Blakemore Retail Managing Director

Home , Londis (Ireland), Spar (retailer)

Rupert Morris Trading Director

Agenda

Welcome – Rupert Morris Formats – John Murray

Him! – The Convenience Market – Ed Sibley Insight – Chris Wisson

An introduction to BTP – Jerry Marwood Space Planning – Adrian Gray

An introduction to BR – Stuart Adkin RPS – Neil Mercer

Selling Plan – Sarah Ellis Development – Louis Drake

Promotional Plan – Tracey Simpson Class Leading IT – Robert Geere

11:30 COFFEE BREAK Working In Partnership – Rupert Morris

13:00 NETWORKING LUNCH

Q&A Sessions / Networking

Career History

Trading Controller

Purchasing Director

Purchasing Development Director

Commercial Director

Convenience Sector Leading symbol group in growth

Speakers CHANGE, CHOICE AND CHALLENGES

Ed Sibley head of client services him!

Choice

Loyalty

41%

29%

20%

7% 5%

1-2 retailers 3-4 retailers 5-6 retailers 7-8 retailers More than 8

How many different retailers have you used in the last 4 weeks?

Technology & fast Health and mind-set People power and consumption conscience

This is affecting footfall drivers now…and will continue to do so

“I may not buy the healthy option…but I expect to have the choice”

But health means more than sugar content….

Well- Low calories Low salt Fresh 29% Low fat balanced 44% 24% 43% 23%

Low carbs Low sugar Plant based Natural Organic 7% 14% 34% 12% 21%

1 in 3 UK shoppers are concerned by food waste to a GREAT EXTENT!

© him! Ltd 2016. All rights reserved WHAT HAS WORKED WELL IN THE PAST MAY NO LONGER WORK SO WELL IN THE FUTURE 1 in 4 10% 6 in 10 of those under 25 of UK adults claim to want their local store year’s old are tee- be dairy intolerant to help them reduce total food waste

TPD2

Quickly embracing new social trends Searching out unusual spaces

Social Hub Spaces Innovative formats

Targeting growth missions with strong brands

85% of top-up missions are shopped with a particular consumption occasion in mind

We consume by occasion ..and shop by mission

Successful brands must activate and merchandise appropriately to target and drive relevance at the point of purchase

Bigger baskets

Tonight’s Entertaining tea Top Up

Lower visit Feed me now Higher visit frequency frequency

Snacking Treat Newsagent Gifting Smaller baskets

223

149 149 137 134 126 119 113

Hot drinks to- Food to go Spirits and Newspapers Health and Fresh Fruit and National Chilled foods go Liqueurs and magazines Beauty Veg Lottery (ex milk)

% baskets over 5 items when category x is purchased

49%

33% 27%

15%

5+ items (net)

Average Spirits Chilled Foods Fresh Fruit & Veg

Highest awareness of any Highest ratings of any symbol group symbol group by shoppers

On a scale from 1-10, how likely would you be to recommend your symbol group to other retailers? 8, 9 or 10 out of 10: 67% 66% 67% 62% 56%

46% 42% 39% 36%

Blakemore TP Group A Group B Group C Group D Group E Group F Group G Group H

1. How can your categories support growth in these missions?

2. Do you drive footfall, basket size or create a point of difference?

3. Do you have a store format strategy to reflect a true convenience estate?

© him! Ltd 2016. All rights reserved Jerry Marwood Blakemores Trade Partners Managing Director • Lots going on some of which we will be discussing today • Our philosophy; pay our taxes in the U.K. Give 2% of PBT to charity and then reinvest the rest back into the business &

• We work together with SPAR to create a sales strategy for our retailers • Trading and marketing are shared across both divisions to maximise insight • Each division needs something slightly different in order to optimise their full potential • I'm going to start off by talking about BTP and Stuart will deal with BR Recent Performance

