Retail Express - 18 May 2021 by BetterRetailing

ARE YOU F’REAL?

• ‘Perfect shops’ refused top-selling F’real milkshake machines without explanation • Even accepted candidates to miss peak summer season due to six-month installation delay

18-31 MAY 2021 STRICTLY FOR TRADE USERS ONLY

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PARCEL SERVICES ANGER

ATM RATES REFUND

CHEWING UP A STORM

Retailers cut ties with myHermes over latest wave of margin reductions

90% of businesses receive compensation a year after court case ruling in favour of indies

Why mints and gums are making a comeback as we come out of lockdown

P28-29

82% of consumers are unable to name a retailer doing a good job of reducing plastic waste*

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IMPROVING STORE SAFETY Top tips on how to protect yourself and your team 30

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CATEGORY ADVICE SECURITY

STAYING SAFE

18-31 MAY 2021 STRICTLY FOR TRADE USERS ONLY

against an increase in crimes The pandemic saw rs, but how can these be independent retaileWHITTING takes a closer look reduced? CHARLES

ILERS FIGHT BACK HOW CAN RETA E? AGAINST RISING CRIM

their till a plastic screens at the safeshould a crime to place and that they will re- permanent fixture for retailers do? We just have incident occur, it can can you ty of their team. Many FOR many retailers, it.” response and pro- are also investing in new techcalls ceive the battle. Siraj take feel like a losing There are increasing more tection from the government, nologies, such as CCTV, panic Newsagent to do justice system deterrents. Wadiwala’s Market was for the government retail, police and deserve,” says buttons and smoke increase in Burnley, Lancashire,crime, to help fight crime in they “We’ve seen a 30% of reported that the recently the victim times to what but as the recently election national president of pre-Covid was from Reddish. and while the perpetrator he police commissioner says Richard still NRFN Stuart prison, do to we are now,” caught and sent to 12-week manifestos revealed, it So, what can retailers and Kent, from Evison Village Store high the as be that to think seen appear doesn’t prevent crimes happening,those in Leicestershire. “We’ve 12 the thief does not be. past agenda as it should sentence will deter can they do should big difference in the of my to his store on the the gov- what The increase a from coming back “Retailers need Every member re- crimes occur? during the months. had near escalations. to act and tackle and doing it again. in crimes in store at the ernment staff has once and for all so prompted many “That’s the issue game.” We’ve had to up our “The peo- tail crimeworking in shops can pandemic has make protective moment,” he says. to do it, everyone dence in their work- retailers to ple who are going confi again. What have are going to do it

ARE YOU F’REAL?

• ‘Perfect shops’ refused top-selling F’real milkshake machines without explanation • Even accepted candidates to miss peak summer season due to six-month installation delay

P3 PARCEL SERVICES ANGER

ATM RATES REFUND

CHEWING UP A STORM

Retailers cut ties with myHermes over latest wave of margin reductions

90% of businesses receive compensation a year after court case ruling in favour of indies

Why mints and gums are making a comeback as we come out of lockdown

P28-29

our say

Megan Humphrey, editor

myHermes has treated indies with contempt LUMP it. Not the words you’d expect to be muttered to retailers right now, bearing in mind the year they’ve all had. But it seems some companies think it’s appropriate. Retailers were left angered and betrayed last week, following plans from myHermes to cut commission for the second time in the past two years. This time taking the cost for each parcel handled from 35p to 32p. The news has left some stores completely cutting ties with the parcel firm. I personally think such action is justified. It’s important to remember operating a parcel service during the pandemic was done by retailers as a favour to their customers, and it’s disappointing this is the way myHermes thanks them. It’s also yet another example of a giant attacking the smaller player knowing they don’t have the leverage to fight back. However, I’m pleased to see stores standing up for themselves this time around. It’s clear myHermes needs to improve communication with its I’M PLEASED partnered stores, and find out TO SEE STORES how they are coping, and what challenges they are experiencSTANDING UP ing – there really isn’t anything FOR THEMSELVES wrong with receiving some constructive criticism. If they had, they wouldn’t assume parcel volumes would offset the cut in costs like they have. Instead, they’d be aware capacity issues are leaving stores unable to cope with increased demand. This news has been tough to swallow, and I assure you we’ll continue fighting your corner in every way we can.

The five biggest stories this fortnight 01

Stores drop myHermes over latest ‘poverty’ margin cuts

JASPER HART RETAILERS have reportedly cut ties with myHermes following a second wave of margin cuts on parcel commissions. In a letter sent to partnered stores last week seen by Retail Express, the provider said it would be reducing the handling fee per parcel offered to retailers by 3p, from 35p to 32p. Invoices and payments are also set to move from a weekly to monthly basis.

The latest change means a store handling 300 parcels per week would see its annual commission fall from £5,460 to £4,992. The �irm claimed the cut would be offset by rising parcel volumes, but retailer Alex Kapadia said limited storage space would create challenges rather than opportunities. “We don’t have a huge amount of spare capacity,” he said. “I’m now considering removing the service in some or all of my stores.”

Mo Razzaq, owner of Jack’s of Blantyre in Scotland, con�irmed to Retail Express he would be opting out of his contract. “The footfall argument doesn’t work, because most customers coming in with parcels don’t buy anything,” he said. “It’s just not worth our while now. I am not willing to work for these poverty commission rates. We get £47 a week and with cuts that will only go down.” Retailer Amit Puntambekar

added: “These service companies take advantage of retailers who go above and beyond for their customers.” myHermes �irst reduced commission in 2019, from 40p to 35p. myHermes declined the opportunity to provide a response by the time Retail Express went to print. How will the margin cuts impact you? Call Retail Express on 020 7689 3357

FOR MORE RETAILER REACTION ON THE LATEST COMMISSION CUTS, SEE THE LEAD STORY ON THIS PAGE @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 3357 Features editor Charles Whitting @CharlieWhittin1 020 7689 3350 Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361 Editor in chief (maternity cover) Tan Parsons 020 7689 3353

Editor – news Jack Courtez @JackCourtez 020 7689 3371 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355 Features writer Jasper Hart 020 7689 3384 @JasperAHHart Production coordinator Sarah Jarvis 020 7689 3368

Director of sales Editorial assistant and marketing Suhara Pavithri Jayasena Matthew Oliver @suharajourno 020 7689 3367 Production editor Ryan Cooper 020 7689 3354 Sub editor Jim Findlay 020 7689 3373 Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380

Senior account director Charlotte Jesson 020 7689 3389 Account director Natalie Reeve 020 7689 3372 Account manager Adelice Tatham 020 7689 3366

Subscribe online at newtrade.co.uk/our-products/ print/retail-express. 1 year subscription: UK £65; overseas (EU) £75; overseas (non-EU) £85 Retail Express is printed and distributed by News UK at Broxbourne and delivered to news retailers free by their newspaper wholesaler. Published by: Newtrade Media Limited, 11 Angel Gate, City Road, London, EC1V 2SD; Phone: 020 7689 0600

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

CBD regulation

FOOD and drink products containing CBD are now illegal, with retailers at risk from unclear guidance from suppliers and regulators. Any ingested product containing CBD which hasn’t achieved novel food status from the Food Standards

Management accountant Abigayle Sylvane 020 7689 3383 Managing director Parin Gohil 020 7689 3375

46,191

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

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

Beer shortages

WHOLESALERS and brewers have warned of alcohol shortages in convenience ahead of the key summer trading period. This month, AF Blakemore and Parfetts communicated with customers about potential shortages on al-

cohol and impulse lines. Heineken also sent a letter to convenience wholesalers, warning of limited stock on premium beers. The issues are set to hit as restrictions ease during the summer and the Olympics and Euros are to commence.

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

Account manager (new business) Jimli Barua 020 7689 3364 Sales support executive Charlotte Brady 020 7689 3382

Agency is not allowed to remain on the market. No product has been approved by the FSA and several stores have already reported good seizures from local authorities. Experts believe more than 1,000 registrations have been made for novel food status.

