Retailer Matters
Issue
37 Sep/Oct 2016
The magazine exclusively for Lifestyle Express retailers
DON’T MISS
Sweet taste of success
Follow our tips to make your soft drinks sales soar
Ice, ice baby
Why frozen is a hit
Act on impulse Drive up those added extras
The
The facts and figures about retail show convenience as the way forward for UK shoppers
Ex cl fr usi om ve ly
future’s bright Plus. . . RETAILERS’ INSPIRING STORIES ■ INDUSTRY NEWS ■ NEW PRODUCTS RM37_p01_Cover_v4.indd 1
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Hello…
37
… and welcome to the latest issue of
Retailer Matters is published six times a year by Made By Sonder Ltd on behalf of Landmark Wholesale.
Retailer Matters. As the summer days slowly but surely fade away, it’s time to turn our attention to the autumn
FOR LANDMARK Stuart Johnson FOR SONDER Editor Stephenie Shaw Assistant Editor Emily Craft Sub Editor Kate Feasey Senior Art Editor Emma Bramwell Account Manager Adam Turner Managing Director Simon Chappell TO ADVERTISE Please contact Adam Turner on 07702 368651 or email adam.turner@ madebysonder. com TO DISCUSS EDITORIAL Please contact Stephenie Shaw on 07921 928464 or email stephenie.shaw@ madebysonder. com Made By Sonder Ltd, Victoria Court, 8 Dormer Place, Leamington Spa, Warwickshire CV32 5AE Disclaimer: All prices listed are correct at the time of going to press, but may be subject to change.
and all that lies ahead. With Halloween growing in popularity year after year, it’s definitely an occasion to make the most of. Whether you decorate your store, stock up on sweets or pack out the shelves with pumpkins, it’s guaranteed to raise a smile – and your sales. In this issue we bring you the latest thoughts on convenience thanks to research from him! Consulting & Research. On page 37, you can find out what the trends are for the convenience sector and how you can ensure you’re always meeting your customers’ needs. We also explore soft drinks, which are enormously important for convenience retailers. If you want to really make the most of this category, turn to page 17 for some great ideas. And, as always, we bring you some fantastic
17
examples of retailers really driving forward their businesses and I hope that some of their experiences and top tips will inspire you for your business. If you have a store that you think could inspire others, get in touch, we’d love to hear from you.
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 Retailer Matters. Just email
retailermatters@ madebysonder. com ISSUE 37 2016
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Contents 07 13
28 07 Need to know The latest news and views from around the industry
13 ones to watch Our guide to the key must-stock products of the season
28 store profile Kesh Bagha knows exactly how to run a successful store and is a shining example of retailing excellence
45 store profile Pav and Happy are the dynamic duo behind their revitalised store that keeps pulling in customers
48 Your guide to. . . … own-brand products
62 the lowdown Landmark Wholesale’s latest promotion and what to look forward to in the next issue
on the cover Thanks to cover star Kesh Bagha from Lifestyle Express, Rutherglen (p28)
17 soft drinks future’s 22 the Frozen
Don’t miss the huge potential of this category
How to get your freezers right for significant sales
37 convenience facts & figures The opportunities for convenience retailers made crystal clear
22
55
you need 55 All to know...… … about driving up impulse spending
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Need to know Drive up business ONE WHOLESALER IS taking a new approach to driving up awareness of its Lifestyle Express stores, and it’s capturing a lot of attention. United Wholesale Grocers, based in Glasgow, has designed several of its delivery lorries to look like a Lifestyle Express store front to spread the word locally about the stores.
EYE-CATCHING
“All delivery vehicles tend to look the same, so it was important to upgrade our branding to capture our target audience,” said Amaan Ramzan, Director at United Wholesale Grocers. “While people may recognise the Lifestyle Express logo, we wanted to bring the brand to life and, by featuring a store
Going green Plastic bag usage in England has fallen by 80% since the 5p charge was introduced, saving 40,801 tonnes of plastic and raising more than £29.2m for good causes.
front with real people, it’s really improved consumer awareness of Lifestyle Express.” And the response has been fantastic. “Feedback has been phenomenal,” said Amaan. “The lorries are really capturing people’s attention and everyone loves them, including customers, staff and suppliers. It is good to see they appreciate our
Proof of age scheme rolls out in Scotland A PROOF OF AGE compliance scheme aimed at supporting independent retailers and protecting young people from accessing tobacco products is being rolled out across Scotland. The Responsible Tobacco Retailing (RTR) scheme will see 480 Scottish retailers – 10% of all independent retailers in Scotland – mystery shopped to see if they are ‘at risk’ of
What’s hot …
potentially selling tobacco products to people under 18, and will be offered free training support if they are. The first RTR annual report revealed a 19.6% improvement in performance from retailers during the first year of the
investment and commitment to the brand.”
ROLL-OUT
Currently, the Lifestyle Express branding features on four lorries, with the aim to roll it out to the entire fleet by the end of the year. The company has two depots in Glasgow, in Polmadie and Springburn, and is a member of Landmark Wholesale. programme, which launched in March 2015. Under Age Sales Managing Director Tony Allen said: “We are by no means trying to catch retailers out with the test purchases. We simply want to identify those that may be at risk of selling tobacco to children and help them take the necessary steps to protect themselves. “By empowering and enabling retailers to meet their obligations and become gatekeepers to stop under 18s accessing tobacco, we can all work together to raise standards across the board and make a real difference to communities across Scotland and the rest of the UK.”
tech surges ahead Small top-up grocery deliveries may well be delivered by drone as Amazon gets the go-ahead to begin trials to get closer to its promise to deliver parcels in just 30 minutes.
HOT, HOT, HOT Retailers looking to boost their sales should focus on food-to-go as IGD research shows that the category will rise in value to a whopping £16bn.
What’s not… retail’s future Concerns are growing about the future in light of the National Living Wage, pensions and Brexit.
energy fade? A new report has urged a sales clampdown and restrictions on how energy drinks can be marketed to children due to worries about caffeine and sugar.
