RURAL RETAILER SPRING 2013

Rural Retailer www.ruralshops.org.uk

Issue 21 l Spring 2013

The Journal of the Rural Shops Alliance

■ Rural retailers hit Lottery jackpot ■ The Virtual High Street ■ Payroll changes: RTI arrives

Your contacts... for more information and news...

● Rural Shops Alliance Egdon Hall, Lynch Lane, Weymouth, Dorset DT4 9DN ● Tel: 01305 752044 ● Fax: 01305 772949 ● E-mail: info@ruralshops.org.uk ● Website: www.ruralshops.org.uk

Contents...

In this issue...

3 4 5 6 10 12 13 13 14 15

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19 22 25 27

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Cover photo: Abdul Mohammed, Londis, New Pitsligo, Aberdeenshire

In My Opinion, By RSA Chief Executive Our Partners Your Action Checklist...

West End Stores: Sacrificing Dad’s Rose Garden Payroll - Important changes: Real Time Information An aging population: How should rural retailers respond?

A Message from Priti Patel MP CCTV - two useful publications Underinsurance RSA Views: New code should end ‘tick box’ regulation of age restricted products; Private members Bill to Stop Energy Contract Rollovers; ACAS Consultation on Draft Code of Practice on Extended Right Flexible Working; Select Committee Inquiry into the Retail Sector; Ready for Aging?

Camelot: Rural Retailers hit the jackpot Coffee Shops in Rural Stores: Goldmine of Millstone?

Gluten Free Products Virtual High Street: Two Companies Helping Independent Stores Provide Home Delivery

RuralRetailer ● Published by The Rural Shops Alliance. ● Printed by: Russell Press, Nottingham. ● Design: Kavita Graphics.

2 RuralRetailer ● Spring 2013 ● Issue 21

In my Opinion...

I can only stand in awe at how effective the “Hacked Off” campaign has been. In a few short months, Hugh Grant and other luvvies have managed to persuade Ed Milliband and Nick Clegg to casually set aside elements of free speech in this country, won in hard-fought battles over centuries. At the time of writing, even small publications such as Rural Retailer would be caught up in the proposed press regulations.

Producing Rural Retailer is just one part of our support for shopkeepers. We are not professional publishers. We try to write articles as if we were face-to-face with a shopkeeper.

Whilst keeping a wary eye on the laws of libel (some of the strongest in the world), if we think something is nonsense, we say so. We certainly cannot afford to have our copy checked by a lawyer charging us silly pounds per hour. If we end up with a constant threat of “exemplary damages”, which would bankrupt the RSA, then quite simply Rural Retailer will become a less interesting and useful read.

The horsemeat scandal reminds me of a case faced by a rural butcher. Asked by an undercover trading standards officer for some minced lamb, he used his mincing machine without cleaning out previous traces of beef. For this heinous crime, this upstanding family butcher was prosecuted and fined. We now have a situation where large companies have committed millions of far worse “crimes”, with not a mention of a pending prosecution. There really is one law for big companies, one for the small guy. However, on the plus side, this scandal has provided a massive opportunity for butchers and other shops selling local meats, who are able to reassure worried customers that their beef really did moo rather than neigh.

are reporting poor sales in January and February, with only a modest pickup in March.

We have no magic wand to solve the problem but in this edition of Rural Retailer we have included a couple of ideas that may just help some retailers develop new sources of income.

Rural Retailer has been published in its current form for about five years. Feedback from readers has been overwhelmingly positive but with this edition we have tried to provide a slightly fresher, more modern format. Do let us know what you think of it and, as always, do send us any ideas you may have for future articles.

Kenneth Parsons RSA Chief Executive

Visiting rural shops has been a somewhat dispiriting experience of late. Many shopkeepers

Issue 21 ● Spring 2013 ● RuralRetailer 3

Our Partners...

Retail Services Team Credit and debit card acceptance service Supply wide range of cards with great service EPos systems designed for independents Identity cards for all ages Buying and selling retail businesses

Free help to reduce electricity bills Wide variety of bags personalised with your logo H&S and fire risk support Excellent cover and competitive rates for rural retailers Electronic security systems

To obtain further information on any of these companies, please contact the RSA at info@ruralshops.org.uk or phone 01305 752044 4 RuralRetailer â—? Spring 2013 â—? Issue 21

Your Action Checklist for this issue...

p p p p p p

1. MAKE SURE YOU ARE READY FOR RTI PAYROLL REPORTING 2. CONSIDER STOCKING GLUTEN FREE RANGES 3. REVIEW STORE’S APPROACH TO ELDERLY CUSTOMERS 4. REVIEW INSURANCE COVER 5. RESPOND TO SELECT COMMITTEE REVIEW OF RETAIL 6. RESPOND TO RSA HOME DELIVERY ENQUIRY

SEE PAGE 10 SEE PAGE 25 SEE PAGE 12 SEE PAGE 14 SEE PAGE 17 SEE BELOW

Home Deliveries The RSA is often asked about independent shops setting up their own home delivery service. In practice, this is very difficult for one shop to achieve, and in the past we have usually advised against doing it.

● How would an ideal system work? ● How interested are you in offering such a service? ● Please e-mail your comments and contact details to info@ruralshops.all.uk and we will get back to you with our findings.

In this edition of Rural Retailer, we have highlighted two companies trying to help small retailers provide this type of service, by providing website, delivery mechanics and marketing materials.

We would be very interested in the views of as many retailers as possible on: ● What tools or help you would need if you were to set up or subscribe to such a service for your customers?

Supermarket home deliveries are a common sight in villages

Issue 21 ● Spring 2013 ● RuralRetailer 5

West End Stores...

Sacrificing Dad’s When Marjorie Wargen and her sister Dorothy ‘Aunty Doll’ Hoyes first opened the West End Stores in Fownhope, Herefordshire in 1969, there was barely room in the tiny shop to swing the proverbial cat.

At the time, the small confectioners and newsagent was one of three shops in the rural village where the sisters were born. But after 20 years behind the (small) counter, it all got a bit too much for them and in the late 1980s, Marjorie’s son Nigel and his wife Jill moved back to Fownhope to step into the breach. But they had some tough decisions to make.

Nigel and Jill

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“We knew the business wouldn’t survive without a huge investment to expand the shop,” recalls Nigel, who had met Jill when they were both working for the same large supermarket.

“It was tricky, but we decided it was all or nothing. We ploughed in every penny of our savings and took out a very large bank loan on top to buy the shop, extend it and build a car park – over my dad’s beloved rose garden!” says Nigel. “He was OK about it though; my parents knew it was vital to invest in the business to make it profitable.”

