A Cross Party Group, EUTPD2, living wage and Brexit. Throw in the launch of the second Scottish Local Shop Report, the possibility of a second referendum, and the inauguration of a new president. The theme of ‘thriving in an era of change’ was well chosen for the 2016 SGF Conference.
by Simon Walton
Impressive setting. Impressive theatre. The drama played out centre stage with a presidential handover from the understandably emotional Abdul Majid to the equally excited Dennis Williams, whose humility grossly understates his vast enthusiasm for the chain of office. Polar explorer in residence at the Royal Geographical Society, Craig Mathieson provided a fascinating after dinner speech, with a conquer-all spirit setting the tone for the two days of last month’s SGF Conference 2016.
In his first speech as President, Dennis Williams said the SGF is evolving into a a body capable of fully representing its members across the industry in Scotland. “We represent the entire supply chain, and our expanded corporate membership programme has reached sectors with which we have never previously engaged. I know from experience how important it is to work in partnership with symbol groups and suppliers, and we are the only trade association that can do that.
“Over 90% of Scottish retailers are actively involved in the community, which sets us apart from supermarkets,” said Dennis, before returning to themes of cutting crime, building relationships and legislation, including the national minimum wage and its implications for the sector. He also looked forward to the SGF celebrating its centenary in 2018 in better shape than ever.
“I’m part of the problem,” said the Group Marketing Director for the British company that provides the all-in-one payment handling devices that are familiar to retailers everywhere. “I use six methods of payment regularly, from cash to contactless,” he said, adding that even his cheque book was still in use. Technology, he said, was nothing without people, and there would always be change, making it difficult to place bets on the future. Cash is still king, he said, but that balance will tip in about five years. Among a fascinating array of stats, Steve noted that already, even among ‘C2DE’ economic groups, 52% used a smartphone and 49% a tablet.
Concentrating on the challenging theme of Thrive in an Era of Change, Chief Executive Pete Cheema celebrated the establishment of the first ever dedicated Cross Party Group, meaning that the interests of the retail industry are heard as a single voice within the corridors of power at Holyrood.
Not that the government isn’t already well informed about the contribution the sector makes to communities locally and the Scottish economy at large. In his keynote speech, Fergus Ewing MSP recognised that almost 42,000 jobs are supported by convenience retail in Scotland, citing among them as personal examples the two stores close to his own home and constituency in the Highlands.
As the Cabinet Secretary for the Rural Economy & Connectivity, Ewing was keen to reiterate some of the headline figures from The Scottish Local Shop Report 2016, which was released at the conference. This, the second edition of the report, compiled in partnership with the Association of Convenience Stores, gives exactly what the political body needs – facts. As Mr Ewing joked, it’s a document free from waffle – something that his colleagues in Holyrood are all well capable of providing for themselves.
“Who could forget The Great Marmite Drought of 2016?” asked Category Strategy Controller Duncan Tyrell, to much laughter. In 12 years, the fast-rising bakers have become a leading brand and – as Duncan pointed out with slides from the company’s origins in Victorian Bolton – the principles of good, fast service, straight to the customer, have not changed, but the methods of business and demands of the consumer most certainly have. “Bakery is important to Scotland. One basket in four is based on bakery needs,” he said. “The staple remains the 800g loaf, but we still have to change. We need to disrupt in a positive way. The weekly, family shopping trip is in decline, and shopping is becoming more a part of our daily lives.”
Jonathan Kemp, the AG Barr Commercial Director, who chaired the second day’s presentations, said that the only constant in life was change. He pointed to a 1958 delivery truck, proudly advertising “children of all ages love Irn-Bru – 100% sugar”. He said he believed sugar is an opportunity, bringing products like Rubicon juice drink and Irn-Bru Xtra to market far sooner.
Information is coming far sooner too, with the launch of the SGF app, used for the first time in earnest at the conference. Pete Cheema demonstrated it on stage, proving that the easy-to- navigate format could even tell him he was due on stage, to demonstrate the app. “It’s a huge step forward,” he said. “It’s a way to send news to members, so you won’t miss a thing.” Not even his cue to be on stage.
Retailer Panel
The Publishing Director of Scottish Local Retailer, Antony Begley, chaired a panel of prominent retailers including Harris Aslam, Dennis McCormack and Barry Hanif. Harris was the winner of the SLR Rewards Retailer of the Year, who was attending Conference just a few days before departing for Atlanta and the National Association of Convenience Stores Show as part of his SLR Rewards package. “It’s been a busy 12 months,” said the Fife-based retailer, in the understatement of day. Having launched Greens, his own store brand, he plans another two stores by the end of the year. Harris reckons food-to-go is “the way to go” but he’s keeping an open mind, and plans to report back on innovations and ideas picked up during his trip to America.
Whatever he decides, it won’t be a spur of the moment decision. “Investing rather than reacting, thinking ‘What we are going to do with that space?’ Do something slightly different, disruptive and lead the industry. That’s about empowering our team and tackling issues before they arise.”
“As an economics advisor, I’ll attempt to make the subject exciting,” said Marcus Wright in welcoming delegates to the conference facilities at Gogarburn. That’s exactly what he did, rising to the challenge, and, as he said with a little tongue-in-cheek irony, attempting to clear the fog of the post-Brexit era. On the good side, high-skilled jobs are in growth, and on the downside, transport infrastructure still lags behind. The underlying trend for strength in the economy; some areas for improvement; and with the exception of the contraction in the oil industry, which wiped out an otherwise good result in 2015, there are strong figures for Scotland. “So it’s all Aberdeen’s fault,” as was commented on in conclusion.
