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We Need to Profit Too, Camelot Told

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We Need to Profit Too, Camelot Told 17.06.2016 NEW E-CIGS ERA The trends driving sales in the post- EUTPD II market BEST PRACTICE Page 28 » Booze at a bargain ‘Premium Bong Vodka is £70 online, my shoppers pay half that amount’ Page 20 » NEWS l CONVENIENCE l PROFIT www.betterretailing.com l £2.30 We need to profit too, Camelot told ANNUAL CONFERENCE l Angry retailers tell Lottery boss James Pearson to ‘fix NFRN image problem and processes’ at NFRN annual conference. l Firm admits it won’t cut £50 charge or increase president: commission despite retailers’ £1bn ticket sales. Page 5 » lobbying paid off ILLICIT TRADE Ralph Patel hails campaigning 300% rise success as new in illegal president Ray tobacco Monelle takes the reins. Page 11 & 24 Cig sales down » 1.7bn as dark FRANCHISE market booms, KPMG report Bargain reveals. Page 12 » Booze eyes INDUSTRY ALLIANCE fresh sales Newstrade growth joins forces Shift to Select NFRN and multiples fascia predicted launch supply chain by director Paul lobby group. Courtney. Page 6 » Page 5 » Two polls show EU Vol 127 No 24 exit support as RBS FOR TRADE USE ONLY economist warns 24 Securing tobacco’s future The UK’s four biggest tobacco manufacturers took Brexit could lead to centre stage at the NFRN’s annual conference to answer retailers’ questions on higher costs for indies. best practice and the future of the category. JTI’s Jeremy Blackburn told retailers Page 4 » to “invest for success and be proactive”. Page 4 » RN page ad.indd 1 08/06/2016 10:13 Retail Newsagent 17 June 2016 3 A brilliant way to find out about the issues most important to independ- ent retailers is to ask them what’s on their mind. I spent Sunday evening doing this with 300 retailers at an RN recep- tion before the NFRN annual conference. I asked them about the biggest challenges facing their businesses and the topics they wanted to tackle over the next two days. RETAIL NEWSAGENT NEWS ● CONVENIENCE ● PROFIT Nisa retailers Parfull Kumar and Harry Goraya said it was Camelot chiselling away at retailers’ lottery profits. Gwen Patterson told me it The theme of was understanding the future role of the tobacco category in her store and how to best prepare for it. this year’s Kishore Chandarana’s big issue was retail crime after recently being conference robbed by a customer. Graeme Pentland said it was competing parcel was ‘adapt, companies pulling vital services from his customers. change, We’ve used this insight to shape our conference coverage – the stories filed live from Torquay in this issue and our full report next week. transform’ This includes the four leading tobacco manufacturers telling retailers why they must be positive about the future of the tobacco category and how to ensure it has a long future in their stores. The theme of this year’s conference was ‘adapt, change, transform’. In his opening address, national president Ralph Patel spoke of the impor- tance of retailers evolving their offer and adapting to meet changing shopper needs. CHRIS GAMM I was very pleased to give a presentation on some practical ideas mem- Editor bers can use to add exciting and profitable new additions to their business. @ChrisGammRN The theme ran through conference and was closely aligned to RN’s strategy for helping readers prepare for the future. I hope you enjoy some of the best ideas from conference and beyond in this week’s issue. CONTENTS 20 38 NEXT WEEK 17 COLUMNIST NEWS lead to loss of How FEATURES 4 INDUSTRY NEWS Invest in customer of 11 much does the weather 26 THE RN INTERVIEW tobacco and reap rewards, years; Mondelez affect sales of ice Ray Monelle, left, the sales reps conspicuous retailers are told cream? John Eastwood NFRN’s new national 6 BUSINESS NEWS by their absence looks at the facts Select aims 14 YOUR STOCK, YOUR SAY president, talks to Are and figures in Chris Rolfe about the to give one stop shop fascia low margin pricemarked the sector challenges ahead focus over Bargain Booze packs having an impact 7 NEWSTRADE Puzzle 18 PRICEWATCH UK 28 E-CIGARETTES How TOBACCO on your business? And spirits prices magazines bring £2.6m are you planning any to ensure EUTPD II Managing your range summer sales bonanza 19 THE doesn’t affect sales for plain packaging promotions or displays to ENTREPRENEURS 34 PRE-MIX DRINKS 8 PRODUCT NEWS Monster tie in with Euro 2016 26 Munch and Walkers 15 YOUR ISSUE What you Make the most can learn from exclusives for indies Leave or 16 of summer sales 11 REGIONAL NEWS Outgoing Remain? Who’s the world’s best opportunities NFRN president Patel in or out in RN’s business brains. 