Nigel and Jill’s confidence and hard work has certainly paid off in the ensuing 25 years, but it

By Beth Whittaker

Rose Garden Today a significant part of the original shop space is taken up with a

was not an easy path, as Jill remembers: “I was modern Cuisine de France unit the stock controller at the supermarket, so I was confident I would be able to use my skills in the new expanded village shop. But the timing was a nightmare; we had just moved to Fownhope to oversee all the building work when I found out I was pregnant!”

The existing tiny shop kept on trading while building work continued on all sides.

“Thankfully my mother-in-law and Auntie Doll were still running the shop while we were living upstairs with the new baby, and there was chaos all around. They were like lionesses, fiercely protective of me, and wouldn’t let anyone bother us,” she recalls fondly.

When the new ‘big shop’ finally opened for business in 1989, Marjorie Wargen decided to swap working the till for a little child-minding for her grandson, and Jill and Nigel were able to bring the full force of their previous supermarket experience to bear on the new, expanding business. But the scale took a bit of getting used to.

It wasn’t until new electronic tills were installed in 2000 that Auntie Doll finally hung up her pinny, at the grand age of 70. Now, 13 years later, the shop employs 12 part time staff and one full timer, with 40 per cent of business coming from passing trade. The current store is about five times the size of the original, boasting

“I was used to ordering by pallet loads, now I had just single cases,” Jill recalls. “Although I knew what sold in the supermarket, it took a while to adjust to what our village customers and passing trade wanted. We soon learned that people wanted the named brands rather than the cheaper alternatives.”

By 1997, West End Stores was the only shop in the village, making the most of its position on the main route between Hereford and Ross-onWye and eight miles from the nearest town.

Although members of Londis, Nigel and Jill have retained traditional store fascias

Issue 21 ● Spring 2013 ● RuralRetailer 7

West End Stores...continued

The massive extensions are obvious. The cars are parked on the original rose bed!

1,200 sq. ft. of retail space, a full Post Office service, car park and 600 sq. ft. of warehouse storage, thanks to Nigel and Jill’s forward planning and continued investment over the years.

It’s been a very successful partnership, with Nigel and Jill working to their strengths.

Turnover has significantly increased from about £1,000 to a healthy £15,500 per week.

“You can’t rest on your laurels,” advises Nigel.

“You’ve got to keep investing to make sure you’re offering the best; for example, we’ve just installed four new chillers to extend our fresh food range. But for us, over all these years, it’s not just been about the business, it’s about being part of a great community.”

The couple are planning to retire, but it will be a hard decision, particularly for Jill. “We’ve seen generations grow up, and because my motherin-law was born here and our two boys were born here, we really feel part of the fabric of the village,” she says.

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“We supported local suppliers long before it was fashionable because we believe it’s important to put something back. We get our meat from the local butchers; a local couple supplies us with home-baked pies and tarts, while another makes flans and cakes.

“One local chap who has disabilities supplies us with bird food, and we also stock local beers, ciders, and apple juice. We also pride ourselves on our wine selection.”

there is a good balance, along with the healthy passing trade. The store is open from 7am to 8pm during the week.

“It will be hard to let the shop go, even though we’ll still be in walking distance,” adds Nigel.

“We’ve spent so much of our lives building this thriving business we’d want to be sure we left it in safe hands, for the sake of the village. But we’ll have to stop ourselves from interfering!”

Recently installed chillers with energy efficient doors

The couples’ generosity towards good causes is also well known. “Everyone knows we’re happy to donate raffle prizes - that’s part of what running a village shop is all about,” declares Jill.

“We helped raise £2,500 for the local hospice thanks to the generosity of our lovely customers, The store has an open, spacious feel and another £900 for Help for Heroes.”

Right from the start, the Wargens have used Londis as their supplier. “We would not have time to use a cash and carry, and Londis have been great,” said Jill. “We were the first Londis store in this part of the country, and we’ve been happy to stick with them.”

With the newspaper delivery rounds still clocking up five miles a day, the van also delivers weekly groceries to around 12 elderly customers who find it difficult to get into the shop. The driver even puts the food away for the customers, helping by rotating fresh goods in their fridges.

Although there is an aging population in the village, the thriving primary school ensures

The RSA view This store shows that it is possible to create a successful business in a relatively small community. It is hard to underestimate the courage and commitment needed to expand the premises by so much but the end result speaks for itself and was a key factor in the shop’s success.

This, of course, was only possible because the land was available. Jill and Nigel’s multiple retailing background has obviously been another key factor in their success.

They have continued to develop the business through on-going investment. We can only echo Nigel's comments, hoping that whoever buys the business has the drive and skills to continue to develop it into the 21st-century.

Issue 21 ● Spring 2013 ● RuralRetailer 9

Real Time Information...

PAYROLL REPORTING All retailers must be aware of this change The government has made much of their Red Tape Challenge, designed to do away with unnecessary laws and to make life easier for businesses.

And then HMRC comes along to wreck the good intentions with one massive change.

Suddenly we have metre upon metre of tape, all a bright crimson red, wrapping itself round the computer screens on hundreds of thousands of small businesses.

HMRC will be going live in April 2013 with Real Time Information (RTI). By October, all employers, whatever their size, will have to use this system. Even if you only employ one paperboy for a couple of hours a week, it will affect you. Up until October, HMRC will allow businesses with less than 50 employees to send the required information by the end of their tax month.

or else that you submit a P46 form.

This applies even to temporary staff and you must do it before any wages are paid – without this paperwork, the employer will be liable for any underpayment of tax. The concept of casual labour as such is not recognised by the new system. Newsagents making payments to paperboys are not exempt. Even if you only employ your spouse, RTI applies.

RTI is a new way of reporting pay, tax and national insurance contribution details to HMRC. Currently, this is carried out through on end of year P35/P14/p38A returns.

Because this reporting takes place only once a year, many businesses use their accountant to help submit it.

In future, HMRC require all employers to send this data online, on or before the pay date. In practice, this means weekly, requiring the employer to have appropriate computer software and to submit the data themselves.

Businesses that use the services of a specialist agency or bookkeeper for payroll administration should find that they will be making arrangements to comply. If you yourself already use a software package to provide financial controls and payroll, then you should expect the supplier to update it accordingly.

Many suppliers are doing this for free, although we have heard of some outrageous demands by some software suppliers for additional charges. Sage Instant Accounts, for example, are apparently charging £150 for this upgrade.

RTI requires the employer to provide the employees full name, sex and date of birth. Their address will be needed for new starters but not for existing employees. National Insurance number should be provided but is not needed, for example, if the employee is under 16. When you take on a new employee, it is vital that they provide a P 45 from their previous employment

10 RuralRetailer ● Spring 2013 ● Issue 21

Clearly a number of small businesses will need to use payroll software, approved by HMRC, for the first time.

