The Week in Retail 119

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KEEPING THE FAITH

CO-OP PARTNERS WITH UBER EATS DESPITE COST-OF-LIVING CRISIS

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EDDY’S FOOD STATION EXPANDS

● CJ Lang & Son strengthens fleet ● James Hall & Co invests £200k in logistics ● JET campaign takes drama out of driving

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Issue 119 Wednesday 24th August 2022

T H E W E E K I N R E TA I L

EDITOR’S COMMENT

Money, money, money It seems that there’s only one topic on everyone’s minds at the moment, and that’s the rising cost of living.

This morning, new data from the CBI revealed more than two-thirds of firms expect their energy costs to increase over the next quarter. In addition, a third of firms expect energy price rises to act as a barrier to growth, by stifling current or planned investment in energy efficiency or net zero measures.

The findings are echoed by the ACS who this week appeared on the BBC to call for a small business energy price cap to help retailers fight the cost-of-living crisis. The trade body says its members have seen their electricity costs more than quadruple since the start of the year.

Meanwhile, on the other side of the fence, consumer champion Which? has called on supermarkets to make pricing clearer after its research found confusing pricing practices are making it difficult for shoppers to work out which food and drink products are the best value.

Which? found that supermarket terminology made it difficult to compare prices and there were numerous examples of pricing that was hard to read or missing. The findings show that there also remains poor quality control in some supermarkets at the way pricing is displayed.

The consumer champion believes clear, fair and

transparent pricing is now key to helping shoppers through the current cost-of-living crisis and is calling on supermarkets to urgently do more by making unit pricing more prominent, legible and consistent, as well as by displaying it on their promotional offers.

Meanwhile, in a clever move, Iceland is set to launch energy-saving cooking guidance on packaging this autumn. The retailer is partnering with energy firm Utilita to provide cost-cutting tips to households.

Through a joint campaign, Iceland and Utilita are carrying out a dramatic overhaul of the supermarket’s own-product packaging to focus on energy-efficient cooking methods.

In addition, the collaboration will see a national consumer awareness tour begin early next month, with a Utilita roadshow outside Iceland stores.

I wish I knew how to end the cost-of-living crisis, but sadly I’m just a journalist. I just hope everyone who needs help gets it soon. Please remember that the folks at GroceryAid are on hand on 08088 021 122 if you need some urgent advice.

LIZ WELLS, DEPUTY EDITOR

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 3

Let’s create a great recycling experience.

The deposit return scheme (DRS) is coming to Scotland.

Make it easy with TOMRA.

The global leader in reverse vending technology tomra.com/uk | Get in touch to find out more: tcs.uk@tomra.com

CONTENTS

WEDNESDAY 24 AUGUST 2022 / ISSUE 119

6

10

17

THIS WEEK’S NEWS

COVER STORY

FORECOURTS

Poor sales are behind a slowdown in the UK rollout of Amazon Fresh stores, and the ACS calls for an energy price cap for small businesses.

News of a Co-op and Uber Eats partnership comes weeks after analysts predicted that inflation-hit consumers would rethink ordering food in.

A new tongue-in-cheek advertising campaign from JET takes a humorous look at how the fuel brand removes the drama from driving.

9

18 Electric vehicles

23 Payments

Covid-19 update The latest coronavirus-related news.

12 Store openings Franchisee Babu Sivaraja opens his fourth One Stop store in Swanscombe, Kent

MFG’s EV Power ultra-rapid charging

Debit cards were the most used payment

network integrates with the Zap-Pay

method in 2021, according to data

payment system.

published by UK Finance.

19 Grocery sales

24 Consumer trends

while new convenience chain Eddy’s Food

Convenience stores experience a sales

Hancocks encourages retailers to stock up

Station opens its third store and names

boost, according to NielsenIQ.

on colourful sweets to meet the demand of

Costcutter as its main supply partner.

15 Wholesalers CJ Lang & Son adds four vehicles to its distribution fleet as part of the Spar

20 Frozen

a recent TikTok trend.

25 Picks of the week

New PayPoint data reveals the the UK’s top-selling heatwave treat.

A look at the latest new products and

21 Consumer confidence

marketing campaigns.

31 Out the box: greener deliveries

Scotland wholesaler’s continued drive to

Consumer confidence falls to a new record

reduce its environmental impact.

low in the face of soaring inflation and

A new online carbon footprint tool

bleak economic prospects.

promises to help internet shoppers work

16 Logistics North of England Spar wholesaler James

22 Retail sales

Hall & Co invests in new forklifts and

A 0.3% increase in retail sales last

picking trucks for its Preston distribution

month surprises the economists who had

centre.

predicted a 0.2% drop.

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out which delivery method is best for the environment.

33 Before you go...

Our latest Retail Randoms.

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E ar xhi SO ea bit LD is noion O w

UT !

NEWS DIGEST

THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/

Aviemore ‘22

! k c a B e We’r

Tradeshow

SUPERMARKETS

Amazon slows roll out of Amazon Fresh stores

The tech giant has reportedly rejected discussions for dozens of new Amazon Fresh stores across the UK and has called off the search for more locations.

Thursday 22nd September 2022 Thank you to our key sponsors!

Amazon is reportedly slowing down its planned roll-out of its high-tech Amazon Fresh supermarkets in the UK after experiencing disappointing sales at the 19 checkout-free shops it already has in the country.

The till-less stores let shoppers browse, pick up what they want, and just walk out. Items are tracked using sensors and cameras. There are currently 19 Amazon Fresh

stores in the UK since the first was opened in Ealing, West London in 2021.A report in The Sunday Times claims the US tech giant has rejected discussions for dozens of new Amazon Fresh stores across the UK and has called off the search for more locations.

A source told The Times that the cost to construct the stores was much higher than a standard grocery store and that sales at most of them had not met expectations. However, a small number of openings will take place this year as Amazon has already signed leases.

A spokesperson for the company said: “We look forward to opening additional Amazon Fresh stores in the near future.”

