Promos help offset alcohol duty rise

Wholesale promotions on alcohol have limited negative customer feedback to changes in duty implemented this month.

On 1 August, a new alcohol duty system based on strength and volume was introduced, leading to price changes on hundreds of lines. The changes meant some wine and spirit products had price increases ranging from 35-65p, while pre-mix cans saw a decrease in cost.

However, any initial backlash from customers was prevented as the increases were introduced at the same time as strong alcohol promotions. Serge Notay, of Notay’s Premier in Batley, West Yorkshire, told RN that Booker promotions running until the end of August meant many beer lines were unaffected. He said: “I have to praise Booker as it meant customers didn’t notice any impact. It also gives me more time to work out how I can inform customers about the changes.”

Some retailers, such as Martin Lightfoot, of Londis Solo Convenience in Glasgow, did face a negative reaction from customers. He said: “Customers aren’t aware and we’ve had to try and explain it’s not us putting the prices up.”

One Spar retailer faced an increased workload to accommodate the new duty, telling RN: “I’ve got 25 products which need the labelling changing throughout my store to reflect the price changes.”

Sales within the hot food section have also grown from £150 to £1,300 per week, with an average margin of 38%.

Since launching the format in April 2022, Bestway has opened 10 Costcutter Bargain Booze sites, with another 20 sites planned. It aims to expand to areas where Bargain Booze has no presence.

Costco to open 30th UK depot

Costco is to open its 30th depot in the UK, giving retailers in the west of England access to a new wholesaler.

The site’s opening has not yet been given a date, but it will be based in the Centric Park industrial estate in Gloucestershire. It is being managed by commercial property developer Chase Commercial, which is working with the cash and carry firm to open more sites across the UK.

The firm’s criteria for the additional sites include space for 650 parking spots, alongside areas to accommodate petrol filling and electric vehicle charging stations.