Retailer Matters 41, May/Jun 2017

Retailer Matters

Issue

41 May/Jun 2017

The magazine exclusively for Lifestyle Express retailers

DON’T MISS

Tricks of the trade

Retailers share the stories of their success

Early risers Tempt customers with tasty breakfast offers

Close to home

Why local products are a crowd-pleaser

Shopper facts

summer?

Ex cl fr usi om ve ly

What’s hot this

How well do you know your customers?

Follow our tips and advice for sizzling sales

Plus. . . STORE PROFILES ■ INDUSTRY NEWS ■ LATEST MUST-STOCK PRODUCTS RM41_p01_Cover_v4.indd 3

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Welcome

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Finally, it’s that time again – spring is behind us and the great British summertime is here!

And with the summer comes plenty of hot opportunities for you 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 DISCUSS ADVERTISING AND EDITORIAL OPPORTUNITIES Please contact Stuart Johnson on 01908 255320 or email stuart. johnson@lmkcc. co.uk 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.

to take advantage of.

We all know that as the seasons change, so do the needs of customers. For the warmer months, stock up with the bestselling ice creams and lollies,

20

soft drinks, chilled beers, wines and ciders and don’t forget all those vital ingredients for the impromptu barbecues.

In this issue, you’ll see that we’ve covered

48

a category that is a real treat for convenience retailers: pet food. We’re a nation of pet lovers and owners won’t see their furry friends go without, so follow our top tips to become your customers’ go-to store for all things pet-related.

You can also read about how to create a real point of difference by stocking local produce. Whether it’s jams, bread or sausages, you can be sure there’ll be an appetite for locally produced goods that your shoppers can’t get anywhere else.

As always, we’re looking for retailers with great stores and great stories, so if you’d like to be included in the magazine, please get in touch.

Have a great summer!

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

stuart.johnson@ lmkcc.co.uk ISSUE 41 2017

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Contents 39

53

57 07 Need to know The latest news, views and product insights from around the industry

11 ones to watch Our round-up of the latest must-stock products, from energy and protein drinks to wine and cat food

on the cover Thanks to cover star Inderjit Sokhal from Prestige Wines Store, Halesowen (p20)

15 Pet food With the UK being a nation of animal lovers, take advantage and stock up on pet food

20 store profile

Inderjit embarked on a retail venture after spotting a great space in his local area

39 Store profile Prasath shares the story behind his store

57 engaging with the community

How to be at the heart of local neighbourhoods

60 next issue Coming up in July

11 34

34 rise and shine!

Tempt customers with tasty treats for breakfast on the go

comes 48 here the sun

Your guide to making the most of the summer sales potential

53 local touch

Stand out from the crowd by stocking locally sourced products

62 the lowdown Understanding who your shoppers are

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Need to know Are you compliant?

Now the new rules on tobacco packs and packaging have come into force, are you playing by the rules? Here’s your checklist Every retailer that sells tobacco will know about the essential changes to legislation this May. And, with the rules coming into force on 20 May, if you’re not completely sure what this means for you, now’s the time for you to swot up on the changes.

CIGARETTES

■ No branded packaging is allowed, all packs will be available in the same dull brown colour ■ All brand names will be printed in the same standardised font, size and case ■ There will be no tar, nicotine or carbon monoxide information ■ There will be a pictorial health warning covering 65% of the pack’s front and back ■ Text health warnings must also cover 50% of the sides of the pack ■ Packs will be available in a minimum pack size of 20 cigarette sticks ■ Only flip-top lip and shoulder box hinged-lid cigarette packs are permitted ■ Menthol and click capsule cigarette products will be banned from May 2020

ROLLING TOBACCO ■ No branded packaging is allowed, all packs will be available in the same dull brown colour

■ All brand names will be printed in the same standardised font, size and case ■ There will be a pictorial health warning covering 65% of the pack’s front and back ■ Text health warnings must also cover 50% of the sides of the pack ■ Pouches will be available in a minimum size of 30g

CIGARS AND CIGARILLOS

■ While cigars and cigarillos must adhere to the new tobacco legislation from May 2017, they are exempt from minimum pack sizing and also plain packaging legislation ■ Cigars and cigarillos (of less than 3g) must adhere to the following: ■ health warnings must cover 65% of the front and back of pack ■ health warnings must be positioned at top edge of pack ■ text health warnings must also cover 50% of other sides of the pack

PIPE TOBACCO

■ While pipe tobacco must adhere to the new tobacco legislation from May 2017, it is exempt from minimum pack sizing and also plain packaging legislation.

However, it must adhere to the following: ■ larger health warning

covering 65% of the front and back of pack ■ health warnings positioned at top edge of pack ■ text health warnings must also cover 50% of other sides of the pack

E-CIGARETTES

■ Many retailers believe e-cigarettes to be exempt from the new tobacco legislation, however, there are some changes and e-cigarettes must adhere to the following: ■ e-cigarette packaging must carry a text health warning covering 30% of the front and back of the pack ■ e-cigarettes presented as medicinal products will be subject to existing regulation for medical licensing and are not impacted by these changes ■ there will be a 10ml maximum volume for e-liquid bottles and a 20mg/ ml maximum concentration of nicotine in e-liquids ■ e-liquids in tanks, cartridges, capsules and single-use devices will have a 2ml maximum volume

WHEN DOES IT CHANGE?

■ 20 May 2017 E-cigarettes, cigars and pipe tobacco can still be sold in branded packs in the UK as long as they adhere to new regulations ■ 21 May 2017 Branded packs of cigarettes and rolling tobacco can no longer be sold from UK retail outlets ■ Cigarette packs of less than 20 and rolling tobacco of less than 30g can no longer be sold in the UK ■ May 2020 Menthol and click capsule cigarettes can no longer be sold in the UK

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Need to know

What’s hot …

The magic number For independent retailers, the £1 price point is the best for impulse purchases, but it’s hoped that wholesalers will follow Poundland in its introduction of £2 and £5 lines.

gin’s the winner Annual gin sales rose by 16% last year to smash through the £1bn barrier for the first time, with more than 40 million bottles sold during 2016.

no flat sales for craft ales The number of UK breweries has risen by 8% to more than 1,700 over the past year as the surge in demand for craft beers continues.