VPZ to open 10 more stores by end of year

To find out more contact the SPAR Scotland Tradeshow Team on 01382 512000 6 I SLRMAG.CO.UK / ISSUE 1XX / WEDNESDAY XX XX 202X

Vaping firm VPZ has unveiled plans to open 10 more stores by the end of the year.The business will increase its portfolio to 160 sites across Scotland and England, including Glasgow and London.VPZ revealed its expansion plans as it takes its mobile vape clinic on the road throughout the country.

Doug Mutter, VPZ director, said: “As the UK’s leading vaping

specialist, we are spearheading the fight against the nation’s number one killer – smoking.

“Our plans to open 10 new stores and the launch of our mobile vape clinic responds 100% to our ambition to engage with more smokers throughout the country and help them take the first steps on their quit journey.”

NEWS DIGEST

THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/

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BUSINESS COSTS

ACS calls for energy price cap for small businesses

The trade body says its members have seen their electricity costs more than quadruple since the start of the year.

The ACS has called for a small business energy price cap to help retailers fight the cost-of-living crisis. There is currently no energy price cap for businesses that would limit the rates a supplier can charge for their default tariffs.

Chief executive James Lowman told BBC Radio 5 Live: “At the beginning of the year, typically, our members would be paying 15p per unit for electricity. They’re now being quoted upwards of 60p a unit.

That’s more than quadruple the amount.

We don’t like to catastrophise, but the sums just don’t add up. Something has got to be done to support them.”

Lowman added: “While big businesses are also very constrained, small businesses can’t hedge, buy ahead of time and do the things that mitigate costs, and those costs are just not

• Up to 6% rebate • Delivery to your store – anywhere in Scotland • A smooth onboarding process including market leading aftercare support • Dedicated Business Development Manager contact to support your ongoing business needs

sustainable. The energy bill for the convenience sector as a whole is £2.5bn now and that will continue to go up.

“The most effective thing the government can do is introduce a cap on energy costs because that is the driver of this really acute emergency that is facing our members and lots of other businesses.”

Symbol G r o up o f t h e Yea r

WINNER

Plan for Profit unveils HFSS product checker Plan for Profit is to launch a tool to help retailers prepare for the High Fat Sugar & Salt (HFSS) legislation coming into effect in England this autumn.

From October 2022, the government is introducing new regulations that will reduce the availability of products high in fat, sugar and salt through restrictions around promotion and placement in stores.

Regulations in Wales and Scotland are currently under review.

Tracey Redfearn, Plan for Profit Controller, said: “The tool allows retailers to identify which of their stocked lines are HFSS compliant, as well as those that are impacted.”

It will be available from mid-September here.

To find out more and join our award winning team email Recruitment Manager, Craig Lynn: craig.lynn@cjlang.co.uk SparScotlandOfficial @SparScotland

www.cjlang.co.uk

@SparScotland CJ Lang & Son Limited

www.sparscotland.co.uk

CJ Lang & Son Ltd, Longtown Distribution Centre, 78 Longtown Road, Dundee, DD4 8JU

THE SCOTTISH BUYING GROUP FOR INDEPENDENT RETAILERS SINCE 1976 Scotland’s best kept retail secret, working with independent retailers for over 40 years providing access to one of the leading convenience retail groups while allowing you to run your store, your way with great ranges and great support delivered direct to your store.

Delivery direct to store, small minimum order quantities.

14,000 SKU count across all categories including Food to Go Access to the excellent Co-op Fresh Range 3 weekly promotion cycle available Year round Seasonal sales opportunities Fascia and branding opportunities through the well established brand Rebate scheme for qualifying members, spend level applies Extensive supplementary Direct to Store ranges and services Central Invoicing*, 1 weekly statement and 1 Direct Debit

If you want to remain independent and have the support of PGMA behind you, drop us an email at pgma@pgma.co.uk or call Martin Devlin, Commercial Manager on 0131 343 7607.

www.pgma.co.uk

Scan here to be taken direct to the PGMA website

NEWS SPECIAL

COVID-19 UPDATE

NHS England to roll out booster jab from September

PAYMENT HUB OFFERS REVENUE-BASED FINANCING TO E-COMMERCE BUSINESSES

The NHS has set out plans for the next phase of the Covid-19 vaccination programme, as it kickstarts the autumn booster rollout in early September.

Payment hub Axerve has partnered with fintech platform Viceversa to offer its e-commerce customers revenue-based financing.

Clients will gain access to a capital of €1m through a form of hybrid financing between debt and equity characterised by a plan to repay the funds by sharing a percentage of the income.

invested in digital marketing

oldest and most vulnerable will be called forward first, with people able to book online or through 119, as long as it has been three months since their last dose.

Around 26 million people across England will be eligible for an autumn booster. As many as 3,000 sites are expected to be part of the rollout, including GP practices and community pharmacies, with new sites joining the programme all the time.

NHS chief executive Amanda Pritchard encouraged anyone who is invited to take up both an autumn booster and flu jab, to do so as quickly as possible.

activities. Companies that apply can access structured analytics on their business

TECH SOLUTIONS

S

et to start during the week of 5 September, NHS staff will begin vaccinating care home residents and people who are housebound. The NHS will become the first healthcare system in the world to use the next-generation, bivalent Covid vaccine where appropriate and subject to sufficient supply.

The National Booking Service will also open that week ahead of the wider rollout, due to start on the 12 September, with the NHS inviting those who are most susceptible to serious illness from Covid-19 and those aged 75 and over to book an appointment from that week. As with previous campaigns, the

The resources will then be

and effective marketing spend, information that is essential for better investing the available budget.

Alessandro Bocca, CEO of Axerve, said: “Thanks to the partnership with Viceversa, our customers will be able to obtain financing quickly and without selling shares in their company.”

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 9

C OV E R

HOME DE

Keep th

News of a Co-op and Uber Ea after analysts predicted that inflation-hit c

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S T O RY

ELIVERY

he faith

ats partnership comes weeks consumers would rethink ordering food in.

C

o-op and Uber Eats are teaming up as part of the retailer’s plans to expand its on-demand online home delivery service and further increase quick access to its products in local communities.

The partnership will enable shoppers to order quick, online home delivery via the Uber Eats app from around 1,000 Co-op food stores by the end of September, with groceries delivered in as little as 30 minutes. With the phased roll-out underway from this week, customers can use the Uber Eats app to choose from over 6,000 products stocked in local Co-op stores, with the convenience retailer using the physical footprint of its existing store estate for deliveries to be made quickly and conveniently in the local community.

