Retailer Matters
Issue
39 Jan/Feb 2017
DON’T MISS
The magazine exclusively for Lifestyle Express retailers
sweet dreams Simple steps to a corker of a category
Rise and shine
Is an in-store bakery the best way to make some dough?
The price is right
Happy new year
Ring in the changes and
reap the benefits
Plus. . . STORE PROFILES Q INDUSTRY NEWS Q IMPROVE YOUR CUSTOMER SERVICE
Ex cl fr usi om ve ly
Why value is your secret weapon
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Hello, Welcome to the first issue of Retailer Matters for 2017. I hope that you all enjoyed
Retailer Matters is published six times a year by Made By Sonder Ltd on behalf of Landmark Wholesale. FOR LANDMARK Stuart Johnson FOR SONDER Editor Stephenie Shaw 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.
a successful and prosperous
48
Christmas and New Year, with plenty of festive spirit and cracking sales. And now the tinsel is put away and the mince pies all sold, it’s time to focus on the future and put your plans for 2017 into action. As the new year dawns, do you have any resolutions for your business? If you want to make more money, ring in the changes or extend your offering, there’s plenty here to get you started. We’ve compiled some marvellous money-making ideas that can easily be put
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into practice on page 21, from creating a local point of difference to adding new services or offers. And, for retailers who are keen to get their businesses back on track and drive them forward, turn to page 35 for our 10-point tick list about the small changes you can make that will lead to a big difference. After the pre-Christmas flurry of festive spending, we know that customers are looking for ways to economise. Turn to page 48 and read about how you can stand out from the competition when it comes to offering value. Our wide range of own-brand products, Lifestyle and Lifestyle Value, price-marked packs and fantastic promotions means that for Lifestyle Express retailers, there’s no such thing as the January blues.
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 39 2017
retailer matters 03
Contents 53 13
41 07 Need to know The latest news and views from around the industry
13 ones to watch Our round-up of the latest must-stock products
21 make more
money in 2017 We have 17 bite-size tips to maximise your margins
28 store profile Pragash and Krisha have the retail creation they always dreamed of
41 store profile Gail and Paul have transformed their store and everyone loves the results
53 all you need to know...
‌ about delivering truly exceptional customer service
on the cover
56 next issue What you have to look forward to in March
58 the lowdown Why focusing on key categories means you could be quids in
48
Thanks to cover star Gail Southall from Lifestyle Express Lanesfield Convenience (p41)
18 Sweet dreams your 35 boost business Unlock a category’s tasty potential
10 tips to give your store a new lease of life
55
28
price 48 The is right
Why offering great value is your secret weapon
55 rise and shine Thinking about offering an in-store bakery?
ISSUE 39 2017
retailer matters 05
Need to know
Local community stores are lifeline for older shoppers FOR ELDERLY PEOPLE, their local convenience store offers a genuine lifeline, especially at this time of year when the weather can make any shopping trips out treacherous. A recent study has shown that online shopping from laptops, phones and tablets is not an option for many elderly shoppers, which is excellent news for the convenience channel. But it’s not just about being able to buy their bread and milk without the need for a car journey or longer walk. For many elderly customers, it’s also the chance to chat with a friendly face. The study, Food Provision in Later Life, revealed how much older people benefit from their regular visit to the local store
and passing the time of day with staff and other customers. It also helps with their budgeting and food choices.
HOW YOU CAN HELP YOUR ELDERLY CUSTOMERS “We have a lot of elderly customers who call in most days. We have a ‘magic chair’ where they can sit while we do their shopping and then we’ll deliver it home for them. For those who have a newspaper delivery, we’ll send little doodles and messages on their papers, which always triggers a conversation later in the day. It’s all about the little touches.” The team at Lifestyle Express Winscombe, Somerset
“We have a lot of customers we usually see daily and if one
“While it’s crucial for us to have the products that people need, it’s also about being a friendly face and passing the time of day with customers who might not see anyone else all day. We have regulars who come in two or three times a day, buying one or two items at a time, and we always take the time to chat. Retailing is about far more than just groceries.” Amy Tucker, Lifestyle Express, Writhlington
of them hasn’t been in for a day or so, we’ll always check with their friends, relatives or neighbours that they’re OK. Some customers like to come into the store and pass the time of day with us, and we’ll then carry their shopping home.
Others who can’t get in will ring with their order and we’ll then take their groceries round. We’ll also go to other stores nearby so they don’t have to go without.” Bay Bashir, Lifestyle Express Belle Vue Convenience, Middlesbrough
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retailer matters 07
Need to know
Selling like hot cakes THE UK’S FOOD-TO-GO market will be worth more than £21bn by 2021, according to the latest industry predictions. A study by IGD looked at the food-to-go market – which is currently worth £2.5bn – in several key areas, including convenience and forecourt retailers. The study shows that this is set to rise to £3.3bn in the next five years. With so many UK shoppers continuing to shop little and often, this
is causing a real boom in food-to-go spending. And it’s not just convenience retailers set to benefit. Coffee specialists’ sales are expected to grow from £2.7bn to £3.9bn, showing that the UK’s appetite for a hot brew is far from fading. Recent research from industry experts him! shows that food-to-go is still the third most valuable offering for convenience retailers, attracting a staggering
Convenience remains the future
Sugar and spice, not so nice With the sugar tax expected to be implemented in 2018, soft drinks manufacturers are already looking to cut sugar in their products to bypass the proposed levy. Lucozade Ribena Suntory, which produces Ribena, Lucozade and Orangina, has revealed it will reformulate all of its drink brands to reduce the sugar content by 50% to less than 4.5g per 100ml from July next year. It also plans to offer zero and low-calorie alternatives for each brand and will clearly label calorie content. Tesco also revealed that the sugar content in its own-brand soft drinks has been cut by up to 50%.
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ISSUE 39 2017
890 million shopping trips each year. However, there is still plenty of opportunity to grow this even more as the research also showed that, currently, food-to-go shoppers are only buying one extra item in convenience stores and retailers can look to expand on this to drive up sales. With soft drinks and sandwiches being the most commonly bought items, get creative with what you offer alongside them, such as crisps, snacks, cakes, fruit or yogurts.
FOOD STORES IN the ‘most convenient locations’ are the future of the grocery market, with the big supermarkets having to work harder to attract customers, according to the IGD industry think-tank. IGD Chief Executive Joanne Denney-Finch has outlined her
vision of the future, saying that while online grocery ordering is likely to become the norm, physical stores will always have the edge. Despite the rise in online shopping and Amazon Dash, she believes that customers like to see before they buy, and for satisfying a need
instantly, online can’t compete. Stores in convenient locations, including train stations, will be favoured outlets for shoppers. “They’ll become much more exciting, featuring lots of fresh food, new products, special events and more ways to taste, learn and discover,” she said.
