Cash & Carry Outlets
1998 Market Report
Fourteenth Edition 1998 Edited by Phillippa Smith
ISBN 1-85765-881-7 Cash & Carry Outlets
Cash & Carry Outlets
Executive Summary ...... 1
1. Market Definition ...... 2
2. Market Size ...... 7
3. Industry Background...... 11
4. Competitor Analysis...... 15
5. Strengths, Weaknesses, Opportunities and Threats (SWOT).... 27
6. Buying Behaviour...... 29
7. Outside Suppliers to the Industry ...... 34
8. Current Issues ...... 36
9. Forecasts ...... 40
10. Company Profiles...... 43
11. Further Sources...... 50
Key Note Research...... 57
The Key Note Range of Reports ...... 58
Key Note Ltd 1998 i Cash & Carry Outlets Contents
Contents
Executive Summary 1
1. Market Definition 2
INTRODUCTION ...... 2 MARKET POSITION ...... 2 Table 1: The UK Grocery Wholesaling Market by Type of Operators (£m and %), 1996 and 1997...... 3 MARKET SECTORS...... 3 Table 2: The UK Cash and Carry Market by Type of Operator (% of total sales), 1997...... 4 MARKET TRENDS...... 4 Grocery Wholesale Trends ...... 4 Table 3: Index of Consumer Expenditure and Grocery Wholesaling Turnover (index 1992=100), 1992-1997...... 5 Catering Sales...... 5 Delivered Trade ...... 5 Table 4: The UK Grocery Wholesaling Market and Penetration by Delivered Trade (£m and %), 1990-1997...... 6
2. Market Size 7
THE TOTAL MARKET ...... 7 Table 5: The UK Cash and Carry Market at Current Prices (£m and index 1992=100), 1992-1997...... 7 NUMBER OF DEPOTS ...... 8 Table 6: Number and Average Sales of Cash and Carry Depots (£m and number), 1990-1997...... 8 AVERAGE DEPOT SIZE ...... 9 Table 7: Average Depot Size of Cash and Carry Operators (square feet), 1996 ...... 9
Key Note Ltd 1998 ii Cash & Carry Outlets Contents
PRODUCT MIX...... 9 Table 8: Grocery Cash and Carry Product Mix (%), 1996...... 10
3. Industry Background 11
RECENT HISTORY...... 11 INDUSTRY CONCENTRATION ...... 12 Table 9: Non-Specialist Wholesalers of Food, Beverages and Tobacco by Turnover (number and %), 1997...... 12 TRADE ASSOCIATIONS...... 13 Federation of Wholesale Distributors ...... 13 Institute of Grocery Distribution...... 14
4. Competitor Analysis 15
THE MARKETPLACE...... 15 Table 10: Number of Depots of the Leading Cash and Carry Groups, 1997...... 15 Own Labels...... 16 Table 11: Selected Own-Label and Exclusive Label Brands of Leading Cash and Carry Distribution, 1997...... 17 Own-Label Development...... 18 Today’s Group ...... 18 Booker ...... 18 MARKET LEADERS ...... 19 Table 12: Turnover of Selected Leading Cash and Carry Companies (£m), 1997/1998...... 19 Cash and Carry Operators...... 19 Booker PLC ...... 19 Financial Results ...... 20 Makro Self Service Wholesalers Ltd ...... 20 Financial Results ...... 21 Watson & Philip PLC ...... 21 Financial Results ...... 21 Batleys PLC...... 21 Financial Results ...... 22 Bestway Cash & Carry Ltd...... 22 Financial Results ...... 22 AF Blakemore and Sons Ltd...... 22 Financial Results ...... 23
Key Note Ltd 1998 iii Cash & Carry Outlets Contents
AG Parfett & Sons Ltd ...... 23 Financial Results ...... 23 W Wing Yip PLC...... 23 Buying Groups ...... 24 NISA-Today’s (Holdings) Ltd ...... 24 Financial Results ...... 24 Landmark Cash & Carry Ltd ...... 24 ADVERTISING AND PROMOTION...... 25 Recent Promotions...... 25 Trademarket ...... 25 Today’s Group ...... 25 World Cup 1998 ...... 26
5. Strengths, Weaknesses, Opportunities and Threats 27
STRENGTHS...... 27 WEAKNESSES ...... 27 OPPORTUNITIES...... 27 THREATS ...... 28
6. Buying Behaviour 29
GENERAL TRENDS ...... 29 Table 13: Cash and Carry Customer Profile (%), 1990-1997...... 29 GROCERY SALES...... 30 Table 14: UK Grocery Trade by Store Format by Value (%), 1990-1997...... 30 Table 15: Consumer Expenditure on Food, Alcohol and Tobacco at Current Prices (£m), 1992-1997...... 31 INSTITUTE OF GROCERY DISTRIBUTION WHOLESALING SURVEY...... 31 THE CATERING SECTOR...... 32 Table 16: Consumer Expenditure on Catering at Current Prices (£m and index 1992=100), 1992-1997...... 32
Key Note Ltd 1998 iv Cash & Carry Outlets Contents
7. Outside Suppliers to the Industry 34
FOOD, DRINK AND TOBACCO ...... 34 DISTRIBUTION/LOGISTICS...... 34 INFORMATION TECHNOLOGY SYSTEMS ...... 35
8. Current Issues 36
NEW OPENINGS...... 36 Costco...... 36 Hyperama...... 36 Big Red Shed ...... 36 Wrights of Horwich...... 36 PACKAGING WASTE LEGISLATION ...... 37 INFORMATION TECHNOLOGY...... 37 CORPORATE ACTIVITY ...... 38 Bellevue/BWG ...... 38 Dhamecha Foods...... 38 AG Parfett and Sons...... 38 Makro...... 38 Booker ...... 38 DUTY FRAUD...... 39
9. Forecasts 40
FORECASTS 1998 TO 2002 ...... 40 Table 17: Forecast UK Cash and Carry Market at Current Prices (£m), 1998-2002 ...... 40 PRODUCT DEVELOPMENTS...... 41 INFORMATION TECHNOLOGY...... 41 OVERSEAS EXPANSION ...... 41 CONCLUSIONS ...... 41
Key Note Ltd 1998 v Cash & Carry Outlets Contents
10. Company Profiles 43
INTRODUCTION ...... 43 DEFINITIONS ...... 43 FURTHER INFORMATION...... 43 Batleys PLC...... 44 Bestway Cash & Carry Ltd...... 45 Booker PLC ...... 46 NISA-Today’s (Holdings) Ltd ...... 47 Makro Self Service Wholesalers Ltd ...... 48 Watson & Philip PLC ...... 49
11. Further Sources 50
Associations...... 50 Periodicals ...... 51 Directories ...... 52 General Sources ...... 52 HBI UK Information Sources ...... 53 Government Publications...... 55 Other Sources...... 55
Key Note Research 57
The Key Note Range of Reports 58
Key Note Ltd 1998 vi Cash & Carry Outlets Executive Summary
Executive Summary
Cash and carry represents the largest sector in the UK grocery wholesaling market, with sales valued at £9.51bn in 1997. The sector can be segmented by type of operation into: multiple depot operators, buying groups and independents. Multiple depot operators account for the largest share, with 54%, led by the major players, e.g. Booker, Makro and Batleys. Buying groups, comprising consortiums of wholesalers and retailers, have accounted for an increasing share of the market in recent years, taking around 44% in 1997. Independents are mainly unaffiliated, solo depot operators, many of which are active in the delivered trade.
The past few years have seen a dramatic concentration of the cash and carry trade, with increase in corporate activity, especially among the multiple depot companies. Booker’s acquisition of Nurdin and Peacock in November 1996, created the largest cash and carry group in the UK. Recently, Makro, the Dutch-owned wholesaling group, was also taken over by the German group, Metro, for £1.7bn.
Overcapacity in the cash and carry trade, together with intense price competition, has led to many operators moving into new markets, e.g. catering or food service, or adopting a policy of range expansion by widening their product range, e.g. into pet foods. Many have also expanded their delivery service to servicing the independent retailers. On the operational side, increased investment in centralised distribution systems and information technology (IT), has enabled companies to operate more effectively, efficiently and economically.
The future looks less optimistic for the cash and carry trade, with the continued growth of the delivered sector, while increasing dominance of the major grocery multiples, together with the impending economic slowdown, suggest that the cash and carry operators will continue to operate in a difficult and extremely competitive marketplace. Key Note forecasts that the cash and carry sector will grow on average by 2.6% year-on-year from 1998 to £10.7bn in the year 2002.
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1. Market Definition
INTRODUCTION
Cash and carry is defined as wholesale depot operations from which retail customers purchase goods and provide their own transport. Credit terms are normally available, while a limited delivery service may be offered to larger customers. Cash and carry operators buy goods in large quantities from the manufacturer or buying group and then sell these goods to their retail customers at prices only slightly above what they paid for them. They accept low net profit margins, in return for high-volume sales, and thus are able to keep costs to a minimum.
MARKET POSITION
The cash and carry trade forms an integral part of the UK wholesaling industry, linking suppliers and smaller retailers in the grocery market. The grocery wholesaling market was valued at £1.1bn in 1997; of this, cash and carry represented the largest share, taking 63%, with sales estimated at £9.51bn. The delivered trade took another 35.6%, with the remaining 1.4% accounted for by mixed businesses. According to the Institute of Grocery Distribution (IGD), the delivered trade is wholesalers offering a full-range delivery service directly to the trade customer’s premises, for which an additional fee is normally charged.
Mixed businesses are those wholesalers who provide both a cash and carry and delivery service from the same depot, with approximately a 50/50 split of the business.
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Table 1: The UK Grocery Wholesaling Market by Type of Operators (£m and %), 1996 and 1997
1996 e1997 £m % £m %
Cash and carry 9,392 64.7 9,508 63.0 Delivered trade 4,920 33.9 5,372 35.6 Mixed business 200 1.4 212 1.4
Total 14,512 100.0 15,092 100.0
e — Key Note estimates
Source:Institute of Grocery Distribution/Key Note
MARKET SECTORS
The cash and carry trade can be categorised into three main types of operators:
• multiple depot operators • buying groups • independents.
By far the largest sector comes from the multiple depot companies, of which the top three are Booker (including Nurdin and Peacock), Makro and Batleys. This sector accounted for a 54% value share in 1997. The major multiples have their own distribution networks, which channel suppliers’ deliveries from the UK and worldwide sources into regional distribution centres, from which deliveries are made by in-house transport to their customers, including the larger supermarkets and superstores.
Buying groups represent the fastest growing sector, their share increasing to 44% by value in 1997. The smaller, unaffiliated independents tend to be solo depot operators and they accounted for a declining 2% market share in 1997.
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Table 2: The UK Cash and Carry Market by Type of Operator (% of total sales), 1997
Type of Operator Multiple depot operators 54 Buying groups 44 Independents 2
Total 100
Source:Key Note
MARKET TRENDS
Grocery Wholesale Trends
The UK grocery wholesaling market continued to grow in 1997, expanding by 34% since 1992. This has outstripped total spending by consumers over the same period. Grocery wholesalers have begun to make progress in recent years, through increased focus on the customer, combined with information technology (IT) and merchandising driven improvements. They have also adapted to changing market conditions in a number of ways. These include increasing emphasis on catering sales, expansion of their customer base and their product portfolio, the creation of new and larger buying groups, and the development of symbol trading formats.
1997/1998 has seen increasing concentration of the cash and carry sector, with the continued growth of the major multiple depot operators, e.g. Booker, Batleys and Makro. The merger of Booker with Nurdin and Peacock, created the largest cash and carry group in the UK.
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Table 3: Index of Consumer Expenditure and Grocery Wholesaling Turnover (index 1992=100), 1992-1997
Index of Grocery Index of Consumer Wholesaling Turnover Expenditure
1992 100 100 1993 110 106 1994 117 111 1995 122 116 1996 127 123 1997e 134 132
e — Key Note estimates
Source:Key Note based on Institute of Grocery Distribution/Office for National Statistics
Rationalisation has also taken place in the delivered trade sector. The importance of national and regional food service contracts has meant that many delivered wholesalers have needed to expand, whether by acquisition or other forms of investment, e.g. Watson & Philip has national capabilities following its purchase of smaller wholesalers, and CJ Lang has widened its catchment area through the recent purchase of Young and McMillan.
Catering Sales
With the shrinking of their core customer base, i.e. independent grocers, and the tightening of margins caused by intense price competition, many wholesalers have increasingly moved towards the catering or food service sector. Sales to caterers have risen from 17% of the total market in 1991, to around 38% in 1997, while the grocer’s share has fallen from 68% to 60% over the same period. NISA-Today’s has recently revamped its Kitchen King catering range with new design, giving the own labels a fresh and appealing identity.
