Bestway MD on Bargain Booze Rescue Plan ● ‘We’Ll Get You on an Even Keel,’ Says Martin Race ● Company to Encourage Retailers to Widen Category Mix Page 4 & 24 »
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A CTN for the city My mags, sweets and parcels keep Canary Wharf going STORE LOOKBOOK Page 6 » RETAIL NEWS THAT MATTERS ● £2.50 ● 13.04.2018 EXCLUSIVE Bestway MD on Bargain Booze rescue plan ● ‘We’ll get you on an even keel,’ says Martin Race ● Company to encourage retailers to widen category mix Page 4 & 24 » TOBACCO OMBUDSMAN SUPPLY CHAIN App sees Retailer’s ‘Newstrade reports of contract could go illicit cigs complaint under’ says rocket upheld NFRN Imperial’s new tech Investigator backs Federation files leads the way on postmaster in fight submission to regulator beating counterfeit against photocopy warning of distributor traders Page 4 » hire firm Page 18 » duopoly Page 11 » 2 13 April 2018 RN CONTENTS Shaping the future NEXT WEEK » of independent retail since 1889 Consolidation: mistakes to avoid the inside story as you launch your 12 summer ice cream range Page 27 Editor Features editor News editor Chris Rolfe Tom Gockelen-Kozlowski Helena Drakakis @ChrisRolfeRN @TomGK_RN 020 7689 3357 020 7689 3362 020 7689 3361 Reporter Reporter Alex Yau Priyanka Jethwa @AlexYau_RN @priyanka_RN 020 7689 3358 020 7689 3355 Head of design Anne-Claire Pickard 020 7689 3391 “Bestway has the buying Editor in chief Account manager Marketing executive Louise Banham Jon Melson Michael Sharp power, scale and logistical 020 7689 3353 020 7689 3372 020 7689 3356 Designer Sales executives Financial controller expertise to restore a stable Emma Langschied Khi Johnson Parin Gohil 020 7689 3380 020 7689 3366 020 7689 3375 supply to these businesses” Production Joe Waxman Finance executive coordinator 020 7689 3363 Abi Sylvane Martin Race p5 Alex Garton Sales support 0207 689 3383 020 7689 3368 executive Finance administrator Account directors Michela Marino Anubhuti Shah George McCracken 020 7689 3382 0207 689 3397 020 7689 3364 Marketing manager Managing director HEADLINES OPINION Chris Carnevale Tom Mulready Nick Shanagher 020 7689 3389 020 7689 3352 07966 530 001 4 BREAKING NEWS 18 YOUR NEWS App boosts illicit trade reporting Ombudsman upholds photocopier contract complaint If you do not receive your copy of RN please contact Michael Sharp 6 STORE LOOKBOOK on 020 7689 3356 or email [email protected] Peter Wagg’s News on the Wharf 20 YOUR VIEWS Printed by Southernprint, Poole, on 80gsm Galerie Fine Gloss paper stores in the spotlight Your letters, views and tweets Distributor Seymour Distribution, 2 East Poultry Avenue, London, EC1A 9PT Audit Bureau of Circulations 10 SYMBOL NEWS July 2016 to June 2017 average net circulation per issue 12,187 Co-op supply deal delay criticised Annual Subscription 11 UK 1 year £150 Europe £302 NEWS & MAGS 2 years £237 Rest of world £354 NFRN calls for wholesale probe 3 years £333 To subscribe contact 020 7689 3384 12 PRODUCT TRENDS What the Ready-to-drink sales up 16% Newtrade Beast from 11 Angel Gate, City Road, London EC1V 2SD 13 BRAND SNAPSHOT the East Tel 020 7689 0600 News from nine big brands email [email protected] meant RN is published by Newtrade Publishing Limited, which is wholly owned by NFRN Holdings Ltd, which is 14 WHAT’S NEW for you wholly owned by the Benefits Fund of the National Federation of Retail Newsagents. RN is editorially independent of the NFRN and opinions, comments and reviews included are not 11 opportunities for your store necessarily those of the Federation and no warranty for goods or services described is implied. Reproduction or transmission in part or whole of any item from RN may only be undertaken with the 16 PRICEWATCH prior written agreement of the Editor. Contributions are welcomed and are included in part or whole at the sole discretion of the editor. Benchmark your premium Page 19 Newtrade accepts no responsibility for submitted material. Every possible cigarettes prices care is taken to ensure the accuracy of information. For trade use only RN 13 April 2018 3 Follow RN Follow RN Email & Visit the TALK f on Facebook on twitter phone RN website facebook.com/ThisisRN @ThisisRN for expert advice to email [email protected] www.betterretailing.com/RN TO RN to have your say on the latest news help you grow your sales tel 020 7689 0600 extensive galleries and news MY 2018 WELCOME APPROACH TO TRADITIONAL CTN CATEGORIES Page 6 The CMA has the power to swiftly take action to protect print sales and profits icture the scenario: an independ- ent retailer has a decent turnover in breakfast bakery goods in-store and Pthrough deliveries to a few nearby B&Bs. Shoppers’ health concerns and an expand- ing selection of alternative breakfast staples are reducing sales, but trade remains re- power, scale and logistical Editor spectable. expertise to restore a stable Chris Rolfe But he faces a challenge