29.01.2016 OUTSIDE THE BOX Two weird ways to boost your margins NATIONAL LIVING WAGE Page 26 » My store of the future ‘Big changes doubled our profitability’ Page 24 » NEWS l CONVENIENCE l PROFIT www.betterretailing.com l £2.30 My Local plans to profit from print BUSINESS l Retail group to survey local areas to build store- ‘More store specific news and magazine ranges. l ‘Huge growth potential’ from bridging gap between support’ as standardised supermarkets and newsagents. Page 5 » franchises grow 10% OPPORTUNITY ‘Joining group gave me back time to focus on Indies tap National Living Wage into 20% and pensions.’ US food Page 4 » growth 600 stores average WHOLESALING £1,100 sales per Wakefield week. Page 18 » service MARKETING ‘turns the Meal deal corner’ text trial Yorkshire store Costcutter targets owners report 38k shoppers in York improvements from and West Midlands. Menzies. Page 12 » Page 6 » Star sales up, but Vol 127 No 4 retailers miss out on FOR TRADE USE ONLY Just the ticket Worcester retailer Natu Patel’s Lottery sales have rocketed 30% fol- £200k profit in first 04 lowing press coverage of a potential £33m jackpot winner at his Ambleside News three months since store. Mr Patel made headlines after claiming he sent the lucky ticket to Camelot, price cut. despite it being nearly destroyed after “going through the wash”. Page 12 » Page 7 » INTRODUCING BESTWAY AND BATLEYS REWARDS CARD REWARDING Minimum spend £300 per shop + include one of the following = 1 stamp (per visit) SPEND £300 + BUY A CASE OF SPEND £300 + BUY A CASE OF Coca Cola Zero SPEND £300 + GET A FREE CASE Coca Cola Zero Cherry PM 49p Coca Cola Zero YEARS 24 x 330ml Cherry PM £1 12 x 500ml Cherry PM 49p OF LOYALTY FROM 1 24 x 330ml OUR CUSTOMERS 2 3 SPEND £300 + BUY A CASE OF SPEND £300 + BUY A CASE OF 1976 - 2016 Skittles Tropical SPEND £300 + GET £3 OFF A CASE Skittles Tropical 36 x 55g PM £1 12 x 125g Wrigleys Extra White Gum 1 36 x 30 x 10 Pack 2 3 GET MONEY OFF A CASE OR SPEND £300 + BUY A CASE OF SPEND £300 + BUY A CASE OF A FREE CASE ON EVERY 3RD SHOP Weetabix PM £1.99 SPEND £300 + GET £3.25 OFF A CASE 6 x 24 Pack Weetabix PM £1.60 + SHOP 12 TIMES 10 x 12 Pack Weetabix On The Go Strawberry PM £1 IN THE MONTH 8 x 250ml FOR YOUR CHANCE TO WIN 1 2 ONE OF THOSE SHOPS 3 * SPEND £300 + BUY A CASE OF SPEND £300 + BUY A CASE OF SPEND £300 + GET A FREE CASE Typhoo Tea Bags + FREE 50% EF PM £1.95 Typhoo Eco Fresh Refill PM £1 Typhoo Fresh Brew 8 x 120s 12 x 40s PM £1.39 6 FOR 5 PK February 1 6 x 80s 2016 2 3 *Terms & conditions apply. £300 minimum spend per shop excluding tobacco and VAT. Please go to www.bestway.co.uk/rewardscard for more details. SHOP WITH US TO WIN REWARDS EACH MONTH!** Our way of thanking you, our customers, for 40 years of loyalty You’re better off at Bestway and Batleys www.bestway.co.uk www.batleys.co.uk *Terms & conditions apply. £300 minimum spend per shop excluding tobacco and VAT. Please go to www.bestway.co.uk/rewardscard for more details. **Not applicable to delivery customers. In-depot and Click & Collect customers only. RN ad template.indd 21 1/20/16 2:24 PM Retail Newsagent 29 January 2016 3 Whenever I visit our local c-store, my four-year-old daughter always asks to join me. She knows it has a large selection of Kinder Eggs and which particular variants she is collecting. She’s not always successful, but there are a lot of My Little Pony toys currently scattered around the house. Speaking at the Local Shop Summit last October, London retailer Jay Patel told delegates how he invests in children’s shopping experience be- RETAIL NEWSAGENT NEWS ● CONVENIENCE ● PROFIT cause they are future customers and bring parents with them. One tactic he uses is creating brilliant kids magazine displays at floor As a parent – and level. He doesn’t mind mess or damage because there is always a title in parents’ baskets and he sells 17 boxes of comics a week. victim of pester There are two great examples of effective marketing to these future power – it’s customers in this issue. Cobham retailer David Worsfold grew his con- important to get fectionery sales by 8% in his new store with a ‘Christmas tree’ display of a balanced range American confectionery. Meanwhile, Vishal Madhu, from American food importer Innovate that appeals to both Bites, explains how the bright, vibrant packaging of US products is help- children and parents ing the 600 stores he supplies sell on average £1,100 of US confectionery and other