What’s not…

In hot water With industry research showing coffee market prices rising by 4.9% year-on-year due to demand outstripping supply and Kenyan droughts heavily impacting the tea market, retailers need to think twice about passing on the increased trade cost to customers.

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Good causes to benefit from new campaign For those retailers offering National Lottery instore, a new campaign has just launched offering players the chance to vote for local causes set to benefit from National Lottery funding.

The People’s Projects is a partnership between the Big Lottery Fund, ITV, STV and the National Lottery, and

gives the public a say in where some of the funding will go.

OPPORTUNITY

Camelot Head of Retail James Pearson said: “This is a great opportunity for retailers to engage with their customers and actively involve them in the voting,

Partnership to help reduce crime ASSOCIATION OF Convenience Stores (ACS) has renewed its partnership with Crimestoppers, the independent charity focused on tackling crime.

Figures from the ACS 2017 Crime Report reveal that the annual cost to retailers for shop theft is close to £2,600 per store.

“In the last year, there were an estimated 9,400 instances of violence and abuse against retailers and staff,” said James Lowman, ACS Chief Executive.

“When the most serious incidents occur, it’s important that the industry stands together, which is why we’re continuing our important work with Crimestoppers to provide support to police forces and

raise awareness of crimes against retailers.

“We hope we will not need to offer any rewards in 2017, but we remain committed to doing so if necessary.”

CRIME-FREE

Crimestoppers Director of Development Rodger Holden said: “Convenience stores are vital outlets within local communities, but there are some who abuse this. We need your help to ensure they are crime-free by telling us who it is that’s committing crimes against them.”

Incidents of crime can be reported to Crimestoppers anonymously on 0800 555 111 or via its online form.

reinforcing that important link between the money people spend each week on their National Lottery tickets and the massive difference that National Lottery funding makes to communities.”

Healthy options and profits With increasing consumer demand for healthier lifestyles, healthy options are leading the way when it comes to soft drinks.

Last year, soft drinks became the number three reason for shoppers to visit a convenience store, hot on the heels of milk and tobacco and overtaking bread for the first time.

With consumers looking for immediate refreshment without sacrificing their need for health and wellness, retailers need to think about their stock decisions. Look for low-calorie, low-sugar and no-sugar options, which now account for a healthy percentage of the market.

LOOK AT OFFERING PLENTY OF WATERS Stock flavoured waters and any products that offer health benefits such as LSV Water, enriched with Vitamin B.

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In the

know James Lowman, Chief Executive at Association of Convenience Stores, talks deposit return schemes

O

ver recent weeks, there has been a growing interest in each of the administrations of England, Scotland and Wales about deposit return schemes for bottles and cans.

For those of you who haven’t seen this in action before, it’s a scheme currently in place in some European countries that puts an extra charge (for example 10p) on a bottle that is then refunded when the person returns that bottle to a retailer, either manually or through a large ‘reverse vending’ machine.

For convenience store owners in the UK, there are several problems with taking part in a deposit return scheme. Firstly, over 90% of stores in the sector are under 2,000 sq ft, so finding space to either fit a reverse vending machine or to take potentially hundreds of bottles and cans behind the till every week is an expensive and cumbersome operational challenge.

For those that can’t put a machine in, staff in store would have to manually administer the scheme at the till, creating queues and potential flashpoints with customers that may have packaging not eligible for a deposit refund.

In addition to consultation with retailers, including focus groups and other research, we have put together evidence from consumers in England, Wales and Scotland that sends a clear message: the introduction of a deposit return scheme in any area of the UK would be ineffective, confusing and unnecessary.

Overall, 70% of the consumers that were asked about ways that they would want to recycle said that they preferred to use the existing kerbside collections, and their main motivators for them to recycle more were to have more recyclable packaging and clearer labels of what can and can’t be recycled.

This is not an issue that can be solved with a small business or small store exemption either. If a deposit return scheme were to be put in place just for large stores and supermarkets, that would lead to people storing up their bottles and cans and then driving to those stores to deposit them. This would take important trade away from convenience stores.

The debate on a deposit return scheme is going to develop throughout the year, but it’s important to note that ACS will continue to make the case for it to be scrapped.

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Ones TO watch Which products to have on your shelves, from drinks to pet food

Get a boost Everyone needs a boost from time to time to help them make the most of their day and Boost Drinks has just the product: Protein Boost Boost. Available in two flavours – strawberry and chocolate – the drinks are ideal for grab-and-go customers.

There’s an impressive 20g of protein in every bottle, no added sugar, zero fat and less than 150 calories. Protein is an important part of a healthy, balanced diet and Protein Boost will help you take advantage of the continuing trend for on-the-go health drinks.

Fine wine Award-winning New Zealand winemaker Mud House is proud sponsor of The British and Irish Lions and has grown to become the UK’s third largest New Zealand wine brand in UK convenience. The delicious range of wines will appeal to every consumer with its smooth and crisp flavours.

Health choice New Special K Nourish is a nutritious combination of multigrain and wheat bran flakes and clusters of oats, rye and seeds for a delicious start to the day. Full of fibre and with extra folic acid, this is a great new product to stock to cater for the growing number of health-conscious customers.

Available in Berries, Dark Chocolate & Coconut, and Seeds.

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Ones TO watch Vitamin waters Keen to capture the growing customer demand for waters, Landmark Wholesale has launched vitamin-enriched flavoured waters to its bestselling LSV energy and sports drinks range. The brand-new 500ml bottles come in two refreshing flavours: Mixed Berry and Lemon & Lime.

Enriched with vitamin B to reduce tiredness and fatigue and boost energy levels throughout the day, LSV Waters are an important addition to the soft drinks category to meet increasing demand for refreshing and healthier options.

Price-marked at just 40p, they provide fantastic value for shoppers and a minimum 30% POR for retailers.

Available as cases of 12x500ml bottles.

What a feast!

Mint pots Nestlé Confectionery is launching a new pot format for mint brand Polo, offering a convenient pack for on-the-go shoppers and a trade-up opportunity for retailers.

