?

I don’t think it will make much of an impact in stopping knife crime

“IT’S a good thing. They shouldn’t be selling them anyway, but it’s good that they’re now aiming for prevention rather than a cure. The decision should help reduce the number of knife crime incidents because any potential criminal will be unable to buy a knife.”

“I COMMEND Co-op for taking the initiative, but I don’t think it will make much of an impact. None of the big four supermarkets are doing the same and youths will still be able to buy the knives online. I think Co-op are just doing it to get good publicity.”

Raj Aggarwal, Spar Wigston, Leicestershire

Kunal Patel, Canons Convenience, London

LETTERS

23 APRIL-6 MAY 2019 betterRetailing.com

Wharfedale

sam Premier coldbeck convenience store, Hull

Letters may be edited

There’s a whole community of new customers out there on social media and it’s yours for the taking

‘Menzies is unwilling to help you with anything’ I CAN relate to the shop owners’ issues published in the letters section of Retail Express (9-22 April). Menzies is an absolute nightmare to deal with, from consistent late deliveries to billing issues. They are unwilling to deal with you on anything as they know you cannot go anywhere

else to get your papers because of the monopoly they hold on their area. I have reached out to Smiths News, but they are unwilling to help as I am too far inside a Menzies area. With no competition, these companies are allowed to do what they want, when they want, with no repercussions, and it is very

frustrating for us. As a small village shop, we rely on the papers to help bring early morning trade through the door. They have just raised my carriage charges as well, and when asked as to why they feel they should charge more for a service that they are failing daily on, I got the typical

response of “well it’s based off the transportation industry average”. I am being held over a barrel with no other alternatives and it is drastically affecting my sales. Don Barlow, The Roxwell Village Store, Chelmsford, Essex Tweet us to get featured!

TWEETS OF

THE WEEK

WIN £50-worth of Mentos Chewy & Fresh

RETAIL Express has teamed up with Perfetti Van Melle to give away £250-worth of product, split between five lucky retailers. The prize is Mentos Chewy & Fresh, a bite-sized chewy mint offering a burst of long-lasting minty freshness, aimed at on-the-go consumers looking for refreshment.

@retailexpress

“Listen to the customer. You can never stop learning from the customer” – Ken Towle, chief executive ofﬁcer, @NisaRetail #ACSSummit @ACS_LocalShops

£100m opportunity for soft drinks in the convenience and impulse channel this year – this equates to £2,200 for every independent retailer in the UK if done right @Britvic @Priyanka_NT

TO ENTER Fill in your details at:

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

GETTING our message across to customers has changed massively over the years. We realised that with extra competition in the area, changing shopper habits and a growing customer need for instant information, leaflets still have their place in marketing a business, but we weren’t always reaching every Each issue, one of seven top demographic. retailers shares advice to With the use make your store magnificent of social media, specifically Facebook in our case, we have nearly 1,600 followers who browse our posts, competitions, updates and see new promotional activity on a daily basis. Most of them are passive consumers, making no attempt to like, share or comment on posts, but when we view the activity on a post, we realise how many people now know about a new launch, price drop or promotional activity that we would have missed with a leaflet drop. The secret to building a social community in our experience is the power of free. Activity on giveaways is huge compared to standard posts. By asking your customers to ‘simply like and share to win’, you’re expanding your audience to their friends, often picking up new followers who never even knew you existed, even though your shop is probably 100 metres from their house. Just don’t forget to click ‘invite’ when someone likes your post as this will capture them in your next campaign whether they choose to follow you or not. Many retailers have social media sussed and are reaping the rewards of extra reach, increased customer flow and are boosting sales around new products, but so many haven’t taken advantage yet. If you’re one of them, spend a few minutes looking at a few of your fellow retailers’ pages on Facebook, Twitter, Instagram or Snapchat and pinch some ideas. If you’ve no idea what any of those platforms are, ask a relative or member of staff to be your social media manager and see where the journey takes you. There’s a huge community out there, and it’s yours for the taking.