Sales Growth LFL Trend Net Margin

£ % %

2014-15 2015-16 2016-17F 2014-15 2015-16 2016-17F 2014-15 2015-16 2016-17F

Sales (£) Trend LFL % Trend Margin (%) Trend BTP's opportunity in a crowded market

of stores in the c-market are owned by independent 74% retailers and of that 70% own their premises

75% of operators are first time investors

54% are described as white British, 43% describe themselves as Asian or British Asian

Source: ACS Local Shop Report 2016 BTP's opportunity in a crowded market • Choice for retailers is both increasing and potentially polarising

• Propositions are becoming ever more sophisticated Retailers by Profile

Store Type Ownership Structure 782 Spar Stores

Independents / Sole Traders Convenience Transient / Forecourt National Accounts Daily Essentials Urban / City Multiples (3+) BTP's Purpose within the AFB Group Class Leading Technology Support Solutions

• Biggest single investment – £5m this year alone • More details later from our CIO Robert Geere • Ranging from Digital B2B to EPoS to CRM • Why this should interest / encourage / please you… Best Business Partnership Brilliantly Executed

• We separate finders from keepers • Our retailers need comprehensive business support not just a supply chain • Our objective is to have the best BDMs in the industry Ethical, Competitive Wholesale and Retail Pricing

• Ethically sourced and competitive • Investing resource and insight in our capability • Buying at the right price • Selling at the optimum price Innovative Formats by Location

• Space, range and price determines the type of store format – design should be common SPAR • Best in the industry – cutting edge, leadership status • Aspirational for shoppers and retailers • Multi format approach – a SPAR solution for as many different locations as there exist Leading Convenience Brands

• SPAR is still the most recognised convenience brand in the country • Our private label strategy has enhanced “consideration” for shoppers through improving quality and extending choice • We also operate alongside yours and many other high profile brands

• We will also innovate and grow our own Investing in Staff, Customer & Community for the Long Term

• We make long term decisions • We know you can’t get reward without investment • We cannot exist in isolation. We’ve chosen a collaborative business model; SPAR, The Guild system etc We’ve got a plan that has helped us get here today

But what happens next………? • The market is going to change at speed and in scale. We believe that innovation is going to be the key

As you listen to todays presentations I want you to consider what value you can add, what insight you can bring and whether you want to innovate or stagnate. Stuart Adkin Blakemore Retail Managing Director

Blakemore Retail

295 stores Blakemore Retail

4 Formats • 13 Transient • 13 Express • 205 Neighbourhood Convenience • 64 Neighbourhood Fresh Blakemore Retail

Foodservice • 144 Daily Deli or FTG • 52 Subway and Greggs • 144 Costa Coffee • 20 Bargain Bites Blakemore Retail

Partners • 15 Forecourts • 3 BP • 3 Shell • 3 Jet / SPAR • 6 Texaco • 96 Post Offices • 7 Universities and Airports Re-Investing in our Estate Refits and WABU’s

So far this financial year… • 9 New stores • 15 Refits (£150k - £300k) 16-17 total • 26 Wash And Brush Up’s £8.5 million Wash & Brush Up

Typical Store increase +3%-5% Medium Refit

Typical 5%-8% increase Full Refit Typical 10%-15% increase Relocation of Existing Store Coedpoeth Typical 25%-50% increase SPAR / Jet Fuel Average Store Newark Increase +5% Average Fuel (ltrs) Increase Ashgate +15%

Buckle y New Store Laceby Lodge Services

• Many years of planning… • £2.5m freehold development

Opened 10th August 2016 Laceby Lodge Services

6,500 customers a week Laceby Lodge Services Laceby Lodge Services Store Investment And even more for 2017-18… £11million • 5 New Build stores • 10 New (trading) stores • 20 Refits in excess of £150k • 30 Refits between £20k and £50k Aldridge