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Need to know
Spook up your store and see sales rise With Halloween now a firm fixture on the retail calendar, ignore it at your peril WITH SALES OF SPOOKY products jumping by 3,000% since 2001, it’s no surprise that Halloween has become one of the biggest retail events of the year. Research shows that last year, UK shoppers spent a staggering £300-400 million on ghoulishthemed items, trick or treat goodies, costumes, decorations and pumpkins. While data from YouGov shows that only 22% of adults celebrate Halloween, the figure is far higher for youngsters, with 40% of those aged 18-24 and 31% of those aged 25-40 getting into the spirit. It seems that more and more shoppers are making Halloween a whole
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Did you know? Halloween is now worth a staggering
£300m according to Mintel research
family event, throwing fancy dress parties and get-togethers, which, of course, call for costumes, accessories, decorations, and Halloweeninspired foods and drinks. So the challenge is how retailers can really make the most of this spooktacular time. Retailer Matters would recommend that if you want to grab attention this Halloween, look at stocking: ■ plastic buckets or tubs for children to go trick or treating ■ multipacks of sweets and treats at great value ■ real pumpkins (remember to position tea lights close by) ■ carving sets ■ light-up pumpkins ■ costumes and accessories, such as masks, fangs, witch hats and broomsticks ■ fake blood and ghoulish make-up ■ fake cobwebs. The supermarkets really go to town on Halloween displays, so
beat them at it. As you get closer to 31 October, think about adding a spooky soundtrack, decorating your store with cobwebs and encouraging staff to go all out on costumes and make-up. Your customers will love you for it.
Remember, remember
Don’t neglect the basics for Bonfire Night, which is hot on Halloween’s heels. Stock up on the essentials for a roaring trade. Think toffee apples, hot dog rolls, sausages, baking potatoes, beers, wines and ciders and you can’t go wrong.
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Need to know
In the know James Lowman, Chief Executive at Association of Convenience Stores, tackles energy
A
s the new government takes shape under the leadership of Prime Minister Theresa May, we are beginning to learn what priorities each department will have going forward. One of the biggest shake-ups within government is the restructure of the Department for Business to include the now-defunct Department for Energy & Climate Change, in what is to be known as the Department
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for Business, Energy & Industrial Strategy. Obviously, this new department will have a much wider remit, so there’s a chance that without intervention, many of the issues that the previous Department for Energy were dealing with could slip off the radar. We know from our research and from talking to retailers that energy costs and standards of conduct remain a significant concern in our sector, so we need to ensure that our voice is heard within this new department.
Investigation Over the last two years, the Competition and Markets Authority has been investigating the energy market to see if it is operating fairly. Its conclusions were broad and included some positive recommendations, but the negative
side effect of the investigation was that OFGEM, essentially, put its efforts to clean up the small business energy market on hold while the investigation was going on. There are still significant issues with energy contracts for retailers, especially when it comes to the activity of third party intermediaries (energy brokers). We are calling for the energy broker market to be regulated by a robust code of practice, and for OFGEM and the new Business and Energy department ARE YOU to work together to CONCERNEDGY ABOUT ENE?R take action as COSTS soon as possible Tweet us ops to make this @ACS_localsh or call 01 happen. 50 51 2 0125
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Ones TO watch The crop of the new products, plus a Halloween special round-up
Spice things up
On-the-go better value than ever McVitie’s has added three ‘Any 2 for £1’ price-marked packs to its on-the-go cake range. The products are available in six variants including Hobnobs Flapjack with Milk Choc, Digestives Milk
Chocolate Slice and Digestives Caramel Millionaire Slice. As part of the relaunch, a smaller 12-pack case size with a longer shelf life will replace all previous 24 and 18-pack cases.
Nando’s Peri-Peri Salt is a delicious blend of salt and spices with Peri-Peri. It works brilliantly on chicken, as well as on any side dish or snack, from crisps and popcorn to mashed potato and corn on the cob, adding flavour, zest and a gentle dash of heat to any meal.
popcorn with a twist
Water way to go
Capturing the growing demand for flavoured waters, Landmark Wholesale has launched Früqua. Available in three flavours – Strawberry & Kiwi, Lemon & Lime, and Apple & Blackcurrant – all with no added sugar, Früqua is an important addition to the soft drinks category to help independent retailers meet consumer demand for healthier options. With a 35p price-mark (500ml) and a 32% margin, Früqua provides fantastic value for consumers and retailers.
Shoppers looking for a snack with a difference will be delighted to spot the latest Poptang Popcorn products in Apple Tango and Orange Tango flavours. “Poptang is about to make a fruity explosion in the snack world – a fizz-tastic new snack, which will tang the socks off the nation,” said Tony Goodman, Yumsh Snacks Chief Executive. Available in 20g and 70g bags.
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Ones TO watch
Can it! The Crabbie’s Alcoholic Ginger Beer range has launched a 250ml can format. The cans include three variants: Crabbie’s Original, Light Ginger and Scottish Raspberry, with price-marked packs
available at 2 for £2.50. “The introduction of cans provides greater convenience for both retailers and consumers,” said Michelle Chadwick, Senior Brand Manager for Crabbie’s Alcoholic Ginger Beer.
Black and white
PRIZES up for grabs Retailers can win cash prizes and free product as Boost Drinks celebrates its 15th anniversary. Boost has sold its sports and energy drinks exclusively through the independent channel since its launch in 2001. The brand is firmly committed to its Champion of the Independents initiative as it looks to build on its market status, with 7% year-on-year growth and 16% market share. The £25,000 prize fund for retailers is part of a summer-long campaign whereby retailers can win prizes of 15 cases of product, £15 Boost vouchers and £15,000 in cash. Fifteen special anniversary crystal bottles, which can each be redeemed for £1,000 cash, have been hidden among stock.
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Pampered pets
Doritos has launched a new campaign that offers shoppers the chance to eliminate one of two new flavours, either Sizzling Salsa or Ultimate Cheeseburger, and win £20,000. The prize forms part of a competition inviting consumers to come up with creative ways to ‘eliminate’ their least preferred flavour. Entries can be submitted via Facebook, Twitter or at aorb.doritos.com using the hashtag #DoritosA or #DoritosB for the flavour they want to eliminate. RRP £1.99, 200g
For those wanting to give their pets a warming treat, Mars Petcare has launched Whiskas Creamy Soups; a balanced meal containing meaty pieces in a creamy sauce. Katie Griffiths, Whiskas Brand Director, said: “Whiskas Creamy Soups offers something completely new for cats – and our consumer research has shown excitement and demand for innovation like this in the Cat Single Serve category.” Whiskas Creamy Soups are available in three selections: Poultry, Fish and Meaty. Packs of 12 carry a recommended promotional price of £3.