Need to know
In the
know James Lowman, Chief Executive at Association of Convenience Stores, on the problem of rising employment costs
Stop counterfeiters cashing in WITH THE NEW POUND coin being introduced in just a couple of months’ time, the government and the Royal Mint have been supporting retailers to prepare for the changes. The new coin, which has 12 sides and rounded edges, will be the most secure of its kind in the world to combat counterfeiters. The coin is thinner, lighter and larger than the current coin and has a hologram-like image, as well as a hidden high-security feature.
WHAT DO YOU NEED TO DO? The current coin, which has been in circulation for 30 years, will be taken out of circulation and the new one will be introduced in March. They will both be in use for six months and then the old coin will no longer be accepted as payment from September 2017. So, what do you need to do before March? Do you have any vending machines or children’s rides that take £1 coins? If so, contact your manufacturer as they will need
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Did you know? There are currently around
45 million counterfeit £1 coins in circulation
to upgrade each machine. Use the new website (see below) to train your staff on the features of the new coin. Consider any changes to your cash-handling processes, such as counting, storing and banking during the six-month period where both coins will be in circulation. A new campaign has been launched to support retailers including a website – thenewpoundcoin.com – plus a short film and useful downloadable materials.
ast year was another strong one for the convenience sector, with over £400m in growth and over £800m invested by retailers in their businesses. However, the sector also faced significant challenges through the introduction of the National Living Wage and the business rates revaluation. As we see it, the main ongoing challenge for the sector will be rising employment costs. The impact of former chancellor George Osborne’s National Living Wage is already being felt by retailers, with many looking at delaying expansion plans and scaling back on staff hours to cope with the £7.20 rate. The planned increase to £7.50 in April will put further pressure on businesses to cut back. We will continue to campaign for the Low Pay Commission to be allowed to set the rates of the National Minimum Wage and National Living Wage in accordance with what the business community can afford without any adverse effects and free of any political pressure from MPs.
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Point of difference There are two significant changes on the regulatory horizon in 2017: the introduction of plain packaging for tobacco products in May; and in April, the introduction of requirements for retailers as part of the Alcohol Wholesaler Registration Scheme. ACS will continue to provide detailed advice on compliance and best practice on these and other issues, and we encourage retailers to get in touch if there is anything they’re unsure about. Overall, it’s important to remember that convenience stores operate across the UK at the heart of their communities and this is a point of difference that we believe stores will continue to benefit from as we move through 2017. A huge 84% of convenience stores in the S UK are involved in their community in WHAT HA ED N E P P some form, with convenience stores A H TO YOURLS? also polling as the second most TES BIL OW A R positive service on the high street. N LET US K ling@ w This is great news and a key aspect do e. Email stev g.uk acs.or of convenience retailing that can often be overlooked.
Ones TO watch The products that must have a place on shelves, plus Easter essentials
Spark with Spectra Hitting the energy drinks market at the end of last year, Spectra is the latest energy drink from the makers of LSV and promises to pack a punch. Price-marked at just 59p, it offers a great-value, great-tasting alternative to the big brands in the chiller and comes in three thirstquenching flavours: Cherry; Original; and Tropical & Guava. Available as a case of 12x500ml cans.
Full power Britvic has launched Purdey’s Edge, a multivitamin fruit drink. Made from a unique blend of dark fruit juices, sparkling spring water and botanicals, the drink is designed to help keep consumers invigorated. Purdey’s biggest outdoor and digital campaign, in partnership with Idris Elba, went live in January.
Sugar low In a move to appeal to the many consumers now wanting reduced sugar content in products, Volvic has announced it has reformulated its Juiced water range to reduce the levels of sugar to 4.9g per 100ml. Plus, the 50cl range will be moving from a 6x50cl case to a 12x50cl version, offering an improved POR for retailers.
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retailer matters 13
Ones TO watch Make a toast New Kingsmill Super Toasty, RRP £1.25, is the first of its kind – a loaf designed to make ‘the best-ever toast’. It’s made using a blend of flours that results in a light and crispy texture on the outside and a soft centre, as well as a thick cut. The product launch is accompanied by a full rebrand, with new packaging designed to stand out on shelves. The updated design, which will be rolled out across the whole Kingsmill range, features a colour palette of golden yellows and handwritten typefaces. There is also a new K-shaped window so that consumers can get a glimpse of the bread before they buy.
Oaty goodness Mr Kipling Oat Slices in Cranberry & Orange and Dark Choc & Coconut are now available in 2- and 4-packs in convenience channels. The low-calorie oat slices contain wholesome ingredients, with more than 30% oats, and are aimed at health-conscious consumers who
Breath of fresh mint Mentos has rolled out a new sharing-bag format, as well as its biggest-ever media campaign to date, which includes a new TV advert. The sharing bags are available in two flavours: Mentos Mint Mix, combining mint and spearmint; and Mentos Fruit Mix, which includes strawberry, orange, lemon, green apple and blackcurrant.
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ISSUE 39 2017
like to feel they’re having a treat but one that’s better for them. To help consumers with portion size and calorie intake, the slices come in individually wrapped packs, which are also perfect for popping into lunchboxes.
Time for tea Twinings has announced a £10m packaging relaunch across its range of fruit, herbal and green and speciality teas. The new designs aim to take consumers on a ‘voyage of discovery’ by bringing each blend’s ingredients to life through illustrations. To help shoppers find what they want easily on shelves, the new packs are colour-coded. The relaunch also sees a click-lock lid for easy opening and a foil inside to help keep the individually packed tea bags fresher for longer.
Hello cupcake After the successful launch last year of Mr Kipling single cupcakes, the brand’s first foray into the world of cupcakes, two new flavours have been added to the single-format range.
Joining Mr Kipling favourites Angel Slice, Apple Pie and Cherry Bakewell are Lemon Layered Cupcake and Viennese Whirl Cupcake, and all are now available in convenience. Perfect for Easter gatherings.
More cheese, please Dairy Crest has launched a new Cathedral City Snack Bar product, in Mature and Mature Lighter, especially for convenience channels. The 30g snack is aimed at on-the-go shoppers looking for an alternative to traditional sweet and savoury snacks. The Lighter bar has just 99kcals.
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retailer matters 15
Ones TO watch Easter treasures When the Easter bunny arrives, retailers see a huge boom in confectionery sales. The Easter confectionery category has performed particularly well in recent years, with sales rising 3% to a staggering £354m in 2016. With a figure like that, you can’t afford to not hop on-board and pile shelves high with Easter treats for all budgets and preferences. These are the new products hitting shelves.
The Dairy Milk Egg ‘n’ Spoon format is back, this time including Oreo – vanilla mousse with Oreo pieces. RRP £3.99 in cases of 8 packs
Returning for 2017 after successful sales last year are the After Eights ‘insider’ egg, offering a dark chocolate shell packed inside with After Eight chocolates, and the Munchies egg, for milk chocolate fans. Both RRP £5.41
Children love a traditional Easter egg hunt and these products have been designed specifically for it, so stocking up would be wise; you could even create a special display. The Easter Egg Hunt Pack, 229g, contains 10 milk chocolate hollow eggs and a treat-size bag of Mini Eggs as a prize. A 395g Easter Egg Hunt Pack has 16 milk chocolate eggs, 3 mini hollow bunnies and 1 mousse bunny.
