RN - 17 March 2023

CONTENTS

Editor Jack Courtez @JackCourtez 07592 880864

News editor

Megan Humphrey @MeganHumphrey_ 07597 588972

Features editor

Charles Whitting @CharlieWhittin1 020 7689 3350

Senior features writer

Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355

News reporter

Jill Lupupa jill.lupupa@newtrade.co.uk

Head of design

Anne-Claire Pickard

Senior designer

Jody Cooke

Junior designer

Lauren Jackson

Production editor

Ryan Cooper

Sub editors

Jim Findlay, Robin Jarossi

Production coordinator

Chris Gardner 020 7689 3368

Editor in chief

Louise Banham @LouiseBanham

Features writer

Jasper Hart @JasperAHHart 020 7689 3384

News editor

Alex Yau @AlexYau_ 020 7689 3358

Deputy insight & advertorial editor

Tamara Birch @TamaraBirchNT 020 7689 3361

Specialist reporter

Dia Stronach 020 76893375

Head of commercial

Natalie Reeve 0207 689 3367

Senior account director

Charlotte Jesson 020 7689 3389

Senior account manager

Lindsay Hudson 020 7689 3366

Account manager

Megan Byrne 020 7689 3364

Account manager

Marie Dickens 020 7689 3372

Managing director

Parin Gohil 020 7689 3363

Almost 7,000 local shops could shut this year unless the government takes drastic action, according to the ACS. In real terms, that would equate to nearly 60,000 jobs lost and millions of people losing access to their nearest source of groceries, vital payment services and community support. Because independently owned convenience stores over-index in deprived areas where margins are already tight, those who feel the impact will often be the most vulnerable.

When Tata Steel in 2016 said 7,000 jobs could be lost at Port Talbot’s steelworks, it rallied a cross-section of UK and European politicians, unions and financiers to push for a solution. So, why is it that a jobs crisis nearly 10 times larger will likely be met with silence?

Even though this week’s Spring Budget on Wednesday takes place after RN goes to press, I don’t think it’s risky to predict that the measures announced will fail to address the energy challenges local retailing faces. And even if the government does announce the level of support shops need, it will still be too little, too late for many.

Take, for example, the legendary David-and-Goliath story of Morrisinghs in West Allotment, Newcastle upon Tyne. Owner Jel Singh Nagra achieved national coverage and support in 2017 after being forced to change the store’s name from Singhsbury’s after the similarly named grocery giant turned its legal guns against this small shop.

Beyond the bombastic headlines lies an excellent convenience store that has gone above and beyond for the community, organising litter picks, raffles for the community centre, funding for local sports, promoting other local businesses and so much more.

However, the store is now to shut its doors for good. Jel Singh Nagra told me that their energy bills had ‘quadrupled’ while trade from UK’s largest office park, located nearby, has evaporated due to the work-from-home trend.

That stores like Morrisinghs doing everything right and adored by customers can still be brought down by factors well beyond its control shows the important role local shops play can no longer be taken for granted.

HEADLINES

3 INDUSTRY NEWS Elfbar scandal widens with mandatory recall Free Google device drives footfall in local shops

5 SYMBOLS & WHOLESALE Wholesalers urge more supplier support for independent shops

6 N EWS & MAGS Smiths News and Menzies complaints rocket over deliveries

7 FED NEWS Shops still struggling to achieve deposit return-scheme exemptions

8 YOUR VIEWS

‘Daily Mail deserves praise for new margin-enhancing scheme’ 10

12 PRODUCT NEWS

Lucozade Sport launches Zero Sugar varieties

15 STORE ADVICE

Store owners reveal free improvements that will cut costs and grow sales

18 EXPERT OPINION

Simple tips to better appreciate your team from Andrew Thornton

19 TOP 100 MAGAZINES

Make sure your stands include 2022’s bestselling titles

22 PETCARE GUIDE

Your plan for becoming a destination store for pet owners

24 PRICE-MARKED PACKS

Elfbar scandal widens with mandatory recall

by Alex Yau alex.yau@newtrade.co.uk

The fallout from the Elfbar scandal continues in UK convenience stores, with a new mandatory recall, regulator threats to fine stockists and the removal of some delivery services from independent stores.

While Booker, One Stop and Nisa had already ordered stores to remove and return Elfbar stock, last week, government regulators stepped in and ordered that 10 batches of Elfbar products be removed from sale “with immediate effect”.

Announcing the order, the Chartered Trading Standards Institute (CTSI) and Medicines and Healthcare Products Regulatory Agency (MHRA) criticised stores and wholesalers that had continued to sell Elfbar 600 stock over the legal 2ml e-liquid limit.

The joint statement read: “Some businesses have been told that there is a voluntary withdrawal of non-compliant products in place and have interpreted this as meaning they do not have to withdraw non-compliant products from sale if they

Horizon racism claims

do not want to.

“This is not correct. All non-compliant products must be withdrawn from sale. Anyone who continues to sell these products is breaking the law and leaves themselves open to fines, seizures and prosecution.”

A survey of more than 100 independent shops found only half removed Elfbar products from sale after the brand admitted the regulatory breaches.

The batch numbers to be removed from sale are: EP017693, EP020398, EP020250, EP019749, EP020257, EP019746, EP020120, EP020394, EP019893 and EP019894.

Enforcement notices have been sent to every local trading standards authority as well as to trade associations.

Bestway trading director Kenton Burchell confirmed to RN the wholesaler had removed non-compliant stock.

Dee Bee Wholesale managing director Nick Ramsden added that the company was auditing stock and would remove any affected batches.

RN understands Elfbar and Lost Mary will also be restocked by Booker, One Stop and Tesco

subject to verification of compliance, but a date is to be confirmed.

Uber Eats reacts

The recall also prompted home delivery company Uber Eats to ban independent retailers from selling vapes entirely. Messages sent to retailers by the company, seen by RN, confirmed it was not allowing independent convenience stores with “decentralised” (independent) listings to sell vapes on its service due to compliance concerns, giving the major grocers a monopoly on selling the products on the platform. It warned it would remove vaping products from stores found listing the category. Independent retailers found selling vapes would also have their Menu Maker function revoked, forcing them to email individual product changes for prior approval instead. The decision faced criticism from affected retailers.

Trading standards

“overwhelmed”

CTSI warned issues with illicit disposable vapes could be more widespread, as “trading standards teams are

overwhelmed by the volume of non-compliant vapes being sold by the retailers”.

The body called for more support from government to tackle a “tidal wave of non-compliant vapes being sold”, as it claimed one in three vapes on the market may be non-compliant, based on test purchasing.

It cited incorrect health warnings, wrong tank size, high nicotine concentration and incorrect labelling as signs of illicit products.

Suggested changes were “more boots on the ground” to crack down on retailers and to “toughen up” sanctions on stores and suppliers caught out.

Freedom of Information requests by retailer Vape Club released last week showed more than one million illegal vaping products were seized in London alone in 2022.

Suppliers and retailers face a separate vaping crackdown over poor compliance with mandatory electrical recycling laws (WEEE regulations).

Government-endorsed advisor Material Focus claimed 90% of vaping suppliers were in breach of the legislation.

Post Office’s Fujitsu Support Services-run helpdesk at the height of the Horizon scandal was “toxic”, with widespread racism, a whistleblower claimed last week.

Former Horizon helpline worker Amandeep Singh told the Horizon inquiry of his experience at the Wakefield office from 2000 to 2001: “The floor on these days was most toxic, with vocal characters in Squad A, unchallenged by managers, who looked away as all Asians were called ‘Patels’, regardless of surname. Shouts across the floor could be heard, saying: ‘I have another Patel scamming again’.”

“They mistrusted every Asian postmaster. They mocked Scottish and Welsh postmasters, and pretended they could not understand them. They created a picture of postmasters that suggested they were incompetent or fraudsters.”

PMPs for premium brands

Premium brands are launching price-marked varieties in response to the growing importance of value to customers.

National Lottery reps have pledged new terminal devices are “coming soon”, according to several stores visited last week.

Steve Wilson, owner of two stores in Galashiels, Scottish Borders, told RN that lottery reps were now operating under the Allwyn brand, following the new lottery operator’s acquisition of Camelot

last month. He said his rep claimed that “new lotto terminals are coming soon”.

Describing the news, Wilson told RN: “The lottery terminals are old, but they still work. The important part for me is seeing that Allwyn is investing in retail.”