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Spooktacular snacks and tasty treats Spoil your customers with choice when it comes to sweet goodies this Halloween with the latest confectionery launches Available in cherry, orange and strawberry, Maynards Bassetts Juicy Chews look set to be a hit with kids and adults alike.
Vimto is being transformed into Mini Jelly Beans, each made using the secret Vimto recipe. Each bag contains original, cherry and strawberry flavours.
Bonds of London has announced the addition of 80 new lines to its American category, including Hostess Twinkies and WarHeads Sour Chewy Cubes.
M&M’s Spooky Colours Peanut range is back in 45g single-serve bags, 100g treat bags, 165g pouch and 300g large pouch. Haribo and Maoam have launched new impulse formats: Haribo Tangfastics Stixx, Starmix Hearts and Rings and Maoam Pinballs, all perfect for on-the-go.
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Soft drinks
Mak
ea
Despite the impending sugar tax, soft drinks still secure solid sales, and with inspired new products geared towards health-conscious consumers, retailers can tap into the £2.1bn category for satisfying profits
(*him! CTP Survey 2016)
S
oft drinks is a key category for convenience retailers. According to recent research, 39% of shoppers cite buying soft drinks as the main purpose for visiting a convenience store. Because impulse is such a strong driver of soft drink sales – particularly as shoppers head to the nearest outlet – convenience stores are well positioned to cater for this mission. James Smart, Category Manager at Lucozade Ribena Suntory (LRS), said: “According to him! soft drinks are the joint first most purchased category within the convenience channel* along with newspapers and ahead of tobacco, bread and confectionery.” ➥
with soft drinks
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**him! Getting range right in small store formats 2015 ***him! Soft Drinks Category Story 2015
The impending ‘sugar tax’ will penalise high sugar content in fizzy drinks1 and, in response, key suppliers have invested in some great product innovation. James said LRS has committed to reducing calories by 20% per 100ml across its range by 2020. “The wellbeing of our consumers is at the heart of what we do, which is why LRS has added to its range of low and no-added sugar products, launching new Lucozade Zero products – Ribena Very Berry and Ribena Light Pineapple & Passion Fruit,” he explained. But with a massive breadth of products out there, it can be difficult to know how to prioritise the bestsellers and keep up with customers’ changing preferences. According to James, the fundamental retailing principles always apply: “Four out of five soft drinks consumers stated that range influences where they shop**, therefore, retailers need to stay up-to-date with product launches, trends and also stock bestsellers in a variety of formats. Retailers should pay particular attention to launches from recognised brands.” James added that while popular products may sell themselves, it is important to offer competitive prices. He said: “Promotional offers are the most effective way of giving consumers value. BOGOF and price reductions on an individual unit prove to be the strongest performers in drink-to-go purchases***.”
TAILOR YOUR RANGE
Landmark recommends prioritising a few facings of the bestselling products, as opposed to packing out your chillers with a random selection of products. “Retailers should look to provide customers with choice, not confusion, when it comes to soft drinks,” agreed James. “Stock bestsellers and quality own-brand alternatives.” Empty shelves equate to lost sales, so make sure you review your range and space allocation often. If a product sells out regularly, increase the 18 retailer matters
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How to lay out your range of soft drinks
number of facings to avoid out-of-stocks. Retailers need to ensure their range is tailored to local tastes as well as the top-performing brands, so check in with your customers and keep tabs on your regulars’ favourites. For example, Scotland was for a long time one of the only countries in which a domestic brand – Irn-Bru – outsold the industry-leading Coca-Cola. A G Barr’s fruit-based drink Rubicon sees sales soar by up to 75% during Ramadan.
The exotic refreshment is reportedly more popular than ever during the month that sees Muslims fast during daylight hours and it seems many turn to the sugar rush of the fizzy drink to break their fast, so be willing to adapt your offering dependent on time of year and occasions. Consumers’ tastes have also changed as they become more experimental. This has led to growth in demand for more exotic flavours such as coconut, which
“Look to your bestsellers and try stocking a low or zero-sugar equivalent where available – 39% of drinks sold in the UK are now lower or no calorie”
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Soft drinks
has seen great traction among traditional water brands. Coconut water market leader Vita Coco became the fastest-growing non-alcoholic beverage in the UK in 2014. Exotic flavoured water tends to command a high price point, so do your research on the best prices and products available at your depot and position the product accordingly as part of your planogram. Stuart Johnson, Retail Controller, Landmark Wholesale, said: “Soft drinks is a key category to get right. It’s important not to overwhelm the customer with too much choice. Rather than single facings of every product, multiple facings of the key brands is the best way to drive up your soft drink sales, as these act as signposts for customers. The easiest way to achieve this is to follow the Lifestyle Express planogram.”
Did you know? Carbonates alone generate annual sales of about
£780m for impulse outlets
CHILLER COMES FIRST
A top planogram tip is to group soft drink categories and brands together. Identify the best-performing brands in each category and stock these at eye level to maximise saleability. Sales of chilled ‘ready-to-drink’ products account for more than three quarters of all soft drinks sales in impulse, so the chiller should be your key focal point. James said: “Front-of-store impulse chiller placement should be the top priority for retailers wanting to capitalise on the demand for chilled soft drinks, which peaks between April and September. Retailers should ensure their bestsellers have sufficient facings during these peak months to avoid out-of-stocks and missed sales.” Don’t be afraid to try different variants of the bestsellers from your depot. Suppliers have been launching exciting new drinks to cater beyond impulse, including 380ml packs for a more competitive price point, 380ml multipacks that give you the flexibility to apply attractive offers and 1-litre formats for sharing and occasions. “Retailers should look to keep their chillers well stocked with a breadth of soft drink formats and variants to give consumers the variety they want for instant consumption,” said James. “However, as top-up is a key mission for shoppers within
top of the pops! The bestselling brands across the soft drinks category that need to be on your shelves and in your chillers
Carbonates
Water
Juice-based drinks
Energy Drinks
Own brand
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■ Offering chilled soft drinks is vital in the convenience trade. ■ Demand is growing for low and no-sugar drinks. ■ Price-marked packs dominate the soft drinks chiller. Of the top 100 energy drinks, almost 70 now use price-marked packs, so make sure to prioritise them.
convenience, having a variety of take-home packs is crucial.” LRS is taking the initiative on the new trend for streamlined refreshment with its Orange, Original and Pink Lemonade 250ml slimline cans.