The Mini Smarties Little Choc Chick is the third most popular impulse treat on the market. The mini chocolate egg is available in four different designs. RRP 65p
For customers looking for an alternative to chocolate for Easter treasure hunts and gifting, Swizzels Easter Mix is perfect. The tub contains a variety of favourites including Love Hearts, Drumsticks, Fizzers and Refreshers.
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Another big hit last year was Yorkie Digger Retro Egg, which contains a hollow milk chocolate egg and two Yorkie Milk bars in an eye-catching digger presentation box. RRP £5.61
Confectionery
The sweet
taste of
Make the most of the confectionery sales rush
W
hen spring arrives, you can almost hear the whole country breathe a sigh of relief. The days begin to get longer, the weather improves and people generally have a bit more of a skip in their step. For consumers, this means there is a greater want to get outdoors and shop. With Easter falling in this season too, spring is a hugely profitable time for confectionery. The holiday falls quite late this year, with Good Friday on 14 April, which gives a great opportunity to get your confectionery lines prepped early. New lines, innovation, offers and display will all play a key role in driving sales opportunities in the confectionery category.
MAKE IT BRIGHT Confectionery is brightly packaged for good reason. Not only does it make products stand out on shelf but it catches the eye of children and appeals to a sense of fun. For little ones, there is nothing more exciting than getting a big bag of sweets.
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GET THE OFFERS IN EARLY There’s no getting away from it, supermarkets are often the first port of call for consumers looking for treats. So getting your Easter range on shelf as soon as possible and clearly highlighting offers can play a big part in driving early sales. And remember to create displays next to the counter to encourage spontaneous purchases. If you leave
showcasing your seasonal ranges until a few weeks before Easter, customers won’t necessarily be buying eggs then as they’ll already have them.
SHARING IS CARING With spring’s longer days and better weather, many people will be planning longer journeys or early breaks away.
Stuart Johnson, Retail Controller, shares his tips for success “Confectionery is one of the most impulsive categories and spending some time getting it right can have a huge effect on sales. Refer to your 2016/17 Lifestyle Express planogram USB, where you can see a selection of manufacturers’ recommended plans. If you support a particular manufacturers’ reward scheme, you should choose their plan. To get you started and to ensure you have all of the bestselling products that your customers will be looking for, please see the Core Range confectionery listing. We strongly recommend that you stock all of these products before adding any additional lines, as well as all of the products for each of the subcategories, such as gifting, sharing, singles, sugar and mints. Don’t forget kids’ confectionery – most of the nostalgic brands are enjoyed by adults too!”
getting it right Here is the confectionery planogram and Core Range listing to ensure you’re stocking the right products
Grab-bags of sweets are a must to have available. Again, these can be spontaneous purchases, so promoting products such as Haribo and Fruit Pastilles near the till point is a great way of boosting sales.
RANGE IS KEY As with all categories, when stocking confectionery, range and choice are everything. By catering for all customers’ pockets, sales should never be a problem. Ensure that you are stocking the Core Range, ie the bestselling products.
PERFECT OPPORTUNITIES Consider displaying confectionery in different sites around the store to capture extra purchasing opportunities. These could be single bars by your lunch and newsagent sections, single bars and mints by the till point and sharing bags near wines and beers, perfect for that night in. Also, don’t forget to put boxed chocolates close to wines and other gifting opportunities, such as greetings cards and wrapping paper.
ITEM
SIZE
GIFTING Celebrations Ferrero Rocher Milk Tray Quality Street Roses
Carton T16 Box Carton Carton
SHARING Aero Mint Bassetts Jelly Babies Cadbury Eclairs Cadbury Giant Buttons CDM Dairy Milk CDM Fruit & Nut CDM Oreo Galaxy Galaxy Caramel Galaxy Minstrels Haribo Starmix Haribo Supermix Haribo Tangfastics M&M’s Peanut Maltesers Maoam Pinballs Maynards Wine Gums Nestlé Milky Bar Revels Skittles
Large Bar Large Bag Large Bag Pouch Large Bar Large Bar Large Bar Large Bar Large Bar Pouch Large Bag Large Bag Large Bag Pouch Pouch Large Bag Large Bag Large Bar Pouch Pouch
CHOCOLATE Aero Mint Boost Bounty Cadbury Freddo
Std Std Std Std
ITEM
SIZE
ITEM
SIZE
Cadbury Fudge CDM Caramel CDM Dairy Milk Crunchie Double Decker Ferrero Rocher Flake Fry’s Turkish Delight Galaxy Galaxy Caramel Galaxy Minstrels Galaxy Ripple Kinder Bueno Kinder Bueno White Kinder Snack Bar Kinder Surprise Kit Kat 4 Finger Kit Kat Chunky M&M’s Peanut Maltesers Maltesers Teasers Mars Mars Milkyway Stars Munchies Nestlé Milky Bar Picnic Rolo Smarties Snickers Snickers Starbar Toffee Crisp Twirl
Std Std Std Std Std T3 Std Std Std Std Std Std Std Std Std Std Std Std Std Std Std Duo Std Std Std Std Std Std Std Duo Std Std Std Std
Twix Twix Wispa Yorkie
Xtra Std Std Std
SUGAR Maynards Wine Gums Rowntree’s Fruit Pastilles Skittles Starburst
Std Std Std Std
MINTS & MEDICATED Halls Soothers Blackcurrant Lockets Honey & Lemon Polo Tic Tac Mint Tic Tac Orange & Lime Trebor Extra Strong Mints Trebor Softmints Peppermint Trebor Softmints Spearmint
Std Std Std Std Std Std Std Std
CHEWING GUM Airwaves Blackmint Airwaves Cherry Menthol Airwaves Menthol Eucalyptus Extra Cool Breeze Extra Ice Peppermint Extra Peppermint Extra Spearmint Extra Strawberry Extra White Extra White Bubblemint
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10’s 10’s 10’s 10’s 10’s 10’s 10’s 10’s 10’s 10’s
retailer matters 19
Money makers
17 ways to make money in
If you do what you’ve always done, the results will always be the same. Make 2017 the year you try something new, and watch your sales soar Make it easy Did you know that if every single convenience store shopper bought just one more item per visit, this would generate millions more income for the sector? We all know the scenario where a customer comes in for one thing, adds a few more and is left struggling to carry it all to the till. Not only does this make it less enjoyable for them but it means they have to cut short any impulse purchases, which has an impact on your sales. Make it easy for them by offering baskets, wheeled baskets or trollies. Position them by the door and at a midway point in store, and always keep them clean. Since we added baskets, we have a number of customers who now use us as their main shop. Having wheeled baskets also makes us the store of choice for older customers who otherwise would have struggled to carry their shopping around the store.”