Asked about the new terminals, Allwyn said:

“Allwyn has exciting plans to invest in and grow the retail channel over the course of the Fourth Licence. We will start to communicate with retailers this summer to share the first details.”

Discussing the firm’s UK plans in an interview with iGaming Business this month, Allwyn group chief executive Robert

Chvátal said: “It has to be a journey of portfolio innovation, a journey of further digitalisation – not only in the online space, but also in retail.”

He continued: “Retail is really important to us, and we’re committed to growing this channel, helping the brick-andmortar world move with the digital times.”

Lindt is to add a 95p price-mark to its 38g Lindor Milk and Lindor Milk Salted Caramel Treat Bars.

Explaining the move, Lindt national account manager Daniel Caton described shoppers as “savvier than ever”. He added: “Price-marked-pack purchasing is increasing in an inflationary environment, and pricing is particularly important when purchasing snacks.”

lottery terminals ‘coming soon’

PayPoint voucher rollout

PayPoint is to create a network of ‘super agent’ stores following its acquisition of gift voucher firm Appreciate Group (AG).

Asked by RN to explain the benefits of the takeover for stores, PayPoint corporate affairs and marketing director Steve O’Neill said it would create new commission opportunities including “rolling out physical Love2shop gift cards across the network”.

O’Neill added that 2,0003,000 retail partners would become ‘super agents’ of AG’s Park Saving scheme, which sees users deposit funds during the year and receive vouchers back at Christmas. He said: “We’ll be targeting the Christmas savings cycle for 2024 rolling out from September 2023.”

PayPoint also said commission paid to its retailers had risen 25%, driven by new and current products and services.

Budget tax hike planned

The government’s planned corporation tax rise is due to hit stores with profits greater than £250,000 per year, after ministers signalled they would not back down in this week’s Spring Budget.

From 6 April, businesses over this threshold will pay 25% rather than the current 19%. Stores making between £50,000 and £250,000 will get some relief and those on less than £50,000 per year will remain on the 19% rate.

A full explanation of the budget’s impact on stores will be included in next week’s edition of RN.

EXCLUSIVE

Google’s Pointy device pulls in new customers

by Jill Lupupa jill.lupupa@newtrade.co.uk

Google has begun pushing out a free, plug-in device that generates footfall for retailers by allowing potential customers to see what products each shop sells and for what price online.

Though Google acquired Pointy in 2020, stores reported a surge in calls and deliveries of the tool in the past few months. Some stores also reported their EPoS provider had begun ‘recommending’ Pointy.

Retailers can either plug a Pointy device into their till and scanner or download the Pointy app directly onto some till systems. Once a product is scanned at the till, Pointy pulls up the title, image and description from the product’s barcode and adds it to the store’s Google listing. Stores can choose whether or not to also display prices and can also pay for additional Google ‘local inventory’ adverts if they wish.

Chloe Taylor-Green, from Spar Western Downs in Stafford, told RN the store was an early adopter, ordering the free device 18 months ago. Explaining its impact, she said: “We’ve had someone come from Birmingham, a 45-minute drive from us, looking for Prime. They were able to call ahead to check we had it in stock.

“It’s good for footfall as people can return to you when they like what you stock so you reach a market that’s not known to you.”

Kavita Patel, from Burnham Budgens in Slough, Berkshire, also noticed the impact: “We’ve had it for six-to-eight weeks. We’ve been getting a lot of

people calling and asking if we have certain things in stock as Google had told people how many of a certain product we’ve sold in a week.

“Our enquiries have increased, but I don’t know if it’s actually made a difference with people coming into the store yet as we’ve had it for a short time.”

Brigid Yacamini, from Creetown Stores in Galloway, is a recent adopter, stating: “We hope to see an uplift in the summertime with holidaymakers catching the ferries to Ireland. The population of people passing by nearly doubles. More tourists will swing by as they don’t know what we sell.”

Paramanathan Gowsinathan, of Newsboy Premier in Sandhurst, Berkshire, said Google called them and delivered it. “We’ve had it for three-tofour months, and it’s easy to connect with the USB that goes from the scanner to the EPoS system.”

Vrajesh Patel, owner at Londis Dagenham, said: “The staff do monthly reviews of Pointy. We will be doing one at the end of

the month – I don’t oversee that, but on the whole it’s a positive for retailers.”

NearSt (Near Street) also provides a Google-partnered service connecting partnered stores to customers searching for specific items in their nearby area. The service counts retailers such as Spar SW and Southern Co-op, and EPoS companies such as IT Retail Systems and TLM, among its partners.

Challenges and opportunities

Some stores told RN they had opted to work with NearSt instead of Pointy after facing issues integrating Pointy with their EPoS system.

IT Retail Systems commercial director John Haslam agreed: “The main thing is integration. We make sure everything is done by us automatically or by NearSt, but with Pointy, the retailers may have to do this themselves.”

A common concern outlined by stores was the sharing of data with Google and the visibility of this to rivals. Former

PayPoint retail director and co-founder of convenience consultancy C-store Collective Mike Igoe said: “There’s a real advantage in terms of footfall, a driver in customers knowing the products are in store, or have been sold in store because of the sales data they supply.

“But they also need to be aware that they’ve shared that data.”

Nick Brackenbury, co-founder and CEO at NearSt, said that while some retailers “feel uneasy about providing their data to big tech”, the alternative was to lose customers.

He explained: “If everyone uses their phones to find things online, then we don’t want to harm ourselves as physical retailers by basically being invisible or not even part of that journey.”

Google states the device only takes data from the barcode scanner, and not the EPoS system.

Stores can order Pointy by registering their details at pointy.withgoogle. com or purchase the NearSt service at near.st.

Pointy plugs into the till and scanner

Unitas urges suppliers not to overlook indies

by Dia Stronach dia.stronach@newtrade.co.uk

Wholesale group Unitas has urged suppliers not to overlook independent convenience, as the sector is tipped to be “the channel for growth this year”.

Speaking to RN at the company’s annual tradeshow in Liverpool on 9 March, Unitas managing director John Kinney said he had stressed to suppliers during a briefing that independent retailers were set to outgrow supermarket convenience.

He said: “We see independent retail as the channel for growth this year. There’s disproportionately high growth in convenience according to the latest research from analyst IGD, with people shopping little and often.”

Kinney explained that as the increase in demand in convenience stores during the pandemic continues to fade, independent retailers will see growth as customers prioritise value in the cost-of-living crisis.

He urged suppliers to provide more transparency on price increases for retailers, as a number of brands squeezed the profit

Margins increase on PMPs

Independent retailers saw margin improvements on nearly a quarter of PMPs last year, according to research from The Wholesale Company (TWC).

The research by the analyst in partnership with the Federation of Wholesale Distributors found the increase in the year up to July 2022 was compounded by a 4% margin decline from other suppliers in the same period.

on price-marked packs (PMPs) last year.

He added: “Customers need to be seeing value in stores, and you have to be protecting that value. PMPs are the way to communicate this.

“We understand suppliers face their own pressures on costs. We ask that they communicate in advance when there are these issues.

“We want little and often, we want PMPs and we want promotions. For suppliers, you’ve got to make sure you’re protecting this channel.

“If suppliers don’t have a strong independent channel, they’ll lose out to multiples.”

Improvements for stores

To help communicate the importance of independent convenience to suppliers, Unitas launched its Brand Box scheme in 2020, enabling retailers to introduce samples of new products into their stores for free.

The scheme has performed well, according to Kinney, with Unitas due to introduce it to its foodservice and hospitality customers.

The company is also set to expand core lines in its Lifestyle own-label range by the end of the month.

Unitas saw an increase in retailers choosing to shop around at cash and

carries instead of using delivered wholesale, as they were seeking the best deals for their stores amid rising overheads.

However, Kinney warned a reliance on this approach could lead to retailers stocking a number of unknown lines at inconsistent and uncompetitive prices.

Commenting on store expansion, Kinney said the company added 100 retailers to its Today’s, Lifestyle Express and DayToday symbol groups last year. He added that a focus was to visit members and help refresh store layouts and ranges to cater to changing customer demand.

Digital SELs cut costs and waste

A digital shelf-edge specialist that promises to reduce overheads and labour hours in stores is looking to expand its latest concept through symbol groups.

SES Imagotag partnered with Kavanagh’s Budgens in north London last month to launch its Vusion 360 store.

Using a combination of cameras and digital

shelf-edge labels linked to the store’s EPoS, staff are able to monitor stock levels in real time and instantly update any pricing changes.