If you employ nine people or fewer (and although it sounds a large number, even small businesses can be employing this number of parttimers and newspaper deliverers)

FACES UPHEAVAL then you can obtain this software for free. Above this number, then the chances are you will have to pay. A full list of HMRC approved software suppliers can be found on their website, www.hmrc.gov.uk As so often happens, a change is being made that large companies with specialist payroll departments and sophisticated software can deal with fairly easily, but which can be a nightmare for small businesses. There are some retailers who currently do not even own a computer, let alone access the Internet. We certainly know a lot of small retailers without an e-mail address.

This RTI system will generate mind – boggling amounts of data on a weekly basis. We do hope that the HMRC computer systems are robust enough to cope. Even at this very late stage, we would hope that HMRC would understand the difficulties of providing weekly information on parttime and casual staff working a few hours a week on irregular shift patterns, plus the nonsense of under 16's earning small amounts of money delivering newspapers being caught up in this bureaucratic system.

Even at this very late stage, the RSA is calling upon HMRC to address

these very real concerns and to make the system less onorous for small employers.

Example, just excluding under 16's earning less than the tax threshold from the system would save significant administration without affecting the tax take in the slightest.

One of our retail members summed it up very neatly, “Thinking about complying with RTI is a real worry for us. We pay some of our staff at the end of their shift and others at the end of the week and even one at the end of the month, but we have no idea from one week to the next what their hours will be. HMRC have designed this system with only their cosy monthly salary BACS-type payroll in mind and have ignored the huge numbers of retail and other staff who are paid irregularly, and small businesses who only have one person doing the payroll. It will be a worry when we are away and there's no-one to do the payroll I really don't know what we'll do when that happens. It's very unfair of HMRC to bring in this system and it will help no-one but themselves, that's if their computers can cope with the enormous amount of information they'll be getting”.

IF YOU EMPLOY SOMEBODY ELSE TO ADMINISTER YOUR PAYROLL Talk to them to ensure that they are ready for RTI – remember, it is your responsibility to comply even if somebody else does the administration on your behalf.

IF YOU USE PROPRIETARY PAYROLL SOFTWARE Make sure your software supplier will be providing updates that comply with HMRC requirements in good time to meet HMRC deadlines IF YOU DO NOT HAVE APPROPRIATE SOFTWARE Acquire the necessary software. HMRC website has a list of software that complies with their requirements MAKE SURE YOU HAVE THE NECESSARY INFORMATION ON ALL EMPLOYEES WELL BEFORE YOUR IMPLEMENTATION DATE For more information, see: www .hmrc.gov .uk/payerti/getting -started/index.htm

Issue 21 ● Spring 2013 ● RuralRetailer 11

RSA National Meeting Debate

An ageing population: how should rural retailers respond?

When we visit rural shops, we always ask, “What sort of village is it, what sort of people live here?” The answer is very often that it is a retirement village, with a high proportion of elderly residents. However, when we consult the national census, the village actually has a very typical age pattern.

However, the shopkeepers’ answer is not surprising. Retired people often make up a high proportion of customers. Put another way, retired people depend far more on local shops

than younger people. Research from Age UK found that one third of over 65 use their local convenience store every single day.

Indeed, it is no exaggeration that in some cases it is only the presence of a local shop that enables them to stay in their own home rather than move to retirement accommodation. In 2010, people over the age of 65 spent £109 billion on food shopping. Older consumers are a major and growing part of the total market.

At the RSA’s last National Meeting, we asked those present (a mix of representatives from suppliers, rural community councils, local government and rural retailers) to think about how shopkeepers should respond to the trend towards an ageing population.

The points that came out of the discussions were: ● There is a need for an online shopping process available to independent rural shops.

This might involve local joint on-line marketing of rural shops, combined with cooperation on deliveries to customers. ● Home delivery and/or click and collect. This could include products chosen in shop by the individual customer, and then delivered later that day. The process does not need to be computer-based. ● Stock small pack sizes for one-person households and market them well. ● Although many staff are very good, training can help younger members of staff to help elderly customers without seeming to be patronising.

12 RuralRetailer ● Spring 2013 ● Issue 21

A message from...

PRITI PATEL MP

Member of Parliament for Witham, Chair of the All Party Parliamentary Small Shops Group

Retailers should be at the centre of rural communities and from my own family’s background running small shops I know the vital contribution they make. Through the hard work, graft and determination of shopkeepers, local villages throughout the country are able to access a range of vital goods and services.

Rural communities were hit hard by the last Labour Government’s urban-centric agenda.

Thousands of shops and Post Offices disappeared from villages leaving communities worse off.

When visiting villages in my constituency and other rural areas, I see at first hand the impact of this appalling legacy. Empty premises and boarded up rural shops not only represent a personal loss for the people who used to run those businesses but scar the communities they once served. I therefore pay tribute to the entrepreneurial spirit of those who came through this bloodbath and are continuing to support local jobs. Rural shops are essential to the communities they serve and should be protected. By contrast to the attitude of the last Government who stood by as rural businesses closed, this Government has introduced new laws to safeguard assets of community value, like village shops. Reforms to business rates should also empower local

councils to do more to help rural communities by cutting their business rates bills. I hope local councils will prioritise offering rate reductions to rural shops to help them as they face the challenge of coping with rising costs, the economic downturn, changing shopping habits and increased competition.

Living and working in rural areas is an aspiration that many people have and owning a small shop is one way to fulfil this ambition.

As the Chair of the All Party Parliamentary Small Shops’ Group I welcome suggestions and ideas on what further action can be taken to enable more people to run successful shops in rural communities, which I can raise with Government Ministers.

The RSA view As the chair of the all-party Parliamentary small shops group, Priti Patel MP is in an excellent position to bring issues to the attention of ministers. If any rural retailers have issues that would affect our sector generally, please send them through to the RSA and we will coordinate the information. If it is an issue of particular concern to your shop only, then you should contact your own MP.

CCTV - TWO USEFUL PUBLICATIONS The Home Office has recently produced a leaflet on the use of CCTV technology. This is a very useful introduction of benefit to both existing and potential users. It outlines the benefits, gives useful guidance on specifications and operation of CCTV. A longer read is another Home Office publication on a Surveillance Camera Code of Practice. Retailers are not legally bound to follow the code but you are encouraged

to do so. The Code provides in its 12 guiding principles some sensible safeguards. The RSA would recommend that all retailers look at both these two publications: ● http://www.homeoffice.gov.uk/publications/science/ cast/crime-prev-community-safety/cctv-small -business-guidance?view=Binary ● http://www.homeoffice.gov.uk/publications/aboutus/ consultations/surveillance-camera-consultation/ code-of-practice?view=Binary Issue 21 ● Spring 2013 ● RuralRetailer 13

Underinsurance...

by Ian Hughes of Bluefin

Underinsurance...