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Raj and Bobby Singh, Lifestyle Express Newhouse MiniMarket, Kilbirnie, Scotland
In-store displays To really grab the attention of your shoppers, you need to interrupt their grab-and-go mentality. The best way to do this is by creating eye-catching displays, showcasing your products, your promotions and your prices. Theme your promotions and display them in highly visible areas of your store, such as the front, as this will ensure maximum exposure and drive up sales. Think about seasonal opportunities,
so Christmas, Valentine’s Day, Mother’s Day, sporting events such as the Olympics and FA Cup Final, and events like Big Night In when customers are going out less and spending more time in with drinks and snacks. Consider your local area and see what your customers are looking for, then get creative.
Promote your promotions It’s essential for any convenience retailer to prove to customers that by shopping right on the doorstep, they’re still getting great value. Promotions are essential for this as they communicate value clearly and in a way customers can’t miss. Take advantage of the best promotions in depot and the Lifestyle Express three-weekly promotions of must-stock products, and pass on those savings to your customers. So many products are price-marked and where I can, I like to offer promotions that undercut the price-marks so my customers know that I’m offering them great value. Customers already recognise price-marked packs as great value and if I can get lower than that, they’re delighted and will come back again and again. If there’s a particularly strong promotion, I’ll stock up so I can offer the discount for longer.”
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Manjinder Singh, Lifestyle Express Parkhill Convenience Store, Wednesbury, West Midlands
2
It’s a date AL
OU N
EED FOR A
BNIGIHGT IN
LY
By getting involved in local events, you can make your store the heart of the community. Whether it’s supporting local teams and laying on food-to-go when they play at home, or embracing old-fashioned
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retailer matters 21
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Money makers
traditions, there’s plenty of ways to use key dates or popular activities to drive up footfall. We really go to town for local events as we know how important they are for our customers. Every Christmas, we host Stir-up Sunday, when families come into the store to mix up the ingredients for a Christmas pudding and make a wish. When our village holds its Christmas fair, we all get involved, going out into the street with mince pies, drinks and sausage rolls. We’re definitely the heart of the community.”
Janette Tucker, Lifestyle Express Winscombe, Somerset. Janette won the Metropolis Unsung Hero award in 2016
Go premium While customers are always looking for great value, they don’t always want the cheapest items. While you need to cater for every price point, don’t forget to stock higher-priced items, such as branded alcohol, boxed chocolates or items for gifts. Be clear with your pricing and use in-store theatre and POS to signpost these products in store. While lots of my customers love a bargain, there are plenty who are happy to pay more for a premium brand. Grey Goose is always a winner, as is Bombay Sapphire. Courvoisier is popular, as are lots of premium whiskies, and my customers love to discover a new favourite, such as Royal Dragon vodka. Champagne is always in demand and I stock it at a variety of price points, including a £130 Dom Perignon. My customers know they can come here to buy a gift or spend a little more for an indulgent treat.”
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Nicky Kaur runs Drinks Express Anchor Wines in Aldridge, West Midlands, and won Drinks Retailer of the Year at the Convenience Retail Awards 2015
Communicate Social media is no longer just for catching up with friends or sharing images of your pet or meal. Facebook and Twitter are incredibly powerful platforms for businesses to share their news, products and promotions. Those stores that take the time to do this, as well as engage with the community and talk to their customers, are the ones who thrive. Make a commitment to posting daily, remind your customers what’s great about your store and share important information such as your opening hours and latest deals, and hammer home why you’re better than the competition. Talk to your customers about social media and ask if they’re following you or have liked your page. Always keep your Facebook page updated and use it as another shop window to shout about what you have on offer. Don’t be upset if someone says something negative, always respond in a positive, professional manner.”
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Calum Duncan, Lifestyle Express Kincraig Stores, Aviemore, Scotland, was named Best Retailer for Digital Engagement at the IAA awards 2015
Taste the difference If you already offer hot drinks to your customers, you may well be competing with other stores and forecourts close by. Make your offering stand out by stocking coffee syrups and offer customers a shot of their favourite flavour such as hazelnut or caramel, or seasonal shots like gingerbread or cinnamon. Not only are you offering something different and giving your customers a reason to choose you, but your store will smell delicious!
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Chill out With chilled and fresh offering the biggest opportunity for convenience retailers to increase their sales, think about how much space you devote to your chillers. By expanding them, you could add more ready meals, fresh meats and fish, cheeses and cooked meats, plus grab-and-go lunch options, all items known to boost sales. We didn’t have enough chiller space for dairy or fruit and veg. We invested in 13m of chillers with glass doors and we now have so much space and our energy bills are lower. Our chilled sales have dramatically increased and those customers who used to pop in for a soft drink now choose to buy their whole lunch with us.”
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Uzair Ali, Lifestyle Extra, Motherwell, Glasgow
Opening time Keeping a close eye on when the competition open and close their doors can transform your business. If local stores are all closing at 10pm, is there sufficient demand for it to be worth staying open later? Or could you open earlier to ensure early risers can buy their essentials or grab a hot drink on their way to work? We know a lot of our customers work shifts, so the store now opens at 5am three mornings a week and 6am for the rest of the week. This means our customers always receive their daily newspapers or can call in for their breakfast on the way to work.”
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Janette Tucker, Lifestyle Express Winscombe
The whole package When it comes to offering food-to-go, many retailers have discovered that it’s not just about offering a hot bite. While the odd few may just grab a sausage roll or sandwich, most customers want a full meal, adding a soft or hot drink, fruit, confectionery or crisps. So always think about your breakfast or lunchtime meal deals and transform a single purchase into much tastier margins. Food-to-go is one of my bestselling categories. Customers don’t just choose a hotdog or a hot snack, they want crisps and a drink and often a treat for later in the day. I now offer snacks from a Delice de France oven, a Perfect Fry machine for chips and
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Money makers
other deep-fried items, a Pot Noodle machine and a Rollover Hot Dog machine. My food-to-go offering is a real attraction.”
AJ Kassim, Lifestyle Express M&A Stores, Dudley, West Midlands
and sandwiches attract customers from miles around.”
Bobby and Raj Singh, Lifestyle Express Newhouse MiniMarket, Kilbirnie, Scotland
something new
It’s a deal
It definitely pays to source things that customers can’t get easily elsewhere. Whether this is a range of pick-and-mix sweets, craft ales, household items or children’s pocket-money toys, it gives customers a reason to call into your store instead of any other. Years ago, this site used to be a garden centre and people still make that connection. What started off as a trial of a few rolls of turf has now become a huge draw for customers. In the summer, I can sell around 5,000 rolls of turf each month, plus top soil and compost, and they all offer brilliant margins. Last July and August, this resulted in thousands of pounds’ worth of additional sales, and that’s without considering what those customers then spent inside the store.”
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Harvinder Singh Thiara (Marty), Lifestyle Express Marty’s Convenience Store, Great Barr, Birmingham
Think local If you don’t already, think about stocking some local products. This could be eggs, sacks of potatoes, bread, cakes, jam or honey. Once your customers know you’re the place to buy these items, it becomes another reason for them to visit you rather than a supermarket. We’ve introduced products from two local, high-quality food producers for meats and pies and artisan breads. Not only are they incredibly popular but we combine them to make fantastic sandwiches, which not only provide us with great margins but a great point of difference locally.”
