Time for a change?

The local retailing sector never stands still so it makes sense to keep on top of your options as you focus on maximising sales and profits in your business – so could it be the right time for a fresh start with a new symbol partner that better meets your specific needs?

By Antony Begley

---

Covid may be in the rear-view mirror by now but the long shadow it cast continues to affect the local retailing sector – and indeed the Scottish economy as a whole. The hospitality sector has never fully recovered, the way shoppers consume food and drink both in and out of home has changed dramatically and, of course, shoppers still face massive pressures on their household budgets.

Throw in continuing economic turmoil, a fresh UK government, retail crime at epidemic levels, chronic staff shortages, rising costs across the board, the enduring impacts of Brexit and a Scottish election on the horizon and what do you have? A recipe for chaos. Or at the very least, a remarkable lack of clarity on what the future might bring.

So how exactly are local retailers in Scotland meant to prepare for the future?

What next?

The simplest answer to this question is possibly a one-word answer: investment. Today’s shoppers are so used to high retail standards that the old days of getting away with a messy, shambolic ‘corner shop’ business model no longer cuts it. Shoppers have grown so accustomed to clean, neat, orderly, precise retail that they expect the same standard – or similar – of their local convenience store.

Which is precisely why it’s so encouraging to see what looks to me like record levels of investment in the Scottish local retailing sector. Judging the SLR Awards in 2023 was an eye-opener. The amount of investment the judges witnessed was staggering. Even more staggering was that we saw it all over again during the judging for this year’s awards.

Gone are the days of ‘major’ £50k refits. These days, major seems to mean £200k or £300k – and that is entirely to the credit of today’s local retailing entrepreneurs. What is also reasonably clear is that the vast majority of refits are taking place in stores that are part of symbol groups.

Working with a major partner that understands retail and has the experience of working with hundreds or even thousands of other stores to inform the vision clearly holds some attraction.

In the last five years or so, the clear trend in refits has been towards a more standardised, modular approach. That explains why so many Spar Scotland stores look similar to one another, and why so many modern Premier stores are doing the same.

But the logic here is inescapable. Yes, we may lose out on that quirkiness and uniqueness that characterises the local retailing channel, but on the flipside we tend to gain sales and profits. Most major symbol groups now effectively offer a menu of tried and tested ‘modules’: a food-to-go solution, a vaping solution, a beer cave and so on. All retailers then have to do is work out how many they can fit into their store and which ones are most appropriate for their specific customer base.

It’s smart retailing – and it works. The majority of stores that have followed this model have, in my experience, seen the benefit in the till.

But it’s not all about refits. If you don’t have the cash to spend £150k on a full refit, there can still be major gains to be had from working with a symbol group, franchise partner or similar to take your store to the next level.

All symbol groups have access to a wealth of insight and experience that only comes with working with huge numbers of stores over many years. Tapping into that can only be a positive. And it’s not all about pricing and range. Sure, they’re vitally important but of most importance is one thing: the cash profit your store delivers. And yes, it is cash that matters most. You can’t take percentages to the bank, as the old retail motto has it.

Joining another symbol group, however, is not a silver bullet that will fix all of your problems in one fell swoop. It can be, but it’s certainly not a given. There is a strong case to be made that one group may mesh with your own business model and vision better than another – but a lot of the success retailers enjoy as part of a symbol group is attributable to the way they approach the partnership. It takes two to tango.

Symbol groups are, in my experience, far more selective in choosing retail partners these days. They want to work with retailers who will truly work in partnership and deliver benefit for both parties.

A partnership, by definition, involves both partners pulling their weight, working closely together and meeting the challenges and exploiting the opportunities together. At the end of the day, the groups rely entirely on partner stores as the public face of their business, so wanting to drive standards up is something that all parties should welcome.

So, the first thing to ask yourself when looking at a new partner is a simple question: would my business be better, stronger and more profitable with a different symbol or franchise partner? And if so, why and how? And are you prepared to truly commit to the partnership?