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James said: “For consumers, these single-serve cans provide an easy ‘grab and go’ option for those moments throughout the day when we all need a refreshing break. The growth of instant-consumption products is led by the popularity of canned drinks, which currently make up 23% of soft drink sales.” Adult soft drinks is another sub-category seeing a rise in popularity as more consumers choose to avoid the health risks associated with alcohol. Some 21% of adults don’t drink alcohol, according to the Office for National Statistics’ Adult Drinking Habits in Great Britain report (2015), so try allocating space for market-leader brands such as Shloer. Growing health awareness now extends across the whole soft drink category, with a
reported 39% of drinks sold in the UK now lower or no-calorie products. Not one to be left behind, Coca-Cola has relaunched and rebranded its sugar-free drink, formerly Coke Zero and now called Coca-Cola Zero Sugar. To decide on the new ‘healthy alternative’ drinks that could work for you, look to your bestsellers and try stocking a low or zero-sugar equivalent where available.
WATER TREND TO FOLLOW
Increased demand for healthier drinks means water-based categories are thriving. In the past year water sales have increased, with each person in the UK consuming on average 44 litres of bottled water each year, according to Zenith International. This trend has been on an upward trajectory since 2014 and is continuing to grow, so make sure to stock up all year round. Retailers should provide a variety of brands and formats to ensure all bases are covered and should account for still and sparkling variants too.
1
soft drinks tips
18p per litre for drinks with 5g sugar content per 100ml and 24p per litre for 8g of sugar per 100ml
Soft drinks
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The future’s “Birds Eye covers a total of seven frozen categories and there are more than 700 frozen products available within the convenience market. But nearly 70% of frozen sales in convenience are made from the top 20 products. Just by stocking the top 10 bestsellers, retailers will see a potential 24% sales increase”
T
he freezer is the home of some of the nation’s most iconic dinners. Whether it’s a frozen pizza, chicken dippers, potato waffles and peas, or the tried and tested favourite of a fish finger sandwich, the freezer contains some of the most comforting meals that families rely on week in, week out. In fact, the frozen section continually comes out on top when shoppers are ‘distress’ shopping – picking up the absolute essentials, doing a top-up shop or looking for easy meal-for-tonight solutions.
The top 10 frozen bestsellers Young’s Admiral’s Pie 340g McCain Ready Baked Jackets x2 400g
McCain Home Chips Straight Cut 900g/1kg
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frozen
Frozen
With unrivalled meal-for-tonight options and next-to-nothing wastage, getting frozen right will pay off for retailers in more ways than one
So why is frozen often a category that gets neglected in convenience stores? Birds Eye Customer Business Manager Kate Perkins says that frozen is underestimated, despite having excellent potential: “The frozen shopper spends twice as much as the average convenience shopper; £11.79 compared to £6.13.” And with just over 99% of the population buying frozen almost every week, it makes sense that retailers make the most of the appeal and potential of this category. Eden Farm Hulleys, one of Landmark’s
frozen distributors, knows it’s important to ensure all bases are covered when considering your offering. The company’s Managing Director Ben Maxted said: “Eden Farm is on hand to make sure Lifestyle Express retailers have access to the bestselling frozen goods in the market. The extensive range available ensures retailers can offer their customers variety and exciting products. We advise placing priority on core range products alongside promotional lines, where retailers can pass great deals on to their customers.”
Birds Eye 12 Cod Fish Fingers 336g McCain Micro Chips Straight Cut 2x100g
Birds Eye 4 Original Beef Burgers 227g
Aunt Bessie’s Crispy Homestyle Roast Potatoes 907g
Birds Eye Harry Ramsden’s 2 Fish Fillets in Batter 200g
Birds Eye Garden Peas 860g
Birds Eye Potato Waffles x4 227g
Kate explains that even if your store only has a small space allocation for frozen, this doesn’t necessarily hinder sales: “Birds Eye covers a total of seven frozen categories and there are more than 700 frozen products available within the convenience market,” she said. “But nearly 70% of frozen sales in convenience are made from the top 20 products. Just by stocking the top 10 bestsellers [below left], retailers will see a potential 24% sales increase.”
MAKING A MEAL OF FROZEN
Despite the fact many of the top frozen products are traditional and untarnished by time, the £4.9-billion frozen category has seen great innovation in recent years, in particular, gearing itself towards the mealfor-tonight shopper. “A significant 37% of convenience shoppers want a meal-for-tonight and frozen is well positioned to cater for this because it covers so many parts of a meal: the meal-makers, such as fish, poultry and red meat; complete meals such as ready meals and pizza; and the meal partners: vegetables, potatoes and Yorkshire puddings,” Kate continued. Offering meal solutions is a well-known way of boosting incremental sales and 38% of convenience shoppers agreed they would be happy to impulse buy across different categories if given the right signposts. “Frozen can really complement other products. If you had POS next to frozen fish fingers and a loaf of bread, retailers have a great opportunity to convert sales. ➥
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Frozen
Convenience retailers have reported a 10% uplift in sales through using signage alone,” she added. Ben agreed: “Not only does signage within the store help shoppers find the frozen area quickly, but research shows that retailers lose out on sales when their pricing isn’t clear.”