FRESH PICKINGS With products picked fresh in local stores, the service is available for a full grocery shop as well as on-demand top-up and forgotten items, meal ideas and treats for evenings in at home. Groceries available via Uber Eats include Co-op’s award-wining, ethically sourced quality own brand and Irresistible range – with all Co-op’s meat 100% British including in its ready meals and sandwiches. This sits alongside fresh, healthy products, fruit and vegetables and popular brands, household names, offers and promotions.

Chris Conway, Co-op’s eCommerce Director, said: “We are committed to

offering quality and value with Co-op’s ease, speed, and convenience. As a convenience retailer, we know the ability to pop into a local Co-op will always be important to customers, but we also know that fast and flexible options online are important to shoppers too – and so by using our stores located in the heart of communities to provide rapid home deliveries, we can meet customer needs and make shopping easier, however, wherever and whenever our Members and customers choose to shop with us.”

Alex Troughton, Head of CommeWrce at Uber Eats UK, added: “We are delighted to be partnering with Co-op, one of the most popular grocery retailers in the UK. Our mission is to be the platform of choice across the UK, and with this partnership, more customers will be able to order all their grocery needs at the touch of the button. So, whether you are in need of some dinner inspiration or looking to do the weekly shop, Uber Eats and Co-op have got you covered.”

Co-op’s online offer has grown at pace through both its own online shop – shop.coop.co.uk – which it launched and 2019, and with partners. It has seen more than 40 consecutive months of growth, with ambitions to increase its online business to £300m this year.

The channel reaches new customers and increases access to Co-op’s products, with further opportunities for quick-convenience growth seen among urban and high-density populations;

smaller or single households; shoppers without access to their own vehicle or who are looking to cut short journeys; and time-squeezed shoppers.

TIMELY TIE-UP The deal comes weeks after analysts predicted that inflation-hit consumers would rethink ordering food in. Earlier this month, Deliveroo cut its annual revenue forecast last month amid a worsening cost of living crisis, prompting questions over the growth prospects of delivery firms.

“Investors have written off food delivery as the next shoe to drop as consumers tighten up their wallets,” Bernstein analyst Nikhil Devnani said, pointing to the disappointing performance of Deliveroo.

The tie-up continues a strong year for Uber Eats, coming after deals with Asda, One Stop, Tesco, BP, and Iceland. Uber Eats also introduced a number of changes to its grocery service, including giving customers the ability to place orders even when stores are closed, allowing customers to choose item replacements if something is out of stock, as well as several improvements for retailers.

Nobody really knows for sure what is going to happen to home delivery in the future, but at the very least this deal will get Co-op products – which are sold in hundreds of independent convenience stores across the UK – in front of new customers.

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S TO R E O P E N I N G S

ONE STOP

One Stop franchisee opens fourth store

Retailer Babu Sivaraja is enjoying the ease with which he can run multiple sites at the touch of a button, with orders generated automatically and flexible deliveries.

O

ne Stop franchisee Babu Sivaraja has opened his fourth One Stop store, in Swanscombe.

The Craylands Lane store is nestled in the middle of the Kent village and is surrounded by houses and a leisure centre, meaning there are plenty of customers living close by and lots of passing trade.

Babu says he is enjoying the ease with which he can run multiple sites at the touch of a button, with orders generated automatically and flexible deliveries across ambient and fresh products.

He said: “I was with another symbol group for eight years, but I did all the

cash and carry runs meaning I could only ever run two stores at a time. I joined One Stop earlier this year and have now doubled the business overnight with two more new store openings in less than six months.”

Commenting on the new store opening, John Miller, head of franchise at One Stop, said: “It’s been great for Babu to progress with growing his business portfolio quicker than he expected. He talks about finding the ‘formula’ which he replicates to open a store to the same high standard as his last one.

“And he’s right, there is a successful formula which allows franchisees to

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systematically open stores with ease and run them remotely.”

One Stop rolled out a new EPoS system to all its almost 1,000 core and franchise stores in 2020. The multi-million-pound investment was designed to improve efficiencies in store, save colleagues time and provide a best-inclass platform for future developments.

Babu said: “The technology and back-office systems allow me to run my stores from anywhere. Obviously, I can’t be in all of the stores at the same time but now I can get a clear overview of all of them from one location – even from home.”

S TO R E O P E N I N G S

EDDY’S FOOD STATION

Eddy’s Food Station launches store number three The new convenience chain also reveals it has selected Costcutter as its main supply partner.

EDDY’S LAUNCHES IN LARBERT

T

he Eddy’s Food Station convenience store chain has opened its third store in Larbert, after launching its inaugural Alloa store in May and a Greenock branch earlier in August.

The Larbert outlet, which has created 15 jobs, is set to see significant renovations in the coming months to transform it into “bright, modern-day convenience store”. The renovation will also see a food-to-go offering introduced.

Stephen Thompson, chief executive at Eddy’s Food Station, said: “When we

launched in May we stated we planned to open 30 stores within five years. With two additional stores already added to the roster and more in the pipeline, we are very much on track to meet that target.”

Mike Leonard, Head of Retail at Eddy’s Food Station, added: “The quick development of the Eddy’s Food Station group is an indication of how strong the convenience sector is. It’s brilliant to see the beginning of the Eddy’s Food Station journey progress so quickly with many other exciting launches imminent.”

In addition, the chain has revealed that it has selected Costcutter as its main supply partner. Eddy’s Food Station stores will have access to Costcutter’s 14,000-strong range and will be able to stock up to 2,000 Co-op own-brand products.

The stores will also benefit from Costcutter’s loyalty scheme rewards, the Shopper First growth programme, and marketing support alongside additional rebate rewards on qualifying Bestway delivered purchases.

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WHOLESALERS

CJ LANG

CJ Lang & Son strengthens its fleet

The new additions to the wholesaler’s fleet are a part of its continued drive to reduce its impact on the environment.

C

J Lang & Son, the wholesaler for Spar Scotland, has added four vehicles to its distribution fleet.