SES Imagotag’s senior executive vice-president of group strategy, marketing and communications, Roy Horgan, told RN the store had reduced time spent manually changing shelf pricing

by 10 hours a week. He added: “It also helps a store identify potential wastage, such as incorrect products on the shelves, stock gaps or any sudden price changes.

“Our target is to help Kavanagh’s Budgens reduce its annual wastage by £100,000.

“They can push out promotions in seconds, which would typically be

half a day’s work.”

The company operates on a subscription model, with pricing dependent on the store. It counts Co-op, Londis, Costcutter, Morrisons Daily, AF Blakemore and Spar among its customers.

Horgan added: “We’ve got another Vusion 360 store with Spar and our intention is to do it with more UK symbol groups.”

Pricing analysis alongside interviews with wholesalers and retailers helped formulate the results.

TWC development director Tom Fender said: “The key challenge the sector faces is there needs to be sufficient margin to achieve this without pushing the price too high.

“The solution is for wholesalers, retailers and suppliers to work together.”

Click & collect for JW Filshill

Wholesaler JW Filshill has opened click & collect services at its new Westway distribution centre in Glasgow.

The service was made available last week following the opening of the new site. The firm’s chief executive, Simon Hannah, provided the first click & collect customer at the Westway distribution centre, Aurangzeb Khaliq, of KeyStore Great Western Road, with a goody bag to mark the occasion.

The purpose of the new site is to improve the delivered service to Filshill’s KeyStore symbol and unaffiliated customers.

More Lifestyle own-label lines are to be released this month

NEWS & MAGS

Rerun payments demanded

Retailers are calling for rerun compensation for home news deliveries (HND) to be widened to include extremely late initial deliveries.

The existing payments for reruns support HND agents with the additional staff costs when one or two publishers’ titles arrive later than the rest.

However, late initial runs create the same problem (delivery staff working outside contracted hours), but are not compensated to the same extent, according to the Fed.

Retailers described having to close the store to complete rounds themselves when late papers prevented children from carrying deliveries before school, or having to pay adult drivers extra hours.

Fed head of news Brian Murphy said publisher attempts to get stores to take on more orders won’t work when “one leg of the supply chain isn’t getting paid”, and vowed to fight for the change in upcoming industry meetings.

Paper shortages loom

Paper shortages caused by Finnish dockworker strikes will disrupt upcoming magazine editions delivered to stores.

Despite the strike being resolved on 1 March, RN understands many printers’ supplies of paper from Finland are running out, forcing downgrades to lower qualities on editions until at least April.

Titles printed by Warners Midlands are understood to be among those affected.

Retailer complaints about wholesalers soar

by Dia Stronach dia.stronach@newtrade.co.uk

Retailer complaints about news wholesaler conduct leapt last year, with delivery times the number-one frustration in stores, according to newly released official data.

Wholesalers Menzies Distribution, News UK and Smiths News collectively received nearly 20 complaints per day from stores in 2022, a quarter more than 2021, according to figures in the Press Distribution Review Panel’s (PDRP) annual report, released last week.

Despite Menzies and Smiths News each supplying the same number of stores, Menzies received more than double the number of complaints as Smiths News.

Menzies also took nearly twice as long to resolve issues reported by stores, with the average Menzies customer now facing an 18-day wait to have their complaint addressed.

News UK’s wholesale operation took the longest time to resolve the average complaint – 35 days, attributed to “online issues” at the company from October to December.

While complaints per month against Menzies reduced over the year, Smiths News finished 2022 with 55% more complaints per month than when it started the year.

Independent PDRP chairperson Steve Cripwell attributed the rise in complaints to a post-pandemic bounceback in supply pressures, a new customer care line at Smiths introduced in 2021 leading to easier store complaints and continued driver shortages.

The report said driver shortages were “greater and more prolonged” at Smiths News due to a “training lag for new recruits”.

The number of more serious ‘stage two’ (where a wholesaler fails to resolve a retailer issue) complaints and breaches

each increased by more than 50%.

Cripwell said the rising complaints “highlights ongoing retailer frustration”.

Despite the trend, the wholesaler-supplied data suggested compliance with required delivery times into stores increased slightly from 91.1% to 91.6%.

Unlike in 2021, every month saw average RDTs of greater than 90%, except for September, where coverage of the Queen's death led to RDT compliance dropping to 86.7%.

Stores also reported fewer issues with customer service, voucher processing and order management than the year before, though complaints about delivery times, delivery quality, returns, invoicing and claims all increased

year on year.

RN understands work is underway at each wholesaler to improve service standards into stores, including greater communication between depots and publishers to prioritise packing based on publisher inbounds.

The Fed is a member of the PDRP. The trade group’s national president, Jason Birks, welcomed the simpler and more transparent complaints procedure for stores introduced in 2021, but added there remained “a long way to go”.

He criticised the absence of information on “the root cause of most complaints” – publisher delays – stating: “This must be addressed if the drive to grow print subscriptions is to be maximised.”

Reach claims price-increase success

Reach has said it made “more than average” price increases in the past 12 months, often coupled with retailer terms cuts to “protect” its own print margins.

Despite chief executive Jim Mullen claiming price rises had “minimal impact” on print volumes, ABC figures show Reach’s national titles have the worst print reader reten-

tion rates of any major publisher for the past year, when many lost around one in five readers.

The company revealed it had reduced the number of copies it was providing to stores and had cut the pagination of its titles by “around four pages”.

Mullen stated there was “no material impact on availability” and that average page counts were

above pre-pandemic levels.

Reach cut retailer percentage margins nine times last year on national titles, with weekday titles falling from 20% to 18.5% retail margin since the start of 2022.

Mullen said Reach would “make savings in our print supply chain”, including more efficient distribution planning.

The company cited a

60% increase in newsprint costs as a major factor in its overall operating profit falling by more than a quarter to £106.1m.

Reach described a higher risk of “supplychain disruption and price increases” due to cost pressures.

In response, it said it “increased the monitoring of our key suppliers” during the past year.

Stores still struggling to get DRS opt-out

by Megan Humphrey megan.humphrey@newtrade.co.uk

One in four stores that have received a verdict on their request to opt out of Scotland’s deposit return scheme (DRS) have had their request denied by the Scottish government, RN can reveal.

Sources confirmed to RN that, as of 24 February, a total of 139 applications had been lodged. Of these, 110 are still being processed, 22 have had their exemptions granted and seven stores had their application denied. A majority of granted exemptions were to supermarketowned sites.

The number of applications represents a steep rise since the exemptions criteria was changed in November to allow more stores to opt out.

Freedom of Information requests by RN showed just 36 exemption applications were lodged in the two years up to the change, compared with 103 in the four months since the criteria was widened.

Scotland

Fed backs green scheme

The exemptions criteria were simplified to encourage more stores to opt out – a crucial part of DRS administrator Circularity Scotland’s promise to lower the cost burden of running the scheme for drinks producers. Experts warned this will not be possible unless a significant number of stores receive exemptions.

However, stores told RN they were adopting a ‘wait and see’ approach – neither registering to become return points or applying for exemptions.

They blamed a lack of clarity over terms such as collection and payment frequency, and uncertainty over whether the scheme will be introduced at all this year, fuelled by an upcoming judicial review of the policy and all three SNP leadership candidates stating they would change the scheme.

One industry insider told RN: “Retailers still haven’t decided whether they are going to operate a reverse vending machine or take back containers manually. The government do want

fewer return points, but at this stage it seems the softening of the exemptions process isn’t having the desired effect.”

One reverse vending machine provider, speaking on condition of anonymity, said they were expecting a “last-minute rush” around, or even after, the 16 August start date.

They said: “All the machine operators will be holding extra units in expectation many independents will only make a decision when they understand what the impact will be in their shop’s local area.”

The exemptions applications process opened in April 2020, and in Novem-

ber, the Scottish government announced a new return-point-mapping and exemption-support service to help retailers identify alternative return points, and removed the requirement to share commercially sensitive information.

The Fed’s national deputy vice-president, Mo Razzaq, said: “The number of retailers who are seeing their applications for exemptions rejected is truly shocking. “It looks as though our members will now be forced to be a return point and pay huge costs to buy a machine or fit out their stores for a mass of empty bottles and cans at a time when they can least afford it.”

Local shops fear legislation ‘deluge’

Local shops in Scotland have warned that the Scottish government’s deluge of policy proposals impacting retail could force many to close.

