This is the sound of the symbols

The symbol market in Scotland is one that finds itself in rude health, with all groups competing to win the business of local retailers – and more retailers are joining groups thanks to increased competition. We investigate the strengths of the sector and its major players.

In Scotland there are over 5,500 convenience stores – more per person than in any other part of the UK. In fact, this represents one shop for around every 950 people. In able to make these shops competitive their owners are increasingly inclined to join a symbol group.

According to IGD research, the convenience sector across the UK is growing at +1% year on year. It puts this marginal increase down to the continued slowdown in the decline of unaffiliated independents and the continued growth of multiples and symbol groups.

While it is multiple convenience groups which are driving the bulk of the growth, at +13.6% year on year, symbol groups are growing at +7.6%.

In fact, symbol groups are the largest sector of the convenience industry, generating revenues of £15.5bn across the UK. This compares with £7.3bn for multiple convenience formats. Unaffiliated stores still command £6.5bn. For the purposes of IGD’s figures, forecourts are classed as their own entity (£4bn), with Co-operatives taking in £4.1bn.

According to IGD, “Retailers are constantly evolving, looking for new ways to meet the needs of shoppers. Part of this is the continued move away from a ‘one size fits all’ approach. Stores are increasingly being adapted to meet the needs of local shoppers, offering product ranges which are best suited to the local population. This increased tailoring of the stores’ products and services, not only benefits the customer, but also creates a point of difference for the retailer.”

While unaffiliated retailers can push their businesses as far as they can, there is a strong argument that only by joining a symbol group can a local retailer truly be able to provide an offering that can compete with the competition.

“Retailers are constantly evolving, looking for new ways to meet the needs of shoppers. Part of this is the continued move away from a ‘one size fits all’ approach.”

There are a huge number of reasons for remaining unaffiliated: there’s the freedom to do what you want to your store, when you want to. You’re not obliged to spend a specific amount of money on stock, you can chose to buy what you want from where you want.

For many retailers that is enough to ensure their complete independence. As the statistics prove however, more retailers are joining symbol groups. More fascias are entering the market and the increased competition has undoubtedly improved the standard of stores over the past decade. Tiering structures have been introduced by many symbol groups, with premium offerings available by some, while others base different fascias on store sizes.

In this feature we’ll be taking a look at what’s on offer from the major symbol groups. The reasons for joining are plentiful. For a start there’s the support that comes with it – that includes everything from technology, such as the implementation of tailored EPoS architecture and IT support whenever it is required, to promotional offerings that allow retailers to make the most of deal – and with value for money such an intrinsic part of grocery shopping, strong promotions can win over customers and keep them coming back time and again. There are the leaflets that come with those promotions too.

Beyond that there is the huge depth of range, and the buying power the groups have. There is also support with ranging and merchandising, and planning refits if that becomes part of a retailer’s plans.

Buying groups have also raised their game on own-label products. Huge ranges are available, enabling retailers to offer quality at a reasonable price alongside branded products.

All of these reasons – and many more besides – are discussed on the following pages, and throughout, it’s worth remembering that the ability to become more competitive acts as a platform for a store to reach new heights.

Spar

Spar Scotland is in the unique position of being headquartered right here in Scotland, meaning its management have a deep understanding of what makes Scotland’s local retailing scene tick.

Operated by CJ Lang from its base in Dundee the company has the largest sales force of any symbol group in Scotland.

The company says that it is always exploring new ways to offer its customers value for money, citing S Budget, £1 ranges, price marked packs and innovative solutions exclusive to Spar stores such as ‘Fresh For Less’ and £1 Value pricing , to deliver on this and optimise the value perception of Spar. It also provides customers with a range of good quality products at prices they can afford. As part of this retailers have access to over 300 Real Deals promotions every three weeks, seasonal & themed promotions, and appealing Meal Deal solutions.

Its range of fresh food is also continuing to expand. With over 125 fruit and veg lines and 900 chilled lines, Spar can help you grow in this expanding and profitable sector. With higher margins and strong shopper demand, fresh must be an integral part of every store’s offer.

Spar has over 300 fresh lines as single picks to help retailers manage their sales and waste, while it also has trading relationships with many local companies who can supply daily on a sale or return basis. On top of this it already delivers a successful lunch meal deal with high impact POS.

Spar also plays a strong hand when it comes to advertising, promotions and own label range, commenting: “we have become the obvious destination for progressive retailers looking to grow their business and take it to the next level.”

Spar’s store development has three clear objectives – Increasing Sales, Improving Profitability and Delivering top class Store Standards. With this in mind Spar offers a complete development service to ensure you get the best possible return for your investment.