PCC elections

SHOP crime is on the agenda of 20% of Police and Crime Commissioners elected in England and Wales on 6 May. Eleven of the 167 candidates who mentioned retail crime in their policies had outperformed rivals in the polls. Nearly two-thirds of these

11 were elected. The elected of�icials are David Sidwick (Dorset), Katy Bourne (Sussex), Matthew Scott (Kent), Festus Akinbusoye (Bedfordshire), Darryl Preston (Cambridgeshire), Roger Hirst (Essex) and Chris Nelson (Gloucestershire).

Retail expansion

RETAILERS looking to expand must “up their game” when presenting business expansion plans to lenders. Commenting on expansion into a second or third premises, Ed Brown, �inance consultant at commercial property expert Christie & Co,

said: “Convenience has bene�ited in places where people are working from home and we have seen a signi�icant upturn. Many retailers want to retain new customers for the future. Lenders want to see store owners have done their homework.”

@retailexpress facebook.com/betterRetailing

18-31 MAY 2021 betterRetailing.com

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

Indies left angered over milkshake rejections MEGAN HUMPHREY STORES have hit back at milkshake supplier F’real for rejecting their application for a machine despite being told they are a “perfect candidate”. In an email sent to unsuccessful applicants, seen by Retail Express, retailers were told they failed to meet “key criteria”. “Our selection process considers key criteria which must be met for a site or location to progress,” it read. “We supply our blending equipment on a free-on-loan basis, so we must ensure a sustainable investment for both parties. “Regrettably, after careful consideration, your application did not meet the requirements set and therefore will not be progressed any further.” However, several retailers were left frustrated after they had already made instore layout changes to meet the speci�ic criteria expected of them. One store owner, who wished to remain anonymous, told Retail Express they were described as a “perfect candidate” ahead of the application process. “We already had a designated area for food to go in the shop and moved our Tango Ice Blast machine to accommodate a F’real one,” they said. “Everything was in the pipeline when restrictions were eased after the �irst

lockdown, but we were then told the application process had moved to online.” After �illing out everything again, F’real rejected the application. “Ten days later, I got an email to say I’d been rejected,” the retailer added. “It’s disappointing when I’d gone through all the preparation to be given no real reason why I had failed. I even rang the head of�ice to ask, and they couldn’t give me an answer.” F’real owner Richs’ sales, marketing and UK R&D director, John Want, told Retail Express the company was forced to change its registration process after assessing its current capacity for machines. “On 19 April, we launched a new online process and invited retailers to register their interest to become a F’real partner,” he said. “We are pleased to be inundated with responses, further demonstrating the popularity and success of the brand within the convenience channel.” When asked to outline the criteria stores needed to meet to secure a machine, Want con�irmed: “The F’real package is a signi�icant investment for us and each store, so we look at a number of factors before accepting or declining any registration. “This includes a look at the customer base of each store and whether it matches our target demographic of young adults, whether the

express yourself “THERE have always been concerns when I reopened again in January. I was stricter with following in-store restrictions than I was previously. I made sure every customer who came into my store had a mask. Also, if someone did not have a mask, rather than getting into any arguments or fights, I gave them a free mask. I believe this was more sensible than arguing and losing a customer.” Manish Mehta Williams, William’s News, Streatham, London

GOOD WEEK MITAL MORAR: The Manchester retailer opened the doors to his chic two-story-tall General Store MediaCityUK site last week. Located near the set of Coronation Street, the shop offers local brands, a coffee shop, an alcohol emporium, street food vendors and refill stations. Co-op may be Corrie’s official sponsor, but it will be Morar’s store that’s the talk of the cobbles. CRIME: The Police, Crime, Sentencing and Courts Bill outlined in the Queen’s Speech last week will introduce tougher punishments for violent offenders. Trade groups including the ACS, BRC and NFRN hope to convince policing minister Kit Malthouse to add new offences for attacking shop workers into the bill, overturning the Conservative Party’s current opposition to new laws to protect retail staff. Go to betterRetailing.com and search ‘Queen’ for the full story

BAD WEEK PAYPOINT: Store owners vowed to drop the service after those using the firm’s PPOS service were hit with a new £45 monthly charge. The company said it had “overlooked” several stores when a fee was introduced in 2017. PayPoint said stores would be allowed to exit their contracts rather than pay the fee. store will be able to meet our daily cup sale target and �inally whether it is a genuine ‘drink to go’ destination, complementing other hot and chilled branded drinks they already stock. “We appreciate that stores continually evolve their offer and retailers are always welcome to reapply if their store offer changes.”

the column where you can make your voice heard

The news came in the same week previously accepted stores were told to expect machine installation delays of up to 20 weeks, meaning they will miss out on sales over the upcoming summer trading period. The email sent to retailers blamed Covid-19. “We are doing everything we can to try and improve

these timelines, however, due to the effects of the pandemic and the issues with supply of parts from across the globe, it is out of our control,” it read. Have you been rejected for a F’real machine? Call Retail Express on 020 7689 3357 to tell us how this will affect you

SNAPPY SHOPPER: The delivery platform used by independents is monitoring its partnered stores online and using exclusivity clauses to force them to drop any rival online ordering sites they are found to be working with. Industry experts criticised the terms as “anticompetitive” and harmful to its retailer customers. Go to betterRetailing. com and and search ‘Snappy Shopper’ for the full story

What were your concerns reopening after being closed during the pandemic?

“My store was closed for three months because I caught Covid-19, that’s why I had concerns over whether my customers would return when I reopened because they may have started shopping elsewhere. With my store set to reopen soon, I was worried about whether they would return. I got a lot of messages from customers who knew I was ill, which I appreciated.” Ravi Raveendran, Colombo Mini-Mart, Wembley, London

“Since Easter, because schools have opened as normal, we began to reopen our store for normal hours. As the lockdowns continued and we received the screens, masks, and gloves, we started slowly reopening our store for longer. At first, we were just open in the morning to do the newspaper rounds, but then during the second lockdown we decided to open for half a day.” Dilip Patel, RM Terry’s Newsagents, Amersham, Buckinghamshire

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

Dilip Patel

NEWS

Stores receive ATM rates refunds MEGAN HUMPHREY THE majority of independent stores have now been repaid ATM business rates they are owed, following a legal ruling. The news comes nearly a year after the Supreme Court ordered councils and ATM providers to remove and refund the separate rates payable on external-facing machines since 2010.

At the time, Altus Group’s head of UK business rates, Robert Hayton, said the decision and subsequent payments would “bring closure” for many retailers. NFRN national president, Stuart Reddish described the move as a “tax lifeline” for stores. Rates specialist Collier’s International told Retail Express this week that 90% of businesses have received their

ATM business rates refund. “We are just waiting for approximately 10% left to be refunded, and we expect to receive this very soon,” said a spokesperson. Over the past decade, retailers were made to pay tens of thousands of pounds in bills either to their local authority, or to their ATM provider, which, in turn, used the funds to pay the local authority. After the trial, experts

warned stores to expect delays in refunds. The wait for independent retailers was reportedly longer because they had paid the bills to machine operator Cardtronics rather than direct to the council. Stores would only be paid once Cardtronics had been compensated by their local council. Londis retailer Steve Bassett had paid out a total of £34,000 to his ATM provider, Cardtronics.

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However, Jacqui Dales, owner of London Road Bakery in Lincolnshire, confirmed she got her money back.

“We received ours some time ago,” she said. “I didn’t even have to ask for it, which was a nice surprise.”

Footfall on the up VISITS to bricks and mortar stores have increased by 3%, for the first time in a year, according to new data. Research firm Nielsen confirmed the rise took place in the last four weeks ending 24 April, a significant boost compared to last month’s 19% decline.

The change has been attributed to the easing of lockdown and the return of customer confidence. In addition, it was reported several categories that suffered most during lockdown also experienced growth, including fresh goods and deli (28%), and bakery (15.5%).