Speaking to the BBC and in the Fed’s formal submission to the Scottish government over proposed alcohol-display bans, leading Scottish Fed member and Levenhall

Village Store owner Ferhan Ashiq said a deluge of legislation has left many feeling like “public enemy number one” of the Scottish government.

Alongside confirmed upcoming policies such as DRS and further ‘junk food’ promotions bans, the Scottish government is considering a ‘tobaccostyle’ alcohol-display

ban, increasing alcohol minimum-unit pricing and banning disposable vape devices.

Discussing the potential alcohol-display ban, Ashiq said: “How realistic is all this in a small shop with little space for stock? Sometimes, I feel like handing my keys to politicians and asking them to try run-

ning my shop.”

Though a decision on the policy is yet to be decided, shop equipment providers are already taking steps to prepare for an alcohol-display ban.

Trishan Satyadheva, managing director of Nabco UK, told RN: “We already have equipment lined up to provide to supermarkets.”

Trade groups including the Fed have called on the government to introduce a new ‘Help to Green’ grant scheme for small businesses.

The proposal, sent to chancellor Jeremy Hunt last week, would give £5,000 vouchers to small firms for measures such as heat pumps, insulation, solar panels and other measures that help to cut energy bills and emissions.

The scheme would also include free ‘energy audits’ to help shops and small businesses identify potential energy savings where they can use the vouchers.

Other signatories to the proposal included the Federation of Small Businesses, the ACS, the British Independent Retailers Association and the British Retail Consortium.

1,500-plus shops use NewsPro

More than 1,500 stores now have their magazines managed by the Fed’s NewsPro service, the trade group has announced.

The service, which is adding an average of 167 member stores per year, claims to achieve an average £500 cashflow saving per store, with a further £100 cost reduction through its regular standing order reviews.

NewsPro provides stores with a fixed range of magazines covering the most important categories alongside exclusive promotions.

RN understands a new pre-ordering tool for collectables is set to be added to the service.

Lorna

Slater, minister for green skills, circular economy and biodiversity, sought to reassure stakeholders DRS will launch as planned

YOUR VIEWS

Mail subs deal is good news for HND

In 2013, the Proactive HND Group was formed, made up of 29 companies across the south of England.

There were many HND initiatives we wanted to offer the publishers to improve the industry with the aim of securing variable terms.

Ultimately, our efforts went nowhere – terms were long established and they were not about to upset the status quo.

Ten years on, and Tuesday 28 February had been a pretty unremarkable day at Jackie’s News.

I’d been working on some routing efficiencies that, after 16 years in the trade, was actually still quite interesting.

Then, quietly and very unassumingly, an email appeared at 17:11.

It was from the Mail, offering an additional 0.7p for every delivered copy of the Daily Mail or Mail on Sunday, in return from some anonymised

HND data. It also offered an enhanced additional payment of 2p for every delivered HND subscription copy to registered subscribers to its HND platform.

For HND agents, who use the PaperRound software and are on The Mail’s HND subscription platform, this is variable terms in all but name.

Simply put, this is a stunning move from The Mail that recognises the importance of HND.

It is offering all this while also enabling HND agents to set their required delivery charge and then use this price to sign up customers from in

DRS UNCERTAINTY IS BAD FOR BUSINESS AND THE ENVIRONMENT

In five months’ time, the deposit return scheme is set to launch in Scotland. Or is it?

Of late, this scheme has been beset by twists and turns.

Minister Lorna Slater insists DRS will go ahead as planned on 16 August as delaying this further will be a “kick in the teeth” for businesses.

However, Scottish Conservatives are calling for an independent inquiry into the

VIEW FROM THE COUNTER with Dipak and Jayshree Shah

papers adverts.

These adverts even provide a telephone number, which is imperative for the demographic who orders a paper.

If HND is going to be a big part of your business in the coming years and you’re not on PaperRound or signed up to The Mail subscription platform, I would urge you to seriously consider it – it’s a no-brainer.

So, thanks are due to the Mail’s head of circulation, Shaun Jones, and its senior national account manager, Andy Law, who are always open to conversation and are keen to help those who excel in HND.

We normally stock all the new products when they come through, but launches seem to have slowed down quite a lot. We’re not sure if it’s because of the cost-of-living squeeze, but it does seem to be having affect in a lot of categories. We normally get a couple of takers on new partworks, but the recent ones haven’t had any traction. People are looking at the costs – especially at £10.99 per part now on many issues – and thinking twice before they take the plunge on a new series.

On newspapers as well, price rises are certainly more linked than usual, with cancellations or reducing the number of days they take a paper.

We have a Wilko close by, so the announcement it had stopped offering lottery tickets was certainly a bit of good news for us. We understand Allwyn is taking over Camelot, and we’re hoping we’ll get a few more visits from reps as a result of the changeover.

WHAT WE’VE LEARNED THIS WEEK

Price-marked packs (PMPs) are a big part of our store – 50% of our lines are price-marked because the value message is really important. The £1 PMP has gone on confectionery and crisps, and we’re seeing some jump from there to £1.59. As the prices move, we’re seeing customer demand move with it, with those holding the lowest prices picking up greater sales.

Yes

scheme, claiming key questions have never been answered, while all three candidates to replace Nicola Sturgeon as SNP leader have said they will delay the scheme or overhaul it.

Many retailers in Scotland have already invested in changes to the layout and fittings in their shops to accommodate the bottles and cans to be returned.

Others have taken the plunge and invested in leased reverse vend-

ing machines to handle the empties. Amid soaring costs and the cost-ofliving crisis, this is more than likely to be with money they can ill-afford.

Not surprisingly, they are angry and frustrated that this troubled scheme could be delayed again. And the Fed is, too.

That’s why we are repeating calls for the Scottish government to think carefully before potentially kicking DRS into the long grass.

If there is another delay,

we have told the government that retailers who have lost out financially should be compensated. The last thing that anyone needs is yet more uncertainty.

Unlike others, the Fed has always been supportive of the introduction of DRS as our members want to see more high-quality recycled plastic, metal and glass around, and fewer drinks bottles and cans being discarded as litter on our beaches and streets.

33% No 67%

Guy Day Jackie’s News Ltd, Kent

Jason Birks, national president, the Fed

Map showing areas covered by the Proactive HND Group

PRICEWATCH

Profit checker Impulse ice cream

Behind the numbers

Handheld ice cream sales are a crucial piece of the spring-and-summer sales puzzle for many retailers. Where are the key opportunities for retailers to drive profits as the weather warms? Cadbury Flake 99 is a key opportunity. Seventy-four per cent charge up to £2.29, compared with 26% sticking to the most-common

(and lowest) price of £1.20. This is also the largest difference between the highest and mostcommon prices this week. Seventy-nine per cent are also charging as high as £2.75 for the Oreo Ice Cream Sandwich, with 20% selling it at the most-common price of £1.79.

Magnum lines are more price-sensitive,

despite having the highest most-common prices out of all lines examined. Sixty per cent charge the most-common price of £2 for Magnum Classic, with 57% and 49% doing the same for White Chocolate. The Almond variety has a higher price than Classic or White, at £2.89 compared with £2.54.

TOP PRODUCTS

We sell quite a few handheld ice creams. Magnums are £2.10, and lower-priced options, such as Feast, are between £1 and £1.40. There’s also the Magnum vegan variety and some vegan lines from Swedish Glace, so there’s variety for everybody. Sales aren’t the same all year round. In the winter, we put puddings, such as apple pies, sticky toffee puddings and Viennetta, in the freezer, although we keep some handheld ice creams all year. We very rarely stock multipacks – it’s either that impulse mission or buying a tub format for later consumption.

We have a dedicated Wall’s freezer for impulse lines, and they tick over all year round. Peak times are spring and summer, but people have a sweet tooth around here, so it’s a constant trickle through. Customers are used to the freezer being here. We purchase from Rizza’s, which has offers on all the time. We’re limited in space, but it’s a case of making an order once a week in the warmer months, rather than once a fortnight. We always give new lines a shot on promotion. The latest one we’ve tried is the new Twister Fruit Zingerrr.

51.64% of transactions are processed at £2

RetailDataPartnershipisaspecialistdataandEPoS suppliercommittedtoservingtheindependentretail sector.Tofindouthowtheycanhelpyouimproveyour business,call01780480562

Must-stock products

Price distribution chart

FOR EXISTING ADULT SMOKERS & VAPERS ONLY.

This product contains nicotine. 18+ only. Not a smoking cessation product. © Fontem 2023.