Polo pots are made from recyclable plastic and contain 44 mints in three varieties: Original; Sugar Free; and Sugar Free Extra Strong. RRP £1.49

Tap into the under-£1 on-the-go snacking market with new Feast Sandwich: a vanilla ice cream sandwich with a biscuit and chocolate coating with Feast’s trademark nutty pieces.

The product is part of Unilever’s £7-million Talking Ice Cream campaign.

RRP 80p

Breakfast in a bottle Capture those shoppers who want breakfast on the move with Weetabix On The Go. Now available as a handy multi-pack of three bottles in strawberry, chocolate and vanilla, the smooth drink contains no artificial colours, flavours, preservatives or sweeteners and contains all the energy, fibre and protein of Weetabix cereal with milk. 3x250ml

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Biscuit brekkie The well-known Kellogg’s Nutri-Grain Breakfast Fruity Bars have a new recipe. The soft, golden baked crust is made with wholewheat, wheat, wholegrain oats and barley and has a variety of fillings including blackberry & apple, strawberry, blueberry and apple. Perfect for on-the-go shoppers. Also newly launched are Granola Crunch Biscuits in Choc Chip and Honey Oat flavours.

Purrfect packs for cats The ideal product to boost your pet food sales – stock up on the UK’s number-one bestselling pet food brand* with the launch of new Felix 3 for £1 price-marked 100g packs. Available in three flavours – Beef, Chicken and Tuna – FELIX is an irresistibly tasty meal cats love. *Source: IRI SIG Pet Outlets 52 w/e 26 Feb 2017

Cheers to beer for all Peroni Nastro Azzurro has launched a new beer that is gluten-free. Using exactly the same high-quality ingredients as regular Peroni, and without compromising on taste, it just has the gluten removed. And forecasts predict that over the next few years, the gluten-free beer market will grow at more than 40%.

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Strapline

Man’s

best friend

The UK is known for its love of animals, so are you making the most of pet food; the ultimate convenience product?

W

ith more than 18 million cats and dogs owned in the UK, it’s clear that, as a nation, we love our pets. As furry or feathered family members, we want the very best for them, which is why pet food is one

of the biggest categories in convenience.

Pet food shopping is now worth a staggering £2.5bn in retail and is the eighth largest grocery category (Kantar Worldpanel Feb 2016). This means one thing: you need to get your pet care offering right and you’ll see your sales soar.

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Pet food

WHAT WE KNOW

When it comes to ensuring our pets are happy, we know that 81% of pet owners treat their pet like a member of their family.

When owners run out of supplies for their pets, they will go to their local store to buy more and so as convenience retailers based right on your shoppers’ doorstep, you are best placed to make the most of the pet care category. It’s essential that you don’t just stock up on foods; make sure premium ranges are included as well as pet treats.

We also know that pet care shoppers are incredibly loyal to the brands their pet prefers. When it comes to range, start with the listed Best Sellers from the Lifestyle Express Core Range and then talk to your customers about the products they want to see on your shelves. If you’re responsive to their needs and introduce new products, variants or pack formats, they’ll come back again and again. If you don’t stock the brands your customers’ pets want, they’ll leave without spending a penny.

INVALUABLE SHOPPER

While customers shopping for pet products will be browsing the aisles looking for the right thing for their pampered pooch, they won’t stop there. We know that customers who spend on their pets also spend more in-store than their non-pet-loving fellow shoppers. On average, those with pets buy 4.6 items per visit, compared to 2.6 items for those not looking for pet purchases. So clearly, pet lovers are an invaluable shopper.

So, how do you keep them happy? Well, think carefully about your range. Are you stocking the bestsellers that are proven to be the most sought-after brands and, therefore, the ones your customers want? We have done the research for you and know what sells best, so follow the Core Range and planograms. That way, you can make the most of every inch of shelf and dedicate the perfect amount of space to premium, branded and own-brand products.

According to retail research, Felix, Whiskas, Go Cat, Sheba and Gourmet Perle top the list for our feline friends, while Bakers Complete, Winalot, Pedigree and Cesar are man’s best friend’s choice. And, of course, while the brands are hugely successful for pet lovers, don’t forget to stock up on the quality own-brand option,

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Lifestyle Value, which delivers great value for your cash-conscious shoppers.

It also pays to stay aware of the latest new products in this category as many owners will happily splurge on a treat or impulse purchase. Stock NPD next to essential pet care items and use all associated POS. The same goes for treats – position them next to the basics and owners won’t be able to resist indulging their Fido or Felix.

MERCHANDISING PERFECTION A great range will help maximise sales but good merchandising is equally as important. Consider blocking products by brand to create an eye-catching, easy-to-navigate display as your customers know the brands their pets prefer. Enhance your offering by including price-marked packs to reflect value for money and

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Did you know?

The average cat consumes an average of

1,500

cat food pouches per year

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Pet food

top five tips for the pet food category 1Invest in impulse Make sure to stock sub-categories, such as cat and dog treats, by customer hotspots to drive up basket spend.

2

Cover all bases While the demand for premium is growing, make sure all bases are covered by stocking a variety of pack formats, and premium, branded and Lifestyle Value products too.

3

Stock up Build trust with your customers by making sure their favourite pet food is always available and talk to them about what they want.

encourage impulse purchases. Position bestselling lines at eye level, the central focal point for browsing customers, to encourage them to add products to their basket.

You can also drive up impulse spending by positioning cat and dog treats in areas where customers linger, such as around newspapers. Nestlé Purina research indicated 60% of sales on treats were purchased on impulse, making a great incremental opportunity for convenience retailers. If you don’t sell newspapers in your store, position treats by the till – it’s a great way to engage with customers who are about to complete their shopping mission.

Talk to your customers – if you see them buying one or two tins or pouches, find out what else they’d like to see you stock. You may only stock one brand their pet enjoys and if you added more, you’d become their go-to store for all their supplies instead of an emergency top-up mission.

AVAILABILITY IS CRUCIAL

The pet food category is growing at a rate of 4.7% year-on-year in the convenience sector, so it’s essential that you keep up with demand. Make sure your pet food shelves are always full to give customers the confidence they can return to your store at any time to pick up their preferred product.

With pet food shoppers ranked as high

basket spenders, it’s important to prioritise this category to encourage shoppers to fill their basket and pick up pet food in your store over anyone else’s.

