Lifestyle Retailer 46, Mar/Apr 2018

Page 1

The magazine exclusively for

retailers

Don’t miss

grab and go

Food to go sales are still hot hot hot

Retailer Issue 46 mar/apr 2018

Invest for success Our tips to drive up sales and footfall

Easter earnings Time to stock up on choc – and more

Sweet

talking The sugar levy is about to transform the soft drinks category. Are you ready?

Plus. . . retailer stories n industry news n latest must-stock products n store profiles


®

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£5.7M MEDIA SPEND ON SNICKERS


Lifestyle Retailer is published six times a year by The Bright Media Agency, The Old Bank, 2 Cross Street, Enderby, Leicestershire LE19 4NJ on behalf of Landmark Wholesale. For Landmark

Stuart Johnson

Welcome… …to your March/April edition of Lifestyle Retailer. I don’t know about you but I’m looking forward to shaking off winter and those awful dark nights. As always, this issue covers a wide range of hints and tips to help you get the very best out of your store. On page 53 we catch up with Raj and Bobby Singh, who have just converted their Lifestyle Express in Kilbirnie into a Lifestyle Extra, while on page 35 we

For The bright media agency

visit a retailer in Kings Norton who has doubled his

Editor Stephenie Shaw

turnover since joining Lifestyle Express just a few

Head of Design Emma Bramwell PR and Communications Executive Rosie Bambury

months ago. Food-to-go is a massive opportunity to increase your margins at the moment and it’s only getting bigger and bigger. Turn to page 49 for some tips on how to make

Contributors Roy Kilcullen George Mahoney

the most out of your food-to-go offering. On page 7,

Artworker Chris Gardner

help you stay on top of the game.

Head of Commercial Development Adam Turner Publisher David Shaw To advertisE

Please contact Adam Turner: 0116 296 0214 or adam@thebrightmedia agency.com

we round up the latest must-know industry news to On page 26 the Lifestyle Express team share their favourite refits and on page 22 we look at how you can make your confectionery sales ‘egg-citing’ this Easter.

49

Have you checked out the brand new Lifestyle Express website recently? If not then head on over to www.lifestyle-express.co.uk where you’ll find tons of helpful resources. I hope you enjoy this

To DISCUSS EDITORIAL

edition of Lifestyle Retailer.

Please contact Stephenie Shaw: 0116 296 0133 or stephenie@thebright mediaagency.com

Happy reading!

Disclaimer: All prices listed are correct at the time of going to press, but may be subject to change.

53

Stuart Johnson Retail Controller, Landmark Wholesale

get in touch, share your news If you have news, top tips or ideas for features, get in touch with Lifestyle Retailer. Just email

lifestyleretailer@ thebrightmediaagency. com issue 46 2018

retailer

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! P S I R C D L O G A FIND

® Registered Trade Mark.

STOCK UP TODAY!


Contents 13

35

26 07 N eed to know

on the cover

Our summary of the latest industry news and views

13 ones to watch The latest must-stock products for your shelves

17

35 store profile Thanks to Lifestyle Express, Mohammed is loving life as a retailer

45 smoke signal

Stick to tobacco RRPs or

risk losing your customers

53 store profile

Husband and wife Bobby and Raj Singh are a winning retailing team

60 next issue

What you can look forward to in May/June

62 the lowdown

22

Thanks to cover star Mohammed Amjad Niaz from Lifestyle Express, Kings Norton (p35)

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sugar tax The Soft Drinks Industry Levy comes into force in April. Are you ready?

22 chocs away

Did you know Easter is the second biggest date in the retail calendar?

nvest for 26 Isuccess

Why investing in your store has never been more critical

49 food-to-go

Grab-and-go food options are hot, hot, hot

Why Easter sales are so egg-straordinary

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INTRODUCING

NEW

AZERA NITRO NITROGEN INFUSED COFFEE BEST SERVED CHILLED

STOCK UP NOW

Category value of £72.5m with growth of +13% year on year sales Source: IRI all outlets MAT 30th December 2017 Serving suggestion


Need to know

Brand new look for Vintners Collection Lifestyle Express’s own brand wine range Vintners Collection has been relaunched with a brand new look. Available to shoppers at less than £6 per bottle, the range has been redesigned to feature a more contemporary label to give it increased shelf appeal. The wine range includes all the tried-and-tested favourites, including a fresh Italian pinot grigio, smooth Argentinian malbec, zesty Chilean sauvignon blanc and refreshing Californian white zinfandel.

must stock

With 12 wines across six countries and 10 varieties of grape, the Vintners Collection contains every wine that shoppers are likely to be looking for. For retailers looking to stock crowd-pleasing wines, the Vintners Collection is the ideal range.

Revitalise your sales with healthy eating If you want to give your sales a boost, look to stock healthy eating and ‘big night in’ products, as new data from Nielsen Scantrack revealed products from these categories helped to drive growth in 2017. Shoppers in the UK spent

£176.4m more on fresh fruit (up 3.8%) than in 2016. Sales of free-from products, including gluten and dairy alternatives, rose by 18.7% or £146.6m. Shoppers also splashed out an extra £80.3m on sparkling wine and £152.3m on spirits.

UK shoppers spent £176.4m on fresh fruit, up

3.8% on 2016

Crackdown on plastic The clampdown on the overuse of plastic in stores continues as a consumer survey revealed overwhelming support for a plastic-free aisle in grocery stores. Secretary of State for Environment, Michael Gove, said that he wanted to tackle the UK’s ‘throwaway culture’. Currently, shops with fewer than 250 employees are exempt from the plastic bag charge. It’s recently been reported, however, that the current levy has contributed to a reduction of nearly 90% in their use and £66m has been donated to good causes using money raised by the bags. Meanwhile, it has been announced that the 5p plastic bag levy could be extended to cover nearly all retailers. plastic free A survey of 2,000 adults, commissioned by A Plastic Planet, showed 91% of people would back a supermarket aisle that displayed only products that were free of plastic packaging. Gove also wants to introduce a plastic bottle deposit scheme which would need retailers’ backing.

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Need to know

What’s hot… Captain gets a makeover

Birds Eye has revealed a fresh faced, younger Captain to replace the older face of the brand, in a bid to make the brand more contemporary.

