05.02.2016 THE SUGAR TAX MAN What Jamie’s latest campaign means for you HEALTH Page 22 » Low prices, big baskets ‘Our concept value store makes customers spend more’ Page 20 » NEWS l CONVENIENCE l PROFIT www.betterretailing.com l £2.30 Margin cuts ‘risk future of news’ l Retailers review profitability of every category as they Allen Harrigan prepare to fork out more to pay National Living Wage. WHOLESALE l ‘News and mags don’t justify space for margin earned.’ ‘We’ll keep l Daily Mail defends cutting potential £1.8m profit. Page 5 » improving CONVENIENCE service and My Local accurancy’ Menzies’ Wakefield bread manager addresses and milk RN readers’ concerns. guarantee Pages 5 & 13 » Promotions and community events SYMBOLS to win back lost B...More trade. Page 4 » premium NEWSSTAND fascia trial Bookazine Retailers approached to test Blakemore 18% boom format focusing on But indies missing high-end fresh and out on ‘biggest chilled products. growth area’. Page 7 » Page 6 » Cracking display More than 100 Vol 127 No 5 Cadbury Mini Egg bags were sold in a FOR TRADE USE ONLY week at one of Peter Wagg’s News on the Retail crime hits Wharf stores in Canary Wharf. He cre- record high, new 05 ated a new bespoke window display fea- figures reveal. turing digital screens and promotional Page 10 » packs to attract passers-by. Page 10 » ITT 532 04 /01/16 Players Red Ad Retail Newsagent 210 x 297mm (3mm bleed) 532ITT Players Red Ad_Retail Newsagent_AW.indd TB TB LS 532ITT Players Red Ad_Retail Newsagent_AW.indd TBC 04/01/16 TBC VERSION TBC TBC 01 CYAN MAGENTA YELLOW BLACK RN ad template.indd 21 1/21/16 12:12 PM 532ITT Players Red Ad_Retail Newsagent_AW.indd 1 04/01/2016 13:47 Retail Newsagent 5 February 2016 3 Last Wednesday, RN news editor Gurpreet Samrai and I spent a fascinating night and morning in Menzies’ Wakefield super hub, seeing first-hand the news and magazines packing, returns and deliv- ery process. The timing was interesting, as it was the same week you’d told us service from the depot has turned a corner in the past few months. RETAIL NEWSAGENT NEWS ● CONVENIENCE ● PROFIT With this in mind, we took six reader concerns covered in RN since the summer to find out how they have been addressed and what im- provements have been made. I discovered one Depot manager Allen Harrigan and his team were candid about factor in any service what they’ve got right and where further improvement is needed. You improvements out can read about what we learnt this week (see page 13) and next week. on a delivery round I discovered one factor in any service improvements out on a de- livery round – my driver, Alan Fulton. At 24 years of age, and having – my driver joined the business eight months ago, Alan spoke about how he goes out of his way to ensure independent retailers don’t lose business from late deliveries. He’d already been out before our 4.15am run to deliver and collect magazines to speed up the newspaper deliveries. I saw him leaving papers in vans and car washes, chatting to service station night staff and helping bring in totes for other drivers at the end of his shift. I CHRIS GAMM don’t believe it was for my benefit, either. Editor One of the main problems you experienced was caused by inexpe- @ChrisGammRN rienced staff. My experience highlights the improvements made, as well as the importance of recruiting and developing brilliant people. It’s just one of the areas Menzies must keep focusing on if it is to fully address your issues in a sustainable way for the future. 20 CONTENTS 32 NEXT WEEK Do you think business More of your customers NEWS TWEET US WHAT YOU’VE DONE franchises are brains. This week, want breakfast on the THIS YEAR 4 INDUSTRY NEWS Exclusive @retailnewsagent promotions in store to now a more Digby Jones go to fit in with their viable option for 20 RETAILER PROFILE busy lifestyles. Find out boost My Local OR JOIN THE RETAIL independents? The Kumar family has NEWSAGENT what five top retailers FACEBOOK 6 BUSINESS NEWS B…More GROUP 15 LETTERS Eurocrats told been focusing are serving up MORE is new high-end fascia exclusive to stop interfering with on value-led 27 CHOCOLATE for Blakemore BUSINESS IDEAS paper rounds shopping. We Your need-to-know to MAKE & SAVE 7 NEWSTRADE Indies get money 16 INDUSTRY PROFILE look at how guide to what’s new incentives to cash in on 50 IDEAS TO MAKE AND Federation of Wholesale Landmark and what’s popular bookazines’ growth SAVE MONEY Distributors chief Wholesale’s in this vital FMCG 8 PRODUCT NEWS ‘Win