Minister commits in my debate to responding to the consultation on #retailcrime by “the autumn” – the consultation is open to June 28th @DavidHansonMP

Get in touch

@retailexpress betterRetailing.com facebook.com/betterRetailing chris.dillon@newtrade.co.uk 020 7689 3379

CATEGORY ADVICE HEALTHIER SNACKING

23 APRIL-6 MAY 2019 betterRetailing.com

SLIMMER SNACKING

the stat

£125m The value of healthier snacks

With healthier snacks now worth £125m, healthier snacking is a trend that is here to stay. TOBY HILL reveals how you can make more from this growing opportunity

SMALLER CALORIES, BIGGER PROFITS SEVERAL trends are driving increased sales in the snacks sector, which has experienced growth of 10% in the past year for convenience retailers. Firstly, consumers are dropping the big weekly shop in favour of frequent visits to local stores, boosting opportunities for impulse purchases. Combined with such shifting shopping habits are evolving eating habits, with a move towards less defined meal times, replaced

instead by regular snacks on the go. However, despite such positive trends, retailers that continue stocking just the same old range of crisps and cake bars are unlikely to make as much profit as possible. Retailers need to adjust their product offering to meet customer demand for healthier snacks, with the ‘better for you’ market now worth nearly £125m – a year-on-year growth of 9%.

This is good news for retailers, says Laura Sayer, head of direct to store at Costcutter, who points out that customers are willing to pay a premium for healthier snacks. “The average shopper is willing to spend £1.44 on a single snack, whereas someone looking for a healthier snack is willing to spend £1.84, presenting convenience retailers with a real opportunity to drive basket spend,” she explains.

A WINNING RANGE DESPITE the fact healthier snacks are aligned with current trends in convenience shopping, getting hold of them can be a challenge, as London retailer Kay Patel has found. “There are products we will have in that we have sourced directly from the manufacturer, and which will do well for a while,” says Patel, who owns a series of Best-one stores around east London. “But if you can’t get them

through more conventional channels, they’ll fall by the wayside, as it’s too time-consuming to keep seeking them out specially.” One wholesaler that makes it easier to acquire quality snacks is Epicurium, where Patel sources many of his most successful products, such as Nim’s dried crisps, Emily fruit and veg crisps, and Fifth Season freeze-dried fruit. “Some products are filtering through to mainstream whole-

salers, which is easier, as the price and minimum order are usually lower,” he adds. Similarly, Darren Craig has identified certain products that work in his Today’s Extra store in Derry. “My customers are generally looking for value, but there is also some movement towards healthier products – we’ve just put out the new Rice Fusions Pringles, pricemarked at £1, and they are selling well.”

CATEGORY ADVICE HEALTHIER SNACKING

LOW-SUGAR CONFECTIONERY Mark Roberts, trade marketing manager, Perfetti Van Melle “CONSUMERS are becoming increasingly health-conscious, looking for alternative products to help reduce their sugar consumption. In store, healthier snacking products are increasingly gaining space, with retailers opting to give them more visibility often at the expense of sugar confectionery. “This presents a fantastic opportunity for the growth of better-for-you confectionery, which is currently worth

£45.1m and growing at 8.9%. Perfetti Van Melle had sales totalling £13.3m in the segment last year. “Innovation is key for driving momentum across our offering, as well as injecting excitement into the category. Increasing the fruit-juice content in Fruittella 30% Less Sugar ensured the flavour, texture and experience expected of a Fruittella product was maintained, despite the sugar reduction.

“We also introduced Smint Xtrm, the first extra-strong menthol eucalyptus power mint, to the market last year as a sugarfree product, and it’s already adding nicely to the Smint range, which grew The average price shoppers 5.2% last year.”

the stat

£1.84 are willing to pay for a healthier snack

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STAND-OUT DISPLAYS IN HIS Faversham Simply Fresh, Sandeep Bains has decided to prioritise healthier snacking, cutting down on grocery facings to create space for two dedicated bays. These are positioned near the front door, making them among the first items customers see when they come

through the door. “It’s not just a case of meeting current trends, although these products definitely do that,” says Bains, who uses Epicurium’s data on bestselling lines to shape his range. “These are quality products, and ensuring they stand out helps create the right impression for my store.” Anish Parekh takes a different approach in his Broadoak

