Since launching him! International, Tom Fender has travelled the world, learning more about retail in other countries, and seeing what lessons can be passed across the border – tough job. We caught up with him to see just what Scotland’s local retailers can learn.
Factfile
Tom Fender is joint MD of him! International, along with Neil Turton. The company provides research and insight into the global convenience retail market, working with suppliers and retailers. For more info, visit www.himinternational.com.
What’s been happening since him! International launched?
Things have been going extremely well. We’ve spoken all around the world about what works in particular countries. Convenience is the area of grocery growth, globally. We’re seeing a lot of suppliers shift more resource into convenience and there’s a real appetite to learn from what other nations are doing.
What are the big differences from the UK?
In the UK, we’re very good at the top up shop but if you look at some of the biggest markets in the world, they are more focused on immediate consumption: hot snacks, food to go, drinks etc. However, in Australia we’re seeing more on the top-up side coming in. The Woolies chain is shifting towards what we’d see as a traditional convenience store – dairy, fresh, and so on. That is new for them.
What countries are doing the most interesting things?
Switzerland is interesting at the moment. There’s a chain called Relay, which is a transport hub chain like WH Smith, but they’ve developed real convenience in convenient locations. France too has some incredible stores; the commitment they have to categories they are famous for is amazing.
What stores do you most admire?
We tend to have bigger stores here. In Asia, conurbations are so dense and the rent is so high that shops are tiny, meaning retailer have to work every inch. That makes them better at impulse, at stock rotation.
Who is the best?
Ireland. Not only do shops there cater for every day needs in a traditional convenience sense, but they excel at food to go. They are fantastic at getting their signage right, and the number of in-store concessions is growing too. It’s a cheap 40 minute flight away so I’d urge retailers to visit.
Where can UK retailers improve?
In the UK we need to get better at food to go. There is virtually no mention of it in the recent ACS Local Shop Report, but it is what convenience is all about in other markets. That’s where the UK must evolve. We’ve only really scratched the surface. Around 20% of UK c-stores sell hot coffee to go – in other countries it’s closer to 100%. That’s something we need to work on.
Is there demand for more coffee solutions?
If you look at the market you could be forgiven for thinking the coffee market is saturated, but in other countries you can buy coffee every 50 metres – it’s a hugely impulsive category. In winter it warms us up and stores can take advantage.
Can international solutions work in the UK?
There are cultural differences but research suggests our lifestyles are virtually identical. There are more people migrating to cities, we’re skipping breakfast, going home without knowing what we’ll be having for dinner: these are commonalities across the world. Convenience is more mature in the UK, but there is a shortage of great sites. I don’t think it’s inconceivable for a UK retailer to open overseas and succeed, providing they have staff with knowledge of the local market.
What advantage does the UK have?
Selling alcohol in a c-store is a big advantage. It is something we lead on, given the need for liquor stores in a number of other markets. In Australia, for example, they’ve no idea what Big Night In is; there’s no cross-category merchandising.
What’s the strangest thing you’ve seen?
There was a store in Australia, where at the entrance there’s a sink with lots of upmarket soaps and so on. You then remember it’s so hot there that it gets uncomfortable, so shoppers can wash their hands or rinse their face!