So, times are hard, the recession is biting deep, and profitable trade is harder to achieve. What can I cut back on? Ah, insurance. I will reduce the figures I have given my broker, to reduce my premium.

No one will notice it is lower than it really is.

What are the consequences if I do that? The chance of being found out is remote, and it will only be if I need to make a claim.

WRONG. WRONG. WRONG Underinsurance can have disastrous results, and even wipe out your business. Firstly, insurers have a good knowledge of your market, and can spot if your values are out of line with the size and type of store you operate. If you have a claim, and they think you are not insured for the true values, they will check and discover the actual values very quickly.

If you are underinsured, this is what will happen, with every insurer. There is a built in allowance with policies, to allow for normal trade fluctuations, but, let’s suppose you have cigarettes stolen. You have reduced cigarette stock cover to £4,000, to save money, but actually have £8,000 in stock. Cigarettes worth £3,000 at cost are stolen, and £12,000 damage is done to the building following the ram raid.

On the above example you would be underinsured, and only receive a claim settlement for the ratio of actual to insured stock. So, with £8000 cigarettes in stock, but only £4000 declared you would be 50% underinsured, and only receive 50% of your

14 RuralRetailer ● Spring 2013 ● Issue 21

claim. This means the £3000 loss is reduced to £1,500 paid out, less excess. If a ram raid was employed to break in and steal the cigarettes, and (typically) £12,000 of damage was done to the premises.

You will also only receive 50% of that element – and any other part of the claim, including business interruption. That is another £6,000 minimum shortfall you will have to find from other funds. So, immediately you can see the few pounds you saved on cutting your premium means you would in this case, be at least £7,500 worse off.

Is it worth the gamble? NO. It is not just your business you are insuring – it is your living. Please do not put your future in jeopardy by cutting corners on your insurance – it can backfire on you. ● Bluefin are providers of the Rural Shops Alliance shop insurance scheme ● If you have any queries about your insurance levels then speak to the Bluefin team on 0800 9047009, or email retail@bluefingroup.co.uk

RSAViews Spring 2013

New code should end ‘tick box’ regulation of age restricted products The Department for Business Innovation & Skills has recently published a new Code of Practice on Age Restricted Products. This is intended to strengthen the protection of young people and reduce red tape.

It should make regulation of sales of products, including alcoholic drinks and cigarettes, more consistent and allow local authorities to focus resources on dealing with rogue traders.

This Code is part of the Government compliance and enforcement activities designed to deliver improved outcomes for young people, local communities and businesses, coupled with a drive to eliminate bureaucracy. Practices such as routine test purchasing, not informing retailers if they have passed or failed a test purchase, and targeting businesses without proper evidence that they are selling products to under-age customers, will all be abolished. The Code provides guidance to encourage regulators to give advice in clear, accessible language, to ensure legal requirements are explained clearly and fully, to direct additional support towards new businesses, and to work closely with other local initiatives.

Business Minister Michael Fallon explained, “Businesses tell us that over-complicated regulation of age restricted products is not protecting young people effectively. This important Code recognises the vital role of the business community in upholding standards, while giving local

authorities more freedom to clamp down on those that break the law. Making responsible retailers part of the solution will keep these products out of the wrong hands and help boost local economies."

According to the Code, local authorities should have a clear view of their target outcomes and ensure that resources are directed towards these priority risks.

Authorities should undertake activities that deliver the best outcomes for young people, local communities and businesses. They should prioritise their support towards those businesses least likely to have robust compliance arrangements already in place. They should collaborate with other agencies, such as the police. And their policies on compliance and enforcement should be easily accessible, e.g. on their website.

Of considerable importance to retailers are the rules on when an authority carries out checks on compliance.

The Code says that these should be targeted on the basis of a risk assessment of the businesses involved.

This will include an evaluation of the business’s existing systems and management’s ability to comply with the law. An authority should ensure that its response to complaints or intelligence is proportionate and before conducting covert test purchasing, it should consider discussing complaints with the business first and working in cooperation with the manager.

continued on following page...

RSAViews ...continued from previous page...

The Code provides exhaustive guidance on conducting test purchases. Businesses should be informed quickly of test results, whether they failed or passed. In responding to non-compliance, the primary focus will usually be on constructive dialogue with the business to decide the changes needed, although this may be inhibited where criminal prosecution is being considered. The enforcing authority should respond to non-compliance with an approach that: ● Changes the behaviour of the offender and secures on-going compliance ● Eliminates any financial gain or benefit from non-compliance ● Is responsive when action is being considered against a particular offender ● Acts in a way proportionate to the nature of the offence ● Aims to restore the harm caused by regulatory non-compliance, where appropriate.

Applied properly, the RSA believes that the Code should encourage local authorities to work with responsible retailers to prevent underage sales. We would emphasise that this is something the vast majority of retailers do want to achieve. In the past, some zealous enforcement officers have provoked considerable bitterness, when otherwise law-abiding retailers have been hauled over the coals when sting operations have trapped junior members of staff into breaking the law.

This is a very short and selective summary of a 31 page report and retailers selling age restricted ranges are strongly advised to read the full document. ● See: http://www.bis.gov.uk/assets/brdo/docs/ publications-2013/13-537-code-of-practice-age restricted-products.pdf

PRIVATE MEMBERS BILL TO STOP ENERGY CONTRACT ROLLOVERS The Green Party MP, Caroline Lucas, has introduced a private members bill to address the problem of expensive energy rollover contracts for small businesses.

Rollover contracts are a significant bone of contention with small retailers, with energy suppliers charging very high tariffs. Currently rollover contracts forced onto micro-businesses have a limit of 12 months.

Caroline Lucas explains her Bill, “it's deeply unfair that, while micro businesses often consume products and services in a similar way to domestic consumers, they do not enjoy the same level of regulatory protection. My private members bill is about asking the government to act to ensure the energy regulator finally delivers on its promise – and stands up for the U.K.'s microbusinesses”. The draft bill would limit rollover contracts to 30 days for micro-businesses. This would ensure that a business’s failure to renew a contract would not leave it without power, but at the same time would not then tie it in to a year of expensive energy.