MUSTSTOCKS Cadbury Brunch Bar – Susan Nash, trade communications manager, Mondelez “The consumer focus on taste, balance and well-being has helped Cadbury Brunch Bar to deliver against consumer needs. Brunch Bar provides a balanced and tasty snack option for consumers, and as a result is seeing growth of 15% in both value and volume.” Nakd Coffee & Walnut – Marina Love, marketing director for Natural Balance Foods “Natural Balance Foods has kick-started 2019 by adding two new flavours to the Nakd range: Coffee & Walnut and Salted Caramel. Made with 100% natural ingredients, such as fruit and nuts, as well as being gluten-, wheat- and dairy-free, vegan-friendly and counting towards one of your five-a-day, these new bars are the natural choice for retailers looking to offer their customers tasty, healthier alternatives.” Pop Oats – Emma Heath, head of marketing, Nairn’s “With very few oat-based ‘crisp alternatives’ on the market, Nairn’s Pop Oats is the first-ever glutenfree popped oat product. At only 83 calories per pack, they are a source of fibre and have 60% less fat than regular fried crisps.” Philadelphia Light & Tasty Snacks – Paola Cassinelli, Philadelphia senior brand manager, Mondelez “Healthy snacking is one of the biggest snacking trends. Philadelphia Light & Tasty Snacks contain only 103 calories, while the Philadelphia Light & Herbs Snacks with wholegrain breadsticks contain only 86 calories, making them perfectly positioned to maximise this opportunity.” Oat Bar – Emma Heath, head of marketing, Nairn’s “This gluten-free flapjackstyle bar contains 40% less sugar than the average fruit/cereal bar, with the added health benefit of being made from glutenfree wholegrain oats. The range is high in fibre and rich in vitamins and minerals, and all three flavours are suitable for vegans.”

the stat Londis & Post Office in Ashtonunder-Lyne, Greater Manchester. His bestselling healthier snacking products tend to be related to sports, with protein-packed packets of nuts such as Graze selling particularly well. “I place them by the counter and am always on the lookout for ways to discount them,” says Parekh. “They’re often quite expensive, which can put my

customers off, so finding a way to lower the price – by buying when they’re on promotion, for example – then putting them by the till with PoS to highlight the offer helps drive sales.” For Kay Patel, an important concern is that these products can often have shorter shelflives and – being small and high-value – are a popular target for petty thieves. To prevent

this, he’ll stock them on the countertop, or at least within eyeline of the tills. Sometimes, Patel adds, good merchandising is simply a case of patience. The growth of the snacking “We ran a trial with Fifth Season and initially they market in convenience didn’t work, but we kept with stores it, kept them visible, and now we’ve got customers that come in looking specifically for them.”

10%

CATEGORY ADVICE PRICE-MARKED PACKS

23 APRIL-6 MAY 2019 betterRetailing.com

MAKE YOUR MARK More and more shoppers are actively looking for price-marked packs to get better value for money. Here, PRIYANKA JETHWA looks at what customers want, and how retailers can drive their sales

WHAT DO PMPS HAVE TO OFFER? A GROWING number of shoppers believe that price-marked packs (PMP) are cheaper than non-PMPs. As consumers increasingly look to get the best value from their purchases, retailers need to not only stock an extensive

range of PMPs, but make sure they’re getting the most value from them. A good PMP offer can encourage a shopper to buy an item they had no intention of picking up when they entered the store, and they are an ef-

the stat fective way of presenting perceived value to customers. In addition, research has shown that a fifth of shoppers choose a convenience store if they know it stocks PMPs.

82%

of shoppers seek PMPs while shopping

RETAILER

TIPS

Sanmugalingam Pirapakran, S & M Supermarket, east London

Nishi Patel, Londis Thamesmead/Londis Bexley, south-east London

Naresh Gajri, Cranhill Convenience Store, Glasgow

“PMPs are very important. It’s easy to sell them, and customers want them. They’re also more convenient for us as the products are set at a fixed price. “Customers never question the price when they buy PMPs. That’s the main thing. When the price is marked on the product, the customers know there is value there, and they are specifically looking for these packs. “We mainly order price-marked items – they give us enough profit, around 20%, so we don’t have to worry about that. Most of our higher margins come from products from local suppliers. “If a certain product is available in price-marked and non-price-marked options, we’ll always stock the pricemarked item. “When it comes to competition, even if the bigger stores are selling a product at a cheaper price, customers will see the price-mark and know we can’t easily go under it. If they see a price-mark, they’ll trust the product is at the right price.”