PRODUCT NEWS

New look and flavour for Quavers

PepsiCo has launched a new look and BBQ Sauce flavour for its Walkers Quavers brand. The supplier said the new flavour and pack design aims to reengage and appeal to a wider range of shoppers. BBQ sauce is available from Asda now, followed by Tesco and Morrisons in April, and then to wholesale and convenience from May onwards. It will be supported by outdoor, social media and in-store PoS.

RRP £1.25 price-marked pack (54g)

Carbonate offering from Slush Puppie

Slush Puppie has entered the flavoured carbonates category with its new Fizzie range, available in Blue Raspberrie and Strawberrie varieties. It comes in 2l and 500ml price-marked bottles, with an RRP of £1.49 and £1, respectively, and is HFSS-compliant. The 2l bottle is also available in a standard format. The launch will be supported by a campaign, with in-store activations and social media advertising.

RRP £1-£1.49

Swizzels drives mallows sales

Swizzels is set to launch a campaign in April to drive sales of its Marvellous Mallows range. The #Marvellousormadness social media campaign will run for eight weeks from 1 April, and will encourage consumers to share the ‘weird and wonderful’ ways in which they enjoy eating mallows in return for prizes. It comes as the mallows category has grown in convenience by 22.3% in the past year.

Campaign spans social media

RAISING THE BAR ON FLAVOUR

Coca-Cola continues collab with Kate Moss

‘Win what you love’ is the new campaign by Coca-Cola European Partners in collaboration with Kate Moss. Until 2 May, consumers can scan QR codes on promotional packs of Diet Coke and Diet Coke No Caffeine for the chance to win prizes. Prizes include a trip to one of Moss’ favourite countryside retreats, cosmetic products from her Cosmoss wellness brand, and retail vouchers. Campaign spans TV, outdoor, social media, digital, influencer activity and in-store PoS

Glastonbury promo from Brothers Cider

To celebrate Brothers Festival Apple cider being the official cider of Glastonbury Festival, the brand has launched a promotion with more than a million prizes up for grabs, including 10 pairs of tickets to the festival. Running until 31 May, the campaign aims to drive excitement among consumers through the purchase of promotional packs, which include Festival Apple, Toffee Apple and Cherry Bakewell varieties. Campaign spans on-pack

New cookie concept from Rich’s

Baked by Rich’s has launched a new range of cookies created in partnership with Nestlé Professional. The cookies are available to retailers in a thawand-serve format, available in Quality Street Matchmakers Zingy Orange, Aero Bubbles Peppermint and Little Rolo varieties. Staff need to let the product thaw overnight before displaying the next day. The cookies have a shelf life of five days once defrosted.

RRP £2.29 (four-pack)

SPECIALIST CHOICE

Zero Sugar from Lucozade Sport

by Priyanka Jethwa priyanka.jethwa@newtrade.co.uk

Suntory Beverage & Food

Vegan treat for dogs from Peamutt

Peamutt Butter is a vegan treat for dogs that contains protein, vitamin B, niacin and vitamin E.

RRP £2.50

Contact peamutt.co.uk

GB&I has launched a new range under its Lucozade Sport brand, Zero Sugar.

The launch is a move from Lucozade Sport into the low- and no-sugar segment, which is currently growing at 22.3% yearon-year – and a key trend for today’s soft drinks consumers.

Meanwhile, Lucozade Zero has grown by 58.5% in sales, with the low- and no-sugar segment accounting for almost 48.3% of total soft drinks sales.

Available in Orange & Peach and Raspberry & Passion Fruit flavours, the supplier said Lucozade Sport Zero Sugar is designed specifically for

Jimmy’s launches Caramel Iced Coffee

Jimmy’s has launched Caramel Iced Coffee designed as a lunchtime pickme-up or treat to grab on the go.

RRP £2

Contact jimmysicedcoffee.com

Fourpure adds two new beers to range

Fourpure has added Pacific Pale Ale and London Haze to its beer range, available in 330ml canned formats.

RRP £2.60

Contact fourpure.com

those taking part in sporting activities. It contains sodium and vitamin B3 to help reduce tiredness, and is available in 500ml bottles and 4x500ml multipack formats.

The drink contains four calories per serving, and is designed to appeal to consumers who don’t currently buy into the Lucozade Sport brand, be -

ing HFSS-compliant.

In addition, the supplier explained that sportsdrinks shoppers tend to be brand loyal, with the market in growth by 29.3% year on year.

The launch of Lucozade Sport Zero Sugar will be supported by a campaign from next month, including digital and social media advertising.

Heineken unveils major rebrand for Strongbow cider

Heineken has unveiled a rebrand for its Strongbow cider brand, coinciding with the launch of a Tropical variety.

The supplier said the redesign, which for the first time since 1960 won’t feature a black and gold palette, aims to tap into a

new shopper demographic and generation, with bold cues and colours to give it better standout on shelf.

It will be supported by a £20m marketing campaign, which commences next month.

Rachel Holms, cider brand director at Heinek-

en UK, said Strongbow remains the market leader in the cider category. “It’s a new design that not only resonates and engages our loyal consumer base, but is something that also appeals to new cider and Strongbow drinkers.”

Holms added the launch of the Tropical variety, which has mango and pineapple flavours, will further encourage new drinkers into the cider category, bringing in incremental sales.

It will be available in 500ml bottles (RRP £2.50) and 4x440ml (RRP £6.75) can multipacks, with an ABV of 4%.

The range is also free of artificial flavours, sweeteners and colours.

STORE ADVICE

Easy changes, big impact

Retailers reveal changes they’ve made that cost them nothing, but collectively delivered more than £10,000 in savings and sales

Retailers should always be on the lookout for new ways to increase sales and margins or to cut costs where they can, but many ideas come with a price tag attached.

A n investment in new stock, new equipment, new store frontage or new promotion tactics may bring long-term gains in revenue, but they also require up-front capital, which many retailers don’t necessarily have or want to risk.

There are also things that can be done that will cost a retailer nothing. Small changes can bring major, long-term benefits, and Colin Savage, from Baxters Newsagents in Milngavie, East Dunbar-

tonshire, recommends keeping a notepad handy to write down ideas as they come.

“We’ve all got half a dozen ideas in our minds, but we forget them,” he says. “Write them down and, as soon as it’s quiet, look at them, then act on them.”

Sw itching things up in the product range department can have a big impact. Analysing where products, baskets and displays are located or considering the customer journey from another angle can provide insights that enable you to make changes.

This takes time and energy, but it doesn’t charge your bank account. By assessing and then changing the

layout of certain products, retailers can change the customer journey to ensure people see more of what they want them to see, which can result in bigger basket spend.

If you can encourage just an extra 50p spend from every customer journey, it can bring in thousands of extra revenue.

A nything that can be done to reduce electricity use will have a n impact . While many methods require capital outlay, operational changes can have a big effect with minor cost

Write ideas in your diary, then act on them

COLIN SAVAGE

To see what other stores are doing, go to betterRetailing. com/advice »

STORE ADVICE

Diversify with sale or return

Aman Uppal has widened his product range near the counter with products from DSL Group. He partnered with them in September 2022 and now receives a range of different products that change every month, have a long shelf life and are sale or return, meaning if he’s not able to sell them, he doesn’t have to pay for them.

“Sale or return is massive and you get a bit of credit with them as well,” he says. “You get all sorts of products – pet blankets and toys, JCB-branded tools, winter essentials, Christmas LED candles and DIY hardware products. It’s a bit like the central aisle in Aldi, and disrupts the customer journey. People are now starting to get used to looking at what’s on the stands.”

Since introducing the products, Uppal has achieved additional sales equivalent to £3,000 extra going through the till each year.

Team up to reduce energy bills

With energy bills so high, Ricky Dougall, from Nisa Millennium View in Coventry, looked into solar panels, but didn’t have the roof space to install them. So, after asking other businesses for energy-bill advice, he joined a consortium of 120 companies that buy their energy together as part of a larger basket.

“I was speaking to people and they told me they were part of a group and asked whether I’d like to join. Rather than paying 50p a unit, we’re buying energy together with these other companies and we’re paying 25p a unit instead,” he says. “It’s what big companies do, because they buy so much, they get bulk rates.”

Even with a commission payment paid by the consortium, the saving is equivalent to £19,473 per year, based on the ACS’s average convenience store energy consumption figures.

Better target your leaflets

For Colin Savage, from Baxters Newsagents in Milngavie, East Dunbartonshire, a book of vouchers for newspaper deliveries is guaranteed income for three months, with a year subscription to the Telegraph, for example, bringing in £1,248.