• Foodservice Solution • Location – Served • Vacant Public House, With Ample Parking • Customization & Personalisation • A Strong Mix of Commercial & Residential Traffic • Hot & Cold Solutions • Good “Passing” Trade – Self Serve • Quick Grab & Go • Core Selling Lines Initiatives Sales Building Initiatives

• 10 Store Basket Builder trial • SPAR Brand 3 for 2 event • Breakfast Meal Deal • Frozen Meal Deal • Tonight's Tea Meal Deal • Large Pack Initiative New Range Initiatives Free From Range (Gluten, Dairy and Wheat Free) Chiller Grocery Units

American Range sweets and snacks A Great Team Charity and Community

Over the last five years our staff have supported: • 140 projects • 651 volunteers • 6,500 hours Over the last 10 years we have raised for the NSPCC: • £2.5 million Awards 2016 • Investors In People Silver • Grocer Gold • Independent Retail Chain • Sales Assistant of the Year • Best Multiple Symbol Sales Assistant • Retail Industry Awards • Chilled Retailer • Food To Go Retailer – Wrexham • Store Manager - Wrexham • Forecourt Retailer – Fairfield • Multiple Community Retailer • CTP Awards • Best Convenience Retailer Fresh & Chilled • Best Convenience Retailer Promotions • Forecourt Trader Awards • Mildlands up to 4MLPA - Newark • NSPCC Childhood Champions Awards • Corporate Partner for West Midlands Opportunities…

• Support us for Events  • Give us the correct new products and ranges for our stores  • Help us to get the best from the space we have  • How do we engage our ‘services’ and ‘foodservice’ customers  • Help us to invest in price 

Talk to the Trading Team about working closer with Blakemore Retail    What We Deliver

• Managed Chain  • Engaged and effective teams  • Full in-store compliance on Plano-grammes and Proms  • Ability to respond quickly on trials  • Allocations / Pre-sells to all stores  • Developing Central Ordering  IMPLEMENT  INVEST  BR Conference

• Shaping the Future……… • 14th & 15th June 2017 • Hilton Birmingham Metropole • 600 Delegates including • 300 Store Managers • 150 AFB Managers and Decision Makers Thank You Sarah Ellis Blakemore Trade Partners Marketing Director

4.6 Average number of channels claimed to be used in the last 11.99 98% month Average number of stores claimed 90% to be used on the last month 79%

60% 48% 44% 41%

Larger formats Convenience High street discount Food discount Specialist / ethinc stores* Online Frozen food specialist

Base: 1,700+ ALL shoppers, Dec’16. *Specialist stores include butchers, greengrocers, bakers etc. Equates to an additional

Our customers are spending £1bn an additional 9.2% in other of retail sales convenience stores SPAR have 4.3% share of the customers wallet Customer Spend The The time products that I have I eat Part of your daily life The The budget household I have I live in Multi Mission Regular Focused Planned Shopper Occasional Top up Distress Planned Shopper Distress Occasiona Top up Shopper l Top up Shopper Shopper

Blakemore gained 0.5% - PT Redeemer share from discounters and convenience

Local Marketing Partners Working in Collaboration Nicola Davies Sales Manager

Tracey Simpson Promotions Controller Career History I understand your “purpose” today…

• National Account Manager • Business alignment? • Trade Marketing Manager • How can my business help? • Category Manager • Maximise opportunities? Why do Blakemore need a Promotions Controller?

Did you buy on Promotion?

21%

16% Cliché in every business?

Consumer

Selling Shopper Plan Missions

Key Monies! Last Year!

Margin! Budget!

… and promotions just one part of a very busy day! Each Promotion Period created in isolation

Selling Plan Selling Plan Selling Plan Selling Plan Last Year Last Year Last Year Last Year

Prom 1 Prom 2 Prom 3 Prom 4 Unwritten rules about Promotion space in store…

Category focused not shopper mission How will the Process change? Quarterly Planning Meetings

Purpose To achieve full business agreement to Quarterly Selling Plan, targets and retail promotional proposition New cyclical process with Analysis and Insight at the core

Central Office Implement Analysis

Selling Plan Brief The Selling Plan… Full year plan for all Promotion Space in store

A consistent approach to the Selling Plan themes throughout the store. Seasonal Events included in the Promotion Planning Process… The Consumer and Shopper Missions shape the brief for each Prom Period… Detailed plans of Prom Space for every Prom Period

Includes Seasonal Space Initiatives such as Big Basket Steal

Based on Shopper Missions! What would I take away today?