“PRICE-MARKED packs are very important for us, so we stock them across our store. They allow us to give a bit more back to the customer, as we could easily price above in our area. The margins are getting better on PMPs, as are the volume of sales, across the board. “You have to shop around to get the best margins. We used to get between 15% and 20% on price-marked goods. Now we’re getting closer to 25%, even 30% on some items. “Customers have got more savvy in the last two-to-three years. They’re shopping around a bit more. They realise it’s price-marked but it’s the same size, price and quality as what they bought at full price. PMPs have given us a better image – that we’re offering a better priced product for the customer. They know they can come in with £1 and leave with the same chocolate bar that would be £1.49 down the road. “The more PMPs we have, the more volume we sell. If they’re used in the right way, with meal deals and things like that, it definitely improves the return. The only negative for us is we can lose margin.”

“BECAUSE we’re with One Stop, we don’t do any PMPs. When we were independent, we used to like having everything price-marked, but One Stop’s policy is not to have any. “PMPs are a very good thing for independent retailers, because people trust that they aren’t charging too much over the RRP. One Stop controls our prices, and most of our items are cheaper than PMPs. “We do find that customers come in looking for PMPs, so we have to explain the situation to them. It does cause some problems. Most people like price-marked things. We never used to have arguments, but now they sometimes say that we’re overcharging. When that happens, we explain to them that One Stop doesn’t sell any PMPs, and that we’re cheaper. “I don’t think we’re getting much advantage from not using price-marked products. We used to have a more peaceful time, because we were a Premier and everything used to be price-marked. Now nothing is price-marked.”

T&C’s: 18+ UK. Open 01.04.19 – 31.08.19. To enter: buy 5 x cases of promotional packs in 1 transaction then register online at www.mixmatchcash.co.uk Maximum 10 entries over promotional period, up to 2 per week. 1 prize per person. Internet access required. Prize: 60 x cash prizes (incl. 5 x £1000, 5 x £500 and 50 x £50). Proof of purchase necessary excl. NI. Retain receipt. To enter and view full T&Cs visit www.mixmatchcash.com

OMG25146 PMP Trade V01.indd 1

08/04/2019 16:40

Nestlé Cereals

Right pack, right price, right size!

Shoppers who buy breakfast cereals in convenience have an average basket spend of £13.29 – worth more than double an average food basket without cereal (£5.48)* 84% of shoppers say they would like to see PMPs in their local convenience store** ® Reg. Trademark of Société des Produits Nestlé S.A. Subject to availability. Shreddies is a source of iron which contributes to normal energy-yielding metabolism. Shredded Wheat is low in saturated fat. Reducing intakes of saturated fat helps maintain normal blood cholesterol levels. Enjoy as part of a healthy diet and lifestyle. Price mark packs accurate at the time of printing. Curriously Cinnamon rated on average 4.7 by 371 consumers reviews posted on www.nestle-cereals.com/uk.en as of October 2017. Source: (*Him! CTP 2018 & Kantar 52 w/e 9 Sep 2018)(**KAMera, an eye on convenience retails, March 2017cereal product if it is in a PMP)

CATEGORY ADVICE PRICE-MARKED PACKS

23 APRIL-6 MAY 2019 betterRetailing.com

the stat

68%

of retailers stock PMPs as part of their confectionery offering

RETAILER

TIPS

Five ways to get the most out of PMPs Ensure shoppers can choose from a range of sizes and formats “Larger format soft drinks, such as 1l bottles, are suited to take home, while on-the-go shoppers are looking for a more convenient size, such as Lucozade Energy 380ml or Lucozade Sport 500ml,” says Matthew Gouldsmith, channel director for wholesale at Lucozade Ribena Suntory.