Healthy snacking gets thumbs up

Following a recent Change4Life campaign, healthier snacks for children look set to be in high demand as parents look for 100-calorie snacks such as malt loaf, lower-sugar fromage frais and sugar-free drinks.

What’s not… Ban the bud

The sale and manufacture of plastic-stemmed cotton buds is to be banned under new Scottish plans, following concerns about the number of buds washed up on beaches after being flushed away.

Say no to packaged veg

Pre-packaged veg’s days look set to be numbered as UK supermarkets face a backlash following the government’s crackdown on plastic waste.

Cash in online To celebrate the first birthday of the Lifestyle Learning Academy, there’s a whopping £250 worth of own-brand vouchers up for grabs. If you’d like to be in with a chance of winning the vouchers, you just need to sign up for the Academy before the end of April 2018. Lifestyle Express launched the Lifestyle Learning Academy exclusively for Lifestyle Express retailers to help them drive up sales and better serve the needs of their customers.

THE

LEARNIN G ACAD EMY “We know that retailers struggle to find time to train their staff and this online training covers essential topics such as age-related sales, health and safety, customer service and Core Range,” said Stuart Johnson, Retail Controller. “You can also track staff training and progress. With all these benefits, and the vouchers up for grabs, what are you waiting for?”

Coffee to go? Consumers may soon face a 25p levy on disposable coffee cups after MPs called for

a tax to “kick start a revolution in recycling”. The Environmental Audit Committee said money raised from a ‘latte levy’ should be used to improve the UK’s ‘binfrastructure’ and reprocessing facilities. The UK throws away 2.5 billion disposable coffee cups every year, enough to circle the planet five and a half times.

Selfregister for training Visit http://tiny.cc/lla Email support@boltlearning.com

Link confirms 5% fee cut

ATM network Link is reducing the interchange fee for card transactions from 1 July 2018. This will take place over four years, starting at a 5% (around 1p) reduction.

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STOCK UP ON PREMIUM LAGERS

Stella Artois 4x568ml can

£44,658,000 ↑* 14%

Stella Artois 10x440ml can

£18,401,000 ↑* 6%

Holsten Pils 4x500ml can

£13,947,000 ↑* 7%

Budweiser 6x300ml NRB

£13,758,000 ↑* 48%

WORTH

£369.5M IN IMPULSE

Budweiser 12x300ml NRB

£11,124,000 ↑* 8%

TIP: 75% of volume sits in the £2.50-£10 price, highlighting the importance of mid-pack stocking.

STOCK UP ON CORONA • Biggest World Beer Bottle Pack Generating £10.7m in sales over the past year, 4x330ml is the biggest World Beer bottle pack in convenience • Best-selling World Beer Bottle Mid-Pack Growing at 22% YOY, 10x330ml is the best selling mid-pack in World Beer • Increased cash-to-till When stocked, 4x330ml adds more cash to the till than San Miguel 4x440ml, Heineken or Sol Made for

Sharing *Value growth Source: Nielsen scantrack 52 weeks ending 30th december 2017, total impulse

Please drink responsibly. ©2018 AB InBev UK Limited, all rights reserved.


Need to know

Teachers slam energy drinks Do you keep tabs on who you sell energy drinks to? You may soon find that you won’t be able to sell them to shoppers under the age of 16. NASUWT, the teachers’ union, has called for the sale of energy drinks to be banned to under-16s, describing the beverages as ‘legal highs’ that contribute to bad behaviour in schools. And they’re not alone; charities such as Action on Sugar have also called for a ban on the fizzy favourites. High-caffeine energy drinks have become increasingly popular with children and teenagers, despite industry rules

James Lowman, Chief Executive at Association of Convenience Stores, talks about plastic

T outlining that any soft drink with more than 150mg of caffeine per litre must carry a warning and state it is not recommended for children.

The Lifestyle range of chocolate has been given a tasty new look. Price marked at just 60p for a 100g bar, the range includes firm favourites such as milk, white and a new dark chocolate bar.

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In the know heresa May’s recent speech on a long-term plan for the environment was heavily focused on how to cut back the use of plastic, and particularly to reduce plastic in the oceans. Given that many of the products that you, as a convenience retailer, will stock are packaged in plastic, what does this mean for you? There are probably two main impacts on your business: those related to the products you sell, and then new operational requirements that you may face in your own right. Measures focused on product packaging could include requirements for less plastic to be used, for more biodegradable packaging, or for non-recyclable plastic to not be used at all. There could be a tax on plastics, and I think the government are attracted by the model of the sugary drinks levy which has incentivised manufacturers to change the formulation of products.

going plastic free There are also measures that would more directly impact on the way you run your store. Plastic-free aisles, deposit return schemes and carrier bag levies would all bring new legal responsibilities. Most retailers support carrier bag charging, and while the government hasn’t committed to extending mandatory charging to small businesses, it still wants them to charge before making this compulsory. Other measures that could be brought in are much harder to implement. They would require significant changes to your store, making new facilities available and/or giving new tasks to you and your staff. Maybe that’s justifiable given the scale of the problems related to plastic waste, but requiring 50,000 shops (just in our sector) to change their behaviour is inevitably costly, and difficult to police and enforce. It’s not credible for us to say “too difficult” when confronted with options for how we can play our part, but we have to look at effective ways of addressing this problem, and not fall into the trap of adopting new regulations because of the scale of the problem rather than the merits of that measure. I think the overall strategy sets the right tone to implement an effective approach which delivers lasting change. We will work closely with government to do this, so expect to hear lots from us on the details of policy over the coming years.


A proper breakfast. Bottled.

Have you had yours? UK’s No1 breakfast drink* Breakfast drinks category is £26 million growing at 30% YOY Protein Drinks are 23% of the Breakfast drinks Category *Nielsen Data to 06.01.2018


WINGS WITHOUT SUGAR.

250ML PMC

£1.25

355ML PMC

£1.59

473ML PMC

£1.85

RED BULL SUGARFREE

WINGS WITH SUGAR.