Only by truly working hand-in-hand with your symbol group will you fully exploit the many opportunities that exist.

So it takes a clear eye and an honest view of your own business to decide whether the grass is indeed greener. Key here is first identifying the areas of your own business that aren’t performing the way you want them to. Whether that’s margins, stock levels, staffing, admin, pricing or something else. A new symbol group can’t fix all of these problems for you on day one. They can help on lots of fronts, but they can’t wipe the slate clean for you in an instant.

Once you’ve identified the weak areas, then it’s time to analyse the various options on the table, trying to establish which groups are most likely to be able to help you with the weaknesses you’ve already identified.

Comparing symbol groups is a complex task and some would say that there is no completely reliable way to analyse how good a symbol group is until you’ve signed on that dotted line and actually started trading.

Talking to other retailers is a great way to learn more about the nitty gritty of what lies under the bonnet of each of the major groups but, once again, tread carefully and don’t take everything you hear as indisputable fact. All you’re hearing is one person’s subjective view of what it’s like to work with this or that symbol group. If another retailer feels like they had a bad time with a particular group, that doesn’t mean you will too.

But, after all that, if you are still keen to test the waters, we have produced a brief guide to some of the leading symbol groups in Scotland and across the UK. There are some very clear differences between the groups but the key is not to judge a symbol group on just one or two factors like delivery charges, promotional pricing or claimed availability levels. Try to judge each group in the round, and try to establish what each group could bring to your specific store with your particular customer base.

Options galore

Recruitment activity is as aggressive as it’s ever been, and more and more groups are targeting Scotland. If you are looking to change group, you’ll have a long line of suitors at your door but be prepared for some tough conversations, even from groups desperate to grow in Scotland.

In return for the enormous support that symbol groups can offer local retailers, they will be looking for commitment and drive from their retail partners. There are very few quick wins in this game and only by forging a strong, positive partnership with your symbol group can you maximise your returns over the longer term.

---

Premier is in a league of its own

Premier is the UK’s largest symbol group with more than 4,350 stores across the UK, with over 500 of these in Scotland, making it the biggest symbol operator in Scotland. Backed by Booker, the UK’s leading food & drink wholesaler, Scottish Premier retailers benefit from group exclusives with delivery at cash and carry prices and the convenience to top up at any of our 23 branches in Scotland to maximise availability.

Premier retailers benefit from a fantastic promotional programme covering all categories which is backed up by a comprehensive EDLP program. The Premier Program is designed to drive footfall and increase cash profit with our Mega Deals giving POR of over 15% and most of our core deals offering at least 20% POR. Our dedicated Scottish promotions each period also offer a real point of difference from the competition.

Premier is committed to helping Scottish retailers reduce costs and supporting both retailers & shoppers alike.

Key incentives include:

• Reducing energy consumption with efficient LED lighting, Beer Caves, walk-in Soft Drinks area and refrigeration units.
• Extending our spend and save scheme to include vape products, earning retailers up to 5% rebate.
• Linking up with Healthy Scotland to support communities and children across Scotland.
• Food donations points in store via Fareshare.

Scottish retailers have access to over 600 own-brand products through Jack’s and the Euro Shopper brands. Euro Shopper is our entry-level value range and Jack’s is part of the Tesco family and mid-tier. Both exclusive ranges come in PMPs and offer a minimum of 30% POR*.

Premier’s store development teams will design and implement our latest thinking in stores, including Soft Drinks walk-in refrigeration units, Beer Caves, Refresh Zones, £5 lunchtime ‘Mega Meal Deal’ and local Scottish Bakery line-ups, whilst ensuring stores are as energy efficient and sustainable as possible.

Some Scottish stores who have invested over £200k have seen this pay back within 12 months and Premier’s small store format model means that now any Scottish stores from 300sq ft+ can benefit from the Premier model.