Use big night in occasions to drive sales Big night in is a perfect way to drive sales of PMPs. To offer something extra special and get shoppers excited, retailers should keep on top of launches. Dan Newell, confections marketing manager at Mars Wrigley Confectionery, says formats such as Starburst Very Berry in a £1 PMP hanging bag make a great sharing option for big night in occasions.

Use PMPs to encourage impulse sales and boost your store’s reputation Kate Wall, marketing manager for Cadbury at Mondelez, says: “PMP singles help independents drive impulse sales. Research shows the perception of value and convenience make stocking PMPs a great option, with 20% of shoppers going so far as to say they would choose a particular convenience store if they knew it stocked PMPs.”

Positioning bestselling products and grouping seasonal products together is key A good offer can often encourage a shopper to buy an item they had no intention of picking up when they entered the store, and PMPs are an effective way of presenting perceived value to customers. “Retailers should consider investing in secondary sitings of PMP offers – for example, PoS close to the entrance of the store or by the checkout can help retailers increase their sales,” says Amy Burgess, senior trade communications manager at Coca-Cola European Partners.

Position PMPs at eye level Thomas Bennet, trade marketing controller at Global Brands, says that retailers should always aim to position their bestselling PMPs at eye level to guarantee key products catch as much attention as possible. “Merchandising is all about showing off what consumers want – retailers should think about the area their store is located in. If a retailer is based in a heavily student-populated area, for example, they can benefit from stocking PMPs of student favourites.”

CATEGORY ADVICE PRICE-MARKED PACKS

BOOSTING IMPULSE SALES ACCORDING to Isabel Lydall, category & insight controller at Burton’s Biscuit Company, PMPs are still a key driver of impulse sales Burton’s is working to tap into the impulse sale demand still triggered by PMPs in the convenience sector. The British biscuit manufacturer, which produces well-known brands

such as Maryland Cookies, Jammie Dodgers and Wagon Wheels, offers a wide range of PMPs. “Offering customers a range of price-marked biscuits is a simple, cost-effective way for convenience retailers to attract impulse shoppers – and increase basket spend,” says Lydall.

PMPS AS PROBLEM SOLVERS Trystan Farnworth, commercial director for convenience and impulse, Britvic “PRICE-MARKED packs have always been a great way for convenience retailers to offer their shoppers value, but with the channel facing increasing competition from multiples, discounters, out-of-home outlets and delivery services, they should be viewed as a must-stock item across a range of categories. “Looking at soft drinks, PMPs of both on-the-go and take-home formats have an important role to play in terms of helping retailers build trust and loyalty among their shoppers, encouraging them to return for competitive prices in the future. “Another consideration in our area is that the introduction

of the Soft Drinks Industry Levy last year has meant we’ve seen more people switching from sugary drinks into low- and noadded-sugar alternatives. This means the PMP range in store should reflect this change in consumer behaviour. “To support retailers, we’ve introduced a price-marked 330ml can for 59p or two for £1 multibuy deal, which includes Diet Pepsi, Pepsi Max and 7Up Free. This rolled out in autumn last year, following the success we saw on a £1 or two for £1.70 price-mark on our 500ml bottles. Both of these are mixand-match deals, giving shoppers the freedom to choose two drinks from a selection of popular brands.”

“Convenience stores that offer a varied biscuit range generate a higher basket spend, with the average basket spend of a biscuit category shopper more than double the average food to go shopper (£13.29 vs £6.50), highlighting the value this category has to offer retailers.” According to Lydall, Burton’s recognises the important role

that PMPs play in reassuring shoppers about the value of the products they’re buying. To that end, the company says it aims to support the sector through new product development. “Manufacturers need to ensure their bestselling lines are available as PMPs, so that retailers can stock up and capitalise on the impulsive

nature of the biscuit category, and the increased rate of sale and profit that we know PMPs deliver,” Lydall adds.

the stat

59% of retailers say PMPs sell faster than regular lines

23 APRIL-6 MAY 2019 betterRetailing.com

SUPPLIER

VIEWS

Amy Burgess, senior trade communications manager, Coca-Cola European Partners “PMPs are a particularly effective way to encourage consumers to try new products, thanks to the perceived value they offer, and research shows that almost half (43%) of shoppers claim that they’d be more likely to try a new line if it was sold in a PMP. “Retailers are at the heart of our price-marking strategy. PMPs are provided at a price that offers a fair and competitive margin that helps to increase consumer appeal by offering a great perception of value, while allowing our customers to reap the full benefits of increased sales. “While our PMPs are designed to provide an affordable single price, we also provide plain packs across all of our formats and brands to help retailers choose the right option for them and, ultimately, it’s their choice as to which products they choose to focus on in store.”