With its new format it has updated its fascia branding and the changes to macro and micro planning have proven hugely successful, delivering significant sales and profit increases to retailers.

When it comes to marketing, stores are provided with comprehensive point of sale kits for every three week promotion, while themed kits are provided to bring seasonal and themed events to life. There is also heavy investment in TV and leaflet distribution along with sponsorship of high profile events.

The most recent Spar multimedia campaign launched in September 2013 and launched its “There for you” strapline. The campaign comprises of TV sponsorship, various TV adverts, a re-launch of the Spar website and a shopper magazine distributed to 1.6 million households across the UK.

Best-One

Best-one, the symbol operation of the Bestway Batleys Group continues to gather momentum across the UK. Sales are up 38% this year following substantial double digit growth in 2013.

Best-One retailers have the freedom to shop how they choose; they can order online and have products delivered or collect them from their nearest depot; they can come into their local Batleys depot for the complete shop, or they can choose to pay by cash, card or credit (subject to status). Credit is offered on an individual store basis, ensuring great flexibility in ordering and payment.

Last October the group launched My Rewards, a multilayered rebate scheme which encourages members to do things that make good business sense, such as stocking a wider range of fresh and chilled, delivering enhanced compliance in consumer promotions and centralising their buying on key promotional products.

Through the scheme Best-One retailers can earn as much as a 5% rebate on purchases, which can rise to 10% on promotional products if they take advantage of Batleys Core Connect programme.

For Best-One, recruiting retailers it is not a numbers game. Best-One is interested in helping forward thinking retailers develop their business through focusing on the categories and disciplines that are set to drive the convenience market in the future. In return, retailers will benefit from great flexibility in ordering and purchasing, highly competitive pricing, an extensive product range, superb monthly promotions, a generous rebate scheme and a dedicated business development executive to help them develop their business.

James Hall, Director of Symbol, says: “I keep saying that a good symbol group is about much more than simply fascia and promotions. It’s about investing in its members to help them better meet evolving consumer needs for shopping little and often. This is exactly what we are doing at Best-one and that’s why we are seeing double digit growth year on year and our number of stores increasing both in Scotland and nationwide.

“At Best-one we know that independent retailers need all the support they can get,” Hall explains. “That’s why we’re working to help them better understand why a shopper is in their store and what they’re looking to buy. Now more than ever, independents must have the right mix so that every square foot works as hard as it can for them. Our promotional offers are highly competitive and we are now producing point of sale which signals value to the consumer by highlighting price comparisons with the major multiples.”

Best-one retailers also benefit from a retailer rebate system where they can earn up to 5% cashback on purchases through all Bestway group platforms – Batleys C&C (via cash and credit), online (www.batleys.co.uk), drop shipment and delivered (Bestway Direct). To qualify retailers need to buy into disciplines and promotional compliance as well as spend. This not only rewards Best-one retailers but the scheme is also designed to attract new retailers who are looking for a progressive symbol group that meets their needs but also recognises their achievements.

“My Rewards is all about Making Business Sense and doing the right things well,” says Hall. “This means being disciplined and offering promotions to customers, meeting their chilled and food to go needs, and stocking the right range. Since its launch, the scheme has been an unqualified success, particularly in Scotland. On average, qualifying Scottish retailers are receiving rebates of over £667 per month – over the course of a year that’s over £8,000 retailers will pocket. This compares to the national average of £530 per month. Hall adds: “If there are any unaffiliated retailers who want to get to the next stage in their retail profession or any who want to switch symbols, we’d be more than happy to discuss the opportunity with them.”

Every Best-one retailer undergoes a review of their sales and profitability potential to identify the areas in their store that underperform and can be improved taking into account modern consumers’ shopping needs. As a result a revised store layout, based on shopping missions rather than traditional category-based layouts, includes distinct food-for-now, take-home and emergency top-up areas.

X-Local

It is a fact of convenience retail that many retailers are wary of being tied into symbol agreements, having to comply with minimum orders for their store and finding hidden joining or costly monthly fees.

Remaining unaffiliated is the obvious choice but Xtra Local from Bestway gives retailers the chance to offer customers great products at great prices which allows them to make decent margins with regular promotions to help them compete with your competitors.

Xtra Local gives forward thinking retailers the opportunity to run their business their way but with the backing and expertise of Batleys £2.5bn buying power and over 500 Best-in own-label lines.

The symbol also offers its members a comprehensive promotional programme every month, which is supported by a free and professional point of sale kit personalised to your store. To encourage consumer footfall, 250 personalised promotional consumer leaflets alongside shelf barkers and posters are available to each member to reach out to their local community.