The RSA would certainly support the reform of this aspect of the energy market. The Bill has received its first reading (a formality) and is set to receive a second reading in April. Private members bills are unlikely to pass into law but often act as a catalyst for government action. We would suggest that retailers who support the proposal contact their own MPs and ask them to support Caroline Lucas's Bill. ● See: http://www.publications.parliament.uk/pa/bills/ cbill/2012-2013/0046/cbill_2012-20130046 _en_2.htm#l1g1

RSAViews ACAS CONSULTATION ON A DRAFT CODE OF PRACTICE ON THE EXTENDED RIGHT TO REQUEST FLEXIBLE WORKING In November 2012 the Government's announced proposals to extend the right to request flexible working to all employees after they have worked for 26 weeks. Employers are obliged to consider all requests in a reasonable manner.

The current statutory procedure will be repealed and the Government has asked Acas to produce a Code of Practice to help businesses manage this new extended right.

Acas is seeking views from employees and employers, particularly small businesses, on a draft of the proposed Code. This draft Code does offer short, practical advice for employers and is commendably easy to understand.

This brevity may prove to be a drawback when it is taken into account by Employment Tribunals.

The main points are: The starting presumption is that requests will be granted unless there are good reasons to refuse.

Acceptable reasons are; ● Additional costs ● Inability to reorganise the work ● Inability to recruit additional staff ● Adverse effect on performance or meeting customer demand ● Insufficient work when the employee wants to attend. ● A planned structural change to the business.

Consider the request carefully and weigh up the benefits for the employee and the business against any costs.

You must not discriminate against the employee.

Flexible working covers a wide range of arrangements.

These can include: ● Part-time working ● Flexi-time (employees work a standard core time but can vary start and finish times within agreed limits) ● Compressed hours (employees work their contracted hours in fewer working days)

● Homeworking ● Annualised hours (employee works an agreed number of hours per year) ● Term-time working ● Structured time off in lieu (employees work longer in busy periods and less at slack times) ● Job sharing Chair of Acas Ed Sweeney said: "This draft Code builds on our knowledge and expertise across all workplace issues. It will make it easier for employers to be fair in considering requests to work flexibly which helps to maintain good working relationships and minimise discrimination. We're very keen to hear views on the draft Code from anyone who has an interest in flexible working."

In practice, at the RSA we have found that small shopkeepers, working alongside their employees, often find it difficult to refuse requests for particular patterns of working even if this is not ideal for the business.

Rural retailers have been doing this long before legislation was brought in. However, it is a fact that multiple retailers have higher staff productivity than most independents, one of the factors in their profitability. There is a balance to be drawn between the needs of the business and the desires of the employee and in some cases the factors listed above mean that a request has to be turned down. There is no point staff manning tills if there are no customers. If the big stock order arrives on a Tuesday morning, that is when you need staff to put it away. Retail is an industry where flexible working can be quite difficult to offer employees. ● The draft code can be viewed at: http://www.acas.org.uk/media/pdf/2/r/ Consultation_draft_COP_FW.pdf The consultation closes on 20 May 2013. Responses can be submitted by email or letter - email address is righttorequest@acas.org.uk.

RSAViews SELECT COMMITTEE INQUIRY INTO THE RETAIL SECTOR The Business, Innovation and Skills Select Committee has announced a new inquiry into the UK Retail Sector. There is a Commons Select Committee for each government department, examining three aspects: spending, policies and administration. They are made up of MPs, who decide upon the line of inquiry and then gather written and oral evidence.

Findings are reported to the Commons, and the government then usually has 60 days to reply to their recommendations.

The committee will be looking at: ● Implementation of the Department’s action points contained in their Retail Sector Strategy Document of October 2012 ● Progress made in implementing the recommendations of the Portas Review ● The impact of on-line sales and direct sales on High

Street retailers ● The skills needed for a successful sector ● The regulations and costs affecting the sector The deadline for the submission of written evidence to the Committee is Monday 15 April 2013, which means that many retailers will not have received this journal in time to respond. The RSA will obviously be talking to as many retailers as possible before we send in our evidence.

It is obviously a positive move that the Committee is looking into the sector and we will try to ensure that the needs of retailers in smaller rural locations are not lost amidst the problems facing major High Streets. ● The BIS strategy document can be found here: http://www.bis.gov.uk/assets/BISCore/business -sectors/docs/b/12-1197-bis-retail-strategy.pdf

READY FOR AGEING? A House of Lords Select Committee has recently produced a report, “Ready for Aging?” A key aspect of this was the desirability of supporting older people in their own homes for as long as possible.

Key projections about ageing in this report include: ● There will be over 50% more people aged 65 and over in England in 2030 compared with 2010. ● There will be double the number of people aged 85 and over in England in 2030 compared with 2010.

The report covers a wide range of topics including pensions and savings, health and social care and housing. It even finds space to mention the importance of “simple aids devices such as easy-to-lift kettles and easy-to-use tin openers”. But no mention of local shops.

Bizarrely, the report does not recognise the vital importance of local shops to helping the elderly remain

living in their own homes. It is no exaggeration to say that in both urban and rural locations, having a nearby shop is crucial. In the past, the social benefits of rural shops have been recognised through support at both national and local government levels. Unfortunately local government support has been steadily eroded by budget constraints, whilst nationally the community importance of rural shops needs to be far more firmly on the agenda. ● The full report can be seen at: http://www.publications .parliament.uk/pa/ld201213/ldselect/ldpublic/ 140/140.pdf

Camelot...

Rural Retailers hit the jackpot About a year ago, Camelot announced plans to expand the number of National Lottery outlets by a further 8,000. This was exciting news for the RSA, given the number of our members who wanted to offer the Lottery but had been unable to get a terminal. Since then, we have been impressed by the sophisticated computer mapping techniques that Camelot has used to identify the areas of the UK with the maximum level of untapped demand.

We have also been genuinely pleased by the speed of implementation of the programme.

This was really quite remarkable – just a few weeks after the announcement it seemed that nearly every shop the RSA visited had a Camelot rep already there measuring up for a new terminal, or at the very least, an owner really excited at the prospect of being able at last to offer the National Lottery to their customers!

greater reach than any other fast-moving consumer goods brand in the UK. You might think, as online shopping becomes more and more popular, that people would be moving away from buying lottery tickets instore. However, retail still accounts for almost 85% of The National Lottery’s sales – and will continue to be the largest sales channel for years to come. In fact, Camelot’s comprehensive programme of investment, training and support for its retail partners succeeded in growing total in-store sales by over 9% to a record £5,486 million in 2011/12.