250ML PMC

£1.29

355ML PMC

£1.59

473ML PMC

£1.99

RED BULL ENERGY

No.1 Energy Drink and No.1 Low Cal Energy Drink. Stock side-by-side in all 3 sizes to offer your shoppers the choice they demand. Red Bull Gives You Wings.


Ones to watch The newest products that will be demanding space on your shelves

Ice-cream dream

CHOOS EXTRA SALES

Hot on the heels of Drumstick Squashies becoming the best-selling confectionery PMP in the UK, comes the latest sweet temptation from Swizzels: Drumstick Choos and Refreshers Choos! With new and exciting flavours, and vegetarian friendly too, why not ‘Choos’ to boost your sales? Available as 135g £1 PMPs.

Häagen-Dazs has launched two new ice-creams, Peanut Butter Crunch and Coconut Chocolate. Available in pint-sized tubs, these tasty new flavours look set to be a sure-fire summer hit with customers.

Two for tea Treat your customers with Fuzetea, the brand new premium iced tea product from Coca-Cola. Containing a mix of fruits, botanicals and tea, and available in two low-sugar variants, Mango Chamomile and Peach Hibiscus, the range will launch in 400ml PET on-the-go bottles.

HULA HOOP IT

KP Snacks is expanding its Hula Hoops Puft range with the launch of a new Sweet Chilli multipack. The new multipack SKU consists of six 15g packs at just 71 Kcal per 15g.

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Ones to watch Keep it in the family Always a firm family favourite, Kellogg’s has now launched family sized bags and boxes of their most popular products across the range. These larger packs offer great value to customers and look set to fly off the shelves.

PASTA faster

Bring pasta convenience to your shoppers: Pot Pasta is the latest pot snack from Pot Noodle, the UK’s number-one instant hot snack brand. PMPs are available in two variants: Creamy Carbonara and Beefy Bolognese.

This is bonkers McVitie’s has added Bonkers Berry Cake Bars to its iconic Jaffa Cake range. With five bars in each pack, the limited-edition treats are perfect for customers needing a sweet pick-me-up.

WE ALL SCREAM FOR ICE CREAM

As we head into the warmer months, it’s time to stock your freezers with the latest musthave products from Magnum. Chocolate & Hazelnut Praliné Ice Cream is available in regular and mini-sized sticks, as well as a tub, and is bound to be a hot seller this summer.

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Sweet as Perfect for students or customers just wanting a quick and easy bite to eat, Batchelors has added two new exciting Super Noodles flavours. Sweet BBQ Chicken and Sweet Chilli Chicken are now part of the already incredibly popular range and are set to be a big hit with your shoppers.


FRUITY TREAT

A must-have for your shelves as we head into spring and summer, Bacardi’s new Raspberry Spirit Drink has been crafted with intense flavours and is perfect as a fun mixing drink for parties.

Top dog The must-stock product to boost your pet food sales. The UK’s number-one dry dog food brand has launched a new wet dog pouch, now part of its Bakers Home Classics 3 for £1 pricemarked 100g packs. Available in two hearty flavours; beef casserole and lamb stew. Stock up today!

We are Cashzone, the cash machine people. We’re the largest independent ATM deployer in the UK, operating more than 20,000 cash machines in a variety of retail locations including: convenience stores, petrol forecourts, shopping centres and much more! Install a Cashzone ATM and benefit from: Increased in-store spend Increased footfall Increased customer loyalty Competitive advantage

t: 01707 632 803 e: info@cashzone.co.uk

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GIVE YOUR PROFITS A TASTY TWIST NEW FLAVOURS. NO SUGAR.


Soft Drinks Industry Levy

r a g u S t i h

nd a g min e o c is ed. Th der y v r le repar consi a g su e p ed to inks e b o e Th ys t dr n ft u a it p ges yo our so too y n cha ing to not be om r k ma e need help f g ran g with tailer n e taxi tyle R s Life

C

ome 6 April, it’s all change for the soft drinks category. The Soft Drinks Industry Levy has been introduced by the government to encourage soft drinks manufacturers to reduce the amount of added sugar in soft drinks to provide healthier choices for consumers. So, what does this mean for retailers? As the key aim of the levy, dubbed the

‘sugar tax’, is to encourage consumers to choose low- or no-sugar soft drinks to benefit their health, retailers should expect to see a rise in demand for these options. In addition, most soft drinks manufacturers will be changing the format of their products to fall below the levy so that they don’t have to pay more, meaning there will be more low- or no-sugar options available. Retailers should view this tax as a positive,

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mainly because it provides a great opportunity to review and expand your range and increase your sales. With more than 50% of shoppers looking to reduce their sugar intake, the low-sugar drinks category is set for big growth. The

Did you know? The sugar-free shopper spends

£124m

more in store each year*

market is currently worth more than £460m in the convenience sector and is expected to reach £575m by 2019. Independent retailers are seeing the fastest growth of low-sugar soft drinks sales, with a rise of 12.1% compared to 7.8% in the overall market. According to Lucozade Ribena Suntory, consumers are increasingly looking to the impulse channel for healthier drinks. And this type of shopper typically has a higher spend in store, so it’s wise to do all you can to encourage them into your store.

Use your planogram

If you haven’t already, start thinking now about layout, range and stock so that you’re prepared for when the levy takes effect. To

help you, Lifestyle Express has a soft drinks planogram – you should have received your 2018 planogram in the last few weeks – and it’s essential that you follow this as the basis for your soft drinks chiller to ensure you don’t miss out on sales. Essentially, it’s recommended that you stock a wide range of low- and no-sugar products to appeal to your customers. To give you an extra steer, research by HIM revealed that if choosing a healthy drink, 50% of consumers would go for water, 18% fruit smoothies and 13% a diet fizzy drink, while if choosing an alternative to a sugary soft drink, 34% would opt for water and 23% the diet equivalent of a brand. As with any category, it’s important to build your range around the bestselling brands to drive sales. Merchandise the bestsellers at eye level, and position low-sugar options next to original flavours and group different variants together, such as colas, flavoured carbonates, waters, juice drinks and so on. Britvic advises retailers to stock a selection of fruit carbonates as more shoppers are now opting for no-addedsugar fruit carbonates, with figures showing +16.8% growth in sales.