For many stores like Savage’s, leaflet drops are an existing cost, but by working with a company that can target the right doorsteps, he minimises cost and maximises impact.

“We’re offering 18 different runs for newspaper deliveries, but some of them were getting a bit small, so we need to target certain other areas with these leaflets. He comes with a map and we agree an area with a highlighter.

“Even if we get one customers from that leaflet drop, it pays for itself, but you’ll always get more down the line because you’re always reminding people you’re there,” he says. “Your target demographic can be forgetful.”

Reduce freezer use

The biggest cost increase at Varsha Pankhania’s Nisa Local store in Paddington, central London, is in electricity.

She has little room for experimentation with layout, so her focus is on increased energy efficiency.

Her chillers are built in with a condenser on the roof, so they can’t be switched off at night. “We’ve had to cut back on usage,” she says. “We’ve got non-perishable chillers for products such as wine, so we thought there was no need to have them at 4°C – we’ll have them at 8°C instead.

“We’ve also had all our meters changed to smart meters, so we’re never behind on bills, which helps manage cash flow.”

Meanwhile, at her family’s wine shop down the street, some chillers with take-home products like champagne have been turned off. Having made these changes six weeks ago, she plans to check the results every three months to make sure sales aren’t affected. l

COLUMNIST

Andrew Thornton

Daily appreciation

If you are a regular reader of my column, you’ll know how important habits are in delivering a company’s purpose – this is the step many organisations miss.

One of the most powerful habits I know is appreciation. Due to the brain’s negative bias, we’re always on the alert for negative comments, so it’s refreshing to hear positive remarks.

In fact, in many workplaces, it’s negative ‘feedback’ that tends to dominate – it is extraordinary how little appreciation most people receive in their jobs. Think of appraisals or annual reviews. Traditionally, a large part of the time is spent on ‘development issues’ rather than on celebrating what is going well.

I have learned to spend my whole day looking for opportunities to appreciate people, be they colleagues, family, friends, a waiter or someone serving me in a shop, or the gas man who came out late on a freezing winter

evening. When I owned Thornton’s Budgens, myself and my colleagues in our leadership team would go on specific store walks looking for things to appreciate –rather than focus on what needs to change or is ‘wrong’.

Until it feels natural, leave yourself reminders – maybe a Post-it note on your laptop or add ‘give appreciations’ as a daily reminder on your phone. When you’re sharing appreciation with someone, make sure you do it descriptively.

I learned this concept from parenting coach Noël Janis-Norton. It’s about delivering specific and detailed compliments. It isn’t enough to say: “Bob, you’re amazing.”

Whether he’s your five-year-old son, your partner or your store team, Bob has probably heard enough negative feedback from you to render that claim dubious. You can start to shift that negative bias in the following ways. To the five-year-old, you could

* Run an appreciation circle

+ THIS IS A great exercise you can do in a team meeting or any other gathering, such as an away day or training workshop. Sitting in a circle, get one person to volunteer. The person to their left then shares with them and the group – in a sentence or two – one thing that they appreciate about that volunteer. You then go clockwise, with each person in the group telling the volunteer what they appreciate about them. When the circle is complete, move clockwise to the next person – and repeat the process. Given that people often find it hard to hear or absorb appreciation, when we do this exercise, we record each round on a WhatsApp message and send it to the person being appreciated so they can listen to it later. It’s amazing how powerful and healing this process can be.

say: “Bob, I love that drawing you’ve done and the way you’ve used so many different colours. I can really imagine I’m on that beach you’ve drawn.”

To your partner, you might say: “Bob, I really appreciated that dinner you cooked for my birthday. E ven though there was a lot of tricky stuff going on between us and you were unwell, you produced a really delicious meal and I felt really celebrated.”

To your store team, you might say: “Bob, I appreciated how, despite all the pressure you’re under w ith late deliveries this week, you were prepared to give me your time when I said I needed your help with a marketing issue.”

Remember to appreciate yourself descriptively, too, as this will help to neutralise the voice of that inner critic we all have.

A lso, make sure you listen when other people appreciate you and, if necessary, repeat it back to yourself afterwards. If you think that all this talking to yourself is a bit crazy, just be aware that inside your mind you spend a huge amount of time talking to yourself, and studies have shown most of that talk is negative. It’s your job to counter this.

I encourage you to start this today by committing to give three descriptive appreciations every day for the next month.

Andrew Thornton is the former owner of Thornton’s Budgens, founder of Heart in Business and co-author of ‘Putting the Heart Back into Business’, available for purchase now from heartinbusiness.org/book

Positive feedback for your team – and yourself – helps to create a nurturing and supportive workplace

I have learned to spend my whole day looking for opportunities to appreciate people

Thornton’s Budgens team leaders Kate and Surma were praised for helping the store achieve industry recognition

MAGAZINE ABC S

The top 100 magazines

RN analysis reveals the top-selling titles in stores, according to the latest ABC figures, helping you to identify the trends and titles putting more money in retailers’ tills

UNDERSTANDING THE RESULTS

The past year was a bounce-back year for many magazines, as shown by the fact that more than one in eight of the top-100 bestselling titles in shops actually sold more copies at the counter than the year before.

There are many potential reasons for this bounce-back – the reopening of sales points such as craft shops or garden centres, lockdown magazine subscribers cancelling orders and returning to shop purchasing, and some titles increasing their relevance as events returned.

The category balance of the top 100 also shifted in 2022. The number of children’s mags in the top 100 fell by nearly 30%, while the number of home and gardening titles cracking the top 100 rose by more than a third.

Data from Smiths News on the most ranged magazines in independent stores compared with newsstand sales suggest many independent stores might not be stocking

titles selling well in other outlet types. For instance, Vogue is in the top 20 magazines by shop sales per edition, but doesn’t even make the 50 most commonly stocked titles in independent shops. Similarly, top-100 title FourFourTwo only just scraped into the top-300 most commonly found magazines in independent stores.

Of course, the top-100 ABC-certified titles by newstand sales doesn’t tell the whole story, with some popular titles such as puzzle magazines opting not to audit or release their sales figures.

WHAT THE PUBLISHERS HAVE TO SAY

While labelling itself as a “digital powerhouse”, even Future focused on shop sales when discussing results.

The publisher celebrated its titles representing 23.2% of all copies sold at the counter, up 1.2% year on year.

It singled out The Week, Period Liv-

ing, Homes & Gardens and Country Homes & Interiors as all achieving sales growth and outperforming the averages in their segments. Chief operating officer Claire Blunt said the figures “prove how much Future is committed to print”

Bauer celebrated still being “the UK’s biggest-selling magazine publisher ”, representing a third of total UK sales, including subscriptions and digital editions. It heralded that 15 of its publications are the leaders in their segments by sales volumes, including TV Choice, Take a Break, Motorcycle News, Empire, Mojo and Country Walking. Chris Duncan, Bauer Media’s CEO of UK Publishing, said: “We’ve seen newsstand sales perform solidly in most areas.”

At Immediate Media, the company said copy sales dropped below two million with a 10.5% annual drop, but claimed it had retained its leader position “in the majority of categories” it operates in. l »

We’ve seen newsstand sales perform solidly in most areas

MAGAZINE ABC S

PETCARE

Purrfect opportunities

Pet ownership is an all-time high, but what are retailers focusing on?

For many convenience store owners, petcare is something they stock, but not many are investing heavily. However, with 62% of UK households now owning a pet, is now the time to review your range?

The retailers RN spoke to largely focus on dog and cat food – however, stocking a selection of products for other pets, like rabbits, guinea pigs and fish, can benefit overall sales.

Pavan Duley, of Best-one Dorden in Tamworth, Staffordshire, says stocking the latter is imperative. “If you have the customer base, it will sell,” he says. “We stock anything and everything we can get from Bestway Wholesale – we’d stock more if we had the space, too.”

According to Samantha Crossley, marketing director at Lily’s Kitchen, nearly 8% of all pet food sales in the

UK have come from convenience stores, which accounts to around £201.9m of pet food sales, highlighting the opportunity for stores.

To help sales, find a balance between wet and dry food for cats and dogs, as every shopper will have a preference. Mike Nicholls, of Costcutter Dringhouses in York, noted this and has built his range around this accordingly.

He says: “We have quite a big range, which includes wet and dried food for both dogs and cats. We then have different brands for customers to choose from as they want a brand they know and trust, especially when it comes to their pets.”