Camelot now works with over 36,500 retailers across the UK, with 7,500 of these having become National Lottery retailers only in the last 12 months. Camelot believes that this multimillion pound investment will enable it, over the next ten years, to deliver an additional £1.2 billion for the National Lottery Good Causes as well as generating an extra £540 million for the

Significantly, up to 75% of the 8,000 new retailers are independent outlets and around half of the new terminals have been placed in rural areas and Post Offices.

As operator of The UK National Lottery, one of Camelot’s key objectives is to maximise returns to National Lottery Good Causes, whilst ensuring that lottery products are sold in a sociallyresponsible way. And with over 70% of adults playing The National Lottery, the brand has

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Camelot...continued Exchequer through Lottery Duty, making in total £1.7 billion in extra lottery funding to society by 2023.

And of course this programme should also be great news for those thousands of stores around the UK that now have a National Lottery terminal. The most obvious benefit is of course the commissions that retailers earn for selling

Abdul Mohammed, Londis, New Pitsligo, Aberdeenshire Abdul and his family bought their shop in New Pitsligo (population: approx. 1,000) 18 months ago, having run shops elsewhere in Scotland for over 35 years. Although the shop itself has

tickets and scratchcards, or paying out prizes.

However, the main potential lies in the way that having the National Lottery brings additional customers and extra business into the store.

Here it is down to the retailer to use the marketing materials supplied by Camelot as a basis for their own promotional programme and then to take full advantage of this great opportunity to generate extra shop sales.

been in the village for decades, Abdul and his family have completely modernised it. Their National Lottery terminal was installed in October 2012.

Although footfall had been strong in Abdul’s outlet – with around 240 customers per day – it has increased by nearly 20% since the lottery installation, and customers are genuinely excited about the new offering.

Abdul has built on this by further promoting The National Lottery in a number of ways, including leafleting the village twice, exhibiting posters in his existing A-frame sign and investing in an in-store banner.

And for special events, such as Rollover draws, Abdul really goes the extra mile to bring an exciting atmosphere to the store, by prominently displaying Camelot show materials, asking customers what they would do if they won and wishing every player ‘good luck’ after their purchase.

Abdul says: “Having The National Lottery instore is a two-way partnership. It has led to huge benefits in footfall and profits but it also gives me great satisfaction to know that, every time we sell a ticket or scratchcard, it is not just about us or the winner – we are also contributing to National Lottery Good Causes.”

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Andy & Sarah Fryatt, Woolsery General Stores, Lower Town, Woolfardisworthy, Bideford, Devon

flyers around the area. Since the installation, there has been a definite surge in footfall and net turnover has increased by 23%.

The Fryatts have been running the Post Office in Woolfardisworthy (population: approx.

1,100) since June 2011. Previously, both had commuted daily to Exeter for work but, when the village shop became available shortly after Sarah was made redundant, it seemed like a good omen.

Sarah says: “We are very grateful for Camelot giving us the lottery – it has been like manna from heaven. It has made a huge difference to not only the store but the village as a whole.”

The National Lottery terminal was installed in Andy and Sarah’s store in the autumn of 2012 and was immediately popular – mainly due to the holiday camp on the outskirts of the village.

However, local residents are now becoming more aware of the terminal and are extremely happy to have The National Lottery so close to home.

Although many people have come to know about the terminal through word of mouth, the Fryatts have arranged for a high-impact advert about it in the local press and have also placed

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Coffee Shops in Rural Stores...

Goldmine or Millsto Tourists chat with parishioners in the tea room, where mums hold impromptu meetings about tennis tournaments before popping next-door to the shop for a loaf.

It might sound idyllic but that’s just how owners of The Village Shop & Tea Room in Compton, West Sussex, can justly describe their business.

Says Robin Bray: “There is a crossover between the shop and the café as people will come in for provisions then have a cup of tea.” Bray and business partner Jane Rebeiro bought the shop four years ago and knocked through into the

A Coffee Shop can take up considerable amounts of space.

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next-door cottage to create a café which has 20 covers, with extra seating outside. The cafe not only serves the small community but is also a meeting place and visitor attraction, contributing about one-third of their turnover.

Like these villagers, many recession-hit Brits now see a hot drink and slice of cake as a regular affordable luxury, but while town centre high streets have a plethora of coffee shops, there are far fewer rural options.

Kenneth Parsons, RSA chief executive, explains that historically, a surprising number of villages had tearooms, but that the sector has been in decline for decades. He adds: “Until relatively

By Helen Gregory

ne? recently, my advice to shopkeepers thinking of setting up such a facility was an emphatic no, but times move on and today, in the right location, they can be well worth considering.”

Some of those village shopkeepers going into catering have found tourist locations to be ideal sites. Jocelyn Smith, at Arley Post Office Stores and Riverside Tearoom in Kidderminster, reports that despite being largely dependent on tourists and trading mainly between April and October, she and husband Peter have doubled turnover in recent years – initially by extending opening hours. Smith says locals tend to only use the shop but despite this, the tea room is more profitable than the convenience store, and explains their simple strategy: “It’s hard to offer more unusual stuff if you don’t know how busy you’ll be, but it’s good to do traditional things like tea and scones, as well as lattes.”

Meanwhile, other shops are finding that running a cafe can engender village spirit, such as the Martin Community Shop in Hampshire. The shop moves to the main church hall each Saturday and opens a café which volunteers and three other local groups take turns to run, selling tea, coffee and cakes. “It definitely brings people into the shop,” reports manager Janet Richards, who adds that it raised £1,800 for local charities last year. “There were some villagers who never bought anything from us, but since coming along with their friends to the café, have become shop customers.”

As a result, store sales – which had been going down – are back up to previous levels.

So if you’ve got a bit of spare space, should you put in a couple of tables and a coffee machine?

Rural retailers need to be cautious before taking the plunge, warns Christine Hope, of Hopes of Longtown in Herefordshire. She started offering hot drinks five years ago, which customers can drink at the table outside, but wanted to provide better coffee and hot chocolate so bought a drinks machine. Due to a misunderstanding over costs, the machine is not paying its way.

Adds Hope: “I would advise people to try a kettle service first before they buy a coffee machine.”

Success can also be down to timing and having a unique village service, according to another

UPPER ARLEY The shop/post office and the tearoom are both quite small and are separate premises, albeit linked. The business is only viable with the two parts. Arley is a tourist magnet in summer, a popular stop on the scenic Severn Valley railway. Tables and chairs on the bank of the river provide most of the seating for the café, whilst on hot summer days the ice cream scoops in the shop are exceptionally popular.

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Coffee Shops in Rural Stores...continued café-running rural retailer. Andrew Summers, of Oreleton Post Office & Stores, Herefordshire, always fancied having a tea shop but put tables in the store just as someone started a café in the village hall. Says Summers: “We do actually get a few tourists and school run mums, but its most useful attribute is for when reps come or we need a staff meeting. And at least it means we can sit and have a cup of tea with customers.”