Denis McCormack has 30 years’ experience behind him and intends to make a clean sweep of the retail industry, with plans for a very 21st century take on the age-old launderette. Denis has overseen his Spar Polbeth Service Station site through the five most challenging years of change ever, and he plans even more. “Three years ago we undertook redevelopment, adding a coffee bar; food-to-go; display cake stand; and now we need to move forward again. A bigger food-to-go, getting Subway in-store, and the staff and customers are excited.
“We’re also installing a laundrette – outdoors. It’ll be among the first in Scotland and works 24/7. There’s already been an amazing response on Facebook, and our customers say they’re looking forward to it, for things like local football teams washing their strips, and van drivers using the thirty minute cycle.”
The Managing Director of the chain has been in retail for 19 years, and Scotfresh still innovates. He outlined his ten point F-Factor plan for successful retail. From a first priority to be safe, secure and legal, with training a vital part of the mix, through to fun and enjoying your business. “Fundays cost us nothing in money, and a fortune in effort. Trust me, engaging with community is worth the effort because without the community you will have plenty time on your hands.”
Road and rail developments around his West Lothian site mean some challenging months lie ahead, but Denis is positive and says focus on the customer. “My enthusiasm goes down the line, and I tell staff the most important person is you at the check out.”
Barry Hanif told Conference of the progress in his store in Paisley which he took over two years ago. He also added to the theme of thriving in an era of change. He’d joined the Nisa chill fresh delivery system, to move on the product range to better stock fresh fruit and vegetables. “We remerchandised the shop, brought in hot food, and pushed the whole food-to-go idea.” Barry also refitted a post office store which combatted a Tesco Metro opening nearby. “We need to do something different and move faster than the multiples. We’re getting in there with taking orders and beating the mults with a quick delivery.”
Politics of retail
Taking the stage after the entertaining and informative economist Marcus Wright, gave SGF Head of Policy & Public Affairs John Lee a tough act to follow. “Having seen economics made exciting by our excellent speaker from RBS, now it’s time to do the same for politics,” said John. In that respect, he may have been dealt a good hand. After 18 months of hard work, the rapid inauguration of the first ever Cross Party Group (CPG) on independent convenience stores has brought Holyrood right into the shopfront and “affects us all on a personal level. It’s a genuinely significant development, that brings together retail, supply and manufacturing, gives us a big voice, and shows the government that the 42,000 directly employed and the many more supported by the sector are really crucial to the Scottish economy.”
Back to the Future was the blockbuster theme for Marketing Development Manager Andy Batt. “The past holds a comfort when things were not moving so fast,” he said. Using the 1985 movie favourite, he demonstrated how what was possible in cinema tech now, surpassed even that science-fiction yarn.“There have been three great revolutions in the past two hundred years, agricultural, industrial, and technological. The fourth – the digital revolution – is faster than any other.” Andy went on to discuss how technology and data will play an ever more important role in convenience retailing in the future.
With the inaugural full meeting of the CPG due on 23rd November, there’s plenty to be done in the immediate term. “The Cross Party Group gives us as big a voice as our sector deserves and at least as well heard as the large corporations, but we only get out what we put in, and in that respect, the CPG must be inclusive, and it’s up to all members to take an interest in making this a positive opportunity to get the best deal for convenience retailers and the sector at large.”
Inevitably, the upheaval of Brexit was a topic of John’s report, but it was to a more direct matter that he turned in conclusion. “Given that the significance of the sector is bound to be better recognised as a result of the Cross Party Group at Holyrood, the SGF will try to sponsor a piece of legislation. We are already trying to bring forward legislation that will give shop workers the same legal protection as emergency workers. We have drafted a bill, and drafted a consultation – so a great deal of the ground work is already done and ready to be presented to MSPs. There is plenty still to do, but there is a real chance this could go through. That would be our most ambitious project yet and show that we really could make parliament work for us. Surely that means that politics can, after all, be exciting.”
Imperial Tobacco hosted an informative hands-on breakout session looking at the legislative challenges facing retailers and manufacturers alike in the coming year. With EUTPD2 hitting home on 20th May next year, including cessation of non-compliant packs, retailers were urged to train not just their staff, but their shoppers too. With sizes changing, branding disappearing, and some variants delisted, Imperial Tobacco has taken the initiative of printing 250 information cards for every retailer in the UK – some 9m copies – to help through the uncertainty of transition and protect customer relations.
Camelot Group had a prize winning National Lottery presentation – with baseball caps and frisbees – to introduce a ‘thank you’ video from Team GB Olympians, and a raft of fundraising stats relating to Scottish retailers. To date, 409 Scottish millionaires have been created, and on average £19,000 has been raised for good causes annually through Lottery sales in each store in Scotland. The Lottery is also launching a new, out of dispenser scratch card, exclusively through convenience channels, and also a “massive volunteering programme” running to March 2017.
Mars have some of “the nation’s best loved brands”, including the eponymous bar, but also Wrigley gum and the Petcare range. In a breakout session with the family run company, issues like the proposed sugar taxation came up, and the manufacturer made their case for reducing consumption without reducing sales. Retailers were given the breakdown on purchase decisions, with impulse taking an unsurprising 71%. The presentation also outlined the support given to community sports projects – notably the Just Play initiative, which retailers can support through locally organised events.
The Healthy Living Programme, an initiative of the SGF that’s caught the imagination of the Government, was given a showcase by Linda Williams of the Broadway Store in Oxgangs, Edinburgh. Their BIG Breakfast from the Healthy Living Team was shown as a potential revenue stream for willing stores, who can still get involved with local schools through the funded programme, providing breakfast clubs and healthy eating support. On the purely commercial side, it’s a very good way to get to know the next generation of customers, added Linda.