FAKE CASH NOTE RISE WARNING

RETAILER Eugene Diamond has warned stores to be cautious of a new wave of fake banknotes circulating in Northern Ireland. As a result, Diamond, owner of Diamond’s Newsagents, has invested in a polymer note checker. “Note checkers are the answer,” he said. “I’ve had for one years to check paper notes, but I’ve just purchased a new PolyCheck one. It seems to

highlight the watermark a lot better. I got it online for £18 – it’s been a great investment.”

Cutting crime with AI FACIAL recognition provider Crucial has partnered up with independent stores to cut antisocial behaviour. Rav Garcha, of Nisa Hockley in Birmingham, installed the CCTV in his shop this month. “If we have photographs of a shoplifter, we can upload this

to the system and the technology will use software to recognise them. Our staff will be immediately alerted through notifications on an app.” The system can also tailor promotions on digital advertising screens targeted at certain customers.

18-31 MAY 2021 betterretailing.com

New checks for track and trace MEGAN HUMPHREY RETAILERS risk being unable to buy tobacco unless they check their track and trace codes are still active. Stores have eight weeks to check online and notify system operator De La Rue of any codes not recognised. Last week, HMRC announced new checks on the system from 3 May to 27 June 2021. Store owners selling tobacco have an economic operator ID code for their business, and a facility ID code for each shop. Over the next eight weeks, any codes that aren’t recognised by the track and trace system will generate a warning, allowing businesses to investigate by logging them with ID issuer De La Rue on its website. At the end of this period, messages containing codes that fail the new checks will generate an error message. Retailers that receive one of these must take action to correct the issue before being able to continue purchasing tobacco from wholesalers. ACS chief executive James Lowman said he welcomes the extra support for stores.

“We have worked extensively with HMRC to support retailers with the implementation of the tobacco track and trace system since its introduction in 2019, and we hope that this is another step toward only legitimate businesses being involved in the tobacco supply chain,” he said. When asked what advice Imperial Tobacco had for stores during the check period, a spokesperson urged: “We would encourage all retailers to ensure that they have registered for a valid ID

code. If they have any questions, then they should ask their Imperial representative to avoid any possible disruption to supply.” Track and trace came into force in 2019 requiring suppliers to place unique codes on packs, outers, cases, and pallets of tobacco manufacturers from 20 May to help detect illicit trade. The codes are processed from supplier to wholesaler, but retailers aren’t required to scan the codes into their store or at the point of sale.

Illegal tobacco is damaging your local community, funding organised crime and undermining local businesses. We all have a role to play to combat the issue. Don’t be complicit in the illicit trade. Visit JTIAdvance.co.uk/DontBeComplicit

Anyone with information about this type of crime should

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contact HMRC’s Fraud Hotline on 0800 788 887

visit our website to find out more on

or visit www.jtiadvance.co.uk/DontBeComplicit

how illicit tobacco is affecting your area.

Kellogg's Merlin Retail Express Trade Advert 260x339mm Apr 21 HIGH RES.pdf

23/04/2021

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PRODUCTS

Focus on functional energy, says Britvic PRIYANKA JETHWA FUNCTIONAL varieties could potentially increase soft drinks sales by £812 per store if retailers get their ranges right and focus on the segment. This is according to Britvic, which cited 37% of people are now interested in premium soft drinks with added bene�its. This encompasses drinks that emphasise vitality and gut health, for example. It said the segment in total is worth £240.1m, and shoppers are willing to pay more than double the average price for a premium soft drink with added bene�its compared to a regular soft drink, and 34% more than a single standard drink, which is already priced at a premium. To take advantage, the supplier added retailers should group products by

‘functionality’ to drive the segment forward and make it easier for shoppers to browse the selection and shop by need state. Meanwhile, other stats revealed the top soft drinks segments last year were energy, cola, mixers, lemonade,

squash, �lavoured carbonates and fruit juice. In contrast, categories that saw sharp decline included plain water, glucosebased drinks, water plus, juice drinks, sports drinks, smoothies, and iced coffees and iced teas.

WKD is to be the of�icial alcohol partner of ITV2’s reality TV series Love Island. This will comprise TV, cobranded packs and prizes, alongside social media and digital advertising throughout the series, which is set to air this summer. The campaign will air across the upcoming series using the strapline: ‘WKD coupled up with Love Island; Love it!’. The on-pack branding will appear on 700ml bottles of WKD Pink, available in standard and £2.99 pricemarked packs. Meanwhile, a co-branded on-pack offer will feature on core WKD multipacks, offer-

ing thousands of opportunities to win Love Island and WKD merchandise, includ-

ing the show’s popular personalised water bottles that feature the star’s name.

WKD couples with Love Island

sponsored

Win £100-worth of Nordic Spirit NORDIC Spirit has partnered with Retail Express to offer �ive retailers the chance to win £100-worth of stock. Now more than ever, smokers and vapers are looking for convenient nicotine alternatives for when smoking or vaping might not be possible. As the UK’s leading tobacco-free nicotine pouch brand, available in Mint, Bergamot Wildberry and Elder�lower varieties and in varying strengths, Nordic Spirit is a must-stock. This year, the brand also came out on top in the Product of the Year awards.

To enter, head to betterRetailing.com/ competitions

Four-pack RTD cans of Lambrini LAMBRINI is growing its ready-to-drink (RTD) range with a four-pack format, available across all four �lavours – Cherry, Rhubarb, Mango and Strawberry. The 4x250ml pack formats (RRP £5) follow the launch of the Lambrini RTD range earlier this year, and have been designed to help retailers tap into growing consumer demand for convenient formats. The brand is also investing £500,000 spend in advertising during the summer months, spanning outdoor and consumer titles. Graeme Sharp, brand manager at Lambrini, said the new four-pack format is a way for retailers to trade

customers up to make a bigger purchase.

WARBURTONS has revealed its latest TV advert, ‘It can wait’, starring Hollywood star George Clooney. The new 60-second ad premiered on ITV 1 primetime earlier this month, and follows past ads cameoing Robert De Niro and Sylvester Stallone. It will also run across social media. In this ad, Clooney interrupts Mr Warburton by

calling, to which he tells his receptionist that Clooney can wait while he �inishes his toast. Jonathan Warburton, chairman of Warburtons, said: “We are thrilled to have George Clooney star in our campaign. Video calls have become part of normal life for so many of us during the past year, but George Clooney popping up on screen was a surprise.”

18-31 MAY 2021 betterRetailing.com

Pepsi Max celebrates UEFA partnership TO celebrate its continued sponsorship of the UEFA Champions League, Britvic is launching an on-pack promotion for Pepsi Max. It will offer more than half a million customers the chance to win instant cash via a QR code, to the value of £10, £20 or £100. Pepsi Max will feature top football stars on each promotional pack and, for the �irst time, will feature a female footballer on-pack, following sponsorship rights being extended to the Women’s UEFA Champions League and wider women’s game. The promotional packs are available until the end of July, in take home and on-the-go

formats, including 330ml cans, 500ml and 2l bottles.

UNILEVER is relaunching its clothes conditioner brand Comfort with new formulas, pack design and a £5.8m campaign. When it comes to formula, the brand is adding ‘pro�ibre technology’ to its Ultimate Care range (RRP £2-6), which is designed to protect clothes from damage, such as colour fading, bobbling and shape loss. The Ultimate Care bottles are made from 100% recycled plastic and they are also recyclable. Nadine Slyper, homecare brand experience director at Unilever UKI, said: “With the ambition of accelerating Comfort’s position within the clothes care market, the

rebrand will be supported through a £5.8m campaign beginning this month.”

TAPPING into growing demand for low- and no-alcohol options, Brothers Cider has launched Toffee Apple Alcohol Free cider. The new cider is at 0% ABV and is glutenfree and vegan, and will be available in 500ml bottles. The supplier said as the best-known Brother’s �lavour, Toffee Apple is in growth with sales increasing by more than 50% compared with last year. It added 43% of people are also now more aware of alcohol-free cider compared with 32% in 2020. It follows the launch

of its Pink Grapefruit, Honeycomb and Cloudy Lemon varieties in March.