Tax-free

When considering products for your

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*(HIM CTP 2017. IRI Data 52 weeks to 20/10/17)

Soft Drinks Industry Levy


MERCHANDISE NEXT TO WATER IN THE CHILLER TO MAXIMISE SALES

STOCK

UP

TODAY !

ÂŁ6.4M s e sale in valu nch* au since l e most h t , s n o Robins ted sof t u tr s in bran*d s k n i r * d the uk

100% naturally sourced ingredients for a deliciously refreshing taste Sources: * Nielsen Scantrack, Total Coverage, Value Sales Since Launch April 2017 to we 21.10.17. **Mintel, GB Mintel soft drinks report ( June 2017). Robinsons Refresh’d contains a minimum of 21% fruit juice from concentrate. Contains naturally occurringsugars. Robinsons and the Robinsons Arch device are registered trademarks of Robinsons Soft Drinks Limited. BRV408295_18

Follow @BritvicTrade for more soft drinks information


Soft Drinks Industry Levy

what is not included in the 6 April levy n Pure fruit juices n Any drink with no added sugar n Milk-based drinks n Alcohol-substitute drinks, such as low-strength beers and wines

range that are not impacted by the levy try Pepsi Max, 7Up Free, Tango, Drench, J20 and, new from Robinsons, Refresh’d, which contains 100% naturally sourced ingredients. Lucozade Ribena Suntory has been working on reformulating its drinks for some time and the result is that all Lucozade Energy, Lucozade Sport, Ribena and Orangina drinks now contain less than 5g of total sugar per 100ml and are exempt from the levy. There has been a massive 50% reduction in sugar content without affecting the taste and quality, which is great news for independent retailers as Lucozade, in particular, is a bestseller in the increasingly popular energy drinks category. The fastest-growing, low-sugar soft drink is water. Sales are up 10% in the past year and water makes up one in five soft drinks sold in convenience stores, so dedicate significant chiller and shelf space to water, offering a range of brands and pack sizes. Remember also to stock a variety of formats across the category, such as large single bottles and multipacks. As the warmer weather approaches, advertise that you have a wide selection of soft drinks in your chillers ready for customers to buy and drink on the go. And it’s advisable to advertise low-sugar drinks as healthier options rather than diet ones.

The ‘premium’ products It’s likely that some drinks will not be reformulated and they’ll be taxed so the price of these will increase. When it comes to those ‘premium’ products – such as

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Coca-Cola, Pepsi, Red Bull Original and Monster Origin – use your discretion. Currently, 36% of shoppers in convenience stores buy high-sugar fizzy drinks, according to HIM research, so don’t remove them from your shelves and chillers as there is likely to still be demand, but watch the sales as some shoppers may refuse to pay the increased price. Crucially, make sure your staff understand the legislation – why it has been introduced and why prices have increased – so they can explain this to any customers who may be frustrated by the price increase.

Own brand

While some products may see a significant rise in cost for retailers and customers, Landmark’s own-brand Lifestyle and LSV ranges will not increase in price.

One in five

soft drinks sold in convenience stores is water

Promoting healthy options

While choosing and displaying soft drinks carefully is key, you can go further to help your customers make healthier choices by cross-merchandising low- and no-sugar drinks with products to make a healthy lunch, such as wraps and salads, fruit and low-calorie and low-fat snacks. You could even dedicate a display to healthier food and drink options to encourage healthy choices and include options for children on their way home from school, such as a Robinsons Fruit Shoot and a piece of fruit. As the soft drinks category is the thirdmost-important driver of convenience store visits, according to the Britvic Soft Drinks Review, by stocking healthier alternatives to high-sugar drinks, you can grow sales and be in a prime position to benefit from the levy.



Easter

Chocs away The countdown is on to one of the biggest events in the retail calendar. Are you hoping for an egg-citing Easter?

What’s hot to stock Children love little things they can easily hold (and eat!)

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W

hen you think of Easter, it’s not just bunnies and chocolate that spring to mind, it’s sales, sales, sales! And, there’s not long to wait. It’s a shorter season this year, with Easter Sunday falling early on 1 April 2018, so if you haven’t already, get the first of your Easter lines on your shelves. With the self-eat category worth around £62m, impulse buys such as Cadbury Creme Eggs are ideal to get the ball rolling. Keep the momentum going by adding the popular hollow figures and sharing packs such as Cadbury Egg ‘n’ Spoon and smaller shell eggs to your range, then follow up with a selection of larger shell eggs and luxury options. Gifting Easter eggs and chocolate accounts for more than 60% of chocolate sales over Easter, so it’s essential you stock a good range of shell


eggs as well as larger eggs and more premium options. With so many new product launches it can make your head spin trying to decide what to stock. To help structure your range and displays, break it down into four simple sections: children, teens, adults, and premium.

on a mission

Bear in mind the four shopping missions too: chocolate to eat now, products to eat when socialising, gifting chocolate and products for egg hunts. Organise your displays with similar products grouped together and by brand. It’s also worth pulling out the bestselling lines and new

products for a separate display to interrupt customers as they shop. Shell eggs, cream-filled eggs and novelties all enjoyed healthy increases last year and saw Brits shell out £327.9m, so keep a selection by till points too for those impulse purchases.

Be competitive

Did you know? One Cadbury Creme Egg was sold every 10 seconds during the 2017 Easter season in the UK

It’s an extremely competitive time of year, so make sure you’re offering discounts and multi-buy deals. Advertise your offers clearly in store and on social media. Focus on those impulse purchases with ‘3 for 2’ or ‘2 for £1’ offers, for example. For small shell eggs, ‘3 for 2’ offers work well, while a general discount on large, premium and gifting will encourage your customers to trade up. Use a gondola end or freestanding site to showcase all the products you have on offer to really draw attention to them.

While some teens may think Easter’s far from cool, we all know they’d be disappointed if the Easter Bunny didn’t bring them anything...

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Easter

The hunt is on

Over the past few years Easter egg hunts have become increasingly popular. Make the most of this by stocking a wide variety of items that can be used as prizes and products that do it all for customers, such as new Cadbury Egg Hunt pack, super-sized for 2018, and Smarties and Milkybar Egg Hunt packs. Position these in their own section in displays to make it easy for shoppers to find.