MERCHANDISING SOLUTIONS
Promoting cross-category meal solutions is one way of avoiding the challenges that come with merchandising frozen. “The freezer can be notoriously difficult to merchandise as retailers don’t always get the extra shelf-edge stripping or labels similar to the ambient or chilled categories,” said Kate. But you can put yourself at an extra advantage by stocking price-marked packs of the frozen bestsellers, which not only spreads the word about your great-value offering, but also establishes trust between you and your customers. “To assist retailers, we supply an extensive range of price-marked products,” said Ben. “Not only do these offer the customer excellent value, but they also clearly identify the price point.” “Price-marked packs are massively important,” agreed Kate. “They sell about 60% more than the standard frozen packs and can really enhance the benefits of standard POS.” When a frozen shopper spends on average 60% more time in store than an average consumer, it certainly pays to make sure your freezers are easy to navigate. Kate from Birds Eye’s advice? “Little things to maintain your freezers make a big difference,” she said. “Make sure your freezers are clean and tidy, that all the lights
freezer top tips... ■ Stock the top 10 bestselling products, or, if you have the room, the top 20. ■ Stock price-marked packs to ensure customers know they are getting great value for money. ■ Place relevant signage next to high-traffic products. ■ Provide meal solutions. ■ Follow suggested merchandising flow and keep categories together.
are working and your products are well laid out, not in a huge pile so that nobody can tell what you have. “Avoid brands that may sell once but never again, because all they do is take up room in your freezer and don’t actually put any cash in your till.” Once you have your freezers in order, it’s important to monitor stock levels to ensure customers choose to buy their frozen shopping with you over a competitor. Eden Farm’s Ben added: “Consumers will actively choose one store over another if they know that a retailer has everything to meet their needs. We offer 24-hour delivery on orders placed before 2pm and with a low minimum order, retailers can order as often as they need to ensure they always have stock.”
Space invaders
choosing what to stock As a guide, allocate space in your freezer based on frozen food category sales: ■ SWEET TREATS Take-home ice cream, desserts, fruit, ice cubes (36%) ■ MEAL MAKERS Fish, poultry, red meat, pies, vegetarian (23%) ■ COMPLETE MEALS Ready meals, pizza (23%) ■ MEAL PARTNERS Vegetables, potatoes, Yorkshire puddings (19%).
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Store profile
“Stores like mine are all about convenience – customers want to be in and out quickly, efficiently and with everything they need, and that’s exactly what I give them” When Kesh Bagha first opened his store doors in 2014, he didn’t know the area or his potential customer base and was hoping for the best. Two years later, his store has gone from strength to strength and he couldn’t be happier
“ F
or the first time, it feels like the store is how it should be. It has everything I think the area needs and I’m absolutely delighted with how it looks and feels,” said Kesh. And he’s right to be delighted; the store looks and feels at the top of its game, offering customers everything they need from a local store. With the right products all merchandised to perfection, gleaming shelves and an immaculate floor, it’s clear that Kesh and his team operate to an incredibly high standard. Kesh opened the store, his first, in October 2014. He didn’t know the area or the local shoppers and the shop was lying empty when he took over the property. With the help of Lifestyle Express, he opened up his store and has seen his sales rise almost continually.
TAKING THE ROUGH WITH THE SMOOTH
But his retailing journey hasn’t been without problems. A local newsagent, based a few doors down from Kesh’s store, objected to Kesh selling newspapers, magazines and greetings cards. He involved the council, who agreed that Kesh should stop selling those items and instructed the newsagent that he shouldn’t be
Store CV Name
Lifestyle Express, Rutherglen, Glasgow
Time with Lifestyle Express Staff Features Bestsellers
Nearest competition
Since October 2014 Four, including Kesh ATM, PayPoint, off-licence and newsagent LSV, Irn-Bru, Lifestyle Toilet Roll, Strongbow, Tennent’s Aldi is right behind the store
Trading times 7am-9pm, Mon-Sat, 8am-9pm, Sun
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Store profile
selling household groceries. However, while Kesh stuck to his part of the deal, the newsagent continued to operate as a small convenience store selling groceries. Once the council intervened, it became clear that operating solely as a newsagent wasn’t profitable, so he stopped trading. Kesh was then able to introduce a full range of newspapers, greetings cards and magazines and his store quickly became a one-stop shop for local customers.
WORLD OF DIFFERENCE
“These have gone down so, so well with customers,” he said. “Being able to add these back into my store has made the world of difference. Not only can customers buy everything they need – their milk, bread and daily newspaper – but finally the layout works exactly the way it should. Whatever I put in the space that should have had newspapers and magazines in just looked dreadful; to me it was an eyesore. Finally, everything is in its rightful place, on new stands, and it just looks fantastic.” As well as reintroducing a range of newspapers and magazines, Kesh has also rung in some other changes with several upgrades
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“I wanted to make sure people could get everything they needed. They can get a bottle of wine, a card and a gift bag; there’s no need to go anywhere else”
following the full refit when he first opened. The addition of a new open chiller has had a massive impact on the store’s look and feel, and his sales. “By changing to an open chiller, I’ve seen a 15% rise in sales, which is just incredible. I’ve added new lines, such as Cheesestrings, Lunchables, cooked meats, burgers and yogurts, and things are just flying out. It was such a good move.” Alongside the range of greetings cards, Kesh has also added wrapping paper, gift bags, balloons and banners, which has proved to be really popular with shoppers: “I wanted to make sure people could get everything they needed. They can get a bottle of wine, a card and a gift bag; there’s no need to go anywhere else.” As with most convenience stores, confectionery and snacks offer a huge ➥
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“It’s all about knowing what customers want. The own-brand products are such brilliant value. And best of all… you can’t get them everywhere, so it’s a real point of difference and it keeps customers coming back”
opportunity. “Our sales of these have always been strong but I knew that I could do more, so I’ve added new dedicated areas in store to hanging bags of £1 sweets, £1 sharing bags and multipacks of crisps, and I can’t keep up with demand. I now have nearly eight metres of confectionery and crisps in store and they’re so popular, they’re attracting new customers every week.”
MARS’ MERCHANDISING MAGIC
Kesh’s bestseller basket
By developing his range, adding new lines and having Mars come in and merchandise the fixture, Kesh has seen a real surge in sales: “It’s all about knowing what customers want and since I’ve developed the range, sales are up around 20%. And it looks good, which makes customers want to buy more. We’ve also added the £1 Mars blocks and they are just flying off the shelves.
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kesh’s top tips... Always keep your eyes open Learn from what others are doing. I’m always talking to my wholesaler, United Wholesale Grocers. I ask about their latest stores and I’ll go and visit them. I’ll ask their advice and offer mine, if they ask. Keep learning and keep listening. You can never have enough knowledge.
It’s essential to keep with the times
“It definitely pays to keep an open mind about products,” admitted Kesh. “When Mars came in, they suggested some products that I hadn’t thought of which have sold really well. Other times, we find we can inspire customers to buy products that might otherwise have passed them by. A few times, just before closing, we’ve been mopping the floor with a pine disinfectant and customers have loved the smell so much that they’ve bought the same product from the shelves. I now burn a scented candle in the store and our sales of scented candles have gone really, really well.” In addition to all the big names in store, Kesh has found the Lifestyle and Lifestyle Value own brand products really popular. “The own brand products are such brilliant value and customers are really keen to try them out,” he said. “Then, once they’ve tried them, they don’t go back to the big brands. And best of all, as it’s a Lifestyle product, you can’t get them everywhere, so it’s a real point of difference and it keeps customers coming back again and again.”