Unilever relaunches Comfort brand

Warburtons’ new Alcohol-free cider star, George Clooney from Brothers

PAID FEATURE ENERGY ADVICE

GET ACCURATE ENERGY BILLS WITH SMART METERS

18-31 MAY 2021 betterRetailing.com

In partnership with

Avoid estimates and only pay for what you use. Ask your energy supplier if you are eligible for a smart meter

ENERGY EFFICIENCY THE Covid-19 pandemic has been incredibly challenging for businesses across Great Britain. As firms begin opening up amid continuing restrictions, many are assessing their financial situation and focusing on how to operate in this difficult new trading environment. In these uncertain times, many businesses are looking for ways to save money and maintain a healthier bottom line. The good news is that getting a smart meter for your business is a small change that could make a big difference. Smart meters are a great way to gain more control and understand how much energy you’re using. Since energy is a key expense that businesses factor into their outgoings, identifying ways to reduce your consumption could help you save money. Smart meters are available for many businesses. Depending on your circumstances, your smart meter could come with an in-home display, which will enable you to see up-to-date consumption in pounds and pence, making it easier to visualise how much energy you actually use. In fact, some business owners who have had one installed said it highlighted areas of spending they weren’t even aware of. This could give you the information you need to help reduce your consumption and therefore save money. On top of that, smart meters can help save you time. They can automatically send meter readings to your supplier, so you no longer have to. That’s one less thing on your to-do list. Your energy supplier will be ready to fit your smart meter once your eligibility has been confirmed. They will arrange a date and time that is suitable for you and your business requirements. A trained installer will then call round to your premises and fit your smart meter, and after the installation process is complete, they can show you and your staff how it works and answer any questions you might have about it.

Contact your energy supplier about eligibility for your business.

OPINION

DON’T MISS THE 28 MAY ISSUE OF RN

Some photos on this page were taken prior to the Covid-19 pandemic

RETAILER OPINION ON THIS FORTNIGHT’S HOT TOPICS

What do you think? Call Retail Express on 020 7689 3357 for the chance to be featured CHRISTMAS: Has the pandemic affected how you’d usually prepare? “DURING previous years we have done presale, but we may not do that this year. We lost a lot of products last Christmas, so I don’t think we will invest as much because lockdown rules may relax and customers may choose to shop at supermarkets instead.” Anita Nye, Premier Eldred Drive Stores, Kent

Store advice – shop layout: how to make the most of the space in your store and successfully signpost products

“I HAD Covid-19, and since recovering, I’m very cautious and strict with following in-store restrictions, in which I make every customer wear a mask. My customers are still worried about coming into my store as they know I had the virus, so I’ll be keeping restrictions for a long time.”

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Manish Mehta, Williams News, London

“WE will be keeping in-store restrictions in place until the government legislation changes. The restrictions we have in place are allowing limited people to enter, masks should be worn and social distancing is in place. We are likely to keep the shields around the counter for safety reasons.” Amit Puntambekar, Ash’s Shop, Cambridgeshire

HOME DELIVERY: How are you sustaining the service? “WE delivered some bits and pieces, but because we are strictly a newsagent, we do not expect our paper boys to deliver groceries. Our aim was to only deliver mostly to the vulnerable, but our delivery services are not in demand any more.” Dipil Patel, RM Terry’s Newsagents, Amersham

“HOME delivery has slowed down a lot, but I am hoping to expand my service by joining an app. I am still researching into which ones are trustworthy. Now, we do deliveries over the phone, so joining an app will increase the amount of home deliveries we can offer.” Anonymous retailer

I am hoping to expand my service by joining an app LOCKDOWN: How will the reopening of indoor venues affect you?

The best independent retailers stay ahead by reading RN each week. Do you? ORDER YOUR COPY from your news wholesaler today or contact Kate Daw on 020 3871 6490

Sam Coldbeck, Wharfedale Premier Convenience, Hull

Covid-19: How long are you planning on keeping in-store restrictions?

Ready-to-drink alcohol: the rise of RTD and an exploration of the opportunities within the cateogry

THE LEADING TITLE FOR NEWS AND CONVENIENCE RETAILERS THE LE ADING ILERS TITLE E RETA FOR NE ENIENC WS AN CONV D

“WE have needed to consider upping our stock levels this year. Last Christmas, we sold a lot more alcohol and tobacco than we normally would because pubs were closed. We are planning as much as we can by comparing the outcomes we had last year.”

We are comparing the outcomes we had last year

PLUS

D WS AN FOR NE TITLE ADING THE LE

18-31 MAY 2021 betterRetailing.com

We have become the hub of our community

“THE reopening of indoors “SINCE lockdown has eased has brought so many more considerably, we noticed that customers to our store – we the high street in Camberley, are very involved with our where my store is located, has community and have become had a rise in footfall over the the hub and centre of it. past two weeks. This began Therefore, when lockdown at the end of April and has eased, we have gained the bigcontinued to increase by 50% gest customer base that we’ve compared to during lockdown. The warm weather has helped.” probably ever had.” Dipak Shah, H&R News, Camberley

Amrit Singh, Nisa Local High Health, Walsall

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LETTERS

18-31 MAY 2021 betterRetailing.com

BAY BASHIR

Letters may be edited

Some photos on this page were taken prior to the Covid-19 pandemic

Belle Vue Convenience (Go Local), Middlesbrough

Look after your team and they’ll look after you

‘They just close ranks and do what’s in UPS’s interest’ WE have been an access point for UPS for more than 10 years, and they have suddenly just stopped working with us because of one of their drivers. The driver would refuse to put the new shop name on his slip when leaving cards for customers to collect their parcels from my shop. We changed names, and, after being patient and waiting for him to do a simple task, this didn’t happen, even

six months after. We even offered to stamp his slips. We bought him a stamp and tried to do everything possible to make the change happen, but the driver refused. We then raised a complaint with our area rep, and he forwarded it to his boss, Philip Laughlin, who since 11 March 2021 to today’s date (29 April 2021) has failed to look into, or even try to resolve, the complaint.

If you are looking at being a UPS access point, just remember you’re working for them, and none of the drivers like coming to the shops. If there is an issue, you will be the ones to be erased without any thought or consideration given to what you may have done for them. The number of people with an issue with the driver is ridiculous, but instead of looking into it and dealing

with complaints, they just close ranks and do what’s in UPS’s interest. Now my store has been blacklisted, and UPS won’t deliver my parcels to me.

DA Shop, Worcester Rd, Cheadle Hulme, Cheadle

A spokesperson for UPS responded: “We can con�irm we have suspended our service at this particular location.”

COMMUNITY RETAILER

OF THE WEEK

WIN £50-worth of Whitley Neill Gin

RETAIL Express has teamed up with Whitley Neill Gin to give retailers the chance to brighten up their gin ranges this summer with £50-worth of stock. The prize will include a variety of its bestselling gins, including Whitley Neill Rhubarb & Ginger – the UK’s number-one premium gin.

TO ENTER Fill in your details at:

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

Ken Singh, BB Superstores, Pontefract – @NevisonBb

‘Raising money for Williams syndrome’

MY brother and I are always looking at different ways we can support the local community and his post this month about raising money for Williams syndrome on Twitter is one of them. He is in charge of overseeing our posts on Twitter, and I look after Instagram and Facebook. Social media is a good platform because it allows us to reach a wider audience. Sometimes we like to do something different such post a music video related to a cause we’re supporting. My brother’s voice is better than mine, so I leave him to it. I usually pick a charity that’s closer to the local community, while my brother likes to highlight and support issues further out.