he can’t solve. @ChrisRolfeRN Bakery manufacturers set retailers’ prices, supply to these businesses” 020 7689 3362 raising them and cutting terms sporadical- ly, while the only wholesaler he can source supplies from applies above-inflation deliv- ery charges, has the last word on allocation, and often deliv- ers his croissants and pastries so late that his time-sensitive INSIGHT morning trade suffers. In reality, this scenario does not occur – in this or any oth- 24 BESTWAY er convenience category – except one. It is this daily reality Wholesaler unveils rescue plan that the NFRN is challenging on behalf of newsagents and for Bargain Booze HND operators with its call for the CMA to investigate news- paper and magazine distribution this week. 27 ICE CREAM Against a backdrop of regional paper closures and cover How to make sure you don’t miss price increases with terms cuts – such as Trinity Mirror’s any sales opportunities once the temperatures start rising 1.7% recent reduction on the Express and Star’s former 24.2% weekday margins just weeks after acquisition – retailers’ 30 IN-STORE COUNTERS sales are under constant threat from an unregulated whole- From ice cream and bakery sale monopoly beset by regular late deliveries, service failures to butchery and flowers, and above-inflation carriage charges. four retailers tell RN Scoop ice cream Print sales may be falling by an average 8% to 9% year by how they do it earns me 70% year, but the newstrade remains a near-£3bn industry and a 32 THIS WEEK IN margins compared footfall driver for many stores, and the CMA has the power to MAGAZINES to 40% on swiftly take action to protect print sales and profits. A new racing If the NFRN’s request for absolute territorial protection to weekly fills a packaged lines – be removed is granted by the CMA, it raises the immediate gap in the 4 profit-driving in- question of who else retailers could then source newspapers market store counters and magazines from instead. in focus But the indisputable fact is that the current unregulated monopoly is a threat to print sales and the situation needs to Page 30 be addressed. 4 13 April 2018 RN BREAKING NEWS IT glitch A touch of glass for retailer’s cost two vaping display With the intention of present- hours’ lost ing a more professional and stand-out vaping range in store, business one retailer has installed a glass Retailers were left frus- cabinet showcasing his vap- trated after an IT glitch ing range by supplier TABlites. prevented them from ofer- David Lomas, of Lomas News in ing Post Ofce services for Manchester, said the cabinet has nearly two hours. allowed him to increase his vap- The issue happened on ing range by 25%. “I’m trying the morning of 10 April, to be more professional in my but was resolved in the af- range and display, and the cabi- ternoon. Retailers afected net lets us showcase expensive couldn’t use their Post items securely in a professional Ofce EPoS to process ser- manner,” he said. vices such as bill payments or print postage labels. According to a Post Ofce Massive increase in intelligence feedback Retailer’s sales rocket after rogue traders shut down spokeswoman, only a few branches were impacted. However, Vince Malone, of Tenby Stores & Post Of- fice in Pembrokeshire, was told the majority of 11,500 Imperial app drives Post Ofce branches were afected. “I had an outage between 11am and 1pm. I normally serve 80 custom- reports on illicit trade ers in that period, but I was unable to ofer the regular by Tom Gockelen-Kozlowski a month from across our Wear, who was found to be figures, Mr Hall said. “One services.” [email protected] UK and Ireland sales force. filling his gantry with a retailer saw a £500-a-day We have 200 reps, so that mixture of counterfeit and increase in his turnover A huge rise in the report- was one in 10 inputting legitimate stock. for five days until the illicit ing rates of illicit tobacco information every month. 10,000 counterfeit ciga- trader came back – he then Cup ban trading is being attributed In the three months rettes were seized from his passed this information to a new app Imperial since, we’ve had 522 store by authorities while on to trading standards to questions Tobacco has produced to reports.” Imperial Tobacco removed take action again. Waitrose’s pledge to speed up intelligence Of that, Mr Hall re- Mr Singh’s gantry follow- “Another store, whose remove disposable cups gathering. vealed, 420 reports have ing his conviction. reporting led to 50,000 cig- from its stores won’t work The app, SARA, allows focused on illicit tobacco The increased reporting arettes being seized, has in areas with high com- reps to hand retailer re- traders (100 reports were has, Imperial revealed, seen an increase of sales muter footfall, a retailer ports over to its investiga- of online sellers), which also led to 6,500 Facebook of cigarettes of as much as has told RN.