Lack of availability is the number-one reason shoppers fail to buy pet food and with many animals accustomed to a certain product, owners will look to make repeated purchases of the same brand.

4

Shout about value Promotions are hugely successful in this category, so show off your best offers and multi-buy deals by using all POS and in-store theatre.

5

Tempt shoppers in with other items Encourage shoppers to visit different areas of the store to buy items other than pet food.

Eye-catching displays and great use of gondola ends and promotional bays and dump bins will achieve this.

Did you know?

The average convenience pet food shopper spends

£1,153

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“it was clear that Lifestyle express was the perfect fit.

Everyone’s reaction has been really positive” Spotting the perfect store led first-time retailer Inderjit to explore a whole new career, even though he wasn’t planning to 20 retailer matters

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Store profile

Store CV Name

Lifestyle Express Prestige Wines & Convenience

Time with Lifestyle Express Staff

Since January 2017 Four, including Inderjit and his wife

Features

PayPoint, off-licence, full grocery range, National Lottery

Bestsellers

Lifestyle Value toilet rolls, Lifestyle baked beans, Lifestyle rich roast instant coffee, Lifestyle lemonade and strawberryade, LSV Energy (cans)

Nearest competition

Asda and Co-op close by and another convenience store next door but one

Trading times Mon-Fri, 8.30am-9pm; Sat-Sun, 9am-9pm

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Store profile

F

or Inderjit Sokhal, opening a retail store wasn’t part of a long-held dream but more the result of grabbing hold of an opportunity that came his way.

“I’ve worked in clothing manufacturing all my life and retail was never part of my long-term plan,” said Inderjit. “I’d planned to finish work in February 2016 and take it easy while I worked out what I’d do next but then, before I knew it, I spotted an opportunity that just seemed too good to turn down.”

“I spotted an opportunity that just seemed too good to turn down. I could see the improvements that I could make”

THE FUTURE OF THE STORE

That opportunity was the chance to snap up the purchase of a store in busy Halesowen, Birmingham. “It had been a store since 2012 and as a popular off-licence, it seemed a great business opportunity. I had no plans to run the store, I simply bought the building,” he admitted. “As soon as the building was ours, I could see the improvements that I could make, so I added an extension to the back of the building, plus new floors, new fittings and even a brand-new shop front. Once it was completed, I was over the moon. It looked incredible and it made me start to wonder about the future of the store.”

It didn’t take long for Inderjit to decide to end the lease for the store and take over the running of it himself. By April, he was running the off-licence and while sales were good, he knew that there was the potential to do more.

“I knew the store had the potential to sell more than just wines, beers, ciders and spirits,” he said. “I wanted it to become a full neighbourhood convenience store and to do that, I knew I needed help.”

However, the store faced one major challenge – another convenience store just steps away from Inderjit’s store entrance.

“Changing from a dedicated off-licence to a full-offer store was always going to be difficult, so it was clear from the beginning I would need help, especially as this was my first experience of retailing,” he admitted.

Inderjit was keen to enrol the help of the experts, so he talked to a number of symbol groups before deciding that Lifestyle Express was the group that best suited his needs and those of his store. ➥ 22 retailer matters

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Store profile

“I spent a long time deciding on which group would offer me the most in terms of support, offers and great products, and after chatting with the team at East End, my local Landmark depot, it was clear that Lifestyle Express was the perfect fit.”

As part of the process, the store layout was completely changed and the Lifestyle Express premium grey fascia was put up, which instantly provided the store with real kerb appeal – a huge advantage when competing against other stores for customers.

“The store looks fantastic,” said Inderjit. “Everyone’s reaction has been really positive and I couldn’t be more delighted with how great it looks. All the additional space inside since we changed the store layout is great too and it really shows off our expanded range, such as the big brands we carry and the range of own-brand products, alongside wines, beers and spirits. We have so much more space and as a result, it makes it a much better shopping experience for our customers.”

“I’ve learnt that retailing is about far more than products and prices; it’s about developing relationships with your customers”

CHANGING THE MINDSET

The challenge then facing Inderjit and his staff was to change the mindset of local shoppers who were used to using his store for their alcohol, tobacco and soft drinks and the other convenience store for their groceries.

“This is something that continues to be our main focus,” he said.

“Everyone has been shopping this way for so long that it’s hard to change the way they shop. The other store has a lot of stock and great variety, but we know we can more than match them when it comes to offers, price and range, but it’ll take time. It’s still early days since the refit but we’re definitely making progress.”

Key to the store’s success is its use of promotions, and money-off deals and offers. “While promotions and low prices are definitely a great way to attract the attention of new shoppers, I’ve learnt that retailing is about far more than products and prices; it’s about

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Store profile

Inderjit’s bestseller basket

“I needed to be sure people understood that we offered their daily essentials.

Leaflets were a great way to make a splash locally and word of mouth is also leading to new faces coming into the store”

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developing relationships with your customers and the trust they place in you to always have the products they need.

Customer service is essential, making sure you always pass the time of day with shoppers, respond to their requests and go the extra mile to provide what they need.”

To spread the word about the store opening and what it had on offer, Inderjit created thousands of leaflets, targeting local households.

“We’re on a big estate with a school, children’s nursery and doctor’s surgery, so there’s always plenty of people coming and going, but we also have a number of other stores they could visit, so I needed to be sure people understood that we were no longer just the local off-licence but offered all of their daily essentials too. Leaflets were a great way to make a splash locally and word of mouth is also leading to new faces coming into the store every day.”

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Store profile

The store has its own Facebook page too, which is used to shout about promotions, local events and new products.

And Inderjit has plenty of plans to develop the store further.

“We’ve put in our application for the National Lottery, and in just a week or two, we’ll have a full range of newspapers and magazines, which will ensure we have more to offer to locals,” he said. “We’re exploring options for meal-for-tonight, as well as the possibility of offering hot drinks and hot food-to-go.”

LOCAL PRODUCT OFFERING

Another option to create a point of difference will be to offer local products, teaming up with other businesses nearby, such as local butchers or bakers. “We’re looking at lots of different options to ensure we stand out from the other stores close by,” said Inderjit.