IT’S been a strange 18 months, and things aren’t about to just go back to how they were. It’s the way things are at the moment. We have to take things as they come, and not try to plan things too far ahead. Things are changing quite dramatically, so you can’t settle into any kind of pattern at the moment. Who knows Each issue, one of seven top whether customer retailers shares advice to behaviours will make your store magnificent go back to being the same as they were before the pandemic? It’s mad to make big predictions. Some orders are taking longer than expected to arrive, and equipment is hard to come by for certain industries. We can’t grumble; we’ve been lucky. Footfall has been down, but basket spend has been up, so my challenge now is to get the numbers back while keeping spend up as well. Hopefully they’ll keep coming in – we’re competitive and we have a good range. We also have great customer service, and that’s worth more than price in many ways. People want the shop to feel welcoming. We do what we can and want to go even further, which requires training and looking after our staff. I’ve always been a big investor in staff training. They’re on the front line, and are the best investment you can make. They’re in the best place to make the most out of everything that’s going on. No one has let us down. We’d love to keep them on board, and it’s been great that we’ve been able to keep everyone. We’ve made sure to look after them during the pandemic. We put up screens straight away to keep them safe, as well as hand sanitiser and all the things you’d expect. Their safety is paramount to me. Also, if they feel looked after, they can provide good customer service. Those screens are a great thing and we want to extend them. They’re a great safety measure and you ask yourself why you didn’t have them in the first place. I’ll be investing in them to make them permanent.

Get in touch

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

#retailtogether

NEXT SESSION

Thursday 3 June 4.30pm

We know that it’s been one of the most challenging years in independent retail with the way you need to run your stores having changed almost overnight. We also know that with the lack of physical events taking place, there’s less of a chance to connect with like-minded retailers. That’s why we started #retailtogether, an informal digital networking event to help independent retailers share experiences, discuss issues and ideas, and see a few friendly faces. Join us every other Thursday at 4.30pm

For more information, contact Samantha Gunston 020 7689 0500 / @samanthagunston

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#IAA21

IT’S ANYTHING BUT AVERAGE

THE IAA’S TOP 100 INDEPENDENT RETAILERS IN THE UK Have you taken a look at this year’s Top 100 independent retailers?

View our interactive map at betterRetailing.com/top-100 to see the retailers who are driving the industry forward

S S E RVIC E E

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A ST

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2020/21 UK & IRELAND

Without the IAA we wouldn’t be at the level we are now. It’s a great way to learn from others – I use their examples to help make improvements to my store. Justin Whittaker, MJ’s Premier Store, Royton – IAA Digital Engagement Category Star 2019

For your chance to make next year’s Top 100 list, register your interest in taking part in the IAA today – visit betterRetailing.com/top-100 or call 020 7689 0500

FORECOURT FOCUS

Overcoming the challenges of a new forecourt p24

Hand car-wash licensing pilot launches DARYL WORTHINGTON A HOME Of�ice-funded licensing pilot project will test the effectiveness and value of introducing licensing for car-wash businesses. The pilot is based on Responsible Car Wash Scheme (RCWS) accreditation for hand car washes to ensure they “treat employees, customers and the environment fairly”. Nottingham Trent University (NTU) will provide independent evaluation of the pilot, supported by the Gangmasters and Labour Abuse Authority (GLAA), the Police, the Health and Safety Executive, HMRC, the Environment Agency and the charity Unseen, which aims to raise awareness of, and put an end to, modern slavery.

Alongside the Home Of�ice, a consortium of other RCWS supporters including Tesco, Sainsbury’s, Morrisons, Asda, BP and the Car Wash Association have contributed to funding the pilot. “With car washes now reopening after lockdown, risks are resurfacing with regards to violation of labour, employment, health and safety, and environmental regulations,” said Teresa Sayers, managing director RCWS. “RCWS aims to ensure compliance, improve standards and give consumers con�idence that they are choosing a fair car wash, by accrediting businesses that adhere to the RCWS Code of Practice. With Home Of�ice backing and an independent evaluation, this has the impetus it

needs to work on a nationwide level.”

Exploitation Studies from NTU suggest there are between 6,000 and 7,000 hand car washes in the UK. According to an RCWS statement, while some of these operate lawfully, it’s been consistently identi�ied as an industry where workers are at risk of exploitation. These unlawful businesses also create unfair competition for legitimate car washes. “While we recognise that some businesses aim to operate irregularly, requiring enforcement, there are those that may need assistance and education to raise their awareness of what they need to do to be compliant,” said GLAA director of strategy Darryl Dixon. “Building a compliant in-

dustry, prevention, education and enforcement go hand in hand to provide a level playing �ield for legitimate businesses and reduce the risk of exploitation of workers.” Ian Clark, professor of

Ascona Group adds three Concerns over access forecourts to portfolio to cash plan FORECOURT operator Ascona Group has taken its portfolio to 59 sites with the acquisition of three service stations in west Wales and Somerset. In west Wales, Ascona has acquired the Texaco-branded Manordeilo Service Station, and a Shell-branded Forge Service Station in St Clears. Both sites will include a Nisa fascia store. The Pembrokeshire headquartered forecourt operator now operates four sites along the A40 leading into the county, the Manordeilio

and St Clears sites joining Ivy Service Station and Tenby Road Service Station. In Somerset, Ascona has added the Texaco-branded Central Motors Service Station in Chard to its burgeoning portfolio. “With these sites now part of the Ascona family, we look forward to upgrading them with our combined fuel and retail offering and serving the local communities of Pembrokeshire, Carmarthenshire and Somerset,” said Ascona CEO Darren Briggs.

THE Petrol Retailers Association (PRA) has called on the government to revise its access to cash plan, questioning how businesses would �inancially bene�it from offering a transactionless cashback service. In April, the Financial Services Bill was amended to let consumers get cashback without having to make a purchase. “These plans should also not be used as a pretext for justifying slashing the number of ATMs. Between January 2019

and September 2020, the total number of ATMs in the UK fell from 62,967 to 55,674. If not revised, this measure will only fuel that decline,” said PRA chairman Brian Madderson. “The government has not addressed the major security risk of our members holding larger �loats. “This problem is particularly acute at rural sites where a greater stockpile of cash, combined with lengthy police response times, would signi�icantly increase the chances of armed robbery.”

work and employment at Nottingham Trent University, said: “The government recognises that an accreditation scheme designed to promote compliance and drive up standards for hand car washes can play a role

in preventing exploitation of workers and water pollution in this sector.” Previous RCWS initiatives have included a voluntary accreditation scheme working with supermarkets and national network operators.

April marks sixth month of rising petrol prices APRIL saw petrol prices rise for the sixth month in a row, according to RAC Fuel Watch data. Unleaded increased by 0.89p to 127.19p per litre, ending the month at its highest price since January 2020. Diesel also increased, by 0.62p, ending the month 129.73p per litre – its �ifth successive monthly increase. These increases mean it now costs £69.95 to �ill a 55l family car with petrol, £71.35 for an equivalent diesel car. According to the RAC, the

Have you made any big changes in your forecourt that have grown your sales and profits? Let us know on 020 7689 3390 or at editorial@newtrade.co.uk

rise follows the cost of a barrel of oil rising $4.82 in April to $66.93, meaning wholesale prices are also now on the rise. “April marks six months of rising petrol prices and sadly there’s no end in sight as oil is getting perilously close to hitting $70 a barrel – something we haven’t seen for more than two years,” said RAC fuel spokesman Simon Williams. “If oil breaks this threshold, it will inevitably spell more bad news for drivers at the pumps.”

FORECOURT FOCUS PROFILE

‘Some staff are scared to talk’ JASPER HART IT has been a whirlwind 18 months for Pushpa Bandi. At the start of 2020, she and her husband, Ramesh, decided to stop running four 24-hour forecourts across Cornwall as part of a franchise, and move to Leicester to take charge of a 250sq ft independent shop with a Texaco station. 2020 made this fresh start even trickier. “For two months, we were OK, then Covid-19 hit,” she says. “We struggled, but we came out of it finally, and we wanted to do a brand-new shop project.” After

commencing a refit in January with the aim of remaining independent, Pushpa shifted course in February and decided to go with Budgens. “We like the products, the rep came to our home and showed me a demo, and I was impressed.” She now heads up a 1,600sq ft store which opened at the start of April. It has not been without its teething problems: the opening day was marred by electricity outages, Budgens only managed to send out 5,000 leaflets to local properties alerting them of the new store two weeks after it had opened, and there was food

wastage due to unsold stock, a lot of which Pushpa was fortunately able to give to a charity. This means making any direct comparisons to last year’s trading, as well as the year before, is very difficult. “We have to concentrate because we have a lot of stock that we’re not selling because it’s a big shop, there are too many jobs to do. I have a paperwork backlog and there isn’t a large residential area near our store, but we’re doing OK and we’re happy. “We’ll see more customers coming in, and whatever they request, I will stock up on.”