• Themes • JBP • Consumer • Brand Plans • Shopper Mission • NPD

Where are the “win win” opportunities? Satisfy the Promotion Brief…

Promotion Brief Theme P Shopper Mission P Consumer Proposition P Commercials P Local Marketing Opportunity P

John Murray Blakemores Trade Partners Head Of Formats History

• Joined Capper & Co 1986 in Store Development Team • BDM, Marketing Exec & Operations Exec with company owned stores moving to him! in 2002 • SPAR UK 2003 – 2012. Commenced with National Accounts role, then Marketing Controller and Store Development Controller. Led Stores of the Future Programme • Joined AFB 2012 as Regional Account Manager, then Regional Sales Director. Currently head of Formats What are Formats?

• Distinct type of store – differentiated • Catering for different shopper needs • Live, Travel, Work, Temporary • Different hierarchy of shopping missions • Range, Space, Price Formats: leading the way

• Six Flagship stores • Avg. 25% sales uplift • Avg. 25% cash GP uplift • ROI up to 30% One size DOES NOT fit all Improve Profitability Our strengths are:

• We understand our customer better • We understand our challenges and opportunities better • We have the infrastructure and the desire to deliver for our customers and retailers better Formats – differentiated business

SPAR Store Formats

Supermarket

48 4 Neighbourhood Fresh

Neighbourhood Convenience 100 66 Urban / City Centre

Transient 14 441 Daily Essentials

Supermarket – shopping missions and ranging

Proposition Mix (Relative to Avg. AFB Independent SPAR) Shopping Mission Priority

Higher Rank Shopping Mission

1 Tonight’s Tea

2 Everyday Essentials Average

3 Daily Life

4 Entertain Me

Lower % Eat Now % Eat Later Retail Price Basket Spend % Services Promotions Avg. SKU No. 5 Feed Me Now City Centre – shopping missions and ranging

Proposition Mix (Relative to Avg. AFB Independent SPAR) Shopping Mission Priority

Higher Rank Shopping Mission

1 Feed Me Now

2 Tonight’s Tea Average

3 Entertain Me

4 Everyday Essentials

Lower % Eat Now % Eat Later Retail Price Basket Spend % Services Promotions Avg. SKU No. 5 Daily Life

Format Strategy

Proposition Model Stores Process

100 Day Plan

C Awareness of SPAR in the UK

SPAR 75% Costcutter 70% Londis 65% Spar has the highest Nisa 64% awareness levels vs. any Budgens 53% other symbol retailer with Premier 50% One Stop 50% 75% of shoppers aware of McColls 49% the fascia (90% amongst Little Waitrose 41% adults aged 55+). Bargain Booze 40% Martins 38% Mace 32% Best One 17% Best In 11% Todays 9% Lifestyle Express 8%

Source: HIM! Retail Spotlight on SPAR – Feb 2016 E Start with the shopper.. “Which of the following products do you regularly buy from a convenience store (ie at least once a month)?”