“I’ll just focus on what people want from their local shop. It’s all about making it a fantastic shopping experience”
That way you can never be left behind or caught out by the competition. Read the trade press, read Retailer Matters and talk to your customers and keep up to date with what they want. This way your customers will always be wondering what you’re going to be offering next.
If things don’t work, change it Just because you’ve tried something, doesn’t mean you have to stick with it. Whether it’s a product, a service or your layout, if it isn’t selling, isn’t working or doesn’t feel right, don’t be afraid to try something new.
LOOKING FOR A NEW CHALLENGE
Having gained so much knowledge in the past two years, as well as many years working in his family’s business, Kesh isn’t stopping there. “I’m already looking for my next site and I can’t wait to get to work – I love a new challenge,” he laughed. Any particular lessons learnt? “Yes, be organised early!,” he said. “I didn’t realise it would take so long to get my ATM in place, so next time I’ll call them months in advance, so I know it’ll be there from the very beginning, which is critical. I’ll do the same with an internet connection as this is crucial to be able to serve customers quickly. “Most importantly, I’ll just focus on what people want from their local shop. I’ll look around, see what’s already there and what’s most needed and tailor it to fit. It’s all about making a store a fantastic shopping experience and if I can replicate what I’ve done here, I’ll be delighted.” 34 retailer matters
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Convenience
convenience The facts and figures of
While there is endless talk of doom and gloom around Brexit, the recession and the state of retail, right now is a great time to be in convenience retailing. Jill Livesey, him! Research & Consulting’s Managing Director, explains what the opportunities are for you
I
t’s a well-known fact that competition for customers is fierce. Within walking distance of your door it’s likely that there are other stores all wanting to attract your customers and steal their business. Maybe it’s a supermarket, or a mini multiple, or other symbol groups or independent stores. With this in mind, it’s never been more important for retailers to satisfy the needs of their shoppers. But to do this it’s essential that you understand who your shoppers are and what they’re looking for. Ask yourselves, what could you do better? Where could you improve? Every year, him! talks to more than 100,000 shoppers across the UK. As a result, it has a fantastic understanding of what the average convenience shopper looks like, what they want, what they like and don’t like, and best of all, how retailers can meet or exceed their needs and boost business.
Looking ahead How are people shopping in 2016? ■ It all comes down to location, location, location. We’re shopping differently, choosing new places, turning shopping trips into a destination. The popularity of out-of-town shopping centres is on the rise, while the high street is struggling. ■ People are using new ways to pay; contactless is on the up, while old-fashioned cash is less popular. ■ People are finding new reasons and ways to eat out, which retailers need to tap into with great food-to-go offerings.
good news 35%
of shoppers don’t do a main weekly or monthly shop, they shop little and often
38%
5% 47%
49%
increase on last year showing convenience is on the rise
of shoppers use convenience stores, compared to 45% using supermarkets, for their top-up shop
of UK shoppers live alone, and have smaller fridges and cupboards, so don’t do big shops of under 25s are living at home for longer
And, as with an ageing population, there is more demand for the convenience store right on customers’ doorsteps.
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Convenience
who shops in convenience?
14%
The last of the millennials make up 14% of Lifestyle Express shoppers. Millennials are the future: aged 16-24; represent one in four adults; and 49% live at home
23%
Competition is fierce to attract families with young children; currently 23% of Lifestyle Express shoppers. This group spends more, visits more and is likely to shop long-term
WHAT MAKES CONVENIENCE UNIQUE? The ‘I want it now’ demand. You know how to disrupt shoppers on autopilot. You’re the convenience experts.
23%
The retired greys (over 65s) represent 23% of Lifestyle Express shoppers. By 2040, one in four people will be aged over 65 in the UK. Retailers need to pay attention to the over 65s, who are at the core of convenience success. Of those aged 75 plus, 36% are living alone and are on a planned top-up mission, versus 22% of the UK average
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Convenience
So how has 2016 been? Well, 2016 has been a year of record highs for convenience. UK shoppers are visiting convenience stores 3.8 times a week, they are picking up three items or more and basket spend has increased to £6.39 So what makes shoppers use convenience stores?
and what customers want is changing...
1 Location 2 Friendly and helpful staff 3 Long opening hours 4 Like to support their local store 5 Trust them to have products in stock 6 Cheap prices 7 Promotions
Compared to last year, here are the main reasons for UK shoppers visiting a convenience store
. . . compared to the appeal of the discounters
+640m +180m +60m +129m +129m top-up shopping trips
1 Location 2 Value for money 3 Cheap prices 4 Quality of products
newsagent trips
Newsagency remains critical for convenience The percentage of shoppers who had visited a store for a newsagent mission were in:
food-to-go trips
treat trips
35% 22% 9%
Convenience, tobacco and newsagent (CTN) is the main reason some shoppers visit convenience stores ■ One third of retired greys say CTN is their main reason to visit ■ One in three Lifestyle Express shoppers visit every day for CTN
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Newsagent and beers, wines and spirits remain critical drivers for Lifestyle Express ■ 29% of shoppers use Lifestyle Express to buy cigarettes, compared to 19% symbol average ■ 23% of shoppers use Lifestyle Express to buy their newspapers, compared to 21% symbol average ■ 15% of shoppers use Lifestyle Express to buy beers, wines and spirits, compared to 10% symbol average
meal-for-tonight trips
Remember
15%
of purchases are made on impulse, with the most popular impulse buys being confectionery, crisps and snacks, and soft drinks
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Convenience
even slight growth is good Shoppers are still using convenience to buy just one item
30% 29% 31% 35%
of shoppers bought just one item in 2013 of shoppers bought just one item in 2014 of shoppers bought just one item in 2015 of shoppers bought just one item as of now
STED? INTEREE TO LIK ORE? KNOW M
irac Belle Na m uch with Get in to airac@him.uk.co at belle.n
Remember to interrupt and inspire shoppers If every person currently shopping in convenience bought just one more item it would equate to a massive ÂŁ59.5 million for the sector. So what can you do to inspire that extra purchase? Some of the single items have been identified as hot drinks, cigarettes, newspapers, lottery tickets, and beers, wines and spirits. So think about what they could be linked with to encourage that extra sale. A morning pastry to go with the hot drink or newspaper, some snacks to go with the beers or wines, or maybe an impulse
chocolate bar at the till? Regularly move things around to keep things fresh and interesting. Have attentiongrabbing promotional ends or eye-catching displays that will interrupt grab-and-go shoppers. When you serve customers, talk to them about your best deals or promotions, and ensure you regularly refresh POS at the till points. Another way to grab that extra sale is to communicate with shoppers before they come into your store: 27% of shoppers say that yes, leaflets work. 60% of shoppers said a leaflet led them to visit the store and make purchases.