Grab your share by turning your attention to creating in-store theatre to draw shoppers in. With almost eight out of ten consumers buying chocolate at Easter, take advantage of the huge opportunity this presents with eye-catching displays. Create your own signage or put any POS from Lifestyle Express or suppliers to good

Make your store the one to choose

Easter is now worth £424m to retailers and is growing at 7.9%, according to Mondelēz.

Did you know?

Easter is now worth £424m to retailers and still growing

use to make displays stand out. Use gondola ends to showcase your special offers and dedicate a whole section of shelving to Easter products, if you have space.

RISE TO THE OCCASION

Could you hold Easter-themed events in your store? It could be as simple as a colouring competition with prizes for different age categories or a craft table for little ones. How about hiding chocolate treats each day in your store and inviting children to find them? An Easter bonnet competition is a traditional favourite – you could ask children to come into store one day wearing their handmade Easter bonnets and award prizes to the best. Organise your own Easter egg hunt in your store or local area. Award-winning Lifestyle Express retailer Bay Bashir holds one every year with great success – it drives up custom and generates plenty of goodwill, putting his store front of mind for local shoppers who want to support him. Whatever you decide to do will make a positive impression in your local community, which will be great for your business.

For adult chocolate fans, stock up on larger shell eggs and egg-in-a-mug variants

Nestlé’s premium eggs grew

5.8% in 2017

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Finally, it pays to provide a premium offering



Store improvements

s s e c c su T

r o f t s e Inv If you’re looking to secure your future and make your store a success, it’s time to put your money where your mouth is

he phrase ‘speculate to accumulate’ has been proved right time and time again, and nowhere more so than in the retail sector. Imagine yourself as a customer. Where would you choose to shop: a tired store that looked dark and cluttered, or a bright, modern store with gleaming shelves and chillers? Let’s be honest, there’s no competition? So if your store is facing fierce competition and needs to step up its game, it’s time to

consider your options. Talk to the Lifestyle Express team and they’ll assess your store and discuss all the options with you. Whether you go with a full refit to really deliver kerb appeal or an update to your existing store layout and some new window vinyls and fascia, you can be sure to wow your customers and win their custom. We asked the Lifestyle Express team to share some of their past store refits or refreshes that have revolutionised retailers’ stores.

John Farrell, Retail Operations Manager

T

his store, which sits next to a railway station in the west end of Glasgow, hadn’t been refurbished since the 1960s and desperately needed some love and attention – it still had timber shelves. After talking with the retailer about what he wanted to achieve, we decided to scrap the entire store layout to make the most of the space he had available. In its place, we created a modern, bright, streamlined store, and freed up enough space to introduce a new hot drinks and snacking section which has been a real hit with locals and commuters alike. As a result, the retailer has increased his turnover from £2,500 per week to £10,000 which is still rising. He’s now in the process of buying land either side of the building with a view to extending his store and has ambitious plans for the future.

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To drive up standards, this store’s entire layout was scrapped, replaced with new shelving, fixtures and an airy layout

Before


Matthew Wakelam, Retail Development Manager

F

Before Moving the counter to the front has opened up the store and made it more inviting for customers, plus the retailer has seen a dramatic rise in sales

Before

The store was previously cramped and cluttered with dead-end aisles, but now has a modern new look and the retailer has seen a dramatic sales uplift

or one retailer, the biggest change we made was moving his counter to the front of the store. He was reluctant, but was won over by our plans. We explained that if the counter is at the rear of the store, customers will head straight there, missing all the stock on the way. If the counter is at the front of the store, nine times out of ten customers will shop the complete store before returning to the counter to pay. This can be a real boost for stores suffering from flagging sales. For this Midlands-based retailer (pictured left), moving the counter as part of a full store refit has really reaped benefits and immediately he saw a sales increase of 20%. Another retailer had a store that was bursting at the seams, packed full of freestanding promotional stands and dead-end aisles. We know that for a successful store, flow is crucial. Customers should be able to shop the complete store without coming to a dead end. If the end of an aisle is blocked, customers won’t shop those fixtures and this will directly impact on sales. Promotional and seasonal stands are a fantastic way to attract attention but only if used in the right place as too many can make a store feel cramped and cluttered, causing aisles to be blocked and stock to be obscured. As part of his store refit, we created a new, airy store layout with no dead ends, making the most of the space he had available. As a result, his sales increased dramatically.

Before

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➼


Store improvements

Before

Derek Ramsay, Retail Development Manager

T

his Glasgow-based retailer has carried out two mini refits to his store in the last few years, the most recent taking place during 2017. The key challenge facing any retailer with a smaller store is always the same: how to make the most of the size available. And, for a store of this size, just 500 square feet, getting the most value from every inch is critical. This particular store also has no passing trade and relies heavily on custom from nearby residents to survive. Faced with competition nearby, it was quickly becoming clear that this retailer needed to make some dramatic changes to increase sales, footfall and the store’s overall profitability. As a result of the most recent refit, we added a new 5000mm fridge with doors to increase the store’s capacity for soft drinks and chilled produce. We increased the gondola height to add more space for additional merchandising and we increased the linear meterage which has allowed the retailer to increase his range of bread and cakes which had been selling really well. We also added new side wings on the promotional bays to drive up sales in the impulse categories. The rest of the store has also been laid out differently. Customer feedback is excellent and sales are great, and the retailer already has plans to add an off-licence to the store.

Before

Adding a new 5000mm chiller has meant the retailer can make more of chilled and soft drinks, while additional shelving means he has been able to add more stock and make more sales

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Store improvements

Craig Bourne, Retail Operations Manager

A

Llanelli-based retailer purchased a Spar store which sat in a row of terraced houses and hadn’t been updated for more than 20 years. Despite the original brief to just give the store a refresh, it quickly became clear that we needed to rethink the store’s layout to make the most of the space they had available and suit trading conditions today. Some of the major changes we suggested were to expand his basic off-licence offering from a 1800mm chiller and some ambient shelving to really drive sales of this key category. Other categories were over indexed, such as news, tobacco and traditional canned grocery which meant that his impulse categories were neglected. Alongside this, the store’s refrigeration and lighting were dated and inefficient, and it was obvious that the store needed to be gutted and refitted from scratch. With the retailer fully behind the plans, we were able to extend the store’s frozen foods, chilled alcohol and soft drink offering and introduced hot drinks and food to go while maintaining a good Before grocery range. By continuing the overhaul outside, we gave the store instant kerb appeal with our premium grey fascia. The entire project cost close to £60,000 and even though the retailer had reduced prices throughout the store, he saw an immediate uplift in sales of 30% which has continued to increase as the store settles down. This uplift in sales will more than cover the cost of the refit over the three years it will take to pay for the investment.