57 55 45 37 36 35 35 34 30 28 % 23 17

Source: Mintel Convenience Stores UK Report – April 2016 D Purpose: Optimise cash profit

Optimise our ranges by Format to flex our focus on fresh food, Range and foodservice including an enhanced Tonight’s Tea mission

Optimise our space efficiency to enable our range requirements Space to be met

Optimise our price proposition by Format drive our sales density and Price of course underpin our objective of optimising cash profit 2016 Five Trends HEALTH AT THE HEART OF THE STORE

THE CHANGING THE POWER TIDE OF VOICE

MISSION POSSIBLE EMOTION VS PROMOTION

Source: IGD Research Health at the Heart of the Store Mission Possible

E Changing Tide – East to West

E SPAR Lowdham Development

D SPAR Pwllheli Development ‘Feed Me Now’ Area

D Shopping List

Missions & Solutions Expertise • Tonight’s Tea • Innovation • Fresh Foods • Tests & Trials • Bakery & ISB • Display efficiency • Planned Top Up • Space efficiency • Food For Now / on the move • Insight Chris Wisson Insight and Pricing Controller

You can help to shape our new insight team

INSIGHT AND PRICING CONTROLLER

1 Pricing insight

2 Promotion insight

3 Category range reviews 4 Consumer research Collaborating with our Suppliers

“We develop business plans with suppliers to support mutual growth”

“We work together to improve product knowledge” Insight central to everything we do

Trading

Pricing Marketing and Promos INSIGHT

Ranging and Store Merchandising Formats Insight vs Observation

of convenience sector shoppers think that there should 41% be more variety in c-stores’ food to go.

Insight is all about moving beyond observation and asking the ‘whys?’ and ‘so whats?’ We need to understand how people really think Getting under the skin of…

• Why do people shop at SPAR? • How do people navigate our stores? No two stores are the same • Are the range and pricing strategies right for individual stores? • How can we increase basket spend among shoppers? Working in Partnership

1 Sharing data/information where possible (eg promo insight)

2 Building more structured and consistent lines of communication

3 Helping you to understand SPAR customers more clearly

4 Where do you see opportunities and threats in your categories?

5 Helping you to plan further ahead – greater transparency Adrian Gray Category Merchandising Controller 1995 to 1997 • Traffic Management • Double Yellow Lines • Speed Limits…

• Graduate Programme • Category Merchandiser 1997 to 2001 • Tiling Accessories • Timber • Doors

• Category Merchandiser • Health & Beauty • Homebake 2001 to 2010 • Supermarket / Convenience Teams • Regional Space Planner • Macro Space / Store Layouts • 200 Stores • Refits / Wash & Brush-ups What do we do

• Identify the correct format for each individual store

• Use efficient macro space and ‘mission- led’ layouts What do we do

• Understand the customer and shopping missions What do we do

• Optimise store performance: • Sub Group Space • Product distribution • Create consumer centric ranging solutions

How and Why we need to work in partnership Our Objectives

• Improve Sales Mix

• Increase Footfall

• Increase Basket Spend

• Reduce Costs Thoughts from him!

NO SUCH THING AS AN AVERAGE NO SUCH THING AS AN SHOPPER AVERAGE C-STORE Changing shopper demographics, Location, size, urban, rural, attitudes & life-styles neighbourhood, transient

PROVIDE SOLUTIONS, NOT PRODUCTS

DRIVE FOOTFALL AND BASKET SPEND

CREATE SHOPPER LOYALTY

Source: him! CTP 2016 A.F. Blakemore Group in context…

• Over 1000 stores across the Group • Diverse portfolio • Geographically • Demographically • Different Primary Store Shopping Missions A.F. Blakemore Group in context…

• And that’s before you take store size into account! • Correct Range Selection and Planograms by store format is key What do we need to do - Together

Store Future Formats Trends Shopper Category Insight Strategy

A.F. Implement Blakemore

Current Review Market Range Review Process… • Customer Insights

• Market / Convenience / AFB Sales Analysis

• Competitor Review (By Format)