“Competition is fierce around here and while it’s a price war, it’s also about offering something different that will get customers through the door because that’s what counts.”

“We’re looking at lots of different options to ensure we stand out from the other stores close by.

Competition is fierce”

inderjit’s top tips...

Work hard This is my first role in retailing and while I knew it was a tough job with long hours, I’ve never worked so hard in my life. I don’t mind though, it’s great to have control over my own future.

Recognise what works We tried two companies for fresh sandwiches but they just didn’t take off as locals are so used to grabbing lunch elsewhere. Rather than continuing, we’re focusing on other ideas now, such as hot food-to-go.

Customers first Retail is about so much more than products and prices, it’s about developing a connection with your customers so that your store is the one they choose every time.

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Breakfast

Rise and shine!

Our guide to why breakfast can be the most important meal of the day for convenience store retailers

T

imes, they are a-changing, especially when it comes to life first thing in the morning. With less and less of us enjoying a hearty breakfast at home, preferring instead to pick something up on the way to work or school, it’s retailers who can make the most of the breakfaston-the-go opportunity.

According to industry research, it seems that, as a nation, we are running tight on time in the morning and breakfast at home is being sacrificed in favour of grab-and-go choices from shops, cafes, forecourts and delis. The good news is that, despite the rush, more and more of us are tucking in first thing, regardless of where or how, so while the way we eat breakfast is changing, it’s clear it’s not losing its appeal.

And for retailers, this is fantastic news. If you plan your range right, you can get two bites of the breakfast cherry. Offer the right items, such as bread, cereal, pastries, bacon and eggs, and you can ensure those who fill up before leaving the house rely on your store to get those morning essentials. And for those who rush out the door without a bite to eat, make sure your store becomes a key part of their morning routine as they dash in, grab what they need and head off on their way.

TRENDS

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all about timing For Pragash Mahalingam, who owns a Lifestyle Express on Stechford Lane, Birmingham, breakfast is a major sales opportunity. “We have a bus stop just outside the store, which is packed with workers at 6am. We quickly realised they were a captive audience, so we changed our store hours to open at 5.45am. As a result, the store is now packed with customers at this time buying breakfast bars, drinks, snacks and newspapers, and we immediately saw our sales leap.�

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Breakfast

now in decline. But forget them at your peril as they still account for 60% of breakfasts across the UK. To get cereal sales right, be mindful of your shoppers and their preferences, and be led by demand. If you have a lot of families, think about the cereals likely to be favoured by little shoppers and their parents. Start with the Lifestyle Express Core Range to ensure you stock the bestsellers and then look at what sells best for you and your customers.

While cereals are still a crowd-pleaser, don’t overlook the alternatives, such as breakfast biscuits and cereal bars, which are experiencing strong growth. Manufacturers are continually looking for new ideas to appeal to those wanting something different, such as fruit, nuts, yogurts, porridge pots and protein drinks.

Shoppers ask a lot from their breakfast choices: they want healthy, practical and enjoyable. Are your shelves ticking all of those boxes? Do you have sugar-free or reduced-sugar cereals? Multi-grain cereals?

Wholemeal and granary bread?

Reduced-sugar jam and light butter?

ON THE GO

Breakfast like a king If you’re offering hot drinks already, think about your range – is it the right one? Could you offer a better range of drinks?

If customers are buying pots to go, offer them a free spoon with it and consider a deal with a hot drink.

Follow the weather. If it’s cold, offer a promotion on porridge pots or hot breakfast rolls. When it’s warm, think about pastries and fresh juices or cereal bars.

Do you offer enough fresh fruit? Consider adding fresh fruit pots for those looking for a healthy alternative.

For those looking to grab and go, it’s essential that retailers consider their surroundings. What’s on offer locally? If you’re surrounded by cafes and coffee shops, there’s no point competing with them for hot drinks and bacon rolls, focus instead on traditional c-store offerings. While breakfast bars have been available for years, breakfast drinks, such as Weetabix On The Go, have proved to be a huge hit with consumers. Think about your customers – what do kids on their way to school want? What are commuters looking for to take on the bus or train?

Don’t forget the opportunity to stand out from the crowd with

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a hot food offer. Are your customers traditional, looking for bacon rolls and sausage sandwiches? Are they looking for porridge pots and hot drinks? Or a more continental approach with warm pastries, brioche or baguettes paired with a latte, cappuccino or espresso? You know your local area, and your customers, so think carefully about what could be the best offer to suit. It’s worth doing your homework to see what local cafes and shops are already offering to ensure you can compete.

DINING AT HOME

When it comes to eating at home, shoppers are spoilt for choice. For retailers, this means one thing: get your range right.

Make sure you have all the ingredients for a full cooked breakfast as these are the items shoppers are looking for from their neighbourhood store. Bacon, eggs, mushrooms, tomatoes, sausages, frozen hash browns, bread and butter are all must-stock products, and don’t forget those essential extras either: tomato ketchup and brown sauce, plus jams and marmalades.

And when it comes to a lighter choice, we know bread sales are in decline but sales of bakery products continue to rise. Whether your customers are tempted by the more traditional crumpets and croissants or crowd-pleasing options like pancakes, waffles, brioche, pain au chocolat, bagels and muffins, the rewards can be sweet.

Think about stocking toppings close by, such as sweet syrups, fruit and spreads, as a mental prompt for your customers.

Fruit and yogurts are also a popular breakfast choice. Think about the range you offer. Could you offer a multibuy with larger yogurt pots and fresh or frozen berries or bananas? And dried fruits and nuts are worth considering to top off breakfast choices.

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Store profile

STORE PROFILE

Thinking creatively really pays off How capturing the late-night Birmingham city market has seen new retailer Prasath and his family double their store’s off-licence sales

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Store profile

Store CV Name

Flaxley Convenience Stores

Time with Lifestyle Express Staff

Since February 2017 Three, including Prasath

Features

PayPoint, National Lottery, free-to-use ATM, newspapers and magazines, off-licence, grocery

Bestsellers

LSV, Foster’s, Carling, Lifestyle and Lifestyle Value ranges

Nearest None close by competition Trading times Sun-Thurs 7am-12am; Fri-Sat 7am-2am

F

or Prasath and his family, opening a store had never been part of a long-term plan, but when he spotted a run-down store that had a lot of potential, he quickly knew this wasn’t an opportunity he could easily turn down.