Delivered Trade
Another important trend has been the continued shift towards the delivered trade, which reflects the growth of larger independent retailers, e.g. Symbol groups which generally source most of their stocks from the groups approved wholesalers. The need for temperature-controlled
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transport for the fast-growing chilled and frozen foods market, has also favoured the delivered trade, whose share of the grocery wholesaling market has risen from 26.4% in 1990, to an estimated 35.6% in 1997.
Table 4: The UK Grocery Wholesaling Market and Penetration by Delivered Trade (£m and %), 1990-1997
£m % Share
1990 2,823 26.4 1992 2,923 24.9 1994 4,449 32.5 1995 4,794 33.3 1996 4,920 33.9 1997e 5,372 35.6
e — Key Note estimates
Source:Institute of Grocery Distribution/Key Note
The benefits of delivered wholesale to the bigger retailers are that they are able to exercise tighter control over their business and also to take advantage of labour-saving developments such as IT-ordering links. Many delivered wholesalers have also developed schemes which make using their service more efficient, while others also offer financial benefits, e.g. Palmer & Harvey McLane offer retailers a service whereby they can order goods from other suppliers and have them charged to their Palmer & Harvey account.
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2. Market Size
THE TOTAL MARKET
Cash and carry represents the largest sector in the UK grocery wholesaling market, with a 63% value share and sales totalling £9.51bn in 1997.
Between 1992 and 1997, the cash and carry trade grew by 9.9%, compared with 27% for the wholesaling sector as a whole.
Table 5: The UK Cash and Carry Market at Current Prices (£m and index 1992=100), 1992-1997
£m Index (1992=100)
1992 8,648 100 1993 8,799 102 1994 9,047 105 1995 9,395 109 1996 9,592 109 1997e 9,508 110
e — Key Note estimates
Source:Institute of Grocery Distribution/Key Note
The cash and carry trade has seen major structural changes in recent years. The marketplace remains extremely competitive, while changes in the consumer base have forced many cash and carry operators to adopt a strategy of range expansion by moving into new markets, e.g. catering or food service, or expanding their product portfolio to attract new customers, e.g. pet foods.
Wholesalers are not only competing against each other, but also face increasing pressure from both the discounters and the mainstream
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supermarket chains. To survive the challenge of the major grocery multiples, many of the smaller independent cash and carry operators have joined voluntary buying groups, e.g. NISA-Today’s and Landmark. The underlying trend has been towards greater concentration in the marketplace, as reflected in the significant growth of the top three operators in recent years, mainly through acquisitions or organic depot development.
NUMBER OF DEPOTS
The number of depots in the cash and carry sector has progressively declined since 1993, when it reached 544. The past few years have seen an accelerated decline, mainly due to the increasing move towards rationalisation and cost reductions in the trade. However, this is compensated for by the increase in average sales per depot, which rose to £18.06 in 1996. Key Note estimates that this figure will have reached £19.21 in 1997.
Generally, depot size is partly dependent on the type of products that are stocked by the wholesaler, and also on the company’s stock management policy, i.e. some operators may require large warehouse space which would inevitably increase costs within the supply chain.
Table 6: Number and Average Sales of Cash and Carry Depots (£m and number), 1990-1997
Total Number Average Sales of Depots per Depot (£m)
1990 534 14.71 1992 539 16.04 1993 544 16.17 1994 535 16.91 1995 524 17.93 1996 531 18.06 1997e 495 19.21
e — Key Note estimates
Source:Institute of Grocery Distribution/Key Note
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AVERAGE DEPOT SIZE
Many of the larger cash and carry operators have been increasing their depot size in recent years, reflecting the need for greater efficiency. It is estimated that the average size of depots has doubled since 1990, from around 40,000 square feet to an estimated 80,000 square feet in 1997.
Makro has the largest depots, with an average size of 128,600 square feet, reflecting the diversified range of products stocked. Batleys also has depots of an average size of 93,200 square feet.
Table 7: Average Depot Size of Cash and Carry Operators (square feet), 1996
Makro 128,600 Batleys† 93,200 Bestway 86,000 Booker Cash and Carry† 82,080 Nurdin and Peacock† 82,079 Parfetts 81,250 Musgrave 81,000 Blakemore 61,700 Trademarket 39,500 Knox 19,600
† — 1995 figures
Source:Institute of Grocery Distribution
PRODUCT MIX
The range of products stocked by cash and carry operators is generally determined by depot size, location and client base. Recent trends have involved a move towards greater centralised distribution and deployment of merchandising technology, which has resulted in more effective displays. The range of products has also undergone significant rationalisation over the past decade, as cash and carry operators become more customer focused and operate more efficiently through the increasing use of information technology (IT) computer systems A typical cash and carry core range has been reduced from 30,000 previously, to around 12,000 to 20,000 today.
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According to the latest Institute of Grocery Distribution (IGD) survey, cigarettes, tobacco and alcohol continue to represent the core products, accounting for 58.3% of total sales in 1996. General grocery products are also important, taking another 13.4% value share.
The growth of convenience foods has led cash and carry operators to stock an increasing range of convenience lines, e.g. ready meals, snacks and dairy products.
Table 8: Grocery Cash and Carry Product Mix (%), 1996
Cigarettes and tobacco 39.1 Alcohol 19.2 General grocery 13.4 Soft drinks 7.4 Confectionery 6.6 Chilled food 4.4 Meat 2.6 Frozen food 1.8 Produce 0.4 Other 5.1
Total 100.0
Source:Institute of Grocery Distribution
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3. Industry Background
RECENT HISTORY
The cash and carry trade is a relatively new sector, which started in the 1960s. It comprises mainly independent operators. One of the first cash and carry companies was Batleys, which started in 1958, and was followed in the early 1960s by Nurdin and Peacock.
The emergence of the supermarket multiples in the 1960s forced many of the traditional wholesalers in the grocery distribution sector to turn to a cash and carry format. This was to reduce operating costs and to allow prices to be kept low. It was also to allow their retail customers to compete effectively against the grocery multiples chains.
The growth of the cash and carry sector in the 1960s and 1970s was paralleled by the growth of the voluntary buying chains and the independent retailer’s association.
To compete effectively and to survive the challenge of the major food multiples, many cash and carry operators have joined voluntary buying groups, such as NISA-Today’s and Landmark. These groups are able to secure large purchases and benefit from higher discounts for bulk purchases. They also have group marketing initiatives and advertising campaigns.
The cash and carry sector has undergone massive development in recent years, adapting to new market conditions in a number of ways. These include an increasing emphasis on the catering or food service sector, expansion of the product base, e.g. pet foods becoming more efficient and marketing oriented, with information technology (IT) and merchandising-driven improvements. Better management systems have resulted in smaller, but more profitable depots, while the adoption of integrated IT systems has played a crucial role in optimising stock turnover and improving buying efficiency.
Many cash and carry operators have also improved their own-label lines and developed store fascia for their retail customers in order to promote brand and store loyalty.
As with the food industry, the wholesaling cash and carry trade is also effected by European Union (EU) legalisation, the most recent being the
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Packaging Waste Regulations, introduced in March 1997. The proposals place an obligation on wholesalers and retailers to recover at least 50% of used packaging by the year 2001. The Federation of Wholesale Distribution (FWD) disapproves of the new regulations, saying that they are unfair, as the wholesaler picks up a seller obligation on secondary packaging, which would result in additional costs, estimated to be 6% of overall profits.
INDUSTRY CONCENTRATION
The UK cash and carry trade remains relatively fragmented in terms of depot numbers and companies. While the top three operators, e.g. Booker, Makro and Batleys, have grown significantly over the past decade (1988 to 1998) and currently account for over 40% of depots and 55.7% of sales, the majority of cash and carry operators are still operated by independents, although many have secured the benefits of belonging to a buying group.
The fragmentation of the sector is reflected in the Census of Production PA1003, which analyses non-specialist wholesalers of food, tobacco and beverages by turnover size. The data reveals that 68.1% of enterprises have a turnover of less than £500,000 and 8.6% have a turnover of more than £5m.
Table 9: Non-Specialist Wholesalers of Food, Beverages and Tobacco by Turnover (number and %), 1997
Number of Enterprises % of Total Turnover Size (£000) 1-49 725 16.2 50-99 695 15.5 100-249 1,030 23.0 250-499 600 13.4 500-999 420 9.4 1,000-4,999 630 14.0 5,000+ 385 8.6
Total 4,485 †100.0
† — does not sum due to rounding
Source:Business Monitor PA1003 — Size Analysis of UK Businesses
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Barriers to entry are high, due to the high capital costs of securing suitable large premises, while trading volumes would also necessitate a significant outlay in terms of stock and equipment.
The past few years have seen increasing concentration of the cash and carry sector. Overcapacity has put intense pressure on the smaller suppliers, and has also led to major restructuring and rationalisation by the leading operators, e.g. Booker’s acquisition of Nurdin and Peacock in November 1996 created the largest cash and carry group in the UK, with a 40.6% value share in 1997. Also, at the end of 1997, the Dutch group, SHV, owners of the Makro cash and carry chain, sold its 60% stake in the company to German group, Metro, for £1.7bn.
TRADE ASSOCIATIONS
Federation of Wholesale Distributors
The Federation of Wholesale Distributors (FWD) is the main trade body for cash and carry, and delivered wholesalers in the UK. Its membership covers around 90% of all cash and carry wholesalers, as well as around 90% of delivered wholesalers.
The FWD represents and promotes co-operation between the wholesaling sector and its customers and suppliers. One of its main functions is to emphasise the wholesaling mechanism as the most efficient, lowest-cost distribution channel between manufacturers and retailers, or catering end users. The FWD represents member’s interests to government and the European Union (EU), and provides advice for members on legislative and legal matters. It is also active in shaping policies and initiatives, e.g. the Take Home Blueprint, which provides merchandising guidelines for independent retailers and has the full support of the major beer and cider suppliers.
The FWD also holds at least three annual conferences and produces a yearbook, as well as two trade magazines for its members, Pro Wholesaler and Catering Wholesaler.
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Institute of Grocery Distribution
The Institute of Grocery Distribution (IGD) is an independent-registered charity, formed in 1972 from a combination of the Grocery Institute and the Institute of Food Distribution. Its key function is to provide a central research and education service for the grocery industry, working on behalf of corporate and personal members. The IGD also publishes a wide number of specialist business reports, including an annual survey on the UK grocery wholesaling industry.
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4. Competitor Analysis
THE MARKETPLACE
Traditionally, the cash and carry trade has been highly fragmented, with many small operators often serving local markets. However, with the changing structure of the marketplace, there has been a move towards greater concentration, with the continued growth of the multiple depot operators.
Booker remains the dominant operator, with around 181 depots. Other leading players include: Landmark Cash & Carry, with 83 depots; Makro Self Service Wholesalers, with 27 depots; Batleys, with 14 depots; and Bestway, with 16 depots.
Table 10: Number of Depots of the Leading Cash and Carry Groups, 1997
Booker PLC 181 Landmark Cash & Carry Ltd 83 Makro Self Service Wholesalers Ltd 27 Bestway Cash & Carry Ltd 16 Batleys PLC 14 Trademarket (Watson & Philips PLC) 8 AF Blackmore and Sons Ltd 6 AF Parfett & Sons Ltd 5 Others 205
Total 545
Source:Company information
Most of the independents and smaller chains are part of buying groups, the two leading ones being NISA-Today’s and Landmark Cash & Carry, while those unaffiliated operators tend to be specialists in particular
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product areas, e.g. Hancocks, which specialises in confectionery. Many are also active in the delivered trade sector.
Competition has intensified in recent years, with changing market conditions forcing wholesalers to maximise their efficiency and adopt a policy of range expansion, with the aim of providing a ‘one-stop’ shopping experience for their customers.
Own Labels
Own labels have become increasingly important in the cash and carry trade, helping to build up consumer loyalty. Also, as they are generally cheaper than the major brands, they give retailers a better profit margin.
Own-label products were originally introduced to offer a price differential to the major manufacture brands, but with improvements in quality levels, they have become a viable and practical proportion to budget-conscious consumers.
Generally, wholesalers have developed their own-label products under names quite separate from the trading company’s name. This allows greater flexibility and also allows the wholesaler to supply own labels to a variety of retail fascia and formats, e.g. Batley’s Best Buy and Bestway’s Best-In; while in some cases, e.g. Booker, the own-label name has formed the basis of fascia branding for its retail customers such as Premier, Zip-In, Drinkstore and Newstop.