Wayne Thompson, customer marketing manager, Yazoo “WITH the current economic climate, consumers want to ensure their purchases are good value and that they are receiving the best product for their money. Thirty-three per cent of shoppers believe that PMPs are cheaper, and 59% of retailers say PMPs sell faster than non-PMPs. It is important to drive brand loyalty, and if shoppers know they can buy their favourite milk drink at the same price every time, it increases their confidence in the retailer and leads to an increase in basket spend. “PMPs are a way to offer shoppers confidence in value for money when shopping in the impulse channels. We know that PMPs inspire trust from both shoppers and retailers, and that’s why it’s important they form part of our core offering. For retailers, it is important to offer a range of sizes and flavours to suit every need, from on-the-go commuters to teenagers looking for a top-up ahead of dinner. Retailers cannot afford to miss these opportunities.”

Susan Nash, trade communications manager, Mondelez International “Research has shown that PMPs offer a number of advantages for cash-conscious shoppers and retailers alike. “For shoppers, PMPs offer reassurance that they are not being overcharged, while contributing to an overall positive price perception. For retailers, the perception of improved value, convenience and customer trust make stocking PMPs a good option – with 20% of shoppers going so far as to say they would choose a particular convenience store if they knew it stocked PMP products.”

VANS EXPRESS MERCEDES-BENZ SPRINTER

23 APRIL-6 MAY 2019 betterRetailing.com

SPRINT FINISH CHRIS DILLON gets behind the wheel of a Mercedes-Benz Sprinter to find out if this van could be right for your business

INTRODUCTION WITH its four-metre-long load compartment, high enough to stand up in, the Mercedes-Benz Sprinter is effectively a stock room on wheels. The Sprinter can easily fit four pallet stacks, with a left door wide enough to fit one through. If you’re looking at making the most of your cash and carry’s latest deals, then this is the van for you. The Sprinter can also come with a variety of additional features, such as a reversing camera (£440), electrical parking brake (£260), air conditioning (£970) and blind spot assist (£440). Digital radio, 5V USB socket, heat insulating glass and double passenger seat comes as standard. Owners also benefit from access to free roadside assistance every hour and day of the year.

fast facts Model: Mercedes-Benz Sprinter 316 Panel Van Price: From £24,350 Doors: Two rear, one left sliding door

DRIVING TEST

Load compartment length: 4.3m Height: 2.4m Fits a full pallet

DESPITE its hefty size, I found the Mercedes-Benz Sprinter remarkably easy to handle. At times it was easy to forget that I had four metres of van behind me as it was so easy to fly around. Driving around the narrow roads around where I live in north London was a squeeze at times, but other road users tend to be pretty quick to give way when they spot a 5,000kg vehicle making its way. I did find a couple of turns quite tight, but after I got used to it, working out how much space to give became second nature. In regards to parking, I would have found it incredibly difficult without the help of the rear parking camera. A reverse bay park was a real challenge, not least because space to swing out was at a premium.

Bluetooth connectivity Cruise control

EXPERT

VIEW

Neil McIntee, editor of VansA2Z.com

VERDICT MERCEDES-BENZ is famous for reliable equipment and this van really was a joy to drive, but less of a joy to park. This is a great van for retailers out in the country, but for inner-city stores, those tight manoeuvres will always be a challenge. If you’ve got more than one shop, you should be able to fit in a wholesale top-up shop for several stores, but if you’re a smaller operation, you may find that you don’t need that much space.