“Retail had never been a dream of mine,” admitted Prasath. “I always wanted to run my own business, to create my own future, and I just wanted to do something different to the usual Monday to Friday. No one in my family is involved in retail, but when we saw this store, and the great potential it had, we knew we had to take a chance.”

ASSESS WHAT’S NEEDED

For Prasath, what really stood out to him was that the store is in a great area – a very busy road with a lot of residents nearby, just four miles out of Birmingham’s busy city centre and even better, no other stores close by to compete with.

“The area is just brilliant for a convenience store,” he said. “The main road is really busy, so there’s always lots of passing trade and

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Store profile

because there are so many local houses, we have lots of regulars who rely on the store for their essentials.”

Like many convenience stores, groceries form a huge part of Prasath’s offer, but as soon as he took over the store, Prasath had big ideas of how he could really increase his sales. “Just by looking at the area and what’s available nearby, plus our location on the main road out of the city, I knew that a great off-licence would really help our store sales. And I was right!”

Prasath quickly applied for a late-night licence, which was granted, and he changed his opening hours. “We open from 7am until midnight midweek and then until 2am at the weekends, and this is when we get some of our busiest periods. It’s amazing how many people drop by in the early hours wanting to grab beers, wines, ciders or spirits,” said Prasath. “If they’re thinking ahead, they’ll even grab the items they need for a breakfast the next day.”

“It’s amazing how many people drop by in the early hours wanting to grab beers, wines, ciders or spirits”

NEW FACES… ALL THE TIME

By opening so late at night, Prasath knew that there would be a real demand for his off-licence, but the challenge was always around how to let people know. “We’re lucky because the main road outside is so busy, we knew we’d have a lot of people passing right by the door, even at midnight, so it made sense to offer what they’d be looking for at that time of night. And, to spread the word even further, we’re working with local taxi drivers so when passengers get into their cars and ask where they can get beers, tobacco or snacks so late at night, the drivers know exactly where to go. This is really working as we’re seeing new faces, and new drivers, all the time.”

This approach has paid off for Prasath. When he took over the store, off-licence sales were around £6,000 per ➥ 42 retailer matters

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week. Since expanding his range, opening later and taking the time to spread the word about the store, off-licence sales alone have already topped £14,000 and are continually rising. Of course, with the store’s opening hours being so long, Prasath and his family needed some additional help.

“We knew we’d need some support, so we recruited staff who were dedicated to the late-night opening and this has been a really big help for us.

“The store’s only been open for a few months and I know word is still spreading,” he said. “We’re continually looking at our range and what we can add to keep it evolving. There’s lots of things that are selling really well. Our newspapers and magazines are doing brilliantly and the Lifestyle Express promotions are just flying off the shelves. Customers actually come in to look at what we have on offer as the deals are so good. We have so many ideas for what we can do next. We’re looking at adding hot drinks but will probably wait until the temperature drops when there’s likely to be more demand. We’d also like to offer food-to-go, so this is something we’re looking into at the moment.”

Prasath’s bestseller basket

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Store profile

Another success for Prasath has been the own-brand ranges.

“Customers love getting the things they need at the cheapest prices,” he laughed. “The Lifestyle and Lifestyle Value ranges are brilliant as customers can see the saving they’re making versus the big brands, and the products just fly off the shelves. It’s a great addition to our grocery offer.”

As this is Prasath’s first venture into retailing, he’s keen to make the most of the expert advice on offer. “The Lifestyle Express team have been a real help during the refurbishment of the store and the store looks fantastic as a result. I also work closely with Blakemore, our cash and carry, and I’m always open to their suggestions about what I could try next. It’s a really exciting time for us and I know the store will go from strength to strength.”

“It’s a really exciting time for us and I know the store will go from strength to strength”

Prasath’s top tips...

Look around you Get to know your area and what it needs. Look at offering something that no other store is doing or do it better. We knew there would be demand for late-night sales of beers, wines, ciders and spirits, and by prioritising these, we’ve doubled our weekly turnover.

Think creatively By working with local taxi drivers, we’ve been able to spread the word about how late we stay open and this has really driven up sales.

It benefits the drivers as they’re helping their passengers, and it’s handy for them too as they can grab the items they need when everywhere else is closed.

Cash in Having a free-to-use ATM outside is a great way to increase footfall and profits. Most people using the ATM will then call into the store and spend on the items they need.

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Summer

the sun Here comes

Finally, the days are lasting longer and the chill has gone. Here’s our guide to helping you make the most of the sunshine-filled months

A

re you looking for sure-fire ways to make your sales sizzle this summer? Whether it’s burgers for barbecues, picnic treats, or ice creams to slurp in the garden, the summer months present a fantastic opportunity for local neighbourhood stores to become an invaluable source of those sunshine essentials.

Before the temperatures really soar, it’s vital that you do your research. We know

that the big sellers in summer are soft drinks, ice creams, barbecue foods, crisps, snacks, and chilled beers, wines and ciders, but what sold well for your store last year?

Look at your EPOS data – what were your bestsellers and why? What in-store theatre did you have? Any winning promotions? If you can remember what reaped rewards for you last year, you’re already ahead for 2017.

Here’s our guide to making the most of the sun while it shines.

WHAT’S GOING ON?

Do you have any big local events happening such as summer parties, concerts or open days? If so, think about what passers-by will be looking for. Soft drinks and alcoholic options to take with them? If so, ensure they’re chilled and you’ll do big business.

And remember those crisps and snacks, sandwiches and food-to-go.

If you have a festival close by, make the most of passing trade with plenty of Continued on page 50

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Simple steps to a sizzling summer ■ Get your range right and have the right products on the shelves at the right time – speak to the Lifestyle Express team or the BDM in depot.

■ Fresh produce in season is important. Shoppers want

freshness and quality, so work hard in this area to grow your sales and footfall and stop customers going elsewhere.

■ Create some in-store theatre around key sporting events and make food and drink

suggestions to inspire your shoppers.

■ Stock up and save with the best summer promotions.