Mars Petcare’s category & market activation director, Zoe Taphouse, echoes this and adds: “Our latest pet ownership study demonstrates the rise in how close owners feel they

HOW CAN YOU DRIVE PETCARE SALES?

Mike Nicholls Costcutter Dringhouse, York

Stock a wide variety, as long as space allows. If it’s a product you haven’t tried before, try it anyway because it might just become one of your bestselling lines. Also, listen to customers and know your demographic. We have a lot of pet owners, so petcare is a strong category for us.

Make sure you cater to everyone. Have the basic range in store, but make sure it’s a wide range so there’s something for everyone. People have their own preferences, but for food, they usually go for brands they know and trust. However, for things such as cat litter, have an own-label option.

People want quality for their pets

are to their pets, with 27% of cat and dog owners recognising their cat or dog as a family member.”

There are three trends to take note of when reviewing your range: value, premiumisation and health.

Scott Graham, of McLeish’s in Inverurie, Aberdeenshire, says price-marked packs (PMPs) are important to his petcare range. “Standard packs on petfood and petcare in general have skyrocketed, so we go heavy on PMPs,” he says. “The PMPs aren’t exactly cheap, either, but they are still selling.”

D uley says he’s noticed sales of previous bestselling petcare lines have fallen following price increases. “We don’t sell a lot of Pedigree products anymore and customers aren’t as brand loyal as they once

Tamara Birch finds out

Pavan Daley

Best-one Dordon, Tamworth, Staffordshire

ered about brands when it comes to pet accessories, such as cat litter, dog treats and rabbit hay.

Shoppers take pride in what they feed their pets, with Crossley saying: “Pet food is more than sustenance and simply just feeding your pet.

It’s about feeding them something good that offers proper nutrition with added health benefits. The natural pet food category has been growing more than three times faster than the total petcare category for the past four years.”

hile health is important to some pet owners, they are also inclined to offer treats. These also include treats for when an animal is being trained, as Duley says.

MOVING AWAY FROM PET FOOD

Nicholls adds that one of the reasons the category is massive in his store is

ALTERNATIVE PETCARE PRODUCTS TO CONSIDER

1. Animal treats

Pet lovers enjoy treating their pets, so having a selection of treats can boost spend. Also, make sure to include training treats as these are ideal for any customers with puppies and will likely drive repeat custom.

2. Animal treatments

On average, convenience stores are open later than multiples, and some treatments are purchased as a distress one. Stocking a range of treatments, such as flea treatments, can help calm a worried pet owner, creating shopper loyalty.

3. Pet toys

Pet toys are a strong way of boosting spend. Pet owners want their animals to have everything and will often treat them to new toys, etc. These don’t need to take up shelf space, with many able to be displayed on clip strips.

4. Collars and pet accessories

Become a one-stop destination for pet owners by offering a range of collars, which can be applied to cats and dogs. Go one step further by offering a selection of aquarium pieces to include in fish tanks.

5. Beds

because he offers more than just pet food. The retailer stocks toys and other pet accessories, which has allowed him to capture the market.

“We have tennis balls and other animal toys,” he says. “It’s to help us capture the pet market. If someone has a pet, they’ll be attracted to them because they want to spoil them.”

Nicholls says being a dog owner himself allows him to put himself in his customers’ shoes. “We know that if we find something suitable for our dog, we’ll buy it – other pet owners are the same,” he says.

Meanwhile, pet accessories, such as dog-waste bags and cat litter, can help with distress purchases or boost spend as part of a top-up shop.

“We don’t have a large petcare range because we don’t have the demand for it,” says Melanie Ferrers, from East Budleigh Community Shop in Devon. “But we sell a lot of dog-waste bags. It’s a really good product for us to have.”

Cleaning products can also be a

If you have enough space in store, having a selection of beds can help drive spend, especially if shoppers are in buying pet food or their full shop.

strong contender for a petcare range.

Products such as Zoflora or Febreze have dedicated pet-odour solutions to help keep a customer’s home fresh.

“For store owners, any products that can deliver on fragrance is key,” says Cat Henstridge, resident vet at Zoflora. “With pets, accidents and messes are to be expected. Consumers need to be equipped with cleaning products that are safe and effective.”

Cleaning products is where value might play a strong role, especially as for some it’s not an essential. “It’s important retailers stock a wide range of pack sizes in the right stores, so it can fit into everyone’s budget,” Henstridge adds.

Items like these, including toys, don’t need to take up a large amount of space, but they are also likely to generate higher margins and added spend for store owners. l

If someone has a pet, they’ll be attracted to toys because they want to spoil them

PMPs

To price-mark or not to price-mark?

The debate around pricemarked packs (PMP) has been a longstanding one among retailers and one that has grown in seriousness amid the cost-of-living crisis.

With customers’ finances increasingly stretched, the pressure on retailers to offer and promote products at affordable prices is far higher than normal. But the cost-of-living crisis has also put significant pressure on stores.

The need to extract every penny of profit from every sale has meant that PMPs, which can limit options when it comes to margins, have fallen out of favour with some retailers, w ith even wholesalers expressing outrage at some of the price-marked product margins on offer

Tom Fender, development direc-

tor at The Wholesale Company (TWC), says: “The key challenge the sector faces is to balance being competitive with being sustainable, and that there needs to be a sufficient margin to achieve this without pushing the price too high. What we are finding is that independent retailers believe that the price-mark is the promotional tool to do that.”

IN FAVOUR OF PMPS

The benefits of PMP s relate to customer concerns around costs. When they can see that the price hasn’t been chosen by the store, then there are fewer fears that it has been artificially raised or could be purchased more cheaply elsewhere.

For many retailers, PMPs enable

Customers always prefer PMPs

RESEARCH FINDINGS FROM FWD AND TWC

80%

of retailers surveyed said their customers would still buy PMPs even if the price increased, indicating that the reassurance of the price - mark is more important than the price itself.

49%

of retailers s aid they would prefer the pack size to be reduced if it meant they could keep the same price, and 45% said their customers would be prepared to pay more for the same pack.

4 2%

of consumers said they would prefer to retain the same pack size and take a price increase. Just 23% wanted a pack-size reduction to maintain the same price.

4%

o f cases have seen the margin fall in the year to July 2022, and for almost a quarter (23%) of PMPs, the margin had risen to compensate for the increased costs of doing business.

them to compete with discounts from multiples, such as Asda Rewards and Tesco’s Clubcard.

A survey of 150 independent retailers by the Federation of Wholesale Distributors (FWD) and TWC found that 80% are stocking PMPs in most major categories and that 85% think that PMPs demonstrate good value for money.

“ The customers always prefer PMPs and you can build that customer confidence,” says Jey Sivapalan, whose 1 Stop Convenience (Go Local) in Derby stocks PMPs whenever they are available across any category.

“It builds customer loyalty and customer happiness, especially now when price is a key factor. We stock PMPs in groceries, soft drinks, alcohol – anything we carry is price-marked if we can get it.”

A s well as helping to drive customer footfall and loyalty, Sivapalan has also found that PMPs are good growers of overall basket spend, with the highly visible price

Charles Whitting finds out how retailers are generating sales, footfall and margins by stocking price-marked packs or avoiding them altogether

PMPs

RETAILER VIEWPOINT

Dhan Amin

PMPs don’t sustain the necessary margin for retailers. If you’re getting 13-15% margins on a PMP, that’s not even covering your electricity bills or overheads. So, you’re on the brink of closure before you know it. You might think you’re getting lots of customers coming in and you’re doing well, but you’re working for almost nothing. Retailers fear they’ll lose customers if they get rid of PMPs, but you’re not losing customers – you’re losing someone who hasn’t brought your store any extra value.

If you add 2p or 5p or 10p to your price, it’s not a lot, but it helps you make your margin, and most customers are spending that without even looking at it. People are more aware that things are going up everywhere nowadays.

If something is a pound more expensive I would go somewhere else, but what customers will you lose if it’s 20p more expensive?

working as an impulse promotion in its own right.

“Footfall is important, but growing basket spend is the key. Customers will end up buying more because they’ll be looking at the prices as they wander around the store,” adds Sivapalan.

“ They might come in to buy cigarettes and then they’ll turn around, see something promoted with price-marks and they’ll buy them as well. Sometimes, they’ll have come in without planning to buy anything – if they’ve come in for our services in the store – then they’ll still buy more.”