Both the Compton tea room’s Bray and the Riverside Tearoom’s Smith reckon that you need a minimum of 20 seats to create a viable business while Smith adds: “We have eight seats inside but up to 40 outside so we don’t need to have a customer toilet which would have been a rigmarole.”

She advises anyone considering the idea to check out the local competition before moving into catering: “We often go round local tea rooms and try out their offers.”

Café checklist ● Discuss possible requirements for customer toilets with your local district council or unitary authority. They will also advise you on other environmental health requirements ● Register your café or coffee shop with the local council. ● Obtain a food hygiene/safety certificate. ● Have good food safety management procedures, and consider health and safety, and fire safety arrangements. ● Keep written records of all your food and drink suppliers.

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The RSA view ● Market research in rural villages always shows that local people would like to have a coffee shop or café. This does not mean they would actually use it. ● Shop proprietors are always attracted by the very high gross profit margins available. This does not mean that they are able to control costs sufficiently to make a decent profit at the bottom line. ● Do consider local competition. If the pub does coffee and snacks, then it may not make sense to compete with it. ● It is sometimes sensible to test the market before making the large investment. If a cheap self-service coffee machine and packets of sandwiches sell well, then it is some indication that there is likely demand for something more sophisticated. ● Even limited coffee areas take up space; customers do not want to be too crowded whilst having a quiet sit-down. A pleasant environment is vital. ● Staffing tends to be the another important issue. If you need to employ extra staff, then you need to be sure that they will be actively employed. ● Coffee shops tend to do well in tourist areas, on or near major foot paths or cycleways as well as on roads. Opening hours do not have to be the same as for the shop. ● Do make sure that your offer is of decent quality.

Investment in a good coffee machine and the skills to operate it is usually well worthwhile. ● Provision of Wi-Fi access is now highly desirable, particularly if you are expecting to serve business customers.

Gluten Free Products...

By Geoffrey Bray

Gluten Free Products Coeliac disease occurs in people who become sensitive to a particular protein in their diet called gluten, which is normally found in wheat, barley, rye and other cereals.

The treatment for the condition, which is usually very successful, is to remove all sources of gluten from the diet.

However, gluten is found in a wide range of products. Biscuits, cakes, cereals, flours, pastas and pizza bases are fairly obvious, but it can also be found in a wide variety of prepared foods.

According to the charity Coeliac UK, one person in a hundred has coeliac disease. In other words, in a village of 2,000 people, twenty will need to adopt a gluten-free diet in order to avoid the unpleasant symptoms of the disease.

Certain gluten-free products are available on prescription but each NHS Trust has different rules and the whole approach is currently under review. Some people decide it is more hassle to go down that route than it is worth. Apart from diagnosed sufferers, more and more people who have not been diagnosed are changing to a gluten-free diet as they find they feel better for it. For example, Novak Djokovic, number one in the men’s world tennis rankings, has chosen to go on such a diet. There are many more potential customers than just coeliacs.

Gluten free flour sits comfortably alongside mainstream ranges

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Gluten Free Products...continued So is it worth the rural retailer stocking gluten-free products?

These products are often not cheap and there is a very large range of gluten-free products available. Even if you only stock a staple, such as bread, most people on gluten-free diets have their own brand preferences. Before investing in stock, it is sensible to find out if you have any customers who are on such a diet and then ask them what they would buy if you stocked it.

And you would need them to be very specific.

So a prominent notice in-store or leaflets asking customers what gluten-free products they would buy might be a good way to start.

In addition to sales of gluten-free products themselves, you can also hope to garner incremental sales of other products bought by the family – and create a loyal customer with a very strong reason to keep coming back to your shop on a regular basis. ● For more information, see: http://www.coeliac.org.uk ● Coeliac UK provides a directory of suppliers of gluten-free foods – to access it, you can become a commercial partner at no charge: http://www.coeliac.org.uk/food-industry/ become-a-commercial-partner-0

A waste of space ... or a “repeat customer” driver?

Sometimes stocking specialist products can just clutter up your shelves, however….

Motivated by press and television coverage on the rise of gluten and wheat free products, we recently expanded our range of pasta and flour to include a gluten and wheat free alternative.

We chose the Dove Farm range of Penne, Fusilli and Lasagne, which amazingly is made from maize & rice. As you would expect, the initial uptake was slow; however we soon built a loyal customer base of people with either wheat & gluten intolerance or who were just following a wheat-free diet out of choice.

Although the range sells at a higher price point than normal pasta, this has not been a barrier. It offers a good margin, and best of all it has a long shelf life (1 year plus). We also stock selfraising white and brown wheat & gluten free flour, with which we have had similar success.

One benefit of stocking these “specialist”

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products is that it encourages customers to talk about your store in the wider community, resulting in new customers specifically asking for them.

And invariably, these customers buy something else as well whilst they are in the shop!

Graham Brown, Blagdon Village Stores

Gluten-free pasta has proved popular in Blagdon Stores

Clicks and Bricks...

Two Approaches to Home Delivery We have to confess that at the RSA we have always been a bit cynical about government support for the High Street. A million pounds, a high profile front person from television and a lot of PR puff does not solve the deep-rooted structural problems facing town centres all over the country.

Store numbers in the UK declined by 2.7% last year. Retailers including Peacocks, Clinton Cards, Comet, JJB, La Senza, Blacks, Jessops and HMV have all collapsed into administration, shuttering hundreds of stores in the process.

Everybody pays lip service to supporting their local shops but the reality is that nearly 15% of all retail premises are currently vacant, with predictions that a lot more shops will remain unlet over the next few years.

So if tarted up shop fronts and some flower tubs are not the answer, what is?

Clearly one of the factors causing real problems for bricks and mortar retailers has been the meteoric rise of online shopping. Paradoxically, many of the main players in this new market are not actually making much money from it.

This is true for supermarkets and also for companies such as Amazon.

high street” online. They have approached the opportunity from very different directions but both have elements of interest to rural retailers.

However, two schemes aim to breathe life back into local bricks and mortar retailing by providing small businesses with a web portal.

This opens up on-line browsing and ordering, with delivery to the customer’s home.

Openhighstreet and MyHigh both allow customers to shop locally on their mobile, PC or tablet. Customers can then either click and collect, or have purchases delivered.

Openhighstreet can probably be compared with supermarket e-commerce sites, whilst Myhigh is more like Amazon.

Both companies are trying to square the circle between the attractions of shopping at small independent retailers and the convenience of buying on-line.