■ Merchandise children’s outdoor toys in a prominent position, ideally close to the

door and checkout so your youngest shoppers can spot them easily.

■ Make space for disposable barbecues and charcoal to ensure you have what your customers need.

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Summer

SPORTING CHANCE

“All You Need for Summer Drinks is available in depot from 29 May to 17 June and has the top 12 bestselling summer drinks, so it makes sense to take advantage and save throughout the summer”

essentials for festivalgoers. Think energy drinks, confectionery, crisps and snacks, and plenty of chilled cans and bottles of beers, ciders and wines. Don’t forget the sun cream and the painkillers!

SMOKIN’ SALES

In the UK, at the first glimpse of sunshine we all make a run for the basics to get barbecuing. Stock up on the essentials such as sausages and burgers, fresh salads, bread and rolls. But bear in mind that not every household has a barbecue that can be wheeled out of the shed when the sun appears. Disposable barbecues are the perfect solution; they’re easy to stack, so they don’t take up much space, and simple to display in store. Make sure you don’t forget the other must-stocks such as bags of charcoal, firelighters and matches. And ketchup and brown sauce, of course.

The sports calendar for summer 2017 is packed with must-watch events. The mix of different sports (see our May-June sporting round-up below) will ensure a great reason to get friends and family together to cheer their teams or favourite sportsmen and women on.

And what goes hand in hand with sports?

Plenty of food and drink. Whether it’s creating a theme for an event, such as Pimm’s with strawberries and cream for Wimbledon, or just stocking what customers want for a sporting fixture, ensuring they can get all their supplies from you, chilled and ready to go, means stopping off at your store can become part of their pre-match ritual. Think about chilled beers, wines and ciders, soft drinks, sharing bags of crisps and snacks, dips to accompany them, perhaps some frozen pizzas and other food from the freezer for a hot snack at half-time. Cakes, biscuits and ice creams could be the perfect dessert choice. Think about how you merchandise your offers too – create some in-store theatre if you can.

make sure you stock up and benefit from some great savings.

The Landmark Wholesale promotions are always guaranteed to give your POR a good boost, so keep an eye out for the latest offer in depot.

All You Need for Summer Drinks is available in depot from 29 May to 17 June and has the top 12 bestselling summer drinks, so it makes sense to take advantage by filling your shelves and chillers and save throughout the summer months.

STOCK UP AND SAVE

We all know that the summer months are packed full of money-off deals and multi-buy offers. If they’re for products you know your customers will love,

sporting round-up: may and june MAY ■ Champions League semi-finals and final ■ Europa League semi-finals and final ■ Newmarket Races ■ European Rugby Challenge Cup Spanish Grand Prix ■ Rugby League Magic Weekend

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■ Rugby Union World Sevens Series ■ French Open Tennis ■ Monaco Grand Prix ■ FA Cup Final

JUNE ■ Women’s Champions League final ■ Champions Trophy

■ Epsom Derby ■ 2018 World Cup qualifiers ■ Canadian Grand Prix ■ US Golf Open ■ Royal Ascot ■ Azerbaijan Grand Prix ■ Aegon International tennis tournament

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Go local

local touch The

Make your store a must-visit destination by stocking local products

W

hen it comes to standing out from the crowd and making an impact, there are several tricks up a retailers’ sleeve. While great customer service is top of the list, selling a fantastic range of products runs a close second. And what better than offering your customers products that support local businesses and that they can’t get anywhere else?

Stocking local products not only enables you to compete more effectively with the discounters and the multiples when it comes to range and price, but it also gives your store stand-out appeal, especially when customers realise that they can only get those products in your store.

“At Lifestyle Express, we actively encourage retailers to support local products and local producers,” said Stuart Johnson, Retail Controller. “Locally sourced products add real interest to in-store displays and we know that shoppers welcome the opportunity to support products from their local area.”

And the good news is that if you’re looking to stock local products, it’s easy to get started; just follow these simple steps. ➥

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Go local

4

Establish how it will work How much do you want to stock and how regularly? What are the margins? How will you pay? How will you manage stock? Who controls the retail price?

1

decide what you want

A great starting point is local farms and farm shops. Eggs, potatoes, fresh seasonal fruit and vegetables, honey and jams are all easy to introduce in store and immediately grab the attention of shoppers. Are there any fantastic local butchers you could work with? Could you stock some of their most popular lines, such as cooked meats, home-made pies, sausages and burgers? Or local bakers for breads, bread rolls, cakes and pastries? And what about flowers and plants, especially around seasonal opportunities like Mother’s Day and Valentine’s?

2

Do your research What’s on offer nearby and can you offer it better or cheaper?

Or, if there’s nothing close by, what would your customers most benefit from? Ingredients for meal-for-tonight, indulgent treats to take away or great-tasting sandwiches made from local bakery bread with locally sourced meats and cheeses?

3

Talk to the suppliers Explain what you’d like to do and why you’d like to work with them – it can be a very simple process.

5

Tell everyone!

Shout about the fact you’re stocking local products. Use every touch point to tell customers it’s local – shelftalkers, posters and leaflets. Create some in-store theatre such as displays by the till or sited around your store, showcasing local products such as strawberries, and including associated products, for example, scones, cream and meringue nests.

6

Do something different Could you offer taster sessions to try at the counter, such as fresh bread with local jam, or chunks of cheese or cooked meats? Encourage your staff to act as ambassadors for the local products and engage customers in conversations about the local baker, butcher or farm. Sometimes, just trying something new can convert a ‘maybe’ into a regular sale.

7

Spread the word Use social media to tell everyone that you actively support local businesses and ask your suppliers to do the same. A quick ‘Our fresh, sweet strawberries are now available at Lifestyle Express’ or ‘Grab them while you can – our award-winning sausages can be found at Lifestyle Express’ post on suppliers’ Facebook, Twitter or Instagram account’ could create a buzz locally and generate demand. Think about adding a strapline to your receipts or social media that shows you support local, such as ‘Lifestyle Express: the home of local products’.

retailer and local producers team up For one retailer, stocking local products has reaped rewards.

Robert Teal owns a busy Lifestyle Express store in the centre of Barnsley, which is packed with students and workers. Wanting to offer something no other store was providing, he teamed up with a local artisan baker and butcher.

