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Margins, margins, margins And why they trump price or availability for Kay Patel LOOKBOOK Page 6 » RETAIL NEWS THAT MATTERS ● £2.40 ● 14.07.2017 Make £7.50 an hour work for you ● How to make your business thrive in the National Living Wage era ● 22 profit-boosting strategies from RN's staff development experts Page 24 » EU NEGOTIATIONS LOCAL NEWSPAPERS SYMBOL GROUPS No CEO Get local New indie overthrow and join publisher: in sight, forces to back our beat Brexit fresh model says Nisa Vol 128 No 28 Look closer to home High margins on offer ‘Rebel’ retailers haven’t FOR TRADE USE ONLY to withstand the 28 to retailers who throw called for official meeting, storm, experts tell RN support behind it says chairman Page 10 » Page 5 » Page 11 » 2 14 July 2017 RN CONTENTS Shaping the future of independent retail since 1889 Editor Associate editor News editor ways retailers Chris Gamm Chris Rolfe Charlie Faulkner and publishers @ChrisGammRN @ChrisRolfeRN @CharlieFaulkRN can work together 020 7689 3378 020 7689 3362 020 7689 3357 to drive sales 3Page 32 Features editor Reporter Tom Gockelen-Kozlowski Jennifer Hardwick @TomGK_RN @JenniferH_RN 020 7689 3361 020 7689 3350 Head of production Senior designer Darren Rackham Anne-Claire Pickard @DarrenRackhamRN 020 7689 3391 020 7689 3373 “A clear system of delegation is crucial when it comes to Designer Account managers Financial controller Emma Langschied Marta Dziok-Kaczynska Parin Gohil managing waste” 020 7689 3380 020 7689 3354 020 7689 3375 Production Erin Swanson Finance executive Budgens retailer Shane Woolston on managing coordinator 020 7689 3372 Abi Sylvane Alex Garton Sales executive 0207 689 3383 the National Living Wage Page 24 020 7689 3368 Khi Johnson Managing director Account director 020 7689 3366 Nick Shanagher Will Hoad Marketing manager 07966 530 001 020 7689 3370 Tom Mulready HEADLINES OPINION 020 7689 3352 4 BREAKING NEWS 21 YOUR NEWS Business rates relief delayed Retailer’s 50% bread sales boost If you do not receive your copy of RN please contact Tom Mulready 6 STORE LOOKBOOK 22 YOUR VIEWS on 020 7689 3352 or email [email protected] Best-one retailer Kay Patel Your letters, tweets and views Printed by Southernprint, Poole, on 80gsm Galerie Fine Gloss paper 10 SYMBOL NEWS Distributor Seymour Distribution, 2 East Poultry Avenue, London, EC1A 9PT Audit Bureau of Circulations Booker retailers’ delivery delays July 2015 to June 2016 average net circulation per issue 13,316 First look 11 NEWS & MAGS Annual Subscription at Mehmet UK 1 year £150 Europe £302 Local publisher calls for support 2 years £237 Rest of world £354 Guzel’s 3 years £333 12 PRODUCT TRENDS new Simply To subscribe contact 020 7689 3384 Why sharing data can help you serve your shoppers better Fresh Newtrade 11 Angel Gate, City Road, London EC1V 2SD 14 BRAND SNAPSHOT Page 21 Tel 020 7689 0600 News from nine big brands email [email protected] RN is published by Newtrade Publishing Limited, which is wholly owned by NFRN Holdings Ltd, which is 16 WHAT’S NEW? 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 Niche ice cream in focus 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 18 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 cider profits Newtrade accepts no responsibility for submitted material. Every possible care is taken to ensure the accuracy of information. For trade use only RN 14 July 2017 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 WELCOME Profit or point of difference – what’s your product strategy and how do you get it right? WHY MARGIN IS KING FOR KAY ow do you decide which products to Page 6 stock? And how do you ensure this gives your customers a reason to visit Budgens retailer Shane Woolston on managing Hyour store and not your competition? Two retailers feature in this week’s issue with polar opposite strategies. One is focused on prof- it, the other on creating a point of difference. Editor For London retailer and this week’s Store INSIGHT Chris Gamm Lookbook Kay Patel, profit margin is king. Any @ChrisGammRN new product must earn him between 30% and 20 ADVICE CENTRE 020 7689 3378 40%. Staff push the products paying the highest Jai Singh on how to return and any brand or product not paying its make online ordering way gets cut. work effectively Cornish retailer Trudy Thompson, last week’s Lookbook, fo- 24 NATIONAL LIVING WAGE cuses on lines you don’t find in typical c-stores, however. Around Two retailers share their 70% of her sales