The bespoke Gray and Adams refrigerated boxes are combined with brand new Scania P320 vehicles and new Dhollandia underslung tail-lifts.

The company is also the first in the UK to incorporate the latest Thermo-King V-1000 engineless refrigeration units as part of its drive to reduce its environmental impact. These are in addition to the 12 new trailers added to the fleet earlier this year with the latest hybrid technology Thermo-King A-400 Advancer refrigeration units.

Ian Fleming, Transport Operations Manager at C J Lang & Son, said: “Reducing our emissions is a key part of our transport strategy and these new vehicles and refrigeration units will help us take another step forward on that journey.”

Meanwhile, CJ Lang has received an award from the Royal Society for the Prevention of Accidents for its work to ensure the safety of its team members and customers.

Organisations receiving a RoSPA Award are recognised as being world-leaders in health and safety practice.

Every year, nearly 2,000 entrants vie to achieve the highest possible accolade in what is the UK’s longest-running H&S industry awards.

Brian Straiton, Operations Director, said: “This truly is a significant milestone, we have been dedicated to improving our health and safety culture across our business ensuring CJ Lang remains a safe environment for all our colleagues and customers.

“Throughout the journey, the key turning points were the development of our SharePoint system, the introduction of on-site health and safety audits, and improvements in safety culture.”

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LOGISTICS

JAMES HALL & CO

James Hall & Co invests £200k in logistics operation New forklifts and picking trucks have been bought as part of a replacement programme to help bolster manual handling operations.

J

ames Hall & Co, Spar UK’s primary wholesaler and distributor for the North of England, has invested in new forklifts and picking trucks at its Preston-based Spar distribution centre.

Three new Linde R20 forklift trucks have been purchased on a replacement

programme helping support the 15-strong fleet in the ambient warehouse. They have the capability to lift loads of 2,500kg with a reach of up to 11m in height.

Linde have also supplied the business with six new N20 front-facing picking

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trucks for the ambient warehouse as part of the 30-strong fleet, bringing the new total investment cost to approximately £200,000.

On average, a forklift truck will travel 90 miles and a picking truck 75 miles each week around the ambient warehouse and they are operational across a 24-hour period.

The trucks are fitted with exchange batteries that enable them to be operational continuously, and the front-facing picking trucks have improved comfort and efficiency for operators, while providing them with increased vision, leading to fewer impacts and damage.

James Hall & Co serves a network of 600 independent Spar retailers and company-owned Spar stores six days a week.

Les Abbott, warehouse manager at James Hall & Co, said: “We have held a relationship with Linde for 12 years now as our main manual handling equipment provider and we continue to invest in the highest quality equipment to enhance the business’ efficiency.

“Our ambient warehouse is an exceptionally busy place, and we need vehicles that we can rely on. We are very pleased with the nine new additions to our fleet, and they have helped strengthen our operation.”

FORECOURTS

JET

JET campaign takes the drama out of driving The brand says the new campaign lands during a busy period of growth and development.

J

ET has unveiled a new campaign that takes a humorous look at how the fuel brand takes the drama out of driving. Featuring a variety of films plus digital activity, the campaign explores a series of stressful, ‘dramatic’ scenarios that drivers often experience with an unexpected laugh-out-loud comedy twist.

In one film a bridesmaid weeps and wails on a JET forecourt, yelling: “We don’t have time to fill up!” Her mood instantly changes when her wedding buddy announces that it’s all done and they drive off calmly with the end-line ‘here for drivers not dramas’.

A second ad sees a driver in full meltdown mode as the windscreen washer liquid runs out – only for his mood to change immediately as his wife, sitting beside him, hands over a new bottle.

Snacks, coffee and premium fuel are topics covered in a tongue-in-cheek manner to get across the key messaging that there are no dramas at JET. Rob Runnels, Phillips 66 UK Marketing Brand Manager, said the campaign “is full of humanity and humour – and truly captures the unique spirit and personality of the JET brand”.

He added: “Deliberately over the top and ‘dramatic,’ the scenarios are

nonetheless relatable and will resonate with our customers. This is a campaign to be proud of – one that puts a smile on your face and stands out for all the right reasons.”

The new ‘driving not drama’ campaign lands amid a busy period of growth and development for JET. The JET Refinery flagship site re-opened late last year following a £3m overhaul, and JET’s EV offer ‘JET Charge will officially launch later this year at a small number of sites initially.

The brand continues to grow its portfolio across the UK with nine Petrocell sites joining the JET family in May.

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 17

ELECTRIC VEHICLES

MFG

MFG’s ultra-rapid charging network goes live on Zap-Pay The MFG integration means more than 3,000 charging devices across the UK are now Zap-Pay enabled.

M

FG’s EV Power ultra-rapid charging network has become the latest to go live on ZapPay, the simple way to pay for EV charging across networks from within the Zap-Map app.

Zap-Pay is a single-app payment system that uses a credit or debit card to pay for charging. It enables users to avoid the hassle of using different payment methods across all the various networks.

The MFG integration means that more than 3,000 charging devices across the UK are Zap-Pay enabled. As a result, Zap-Map users can now pay quickly and easily for their EV charging, as well as

being able to search for charge points, plan longer journeys, and share updates with other EV drivers.

MFG’s network currently has more than 200 rapid and ultra-rapid charging devices at service stations across the UK. By 2030, MFG is planning to invest around £400m in 3,000 ultrarapid 150kW and 350kW EV charging devices across its network.

Alex Earl, Commercial Director at Zap-Map, said: “I’m delighted to see the MFG’s EV Power network come online with Zap-Pay. Not only is MFG a fantastic addition to the Zap-Pay partner network, but as a dynamic and

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expanding network with strategically placed ultra-rapid charge points, one that will make charging EVs that much easier for Zap-Map users.

“With Zap-Pay usage already increasing, we’re expecting to see this trend accelerate now that MFG’s EV Power is live on Zap-Pay.” Ed Chadwick, director, EV at MFG, said: “At MFG we are committed to making the charging experience as simple and seamless as possible. All our chargers are contactless card payment enabled and with the addition of ZapPay we are pleased to add more convenient payment methods for drivers.”