So, what do shoppers think about you? convenience is winning!
69%
of shoppers think that convenience stores have improved their food-to-go offering in recent years
61%
of shoppers think that convenience stores have improved their meal-for-tonight solutions
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Store CV Name Time with Lifestyle Express Staff Features
Bestsellers
Lifestyle Express Sutton Local, Sutton Coldfield
Two months Two ATM, National Lottery, Payzone, Pack my Parcel, UPS parcel service, news agency and newspaper delivery, off-licence, hot-drinks-to-go Red Bull, LSV, Three Barrels Brandy, Sterling Tobacco and Coca-Cola
Nearest Within half a mile competition Trading times 7am-9pm, Mon-Sat, 8am-8pm, Sun
“ O
ur aim has always been to create a full neighbourhood store that has everything our customers need,” said Pav Singh and his store, Lifestyle Express Sutton Local, co-owned with Happy Singh, delivers exactly that. Since reopening just a couple of months ago, Pav’s Lifestyle Express is delivering the wow factor to its customers and it’s hardly surprising when you see inside. Packed full of great products and eye-catching promotions, the store is a treasure trove for value and Pav’s customers couldn’t be more delighted. “When we first found the store, we knew it had incredible potential,” said Pav. “It had been owned by the same retailer for
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around 20 years and over time, he’d let the business drift. It was a newsagent with some basic grocery and a limited off-licence, but towards the end, he wasn’t stocking the shelves and the business was in real trouble. Sales were poor, customers were leaving and it was the ideal time for us to take over.”
FITTING THE BILL
“Our aim has always been to create a full neighbourhood store that has everything our customers need. We wanted a store we could make our own… and it was clear this was perfect”
Pav and Happy had been looking for the perfect store and this property, on a busy main road in Sutton Coldfield, fit the bill. “We wanted a store we could make our own and that hadn’t already achieved its potential and it was clear this was perfect.” The duo knew immediately what they wanted to achieve, and wanted to see what they could do by themselves. They added stock, carried out a leaflet drop, cleaned up the store and ran lots of offers, but after a few weeks it was clear that the sales weren’t increasing. “We had so many ideas and plans but we were just standing still. We asked ourselves, how can we achieve more?” Having talked to various symbol groups, it quickly became clear that Lifestyle Express was the ideal fit, offering support when needed, but letting retailers run their businesses their way. And, as part of joining Lifestyle Express, Pav and Happy decided to carry out a full refurbishment. “Nothing stayed the same. We replaced everything including the flooring, the lighting, the chillers, the
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happy & PAv’s bestseller basket
shelving – it’s a brand-new store.” As the store was gutted and started again, it was impossible to stay open, but Pav and Happy were able to continue to fulfil their newspaper deliveries. “We’d have been in trouble if we’d not,” laughed Pav. “It was clear that a lot of people relied on the store for their newspapers and it would have been a rotten start to have let them down.” After just over a week, the store reopened and local customers were blown away by the changes to the previously rundown store. “Lots of customers said that they thought they’d come to the wrong shop,” said Pav. “Some even had to walk out and come back in again, they were so amazed.” And it’s not just the fixtures and fittings that changed, the
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happy & Pav’s top tips... Listen to your customers It’s all about supply and demand. If we see a customer go to walk out without buying anything, we’ll always ask if they needed help finding a product or if they were looking for something in particular. We’ve discovered some great products this way.
Keep on top of your stock There’s nothing worse than seeing a store with empty shelves or big gaps where products should be. Focus on availability and always deliver what your customers need.
Offers grab attention Always look at the promotions you offer. Make a display so that your customers can’t miss them.
Manners cost nothing Always greet customers with a smile and ask how they are. You’ll be amazed at how word spreads about what a wonderful shop you have.
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WOULD YOU LIKE YOUR STORE TO BE FEATURED?
Let us know. Get in tou ch. retailermatters@ madebysonder.com
“Every category offers customers more. I keep a close eye on what other stores are selling and at what price. It’s all about sourcing the right suppliers”
store now has extended product lines in every category, with lots of new lines introduced, such as toiletries and pet food. “Every category offers customers more,” said Pav. “We’ve really extended our soft drinks, confectionery and snacks, and our beers, wines and spirits section is attracting lots of sales. I keep a close eye on what other stores are selling and at what price, and I know for a fact that every single wine we stock is cheaper than Tesco. It’s all about sourcing the right suppliers.” And this approach is paying off. Since the refurbishment, Pav and Happy have been delighted with the store’s success. “Customers are shopping differently now,” said Pav. “Once they’d have come in for a paper and gone home, but now they grab their paper and browse the aisles, always picking up other items too. Customers are starting to have confidence that we’ll have what they need and at a great price, so there’s no need to shop anywhere else. It’s a great feeling to know that people rely on us to have the things they need.” While it’s early days, sales are increasing week on week and they are both over the moon. New additions such as the coffee machine are already showing a great return on investment, and the full range of services Pav and Happy offer means that the store is quickly becoming known as a one-stop shop for the whole community.
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All you need to know…
impulse Finger on the
Encourage customers to buy just one more item to boost your sales. Here’s how to do it
*Research from him! Research & Consulting
A
ccording to research*, shoppers visit their favourite store an average of 200 times a year – that’s four times a week, every week. Based on these visits, it’s fair to assume they know your store and your products well. Now, based on that number of visits, just imagine the difference an extra product per customer per visit would make to your bottom line. Great retailers will distract customers from their shopping list with offers and promotions, or encourage them to push their spend just a little more by making impulse opportunities irresistible. By adding just one more item to their basket, you could see your profits soar.