Pleasing locals

Customer service

Promoting the forecourt

“WE get about 50% passing trade and 50% local. Most locals have told us they’ve been coming for the past 30-35 years, and we get regulars every day for coffee and sausage rolls,” says Pushpa. “The locals acknowledge what we’ve done. The previous owners were here for 55 years, and they didn’t invest any money in the shop or forecourt. “We’ve moved the MOT round the back so we occupy all the front space as a shop, and each customer appreciates our hard work with the shop, and sales have gone up. We’ve got a neighbour who is a brother of the previous owner, and he was shocked when he came in – he was so impressed.” Even while the refit was ongoing, the shop remained open by being moved into a metal container, which Pushpa says was even larger than the original store. “We set up tills and a pump controller, and we left the door open even with snowfall – the customers highly appreciated it.”

Pushpa is looking to take on more staff, but only if they’re prepared to involve themselves in the business instead of turning up for their shift and doing the bare minimum. “Some are scared to talk, or don’t upsell because they can’t be bothered,” she says. “I tell them if you just work like a cashier, taking money for goods and saying hello and goodbye, any child can do it. You need to talk to the customer, be polite and presentable, and ask for feedback. If customers don’t like anything, they need to tell us – if they are happy, we are happy, if not then let us know and we can sort it out.” Pushpa takes a hands-on approach, manning the second till in the store and paying close attention to how her staff interact with customers. It’s especially important as the store has so many long-standing local customers and has undergone such drastic changes in the past year and a half.

WITH the store having undergone so many changes, Pushpa has found it hard to find time to promote online. “Someone from Budgens is going to give me training, and I know it’s important and helpful, but for me it’s wasting time at the moment,” she says. She aims to give a new younger staff member more responsibilities on this side of the business. While she says some customers have posted about the new store on Facebook, she wants to make sure that the store and forecourt are offering everything possible, so that there’s no risk of any reviews giving the wrong impression. Before she promotes the store, she wants to finalise her forecourt improvements, which include adding Supreme diesel and Unleaded fuel through two spare unused tanks, as well as adding a card machine for one pump for latenight drivers to use while the store is closed, and an electric charger, to cater to a growing market.

FORECOURT FOCUS FEATURE

18-31 MAY 2021 betterRetailing.com

SYMBOL AND FUEL BRAND ALLIANCES Symbols and fuel groups have changed over the years. JASPER HART asks retailers what to consider before making a change

WHAT’S THE APPEAL? “IN RETAIL, there are a lot more options and migration,” says David Wyatt, of Costcutter Crawley Down in West Sussex. “You wake up and someone has bought someone nowadays.” Picking a symbol to go with your store can be a tough decision, especially if you want to pair it with a forecourt. This is becoming even more

important as lockdown lifts and a summer of holidaymaking within the UK is expected. Symbols have an immediate effect on customer perceptions before they even step inside the store, and can be a crucial part of transforming your site from a forecourt that sells groceries, to a convenience retailer that also sells fuel.

FUEL YOUR GROWTH FUEL is understandably less of a sure thing when it comes to growth, but that doesn’t mean that forecourt retailers should neglect it. For David Charman, of Spar Parkfoot in West Malling, Kent, his relationship with BP for his fuel relies on a mutual understanding of where he wants his business to thrive. “The shop is the most important part of the business. I don’t want cars queuing for fuel, I want them queuing for parking spaces for the shop.

Our fuel sales have remained fairly static, Covid-19 excepting, and fortunately BP understand that their supply of fuel to my site is dependent on the whole business being successful. “They want very much to provide the right fuel solution to the area, and as it’s a premium product we wouldn’t want to go for a lesser brand. “That consideration also depends on what the competition is around you.”

The decision of which fuel group to join is tricky, especially as the market is far more entrenched than that of retail symbols. Forecourt retailers must consider the costs involved, especially because overall road usage has declined in the past year due to Covid-19, and journeys are increasingly made with electric vehicles.

SYMBOL STAR POWER PICKING a symbol isn’t just about what you will get out of it, but about how your customer will perceive the store, with each group having a different reputation among different customers. “Blakemore said our sales could rise by 10% just by changing [from Mace to Spar], and they actually rose by 13%,” says Rachael Hock-

meyer, of Hockmeyer Motors in Lincolnshire, whose Spar partnership turns 10 this year. “We went with their plans for expanding the store and it was the best thing we could have possibly done and probably should have done a few years before.” When Goran Raven, of Raven’s Budgens in Abridge in Essex, was looking at switch-

ing his symbol, he didn’t look for examples par excellence to emulate. “We didn’t want to see what the best in the business was, we wanted to see an average store and build on top of that,” he says. “When we saw what was being offered from a consumer’s point of view, we felt Budgens fit the demographics of our customers the most.”

FORECOURT FOCUS FEATURE

18-31 MAY 2021 betterRetailing.com

CONSIDER COMPETITION WHEN choosing a symbol or fuel group, you need to take stock of who is around you. “If there are six other Spars in the area, maybe Spar is not the one to go for,” says Charman. “You also have to look at whether you want your product delivered or are ready to go to a cash and carry, which we wouldn’t want to do.” Charman has also benefitted from the leeway that Spar has given him when it comes to independent pursuits. “We

have a butcher for which we don’t buy any of the meat through Spar. “It represents a big chunk of our business, and Spar sees that as good for all the business we do with them.” Budgens also offers similar flexibility, with an exception on a 95% purchase loyalty for locally produced goods, which appealed to Raven. “It helps you stand out from the multiples, and consumers respond to it,” says Raven.

MAXIMISING POTENTIAL HOCKMEYER is a member of Spar’s Meridian and Welsh Guild, and views such proactivity as a crucial part of symbol membership. “We speak every other week because they’re trying to seek our advice about things.” These conversations allowed Hockmeyer to influence decisions around delivery schedules during the

first lockdown which enabled Spar to work in a way that helped her business continue. “It’s a two-way street. That’s why I’m in the guild, so the business gets as much benefit from the partnership as the symbol gets from us. You have to make compromises occasionally, but that’s a part of having open commu-

nication and people you can turn to.” Charman stresses the importance of a symbiotic relationship, where the shop and the symbol can draw on each other’s strengths. “It’s about explaining how you want your business to be and finding the symbol group that gives you the flexibility to act on that.”

RETAILER

VIEW

David Wyatt, Costcutter Crawley Down, West Sussex

RETAILER

VIEW

Goran Raven, Raven’s Budgens, Abridge, Essex “WE switched to Budgens from Mace three and a half years ago, the big reason being the availability of the fresh range. We go for local produce in a big way – we’ve got stuff from our local baker, local butcher, local honey, beer and crisps. “Every now and then, freebies come out. The last one was £2,000-worth of free stock for saying ‘well done’. That’s not going to go amiss, and it was all decent lines as well, not stuff that you think will sit in the back of the store and not sell. “We’ve been with Shell for 93 years, so we know very much where we stand with them, and it would be nice to be the first 100-year dealer in the UK, which both parties could benefit from. “As a big multinational, they’re slower to help than Budgens – more reactive than proactive – and that’s because of the multitudes of layers of management and decision-making that goes on.”

“I’VE been a Costcutter for 20 years, but I look at the market and speak to the other symbol groups. I like Budgens and Spar, they’re good at what they do, but I am a loyal person – I don’t like change for the sake of change. “As a longstanding retailer, you build up a relationship, so when there are problems they tend to be addressed more so, I think, than if I’d joined a week ago. I don’t have a desire to leave, but that’s not to say Costcutter can take things for granted because convenience is an aggressive market that’s changing all the time. I like SimplyFresh’s Sainsbury’s solution, so I’m exploring that. “On the fuel side of it, I have a lot of loyalty to Shell – everything I’ve seen about them in the past 28 years I’ve liked. For me it’s a no-brainer, there isn’t much to say other than Shell is the best brand, whether that be through support, or ethically – it’s all the best to me.”