38 PREVIEW This week Carphone looks back at the high EU referendum THIS WEEK points of year in office debate Warehouse co- 16 INDUSTRY PROFILE founder David Ross IN MAGAZINES COMMENT & 20 RETAILER 41 ROUND-UP Jo Dell, right, Puzzle mags PUZZLE MAGAZINES ANALYSIS PROFILE offer sales solutions Mondelez Get the lowdown on this 13 LETTERS Latest Smiths category Putting the focus 42 FOR YOUR SHELVES News problems take development on alcohol pays off Free gift for Making newstrade top performer the biscuit; problems controller for Mital Patel Jewellery readers “THE NEWSTRADE NEEDS ATTENTION AT A HIGH LEVEL TO MAKE SURE IT’S TREATED WITH THE DEGREE OF URGENCY IT NEEDS ” – INCOMING NFRN NATIONAL PRESIDENT RAY MONELLE IS COMMITTED TO PUTTING RETAILER ISSUES TO TOP POLITICAL FIGURES Page 26 » 4 17 June 2016 Retail Newsagent Follow RN f on Facebook facebook.com/retailnewsagent to have your say on the latest news ‘Stick to Post Office marks ‘local’ milestone tobacco The Post Office’s community branch fund marked a new RRPs’ milestone as the ribbon was cut Retailers need to stick to on the 500th store to benefit manufacturer RRPs on from the scheme. Binfield Heath tobacco or risk losing sales Post Office in Henley was re- and footfall on the back of launched with a new layout and EUTPD II and plain pack leg- other improvements, with local islation, Bestway Wholesale dignitaries Lord Francis Philli- has warned. more and MP John Howell OBE Tony Holmes, sales direc- on hand to mark the occasion. tor at the company, said re- Postmistress Sharon Caple, search from Australia found said: “We’re happy to be able to retailers who stuck to recom- give our branch a new fresh look mended tobacco prices after here at Binfield Heath.” plain pack legislation came into force saw ‘no discernible impact’ on their sales. Bestway is encouraging NFRN annual conference Manufacturers urge retailers to work with reps and listen to their customers its members to do the same in a new tobacco legislation guide it is issuing to stores. Mr Holmes said: “If retail- ers choose to inflate prices Invest in tobacco and reap to earn additional margin, they will see a decline not only in their tobacco business, but also across the rewards, retailers told other grocery and impulse categories.” by Nadia Alexandrou the dexterity to face this tobacco sales following the Tobacco, highlighted the change, but you need to introduction of plain pack- benefit of retailers taking a Be positive about the future invest for success and be aging in 2012, he said, with proactive approach to fight- Coffee boon of tobacco, invest in the proactive.” He encouraged sales up 5.6%. Sales were ing illicit trade, which has category and you will be retailers to collaborate down in c-stores, supermar- been forecast to grow with for c-stores rewarded, representatives with suppliers and keep kets and hypermarkets, by the arrival of plain packag- Less than half of all cofee from the UK’s four biggest a constant dialogue with 0.1%, 2.5% and 3% respec- ing. “There have been cases and hot beverage sales manufacturers told inde- customers and reps. “The tively, broadly in line with where retailers’ trade has come from cofee shops pendent retailers this week. best source of insight comes current global tobacco sales. been boosted by £1,000 a with convenience stores Senior figures from JTI, from your most unhappy “You can be the UK’s to- week post-raids,” he said. now boasting 13% of sales, Imperial Tobacco, Philip customers,” he said. bacconists,” he said. “Train Rory Cotter, BAT head of according to research from Morris and British Ameri- Jerry Margolis, UK sales your staf to talk to custom- trade, said retailers should Kantar Worldpanel. can Tobacco (BAT) presented director at Philip Mor- ers about the products you focus on their customers. Experts at the company and answered retailers’ ris, said retailers should carry, pricing, and when “With the display ban, we said with food to go becom- questions on best practice embrace changes from 10s and pricemarks start just focused on doors and ing increasingly promi- and the future of the cat- plain packaging and EUTPD disappearing. The service not what customers were nent at numerous outlets, egory at the NFRN’s annual II legislation and “play to you ofer gives you a big ad- seeing. Look at e-cigarettes customers are looking for a conference in Torquay. win”. vantage over the multiples. though a customer lens,” one-stop shop. Jeremy Blackburn, head Tobacconists in Australia Take advantage of it.” he said. “It’s a dynamic cat- It states convenience of communications at were the only retail seg- Peter Nelson, anti-illicit egory that’s growing from stores now boast 13% of JTI, said: “Retailers have ment to see growth in trade manager at Imperial consumer demand.” “out-of-home eating and drinking occasions”, more than supermarkets and less than 1% away from sandwich shops or cafes and On paper, EU exit could prove costly cofee shops.
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