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Table 11: Selected Own-Label and Exclusive Label Brands of Leading Cash and Carry Distribution, 1997
Company Product Own Label Booker Grocery Happy Shopper, Family Choice Catering Chef’s Larder Tobacco and cigarettes Gold Mark, Red Band Confectionery Tuck Shop Drinks Malt House Vintners
Landmark Catering Caterers Kitchen Grocery Pricepoints, Lifestyle Drinks Scandia, Shire, Chieftain, Viborg Heritage, Edrigde Vale, Spectra, Prince Consort, Le Caves du Pre, Vallett, Murry Ridge, Pedsera, Edridge Manor, Castle Royal Tobacco No 3, Special Style
Makro Grocery Aro Catering Village Cross, Aro Catering Drinks Charles House, Baltic EB, Don Pablo Tobacco Charles House
Trademarket General grocery Today’s, Gold, (Watson & General grocery Breakfast Club, Bodyface Phillip) Catering Orchard Farm, Kitchen King Confectionery Fun Factory Drinks Cellars International Tobacco Pennylane
Batleys Grocery Best Buy Catering Batley’s Catering Tobacco Dukes
Bestway General grocery Best-In, K2, Map, White Pearl Drinks Best Vin, The Bonnie Prince Five Freres, The Imperal Tzar, Imperial Stag, Kings Lager, Table continued overleaf...
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...table continued from previous page
Company Product Own Label Bestway Drinks Landi, Lelac, Veuve du Longchamp Imp Gin, Best Blend, Quartz Lager, Drie River, Ridgemount Bay, Jacques Berger, Castille Perez, Eden Glade, Rossinni Los Vientos Tobacco Park Royal
NISA-Today’s General grocery Today’s Price, Right Price, Premier Gold, Fun Factory, Breakfast Club Catering Kitchen King Drinks Cellars International Tobacco Knightbridge, Pen Pushers Toiletries Body Fine Electrical goods Prism Confectionery Kandy Store Chilled foods Heritage Stationery/ Premier Collection, paper products Occasions
AG Parfett & Sons As in Landmark
Source:Company information
Own-Label Development
Today’s Group
Today’s Wholesale Association recently redesigned its main own-label range. Refinements were made in response to a questionnaire sent to 1,000 retail customers and the views of a consumer panel. The new design aims to provide a product with shelf impact, clarity of product title and price marking, and perceived product expectation.
Booker
Following the takeover of Nurdin and Peacock, Booker has retained the Happy Shopper label in favour of Family Choice. Family Choice Value is being used as the value line own-label offer.
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MARKET LEADERS
Table 12 analyses the turnover of the leading cash and carry groups in the UK.
Table 12: Turnover of Selected Leading Cash and Carry Companies (£m), 1997/1998
£m Year End
Booker PLC 5,265.0 27/12/97 Makro Self Service Wholesalers Ltd 905.7 31/12/97 Watson & Philip PLC 637.5 02/11/97 Batleys PLC 525.2 02/05/98 NISA-Today’s (Holdings) Ltd 495.5 05/04/97 Bestway Cash & Carry Ltd 454.2 30/06/97 AF Blakemore and Son Ltd 410.6 30/04/97 AG Parfett & Sons Ltd 159.5 30/06/97
Source:ICC Juniper database
The following section presents a brief analysis of the leading cash and carry companies, including buying groups in the UK.
Cash and Carry Operators
Booker PLC
Booker PLC is one of UK’s leading food distribution groups. The company’s wholesale business operates as Booker Belmont Wholesale which comprises Booker Cash and Carry (including Nurdin and Peacock), and Booker Wholesale Foods. Recent consolidation of the Booker Belmont Wholesale customer base has resulted in a total of 439,000 customers comprising 110,000 in retail and 329,000 in catering.
Following the acquisition of Nurdin and Peacock in November 1996, Booker became the largest cash and carry group in the UK.
Booker is the Mace symbol group wholesaler for England and Wales, serving just under 400 Mace stores. The company has developed a variety of fascias and formats for its cash and carry customers, e.g. Premier for
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convenience stores, Zip-In for forecourts, Drinkstore for off-licences and Newstop for confectioners, tobacconists and newsagents (CTNs).
Booker recently completed the strategic review of its cash and carry business under the Project Heartland programme, which aims to optimise stock availability and minimise stock holdings through the creation of five regional distribution centres. The integration process has resulted in the closure of 32 branches, with 181 remaining. All the former Nurdin and Peacock branches that have been retained feature new livery layouts and advanced management systems.
Following a strategic review in March 1998, Booker announced that it will concentrate only on its core food wholesaling business, which represents 90% of its turnover. The company is committed to a £250m sale of its non-core business in June 1998, and has recently survived two unsuccessful bids for its cash and carry business from two leading supermarket groups, Somerfield and Budgens.
• Financial Results
For the year ending 31st December 1997, turnover for Booker PLC rose by 18.5% to £5.27bn, while pre-tax profits also increased dramatically to £71.4m, compared with £13m the previous year. The company’s latest interim results to 10th September 1998, show group pre-tax profit and exceptionals halved to £11m. Sales in Booker Cash and Carry were also down by 4.9%, mainly due to the 14% reduction in selling space, as a result of closing 33 cash and carries, but sales per square feet rose by 7%. Operating profit in Booker’s Wholesale division was down 33% to £17.5m and turnover also fell by 3.6% to £1.7bn. The company promised improvements in the second half, as a result of the completion of the Project Heartland centralised distribution system, and the integration of the Nurdin and Peacock branches.
Makro Self Service Wholesalers Ltd
Makro Self Service Wholesalers Ltd is part of the Dutch company, SHV Makro NV, which owns 60% of the business. In the UK, Makro operates 27 cash and carry depots, serving a wide variety of customers, of which 30% are grocery retailers and 40% caterers. At the beginning of August 1997, the company formed a trading alliance with Spar Landmark. Makro stocks a total of some 35,000 lines, including grocery and non-foods. Own-label lines account for more than 15% of the company’s product range; the leading brands include Aro (general grocery) and Charles House (drinks/tobacco).
At the end of 1997, Metro, the German group, which already owned 40% of Makro, purchased the remaining 60% for £1.7bn. Makro’s 27 stores in the UK will be added to Metro’s portfolio, which totalled 197 stores in 16 European countries.
Key Note Ltd 1998 20 Cash & Carry Outlets 4. Competitor Analysis
• Financial Results
For the year ending 31st December 1997, turnover decreased to £905.7m, while there was a pre-tax loss of £2.8m.
Watson & Philip PLC
The Watson & Philip group comprises three main trading subsidiary companies: Alldays Stores Ltd; W and P Foodservice Ltd; and Trademarket Ltd; the largest of which is Alldays, the UK’s leading chain of specialist convenience stores. W and P Foodservice is a leading wholesale supplier to the catering industry and operates ten depots in the UK, while Trademarket is engaged in grocery wholesaling, and operates nine cash and carry outlets, mainly based in Scotland.
In March 1996, Trademarket left the Landmark buying group of which it was a member, and joined the Today’s Wholesale Association.It now stocks the Today’s own-label range. In June 1997, Trademarket launched Trademarket Plus, a promotional initiative for its major retail customers. It offers promotional deals to a membership selected from Trademarket’s best customers. Around 150 of the group’s 9,000 retail customers took part in the scheme.
The company also launched a delivery service under the Trademarket Select banner providing independent retailers with a range of chilled, frozen and ambient products, including licensed drinks and tobacco. The Watson & Philip’s Orchard Farm brand was also introduced into Trademarket, thus improving the company’s offer to its catering customers.
• Financial Results
1997 proved to be another year of record profits, boosted by the strong trading performance of its core business.
For the year ending 2nd November 1997, pre-tax profits increased by 14.5% to £21.5m, on a turnover which rose by 10.6% to £637.5m. For Trademarket, the year produced another solid performance, with turnover of £132.2m, although operating profits were down by 8%, reflecting competitive pressures. For the future, Trademarket will seek to increase sales through innovative services to counteract the decline in the traditional cash and carry customer base.
Batleys PLC
Batleys PLC is one of the UK’s leading independent family-owned cash and carry groups. The company operates 14 cash and carry depots and eight pet food depots. In May 1997, Batleys announced plans to expand south from its northern base, and it aims to have three southern-based
Key Note Ltd 1998 21 Cash & Carry Outlets 4. Competitor Analysis
depots by 1998. The 15th depot opened on April 1997 at Nottingham, while another is scheduled at Cardiff in October 1998. The company has plans for another ten depots in the south of England, including sites at Southampton and Bristol under consideration. Most of the new stores will incorporate separate pet food areas. Batleys’ leading own brands include Best Buy and Batley’s Catering.
• Financial Results
For the year ending 2nd May 1998, turnover dropped from £538.7m to £525.2m, although figures are for a 53-week period for 1997. Pre-tax profit was up by 29% to £12.3m, although the results highlight the continued problem of widespread bootleggling of tobacco and alcohol. Nevertheless, there was a clear improvement in the financial performance of the group, with its established warehouses providing another solid performance.
Bestway Cash & Carry Ltd
Established in 1976, Bestway Cash & Carry Ltd is the largest member of the Landmark Cash & Carry group, with 16 branches. It has around 39,000 registered customers and employs 1,400 people. Although primarily based in the South East, the company has pursued an expansionary policy in recent years. Bestway targets trade customers only, comprising 75% retailers, i.e. licensed grocers, convenience stores and CTN operators, off-licences and 25% private caterers. Its leading own label is Best-In, which includes some 500 grocery and non-grocery lines, together with a range of exclusive wines, sprits and beers.
In April 1997, the company launched a 3-week own-label promotion with the slogan ‘You can’t get better than free’, offering free products when selected grocery lines are purchased.
• Financial Results
For the year ending 30th June 1997, the company’s turnover increased by 1.2% to £454.2m, while pre-tax profit was also up by 9.9% to £10.9m.
AF Blakemore and Sons Ltd
This West Midlands-based cash and carry group operates seven wholesale depots, of which six are cash and carry. The company is a member of the Spar Landmark buying group, and is the registered supplier for 550 Spar stores in the Midlands and East Anglia, of which 154 are co-owned Spar stores. The company’s main customers are independent grocery retailers which account for 56% of sales, and which also account for 93% of delivered trade. Caterers, public houses and CTN retailers are becoming increasingly important. Around 25% of cash and carry sales are own label, totalling some 2,555 lines. The leading brands include Spar, Lifestyle, Pricepoints and Caterers Kitchen.
Key Note Ltd 1998 22 Cash & Carry Outlets 4. Competitor Analysis
In April 1997, the company renamed its catering delivered operation, Blakemore Food Service, while the product range was also expanded to include both branded and the Landmark exclusive label drinks.
• Financial Results
For the year ending 30th April 1997, the company’s turnover fell slightly to £410.6, while there was a 18% rise in pre-tax profits to £3.9m.
AG Parfett & Sons Ltd
AG Parfett & Sons Ltd a North West-based cash and carry group was established in 1980, and currently operates five cash and carry depots with total selling area of 365,000 square feet. The majority of its customers are independent grocers, which account for just over 88% of sales, with off-licences and forecourts taking the remaining 12%.
As a leading member of Landmark, Parfett offers a wide range of own brand and exclusive label products, which include Lifestyle and Caterers Kitchen.
In August 1997, the company launched a new loyalty scheme, offering individual retail customers credits based on orders from own labels placed above their previous ones. Customers have the opportunity to earn rebates in excess of £1,500.
Parfett recently acquired fellow Landmark member, John Watson, for an undisclosed sum. The 46,000 square feet cash and carry, based at Halifax, Yorkshire, began trading on 1st July 1998.
• Financial Results
For the year ending 30th June 1997, the company’s turnover increased by 3.3% to £159.5m, while pre-tax profits fell by 1.6% to £2.4m.
W Wing Yip PLC
W Wing Yip PLC is one of UK’s leading specialist food importers from the Far East, and represents one of the UK’s largest Chinese cash and carry warehouse chains. From its humble beginnings in Digbeth, Birmingham, the company has expanded to other major cities which have a strong Chinese population. Today, the company operates four warehouses across the UK, selling more than 2,500 oriental product lines and utensils, and supplying up to 2,000 Chinese restaurants. Goods are sold from both cash and carry, and delivered trade.
Recently, the company launched a £5m pagoda-style office complex for the local Chinese community.