• Range and Format Strategies 16 Week Process Week 16 • Merchandising Strategies

• Process Review Great Opportunity…2017 Range Reviews Launch Date 9th January • Chilled Foods (Protein & Dairy) 30th January • Canned & Packet Grocery 20th February • Beer & Cider (Chilled & Ambient) 13th March • Biscuits 3rd April • Household 24th April • Soft Drinks 15th May • Produce 5th June • Spirits Great Opportunity…2017 Range Reviews Launch Date 26th June • Hot Beverages 17th July • Crisps, Snacks & Nuts 7th August • Bread and Morning Goods 28th August • Wine 18th September • Confectionery 9th October • Breakfast Cereals 30th October • Cakes 20th November • Petfood Working in Partnership To Shape The Future… for us both to…

1 Understand Total Market (and Convenience)

2 Understand the Convenience Shopper

3 Understand the Shopper needs in our Store Formats

4 Identify Customer Offer by Store Format

5 Create ‘best in class’ Ranging Solutions Next Steps…

'YOUR' Category Team

OUR' Category Team Next Steps…

• Understand the process and see how you can help Neil Mercer Blakemore Trade Partners Sales Director RPS – the Principle

Door Eendrachtig Samenwerken Profiteren Allen Regelmatig RPS – the Concept The Facts

782 Trading independent stores

£700M Approx retail worth

63% Of wholesale turnover Performance LFL performance comparision 4 3.5 3 2.5 2

Percentage 1.5 1 0.5 0 1 2 3 4 5 6 Trading Period

RPS Non RPS

1% RPS – the Principle

Door Eendrachtig Samenwerken Profiteren Allen Regelmatig Louis Drake Blakemore Trade Partners Development Director Our Objectives

“Recruit & Retain Happy & Profitable Retailers…” Our Structure

Development Director

3 x Head of New Head of Administration Development Business Formats Manager Manager

Daily Deli 2 x Formats Development Administration Manager Manager Assistant

9 x 3 x Recruitment Merchandising Managers Teams 2 x Commercial Managers Head Count: 40 Who

Independents Who

National Accounts Partnership

Individuality Property

Consistency Training

Flexibility Partnership

Retail Support Brand

Finance Development

Payroll Cost Saving Partnership

£2,000,000 Partnership Recruitment Numbers of Stores Recruited 140 Total Total Total Total Total

120 57 72 85 195 125

100

0 2012-13 2013-14 2014-15 2015-16 2016-17 Est

Recruited Stores Process Improvement

Lead Trading

Our Objectives

“Recruit & Retain Happy & Profitable Retailers…” Robert Geere Chief Information Officer The Strategic Vision

Integrated Solutions Become the Embrace & Benefit From New Innovation Leader Technology – Quickly & Cost Effectively in Convenience One System from Trading Floor to Retail Floor Measure & Relevant Monitor Activity, Enhance Information Prompting Driving Better & Managing Decisions For Accountability at Your Your Brands Fingertips the Exceptions The Strategy Elements

• CRM

• B2B Digital

• One Logistics System

• Commercial One Logistics System

Any Product, to any customer, from any warehouse, on any vehicle = A Slicker Supply Chain CRM Initial Scope

• Delivery of a tool for Field Sales Teams CRM – Just One of the Benefits

• Increase spend from existing retailers

• Target the right product at the right time • Manage the workflow – make sure the action happens The Digital Programme

Strategic Direction

CRM Online Order Mobile E-Billing Claims Ordering Sales E-Statement Service SRS Tracking Apps Capture Data E-GRN Desk

Thought the ordering app was great as well

The app to order the show offers was a brilliant idea and Great deals at the very easy to use trade show that we could all access via the app. A fantastic idea

Commercial System

One System from Trading Floor to Retail Floor Services & Innovation

Embedded Optimisation Embedded Advanced Central Management Forecasting & Ordering

Store Task Management e.g. Temperature Checks Services & Innovation (In-Store)

Low Cost Self Serve Self-service Apps for Mobile POS with integrated mobile Solutions sales / pre-ordering /self scanning card terminal

Finger Print POA Integrated Automated Tobacco Disepensers World Class BI The Commercial System- Headlines