Retailers also have access to Impact, a monthly category focused magazine exclusive to Xtra Local members. In addition to highlighting each monthly promotion, the magazine is packed with information on how best to stock, display and promote the right range across key categories in your store.
Retailers also have the choice of trading under an Xtra Local banner and become part of the fascia group. Subject to qualifying the fascia is totally free as are quality window graphics and, unlike some other symbols, there are no admin or signing-on fees.

Available on-line, the category plans offer members valuable insight into what they should be stocking, displaying and promoting to maximise sales and footfall.

Finally, the modern, bright Xtra Local website has a retailer area with offer information, order forms, the latest NPD, etc, while the shopper area helps you engage with your customers by highlighting the current promotions available in your store.

Costcutter

Costcutter Supermarket Group reckons that retailers’ local knowledge combined with its own retail expertise provides a perfect partnership. With its buying power, specialist advice and ongoing support CSG says it can tackle market challenges, compete against the multiples and help ultimately grow your business the way you want to.

The company now offers one of the largest volume buying powers in the UK convenience sector – worth £5bn, through its joint venture buying company, The BuyCo, whose sole purpose is to negotiate the best prices for our retailers.

Its pricing is simple, transparent, fair and incredibly competitive, meaning that retailers can offer shoppers excellent prices because of great wholesale prices, that deliver strong margins for retailers. There are no hidden charges, no surcharges, no membership fees and no low or missed order fees. Competitive rebates are also on offer.

Retailers want a store that shoppers trust and recognise, and that has their own personal touch, tailored to meet the needs of their community. CSG’s three retail brands – Costcutter, kwiksave and Mace – are famous for value and delivering a strong retail experience across a broad range of convenience formats, including high street, village, large urban stores, forecourts and CTNs.

CGS says it recognises and responds to the on-going change in convenience shopping, from distress purchase to regular grocery shops. This explains why the company offers over 10,000 best-sellers so you can tailor your range, the best promotions in the independent sector with over 300 deals every three weeks and free POS to ensure your promotions are unmissable and drive sales.

An extensive list of direct-to-store local and regional suppliers are also availableto help retailers source local produce.

The company’s own brand Independent offers high quality at great value prices. It is a great alternative to big brands across three tiers – Independent Trader, Independent and Independent Specialist – and has been created just for local shops, giving people more reasons to shop and stay local.

CGS builds awareness of the brands with marketing that is focused on your local community – building engagement and driving sales. There is significant investment in TV and press advertising, free POS, bespoke leaflets and it is developing industry-leading digital marketing. The company also helps boost sales with major seasonal promotions and events.

In partnership with Palmer and Harvey, CSG delivers a personal, flexible and reliable service that allows you to just get on and run your business. Tri-temp vehicles mean you can get all your goods in one easy to manage delivery at a frequency that is right for your store.

On the technology front, CSG’s cutting-edge Activ Technology systems, including ActivCPoS and ActivOC, have been developed in-house by retailers for retailers to make retailer’s ordering process hassle free.

“We have been championing independent retailers for the past 28 years,” says the company. “Together we can make sure that it is the independent retailer that triumphs.”

Premier

Premier is the symbol group with the most stores in the UK, having just passed the 3,000 mark earlier this summer. Its focus on a great consumer experience and making more profits for retailers has helped delivered 12 years of double digit growth.

The group does not charge any joining or membership fees and also provides a fascia and imagery free of charge. Premier was delighted to be named ‘Symbol Retailer of the Year’ at The Grocer Gold Awards for consecutive years, which the group says is testament to the commitment of its customers to operating fantastic stores.

Premier also plays a strong hand on own-label, which includes both Euro Shopper as an entry-level brand and then Happy Shopper as a better choice. Both Euro Shopper and Happy Shopper are price-marked and deliver a minimum of 30% POR so retailers do not have to compromise their profits.

This is then complimented with the brand leaders as the best option. Premier delivers four fantastic ‘Mega Deals’ every four-weeks for retailers along with a wide range of extensive promotions. This is now delivering over £5m of extra sales each month for Premier retailers across the estate.
Premier retailers also have the backing of Booker, the UK’s leading food and drink wholesaler. As well as great value for shoppers, Premier members can also benefit from up to 4% discount on their spend at Booker. Through ‘Spend & Save’ Premier retailers can save thousands of pounds to help them operate a profitable business. Last year the group gave over £16m to its retailers through ‘Spend & Save.’ Free delivery is also available and along with internet ordering so retailers can spend more time in their business.

