Every year around this time we ask a number of key figures in Scotland’s convenience industry to give us their predictions for 2016, and it’s only when I get to the point of writing this column that I realise that it’s not an easy task we ask of them, so thanks to everyone who contributed!
Predicting the future is one of those things I’m reminded I’m not very good at around 5pm every Saturday when I check my football coupon. Still, for what it’s worth, here’s my take on what lies ahead for local retailers.
The Scottish election may dominate the news, but the truth is that the outcome will have little effect on the sector, even if there is a shock and Kezia Dugdale becomes First Minister. Labour’s policies may differ from the SNP, but ultimately, legislation on tobacco, alcohol (and probably sugar) will remain detrimental to our industry.
The EUTPD is of more concern. It is obviously going to cause huge upheaval for retailers. Crucially, there has to be an education process put in place from early in the year to communicate the changes to customers – who may not be aware that it is becoming illegal for their retailer to sell them a 10 pack of cigarettes or a 9g packet of rolling tobacco. Chances are, many will think this is just profiteering by retailers, forcing their customers to spend more money. There is a year between May 2016, when suppliers must stop making these products, and the date that you must stop selling them. It needs to be used wisely, and that’s something we’ll be looking at in depth throughout 2016.
E-cigs are also covered by the EUTPD, and finally we will have some legal clarification on what exactly an e-cig is. The exponential growth of this sector is getting us hugely excited at Woodlands Local, and 2016 is looking like the year the category will truly become integrated with every good convenience offering.
As for what’s going to bring shoppers into the stores, the shift away from traditional convenience is becoming more apparent with every passing year. A coffee-to-go offering is now every bit as important as any other category. It delivers huge margins, huge cash profits and is exactly the sort of service shoppers are coming to expect.
Convenience is changing. In many progressive stores, shoppers can now sit down for lunch or hold a business meeting before they fill a basket. That format won’t work for every store, but it’s something retailers need to research. Truth is, the economy is one big wet duffel coat on a shoogly peg. Analysts expect another major dip, maybe in 2017, probably in 2018. Therefore 2016 is a critical year for retailers – to invest, to prepare for the future and to hope that if trading conditions become difficult again, they are in as strong a position as possible.
Kevin Scott, Editor