Contact details Budgens: joinbudgens.co.uk, 0808 178 8644 Spar: spar.co.uk/own-a-store Costcutter/Mace: costcuttersupermarketsgroup.com/join-us Jet Local: jetlocal.co.uk/family

What to Stock: the ultimate product guide for independent retailers

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WHAT TO STOCK

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Don’t miss our essential What to Stock edition of The Retail Success Handbook Compiled using exclusive EPoS data from 3,451 independent stores across the nation, and covering 61 core convenience categories and areas of growth, What to Stock is every independent retailer’s essential stocking guide. This year’s What to Stock has the ﬁrst comprehensive, cross-category look at how convenience has changed in the past 12 months and will show you the opportunities you may be missing out on, so you can be conﬁdent that you have the best product range for your customers.

PLUS • 1,385 bestselling products highlighted • An in-depth look at the core convenience categories, including beer, chilled and household • A look inside one of the UK’s best-ranged shops

Order your copy from your magazine wholesaler today or contact us on 020 7689 3363

CATEGORY ADVICE MINTS & GUMS

CHECKING THE IMPULSE After a quieter year on the refreshment front, retailers should balance old favourites with emerging products to drive lockdown-eased impulse sales, writes JASPER HART

STRENGTHENING IMPULSE AS the pandemic has flipped shopper trips on their heads, the humble mints and gums category, stalwart of the counter, has suffered somewhat. People have spent less time popping into local shops on their way to and from work or social occasions, and that has had an effect on the refreshment category. “My mints and gums slowed down last year, and now people are coming out again they’re going back up, but I don’t think we’ll see the

full effects until after May,” says Giresh Patel, of N&R News in Blackheath, London. Now people are getting out more with the easing of restrictions, it’s a great time to remind them of products that work as on-the-fly purchases, according to Levi Boorer, Ferrero’s customer development director. “The sugar confectionery category in general very impulsive, with most purchases unplanned by the shopper prior to entering the store. Product availability is

therefore key, with prominent spaces and PoS units helping to capture attention and consideration,” he says. “Now, more than ever, shoppers have a functional approach to their visits, and have a clear idea of the products they need before entering the store. “By having sugar confectionery products available in store, retailers can enable shoppers to pick up something extra that can give them a little treat to enjoy later.”

CORE HERITAGE ULTIMATELY, this category is powered by industry mainstays. Brands such as Extra, Airwaves and Trebor have consistently driven sales and kept many newcomers off the shelves. Mars Wrigley’s total gum portfolio is worth more than £248.6m. Within that, Extra sugar-free gum is worth more than £203m, with its core flavours Peppermint and Spearmint the top-performing varieties, with a combined worth of more than £104m. When it comes to Mars

Wrigley’s other key brand, Airwaves, 45% of consumers claim to not buy any other gum brand, says Victoria Gell, fruity confections portfolio director at Mars Wrigley. Trebor is also marking its centenary year in 2021 with a campaign called the Big 100. This campaign gives shoppers the chance to win a range of prizes worth up to £10,000, including daily £100 giveaways. It will have bespoke PoS, which Mondelez

head of trade communications Susan Nash says is crucial for such an impulsive category. “Mints is a highly impulsive category, so a campaign like Big 100, with impactful PoS, is a great way to capture shopper attention and make the mints fixture unmissable to help drive impulse sales.”

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FIRM FLAVOURS DESPITE the firm entrenchment of these brands’ core lines, there have been some attempts to inject new products into the category. Last month, Mars Wrigley built on the 2020 launch of its Extra Refreshers gum with a new Tropical flavour, citing a growing popularity of fruity gum among under25-year-olds. “Flavours are set to grow, especially as we head into summer, so it is very fitting for us to launch bottles with a new tropi-

cal flavour,” says Sasha Storey, senior brand manager for Extra at Mars Wrigley. Kim McMahon, product manager at Mentos, thinks now is a good time to drive innovation in the category, and incentivise people to return to mints and gums, after the launch of Mentos Pure Fresh Cherry Roll and a Pure Fresh Bubblefresh bottle format. “There are 30 million gum chewers in the UK, but we have seen a decline in frequency,

driven by consumer changes in habits due to reduction in travelling and commuting,” adds McMahon. “That’s why we’re investing in the category, to ensure the products are front of mind to ultimately encourage more sales at the till.” Retailers should bear this in mind, and try to balance a core range of established favourites across mints and gums while giving fair representation to any new brands that may appeal to their customers.

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Dennis Williams, Broadway Premier Convenience Store, Edinburgh “AS Westminster and Holyrood are looking to take on HFSS foods, we did a refit in September that took our mints away from the counter and put magazines there. Magazine sales are up 40%, but mint sales haven’t been affected. My mints are mostly singles, but I do sell Mentos in four-packs. “With 1,700sq ft, we have a bit of room to play with, but if you’re a small shop, it might hurt your business. Chewing gum stays on the front, and that’s steady. My bestsellers are Extra Spearmint, Extra White and Extra Peppermint, which I sell mainly in individual packs, but I also sell Extra £2 PMP tubs. “I see slightly older people take mints, and it’s more of an age mix that takes chewing gum. People buy chewing gum to take the smell of cigarettes off their breath, I have no doubt about that.”

FRESH FORMATS DUE to the impulsive nature of the refreshment category and its frequent positioning near the counter, it can be easy to quickly establish whether a product is working or not. “When something new comes out, we do try it – like Starburst Chewing Gum – and as it’s an impulse category, people will at least give it a try at the beginning,” says Zahid Sharif, of Greenend Convenience in Manchester. From this point, retailers can adjust their ranges accordingly, and, with the easing of lockdown, might find it’s a better time than ever to switch up their range. Beyond flavours, gum is beginning to show its variation in format terms, with price-marked tubs seeing an increase in some shops amid a general trend towards value

purchases in a time of economic downturn. Extra Refreshers are also available in a unique bottle format which makes the newer product stand out at the counter. “While individual packs remain essential lines for stores of all sizes, the larger bottle format is set to be one of the bestselling formats of the year,” says

Storey. “Gum bottles will be driving the growth in 2021 with 1.7% projected growth, so we recommend it is stocked alongside core single packs for maximum sales success.” However, if customers have more of a tendency towards single packs, then offering deals such as two-for-£1 can drive incremental sales.

CATEGORY ADVICE SECURITY

STAYING SAFE The pandemic saw an increase in crimes against independent retailers, but how can these be reduced? CHARLES WHITTING takes a closer look

HOW CAN RETAILERS FIGHT BACK AGAINST RISING CRIME? FOR many retailers, it can feel like a losing battle. Siraj Wadiwala’s Market Newsagent in Burnley, Lancashire, was recently the victim of crime, and while the perpetrator was caught and sent to prison, he doesn’t think that the 12-week sentence will deter the thief from coming back to his store and doing it again. “That’s the issue at the moment,” he says. “The people who are going to do it, are going to do it again. What

can you do? We just have to take it.” There are increasing calls for the government to do more to help fight crime in retail, but as the recently reported police commissioner election manifestos revealed, it still does not appear to be as high on the agenda as it should be. “Retailers need the government to act and tackle retail crime once and for all so everyone working in shops can have confidence in their work-

place and that should a crime incident occur, they will receive the response and protection from the government, police and justice system that they deserve,” says national president of the NRFN Stuart Reddish. So, what can retailers do to prevent crimes happening, and what can they do should those crimes occur? The increase in crimes in store during the pandemic has prompted many retailers to make protective

plastic screens at their till a permanent fixture for the safety of their team. Many retailers are also investing in new technologies, such as CCTV, panic buttons and smoke deterrents. “We’ve seen a 30% increase from pre-Covid times to what we are now,” says Richard Kent, from Evison Village Store in Leicestershire. “We’ve seen a big difference in the past 12 months. Every member of my staff has had near escalations. We’ve had to up our game.”