Key Note Ltd 1998 23 Cash & Carry Outlets 4. Competitor Analysis
Buying Groups
NISA-Today’s (Holdings) Ltd
NISA-Today’s (Holdings) Ltd is the UK’s largest buying consortium, with some 306 retail members and 402 wholesale members. NISA-Today’s was formed in 1977, with the aim of improving the buying power of large independent retailers. This was expanded into the wholesaling sector with the launch of Today Wholesale Association in October 1978. The company’s main function is to negotiate trading terms and invoice cost prices of branded and own-label products on behalf of its independent members.
NISA-Today’s has a broad spread of own-label products, offering a major wholesaling range, under Today’s, which comprises some 350 lines and a 1,000 product retail selection under the NISA label. In catering, there are also 350 items under the Kitchen King label and 162 licensed drinks under the Cellars International label.
The group also has a number of umbrella brands, which include Breakfast Club (cereals), Bodyfine (health and beauty), Fun Factory (children’s confectionery and drinks) and Premier (US cola, crisps and snacks). Recent launches include the Heritage label for chilled foods and own-label stationery under the Knightbridge and Pen Pushers names.
At the beginning of 1998, Today’s was relaunched as The Today’s Group, with a new logo and trading policy. A major feature of the relaunch was the development of an inter-channel IT system, linking retailers, wholesalers and central office.
• Financial Results
In the year to 5th April 1997, turnover rose by 20.8% to £495.5m, while pre-tax profit also increased, by 47.7% to £1.2m.
Landmark Cash & Carry Ltd
Landmark Cash & Carry Ltd is a wholesale-owned cash and carry group with around 30 wholesale members operating 65 depots. Total membership is over 100,000 independent customers. Following recent restructuring, the group currently concentrates its activities on three major areas: delivered wholesale catering; cash and carry; and convenience stores. Landmark operates a strong own-label policy, the range comprises over 400 retail products under the Lifestyle label and a price fighting range under the Pricepoint brand, which incorporates cigarettes. For the food service sector, there is also a range of products under Caterers Kitchen.
Key Note Ltd 1998 24 Cash & Carry Outlets 4. Competitor Analysis
During 1997, the company celebrated its 25th year of trading with a launch of a £1.25m anniversary promotional programme comprising a wide range of business, social and charitable events.
In August 1997, Landmark formed a trading alliance with Makro cash and carry to cover overrider negotiations.
Landmark has recently undergone the first corporate makeover in more than 25 years. The new look, incorporating the slogan ‘Professionalism, Integrity, Technology’ is being incorporated into the fascia of all its depots, as well as the company’s advertising and stationery.
ADVERTISING AND PROMOTION
The main bulk of advertising expenditure by the cash and carry trade is mainly concentrated on price and product-led promotions, and retailers’ promotions. The aim of both is to enable their customers, i.e. the independent retailers, to compete on price with the major multiples and discount retailers, and also to encourage customer loyalty by offering discounted prices on products. Point-of-sale (POS) and other merchandising materials, including posters, may also be provided for specific lines, including own brands by buying groups, and cash and carry labels.
The only cash and carry company listed in ACNielsen MEAL is market leader, Booker, which spent some £479,100 on main media advertising for the year to June 1998; while a further £437,000 was spent by the Symbol group, Spar, on promoting its own labels.
Recent Promotions
Trademarket
In June 1997, Trademarket launched its latest promotional initiative named Trademarket Plus, which offers its most progressive retail customers unique deals in return for certain disciplines. It featured a 2-week promotion every 6 weeks, with a minimum of six extra special deals among other key offers. Each member receives POS material and up to 1,000 free leaflets. The success of the scheme during the first three promotional periods, has resulted in it being given permanent status.
Today’s Group
In May 1998, Today’s Group promotion offered individual retailers a selection of multibuy deals, which enabled them to make margins of 50% and above. The promotions focused on Today’s own-label products, with
Key Note Ltd 1998 25 Cash & Carry Outlets 4. Competitor Analysis
the featured lines changing every 2 weeks, e.g. buy two cases, get one case free.
In March 1998, the company launched its exclusive retailer in-depot promotion under the theme ‘Best of British’. Customers purchasing one of Britain’s top-selling brands will receive a scratchcard, and whoever reveals three Union Jacks will win a luxury weekend in London for two people.
World Cup 1998
To coincide with the World Cup 1998, a number of themed promotions were run by many of the leading cash and carry groups.
Booker Cash and Carry devised a guide to the World Cup for its customers. The eight-page booklet gave hints on display and production selection, while a range of wines and champagne were introduced with France 1998 labels.
Landmark used a scratchcard promotion to offer customers instant prizes until 13th June 1998, which included free products, multibuy deals, cash and tickets to World Cup games. Wholesalers in the group had been issued with a World Cup mailout containing free scratchcard multibuy coupons, information on the tournament and advice on how to maximise sales during the event.
NISA-Today’s gave away World Cup Final tickets in its ‘Strike it Lucky’ promotion, which began on 1st June 1998. Based on a spot-the-ball theme, the scheme featured 30 brands and retailers were allowed one attempt at finding the ball for each promotional item purchased.
Key Note Ltd 1998 26 Cash & Carry Outlets 5. Strengths, Weaknesses, Opportunities and Threats (SWOT)
5. Strengths, Weaknesses, Opportunities and Threats (SWOT)
STRENGTHS
• Cash and carry represents the largest sector in the UK grocery wholesaling market, with sales reaching £9.51bn in 1997.
• The recent merger between Booker and Nurdin and Peacock will provide serious challenge to the major grocery multiples.
• Many cash and carry companies offer their customers specially-tailored packages, usually own-label products, shop fascia, store planning and design, thus encouraging high standards of in-store discipline.
• Recent improvements in the quality of own labels and improvements in product ranges have helped developed customer loyalty and boosted sales.
WEAKNESSES
• The cash and carry trade has become increasingly concentrated, with a shrinking customer base, thus limiting opportunities for organic growth.
• Cross-channel trading and duty evasion have seriously eroded alcohol and tobacco sales, especially for independent cash and carry operators.
• There is limited new product development (NPD) because of the high failure rate of new product launches.
• Regional saturation of wholesale depots has seriously affected the smaller independent operators, many of which are unable to compete with the major wholesalers.
OPPORTUNITIES
• There are tremendous marketing opportunities for UK cash and carry companies to expand in continental Europe, especially the fast emerging Eastern European countries where British expertise in wholesale distribution would face little competition.
Key Note Ltd 1998 27 Cash & Carry Outlets 5. Strengths, Weaknesses, Opportunities and Threats (SWOT)
• Greater use of electronic point-of-sale (EPOS) technology in the cash and carry trade would result in better targeting of customers, while in the delivered trade, greater use of information technology (IT) systems should improve stock and customer service levels.
• The delivered sector provides tremendous opportunities for future market expansion for cash and carry operators, especially in catering sales.
• Own-labels lines could be further exploited, especially added-value premium products.
• Further consolidation of the wholesale industry through acquisitions and mergers would result in increased buying power of the cash and carry operators, thus enabling them to compete more effectively against the grocery multiples.
• There are also tremendous opportunities to expand into more profitable lines, e.g. fresh and chilled products, thus boosting revenue.
THREATS
• Cross-channel trade and illegal ‘bootlegging’ of alcohol and cigarettes continues to pose a serious threat to the cash and carry trade.
• The recent Packaging Waste Legislation places an obligation on wholesalers to recover at least 50% of used packaging by the year 2001. This is likely to mean that increased costs would have to be passed on, thus threatening the viability of the smaller retailers.
• The increasing dominance of the major supermarket chains would continue to threaten the existence of the independent grocer, and, in turn, would seriously affect the cash and carry market.
• The smaller cash and carry independents and unaffiliated groups are vulnerable to takeover from the major multiple depot operators.
Key Note Ltd 1998 28 Cash & Carry Outlets 6. Buying Behaviour
6. Buying Behaviour
GENERAL TRENDS
The main customer of the cash and carry trade is the independent grocer. A recent trade survey carried out by the trade magazine, Independent Retail News, reveals that around 92% of independent grocers, off-licences, confectioners, tobacconists and newsagents (CTNs), and convenience retailers use a cash and carry, and more than half of them visit one at least three times a week.
Figures from the Institute of Grocery Distribution (IGD) research shows that grocery retailers accounted for 61% of total cash and carry sales in 1996.
The other major customer group, caterers, accounted for a 36% share in 1996. Other customers include owners of CTNs, convenience stores and petrol forecourts.
Since the beginning of the 1990s, there has been a progressive shift towards caterers, who have been taking an increasing share of the market, while grocery retailers have seen an erosion in their business.
Table 13: Cash and Carry Customer Profile (%), 1990-1997
Grocery Retailers Caterers Other
1990 62 17 15 1992 66 29 5 1994 62 34 4 1996 61 36 3 1997e 60 38 2
e — Key Note estimates
Source:Institute of Grocery Distribution/Key Note
Key Note Ltd 1998 29 Cash & Carry Outlets 6. Buying Behaviour
GROCERY SALES
Although the total grocery market has increased in value by 40% since the beginning of the 1990s, the share taken by the independent grocer has shrunk from 10.3% in 1990 to 7% in 1997. This is mainly as a result of the increasing dominance of the major grocery multiples, whose share has grown from 79% to 83% over the same period.
Table 14: UK Grocery Trade by Store Format by Value (%), 1990-1997
1990 1992 1994 1995 e1997
Multiples 79.0 81.0 80.0 82.0 83.0 Independents 10.3 9.0 8.0 7.0 7.0 Co-op 10.7 10.0 12.0 11.0 10.0
Total 100.0 100.0 100.0 100.0 100.0
e — Key Note estimates
Source:Business Monitor SDA25/Key Note
With the shortage of their core customer base, many smaller cash and carry operators were forced to close, while the larger ones underwent a period of restructuring and rationalisation in order to adapt to the new market conditions. To compete with the major multiples, many of the smaller independent retailers have banded into symbol groups or voluntary buying groups. The largest is NISA-Today’s, which operates a nationwide chain of cash and carry outlets, with competitive prices and an extensive own-label range. Another major retailing group is Spar, the leading convenience store symbol group in the UK, with around 2,665 stores. The product range of the symbol groups and independent retailers are concentrated in three core grocery areas; food, alcohol and tobacco, where sales of all these products have expanded rapidly in recent years.
Key Note Ltd 1998 30 Cash & Carry Outlets 6. Buying Behaviour
Table 15: Consumer Expenditure on Food, Alcohol and Tobacco at Current Prices (£m), 1992-1997
Food Alcohol and Tobacco
1992 45,243 33,553 1993 46,234 34,775 1994 47,099 36,624 1995 48,983 37,493 1996 52,257 39,850 1997e 53,201 42,083
e — Key Note estimates
Source:Office for National Statistics/Key Note
INSTITUTE OF GROCERY DISTRIBUTION WHOLESALING SURVEY
The requirements of both retailers and caterers are very different according to a recent management survey by the Institute of Grocery Distribution (IGD) on the wholesaling sector. Both ranked availability of products as the most important requirement, while product range was ranked second for caterers and third for retailers. Price marking and ease of finding products was considered by both types of customer to be of medium importance, while neither point-of-sale (POS) or financial packages were seen to be important. Depot technology and information technology (IT) applications also scored low for both types of customer.
Strong promotions were also seen as vital for retailers, who ranked them second; but less important to caterers, who ranked promotions fifth. For retailers, the range of services offered was ranked as the fifth most important requirement; while this is found to be less important for caterers and ranked ninth in their assessment.
On the availability of fresh produce, caterers considered this to be much more important, as they ranked it third; while retailers ranked it eleventh. Again, caterers considered the speed of transaction to be more important, ranking it forth on their list, compared with seventh for retailers.
Key Note Ltd 1998 31 Cash & Carry Outlets 6. Buying Behaviour
THE CATERING SECTOR
The food service or catering sector has been one of the most dynamic sectors of the leisure industry. The past decade (1988 to 1998) has seen a noticeable shift in the percentage of consumer food spending towards food service channels. This has come about as a result of social and demographic changes, which have greatly influenced consumer lifestyles and eating patterns. Increased pressure on time has led to many consumers eating or purchasing more convenience foods outside the home. This has been further encouraged by the continued popularity of fast foods and the growth of foodcourts in non-traditional food service channels, such as travel locations, e.g. airports, motorway service stations, shopping malls and leisure venues. The emergence of a strong lunch market has also boosted catering sales.