come from 80 local suppliers and 20% of her fruit strategies for thriving and veg is grown in customers’ gardens. In this week’s My Local Hero column on page 19, Trudy tells us the value of using shop- 31 INDUSTRY PROFILE pers to help shape your product strategy. One of her customers is JTI’s Tom Hirons on what legislation means a Michelin-trained chef who supplies her cakes – and she sells up for ‘emerging products’ to 150 a day. These opposing strategies are working equally well for both re- 32 NEWSPAPERS tailers. Kay’s turnover and average basket spend are up by 20% in How publishers and his well-established store as he invests in high-margin categories retailers can work like chilled and food to go. together to drive sales Jai Singh’s five Trudy, meanwhile, might be making a lower store margin than 34 THIS WEEK IN ways to improve the previous owner, but this is more than offset by her increasing MAGAZINES turnover, which is up 200%, driven by her unique offer. 11 sales your online Whatever your strategy, RN gives you the tools each week to opportunities ordering get it right and there are lots of great examples in this issue for the next Page 20 to inspire. seven days 4 14 July 2017 RN BREAKING NEWS TMA plan Road trip inspires Kevin to make food will fight to go changes traders in Leading Spar group retailer Kevin Hunt is set to make food illicit cigs to go changes in up to 15 of his Trading standards would stores following an inspirational be better resourced to fight 300-mile road trip. Mr Hunt and illicit trading and eforts his team visited three different to introduce licensing for Spar stores, including a recently tobacco retailers would be refurbished Chesterfield store, scrapped under proposals to see the “incredible sales” of put forward by the Toba- the Bargain Bites food service. cco Manufacturers Asso- “For some stores value is the ciation (TMA). only thing that matters to your In the 2016/17 Deliver- demographic, which is where ing In A Year Of Change Kevin Hunt (far left) and his team. Inset, a £1 bakery comes in,” Mr Hunt said. report, launched this the £1 bakery at Chesterfield Spar store week, the TMA outlines the £11.5bn of tax the industry provides the £300m government fund payments delay continues ‘Small businesses will start dying’ treasury, the £2.4bn of tax lost to the illicit trade and also suggests a new regime of regulation that would protect revenues and cut crime. Rate relief shambles to Giles Roca, director gen- eral of the TMA, described the recent introduction of plain packaging as last two more months an “unprecedented and announced in March as ers’ head of rating John rates bill went up by unnecessary attack on a by Jennifer Hardwick [email protected] part of the Spring Budget Webber said: “It was a around 20% in April but legal business which sets – before the first round of dog’s dinner of an ann- he has not received any a dangerous precedent for Retailers promised relief higher bills hit stores in ouncement really because communication regarding other sectors” and said from large increases to April. the new bills had already relief from his council. EUTPD II reductions in their business rates bills FSB policy director Mar- been decided and were “Businesses are really small tobacco formats had could be faced with a tin McTague said: “Local about to be sent out by struggling in my area be- “reduced footfall and inci- further two-month wait as authorities have known councils when it was cause rent is so high any- dental spend” for retailers. a result of a “shambolic de- their allocation since made, so it was always go- way, so I definitely think lay”, experts have warned. April, yet it’s likely most ing to lead to a delay. small businesses will start The Federation of Small will not have schemes in “We are told the relief dying,” he said. Meters not Businesses (FSB) has place until August or Sep- is definitely going ahead Meanwhile Paul Patel, written to communities tember at the earliest. but it’s not much consola- who has a WH Smith popular in and local government sec- “This shambolic delay tion for businesses who Local in Dibden Purlieu, retary of state Sajid Javid, means some small busi- have had to pay for three Hampshire, said: “We have new survey calling on him to instruct nesses are being left with months already, when a system where Amazon More than one in five every council in England no choice but to delay in- cash flow and timing is so benefits from having an people would not want a to take action.