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Robert Teal, Lifestyle Express Vitesse News, Barnsley
Food-to-go with a difference If you have a lot of passing trade at lunchtimes, it pays to offer hungry shoppers something a little different for lunch. Find a great supplier for your sandwiches or make your own with cooked meats and fresh breads. Install an in-store bakery oven and you can offer freshly baked sausage rolls, pies and pasties. Hot soups with bread rolls are a winter winner, while home-made delicacies like samosas, curries and chilli con carnes can prove to be a tasty money-spinner. I make home-made curries in our house, which is attached to the shop, and customers often comment on how great they smell. After some persuasion I made some for our customers and they just flew out. Now our curries, soups, rolls
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Everyone likes to feel they’re getting something at a better price, so offer your customers a multibuy deal. Whether it’s sandwiches, crisps, a snack and a drink, or an evening meal such as the ingredients for spaghetti bolognese, look at how you can offer a money-saving deal. Customers will know they can rely on you for their lunch or meal-for-tonight and save some money at the same time, so it’s a win-win.
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Practice what you preach
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Endorse the products you stock by putting them into use. Whether this is using the cleaning products, offering tasters of the cakes, biscuits or confectionery, or talking knowledgeably about the products and offering ideas or suggestions, this shows you’re an ambassador for your store and the products on your shelves. I use the pine disinfectant that I stock to mop the floors each evening. So many customers have come in and commented on the smell, they’ve bought it. I also burn a scented candle that I stock and my sales have gone through the roof.”
Kesh Bagha, Lifestyle Express, Rutherglen, Glasgow
plan ahead It pays to be one step ahead. Respond to local demand, such as checking the weather and stocking up on ice creams or soups. If there are any local events on and people will be walking past your store, think about what they might need and tell them what you have. Use display boards outside and eye-catching posters in your windows to shout about your promotions. Carry out leaflet drops, give out leaflets to shoppers and spread the word on social media.
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consider all your customers Always remember the smallest customers because if they enjoy coming into your store, so will their parents. Could you explain your range for children and create a point of difference locally? Pocket-money toys and a winning range of sweet treats will put a smile on even the most reluctant little shopper’s face. We noticed that we had a lot of young children come in with their parents and so we introduced a dedicated children’s area and tried to make it different to the things other stores stock. We’ve extended our range to include more unusual sweets and treats, such as sugar-coated butterflies, and it’s made us the most popular store for children and their parents locally.”
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Kamar Bhella, Lifestyle Express Broadway Wine Lodge, Featherstone, Wolverhampton
“everything’s changed Since swi Lifestyle Express. Our custome
For retailers Pragash and Krisha, transforming their dark, old-fashioned sho modern store hasn’t just benefited their customers, it’s revitalised their love 28 retailer matters
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Store profile
tching to rs love it!” p into a bright, gleaming, for retailing too
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Store profile
“Everything is brand new in the store, except me!”
Store CV Name
Time with Lifestyle Express Staff
Lifestyle Express Stechford Lane, Birmingham
Since October 2016 Five, including owners Pragash and Krisha
Features
Newsagency, free-to-use ATM, PayPoint, National Lottery, off-licence
Bestsellers
LSV, 4-pack beers, £1 chocolate blocks, breakfast bars, bread, milk and bacon
Nearest competition
Tesco, around a mile away
Trading times Mon-Sat 5.45am12.30am, Sun 7.45am-12.30am
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Q Shelves are packed with everything their customers need, including Core Range
“S
witching to Lifestyle Express has been the best thing we ever did,” said retailer Pragash Mahalingam. “Not only has it given our customers a real boost but it’s done the same for us. I genuinely love coming into work and looking at the store. When your store looks as good as this, you can never mind putting in long hours or getting your hands dirty – the reward for all your hard work is right there in front of you.”
A LABOUR OF LOVE And for Pragash and wife Krisha, there is plenty of hard work involved in running their store, but it’s a labour of love. The couple own several stores, including the small but perfectly formed 1,000-square-foot store on the busy Stechford Lane in Birmingham, which they recently converted to Lifestyle Express’s new premium grey fascia, having been with Londis for several years. “I knew I wanted to make some changes to the store to really explore its potential,” said Pragash. “It’s on a really busy main road, with plenty of passing trade, and we needed to do more to make the
pragash’s top tips... Spend more to make more
most of our great location and attract trade, so I started to look at the possibilities.” And the possibilities were endless, with plenty of symbol groups to choose from, but it was when Landmark Wholesale Retail Development Manager, Matthew Wakelam, showed the couple some plans for the store that Pragash made his decision. “When Matthew showed me the drawings for what the store could become, that was it, I was sold!” laughed Pragash. “It was exactly what I’d dreamed of creating but couldn’t put into words.”
BLOWN AWAY Working closely with the Lifestyle Express team, Pragash closed for a week while the work was carried out, before reopening with a completely different look. “I was absolutely blown away by the difference we made in just a week,” he admitted. “Everything in the store is brand new – the ceiling, the floor, the shelving, the lighting, I even have a brand-new till. In fact, the only old thing left is me!” And Pragash wasn’t alone in being impressed by the new-look ´
If you can afford a refit and have a good turnover and footfall, go to the top of your budget. Make it the best you can and you won’t have to do anything for a few years. Plus, it’s wonderful to feel so proud of your store.
“I want every customer to leave with a bag on their arm”
Add something new We added a free-to-use ATM that is built into the wall and it attracts so many customers. It’s now doing more than 100 transactions a day and 90% of those people taking money out come into my store to spend it; it’s been a real success.
Create an atmosphere As we stay open until after midnight, our lighting is essential. With LED lights, the store is bright and looks welcoming, and by playing music, we find our customers love shopping with us.
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Store profile
pragash’s bestseller basket
“As our store is so busy, it doesn’t take long for the shelves to empty, so I employ a full-time staff WOULD member to be responsible for stocking the shelves YOU LIKE and keeping the store looking immaculate – it YOUR STORE really works.” TO BE Pragash is quick to spot any potential FEATURED? opportunities, such as the bus stop opposite the store that is used by workers on the early shift Let us know. Get in touch. retailermatters@ at the nearby Jaguar Land Rover plant. “I quickly madebysonder.com realised that people needed to be at work for CORE RANGE = BESTSELLERS 6.30am, so they caught the bus at 6am. We now Although it’s a relatively small store, Pragash and open at 5.45am and the store is packed with people buying Krisha were determined that they would have a similar offer snacks, breakfast bars and newspapers,” said Pragash. “It’s essential to a supermarket. “We pack our shelves with everything we think that you work around your customers, not the other way around.” our customers need. We started with the Core Range, which means And this approach is clearly working for the couple as the we have all the bestselling items, then added additional items such store has gone from making £3,500 per week to more than as an ethnic range and a dedicated Value Zone, with the Lifestyle £15,000, but Pragash isn’t stopping there. “I know there’s more Value products. These just fly off the shelves – there’s still a strong appetite for products that are priced for those on a tight budget with I can do to drive things forward and my next target is to achieve £20,000 per week.” great quality too.” store. His customers have been wowed from the moment he first opened the doors. “Their reaction has been incredible,” he said. “So many customers come in to wander around before leaving with a bag full of products. Our promotions really grab their attention and word spreads fast, so we’re attracting new faces all the time, which is fantastic.”