Did you know?
According to research*, shoppers visit their favourite store an average of
200 times
a year – that’s four times a week, every week
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All you need to know…
MIX AND MATCH
With 18% of shoppers looking for inspiration in their convenience store and almost one in five shoppers surveyed buying an item they hadn’t intended to while shopping, why not test the waters by merchandising complementary products? These items don’t have to be in the same category. Recommending a wine to go with a meal for tonight or fish, poultry or red meat is a great way to tap into impulse. And wine has great margins, so retailers
Did you know?
Chewing gum tops the confectionery category at a whopping
44%
of sales at the till point 56 retailer matters
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top tips for impulse buying ■ Merchandise complementary products to inspire customers as they shop. ■ Use POS to encourage shoppers to visit different parts of the store. ■ Make the most of hotspots such as the till point.
can look at driving up basket spend from around £3 to £9. For lunch on the go, position crisps, confectionery and fruit next to salads and sandwiches in the chillers. The Irish Food Board – Bord Bia – states that shoppers spend an average of £1.29 every day on snacks in the UK, so these impulse categories are not to be missed out on. Don’t forget soft drinks. According to Britvic, 27.5% of soft drinks are bought on impulse and as soft drinks are one of the top five drivers of impulse purchases, it pays to merchandise the category smartly (see the feature on page 17 for advice on this).
HITTING THE HOTSPOTS
Think about your impulse hotspots. Till points account for 7.1% of total store sales, while taking up only 1% of sale space and are a fantastic money earner. They don’t direct shoppers away from their intended
shopping mission, plus they present a limited time window in which to decide on a purchase – the perfect combination for driving up impulse buys. Confectionery accounts for 22.2% of sales at the till point, and chewing gum tops the category at a whopping 44%**. Stock the best lines and always prioritise availability. Don’t forget the power of promotions – 43% of shoppers who bought something on impulse did so because it was on promotion. Showcase promotions in other key hotspots in your store such as gondola ends; 12% of shoppers pick up products from aisle ends and this is much higher for top-up shoppers, so hand-pick your most competitive deals for these sections. With 30% of purchasing decisions made on the spot in convenience stores, it’s time to get creative and think about solutions as opposed to products, to drive up impulse purchases and increased basket spend.
**According to EHI Retail Institute for Wrigley
Research expert him! estimates that 27 million people use c-stores a year. If everyone bought one more item, the earning potential could be up to £59.9m. As impulse purchasing is at a five-year high, according to him!’s CTP convenience research (2015), now is the perfect time to unlock potential profit.
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Your guide to…
Making the most of
own brand Offering great quality and great value, own brand products really are the stars of the shelves
W
hen it comes to offering something different that will keep customers coming back, own brand products shine. Once aimed at shoppers on a budget, own brand has shrugged off the stigma of low price and lower quality to become the rising star of the retail industry. Over the past few years, own brand has surged ahead in popularity, with customers coming to rely on it for great value and quality, while retailers can benefit from the fantastic margins. Shoppers are choosing to vote with their wallets, opting for own brand alternatives time and time
at-a-glance guide Merchandise Own Brand next to branded items Let your shoppers make the comparison.
make it clear Always have clear price shelf ticketing so the price difference is obvious.
Create a Value Zone Position all Lifestyle Value products
together to create an eye-catching display that will attract attention.
Remember that own brand isn’t just about value It’s also about convenience and choice for shoppers, and creating something that only you have, so shout about your range of own brand products.
➥
Our pick of the must-stock Own Brand products
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Your guide to…
Something to shout about
again, making the UK the world leader when it comes to own brand popularity. According to market researchers him!, nearly a quarter (22%) of shoppers plan to buy more own brand food and drink. In fact, own brand products have fast become the new must-have items, with more own label products launched in recent years than branded equivalents. And Lifestyle Express retailers can benefit from the wide variety of own-brand products available, from the No3 tobacco range to Prince Consort spirits, from the award-winning Vintners Collection to kids’ favourite Cool Characters and the Lifestyle and Lifestyle Value grocery ranges.
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So where to start? Well, retailers should look to stock as many of the Landmark Wholesale own brands as possible. The starting point should be the Retailer Bestsellers brochure – you can pick it up from the display board in your local member depot – to see the bestselling 216 own brand products. By stocking Lifestyle Value and Lifestyle own brand products alongside the branded equivalents, you are providing customers with value and choice, depending on their budget, and personal preference and circumstances. And with more than 850 own brand products across a variety of ranges, retailers really are spoilt for choice too.
WHOLESALE QUALITY FOOD
®
AWARDS 2015
THE STARTING POINT
Santa Loretta Prosecco, Landmark Wholesale’s own brand sparkling wine, won top honours at last year’s Wholesale Quality Food Awards and was named Best Sparkling Wine. Advertise that you’re stocking an awardwinning wine and watch your sales increase. Cheers!
WINNER LOCAL SHOP
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Lowdown THE
All You Need for a Big Night In AL
L
EED FOR A
BNIGIHGT IN
N YO U
Stock up on the products your customers will want ready for a night in front of the TV
A
s summer fades, there’s one thing that your customers will be turning their attention to and that’s nights in with the family in front of the TV. And to keep your customers company, Landmark Wholesale has the biggest names at attention-grabbing prices. Autumn is the time that all the big family
SAVE UP TO
£ON2TH5E TOP 12*
shows start again and whether your customers prefer The X Factor or Strictly Come Dancing, Landmark’s latest Big Night In promotion will get the thumbs up with a star line-up of soft drinks, beers, snacks, confectionery, ciders, sparkling wine and spirits. As always, the team at Landmark has done all the hard work for its retailers and identified the top 12 bestselling products for a Big Night in. And, if you buy all 12 bestsellers, you’ll save an extra £25. So what are you waiting for? The All You Need for a Big Night In promotion is available exclusively in Landmark Wholesale member depots from 12 September to 1 October 2016.
coming next issue... Electric shock
Do you know the facts about e-cigarettes?
Best name in town
Why own brand is your secret weapon
Be inspired
Learn from other retailers
Are you making the most of this category?
Roll up, roll up
What’s going on?
The latest must-stocks for your shelves
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Cheers for beers
The latest news and updates from across the industry
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