BUSINESS INTELLIGENCE

GROCERY SALES

Convenience stores experience sales boost

NielsenIQ data reveals shoppers made extra visits to their local stores during the heatwave.

U

K shoppers spent £3.6bn on groceries at convenience stores in the four weeks ending 13 August, with the channel accounting for 28.9% of sales within this period, according to new data from NielsenIQ. The data reveals that over the fourweek period, total till grocery sales remained strong, increasing by 4.5%.

However, this was exceeded by growth of sales at convenience stores, which rose 5.4%. Convenience stores also experienced an uplift in volume sales (2.7%) compared with volume sales at the grocery multiples, which declined by 3.8%.

The data shows that 21% of the total sales within c-stores were on fresh foods, where value sales increased by 13%.

Sales of frozen foods jumped by 29%, as did produce (+8%) within this channel.

Shoppers also purchased more as they sought to socialise and celebrate the warm weather and shop locally. Key category volume growths included ice cubes (+44%), ice cream (+31%), and frozen desserts and cakes (+31%).

However, the boost to in-store visits came at the expense of online sales, which fell by 8.7%. The online share of FMCG sales fell to 11.3%, down from 11.5% in July and 12.9% share a year ago.

Mike Watkins, NielsenIQ’s UK head of retailer and business insight, said: “Shoppers made extra visits to their local stores when the sun came out and sales at Co-ops increased 9% in the last four weeks, making them the fastest-growing retailer during the recent hot weather.”

Watkins added: “As inflation continues to bite, retailers that focus on saving shoppers’ money will be the ones that maintain sales momentum and it will those who are most agile and are able to adapt to another change in shopper behaviour that will be able to weather the storm. The battle for loyalty is not going away.”

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 19

BUSINESS INTELLIGENCE

SUMMER TREATS

PayPoint reveals UK’s top-selling heatwave treat

Data reveals that convenience stores have seen a 242% increase in ice cream and ice lolly sales during the heatwave.

P

ayPoint looked at sales across 28,000 convenience stores throughout the UK, finding a 242% increase in ice cream and ice lolly sales overall, with Ice Snappers the top freezer pick.

Bobby’s Ice Snapper, which is sold exclusively through convenience stores, comes in a 90ml pack and contains 41 calories. The products saw sales increase by two million units compared to a typical year. As a result, sales of the 39p treat are expected to top seven million units this year.

PayPoint’s data reveals that the top 10 heatwave treats were:

● Bobby’s Ice Snapper ● Walls Calippo Orange ● Walls Twister ● Walls Magnum Classic ● Walls Magnum White Chocolate ● Walls Feast ● Walls Cornetto Classic ● Walls Calippo Cola ● Walls Cornetto Strawberry ● Nestlé Fab

Bobby’s Managing Director Dave Suckling commented: “The Ice Snapper has been a favourite for many years and typically we sell around five million units annually.

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Suckling said sales had been stronger than usual: “We are expecting to sell more than seven million Ice Snappers.”

“We are putting the increase down to the hot weather and to our customers’ desire for a simple ice treat that will help them cool down without filling them up or spoiling their appetites.”

Ben Ford, retail services director at PayPoint, added: “As the mercury rose to new highs, thousands of people made the short trip to their local convenience store to take advantage of well-stocked freezers. The booming sales have been great news for consumers and retailers alike.”

BUSINESS INTELLIGENCE

CONSUMER CONFIDENCE

UK consumer confidence hits a new record low in August

GfK predicts the crisis of confidence will only worsen with the “darkening days of autumn and the colder months of winter”.

C

onsumer confidence fell to a new record low in August in the face of soaring cost of living and bleak economic prospects, according to new figures from data and intelligence company GfK. GfK’s long-running Consumer Confidence Index decreased three points in August to -44. All five measures of confidence – personal finance, general economic situation, major purchases, savings, and expectations for the general economic situation over the coming 12 months – were down in August in comparison to the previous announcement on 22 July.

Joe Staton, Client Strategy Director at GfK, said: “The Overall Index Score dropped three points in August to -44, the lowest since records began in 1974.

All measures fell, reflecting acute concerns as the cost of living soars. A sense of exasperation about the UK’s economy is the biggest driver of these findings.

Our sub-measure on the general economy over the past year has decreased month-on-month since December 2021 – that’s eight months in a row.

“A similar consistent sharp decline since December 2021 is evident in how consumers see the economy a year ahead and this month’s score of -60

sets a new record. These findings point to a sense of capitulation, of financial events moving far beyond the control of ordinary people.

With headline after headline revealing record inflation eroding household buying power, the strain on the personal finances of many in the UK is alarming.

Just making ends meet has become a nightmare and the crisis of confidence will only worsen with the darkening days of autumn and the colder months of winter.”

GfK’s Consumer Confidence Index is conducted among a sample of 2,000 individuals aged 16 years old and over.

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 21

BUSINESS INTELLIGENCE

RETAIL SALES

Food store sales rise

Consumers are changing their shopping behaviour as inflation starts to bite, Barclaycard data has revealed.

F

ood store sales rose by just 0.1% in July, a decline from the revised 2.7% increase in June when grocery spending was boosted by the Queen’s Jubilee weekend, according to the Office for National Statistics.

However, specialist food stores such as butchers and bakers saw sales jump by 4.7% over the month.

Meanwhile, alcohol and tobacco stores saw sales drop by 8.7%.

In addition, fuel sales dropped by 0.9%, suggesting that the heatwave meant fewer people were choosing to travel.

Overall retail sales lifted by 0.3% in July. This figure was significantly higher than economists’ expectations of a 0.2% drop.

The ONS statistics reveal online sales picked up in July, with retailers reporting that a range of offers and promotions had boosted spending during the summer months.

Richard Lim, chief executive of Retail Economics, commented: “Cutting back on ‘nice-to-haves’, trading down to cheaper alternatives and delaying non-essential spending are all coming into play as a more cost-conscious consumer emerges.

“Sales volumes declined across both food and non-food compared with the previous year, as consumers tighten their belts.

“The outlook is as tough as I can recall. Inflation is still yet to peak, and the impact of rising interest rates takes

22 I SLRMAG.CO.UK / ISSUE 119 / WEDNESDAY 24TH AUGUST 2022

time to trickle through to households.