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Retail excellence
10 steps to retail heaven Whether you want to make more money or attract new customers, it pays to think about the tiny details. Here’s Retailer Matters’ guide to running the best business in town
1
FIRST IMPRESSIONS
When it comes to your store’s appearance, put yourself in your customers’ shoes. Look at it with fresh eyes and check the details. Is your floor clean? Is it easy to find what you’re looking for? Does your signage work? Are your aisles uncluttered and easy to move around? Does the layout work? Is it easy to find own-brand alternatives? Is the pricing clear and easy to read? Go back to basics and walk your store every single day. Start outside and check for rubbish or an overflowing bin. Is your paintwork clean and cobweb-free? Are the promotions advertised still in date? Does your store look inviting and modern? If not, why not and what changes can you make to improve it? A great starting point is to give the woodwork a lick of paint to provide instant kerb appeal.
2
ROOM FOR IMPROVEMENT?
Why not challenge your staff regularly to identify one thing to improve per day? Whether it’s spotting a misplaced product, a missing price ticket or increasing the visibility of a particular product, challenge yourself and your staff to spot one thing daily that could be improved. If you have three members of staff, and include yourself, that’s a whopping 28 improvements that could be made in a week.
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Retail excellence
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3
SHELF APPEAL
UTILISE YOUR SECRET WEAPON A retailer’s secret weapon is all the expertise at hand. First port of call should always be your Business Development Manager in depot. They will visit your store, assess the competition
and discuss your next steps with you, using their industry knowledge and experience. They may suggest you speak to your Lifestyle Retail Development Manager to get more ideas.
5
SPEND MORE, MAKE MORE
The old saying ‘speculate to accumulate’ is true, particularly in retail. Competition is tough and those retailers who invest in their business with refits, new equipment and added services are the ones who succeed. Talk to your Business Development Manager (BDM) in depot about investing in your store, whether you have a little to invest or the funds to carry out a large-scale refit, and you’ll reap the rewards as your business thrives. A refit should ideally take place every five years, so when you’re due to make some changes, talk to your BDM.
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CHECK OUT THE COMPETITION If you have other stores on your doorstep, it pays to keep an eye on what they’re doing. Whether you excel with promotions or prices, or offer products they can’t, for example, a quality own-brand offer such as Lifestyle groceries or LSV energy drinks, make sure you have a point of difference. Offer a service that none of your competitors do, such as dry cleaning, hot drinks to take away, a home delivery service for older customers, fresh flowers, or utilities credit and debit payments. Give customers plenty of reasons to choose your store over the rest.
It’s all about the items on your shelves. Customers return to a store because it sells the products they want to buy and at a price they’re happy to pay. By stocking the essential Core Range bestsellers, you’re sure to have the most in-demand branded and own-brand products that customers need. Ask your customers if they have suggestions for new lines and act on them. Keep things fresh and interesting by moving promotions and products around. If shoppers walk past a display two or three times, you need to grab their attention by positioning it elsewhere. Think about where you can maximise sales and position complementary items next to each other. Look to stock locally sourced products in store and highlight where they appear. This could be local eggs, vegetables, meats, breads, pies, cakes or pastries.
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Retail excellence
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7
CUT YOUR BILLS
LITTLE DETAILS
We know that customers are used to the store standards of the supermarkets and discounters, and your store shouldn’t be an exception. Give your store a high-quality finish with professional-looking staff in Lifestyle Express uniforms. Offer customers baskets or trolleys to make their shopping experience better and put down branded doormats. There’s no reason why a small local store can’t compete with the big names when it comes to the tiny details.
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SMALL CHANGES, BIG DIFFERENCE
For any business, the need to drive down your overheads is a constant challenge. While you’re focusing on increasing your profits with great products and promotions, don’t forget to look at ways to reduce your overheads. This could be installing LED lighting, which not only looks great but also uses less energy, so it’s more cost-effective. Low-energy
Even if it doesn’t feel like the right time for a complete refit, you can still stay on top of standards and ensure your store remains clean, fresh and modern by making small tweaks on a regular basis. Do something that makes a difference every year, such as new shelving, new LED lighting or introducing a new service or product line.
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LOOK TO THE FUTURE Keep on top of the trends, such as meal-for-tonight, breakfast-on-the-go, and chilled and fresh. Follow the supermarkets and see what works for them. If they’re offering meal deals with a bottle of wine and it’s a hit locally, can you offer a similar deal? Think digital as online is not going away. Research shows that nearly one third of independent retailers have only embraced
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technology in the past year and, as a channel, we’re in danger of being left behind. Embrace social media to spread the word and talk to your customers and think about how technology can help you to run your store efficiently. Whether this is EPOS so you can track what sells and what doesn’t, or embracing contactless payments, it makes sense to be in the know.
refrigeration is another great money-saving option. Chillers with doors not only look sleek and professional but also save money on your bottom line. And the best news is that grants for making energy-saving changes within your business can be available via government and local authority organisations. If you are a member of Association of Convenience Stores or Scottish Grocers’ Federation, ask them if they are aware of any funding aid.
STORE PROFILE
Standing out from the crowd With nine stores all within a few minutes’ walk, the pressure is on Lifestyle Express retailer Gail Southall and husband Paul to beat the competition
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Store profile
Store CV Name
Time with Lifestyle Express Staff
Lifestyle Express Lanesfield Convenience, Wolverhampton
Since September 2016 Nine, including Gail and Paul
Features
PayPoint, National Lottery, CollectPlus, newsagency, off-licence
Bestsellers
LSV, Coca-Cola, milk, bread, Lifestyle Value and Lifestyle groceries
Nearest competition
Nine stores within five minutes’ walk
Trading times Mon-Sat 6.30am-8pm, Sun 7am-8pm
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P
ositioned proudly on a busy main road bordered by residential estates, Lanesfield Convenience is in a great location for passing trade, residents and commuters. The downside is that lots of other retailers agree and in recent years, the area has become inundated with convenience stores. “There are so many other stores close by that it’s essential we stay on top of our game,” said retailer Gail Southall. “There are nine other stores within easy walking distance, so we can’t afford to let standards slip. We’re even competing against ourselves!”