Table 16: Consumer Expenditure on Catering at Current Prices (£m and index 1992=100), 1992-1997
Expenditure Index of Expenditure on Catering (1992=100)
1992 32,308 100 1993 34,844 108 1994 36,456 113 1995 37,921 117 1996 40,730 126 1997e 44,709 138
e — Key Note estimates
Source:Office for National Statistics/Key Note
Whilst the larger catering companies tend to buy direct from the major food suppliers, the independent caterer, restaurant and hotels favour a delivery service from the cash and carry operators. The importance of this lucrative sector has led to the greater development of own-label lines by the leading cash and carry operators, with emphasis on quality, e.g. NISA-Today’s Kitchen King range recently underwent a comprehensive relaunch and design to give the own-label products a fresh and appealing identity.
Key Note Ltd 1998 32 Cash & Carry Outlets 6. Buying Behaviour
The increasing importance of catering sales can be seen in that most of the multiple depot operators are biased towards that sector, e.g. 75% of Booker Belmont Wholesale’s customers are caterers, while for Landmark, the proportion is 60% and Makro 40%. It is likely that the proportion of catering sales will increase in the future, as more cash and carry operators move into this fast-growing sector.
Key Note Ltd 1998 33 Cash & Carry Outlets 7. Outside Suppliers to the Industry
7. Outside Suppliers to the Industry
Outside suppliers to the cash and carry trade mainly comprise the food, drink and tobacco companies, which supply the bulk of stock going through the depots. Other important suppliers include the distribution/logistics companies, and those providing information technology (IT) systems and computer software.
FOOD, DRINK AND TOBACCO
Suppliers of food, drink and tobacco to the cash and carry trade represents some of the UK’s largest food manufacturers. The Cash and Carry Big Book lists the major 50 suppliers, which includes Anchor Foods, Birds Eye, United Biscuits, Dairy Crest Group, Coca-Cola Schweppes, Imperial Tobacco, Mars Confectionery and Nestlé UK. In alcoholic drinks, there are around 20 top suppliers, the leading names include Allied Domecq, HP Bulmer, Carlsberg Tetley, Guinness Brewing GB, IDV UK, Matthew Clark, Moet and Chandon, Seagram UK Ltd, United Distillers UK and The Whitbread Beer Company. In addition to manufacturer brands, many of the leading food companies supply own-label products.
DISTRIBUTION/LOGISTICS
Effective distribution and improved service levels are vital for cash and carry operators. The leading suppliers are the distribution/logistics companies, many of which are part of the international transport groups. The leading companies include TDG Harris, Exel Logistics and Salvesen Logistics.
TDG Harris is part of Transport Development Group (TDG PLC), a leading logistics group operating throughout the UK and other western European countries. The company operates around 4,500 vehicles at 250 depots and offers a vast choice of ambient and temperature-controlled warehousing.
Salvesen Logistics, part of the Scottish company, Christian Salvesen, is a leading national delivery network company, handling over 300,000 products per annum, with depots at Evesham, Ormskirk and Motherwell in Scotland.
Key Note Ltd 1998 34 Cash & Carry Outlets 7. Outside Suppliers to the Industry
INFORMATION TECHNOLOGY SYSTEMS
IT systems have become an integral part of modern wholesaling, enabling the cash and carry operator to operate more effectively, efficiently and economically. The past few years have seen the leading software suppliers developing new systems for the cash and carry sector, which provide key management information. The leading companies include Riva, Siemens Nixdorf Information Systems and BCP.
Riva is a leading supplier of electronic point-of-sale (EPOS) and wholesale management systems to the leading companies in wholesaling, distribution, and cash and carry, e.g. AG Parfetts, Batleys and Bestway. The company was the first provider to offer Microsoft Windows NT-based solutions utilising multimedia displays at point-of-sale (POS), allowing the end user to maximise promotional opportunities in-store, while graphical and highly intuitive tilling screens facilitate easier till operation, staff training and increase efficiency. Riva recently entered into a strategic relationship with Siemens Nixdorf, with the aim of providing technological solutions to suit wholesalers of all sizes. Under the agreement, Riva will run its Microsoft-based tilling software on Siemens Nixdorf Beetle EPOS terminals, and PCs to provide both front and back capabilities.
Siemens Nixdorf Information Systems supplies IT systems to over 50% of the UK’s cash and carry trade, and recently won a multipound contract for Booker Belmont Wholesale to supply the company’s 200 site UK estate with enhanced order processing, central distribution and inventory management system. It will also provide a comprehensive consultancy service to enable Booker to connect the UK solution to a multilingual, multicurrency, cash and carry system.
A leading supplier of IT solutions to the food service industry is Business Computer Projects Ltd (BCP). Its Accord Distribution System is widely used by catering wholesalers throughout the UK, including CJ Lang’s Consort Catering in Scotland, Woodward Food Service, Pioneer Food Distributors and W McClure in North West, Thomas Kidley in East Anglia and Holmes Catering in Northern Ireland. BCP is currently developing Accord to best meet the chefs needs, and recent enhancements include flexible pricing and telesales features.
Key Note Ltd 1998 35 Cash & Carry Outlets 8. Current Issues
8. Current Issues
NEW OPENINGS
Costco
In September 1997, the leading warehouse club, Costco, opened its seventh depot in Edinburgh. The 122,000 square feet depot employs up to 160 employees and stocks around 3,500 lines.
Hyperama
In September 1997, Hyperama also opened its second branch in West Bromwich. At 150,000 square feet and costing £6.5m, the new store claims to be the largest independently-owned cash and carry in the UK. The warehouse stocks more than 20,000 product lines and incorporates both a fresh meat counter and in-store bakery. There is also a permanent exhibition style sampling unit sponsored by Tilda and Lee Kum Kee, and a printing centre enabling on-site production of both the company’s own display material and flysheets, and also leaflets for retail customers.
Big Red Shed
In October 1997, the delivered wholesaler, Heath and Smith, a member of Today’s, opened its new cash and carry, The Big Red Shed in Doncaster. The department is targeted at the catering trade, mainly public houses and clubs, complementing the company’s on-trade base.
Wrights of Horwich
In November 1997, Wrights of Horwich, a North West-based company, opened a 45,000 square feet cash and carry in Bolton. Investment in the new site was £5m.
Key Note Ltd 1998 36 Cash & Carry Outlets 8. Current Issues
PACKAGING WASTE LEGISLATION
The adoption of the Producer Responsibility Obligations (Packaging Waste) Regulations in March 1997, places an obligation on retailers and wholesalers to recover at least 50% of used packaging by the year 2001. The issue has caused considerable concern among the wholesaling industry, which feels that it is not being fairly treated compared with the large multiple retailers who have considerably more resources available to deal with packaging issues.
The recent Parker Committee report on Packaging Waste Legalisation supported the industry that its obligation for packaging waste supplied to them to small retailers should be removed, as long as the valorisation of packaging waste passing through the independent trade can be promoted by other means, e.g. development of a Code of Practice, annual monitoring, and partnership agreements with local authorities. The Committee also recommends that the regulations be simplified for the smaller retail and distributive trades. The Government is currently considering the Committee’s report and is expected to make a decision on possible amendments. The Federation of Wholesale Distributors (FWD) feels that the proposed changes by the Government does not go far enough and has recently asked the Office of Fair Trading (OFT) to intervene on grounds that they are being unfairly disadvantaged by the new regulations.
INFORMATION TECHNOLOGY
The UK wholesaling industry has undergone massive transformation in recent years, investing heavily in depot infrastructures and operational systems, in order to compete more effectively against the major grocery multiples. An area which has made great impact on the wholesaling sector is that of information technology (IT) systems, which now underpin the day-to-day operations of almost every depot in the UK. Also, the industry has started to device applications for technology outside the basic areas of tilling and stock control. The latest development can be seen in the introduction of NISA-Today’s Scan Epos system for independent retailers, which creates an electronic link between Today’s wholesalers and its customers. The new system is intended to allow the creation of a central database, where the information will be used for category management activities and for improving negotiations at Today’s Central Office. The initiative will strengthen the competitive stance of Today’s wholesalers and provide its member customers with an effective scanning system. The combination of better prices and establishment of electronic data interchange (EDI) links between wholesalers and retailers will undoubtedly improve customer loyalty.
Key Note Ltd 1998 37 Cash & Carry Outlets 8. Current Issues
CORPORATE ACTIVITY
Bellevue/BWG
In April 1998, BWG, the grocery distribution subsidiary of Groupe Pernod Ricard, acquired Belluvue Cash and Carry, the Edinburgh-based cash and carry wholesaler for an undisclosed sum. BWG operates 30 cash and carry depots in the Republic of Ireland, under the Value Centre name and 14 in Northern Ireland, trading as Holmes Cash and Carry. The company also holds the Mace franchise in Ulster and the Spar franchise in the Republic of Ireland and the south west of England. Bellevue, with an annual turnover in excess of £26m, will continue to be operated by the current management team, while the acquisition will give BWG a strategic step for the company to expand its wholesale operations into Scotland.
Dhamecha Foods
Dhamecha Foods recently purchased the assets of Today’s member, Barking Cash and Carry. The acquisition will boost turnover to £120m per annum for two of London’s largest cash and carry operators, situated on either side of the city.
AG Parfett and Sons
In June 1998, Stockport-based, AG Parfett and Sons announced the acquisition of Watson Cash and Carry, based in Halifax. The 47,000 square feet depot brings the company’s total to five and represents its first move into Yorkshire.
Makro
At the end of 1997, the German group, Metro, purchased the remaining 60% of Makro, the Dutch-owned cash and carry group, for £1.7bn. Makro’s 27 stores will be added to Metro’s portfolio, which totalled 197 stores in 16 European countries. The move will have little impact on the operational side of the business.
Booker
At the time of writing (October 1998), Budgens had decided to pull out of merger talks with Booker, the troubled cash and carry group. This is the second unsuccessful merger bid, following Somerfield, the supermarket chain’s, attempted merger bid in July 1998, blaming concerns about the
Key Note Ltd 1998 38 Cash & Carry Outlets 8. Current Issues
commercial risks of the deal. Although Booker is still vulnerable to other possible takeover bids, the likely contenders being Makro, Wal-Mart and Costco, it will continue to carry on business as usual and is optimistic about the future.
DUTY FRAUD
One of the most contentious issues in grocery wholesaling is the impact of duty fraud and illegal bootlegging activities, which are seriously damaging the trade. In early 1997, members of the Federation of Wholesale Distributors (FWD) signed up to a new drinks trading Code of Practice, which is designed to ensure that they do not engage in illegal activity. Those who do will be expelled from membership.
As a result of continued pressure from the trade, the Government recently announced its new offensive against duty fraud and smuggling. H.M. Customs and Excise will get an additional £35m over the next 3 years to the year 2001, while an extra 100 custom officers will be deployed, backed by a tougher policy on restoring seizes vehicles and a new registration systems for bonded warehouses. According to the latest statistics by H.M. Customs and Excise, cross-channel smuggling cost the Exchequer £950m in 1997, while custom seizures amounted to £55m.
Key Note Ltd 1998 39 Cash & Carry Outlets 9. Forecasts
9. Forecasts
FORECASTS 1998 TO 2002
The key trends in grocery retailing to the year 2002, together with the impending economic slowdown, suggest that the cash and carry sector will continue to operate in a difficult and extremely competitive marketplace.
Although concentration of the major multiple depot operators looks set to continue, the main growth will come from the delivered trade sector, reflecting the growing importance of buying groups and the growth of convenience and symbol retailers within the grocery trade.
Faced with a shrinking customer base, cash and carry operators will have to look for new market opportunities, such as catering, or may even compete with retailers by moving into warehouse-style trading, such as Costco, in order to improve growth prospects. They will have to become more efficient through improvements in customer services and further investment in new products, e.g. fresh and chilled foods and processes.
Key Note forecasts that the cash and carry sector will grow on average by 2.6% year-on-year from 1998, to £10.7bn in 2002. Its share of the grocery wholesale market will fall from 61% to 56% over the same period, while that for the delivered trade will increase from 37% to 42%.
Table 17: Forecast UK Cash and Carry Market at Current Prices (£m), 1998-2002
£m % Change Year-on-Year
1998 9,698 2.0 1999 9,940 2.5 2000 10,238 3.0 2001 10,494 2.5 2002 10,704 2.0
Source:Key Note
Key Note Ltd 1998 40 Cash & Carry Outlets 9. Forecasts
PRODUCT DEVELOPMENTS
Cash and carry operators have significantly rationalised their product ranges over the past decade. This process is expected to continue further, with the increasing use of point-of-sale (POS) technology, which will improve stock turnover.
Own-label development will focus on more premium added-value products, especially in the convenience sector, e.g. chilled foods and snacks, which offer better margins than the traditional grocery staples.