Consumer confidence has hit an alltime low and even those that do have cash to spend will be more inclined to bolster their rainy-day fund given such an uncertain outlook.”

Kelly Miely, retail partner at Deloitte, added: “Though some retailers will be relieved to see volume and value sales grow month on month, the reality is that they are being forced to choose between margins being squeezed or passing on costs to consumers.

“This is a particular problem for food retailers, where prices of everyday essentials are typically most exposed to inflation, so despite consumers trimming their shopping baskets, they are still facing higher receipts at the checkout.”

BUSINESS INTELLIGENCE

PAYMENTS

Debit cards ‘most used’ payment method

UK Finance data also reveals that contactless mades up a third of all payments in 2021, while cash use fell again.

D

ebit cards were the most used payment method in 2021, accounting for 48% of all payments, according to data published by UK Finance.

The company’s latest Payment Markets Report shows the number of cash payments fell by 1.7% in 2021, although it remained the second-most-commonly-used payment method, used for 15% of all payments in the UK. A total of 40.4 billion payments were made during 2021, which represented a return to pre-pandemic levels.

The number of debit card and credit card payments, which fell in 2020, rose

again in 2021 to 22.9 billion payments – 57% of all UK payments were made using cards. Debit cards remained the most common payment method, up 23% to 19.5 billion payments.

The research shows contactless payments continue to grow in popularity.

Almost a third of all payments in the UK were made via contactless methods in 2021, up 36% compared with 2020.

The number of cash payments decreased by 1.7% to six billion, although it remained the second-most-commonly-used payment method, accounting for 15% of all payments made in the UK last year.

During 2021 there were 23.1 million consumers who used cash only once a month or not at all, a huge rise from 13.7 million the previous year. At the same time, 1.1 million consumers mainly used cash for their day-to-day shopping.

Adrian Buckle, Head of Research at UK Finance, said 2021 saw total payments return to pre-pandemic levels and a return towards the long-run trends in payment method usage.

He added: “These are trends we expect to continue over the next decade, alongside a continued decline in cheque use, and an increase in the number of people using remote banking.”

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 23

CONSUMER TRENDS

CONFECTIONERY

Hancocks urges retailers to stock up for TikTok trend

The platter board trend involves guests each bringing a platter board to a party depending on the theme of the night.

C

onfectionery wholesaler Hancocks is encouraging retailers to stock up on bright and colourful sweets to meet the demand of a recent TikTok trend.

The platter board trend involves guests each bringing a platter board to a party depending on the theme of the night. Hosts and guests prepare a platter with sweets and snacks that vary in size and in colour to create a really eye-catching board. The trend has been used for occasions like birthday parties and gender reveals, so staying stocked

up on relevant products for these kinds of events is important.

Products that could be featured include Swizzels Love Hearts and Swizzels Drumstick Squashies. Kingsway’s pick and mix products will also be popular, in particular, pink and blue sweets to be used at a gender reveal such as the Pink and White Mini Heart Mallows and the Blue Paintballs.

Chris Smith, Marketing Communications Manager at Hancocks, said: “We think it’s important to keep retailers on top of recent trends so they know

24 I SLRMAG.CO.UK / ISSUE 119 / WEDNESDAY 24TH AUGUST 2022

exactly what their customers are after.

The platter trend went viral on TikTok and we think it’s going to be popular for people throwing events like bridal showers, baby showers, gender reveals and birthday parties this summer.

“We’re encouraging retailers to stay stocked up on the kinds of products that people would incorporate into a fun sweets platter. This includes smaller confectionery products that would fit on a serving board as well as fun and bright sweets that stand out as part of a really lovely and eye-catching display.”

NPD AND MEDIA

PICKS OF THE WEEK – PERFETTI VAN MELLE

CHUPA CHUPS SHOWS FANS HOW TO UNWRAP A TikTok campaign, alongside a holiday competition, will promote the introduction of new paper sticks for Chupa Chups, which will replace most plastic sticks in the UK by the end of the year.

Perfetti Van Melle’s Chupa Chups lollipop brand

eliminate around 5,000 tonnes of plastic annually

has launched a burst of TikTok activity to promote

with the switch. The move is the next step in the

its ‘How to open’ campaign.

confectionery giant’s ‘Reduce, Recycle, Recover’

Influencers from the world of beauty, comedy, and fashion will ‘educate’ Chupa Chups fans on the

programme, which aims to eliminate plastic in packaging wherever possible.

easiest way to remove the wrappers from lollies.

Commenting on the promotional activity, Kate

The brand has also partnered with lastminute.

Howe, Brand Manager of Chupa Chups UK, said:

com for a competition to win a £1,000 holiday

“In the past we have seen great results for Chupa

voucher and Chupa Chups holiday merchandise,

Chups on TikTok – our last Halloween campaign

including beach towels, beach balls and a branded

performed frightfully well, with an impressive

suitcase filled with lollies.

brand recall rate of 42.6% against a benchmark

Both activities will also promote the introduction

of 13%, so it made perfect sense to continue on

of new paper sticks for Chupa Chups, which will

this platform with another light-hearted and crea-

replace most plastic sticks in the UK market by

tive campaign that fits in with the fun personality

the end of the year. Perfetti Van Melle expects to

of the brand.”

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 25

NPD AND MEDIA

PICKS OF THE WEEK – YEO VALLEY

YEO VALLEY SAYS IT’S TIME TO LOVE YOUR GUT The launch will be supported by a campaign that aims to ensure more consumers are aware of kefir and its potential health benefits.