products per week. As a parent – and victim of pester power – it’s important to get a bal- anced range that appeals to both children and parents. Londis retailer Kate Mills does this by integrating healthy fruit-based treats with vivid packaging into her pick & mix range. Getting feedback from customers shouldn’t be limited to adults, either. CHRIS GAMM In next week’s issue, we interview a seven-year-old magazine-buyer Editor about what she reads, why and how the positioning of magazines in a @ChrisGammRN store is crucial in determining where she visits with her mother. Meet their needs and you could win shoppers for life. 24 CONTENTS 33 NEXT WEEK NEWS problems for retailer brains. This your business in these 16 YOUR STOCK, YOUR 4 INDUSTRY NEWS Franchise week, The Beatles days of increasing retail SAY 24 RETAILER retailing set for further Would you crime? RN speaks to two PROFILE growth in2016 push wholesalers retailers to find our what and manufacturers to 6 BUSINESS NEWS Shoppers get David Worsfold grew hi-tech solutions they help offset the cost of the up living above his text alerts in Costcutter’s employ National Living Wage? father’s shop, now he’s 30 BABYCARE & latest digital initiative 18 INDUSTRY PROFILE doing things his way PRE-SCHOOL 7 NEWSTRADE Daily Star’s ON THE GO: BREAKFAST Innovative Bites CEO & after spending just Ensure you are sales increase comes at a founder Vishal Madhu, under £1m on a refit stocking the Why offering a morning £200k loss for retailers below of his Cobham store snack is now essential 8 PRODUCT NEWS products parents 19 COLUMNIST want Manufacturers step up Get your spring range FEATURES 30 33 PREVIEW health responsibility right, says John 26 NATIONAL LIVING WAGE Butterkist’s hot cross bun 11 REGIONAL NEWS Indies Eastwood 18 What’s your popcorn for Easter group has focus on Wales 20 PRICEWATCH strategy? RN 13 NFRN DISTRICT COUNCILS Ales prices picks up some top THIS WEEK Yorkshire, Western, around the UK retailer tips Devon & Cornwall DCs 21 THE IN MAGAZINES ENTREPRENEURS 28 DIGITAL 34 ROUND-UP Could high-end COMMENT & SECURITY CHOCOLATE What you can magazines work for you? ANALYSIS learn from What’s the 35 FOR YOUR SHELVES Star Retailers review this 15 LETTERS/YOUR ISSUE Praise the world’s best way Monsters launch, re-brand essential category for Menzies deliveries; till best business to protect for Focus magazine “IF THEY’RE NOT ABLE TO HIT OR BEAT THAT FIGURE I’LL TAKE MY BUSINESS ELSEWHERE” – RETAILER JAGTAR RAI ON HIS HARD NEGOTIATING WITH WHOLESALERS Page 26 » 4 29 January 2016 Retail Newsagent Follow RN f on Facebook facebook.com/retailnewsagent to have your say on the latest news Only 10% Creme Egg Café’s cracking start of beers Cadbury is getting London shoppers in the mood for duty-paid Easter with the launch of Only one in 10 beer cans its Creme Egg Café, which and bottles on retailers’ has been serving up snacks shelves has had its UK based around the confec- duty paid, according to the tionery to sweet-toothed Federation of Wholesale customers in the capital. The Distributors. venue was officially opened James Bielby, FWD chief by Louise Thompson of executive, told RN during Made in Chelsea fame, and an interview for next will be open until March as week’s issue the majority part of a wider marketing of this 10% is found on the campaign to grow Creme shelves of smaller stores. Egg sales. “Retailers may be ofered beers, wines and spirits well below wholesalers’ prices, and that’s very likely to be because duty hasn’t been Sector up 10% in two years with £15.1bn value Brands’ expansion is model of choice paid on the stock,” he said. The organisation is championing the new Al- cohol Registration Scheme Franchise retailing set which will require retailers, from 2017, to check their wholesaler is registered with HMRC as a supplier of to grow further in 2016 duty-paid alcohol. Mr Bielby added he ex- by Steven Lambert gain Booze and WH Smith enrolment and the National year to “climb towards pects the cost of the National Local, as well as other Living Wage.” £16bn”, adding that “90 to Living Wage to wholesalers Franchise retailers in the retail sectors, were re- Meanwhile Conviviality 95” of the UK’s 900-plus to be nearly £60m by 2020, grocery and newsagent sponsible for £3.2bn of this Retail, which owns Bargain franchise brands will be in but the efect will be worse sectors are set for further turnover. Booze and Wine Rack, also retail by the end of 2016.