FAMILY BUSINESS It’s unusual but true. Gail’s Lifestyle Express store is opposite the local Post Office and Spar run by Gail’s husband Paul. “It’s so close, I can even see Paul’s store from my window,” she laughed. Gail’s store has been in Paul’s family for more than 45 years, originally run by Paul’s grandparents, then his parents. Gail
Q The new, modern grey fascia was a big draw for Gail and Paul, and it’s attracting new customers all the time
´
Store profile
“Lifestyle Express jumped out at us as the best option . The new grey fascia really caught our eye as it looks so clean, professional and modern”
and Paul took over more than 20 years ago, before buying the Post Office and store opposite in 2003. “The stores have always been Spar, as that was the symbol group chosen by Paul’s parents, and we’ve never looked to change, but given the huge amount of competition we’re facing now, we wanted a new look and feel for this store to really stand out,” said Gail. “We explored lots of different options and Lifestyle Express jumped out at us as the best option to suit our customers’ needs. We can offer different products and own brands, and the new grey fascia really caught our eye as it looks so clean, professional and modern.”
NEW LOOK, NEW FACES And the refurbishment has paid off as the store is attracting customers, both old and new. “We have a lot of regular customers, but we’ve definitely noticed that since we’ve had more competition, even the most loyal customers can be tempted to walk that bit further to another store, sometimes just to save a few pence,” admitted Gail. “With the revamped store, we’re seeing a lot of new faces, and they’re coming back time and time again. Local people are quick to come and try something new, such as the Lifestyle own brand, and regulars are keen to see how much they can save shopping with me rather than the other stores in the area.”
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Store profile
gail’s top tips... Stock price-marked packs By stocking products that are clearly price-marked, your customers know they can trust you. Price-marks are a great way to level the playing field if you have a lot of local competition.
Store standards Another real benefit for Gail has been the range of Lifestyle promotions, which have already caught the WOULD attention of her customers. YOU LIKE “By being part of the retail club, we get the leaflets to distribute about the latest promotions and these YOUR STORE have been a real benefit,” said Gail. “Customers come TO BE in with them, looking for products, and we often get FEATURED? regulars asking about when the next leaflet will be Let us know. Get in touch. out and wanting to know about the next promotion. retailermatters@ madebysonder.com For spreading the word, the leaflets are invaluable.” As Gail has discovered, being proactive with the resources available to retailers through Lifestyle Express, such as promotional leaflets, really can make such a difference.
COMPETITION BEATER With a new-look store that has genuine kerb appeal, a packed promotions schedule, great products, a quality own brand and a firm focus on delivering great customer service, Gail’s in a prime position to beat the competition every day – even her husband.
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It’s essential that your store is clean and tidy, with aisles clear so it’s easy to move around. And always greet your customers with a smile.
Rules and regs Stay on top of the ever-changing rules and regulations around running a small business, especially those around staff. The National Living Wage is going to have a big impact on independent retailers, so make sure you stay updated on what you need to do.
Gail’s bestseller basket
stock up now Retailers who stock up on the latest promotions from Landmark Wholesale will be quids in. And with more than 100 £1 bestselling products on offer, retailers can kickstart their new year sales. The All You Need for Your £1 Attack promotion, from 23 January until 11 February, combines some of the UK’s most popular brands with Landmark Wholesale’s award-winning own-brand range, with all products just £1 for singles or multi-buys. And, as a bonus, Lifestyle Express retailers can also get Cash Back.
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Value
Sale of the
century As shoppers look to save, it pays to focus on great prices. And, for Lifestyle Express retailers, value isn’t just for January, it’s all year round
E
very retailer knows that the first couple of months of the year tend to be focused on one thing: great value. As UK shoppers hit the sales straight after Christmas, it’s not hard to see that we’re all tightening our purse strings and looking for a bargain. While you might think this only relates to furniture or clothes, the fact is that at this time of year, everyone wants to save some money. And, with the fantastic range of products available at your local Landmark depot, your customers are in luck.
PROMOTIONS, PROMOTIONS, PROMOTIONS With customers keeping a close eye on prices, offering fantastic promotions is a winning way to provide them with the
products they want and need at surprisingly low prices. Lifestyle Express retailers benefit from the three-weekly promotions that offer many of the big names in grocery at reduced prices, so it makes sense to stock up, especially on those products with longer shelf lives. And once you have great promotions, make sure you make the most of them. Position them in the best spots in-store and grab customers’ attention the moment they walk in. Gondola ends are ideal to shout about value and they’re also where customers look to find the best deals. Stay on top of stock levels to ensure that your availability is tip-top and at the end of each day, you’ll be able to see which products are particularly popular. If a promotion flies off the shelves, stock up and extend the offer to ´
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Value
make the most of its popularity. Always keep an eye on the best deals in depot and never be afraid to run your own promotions – it’s how stores get a great reputation for value.
BEST NAME IN TOWN Stocking the Lifestyle and Lifestyle Value own-brand products is a sure-fire winner when it comes to demonstrating terrific value. Not only do they offer shoppers a value alternative to the big brands, but they are also a way to stand out from other stores nearby. There are so many options to choose from: Lifestyle; Lifestyle Value; LSV; Vintners Collection wines; Prince Consort spirits; a range of ciders including White Storm, Black Storm and Amber Strong; and No.3, the own-brand range of cigarettes.
THE PRICE IS RIGHT Another clear way to offer value is to stock price-marked products as they show a consumer that they are getting value for money. A shining example of this is the Lifestyle Value range of everyday groceries. Not only can you rely on a fantastic POR, but your customers are guaranteed excellent value for money. Add Lifestyle own-brand to the equation and you can have real
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“It really does pay to follow the Core Range. Retailers stocking the entire recommended range have reported an average increase of £1,000 in weekly sales”
that customers are drawn to the most? What is currently on display by your entrance? Positioning value products in an easy-tospot location in your store could be the difference between catching the eye of a passer-by or allowing them to continue on their route to a competitor. Make sure to position your value ranges next to branded products with clear price tickets so that the price difference is impossible to ignore.
PRIORITIES confidence that your customers have access to a comprehensive range of good-quality, low-price alternatives to market-leading and major brands.
SHOW OFF The new year is the perfect time to look at introducing new lines to revamp your store appeal. It’s also a great time to look at how you can show off your value lines, so think about moving things around to create a real wow factor in-store. Is there a section
While every store and its customers are different, it really does pay to follow the Core Range when it comes to stocking your shelves. The Lifestyle Express Core Range has been created by retail experts, featuring a hand-picked selection of 800 bestselling items, and is guaranteed to provide your customers with what they need. Every year, the range is updated using sales data and customer trends, and retailers stocking the entire recommended range have reported an average increase of £1,000 in weekly sales. Pretty impressive, eh?