Yeo Valley has announced the extension of its

health which is driving a strong growth in kefir products.

organic kefir ‘Love Your Gut’ range into Kefir

Yeo Valley Organic is the market leader in potted kefir

Drinks. Launching in September with an RSP

and has grown 33% in the last year to £11m.

of £2.25, the 500ml bottles will be available in

Justin Stanley-Duke, Brand Manager at Yeo

three flavours: Natural, Mango & Passionfruit,

Valley Organic, said: “Insight highlights that con-

and Cherry.

sumers are looking for products that support their

The launch will be supported by an integrated

gut health and are becoming increasingly aware

communications plan that aims to ensure more

of the benefits of kefir products. We saw this as

consumers become aware of kefir and its potential

an important opportunity to extend our kefir range

health benefits.

to Drinking Kefir that will provide more in terms of

Yeo Valley’s organic Kefir Drinks boasts 14

taste, affordability and sustainability.”

strains of live kefir cultures to help consumers

The Kefir Drinks are part of a series of new

‘Love their Gut’. These live cultures help maintain

product developments by Yeo Valley Organic,

a diverse microbiome and improve gut health.

with soups, dips, and Little Yeos No Added Sugar

The market is continuing to see a trend where consumers are seeking products that support their gut

26 I SLRMAG.CO.UK / ISSUE 119 / WEDNESDAY 24TH AUGUST 2022

pouches also due to launch into stores this September.

NPD AND MEDIA

PICKS OF THE WEEK – KIND SNACKS

KIND SNACKS CELEBRATES GOOD DEEDS The out-of-home campaign forms part of a wider, multichannel strategy including PR, digital, influencer marketing and limited-edition on-pack designs.

Healthy snack bar brand Kind has launched its first

ambassador Majid has also designed kindness-in-

out-of-home campaign, to encourage kindness

spired packs in support of the charity partnership.

among Brits and celebrate the brand’s partnership

The new look appears on three of Kind’s core bar

with refugee support organisation Choose Love.

variants: Dark Chocolate Nuts & Sea Salt, Caramel

The campaign sees Kind celebrate poignant

Almond & Sea Salt, and Maple Pecan Almond

and meaningful acts of unsung kindness from

across both single and multipack formats.

local people. The brand scoured the nation to find

Cementing the activity is a £50,000 donation

deeds that might have otherwise gone unnoticed

from Kind Snacks directly to Choose Love, to sup-

to give them the platform they deserve as part

port the charity’s humanitarian aid and advocacy

of digital and print ads which feature in London,

for refugees around the world.

Manchester, Bristol and Edinburgh.

Kind Snacks has also launched a nationwide

As well as being a first for the brand, the out-of-

search to find the country’s kindest person, where

home campaign forms part of a wider, multichannel

Brits can nominate someone they know who has

strategy including PR, digital, influencer marketing

gone above and beyond to deliver acts of kindness.

and limited-edition on-pack designs.

The UK’s kindest person will be celebrated with a

One of the ads tells the story of Iranian artist

4m high statue in a London location in September.

Majid Adin and his positive experience of kindness

The new designs will remain on shelves for

from the British public as a refugee. Choose Love

approximately eight weeks.

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 27

NPD AND MEDIA

PICKS OF THE WEEK – WOLF BLASS

WOLF BLASS UNVEILS ‘SIGNIFICANT’ ABOVE-THE-LINE MARKETING INVESTMENT The brand’s new integrated marketing campaign includes TV advertising, out-of-home, and digital.

Wolf Blass, the premium wine brand from Treas-

The latest phase of the ‘Why Settle When You

ury Wine Estates, has launched a new integrated

Can Soar?’ campaign sees the brand’s first move

marketing campaign that includes TV advertising,

into live television advertising, reaching 4.5 million

out-of-home, and digital activities.

consumers across the advert’s 10-week run time.

The Australian wine brand will also continue

The advert debuted during this week’s opening

its partnership with Secret Escapes for the its

episode of the new Game of Thrones series,

largest-ever consumer competition with the luxury

House of the Dragon, to align with the release

travel company.

of limited-edition wine, Wolf Blass’ Fire & Blood Cabernet Shiraz, which will be available nationwide in Asda and Morrisons.

The ‘Why Settle When You Can Soar?’ activation will see an out-of-home campaign launch on 19 September, supported with shopper campaigns in-store, as well as across PR, digital and events.

Meanwhile, the brand’s continuation of its successful partnership with luxury travel deals company, Secret Escapes, kicks off on 1 September and will drive sales across the impulse and grocery sectors.

The Secret Escapes promotion, which last year generated 50,000 entries, will see 750,000 bottles across the UK tagged with prize-winning QR codes.

Entrants will have to scan the QR code on the tagged wine bottles to be in with the chance of winning over £1m worth of instant prizes and credits.

One lucky winner will receive a oncein-a-lifetime holiday to either Lapland or Mauritius. Five £500 vouchers are also up for grabs, and 40,000 runners-up will each receive a £25 voucher, redeemable on the Secret Escapes site with a minimum £125 spend.

28 I SLRMAG.CO.UK / ISSUE 119 / WEDNESDAY 24TH AUGUST 2022

NPD AND MEDIA

PICKS OF THE WEEK

SAMPLING GALORE

ROLL ON

GOOD TOFFEE

Self-serve milkshake brand

Andrex has rolled out its new

Premier Foods has introduced

f’real is trialling a new sampling

Mega Roll, designed to last cus-

its new Mr Kipling Deliciously

opportunity for stockists in the

tomers 50% longer. Launching

Good Toffee Apple Pies, which

convenience channel. The initia-

with Andrex Classic Clean, it uses

aims to capitalise on demand

tive will offer retailers across the

22% less plastic and requires up

for healthier sweet treat options.

country the chance to get their

to 25% fewer trucks to transport.

Available from September, the

hands on a bespoke sampling

Each sheet features the brand’s

pies are made with real fruit and

pack and drive cup sales through

3D Wave texture that it says is

have 30% less sugar than stand-

their in-store blender.

proven to clean effectively.

ard pies.

GEEK OUT

CANNED DELIGHT

SPOOKY TREAT

Disposable vape manufacturer

JJ Whitley has rolled out a new

Premier Foods has unveiled its

Geek Bar has launched its new

ready-to-drink range compris-

Halloween range, which includes

E600 range in the UK – a smaller,

ing Vodka Lime & Soda, Blue

Cadbury Pumpkin Patch Cakes,

lighter successor to the original

Raspberry Vodka & Lemonade,

Cadbury Mini Bonfire Logs, Cad-

product that established the

London Dry Gin & Tonic and

bury Goo Heads Cake Bars, Mr

brand. The devices are prefilled

Pink Gin & Lemonade. All four

Kipling Terrifying Toffee Whirls,

with 20mg of nicotine as well as

variants come in a 330ml can

Mr Kipling Fiendish Fancies and

up to 2ml of e-liquid and offer 600

format and all are 5% ABV with

Mr Kipling Chocolate & Marsh-

puffs. RSP £5.

an RSP of £1.99.

mallow Slices.