INFORMATION TECHNOLOGY
One of the biggest developments in the grocery wholesaling market has been the adoption of information technology (IT) systems, which have transformed the cash and carry sector, enabling companies to operate more effectively, efficiently and economically. The future is expected to see more investment in IT infrastructure, as companies continue the process of rationalising and streamlining their product ranges. Trading on the Internet has become a reality and the possibility of new entrants using this technology, will put increasing pressure on the more traditional companies.
OVERSEAS EXPANSION
There is considerable potential for overseas expansion for the UK cash and carry companies, especially in Europe and the Far East. The leading players, e.g. Booker and Makro, already have a significant presence in Europe. The future might see more partnership agreements and joint ventures, e.g. Booker recently set up joint ventures with Sezginler in Turkey and Inchcape in Thailand, and also formed a partnership with Jeromimo Martins in Poland. An area which offers tremendous expansion opportunities is Eastern Europe, where cash and carry distribution is relatively unexplored.
CONCLUSIONS
While cash and carry will still remain in existence for the foreseeable future, the key trend is towards multichannel supply chain systems, as the grocery wholesaling and retailing sector is rapidly consolidating. Flexibility will be the watchword for the future, as wholesalers need to respond to the changing needs of their customers and the marketplace.
Key Note Ltd 1998 41 Cash & Carry Outlets 9. Forecasts
There are still enormous opportunities for expansion in the cash and carry trade. However, its future success and survival will depend on a changing of attitudes and becoming more customer focused, as well as building closer supply relationships that would deliver the breadth of product range, as well as competitive prices.
Key Note Ltd 1998 42 Cash & Carry Outlets 10. Company Profiles
10. Company Profiles
INTRODUCTION The following section contains financial profiles of some of the principal companies identified as operating within the market sector discussed in this report. The financial results of some of the important names within the sector may not be reported if: • Their principal activities are so varied that their results are not considered applicable to the survey • They are no longer trading as separate companies • Their financial data is very out of date DEFINITIONS A company which has a ‘Y’ consolidated value has filed consolidated accounts for the relevant year. † — denotes that the growth rate calculation is invalid, because the figures either move from positive to negative or from negative to positive. Turnover (Sales) This includes all income derived from the principal activities of the firm, net of VAT. It encompasses UK sales, exports and overseas and intercompany sales. Pre-Tax Profits The net trading profit figure after deduction of all operating expenses, including depreciation and finance charges but before deduction of tax, dividends, subventions or group relief, and other appropriations. Where applicable, it will include the share of profits and losses of associated companies. Items described by the company as exceptional are included; extraordinary items are excluded. Profit Margin Pre-tax profits expressed as a percentage of sales. Average Remuneration Total employee remuneration divided by the number of employees. Sales per Employee Sales divided by the number of employees.
FURTHER INFORMATION For more detailed financial information telephone ICC Customer Services on:0171-426 8511
Key Note Ltd 1998 43 Cash & Carry Outlets 10. Company Profiles
BATLEYS PLC
Address 977 Leeds Road Huddersfield, West Yorkshire, HD2 1UN Tel:01484544211 Company Registration Number 00675326 (incorporated 17th January 1960) Ult. Holding Co L Batley Holdings Ltd SIC Codes 6170 Structure This Huddersfield-based company is one of the leading independent cash and carry groups in the UK. Batleys operates 14 grocery cash and carry outlets and eight pet food depots.
Brand Information The leading own brands are Best Buy and Batley’s Catering.
Recent Developments The company opened its 15th cash and carry outlet in Nottingham in April 1997, while another is scheduled to open in Cardiff in October 1998.
Financial Profile Year End 29/04/95 27/04/96 03/05/97 02/05/98 Weeks 52 52 53 52 Consolidated Y Y Y Y Sales & Profits Sales (£000) 475,509 488,422 538,709 525,219 Pre-tax Profits (£000) 6,008 6,513 9,529 12,294 Profit Margin (%) 1.26 1.33 1.77 2.34 Year-on-Year Growth Sales (%) 1.9 2.7 8.2 -0.6 Pre-tax Profits (%) 4.7 8.4 43.5 31.5 Employees No. of Employees 1,435 1,519 1,611 1,665 Average Remuneration (£) 10,601.4 10,577.4 10,695.0 11,550.2 Sales per Employee (£) 331,365.2 321,541.8 328,084.8 315,446.8
Key Note Ltd 1998 44 Cash & Carry Outlets 10. Company Profiles
BESTWAY CASH & CARRY LTD
Address Abbey Road, Park Royal, London, NW10 7BW Tel:0181 453 1234 Company Registration Number 01207120 (incorporated 11th December 1975) Holding Co Bestway (Holdings) Ltd Ult. Holding Co Bestway (Holdings) Ltd SIC Codes 6150 6170 Structure Bestway is the largest member of the Landmark Cash & Carry group, with 16 depots, mainly located in the South East. The company has around 39,000 registered customers and employs 1,400 people.
Brand Information The company’s leading own brands include Best-In, K2, White Pearl, Best Vin and Park Royal.
Recent Developments In April 1997, the company launched a 3-week own-label promotion with the slogan ‘You can’t get better than free’, offering free products on selected grocery lines.
Financial Profile Year End 30/06/94 30/06/95 30/06/96 30/06/97 Weeks 52 52 52 52 Consolidated N N N N Sales & Profits Sales (£000) 428,420 438,228 449,001 454,244 Pre-tax Profits (£000) 9,268 9,756 9,952 10,941 Profit Margin (%) 2.16 2.23 2.22 2.41 Year-on-Year Growth Sales (%) -0.6 2.3 2.5 1.2 Pre-tax Profits (%) 13.2 5.3 2.0 9.9 Employees No. of Employees 718 737 796 832 Average Remuneration (£) 16,149.0 15,594.3 14,427.1 16,308.9 Sales per Employee (£) 596,685.2 594,610.6 564,071.6 545,966.3
Key Note Ltd 1998 45 Cash & Carry Outlets 10. Company Profiles
BOOKER PLC
Address Portland House, Stag Place, London, SW1E 5AY Tel:0171 828 9850 Company Registration Number 00065519 (incorporated 29th December 1900) SIC Codes 6170 Structure Booker is one of the UK’s leading food distribution groups. The company’s wholesale business operates as Booker Belmont Wholesale, which comprises Booker Cash and Carry (including Nurdin and Peacock) and Booker Wholesale Foods. Recent consolidation of Booker Belmont Wholesale customer base has resulted in a total of 439,000 customers, comprising 110,000 in retail (25%) and 329,000 in catering (75%).
Brand Information Leading own brands include Happy Shopper and Family Choice in groceries, Chef’s Larder in catering, Malt House Vintners in drinks, and Tuck Shop confectionery.
Recent Developments Booker recently completed the strategic review of its cash and carry operation under the Project Heartland programme, which created five regional distribution centres. Recently, the company’s cash and carry operation and food service business was the subject of two unsuccessful bids from leading supermarket chains, Somerfield and Budgens.
Financial Profile Year End 31/12/94 30/12/95 28/12/96 27/12/97 Weeks 52 52 52 52 Consolidated Y Y Y Y Sales & Profits Sales (£000) 3,722,300 4,222,900 4,442,600 5,265,000 Pre-tax Profits (£000) 69,800 82,800 13,000 71,400 Profit Margin (%) 1.88 1.96 0.29 1.36 Year-on-Year Growth Sales (%) 5.7 13.4 5.2 18.5 Pre-tax Profits (%) -18.1 18.6 -84.3 449.2 Employees No. of Employees 21,049 22,191 22,160 24,404 Average Remuneration (£) 11,292.7 11,693.9 12,111.9 12,153.8 Sales per Employee (£) 176,839.8 190,297.9 200,478.3 215,743.3
Key Note Ltd 1998 46 Cash & Carry Outlets 10. Company Profiles
NISA-TODAY’S (HOLDINGS) LTD
Address Park Farm Road, Foxhill Industrial Estate, Scunthorpe, South Humberside, DN15 8QP Tel:01724 282028 Company Registration Number 00980790 (incorporated 29th December 1970) SIC Codes 8395 6300 Structure NISA-Today’s is the UK’s largest buying consortium for independent retailers and wholesalers.
Brand Information The company’s leading brands include Today’s Price, Right Price, Premier Gold, Fun Factory and Breakfast Club grocery lines. Kitchen King is the catering brand, while Cellars International is the drinks brand.
Recent Developments In early 1998, the company’s Wholesale division, Today’s, was relaunched as the Today’s Group, complete with new logo and trading divisions. A major feature of the launch was the development of an interchannel information technology (IT) system linking retailers, wholesalers and central office.
Financial Profile Year End 26/03/94 01/04/95 30/03/96 05/04/97 Weeks 52 53 52 53 Consolidated Y Y Y Y Sales & Profits Sales (£000) 345,360 384,117 410,193 495,452 Pre-tax Profits (£000) 250 552 793 1,171 Profit Margin (%) 0.07 0.14 0.19 0.24 Year-on-Year Growth Sales (%) 10.4 9.1 8.8 18.5 Pre-tax Profits (%) -40.9 116.6 46.4 44.9 Employees No. of Employees 111 116 122 135 Average Remuneration (£) 17,108.1 17,973.3 20,278.7 21,170.7 Sales per Employee (£) 3,111,351.0 3,248,875.0 3,362,238.0 3,600,769.0
Key Note Ltd 1998 47 Cash & Carry Outlets 10. Company Profiles
MAKRO SELF SERVICE WHOLESALERS LTD
Address Charles House, Albert Street, Eccles, Manchester, M30 0LJ Tel:0161 707 1585 Company Registration Number 00973269 (incorporated 25th December 1970) Ult. Holding Co Metro AG (Germany) SIC Codes 6170 Structure Makro is part of the Dutch company, SHV Makro NV, which owns 60% of the business. In the UK, Makro operates from 27 cash and carry depots, serving a wide variety of customers, of which 30% are grocery retailers and 40% caterers. Makro stocks a total of 35,000 lines, of which own brands account for more than 15%.
Brand Information The company’s leading brands are Aro, Charles House, Village Cross and Baltic EB.
Recent Developments At the end of 1997, the German group Metro, which already owned 40% of Makro, purchased the remaining 60% for £1.7bn.
Financial Profile Year End 31/12/94 31/12/95 31/12/96 31/12/97 Weeks 52 52 52 52 Consolidated N N N N Sales & Profits Sales (£000) 856,169 872,892 909,788 905,676 Pre-tax Profits (£000) 6,909 -6,370 -38,668 -2,843 Profit Margin (%) 0.81 -0.73 -4.25 -0.31 Year-on-Year Growth Sales (%) 4.2 2.0 4.2 -0.5 Pre-tax Profits (%) 93.1 † -7.0 92.6 Employees No. of Employees 8,858 8,177 8,545 8,313 Average Remuneration (£) 5,566.6 5,940.6 6,171.6 6,767.2 Sales per Employee (£) 96,654.9 106,749.7 106,470.2 108,947.0
Key Note Ltd 1998 48 Cash & Carry Outlets 10. Company Profiles
WATSON & PHILIP PLC
Address Strathtay House, Dundee Technical Park, Dundee, DD2 1TP Tel:01382 592000 Company Registration Number SC010609 (incorporated 30th December 1919) SIC Codes 6170 6410 Structure The Watson & Philip group comprises three divisions: Alldays Stores Ltd, W and P Foodservices Ltd and Trademarket Ltd. Trademarket is engaged in grocery wholesaling, operating nine cash and carry outlets, mainly based in Scotland. In March 1996, Trademarket left the Landmark buying group and became a member of NISA-Today’s.
Brand Information As part of NISA-Today’s buying group, Watson & Philip utilises the group’s own brand. Its leading catering own brand is Orchard Farm, which was recently introduced into Trademarket cash and carry outlets.
Recent Developments In June 1997, Trademarket launched Trademarket Plus, a promotional initiative for its major retail customers. A new delivery service under the Trademarket Select banner was also introduced, providing independent retailers with a range of chilled, frozen and ambient products, including drinks and tobacco.