A lot of town centres and malls have websites to encourage prospective customers to visit them.

However, we know of two companies that have taken the idea a stage further to create a “virtual

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Clicks and Bricks...

myhigh.st BACKGROUND This company was set up by Loaye Agabani.

After a career with M&S, he has founded a series of retail and leisure businesses. The company's philosophy is very much based on his experience of owning Junior Toys, a successful toy shop in Wells in Somerset, the smallest City in England and one which still has a high street with a significant number of independent retailers. Funding for the company is self-generated. The company's offices are above the toy shop. The company has a small team of experienced employees who provide IT and marketing services in-house.

Loaye Agabani (“Louis”)

FOR CUSTOMERS MyHigh is about encouraging customers to shop at their local retailers. Customers on the MyHigh website select their home town as part of the registration process. They can then browse the ranges on offer, order on-line for home delivery (at extra cost) or they can click and collect. If customers buy from more than one shop from the same town, orders can be consolidated into one delivery.

There are about 140 retailers who have signed up. A significant proportion is in Wells itself, with other clusters in places such as Shepton Mallet and Stroud, although there are a few retailers coming on board from outside the south-west. Once 10 shops have signed up in the town, a virtual High Street is created for it

FOR RETAILERS Retailers register with the site and set up their own home page within it, at no charge. They can then list their products, again for free.

Window stickers and other publicity material are also free. The only charge to the retailer is a 14% commission on all sales made through the site, which does include all credit card charges.

These charges are competitive with other sites such as Amazon or EBay.

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Junior Toys in Wells, where it all started.

on the website. The majority of shops are nonfood, giftware and the like, although there are some food shops involved.

MyHigh offers independent retailers a way of gaining an extra web presence at no upfront cost. Provided most sales are genuinely extra business and that profit margins can cover the commission, then participating retailers have little to lose. To quote MyHigh, it “enhances your offer, extends your geographic reach, increases sales and builds new revenue streams”.

FOR MORE INFORMATION OR TO JOIN

http://myhigh.st THE RSA VIEW

“I was quite excited about the idea but not sure how it would work for me – I particularly liked its collective nature. So far people have mainly seen things on the web and contacted us directly. It's been a good showcase. It's been nice to try to sell online without the expense of an e-commerce website of our own. We’ve gone online but been given a local feel. Louis and his team have done a great job” Dan Holland of Queen Street Deli, Wells

MyHigh consists of a small but dedicated team of people committed to what they are trying to achieve. It will be interesting to see how many people access the site and then visit the shops along the real high street in person.

It is still too early to say whether the concept will succeed. The number of shops signed up is impressive and the website would seem to be successful in attracting visitors and also driving customers to the bricks and mortar shops featured within it. It will be interesting to see whether there is a crossover between shop visits and ordering online. It is obviously essential that the site does generate sufficient e-commerce orders in order to cover its costs.

The concept seems to be most attractive to nonfood retailers. For such businesses, the very low upfront investment means that there is little to lose from joining MyHigh.

Only time will tell whether the site generates sufficient commissions to make the concept financially viable for the operator.

"We did have our own website but over 18 months it generated half the sales we have had from MyHigh.St. The site is user friendly and it is easy to set up new lines. We have generated some repeat business through the site and it has brought extra customers to the shop. Tallying it all up, we think it is brilliant value for money. We have recommended it to other people." Elise Beauchamp, of Florrie's Gifts and Homeware, Street (pictured with her cousin and business partner Chantelle Vinnell).

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Clicks and Bricks...

openhighstreet BACKGROUND Open High Street has originated from a corporate background. The project has been funded by £400,000 from the government Technology Strategy Board with a further £400,000 coming from private sector backers, mainly consumer goods giant Unilever. Inzenka, a consultancy firm that sets up new businesses, initially managed the project, whilst other consortium members included Eziserv (a packaging company) and Pi3 (branding experts).

The aim was to build a “virtual high street”, providing a platform for local businesses that cannot afford to run a website and allows customers to have the quality and service they get from independents at any time. The longterm aim was to link up a logistics network that would allow shoppers to buy easily from independent stores anywhere in the UK and use the spare capacity of local delivery firms to keep costs under control.

The project was intended to prove the concept in a local area – Herefordshire - prior to a much more extensive national roll out.

Butter Market Grocery supply fruit and vegetables from their stand in the historic Hereford Butter Market

Neil Powell operates 5 shops in Herefordshire and specialises in locally-produced meat

Although the scheme is still in existence, it only has a handful of customers ordering from it. It is not being actively marketed to new customers and its future would seem to depend on more external funding becoming available.

Mousetrap Cheese has a local cheese-producing dairy and 3 shops

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Neil Powell operates 5 shops in Herefordshire and specialises in locallyproduced meat

FOR CUSTOMERS

FOR RETAILERS

Customers can order from any of the stores that have signed up to the scheme, all of which have their own pages within the website. Their purchases are combined into one basket within the website, leading to one single payment.

Open High Street charges retailers a commission of about 10%. The attraction of being able to supply new customers with somebody else taking the hassle of marketing and delivery is obvious. There are just four retailers signed up to the scheme. Three are specialists based in Hereford city centre - a butcher, a specialist cheese shop and a greengrocer), whilst the fourth is a general convenience store in a village a few miles out of the city (West End Stores, Fownhope – see page 6).

The products from the different stores are delivered in one drop for a flat £5 fee. The service is currently available to addresses with HR Hereford postcodes only.

This allows customers in the county to buy from small local shops whilst enjoying the convenience offered by online supermarket shopping.

THE RSA VIEW Inzenka is an experienced consultancy which specialises in setting up new concepts and trialing them in the field for large companies.

A significant number of blue chip companies feature in their client list. But unfortunately a lot of the funding for this fairly straightforward project does not seem to have gone into the practical aspects of getting it to work.

There is absolutely nothing wrong with the concept. Small food shops want to be able to offer the same convenience of online ordering and cheap home delivery that the supermarkets provide. Working together to provide it makes complete sense. Many customers would like to use specialist retailers without the hassle of driving into town to visit them. Hence there is a real demand from both suppliers and customers for such a service.

FOR MORE INFORMATION

www.openhighstreet.com fact compete successfully with supermarket deliveries and achieve anything like a breakeven point financially. The killer problem for home delivery schemes is the logistics – in this case, the costs of collecting products from several suppliers, sorting them and then delivering to individual customers, all in relatively small quantities.

We very much hope that OpenHighStreet is able to address some of the unresolved issues and go on to provide a viable e-commerce solution for independent rural retailers.

Despite its large budget, this project did not run for long enough or reach a sufficient scale to prove one way or another whether it could in

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