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 29

THE NATIONAL LOTTERY RETAILER REWARDS PROGRAMME

Enter SITE STOCK SELL ONLINE via the TNL Retailer Hub for a chance to be entered into the quarterly draw for £10k*

PLUS…ENTER EACH MONTH AND EARN £10!

Upload photos of your lottery standards in store via the TNL Retailer Hub

Score 8,9 or 10 30 I SLRMAG.CO.UK / ISSUE 118 / WEDNESDAY 17TH AUGUST 2022

*Score 8, 9 or 10 to be entered automatically. Eligible retailers only. Ts&Cs apply.

NOW THAT’S A GOOD IDEA…

OUT THE BOX A new feature from Farmstead reminds you what’s in your refrigerator to reduce food waste.

Deliveries go green

Most of us want to be eco-conscious – but how do we make sure our choices are sustainable?

A new online carbon footprint tool promises to help online shoppers work out the most environmentally friendly delivery method.

WHAT’S THE BIG IDEA? The University of Hull’s Aura Innovation Centre has joined forces with iParcelBox to develop a calculator aiming to give both retailers and customers a “fair and unbiased” comparison of the carbon footprint of different online purchasing options.

The tool promises to enable buyers to make informed decisions as to which delivery method is the greenest, while also helping to cause behavioural changes towards a more sustainable future.

WHAT’S IPARCELBOX ANYWAY? The Hull-based company provides a smart, secure and weatherproof dropbox, which the customer monitors and controls from their smartphone to receive parcels when they’re not home or can’t get to the door. This means parcels get delivered first time, cutting down emissions associated with missed deliveries.

WHY DID IT NEED A CARBON FOOTPRINT TOOL? It wanted to know exactly how green its product was compared to local pick-up points.

AREN’T LOCAL PICK-UP POINTS BETTER FOR THE ENVIRONMENT? That’s what the couriers say. To reduce their own corporate emissions, many companies are encouraging customers to get their parcels delivered to local hubs, such as pick-up points or lockers, enabling them to claim lower emissions for the last leg of the delivery process.

THAT’S WHAT I THOUGHT. However, depending on the locations of the parcel pick-up hubs, such claims of environmental benefits ignore that the customer will still have to collect their parcel from

the local hub. This could involve a further journey if not within a short distance – a particular issue for outof-town online shoppers for whom walking, cycling or public transport may not be an option.

SO WHICH IS GREENER, HOME DELIVERY OR LOCAL PICK-UP? That depends on several factors, not least the distance between your house and the local hub. Hence the carbon calculator.

HOW DO I ACCESS IT? The carbon calculator tool is available for industry and customers here.

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 31

HYDRATE WITH OUR recyclABLE

bottles *

*Bottles and caps are 100% recyclable.

1.5ltr Buxton Still Water bottles in this exclusive pack for Sainsburys are made from 100% recycled content PET plastic, excluding caps and labels. Water contributes to the maintenance of normal physical and cognitive function and normal regulation of body temperature. At least 2L of water, from all sources, should be consumed per day, as part of a healthy diet and lifestyle. ® Reg. Trademark used in agreement with the Trademark Owner.

BEFORE YOU GO

RETAIL RANDOMS

WHO ATE ALL THE PIES? The news that the Premier League is thinking about banning the promotion of gambling on football shirts has prompted betting.com to consider alternative sponsorship opportunities for clubs.

More specifically, it has looked at various British football teams that have famous food and drink brands that were founded locally and designed some eye-catching alternate football shirts inspired by those brands.

What business a website that promises to take confused punters by the hand and guide them through the jungle of online bookies has designing football strips is anyone’s guess but – on the whole – it’s done a fairly decent job.

However, one imagines that Aston Villa fans would be horrified to see the Lions take to the field looking like a multipack of ice lollies in homage to Bird’s Custard, which was first formulated in Birmingham in 1837.

The Greggs-themed Newcastle United strip, on the other hand, is a much more nuanced affair and certainly an improvement on the food-to-go giant’s pastry-inspired clothing collaboration with Primark.

If only it had been around 30 years ago when the Magpies’ cubeshaped centre-forward Micky Quinn (nicknamed ‘Sumo’ and ‘Hippofatamus’) famously picked up and scoffed a pie a spectator had thrown onto the pitch.

JUST THE JOB With prices rising daily, more

for example, will sell you some

and more people are looking

nice organic cotton flannels

for ways to save some cash.

for £21.50 that you can pop in

So, if you’re not feeling par-

the wash then reuse. Actually,

ticularly flush, you may want

it won’t, because – amazingly –

to consider reusing your toilet

its 24-piece Toilet Unpaper Roll

roll.

has now sold out.

Don’t panic, you haven’t

However, if you decide to

been in a coma for six months

give this new slant on ‘touching

and just woken up on April

cloth’ the bum’s rush, remem-

Fool’s Day. Reusable bottom

ber you can always pick up 24

wipes are a real thing and have

rolls of Asda Shades for £8.70.

been popular with the more

Mind you, the way inflation

sustainably minded among us

is going, it will soon be more

for some time.

cost-effective to just wipe

Now the idea is gaining

your backside with banknotes

traction as a way to make ends

instead. Shame the new plastic

meet. The Net Zero Company,

ones are so slippery though.

WEDNESDAY 24TH AUGUST 2022 / ISSUE 119 / SLRMAG.CO.UK I 33

Make sweet profits with

Grow your confectionery sales Chances to win monthly and quarterly cash prizes Join the 4,500+ retailers who have already signed up

“It’s already helped us to grow our sales in such a short period of time” Samual, Valley Convenience Store Manager and the latest winner of a £1,000 Buy A Gift Voucher

scan the QR Code to access a digital copy of the membership brochure

For further detail please contact the team at Mercieca E: perfettivanmelle@mercieca.co.uk