Financial Profile Year End 30/10/94 30/10/95 27/10/96 02/11/97 Weeks 52 52 52 53 Consolidated Y Y Y Y Sales & Profits Sales (£000) 440,570 497,836 576,602 637,506 Pre-tax Profits (£000) 10,644 18,468 18,763 21,477 Profit Margin (%) 2.42 3.71 3.25 3.37 Year-on-Year Growth Sales (%) -23.2 13.0 15.8 8.5 Pre-tax Profits (%) -15.0 73.5 1.6 12.3 Employees No. of Employees 5,968 6,400 7,246 6,676 Average Remuneration (£) 5,895.4 6,175.5 6,156.6 7,086.5 Sales per Employee (£) 73,822.1 77,786.9 79,575.2 93,690.5
Key Note Ltd 1998 49 Cash & Carry Outlets 11. Further Sources
11. Further Sources
Associations Scottish Federation of Grocers’ & Wine Merchants’ Associations Association of Convenience Stores (Scottish Grocers’ Federation) ‘an association for private grocers 222-224 Queensferry Road and off-licences’ Edinburgh, EH4 2BN 17 Farnborough Street Telephone:0131-343 3300 Farnborough Fax:0131-343 6147 Hampshire, GU14 8AE Telephone:01252-515001 Provision Trade Federation Fax:01252-515002 ‘for the provisions trade, specialising in dairy products, meat products British Retail Consortium (mainly bacon, ham and ‘represents over 90% of the retail delicatessen) and canned foods’ industry’ 17 Clerkenwell Green 5 Grafton Street London, EC1R 0DP London, W1X 3LB Telephone:0171-253 2114 Telephone:0171-647 1500 Fax:0171-647 1599 Wholesale Confectionery & Tobacco Alliance Ltd Federation of Wholesale ‘publication of a yearbook of the Distributors confectionery and tobacco sectors’ Berkeley House Hope Cottage 26 Gildredge Road Stoneyfields Eastbourne Farnham East Sussex, BN21 4SA Surrey, GU9 8DU Telephone:01323-724952 Telephone:01252-727769 Fax:01323-732820 Fax:01252-727779
Institute of Grocery Distribution Wholesale Grocers’ Association of ‘the leading publisher of trade Scotland information on the UK grocery trade’ ‘grocery wholesalers in Scotland’ Grange Lane 30 McDonald Place Letchmore Heath Edinburgh, EH7 4NH Watford, WD2 8DQ Telephone:0131-556 8753 Telephone:01923-857141 Fax:0131-558 1623 Fax:01923-852531
Key Note Ltd 1998 50 Cash & Carry Outlets 11. Further Sources
Periodicals International Journal of Retailing & Distribution Management Asian Trader MCB University Press Asian Trader Publications Ltd 60-62 Toller Lane Garavi Gujorat House Bradford 1-2 Silex Street West Yorkshire, BD8 8BY London, SE1 0DW Telephone:01274-777700 Telephone:0171-928 1234 Fax:01274-785200 Fax:0171-261 0055 WWW:http://www.mcb.co.uk
Cash & Carry Management Professional Wholesaling Winlove Publications Ltd Hamerville Magazines Ltd 4 High Street Regal House Croydon, CRO 1YA Regal Way Telephone:0181-688 2696 Watford Fax:0181-688 2726 Hertfordshire, WD2 4YJ Telephone:01923-237799 • Convenience Store Fax:01923-246901 • Forecourt Trader • Multiple Buyer Retailers PRO Wholesaler • The Grocery Federation of Wholesale • Off Licence News Distributors William Reed Publishing Ltd 3rd Floor Broadfield Park Berkeley House Crawley 26 Gildredge Road West Sussex, RH11 9RT Eastbourne Telephone:01293-613400 East Sussex, BN21 4SA Fax:01293-613156 Telephone:01323-724952 www://www.foodanddrink.co.uk Fax:01323-732820
Good Food Retailing Retail Grocer Stanstead Publications Ulster Magazines Ltd PO Box 1525 9 Upper Crescent Gillingham Belfast, BT7 1NT Dorset, SP8 5TA Telephone:01232-230425 Telephone:01963-371271 Fax:01232-243595 Fax:01963-371270 Retail Forecourt & Independent Retail News Convenience Store Reed Business Information Ltd Penton Piblications Ltd Quadrant House The Terrace The Quadrant 14 High Street Sutton Holywood Surry, SM2 5AS Co. Durham, BT18 9AZ Telephone:0181-652 3500 Telephone:01232-424004 Fax:0181 652 8932 Fax:01232-424224 WWW:http://www.reedbusiness.com
Key Note Ltd 1998 51 Cash & Carry Outlets 11. Further Sources
Retail News • The Grocer Food & Drink Tara Publishing Co Ltd Directory Poolbeg House • The Grocer Marketing Directory 1-2 Poolbeg Road William Reed Publishing Ltd Dublin 2, Broadfield Park Republic of Ireland Crawley Telephone:00-3531 671 9244 West Sussex, RH11 9RT Fax:00-3531 671 9263 Telephone:01293-613400 Fax:01293-613156 Retail Newsagent www:http://www.foodanddrink.co.uk Newtrade Publishing Ltd Robert Taylor House WCTA: Yearbook 11 Angel Gate Wholesale Confectionery & Tobacco City Road Alliance Ltd London, EC1V 2PT Hope Cottage Telephone:0171-837 3168 Stoneyfields Fax:0171-837 0821 Farnham E-mail:[email protected] Surrey, GU9 8DU Telephone:01252-727769 Scottish Grocer Fax:01252-727779 Peebles Publishing Group Ltd Bergius House Clifton Street General Sources Glasgow, G3 7LA Telephone:0141-331 1022 ACNielsen MEAL Ltd Fax:0141-331 1395 7 Harewood Avenue London, NW1 6JB Telephone:0171-393 5070 Directories Fax:0171-393 5088
European Retail, Wholesale & Ashgate Publishing Co. Ltd International Trades Update Ashgate House Kensington group Unit 2 111 Southwork Street Lower Farnham Road London, SE1 0JF Aldershot Telephone:0171-717 0077 Hampshire, GU12 4DY Fax:0171-717 1000 Telephone:01252-333871 E-mail:[email protected] • Sources of Unofficial UK Statistics — D. Mort & L. Siddall FWD: Yearbook Federation of Wholesale Distributors Berkeley House 26 Gildredge Road Eastbourne East Sussex, BN21 4SA Telephone:01323-724952 Fax:01323-732820
Key Note Ltd 1998 52 Cash & Carry Outlets 11. Further Sources
ASLIB: The Association for Interstat Information Management IRN Staple Hall Davis House Stone House Court 129 Wilton Road London, EC3A 7PB London, SW1V 1LD Telephone:0171-903 0000 Telephone:0171-416 8107 Fax:0171-903 0011 Fax:0171-828 2030 WWW:http://www.aslib.co.uk WWW:http://www.irnxxx.co.uk • ASLIB Directory of Information Sources in the UK HBI UK Information Sources BMRB International Limited Hadley House Hoppenstedt Bonnier 79-81 Uxbridge Road Information UK Ltd Ealing, W5 5SU Field House Telephone:0181-566 5000 72 Oldfield Road Fax:0181-579 9809 Hampton Middlesex, TW12 2HQ British Overseas Trade Board c/o Arlington Management ICC Information Ltd Publications Ltd Telephone:0181-481 8800 25 New Bond Street Fax:0181-941 6014 London, W1Y 9HD msn:ICC_FRMMGR @ msn.com Telephone:0171-495 1940 internet:webmaster @ icc.co.uk Fax:0171-409 2557 • Market Search ICC can provide information via:
Export Market Information Centre • Juniper (WindowsTM online Kingsgate House service), updated daily 66-74 Victoria Street • Plum (Internet), updated daily London, SW1E 6SW • Blueberry (CD-Rom — Credit Telephone:0171-215 4954/4955 Index, Company Index and Broker • Sources of Statistics and Market 50), updated monthly Information • Damson (Bulk Data Supply via EDD, EDI, ISDN, magnetic tape Headland Press and DAT) 1 Henry Smith’s Terrace Headland Cleveland, TS24 0PD Telephone:01429-231902 Fax:01429-861403 • Business Information Sourcebook • How to Access Market Research Information from your Microcomputer
Key Note Ltd 1998 53 Cash & Carry Outlets 11. Further Sources
Databases available via Juniper, Key Note Ltd Plum, Blueberry and Damson Telephone:0181-481 8750 include: Fax:0181-783 0049
• Directory information on all live • A Guide to Buying Market and dissolved companies Research • Analysed financial information of • The Guide: The European every trading British company Directory of Marketing Research • Database of all 4.9 million Sources £165 directorships • The Key Note Guide to Local • Images of the latest directors’ Government Money £35 reports and accounts • The Key Note Guide to • Full text annual reports and Teleworking £35 accounts of UK quoted PLCs • The Key Note Guide to TQM £35 • Stockbroker research • 1992:The Single European Market • Shareholders information £58 • A Guide to Going Online £65 ICC Business Publications Ltd • The Source Book £95 Telephone:0181-481 8720 • UK Market Performance Analysis Fax:0181-783 1940 £225
Business Ratios Plus Related Key Note Reports • Cash and Carry • CTNs • Grocery Wholesalers • Convenience Retailing • The Retail Industry • Own Brands • Supermarkets • Petrol Forecourt Retailing • Wine & Spirit Merchants • Supermarkets & Superstores £249 each • The Take Home Trade £245 each ICC Financial Surveys • Grocery Wholesalers & • UK Drinks Market Supermarkets • UK Food Market • Tobacco & Confectionery • Retailing in the UK Wholesalers • Wholesaling in the UK • The Wine & Spirits Industry £435 each £249 each
Key Note Ltd 1998 54 Cash & Carry Outlets 11. Further Sources
Government Publications Financial Statistics £22.50 monthly H.M. Customs & Excise New Kings Beam House National Food Survey 1996 22 Upper Ground £27.00 London, SE1 9PJ Telephone:0171-620 1313 Monthly Digest of Statistics £12.00 Available from: Social Trends Annual HMSO Publications Centre PC51D £37.95 Room 308 3rd Floor UK National Accounts 1996 51 Nine Elms Lane £28.95 London, SW8 5DT Telephone:0171-873 0011 Other Sources (postal services)
or ACNielsen Nielsen House HMSO Bookshop Headington 49 High Holborn Oxford, OX3 9RX London, WC1V 6HB Telephone:01865-742742 Telephone:0171-873 0011 Fax:01865-742222 (personal callers) Business Information Futures Office for National Statistics 1 Henry Smith’s Terrace 1 Drummond Gate Headland London, SW1V 2QQ Cleveland, TS24 0PD Telephone:0171-533 5678 Telephone:01429-231902 Fax:0171-533 5679 Fax:01429-861403 WWW:http://www.ons.gov.uk ERC Statistics International Ltd Department of Trade and Industry 5-11 Shorts Gardens Business Monitor Series: London, WC2H 9AT PA1003:Size Analysis of UK Telephone:0171-497 2312 Businesses Fax:0171-497 2313 SDA25:Retailing SDA26:Wholesaling Gira Group SDM28:Retail Trade Grilly 01220 Divonne Les Bains Annual Abstract of Statistics France £37.50 Telephone:00-33 50 40 24 00 Fax:00-33 50 40 24 02 Economic Trends www:http://www.gira.com £21.00
Family Spending 1996 £35.95
Key Note Ltd 1998 55 Cash & Carry Outlets 11. Further Sources
IGD Research Services Stats (MR) Institute of Grocery Distribution Gloucester House Grange Lane Smallbrook Queensway Letchmore Heath Birmingham, B5 4HP Watford, WD2 8DQ Telephone:0121-631 3232 Telephone:01923-857141 Fax:0121-631 3637 Fax:01923-852531
International Trade Centre UNCTAD/GATT 54-56 Rue Monbrillant CH-1202 Geneva Switzerland Telephone:00-41 730 01 11 Fax:00-41 733 44 39
Marketpower Ltd 84 Uxbridge Road London, W13 8RA Telephone:0181-840 5252 Fax:0181-840 6173
MSI UK Viscount House River Lane Saltney Chester, CH4 8QY Telephone:01244-681424 Fax:01244-681457
Maurice Palmer Associates Ltd Chesterton Tower Chapel Street Chesterton Cambridge, CB4 1DY Telephone:01223-68705 Fax:01223-324125
The Oxford Institute of Retail Management Kennington Road Kennington Oxford, OX1 5NY Telephone:01865-735422 Fax:01865-736374
Key Note Ltd 1998 56 Cash & Carry Outlets Key Note Research
Key Note Research
Key Note is a leading supplier of market information, publishing an extensive range of consumer, industrial, business-to-business and services titles. With 17 years’ experience, Key Note represents clear, concise, quality market information.
For all reports, Key Note undertakes various types of research:
Online searching is carried out by product code or free search method, and covers the period from the last edition of the report to the current day.
The internal ICC database is used to select company information relevant to the particular report. The financial information extracted may then be backed up by further online searching on particular companies.