All you need to know…
Exceptional
customer service Here’s a little refresher on how to give top-notch customer service
W
ith the start of a new year comes resolutions and a typically quiet couple of weeks to take stock and have a think about what you can do to improve and refocus on customer service – the cornerstone of good retailing. Providing an excellent service for customers is one of the key areas where independent retailers can really stand out. And you have the upper hand. Why? Because your store size means you can greet every customer who comes through your door, and that greeting will mean a lot; it shows you care and that you appreciate them choosing your store over another. Ask if they have found everything they need and if you can help them with anything. If there’s a product they want but isn’t stocked, suggest an alternative. Try sourcing local products and stocking more unusual or different items to those the multiples can for a real point of difference. And remember to make a show of what you’ve done. Similarly, asking your customers for their feedback on all aspects of your store and service shows that you value your customers and what they have to say. But remember, it’s just as important to act on the feedback as it is to listen to it. You need to be consistent but it’s also good to surprise your customers, and you can do this by adding new lines and services. Not only will it encourage them to buy on impulse but it keeps the shopping experience fresh and exciting. Try and remember what your regular
customers like, and when their favourite items are on promotion, tell them about it, and provide special buys such as buy a jar of sauce and get a bag of pasta for half price. It shows you know them and want to give them good value. If your customer base is value-driven, create special displays of Lifestyle Value products in a prominent position in-store, such as a gondola end.
POINT OF DIFFERENCE Think about how your store caters for your shoppers’ needs. For example, do you have baskets or even trolleys to help them shop easily (it will also encourage extra sales if they can gather more products than if they were just able to carry them)? If you see a customer struggling to carry all their groceries, offer to get a basket for them or to take their items to the till while they continue shopping, or even suggest they take a seat while you shop for them. And don’t forget to point out any promotions that they may be interested in or have missed. What else could you do to give your customers exceptional service? Provide
“Try sourcing local products or stocking more unusual or different items to those the multiples can for a real point of difference”
a shopping delivery service for those who struggle to make it into store. You can take orders by phone and then deliver to their door. If this isn’t quite feasible for your store, consider approaching other local stores and team up to provide a home delivery service. Take your thinking off-piste. For example, hold taste tests of new products, or for special events, offer tasters of products, giving your customers the opportunity to try them for free and boost sales potential. For your regulars, show how much you appreciate their custom by giving them a small gift at key times, such as a chocolate egg or novelty treat at Easter. Share the load, make sure your staff are as dedicated to providing exceptional customer service as you are and provide training where necessary. You could even give employees a dedicated role, such as champion of promotions, or greeter at the store entrance, and watch your customer satisfaction soar along with your sales.
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Your guide to…
Managing an
in-store bakery Get those sales to rise by offering freshly baked goodies to tempt your customers in to your store and keep them coming back for more
W
hen it comes to luring in new customers, you can’t go wrong with the smell of freshly baked bread or an enticing array of hot pies, pastries and sausage rolls. From breakfast bacon rolls or croissants to a mid-morning pastry or a lunchtime pie, in-store bakeries are boosting the sales of an ever-increasing number of retailers, all looking for a food-to-go offering that will set them apart and satisfy even the hungriest customer. Bakery has always been popular in convenience and the timeless appeal of bread isn’t looking to fade anytime soon.
With the UK bakery market estimated to be worth around £3bn and bakery products consumed by 99.8% of the British population, it’s no surprise that the bakery channel grew more than 20% last year and looks set to continue for the next few years. Offering an in-store bakery is the perfect way to stand out from the crowd right now, as the supermarkets are taking out their in-store bakeries. Team your offer with a hot drink and other snacks and you could well be looking at the perfect way to ensure your sales rise and rise.
WHAT WOULD I SELL? While traditional croissants, scones and Danish pastries continue to sell like hot cakes, in recent years there has been an increased demand for speciality breads. Can you see your customers choosing a fresh ciabatta, rye loaf or focaccia? Demand for artisan breads is reportedly growing at 20% each year, so you can’t afford to assume your customers will always be happy with just a standard white sliced loaf. For some retailers, the trends have shown that more artisan-style products, such as chocolate chip ´
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Your guide to…
brioche, sweet pastry twists and indulgent seasonal treats like parkin, muffins and gingerbread men, are most popular, while for some, traditional offerings such as doughnuts, pastries and pies tick the boxes. Before you make a decision, talk to your customers and find out what they would be tempted by and why – the answer might surprise you.
SO, WHAT ARE THE OPTIONS? If you’d like to give it a whirl, a great option for a bakery first-timer is to work with a company such as Cuisine de France. A rep will visit your store, assess your existing stock and footfall, and recommend a range of products to start with and suggest the size of display unit that will work best. The options are varied, but many retailers begin with a thaw and serve option,
which delivers fresh baked goods that haven’t needed an in-store oven, though, of course, you miss out on the tempting aromas. The next step is to install a small oven where you can bake straight from the freezer and then display in a heated unit. Retailers stock up a freezer with bakery items and decide on the day what to heat for customers – savoury or sweet. This option allows you to react to the previous days’ sales and monitor waste, while creating some enticing smells in-store. If the first bake of the day takes place around 7am, and is topped up later in the day, this will tempt the early birds wanting breakfast and plant the seed for those later in the day to return for a lunchtime snack. With minimal outlay, working with a partner could be the right way to decide if an in-store bakery is for you.
“A great option for a bakery first-timer is to work with a company such as Cuisine de France”
Another option is to source your own items, oven and display unit, and you can achieve even better margins, though the initial outlay is far greater. Or, source your own display unit and work with a local supplier to provide pies, pasties, cakes and pastries and have them delivered daily. Whatever you go for, think it through and get ready to make some ‘dough’.
coming next issue... High point Could an overhead gantry transform your store?
Ignite your sales How energy drinks spark customers’ interest
Just out The must-stocks for spring
It’s the law All you need to know about the new tobacco legislation
The future’s lite Are you stocking healthy options?
Read all about it The latest industry updates
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Lowdown THE
The size of the
prize
Help is at hand to boost your sales even further by supporting you to make the most of tricky categories that offer great potential
N
ot content with identifying gaps in retailers’ Core Range and helping them to significantly boost their sales, now the Lifestyle Express team of Core Range Advisors are turning their attention elsewhere. Determined to help retailers make the most of sales in three categories that are notoriously tricky to get right, our team of Core Range Advisors will be helping retailers up and down the UK to understand these categories better and drive up sales.
TRICKY TRIO The categories are wine, pet food and boxed gifting chocolates. For example, we know that wine is a complicated category, but you don’t have to be a wine expert to get the most from it. As one of the UK’s favourite tipples, it’s essential that you offer a good selection of the key brands at various price points to satisfy every shopper. Add in some merchandising advice, such as always displaying premium wines on the top shelf, and you’ll be well on your way to driving up sales. Each category has its own information leaflet that explains a little about the category and provides essential advice about layout, planograms and sales statistics. But
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WOULD YOU LIKE TO FIND OUT MORE? Drop a line to corerange@lmkcc.co.uk
that’s not all; on the back of each leaflet there’s a list of the Core Range products that are proven to sell, alongside the incentive up for grabs if you buy those missing products. And the size of the prize is impressive: between £3 and £7 per case paid when we re-audit your store four weeks later. Lifestyle Express has only just introduced
these projects but, so far, retailers are delighted with the results. Mansood Ahmed of Lifestyle Express, Airdrie, has said that not only has he dramatically improved his sales in the wine, boxed chocolates and pet food categories, but he’s also landed a £97 reward. He’s already looking forward to the next batch of categories.