“POWERED by a 163hp 2.1l turbodiesel, the Mercedes-Benz Sprinter 316 is a prime example of a latest-generation panel van. Rear-wheel drive, it comes with a six-speed manual transmission as standard, but the seven-speed automatic option is well worth considering, especially if the van’s main use is around town. “Three wheelbases are up for grabs – medium, long and extra-long – with load space ranging from 9.0m3 to 15.5m3 and payloads starting at 1,014kg. “Kitted out with the latest driver comforts, infotainment and active safety features, the Sprinter is highly recommended.”

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23 APRIL-6 MAY 2019 betterRetailing.com

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PROFILE

23 APRIL-6 MAY 2019 betterRetailing.com

RETAILER PROFILE FERHAN ASHIQ PRESTONPANS VILLAGE STORE

‘I HALVED MY AISLES AND DOUBLED PROFITS’ PRIYANKA JETHWA IN August 2018, Ferhan Ashiq decided it was time to re�it his Prestonpans Village Store, to match modern consumer trends, in a move that saw him halve the number of aisles, but double his pro�its. The re�it was crucial, as from 2014, Lidl became more notorious in the area and sales started to decline. Ferhan says despite the chain having been there for six years prior, as it gained national press, more shoppers turned their eye to the discounter in favour of his store. “We made a decision to either re�it or sell up – at some point you have to do something. One of the major things I wanted from the re�it was for the shop to look brighter and more spacious,” he explains. With some rearranging of categories and knocking down of walls, the store upgraded from a 1,500sq ft convenience store to a 1,800sq ft one-stop shop gleaming with an expansive food-to-go area, comprising a deli, dessert bar and an ice blast machine. “I tried to emulate Subway when it came to the deli. We sell

eight-inch sandwiches for £3 with a variety of �illings sourced from Fife Creamery,” he says. “We also serve hot crepes and waf�les, but the most popular food-to-go item has been the milkshakes and hot cookies. “The dessert bar has done extremely well overall – there is very little wastage and it’s paying for the rest of the deli counter.” But the most successful addition, says Ferhan, has been Skwishee – a giant blue ice blast machine serving three �lavours with edible straws and frozen raspberries. In the �irst week, Ferhan says it made a pro�it of £890; the second week it made £620; and by the third, it plateaued at £550. “We really pushed the Skwishee machine on Fa-

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cebook and, in my soft drinks category, it is now my number-one and numbertwo bestseller. “Although it had a negative effect on the rest of the soft drinks – for example, I was initially doing around £1,500 on soft drinks and now I’m doing £1,200 – overall pro�its have gone up,” he adds. The re�it also attracted new customers to the store, with existing shoppers who used to

ONE OF THE MAJOR THINGS I WANTED FROM THE REFIT WAS FOR THE SHOP TO LOOK BRIGHTER AND MORE SPACIOUS

come in for one or two items now �illing their baskets up. “We were ruthless in terms of range – initially, what suffered was the categories that weren’t really supplied by wholesalers, such as hardware,” he explains. “Despite having a reduced number of lines, the categories are pretty much the same, but instead of having onemetre shelves, we now have more compact shelving and only two aisles.” In February 2018, the average basket spend was £4.88, with margins of 20%. A year on, average basket spend has shot up to £5.15, with margins now at 23.38%. “If I had the space, I would have a bar area with seating, but this will require me to again go through my store to see which category is dead to then replace it,” he adds. But for now, after such a big re�it, Ferhan’s main goal is to keep things a�loat and make sure everything is in working order.

Location: Prestonpans, East Lothian, Scotland Store margin: 23.38% Average number of customers: 500 Opening hours: Mon-Sun 6am-10pm Size: 1,800sq ft

in an ice blast machine 1 Invest “Invest in a slush or ice blast machine, especially in the run-up to summer, and make sure you place it right at the front of the store to drive impulse purchases,” Ferhan says. on food to go 2 Concentrate

“Grocery is dying,” he says. “The way forward is food to go, which is a category that every retailer, no matter what size, should have a go at in a way that is relevant to their customers.”

For more pictures of Ferhan’s store, go to betterRetailing.com/ day-today-prestonpans

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and space are key 3 Lighting

“Don’t be afraid of cutting down your range and giving more space to the floor. This way, your shop looks bigger and brighter. It also helps to make your fixtures easier to shop,” he explains.

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