Trade sources, such as trade associations, trade journals and specific company contacts, are invaluable to the Key Note research process.
Secondary data is provided by BMRB International (TGI) and ACNielsen MEAL for consumer/demographic information and advertising expenditure. In addition, various official publications published by the ONS, etc. are used for essential background data and market trends.
Interviews are undertaken by Key Note for various reports, either face-to-face or by telephone. This provides qualitative data (‘industry comment’) to enhance the statistics in reports; questionnaires may also be used.
Field research is commissioned for various consumer reports and market reviews, and is carried out by either The Gallup Organization or BMRB International (BMRB Access).
Key Note estimates are derived from statistical analysis and trade research carried out by experienced research analysts. Up-to-date figures are inserted where possible, although there will be some instances where: a realistic estimate cannot be made (e.g. the number of disabled people in the UK); or external sources request that we do not update their figures.
Key Note Publishing Manager, 1998
© Key Note Ltd 1998 57 Cash & Carry Outlets The Key Note Range of Reports
The Key Note Range of Reports
Key Note publishes over 100 titles each year. The total range covers 200 separate titles covering consumer, industrial and service sectors. Title Edition Published Title Edition Published Accountancy 3 1998 Cash & Carry Outlets 14 1998 Access Control 1 1998 Catering Equipment 4 1998 Adhesives 10 1992 CDs & Tapes 1 1997 Advertising Agencies 7 1998 CD-ROM 1 1992 Aerospace 10 1996 Charities 5 1997 After Dinner Drinks 8 1994 Chemical Industry 6 1997 Agricultural Machinery 11 1997 Childcare 1 1998 Agrochemicals & Childrenswear 2 1998 Fertilizers 1 1993 Chilled Foods 9 1998 Airlines 12 1997 China & Earthenware 15 1998 Airports 4 1998 Cider 1 1993 Animal Feedstuffs 9 1997 Cigarettes & Tobacco 13 1998 Automatic Vending 12 1997 Cinemas & Theatres 7 1998 Automotive Services 2 1998 Civil Engineering 7 1998 Autoparts 13 1998 Closed Circuit TV 2 1998 Clothing Manufacturing 11 1998 Baby Products 8 1994 Clothing Retailing 2 1997 Baths & Sanitaryware 8 1996 Commercial Radio 5 1998 Betting & Gaming 11 1998 Commercial TV 5 1997 Bicycles 8 1995 Commercial Vehicles 9 1997 Biotechnology 4 1991 Computer Hardware 2 1997 Biscuits & Cakes 8 1996 Computer Services 4 1997 Book Publishing 13 1997 Computer Software 2 1998 Bookselling 9 1998 Confectionery 17 1998 Bottled Waters 3 1995 Consumer Magazines 9 1997 Bread Bakers 13 1997 Contract Catering 11 1998 Breakfast Cereals 9 1995 Contract Cleaning 13 1998 Breweries & the Contraceptives 1 1993 Beer Market 17 1998 Convenience Retailing 9 1996 Bricks & Tiles 11 1996 Corporate Giftware 1 1997 Bridalwear 1 1997 Corporate Hospitality 1 1998 Builders’ Merchants 10 1996 Cosmetics & Fragrances 12 1996 Building Contracting 4 1994 Cosmetic Surgery 2 1997 Building Materials 8 1997 Courier & Building Societies 10 1996 Express Services 9 1998 Business Press 9 1996 Credit & Other Business Travel 7 1997 Finance Cards 11 1996 Bus & Coach Operators 3 1997 CTNs 7 1994 Cutlery 8 1991 Cable & Satellite TV 7 1998 Cabling & Wiring 1 1996 Dark Spirits Cameras & Camcorders 2 1993 & Liqueurs 1 1997 Camping & Caravanning 11 1997 Debt Management Canned Foods 11 1997 & Factoring 12 1998 Car Dealers 12 1997 Defence Equipment 7 1998 Carpets & Department Stores 7 1990 Floorcoverings 13 1996 Design Consultancies 2 1996
© Key Note Ltd 1998 58 Cash & Carry Outlets The Key Note Range of Reports
Title Edition Published Title Edition Published Direct Marketing 11 1998 Health Clubs & Disposable Leisure Centres 2 1997 Paper Products 7 1997 Health & Fitness Distillers (Whisky) 10 1994 Equipment 4 1990 Distillers Health Foods 18 1998 (White Spirits) 7 1990 Heating, Ventilating & DIY 10 1992 Air Conditioning 7 1997 Domestic Heating 10 1997 Heavy Industrial Cleaning 1 1996 Dry Batteries 8 1997 Home Furnishings 12 1998 Dry Cleaning & Home Leisure 1 1993 Laundry Services 1 1998 Home Shopping 6 1998 Horticultural Retailing 13 1998 Electrical Contracting 5 1998 Hot Drinks 5 1992 Electrical Goods Retailing 2 1991 Hotels 13 1998 Electricity 1 1996 Housebuilding 12 1997 Electronic Component Household Appliances Distribution 10 1998 (Brown Goods) 7 1996 Electronic Component Household Appliances Manufacturing 9 1997 (White Goods) 13 1998 Electronic Games 1 1994 Household Furniture 13 1998 Employment Agencies 13 1998 Household Soaps Equipment for the Disabled 1 1995 & Detergents 11 1997 Equipment Leasing 10 1995 Estate Agents 9 1997 Ice-Creams & Ethnic Foods 8 1997 Frozen Desserts 5 1996 Exhibitions & Conferences 5 1998 In-Car Entertainment 1 1995 Independent TV Fast Food & Home & Film Production 1 1991 Delivery Outlets 14 1997 Industrial Fasteners 6 1997 Fibres 6 1997 Industrial Pumps 4 1994 The Film Industry 2 1998 Industrial Valves 6 1997 Finance Houses 10 1996 Insulation Products 7 1993 Fire Protection Insurance Brokers 7 1992 Equipment 4 1997 Insurance Companies 8 1998 Fish & Fish Products 8 1996 Internet Usage in Business 2 1998 Fitted Kitchens 7 1996 Internet Usage in the Home 1 1996 Floristry 1 1998 IT Training 4 1998 Flour Confectionery 5 1990 Food Flavourings Jewellery, Watches & & Ingredients 7 1996 Fashion Accessories 15 1998 Football Clubs & Finance 1 1997 Kitchenware 3 1997 Footwear 11 1997 Franchising 6 1998 Laboratory Equipment 1 1997 Freight Forwarding 11 1998 Lighting Equipment 12 1997 Frozen Foods 16 1997 Lingerie 3 1997 Fruit Juices & Low-Alcohol Drinks 3 1995 Health Drinks 7 1997 Fruit & Vegetables 13 1998 Machine Tools 11 1997 Further & Mail Order 8 1991 Higher Education 1 1996 Management Consultants 6 1998 Garden Equipment 8 1998 Meat & Meat Products 13 1998 Giftware 7 1997 Mechanical Handling 7 1996 Glassware 9 1997 Medical Equipment 12 1998 Greetings Cards 14 1998 Men’s Magazines 1 1996 Metal Recycling 1 1996 Hand Luggage & Milk & Dairy Products 13 1997 Leather Goods 9 1997 Mixed Retail Businesses 7 1996
© Key Note Ltd 1998 59 Cash & Carry Outlets The Key Note Range of Reports
Title Edition Published Title Edition Published Mobile Phones 2 1998 Retail Chemists Mortgage Finance 2 1997 & Drugstores 9 1998 Road Haulage 15 1997 Networks 1 1996 Rubber Manufacturing Newspapers 13 1997 & Processing 7 1995 New Trends in Retailing 2 1990 Nursing Care 1 1996 Sauces & Spreads 6 1997 Scientific Instruments 5 1992 Office Furniture 14 1998 Scrap Metal Processing 8 1995 Online Databases 5 1990 Security 7 1991 Ophthalmic Self-Assembly Furniture 7 1992 Goods & Services 11 1997 Shopfitting 8 1998 OTC Pharmaceuticals 8 1997 Short Break Holidays 2 1998 Own Brands 7 1997 Showers & Shower Accessories 3 1994 Packaging (Food & Drink) 3 1998 Slimming Market 7 1998 Packaging (Glass) 10 1995 Small Domestic Electrical Packaging Appliances 7 1998 (Metals & Aerosols) 10 1997 Snack Foods 12 1997 Packaging Soft Drinks (Carbonates & (Paper & Board) 11 1998 Concentrates) 12 1996 Packaging (Plastics) 12 1998 Sports Clothing Paints & Varnishes 12 1998 & Footwear 7 1995 Paper & Board Sports Equipment 10 1997 Manufacturing 11 1997 Stationery Passenger Shipping 4 1993 (Personal & Office) 14 1998 Pensions 2 1998 The Steel Industry 12 1996 Perishable FMCGs 1 1994 Stockbroking 4 1996 Personal Computers Supermarkets & & Workstations 8 1990 Superstores 15 1998 Pesticides 7 1990 Pet Foods 11 1995 The Take Home Trade 11 1996 Petrol Forecourt Telecommunications 13 1998 Retailing 1 1997 Timber & Joinery 14 1998 Photocopiers & Toiletries 11 1996 Fax Machines 9 1997 Toys & Games 15 1997 Photographic Services 1 1995 Tourism in the UK 7 1991 Plant Hire 10 1995 Tourist Attractions 4 1998 Plastics Processing 8 1997 Training 7 1998 Premium Lagers, Travel Agents & Overseas Beers & Ciders 3 1997 Tour Operators 13 1998 Prescribed TV & Video Rental 1 1994 Pharmaceuticals 12 1997 The Under-5s Market 1 1997 PR Consultancies 2 1990 The Under-16s Market 1 1998 Printed Circuits 7 1993 Printing 4 1997 Vehicle Leasing & Hire 16 1998 Prison Services 1 1994 Videoconferencing 1 1998 Private Healthcare 14 1998 Video Retail & Hire 5 1995 Process Plant 7 1998 Vehicle Security 3 1998 Protective Clothing & Equipment 2 1998 Wallcoverings 13 1998 Public Houses 14 1998 Water Utilities 2 1997 Waste Management 3 1998 Rail Travel 2 1998 White Spirits Ready Meals 4 1998 & Speciality Drinks 1 1997 Records & Tapes 7 1990 Windows & Doors 13 1998 Restaurants 13 1998 Wine 13 1998 Retail Branch Banking 9 1997 Women’s Fashions 6 1991 Women’s Magazines 9 1995
© Key Note Ltd 1998 60 Cash & Carry Outlets The Key Note Range of Reports
Title Edition Published Title Edition Published UK Pet Market 1 1994 Market Reviews, Euroviews and Guides Personal Finance Broadcasting in the UK 2 1995 in the UK 5 1996 Business Information UK Pharmaceutical in the UK 2 1998 Industry 2 1995 UK Catering Market 10 1997 UK Publishing 6 1998 UK Chemical Industry 2 1993 Retailing in the UK 7 1998 UK Clothing & Footwear 6 1996 UK Security 6 1997 UK Computer Market 6 1997 UK Soft Drinks 2 1994 UK Construction UK Sports Market 6 1996 Industry 6 1997 UK Telecommunications 1 1992 Corporate Services UK Toiletries & in the UK 1 1994 Cosmetics Market 1 1992 UK Defence Industry 4 1997 UK Travel & Tourism 6 1997 UK Distribution 5 1996 UK Wedding Market 1 1993 UK DIY & Home Wholesaling in the UK 1 1994 Improvements 5 1997 Youth Market UK Drinks Market 10 1997 in the UK 1 1994 UK Education Industry 2 1994 Eastern Europe 1 1990 The Energy Industry Telecommunications in the UK 3 1998 in Europe 2 1990 UK Food Market 10 1998 Toiletries & The Grey Market Cosmetics (Euro) 1 1990 in the UK 1 1994 The Guide 2 1996 UK Healthcare 6 1997 Guide to Going Online 1 1990 UK Household Market: Guide to Marketing Research Furniture Fittings & Decor 1 1992 in Europe 1 1990 UK Household Market: Household The Source Book 2 1990 Appliances & Housewares 1 1992 The Key Note UK Insurance Market 4 1997 Guide to Local UK Leisure & Recreation 8 1997 Government Money 1 1994 UK Motor Industry 6 1998 The Key Note Multimedia in the UK 1 1994 Guide to Teleworking 1 1995 UK Office Equipment 4 1998 The Key Note UK Packaging Industry 3 1993 Guide To TQM 1 1993 Passenger Travel in the UK 2 1995
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