Imran Nasim, from Symington Stores in Kilmarnock, has seen a decline in the amount of PMPs

available in cash and carries as wholesalers look to give stores the opportunity to charge a bit more for their products. But as a retailer with low overheads, he stocks up on them whenever he can.

“Every store is different, but it’s worth it for me to stock PMPs because I haven’t got any staff wages to pay. If you’ve got staff, then I don’t think it’s worth it because they’ve got that extra cost, especially with the minimum wage going up again,” he says. “PMPs are perfect for me. I pick up what I can get and it always sells.”

For retailers concerned about shrinking margins on PMPs, the data from TWC and FW D would suggest these are finally improv-

ing, potentially making them a worthwhile addition to a store’s range because of their popularity with customers. Additionally, Sivapalan has advice for retailers concerned by margins.

“Any time there are PMPs on offer, I stock up and save money that way. If there’s a one-day offer, we’ll get as much as we can, particularly on alcohol. You can boost your margins even better that way.”

AVOIDING PMPS ENTIRELY

In contrast, Dhan Amin, of One Stop Stoke Aldermoor in Coventry, believes PMPs are almost completely unnecessary and hurt retailers’ margins far too much to make up for any additional customer footfall

One Stop Stoke Aldermoor, Coventry

I stock up any time there are PMPs on offer

PMPs

they generate. His store has very few of them on the shelves, with the only exception made on occasion for own-brand products. He explains that while PMPs were introduced to help convenience stores compete with multiples on pricing, in the current climate where prices are going up everywhere, that competition is no longer relevant.

“We’re not trying to compete with supermarkets,” he says. “We’re a convenience store. In this day and age, everything is expensive wherever you go – convenience store or supermarket. I don’t think people are that worried about price as a result. Customers are looking after every penny, but so are retailers. It’s a fine balance and you have to be sensitive to the times, but PMPs aren’t going to help you survive.

SUPPLIER ADVICE

l “Alongside offering PMPs, tiering is essential to highlight value propositions. Blocking products in good and better ordering from left to right makes the category easier and quicker to shop while offering obvious trade -up options from value to premium products,” says Ross Davison, head of convenience at Kepak.

l “Promotions play a key role in maximising the PMP opportunity,” says Sunny Mirpuri, director for wholesale and convenience at Budweiser Group. “Sixty per cent of consumers believe that the PMPs they see on shelves are a special promotion, something that will become even more essential as the cost-of-living places pressure on consumers.”

l “Currently, 66.9% of sales in the convenience channel now go through as PMPs, an increase from 66% in 2021,” says Ben Parker, retail commercial director at Britvic. “Across our range, the profit- on-return percentage will be maintained so that as the price-marked packs increase in price, the cash margin grows.”

l “Think about block displays within the shopper eyeline on fixtures. Consumers will only spend a limited time shopping the fixture,” says Andy Walvin, UK sales manager at Kervan Gida UK Ltd. “Consider using floor display units and clip strips, as this will free up space on the fixture.”

“Retailers have to get away from PMPs and wean their customers off it. If you got rid of them completely, I don’t think the younger generation would notice. The older customers will notice it and they might complain, but they’re still going to be loyal to your store. Younger customers will go down the road if you haven’t got the right product rather than the right price.

“Why would you stock Heinz baked beans with a PMP when you know you can get a better margin with a non-PMP and then offer Happy Shopper baked beans, which are cheaper, for people who want to buy less-expensive products?”

USING PMPS SELECTIVELY

While some retailers will lean heavily into PMPs and others will avoid them entirely, there are others who have found them to be a useful footfall driver and basket spend grower when used selectively within certain categories.

For example, focusing on pricemarked confectionery can be a good driver of impulse sales from schoolchildren who may be coming into the store with pocket money and are, therefore, looking for easily priced options close to the till.

Harj Dhasee, from the Village Store in Mickleton, Gloucestershire, generally avoids PMPs citing poor margins, but when a good margin is offered, then he gets fully behind it.

“ There’s a sales uplift on PMPs, but if there’s no margin, it’s not worth it,” he says. “Lucozade is selling Lucozade Alert PMP bottles that retail for £1 and offer a 40% margin. That’s a product we’ll support and will continue to support. We’re really pushing it at the moment, with two big bins at the front of the store.” l

Opportunity of the week

BBQ: FIRE, FOOD & OUTDOOR LIVING

This outdoor cooking title has gone from strength to strength since launching during the pandemic. RN grills editor Rupert Bates on why it deserves a spot in your store

GUEST COLUMNIST

A MAG THAT’S SURE TO SCORE WITH FOOTBALL FANS

What’s the idea behind the magazine?

BBQ: Fire, Food & Outdoor Living was launched as a quarterly print publication in 2020, during the first lockdown, recognising that, despite plenty of food and cooking media in the marketplace, there was nothing that fed the B2C and B2B sectors that focused on barbecue food and outdoor dining and entertaining.

We are delighted with the success of the magazine, which celebrates outdoor living in its widest sense – not just cooking on grills, wood-fired ovens and firepits, but also the wider benefits of communal entertainment outdoors. Eat well, live well; light a fire and start a party.

Who’s the target audience?

The magazine is for beginners, enthusiasts and pitmasters alike. It is packed with inspiration, educa-

tion and entertainment, with recipes and cooking tips mixed with features on personalities, products and places.

It is not just about cooking. It also provides ideas on how to create great outdoor spaces for dining and entertaining.

What coverage have you got planned for this year? Forthcoming features include wedding and party venues, as more people look for an immersive outdoor dining experience.

We will also feature some of the brightest young live-fire chefs and plenty of recipe ideas, together with great drinks to pair with food. There will also be interviews with leading personalities from the world of entertainment, sport and beyond – all sharing their passion for outdoor cooking.

We’ll also head overseas to look at live-fire cooking cultures around the world.

How important are independent retailers to you? Independent retailers are key to our distribution strategy.

We are still relatively new to the market and are looking to extend the reach and brand profile of our magazine, sitting comfortably within not just the food-and-drink sector, but home, leisure and lifestyle, too.

BBQ Fire, Food & Outdoor Living is a genuine ‘all-rounder’ offering something for everybody.

Why should independent stores stock it? Our audience aligns exceptionally well with independent stores and the footfall and audiences they attract. Independent retailers are trusted and embedded in their communities – the ideal showcase for our publication, which also looks to support local supply chains and producers in terms of its coverage.

We set up Mundial as a one-off print project for the 2014 World Cup in Brazil. We wanted to create something that celebrated the elements of the game we loved, and pulled together a good crew of like-minded people to do that.

We printed 2014 copies and sold them out immediately. People kept asking when the next issue was going to be printed, and we thought: “Well, we better carry on.”

The general readership and interest in football titles has grown because everything is more accessible.

That’s so good for inclusivity and accessibility to the game, but it also means the market is saturated.

In terms of content, Mundial talks to people about football in the same way they talk to their friends. Our co-founder, Seb, says “the match often gets in the way”, and that we love football for all the stuff around the 90 minutes.

Food, travel, culture, clothes – we think that’s as important as who is in the frame for the Ballon d’Or.

Going direct to readers on the newsstands is where the superfans are. These are the people who subscribe, buy the T-shirt and love what we do, but we want more of those people.

We want to be the biggest football magazine in the world, and if we can take steps towards that by making people pick up the product on the newsstand and fall in love with it, then that’s what we’ll do.

Daniel Sandison, editor, Mundial

Rupert Bates Editor, BBQ: Fire, Food & Outdoor Living

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Frequency irregular

Price stickers 90p, starter pack £4.99

Distributor Panini Display with Super Mario Trading Cards Barcode N/A

SPECIALIST CHOICE

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On sale 16 March

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Price £12.99

Distributor Marketforce Display with Military History, Military Trucks Barcode 9772535818009

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Frequency bimonthly Price £9.50

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Frequency monthly

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Distributor Marketforce Display with Busy Time, Fun to Learn Peppa Pig Barcode 9772399747927

THE IDLER

What is it?

It’s a magazine dedicated to all forms of UK culture, from fashion to current affairs. It’s content features a variety of interviews and longer-form essays.

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On sale 16 March

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Distributor Marketforce Display with Paw Patrol, Disney Stars Barcode 9772732571936

We are based in a fairly affluent area of London, with a number of professionals working nearby. Its main readership is males in their 30s.

Bestsellers Sport

On sale 17 March

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Distributor Frontline Display with Cycling, Cyclist Barcode 9770954869978

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Partworks and collectables

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