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Replacing a tired exterior, the new grey Lifestyle Express fascia instantly delivers real kerb appeal for shoppers

The retailer was keen to ring in the changes and by extending his off licence offer, replacing the refrigeration and lighting and creating a brand new store layout, footfall increased dramatically and sales were up by 30%

Before

Previously cluttered and hard to navigate, the store is now easy to walk around and identify products

Before


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Store profile

Store Profile

With a little help from his friends More than 20 years of experience and a helping hand from the Lifestyle Express team helped one retailer in Kings Norton get his store back on track. ➼ issue 46 2018

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Store profile

Fact file Location: Kings Norton,

West Midlands

Trading times: Mon–Sat

7am–8pm; Sun 8am–4pm

top tip

Nearest Two convenience competition:

Your customers will appreciate you going above and beyond to help them, such as making a note of products they’re after that you don’t currently stock.

stores and supermarket 15 minutes’ walk away

Features: ATM, National Lottery, off-licence, PayPoint, newspapers

Staff:

Three including Mohammed

W

hen Mohammed Amjad Niaz’s independent convenience store on Lime Kiln Close in Kings Norton, West Midlands was struggling to attract customers, he almost closed the doors forever. In one final push to increase his footfall, he instead decided to relaunch his store as a Lifestyle Express store. Now, just a few months later, his turnover has doubled and the store’s prospects are looking rosier than ever. “We were really struggling to get people through the doors,” said Mohammed. “It

36

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“I contacted the Lifestyle Express team and they couldn’t have been more helpful.”

was a real challenge and I came very close to giving the shop up for good because no matter what we tried, it just didn’t work. However, I contacted Lifestyle Express after my brother recommended it. He’d had a Lifestyle Express store for two years and had had a really good experience, so I contacted the team and they couldn’t have been more helpful. “They helped me to redesign the shop floor with the addition of a brand-new off-licence. Adding this was a huge decision and it was a risk to take because of the expense, but the Lifestyle Express team really put my mind at ease and I’m so glad I did it. Our average weekly turnover was just below £4,000 before we made the change and it’s doubled to more than £8,000 and is still growing. It’s been hard work of course, but it’s made a huge difference to my sales. Shoppers have been flooding in since we’ve opened as a Lifestyle ➥


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Store profile

“I live and breathe retail - it’s in my blood and I couldn’t imagine doing anything else.”

Express and I’ve had great feedback from customers who love the look and feel of the store and the new off-licence too.”

TRICKS OF THE TRADE

Originally from Pakistan, Mohammed has worked in retail ever since he moved to the UK 20 years ago: “I live and breathe retail – it’s in my blood and I couldn’t imagine doing anything else. It’s so wonderful to be able to look around your store and feel proud of what you’re doing and know that its success is down to sheer hard work.” Mohammed knows that his store is a lifeline to local customers. With the nearest competition a 15-minute walk away, his customers rely on his store to get their daily essentials. “We have a lot of regular

top tip I’ve noticed, especially with tobacco, that if a customer comes in for their favourite brand and you don’t have it, they may not come back. This is why for me, availability is absolutely crucial.

customers and you get to know their faces. It feels like a real community,” he said. “I always try and remember names and small details such as customers’ preferred brands of cigarette or alcohol. It makes a real difference to them to know that I value their business.” Mohammed also understands why customer service is so key. “It’s so easy to be friendly to customers. Holding the door open or just simply saying good morning as they walk into the store can really stick in their mind and make the difference between them visiting again or not. Some of our customers may not speak to anyone all day, so it’s nice to think that they can visit the store for more than just their groceries but also a chat about the day.” Having such a rich career in retail teaches you invaluable tricks of the trade, and Mohammed learned very quickly the importance of keeping your store fully stocked: “It’s really important to make sure that your customers can get everything they’re looking for at your store. You get to realise very quickly that if a customer can’t get everything they’re looking for, such as

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Store profile

“Sometimes there’s a product you won’t have in stock so I make notes in a notepad I keep by the counter. This shows customers their needs come first.”

a particular brand of cigarettes, they will go elsewhere and you may not see them again. So, it’s very important to make sure you’re fully stocked up at all times.” Mohammed also makes sure that if he doesn’t currently stock a product that a customer is looking for, he’ll make a note of the product and try his best to stock it in future: “Sometimes it’s inevitable that there will be a product you don’t have in stock, but by keeping a notepad and pen under the counter and making an effort to show the customer that you’re writing down their request and encouraging them to check back in store in a couple of days, you’ll really impress them. Small details often stick in customers’ minds and they may even spread the word for you about how helpful you are.” ➥ 40

retailer issue 46 2018

top tip

My top tip might be the simplest. Be friendly to your customers and always remember to talk to them. It’s a cliché but service with a smile really is the key to your customers remembering you and visiting you again.



Store profile

IT’S ALL IN THE PROMOTION

Promotions are great for pulling in customers and Mohammed knows his promotions can make the difference between a customer visiting his store or the competition a mile down the road: “My customers are always looking for ways to save money and so I make the most of the Lifestyle promotions which are excellent.” Mohammed is so committed to spreading the word that he regularly goes out on foot to hand-post leaflets advertising his upcoming promotions to the local area. “Every couple of months I will walk around the neighbourhood and post leaflets through doors to make sure people are aware of our upcoming promotions. It always works and my footfall hugely increases every time as a result. There’s a balance, though, as nobody likes spam mail, so I make sure I stick to posting them every two or three months as I know it may have the opposite effect if I annoy people!”

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“Customers are always looking for ways to save money so I make the most of the Lifestyle promotions. Promotions drive up sales and footfall so I post leaflets regularly to remind customers of the great value I offer.”