in executive James Bielby, Lifestyle Value category Part one inside Spring’ with P&G 24 below right store model is 32 PREVIEW 10 REGIONAL NEWS Crime 17 COLUMNIST working for them B&H Blue in 17s; Coca- sentencing welcomed Lessons in lawful Cola Zero Cherry 12 NFRN DISTRICT COUNCIL trading with Doug 16 FEATURES North West DC report Love 22 NAKED TRUTHS THIS WEEK 18 PRICEWATCH RN hears from COMMENT & Spirits prices celebrity chef and IN MAGAZINES ANALYSIS around the UK healthy food 34 ROUND-UP Tailor-made IN-STORE BAKERY 13 YOUR ISSUE Behind the 19 THE ENTREPRENEURS campaigner news and mags ranges How retailers of all scenes at Menzies’ What you can Jamie Oliver 35 FOR YOUR SHELVES Outdoor kinds are getting in on Wakefield super hub learn from the 24 ON THE GO: Photography special; Great the action 14 YOUR STOCK, YOUR SAY world’s best BREAKFAST Airports one shot “BE HONEST ABOUT WHETHER YOUR PRODUCT HAS GRAT NUTRITIONAL BENEFITS OR IS A TREAT” – JAMIE OLIVER CALLS FOR GREATER CLARITY FROM THE FOOD INDUSTRY Page 22 » 4 5 February 2016 Retail Newsagent Follow RN f on Facebook facebook.com/retailnewsagent to have your say on the latest news No duty Generous Samantha’s is paid on donation one in ten IAA winner Samantha Coldbeck (pictured) donated £500 and beers sold a 40” HD Smart TV One in every ten beer cans to a hospice near her and bottles on retailers’ Wharfedale Premier shelves has had no UK store after holding a duty paid, according to the raffle during a celebra- Federation of Wholesale tion day at the end of Distributors. last year. The bumper James Bielby, FWD chief donation was made executive, told RN during after the raffle winner an interview for this week’s failed to claim the prize. industry profile, that the Mrs Coldbeck said: “No majority of this 10% is found one claimed the TV so I on the shelves of smaller decided to donate it and stores. “Retailers may be the cheque.” ofered beers, wines and spirits well below the price they get from their usual wholesaler, and that’s very Long-term growth strategy revealed Promise of free bread and milk if stock runs out likely to be because duty hasn’t been paid on the stock,” he said. However, NFRN chief executive Paul Baxter said Exclusive promotions in- the finger can’t simply be pointed at retailers: “We are supportive of measures that will reduce illicit trade. It is store to boost My Local important that wholesal- ers check stock and supply by Nadia Alexandrou Turton told RN. this will help us win back Stores will also be host- sources as ultimately retail- Up until now stores have customer confidence.” ing local community days ers will pay the penalty if My Local is focusing on been “piggy-backing” of He added that My Local throughout the year as part wholesalers don’t.” exclusive promotions and Nisa’s promotions, but the will consider rolling the of its strategy to reconnect l Industry profile – p16. store community events to chain is now looking to guarantee out across more and engage with custom- win back lost trade as part focus on its own deals to of its “golden lines” – a ers. Mr Turton added the of its long-term growth get more customers into list of around 150 items it company plans to continue strategy. its stores. The first will be a has identified to be the its average growth of 1% North East The group’s sales are cur- bread and milk guarantee core bestsellers in con- to 2% a week in the next rently around 15% below the that promises customers venience – depending on quarter in order to exceed Nisa split level when the stores were these items free on their feedback. “We don’t want Morrisons’ sales by the Nisa has declined to extend owned by Morrisons. next purchase if the store to be a cheap supermarket summer. The company is the membership of North This is largely due to the they are at has run out. or a high-end outlet, but also in talks with Nisa to East Convenience Stores stock problems it encoun- Matt Philips, pricing and inbetween the two. We’ll improve its fresh range, and (NECS) as part of its turn- tered when it opened and promotions manager at My be constantly checking and last week hosted its first around strategy launched losing the strength of Local, said: “These are the reviewing our golden lines supplier conference, which last year. The decision to Morrisons own brand, My two most common products with competitors to make attracted more than 270 split from NECS is the first Local’s trading director Neil people pick up in stores, and sure this happens,” he said.