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CAN TECHNOLOGICAL ADVANCES HELP? THE pandemic saw an acceleration in the evolution of technological usage by retailers, as delivery systems and apps were introduced and interaction with customers became increasingly digital. For retailers looking to make their stores safer, technological innovations may hold some new opportunities. “Technology touches every aspect of the modern retailer’s business practise and challenges such as the pandemic have focused owners and managers on the need for tech systems that ensure customer safety. New technology such

as AI and facial recognition are all ensuring retailing is safer, quicker and more customerorientated,” says Nick Fisher, CEO of Facewatch. Richard Kent has invested in panic buttons for his staff that, when pressed, alert the company and the police and give them access to the store’s CCTV. Equipment from Verisure also fills the store up with smoke in 60 seconds. “That’s normally a deterrent and they run away,” he says. “That’s linked to the panic button, which links to the alarm company and the police. When they came in, they

found the guy and gave him a community resolution order so he can’t come near the store and he can’t put anything about us on social media.” Of course, these innovations come with up-front costs, with more than £175m having been spent by retailers on crime-prevention measures like CCTV, security staff and intruder alarms. “Taken together with the cost of crimes committed, there is effectively a 5p crime tax on every transaction in stores,” says James Lowman, chief executive of the Association of Convenience Stores.

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STAFF INTERACTION AND DE-ESCALATION ANDREW Dunning’s store, Stanwix News in Carlisle, Cumbria, is not a big one, and, as such, he knows most of his customers as they come in through the door. That meant that he was able to handle the Covid-19 restrictions and any complaints that customers had about them on a personal level. “We never brought in any hard and fast rules,” he says. “We stuck to what was required and managed to carry on trading as normal. We know our customers and that makes all the difference because you can talk to them and tell them

what you’re doing and why.” This interaction requires staff training so that they understand what they can do to spot potential problems, deescalate situations or react to something going wrong. “Being observant is key, meeting and greeting all customers, being aware of who is in the store and what they are doing will reduce opportunity for some crimes to take place. Potential thieves then know they are being watched,” says Mark Raymond, the Post Office’s head of security. “The Post Office has a num-

ber of security processes and procedures in place to ensure the safety of our network. Retailers should ensure that all of their staff are familiar with these processes and procedures and have a good knowledge of how all the security equipment works.” Fog Bandit, which fills a store with smoke as a deterrent to raiders, has successfully thwarted 49 robberies with no failures. According to Neil Christmas, sales and marketing director at Bandit UK, the knowledge that these systems are in place acts as a deterrent

in itself. He also recommends extensive staff training. “An appreciation of the risks and an internal robbery reaction plan is paramount. Staff training in implementing, monitoring and maintaining the right security systems to ensure the safety of your staff, customers and stock is crucial. “Seek guidance from police, insurers and retail associations on best-practice security guidelines. Share awareness of local crime trends and monitor national statistics through initiatives such as retailersagainstcrime.org.”

TO remind shoppers of government requirements to wear a face covering and to maintain social distancing while inside shops, the NFRN created two posters for members to display within their stores. The first poster appeals to shoppers to respect those working in shops by being “patient, kind and to wear a mask”, while the second explains why both shop staff and customers should cover up their faces while shopping. National president Stuart Reddish says: “Covid-19 has been challenging for everyone. Independent retailers have gone out of their way to support their communities by

ensuring a safe environment. In the main, customers have adhered to the guidelines, but some members have experienced hostility and frustration and, sadly, in some instances have even been subject to abuse and threats.” The posters are designed to encourage customers to treat independent retailers and their staff with greater understanding and respect, which means protecting everyone’s health and safety at all times. The NRFN welcomed the Protection of Workers Bill becoming law, and is calling on MPs to support the Assault on Retail Workers (Offences) Bill.

top tips from the nfrn The NFRN believes that adopting basic but key principles can make it easier for you and your staff to stay safe Use visual deterrents Eliminate blind spots so staff can see all parts of the shop Keep expensive items behind the till

£142m The cost of crime over the past year

1.2m

incidents over the past year

1.1m

incidents of shop theft recorded in the convenience sector

Keep cash in tills to a minimum Vary the times you visit the bank/cash and carry Keep shop windows as clear as possible so employees can see out and passers-by can see what’s happening inside Train your staff to be alert to suspicious behaviour

CATEGORY ADVICE CIGARS & CIGARILLOS

SET YOUR CIGAR CATEGORY SALES ALIGHT With cigar and cigarillo sales set to peak over the summer, now is the time for retailers to take full advantage of this enduring convenience category. JOANNA TILLEY finds out how

THE CIGAR AND CIGARILLO OPPORTUNITY RETAILERS have been reporting positively and negatively when it comes to cigar and cigarillo sales over the past year. While One Stop Woodcross owner Serge Khunkhun tells Retail Express his sales have been “very strong”, Neelam Post Office & Convenience store owner Gaurave Sood says sales have “plummeted” since the onset of Covid-19 and the closure of pubs. Although some social smokers have cut down tobac-

co purchases, this has been levelled out by more regular smokers who have upped their habit due to increased stresses and strains. Recent data from Scandinavian Tobacco Group (STG) backs up the idea that sales have largely remained level, with brand activation manager Clara Maria Endresen saying the value of the traditional cigar category has risen 2% in the past year to £198m, but declined by 3% in volume

terms over the same period. Ross Hennessy, sales vice president at JTI UK, says cigarillos are the fastest-growing cigar sector and are now worth circa £6m a month, with a current market share of 36.1%. “To capitalise on this growth, retailers should stock up on products such as Sterling Dual Capsule Leaf Wrapped, which is the number-one cigarillo brand, with 92.6% share of the UK cigarillo market,” adds Hennessy.

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TOP SELLERS LIKE most categories in retail, it is wise for retailers not to stray too far from familiar brands. This is especially important in this category as cigar smokers tend to show a high level of loyalty to brands and are not easily persuaded to try something different. Khunkhun’s main piece of advice for other retailers is to offer a range of well-known brands as cigar customers are creatures of habit, tending to stick with the likes of Castella Classic, Hamlet, Henri Wintermans and Signature. “Breaking in a new name now is really hard because of

the rules around advertising, and the only way we can promote it is by talking to people and offering it to them,” says Khunkhun. “But this is made harder with most retailers locating cigars out of sight in a cupboard or closed gantry.” From a ranging point of view, STG’s Endresen recommends convenience store owners stock the top 10 brands, which account for 90% of the total sales volume. She also adds that a new trend for retailers to be aware of is the rise in demand for medium to large cigars, an area that has grown by 75% of the total segment.

“There’s not a lot of players in this market, but Wintermans Half Corona – which accounts for 70% of sales – should be covered,” says Endresen. This opinion is backed up by Khunkhun, who says Wintermans Half Coronas have really taken off in his store after a customer suggested he brought them in. “A customer wanted a bigger cigar, and the Half Coronas were the next step up. It seems to have hit the mark quite well,” says Khunkhun. “We sell them in packs of five or as singles, and they are selling well as singles.”

THE RIGHT PRICE IS KEY WHEN plain packaging legislation was introduced in 2017, cigars and cigarillos dodged the more extreme rules, such as the requirement of plain packaging and ban on sales of 10-packs. Dennis Williams, of Premier Broadway in Edinburgh, says it’s hardly surprising shoppers are showing more interest in cigars, which is due to the simple fact they can be up to half the price of cigarettes. “Sterling Crushball cigarillos are around £4.50 a pack,

but the cheapest cigarettes are £9.60, so that’s a massive difference,” says Williams. “This is the result of being able to sell cigars and cigarillos in 10s, and I have found that the price-marked Sterlings sell very well with my customers.” Due to the increased importance of providing value for money in this category, STG’s Endresen recommends retailers stock Moments Blue, the fastest-growing cigar in the UK and second-bestselling cigar in the UK.