Mohammed’s bestseller basket


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competitors who are selling tobacco and cigarettes at the right price. And, when those customers go elsewhere, they’ll also buy their extra items too, such as milk, bread, confectionery and newspapers. This poses a very real risk to your business. Is it really worth it? ➥

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issue 46 2018

retailer

45


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retailer issue 46 2018

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Food to go

Staying ahead

of the game When it comes to driving footfall and boosting sales, food to go continually tops customers’ most wanted list

N

ew statistics released last year by IGD (the grocery think tank) revealed that convenience stores are in line for a £900m bonus from the growth in food-to-go sales over the next five years. The food-to-go market was reported to be worth £17.4bn in 2017 and this looks set to grow to £23bn by 2022. So, if food to go isn’t already on your radar, now’s the perfect time to explore what you could offer to make the most out of this amazing opportunity.

Wake me up before you go go

It’s the most important meal of the day so it’s hardly surprising that breakfast is a key player in food to go. Whether it’s children on their way to school or commuters on their way to work, grabbing a quick bite and a hot drink is fast becoming the way to eat on the move. However, before you look to add breakfast options, take a look at the local competition. What are they offering, or more importantly, what are they missing? It ➥

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Food to go

pays to look at what your customers could get elsewhere and discover ways you can offer something different or more for less. There are so many ways you can be inventive. If other local stores already have hot drinks machines, you could entice customers with breakfast meal deals, such as a free hot drink with a pastry or breakfast sandwich. How about a ‘Friday Feeling’ promotion offering 50% off any hot drinks purchased between 8am–9am? Alternatively, you could give customers a loyalty card to stamp each time they purchase a hot drink and offer a free hot drink when they collect ten stamps.

bread’s on the rise

The most important thing is to suit your location. If you’re surrounded by takeaways, opt to go simple – sandwiches, crisps, savoury snacks with meal deals. Or, get creative with hot options like curries or soups. It’s essential to offer something customers can’t easily get elsewhere. You may remember that in our last issue we featured store manager Rose Rickett from Lifestyle Express, Walsall. Rose was keen to find innovative ways to meet the needs of her local community and jumped at the chance to offer freshly baked bread in house as a point of difference: “We are the only store in the area that serves hot food and baked products,” said Rose. “We spotted an opportunity for a bakery so we converted part of our store room to make space.” As a result, Rose’s in-store bakery has become hugely popular with customers coming in daily to buy their freshly baked bread. Rose also spotted a gap in the market for healthy options so now offers freshly prepared fruit trays.

Home is where the heart is

A fantastic opportunity to get stand-out appeal is to offer locally sourced produce. Do some research in your local area, and see if there’s a local baker you can source your bread from or a local supplier of cooked, cold meats. Customers like to know where food comes from and will happily support local businesses, so word is bound to spread if you offer produce from local suppliers such as farms, bakers and butchers.

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retailer issue 46 2018

“Offering something different such a breakfast meal deal with a hot drink, pastry or breakfast sandwich will entice customers, especially with a free hot drink.”

There is also increased demand among 18–25-year-olds for a wider variety of vegan, vegetarian and gluten-free products, so try adding those to really turn heads. A study in 2017 by IGD revealed that 30% of 18 to 25 year olds “completed a foodto-go” mission on their last shopping trip, compared to 13% of older customers. The study found that 48% of this younger age group buy food to go when shopping in convenience stores, compared with just a quarter of other shoppers. So with this in mind, put your thinking caps on to find new ways you can attract younger shoppers into your store with hot dogs or noodle or pasta pots, for example.

DELI-CIOUS

Deli counters are incredibly popular and there are a variety of ways you can embrace this popular trend. Popular options include counters with freshly made baguettes, hams, cheeses, pies and pasties. And, even tastier than the offering, deli counters have been known to increase sales by as much as 20%, so by offering your customers something a little bit different not only will you be standing out against the crowd but you’ll also be increasing your margins as a result.


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Store profile

‘It’s all about moving with the times’ Ten years after choosing Lifestyle Express, it’s clear that husband-andwife retail team Bobby and Raj Singh know the recipe for success Fact file Location: Kilbirnie,

North Ayrshire, Scotland

Trading times: Mon-Thurs

6am–8pm; Fri & Sat 6am–9pm; Sun 7am–5pm

Competition: Tesco superstore less then a mile away

Features: ATM, deli counter food-to-go, off licence

Staff: Five, including

Bobby and Raj

B

obby and Raj Singh have been in retail their whole lives and so when they decided to convert their store, the Newhouse Mini-Market in Kilbirnie, from a Lifestyle Express into a Lifestyle Extra six months ago, they knew they were already on a winning streak. “The store looks amazing, but we knew it would,” said Raj. “We’ve upgraded to the latest Lifestyle branding and we’ve received so many comments from our customers about how impressed they are with the store, so we’re delighted.” “It’s also meant that we can expand and offer our customers much more variety which is always a good thing,” Bobby added. “More than anything – we know that in ➥

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Store profile

retail, it’s important to shake things up every so often, so giving the store a completely new look was a great way of doing that.”

A sign of the times

Raj and Bobby know that in their industry, standing still might be one of the worst things you can do: “It’s all about moving with the times and if you don’t then you won’t succeed – it’s as simple as that,” said Raj. “Nothing stays the same in retail and just as soon as you think you’ve sussed it all out, something will change and you have the chance to tap a whole new source of revenue. For example, we’ve noticed that shoppers don’t want just single bags of crisps anymore, they prefer multipacks for great value. Shopping trends are always changing as customers’ priorities change. As a result, we have to try to predict where trends are heading and provide what customers want and need or we’d get left behind.” Clearly an expert in retail, Raj learned her trade from a very young age, having grown up helping her parents in their own convenience store. From facing up shelves to helping out behind the till, this experience gave Raj the opportunity to witness first hand what works and what doesn’t when it comes to delivering great service and making your store a success.

top tip If you want to stand out, the best way is to ensure you always deliver great customer service. We trained our staff via the Lifestyle Learning Academy which was a brilliant starting point full of great ways to make a difference.