• Improved In-Store Stock Availability

• Centralised store ordering

• Improved Warehouse Stock Availability

• Faster, relevant and easy to read sales data The Commercial System- Headlines • Greater in-depth understanding on margins, managing by exception • Maximising the Halo effect

• Minimising the impact of cannibalisation

• Analysing elasticity

• Targeted range and promotions decisions

• Providing modelling and monitoring tools

World Class Solutions Visma Retail Customers

60-70% market share 60% market 30% market in Norway / Sweden Share in Sweden Share in Nordics FMCG / Grocery Retail PharmacyPharmacy Retail SpecialisedSpecialized Tradetrade Fashion Retail Summary Summary

We’ve started…

Speakers

ADVANTAGE GROUP Who Are the Advantage group Established in 1988, Advantage is a business-to-business market research company who has pioneered the concept of business relationship benchmarking.

What Do they do? Advantage Report combines extensive quantitative data with qualitative feedback to provide insight from the perspective of key suppliers. About The Advantage Report® Mirror Benefits Of Participating In The Programme

MAIN PROGRAMME MIRROR PROGRAMME (RETAILERS PROVIDING FEEDBACK TO SUPPLIERS) (SUPPLIERS PROVIDING FEEDBACK TO RETAILERS)

• OBJECTIVE measure of ABSOLUTE performance. • Helps improve communication and understanding. • A measure of comparative performance • Jointly sponsored approach is time efficient for the • Used to identify COMPARATIVE STRENGTHS and retailers. IMPROVEMENT OPPORTUNITIES. • Regular quantitative feedback provided by key suppliers on • Advantage report is used instead of individual a range of factors. suppliers surveys. 2 WAY PROCESS • Regular qualtitative feedback provided by key suppliers on • Process is simple, efficient and unobtrusive. a range of factors. • Manufacturers can comment on issues in a way that won’t • Joint commitment and input mutually beneficial. compromise relationships. – Can be used as part of the SUPPLIER MANAGEMENT PROCESS. • Provides an opportunity to assess trading partners • Programme can include retailer specific questions in follow- across a range of functions. up interviews with suppliers. • Annual nature of the programme enables trends and • Annual nature of the programme enables trends and performance to be monitored. performance to be monitored. • Can be used to set kpi’s for teams and functions. About The Advantage Report® Mirror Process

On-Line Process Follow-Up Interviews Questionnaires About The Advantage Report® Mirror Performance Practices Rated

Overall Performance Supply Chain Management

Business Relationship Personnel/Processes

Personnel/Organisation Payment Process

Category/Business Development A F Blakemore Trade Partners/Blakemore Retail (Spar)

Excl. The BuyCo Henderson Wholesale

Spar UK WH Smith High Street WH Smith Travel Retail A F Blakemore Trade Partners/Blakemore Retail (Spar) High Street & Symbol (Convenience Channel) All Suppliers Summary By Performance Area

PERCENTAGE OF RATINGS Net Gap to Rank (1) (2) Gap to #1 PERFORMANCE AREAS Favourable Mid-Range Unfavourable Favourable Average (of 14)

2016 19 63 18 1 -5 -33 9 Overall Performance 2015 25 62 13 12 +5 -27 6

2016 24 56 20 4 -1 -35 8 Business Relationship 2015 29 60 11 18 +10 -26 5

2016 21 65 14 7 -7 -33 9 Personnel/Organisation 2015 27 64 9 18 +4 -24 6

2016 19 63 18 1 -1 -31 8 Category/Business Development 2015 21 62 17 4 +2 -36 6

2016 15 71 14 1 -8 -49 8 Operational Execution 2015 32 56 12 20 +11 -19 5

Supply Chain Management 2016 14 62 24 -10 -10 -40 11 (1) Difference between Personnel/Processes 2015 19 67 14 5 +2 -36 7 Favourable and Unfavourable ratings 2016 9 71 20 -11 -11 -43 10 Payment Processes (2) Difference between your 2015 16 68 16 0 -8 -31 10 rating and the average rating of accounts rated in this benchmark set Top Third Middle Third Lower Third Rank Rank Rank All Suppliers Overall Performance