---

Fit for the future with Londis

Londis has had a fantastic year of recruitment with almost 200 retailers joining the Londis family. Londis now has over 2,300 members and almost three-quarters of our recruits have come from other symbol brands.
We are always looking to develop our own brand, offer the best possible value to shoppers and strong margins for our retailers.

Competition in the convenience sector is always strong and at Londis we are always on the lookout for ways to help our retailers by helping them to Make More or Save More on Added Value Services. We focus on making Londis simple to do business with. Being part of a bigger group means we can offer more than most of our competitors with exclusive products and deals and our promotions remain some of the strongest in the sector.

We have continued to deliver the benefits of being part of a bigger group with more Group Exclusives, first to markets and NPD than ever before, keeping Londis retailers ahead of the game. We have continued to make Londis simple to do business with whenever possible, providing extra benefits such as free recycling, investing in our infrastructure and also continuing to develop our exclusive added value service deals to help crime prevention and also to innovate in the food- and drinks-to-go area.

Our promotions remain the best in the market and our margins some of the strongest and this along with product innovation means Londis stores stand out from the competition. Londis remains a zero-cost model which really helps and being part of a bigger group helps us stand out from the competition; we have a laser-like focus on putting the customer first.

The past year saw Londis launch our Store Of The Future, showcasing all our latest thinking including digital screens, new-look POS, a beer cave and merchandising efficiencies throughout the store.

We have added extra SKUs to our Jack’s range and also introduced more and bigger promotions to drive sales further including new key promotions on Chilled & Fresh lines to drive sales. We also spend a lot of time ensuring the quality of our own-brand products as without that you won’t retain consumer loyalty.

The on-the-go mission is seeing continued growth this year and Londis retailers can access some great deals. Home delivery is definitely here to stay, and we continue to work with all our supplier partners to help our retailers tap into this market.

We are investing record amounts into technology within our business to continue to ensure Londis are easy to do business with and that we are fit for the future. To help our retailers, we have brokered exclusive deals with a number of ESEL companies with reduced charges, interest-free credit and extended warranties.

One of the biggest challenges over the past year has been inflation, rising costs and the continued cost of living crisis for consumers. The challenge from the increased presence of the multiples in the convenience sector has meant we have also had to up our game to make sure our offer remains the best in the market and we support our retailers to be as competitive as possible.

We have developed our own brands, delivered our best ever SLAs and worked hard with our Added Value Service partners to help our retailers save more and make more, all whilst maintaining availability.

There’s never been a better time to join Londis.

---

Feel the power of Day-Today

In the ever-evolving landscape of retail, finding the right symbol partner is paramount for local retailers seeking a fresh start. Day-Today stands tall as the fastest-growing cash and carry retail chain in the UK. Founded in 2003 with the simultaneous opening of 30 stores, Day-Today has grown into a network of over 300 shops in Scotland, embodying a commitment to service and community.

At the heart of Day-Today’s success is a commitment to going the extra mile for customers. These stores take pride in servicing local communities, presenting a cash and carry ‘one-stop-shop’ concept for all essentials. The Day-Today group understands that first impressions matter, striving for excellence to ensure a lasting connection between customers and their local stores. Offering a fresh, modern, and professional convenience store service, Day-Today delivers the perfect package for your neighbourhood or high street.

Day-Today is not just a symbol group; it’s a catalyst for success in the world of retail. The accolades amassed by Day-Today stores over the years are testament to their dedication and success.

In the world of retail, the right symbol partner can make all the difference. Day-Today goes beyond the conventional symbol group experience. Joining us is not just a strategic business move; it’s an immersive journey into a supportive community. The phenomenal growth, community-focused approach, and industry accolades position Day-Today as a top choice for local retailers aiming for success. As the SLR Symbol Group, Fascia & Franchise Guide unfolds, consider the unmatched benefits of joining the Day-Today symbol group—a partnership that goes beyond convenience, embracing community spirit and retail excellence. Explore your options wisely and let Day-Today be the cornerstone of your success story in the coming year.