“I was very much born and bred into retail,” Raj said. “I learnt so much from my parents as I grew up helping in the family store. The combination of their wealth of experience plus our fresh thinking and awareness of retail trends means we’re never scared to try something new and take a risk in the process. “One example was introducing trolleys which to some seemed an odd choice. However, we recognised that many of our shoppers use our store to do their weekly shop and they were struggling to fit everything into a basket. We added trolleys and these have become a real lifeline for our elderly customers. We even went one step further and allocated a member of staff to help customers push the trolleys around the store and we’ve had so many lovely comments as a result.” In retail, there are always new things to ➥

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Store profile

try: “Social media is a perfect example,” said Bobby. “We use it constantly to publicise our latest promotions and raise awareness of the store. All the young people are on there, so we know it helps to draw in a new generation of shoppers.”

Power to the people

top tip Your customers will keep coming back if they know that they’ll find exactly what they’re after and for a great price. So, keep your eyes peeled and your ears open and you might find that your customers help you to know exactly where to take your store next.

So how exactly do they keep progressing? It’s simple: Raj and Bobby don’t just wait for new ideas to hit them, they actively survey their customers to find out exactly what it is they want. “We listen to every single customer request and we proactively find out if there’s anything specific customers want to see in store and what would make them more likely to visit us rather than our local competition,” said Raj. “I think our customers like to see that they have an impact on their local store,” Bobby added. “For them, it’s not our store, it’s their store, and that’s wonderful. It’s always good to see the smiles on their faces when they see we’ve implemented something they asked for. In fact, we carried out a survey recently, and our customers asked for a free-to-use ATM machine, a hot drinks machine and a hook to tie their dog leads to outside. Yes, these things needed investment but they’ve been more than worth it as they get used every single day.”

Feeling hot, hot, hot

It was purely a coincidence that led to the couple stumbling across what would soon be a huge source of income for the store – hot food to go. When Raj was making a batch of curry in the couple’s home one day, so many customers commented on the delicious

smells coming from the kitchen that she decided to take the plunge and have a go at selling it in store. Little did she know it would become hugely successful; it soon became the store’s pièce-de-résistance and became so popular that Raj and Bobby eventually had to take on an extra member of staff to help meet demand: “I never expected it to be anywhere near as successful as it was.” Raj laughed. “We’ve actually had to stop selling the curry for a little while because we simply couldn’t keep up with the demand. This is a great problem to have but a shame at the same time as we’re missing out on ➥

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Store profile

top tip

opportunities. Saying that, we’re still planning on selling a variety of hot and cold food to suit the seasons and we hope to be able to kick-start our famous curries again when we can. In the meantime, we’ll sell homemade soup.”

bumps in the road

It’s not all been plain sailing for Raj and Bobby though; they’ve encountered several challenges along the way. “A big supermarket has just been built nearby and we already have quite a lot of competition close to us, which can be a challenge. One supermarket in particular had a refit just after ours, which was disappointing but we quickly found the positives and spotted some opportunities in the situation. As part of their refit, they decided to get rid of their bakery so, guess what we’re adding to our store?” laughed Raj. “In all seriousness, we know that there’s quite fierce competition out there so we constantly make sure we look at what they’re offering and use it to make sure we’re ahead of the game, whether it’s offering more competitive prices or finding a service that no one else in the area offers. We introduced a dry-cleaning service, for example, which is hugely popular as no one else in the area offers that service and we found customers really appreciate the convenience. “We know that customer service can often be slow in one of the nearby stores, so in our store we’ve installed three tills which means that our service is speedy and top notch. We never forget that customers need to get in, get what they want, and get out without any fuss or delay.” So what is the secret to the couple’s retailing success as it’s clear it’s working wonderfully? The couple aren’t sure but admit it’s a winning recipe. “We must be doing something right because people keep coming back!” Raj said.

It’s obviously important to also treat elderly customers with great customer service too, but young people are the future. Make sure you’re engaging with them and finding out what they’re looking for. If you get loyal young customers now, they’re likely to be with you for a very long time.

Raj & Bobby’s bestseller basket

58

retailer issue 46 2018


*IRI SIG Pet Outlets Value Sales and Market Share 52 w/e 4th November 2017. ®Reg. Trademark of Société des Produits Nestlé S.A.


coming in your may/june issue... three cheers for beer

From lager to bitter, craft ales to stout, is your chiller packed with the right stock?

coffee wakes up sales

How adding hot drinks has changed the fortunes of one retailer

summer’s coming

The sunshine means one thing - hot sales!

energy low

Is a ban on energy drinks for under 16s on the cards? THE

LEARNING

ACADEMY

learning while earning Footie fever

Celebrate the beautiful game with some stunning sales

Plus 60

Have you logged onto the Lifestyle Learning Academy yet? If not, why not?

Industry news and updates, hints and tips and the latest must-stock products

retailer issue 46 2018


is Vimto st te the fas g growin d an RTD br ** up 2.8%

Vimtox Remi h wort £6.2m

Vimto e alu brand v.2m of £76 +5%

Source: Nielsen Scantrack Value Sales, Total Coverage, MAT 30.12.17 *avaiable as plain pack **Brands over £15m

Seriously Mixed Up Fruit


the

Lowdown

Make your Easter sales

egg-straordinary We all know What are shoppers that Easter, with its brightly coloured foil-wrapped Easter eggs goodies, fluffy chicks and roast lamb, is a boom time for Alcohol retail but there’s far more to success at Easter than of convenience store just stocking shoppers tend to purchase up on their Easter goods during chocolate eggs the last two weeks

purchasing at Easter?

91%

56%

44%

42%

39%

39%

Novelty chocolates

59%

building up to Easter

Retailers view Easter as the second most important season when it comes to growing sales, just behind Christmas 62 lifestyle retailer

In c-stores, alcohol is the most commonly purchased item at Easter

Cards

Boxed chocolates

Flowers

On average

6 out of 10 shoppers are planning to make a homecooked meal to celebrate Easter

For more information. . .

. . . on him!’s research, please contact info@him.uk.com

issue 46 2018


CE

LE

BR

AT

ING

TH F O RS A E Y

E

N AT I O N ’ S F A V O U R I T E A FL

V

RS OU

OF THE DE CA DE S

S TO C K U P N OW !



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