PERCENTAGE OF RATINGS 2016 ACCOUNT Rank FAVOURABLE MID-RANGE UNFAVOURABLE Net Fav.(1) Gap to Average (of 14)

A F Blakemore Trade 2016 19 63 18 1 9 -5 Partners/Blakemore Retail 25 62 13 (Spar) 2015 12 6 40

-20 Net Favourable Score (NF) Favourable Net -40 A F Blakemore Trade Partners/Blakemore Other Companies Retail (Spar) All Suppliers

Business Relationship Performance Area Interview Comments – Your Company “The working relationship with A F Blakemore Trade “We had difficult trading issues with A F Blakemore Partners/Blakemore Retail (Spar) has been Trade Partners/Blakemore Retail (Spar) last year so our up and down. Personnel changes have overall impressions of them are that they were not very made short-term trading challenging.” collaborative. It was very difficult to get responses from them, responses to e-mails were sporadic and short and “A F Blakemore Trade Partners/Blakemore Retail (Spar) are our overall opinion was quite poor.” quite challenging. We find them not as collaborative as we would want based on working with other retailers. They are “With regard to the communication that we get back a bit old school in their approach. We have got three from A F Blakemore Trade Partners/Blakemore Retail different buying teams one of which is a bit easier to (Spar), that is the bit where we struggle. We invest a lot collaborate with, the other two are quite difficult. It is a bit of of time and resource into their business but we get a them and us relationship and we just find it hard to try relatively limited feedback from them and the impression and even approach the subject of growing together as that it does not necessarily link up at a top-line level.” opposed to them growing or us growing which is the way it seems to be. That is not the way we work as we definitely “Our overall business relationship with A F Blakemore drive a 'We want to grow together' business and we do not Trade Partners/Blakemore Retail (Spar) is difficult. They feel we get that feeling from them.” are great at some things, they have great scale, but the trading relationship is more challenging than the other “A F Blakemore Trade Partners/Blakemore Retail (Spar) RDC's. The buying team in place are a different type of communicate their company and category strategies buying team to the other RDC's in the group, they are pretty well. We went to the IGD date that they ran, so we not as collaborative. We had an issue last year which understand what they are looking to achieve.” created stock problems and it has made it a lot more difficult for us to rebuild the relationship with them.” All Suppliers

Summary Of The Interview Comments - 2016 Advantage Report® Mirror

What one thing could A F What are A F Blakemore Blakemore Retail do better Retail’s key strengths? and why?

• More collaboration: • Size and scale - Data sharing • Flexibility and speed - Longer-term sustainable plans Joint business planning • Strong (Spar) retail brand - • Share category level data • Experienced staff • Cross-functional contacts (e.g. supply • Good at execution and compliance in chain and finance) not just buying company owned stores contacts • Up-front and honest; suppliers know • Collaborative forecasting where they stand with them • More flexibility and shorter planning timescales to capitalise on key supplier initiatives and events SALES DATA Coming Soon Supplier Insight

ALL Depot sell-out data to BTP customers

ALL Retail Point of Sale data from Blakemore Retail SPAR stores

= Visibility on your route to market across all Blakemore SPAR Insight: Features & Benefits

• Mobile/Tablet/PC compliant • Graphical & User Friendly • Instant Screen Refreshes • Unlimited Users • Updated Weekly Insight: Features & Benefits

• Own Sales Trackers • Category Views • Insight & Analysis • Opportunity Reporting In Conclusion

• Family business that reinvests it profits • We work collaboratively with our independent retailers to grow their business • We own and operate 295 stores so we think retail first • Insight and data is at the heart of our business • Our trading department is one spoke in a much larger wheel • We’ve identified new opportunities to work in partnership with us: • Selling plan • Local marketing partners • Insight Q&A

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