“We’ve introduced products from two local high-quality food producers. Cannon Hall Farm, a local butcher and tourist attraction, provides us with meats and pies and we use their cooked meat in sandwiches using bread from Krusty Loaf, a local craft bakery,” he said.

“Everyone knows Cannon Hall Farm and by stocking their products in the centre of town, we’re saving customers the drive out.

“Their products, and our own sandwiches, have been a huge success, not just earning us some great margins but also giving customers a reason to shop with us, not the competition.”

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Community ■ Sponsoring a sports team and holding events are great ways to get involved

community Be the heart of your

Retailers are perfectly placed to remind people what community is all about. Here’s a guide to how you can engage with your local area

W

ith high streets in decline and the rise in online shopping, we run the risk of losing our sense of community. As convenience retailers, your role in bringing the community together and providing a local hub has never been more important.

For many customers, you’re already providing the essentials they rely on, such as bread, milk, or a daily newspaper, but what else do they need? As Post Offices continue to dwindle in number, retailers provide a lifeline for many customers, enabling them to pay their bills, top up their phones and withdraw cash, as well as buy their daily products. Are there any other services that your customers would benefit from? Dry cleaning, parcel collection, laundry services, for example? Meal-for-tonight? Hot food-to-go? Talk to your customers and find out what would make their lives easier.

Providing what they need is the perfect

starting point, but think about what else retailers can do to engage with local people.

What community activity is already going on and could you get involved? Is there a local playgroup or care home that you could get involved with? Are there sports clubs or teams that need sponsors or supplies?

Sponsoring a local youth football team is something Bay Bashir, who owns four Lifestyle Express stores in Middlesbrough, has done for a number of years and it has really helped cement his reputation within his local community.

FIRST PORT OF CALL

Working closely with a local school is a great first port of call. Some retailers offer schoolchildren a free piece of fruit once a week. If you could do this too, not only would it spread the word that you take healthy eating seriously, but parents who come into your store with little ones are likely to buy items while they’re there too.

For Janette Tucker, who manages the Lifestyle Express store in Winscombe, Somerset, the school is the perfect way to get involved in the local area. Once a term, the store donates a book and Janette goes in, with props, to read the story in assembly.

Other retailers work with schools to offer supplies for events such as sports day or to set up a breakfast club.

Another way to get involved is to work with local authorities to tackle a problem that faces the community. This is another challenge Bay has successfully taken on. ➥

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Community

our top tips...

Talk to your customers ■ Winscombe got into the spirit for a Halloween event and Janette Tucker read Stick Man at her local school

Find out what matters to them and see how you can help. Engage with them all, regardless of age and background.

organise events Could you organise events for the community, such as coffee mornings, taster days and charity days such as Red Nose Day. Make it an event and people will want to get involved.

improve the local area Work with others, such as Neighbourhood Watch, local police, local councils and forums, to improve the local area.

Bay wanted to get involved in issues around unsociable behaviour. As one of his stores is in an area that had high levels of underage drinking, he decided to do something to improve the local community. He worked with the local council and licensing forum and launched a campaign to stop adults buying alcohol for underage children.

He had messages printed on carrier bags and POS, and invested heavily in staff training to make sure his Challenge 25 policy was watertight. As a result, he has been named the UK’s most responsible retailer in several industry awards in the past few years. Is this, or something similar, an issue you and your store can play a part in tackling?

Of course, fundraising is a great way to spread the word about your good deeds too.

Whether you choose a

national charity, a local charity or get involved in particular events such as Children In Need, when customers realise you’re doing something for the good of others, it generates a lot of goodwill. You could hold a raffle or put on seasonal events such as Easter egg hunts for a small charge and donate the proceeds to charity.

SMALL GESTURES

But, as they say, charity begins at home, so think about what smaller gestures you could do to make a difference to people’s lives in your local area. Could you do a click and collect service, or offer deliveries for those who are ill, elderly or housebound?

Or could you spare a member of staff to walk customers home?

At Winscombe, the team offer their customers use of a ‘magic chair’ so they can take a seat while a staff member takes their shopping list, gathers their items, bags them up and helps them home. Customer service at its best.

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next issue out at the beginning ofjuly...

Learning on the job We launch the Lifestyle Learning Academy

ice and easy

What are the hot sellers this summer for ice cream?

Taking the biscuit

Get this category right and your sales will be sweet

first impressions

Why driving up store standards also drives up sales

Plus 60 retailer matters

RM41_p60_Next issue_v1.indd 2

Industry news and updates, retailers’ success stories and the latest must-stock products

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Lowdown THE

Understand your

Lifestyle Express shopper Demographic

SINGLE DWELLER

COUPLES WITH YOUNG CHILDREN

23%

RETIRED GREYS

CHILD-FREE COUPLES

16%

26%

N

ew emerging trends continue to shape the convenience landscape.

The rise of health trends, on-the-go purchases and demand for convenience mean that it is now more important than ever to understand the needs and behaviours of shoppers in stores and competing stores.

Lifestyle Express shoppers under-index on planned top-up food-to-go missions yet over-index on newsagent and top-up distress missions. This boosts the average visit frequency to four and a half times a week. High frequency presents opportunities to increase average basket size and spend for the impulse shopper. Targeted promotions on branded products can generate more opportunities to influence impulsivity.

23%

Shopper missions

NEWSAGENT

TOP-UP DISTRESS

#1

#2

Above CTP average

for more information. . . . . . on him!’s research and insights programme, please contact info@him.uk.com

RM41_p62-63_Lowdown_v2.indd 2

Above CTP average

#3

Below CTP average

Key metrics VISIT FREQUENCY IN DAYS

AVERAGE SPEND IN £s £6.15

4.5 days

3.7 days Lifestyle Express

62 retailer matters

TOP-UP PLANNED

£6.13 CTP average

Lifestyle Express

CTP average

*him! Consumer Tracking Programme 2016

him! takes a look at how the Lifestyle Express shopper compares to the CTP average*

ISSUE 41 2017

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RM41_p62-63_Lowdown_v2.indd 3

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RM41_p64_BC_ad_v1.indd 2

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