Premier remains a no cost symbol group with no joining or weekly membership fees. The fascia and internal imagery is provided free of charge and as well as a market leading promotional offer. All supporting POS including posters, shelf barkers and 1,000 personalised leaflets are free to charge to retailers. Members can also benefit from a range of discounts and savings on operating costs such as business insurance, recycling and energy bills.

Lastly, Booker has a team of over 100 dedicated Sales & Merchandising managers who are there to offer Premier retailers the best possible advice to drive their sales and profitability.

Nisa

Nisa describes itself as the natural home for independent retailers, saying it has worked tirelessly over the last 37 years to ensure it provides all the tools needed to compete against the increase in competition in the convenience retail sector. And unlike other businesses, because Nisa is member owned, so any surplus profits and rebates are reinvested back into members’ businesses.

With more than 1,000 members, well over 2,500 stores and an annual turnover of £1.6bn, Nisa and its members have the opportunity to negotiate the best deals and strongest promotions, allowing them to compete at the highest level, while supported by an award winning logistics service.

Nisa members benefit from over 13,000 products with hundreds of promotions including ‘Buy One Get Two Free’ ‘Better Than Half Price’ and deep cut deals in every three week period which are supported by in store POS and marketing material as well as through 5.5 million consumer leaflets which are delivered to homes throughout the community.

Nisa’s range also gives strong focus to an enviable chill and fresh range which is unmatched in the sector. As part of a massive £10m investment in price cuts and promotions to assist retailers in a competitive market place, Nisa developed its fresh meat and poultry offer with a range of key packs guaranteeing a minimum 30% margin return. And, due to its comprehensive distribution network Nisa members can benefit from these high quality fresh foods delivered six days a week.

Further to this, through Nisa’s Direct to Store department members can drive down their costs of their energy bills through Nisa’s partnership with key suppliers in this area.

These ranges, prices and promotions are successfully secured by Nisa’s trading team, who have invested time in building unrivalled, long standing and trusted relationships with all key suppliers in the retail trade, helping to ensure they understand the unique needs of independent retailers and their customers. So much so that Nisa has topped the Advantage Report, which is a study of 50 leading suppliers assessing them on criteria such as category/business development, retail execution and supply chain management, for the last four years.

It’s not only the strongest promotional support in the independent sector that Nisa provides, but it’s increasing its consumer awareness through national advertising, most recently through television as well as national press. Nisa consistently invests in this area and is currently driving innovation through the development of the marketing services it provides its members, to ensure their store becomes the first choice for customers.
After just announcing record volumes through its warehouses as well as impressive delivery figures, it is clear more and more independent retailers are realising the strength of Nisa’s offer and the positive affect this can have on their business.

Lifestyle Express

At Lifestyle Express, retailers are provided with the support, industry expertise and benefits of a national symbol group, while allowing them to maintain their independence.

The group offers retailers a comprehensive, award-winning package with a proven track record. On average, independent retailers achieve a 30% increase in retail sales after joining Lifestyle Express.

Landmark Wholesale has carried out research and identified a comprehensive range of bestselling products. By stocking these, and using our industry-leading planograms, retailers won’t fail to notice a surge in sales.

Lifestyle Express offers retailers the choice of two levels of store: standard and Evolution.

Alongside the Landmark Wholesale Central Office team, it also has a team of Core Range Advisors who work with retailers to identify opportunities to boost your sales and profit. By working with its advisors, you’ll know you have a fantastic mix of key products at different price points to suit all your customers’ needs. Retailers also have access to a Retail Development Manager who will provide expert advice on how to grow your business.

Landmark also offers a range of money-saving deals on store services, but with no membership fees or hidden costs. And, retailers can buy goods at cash and carry prices.

It also runs regular incentives for its retailers, all with the opportunity to earn Cash Back, just for stocking the bestselling products, displaying POS and adopting best retail practice. It’s a win-win situation.

“Retailers want a store that shoppers trust and recognise, and that has their own personal touch, tailored to meet the needs of their community.”

There is a full and varied promotions calendar including its innovative business drives which deliver bestselling products at the best prices with the best advice, proven to build business and increase your sales and profit.

Lifestyle Express has a wide and varied range of own-brand products including grocery, licensed, cigarettes, soft drinks. These include the Lifestyle and Lifestyle Value range of groceries, bestselling LSV energy drinks, award-winning Vintners Collection wines, No 3 cigarettes, Prince Consort spirits and many others.

KeyStore

As a stalwart of the Scottish convenience store scene, KeyStore aims to provide that important point of difference in a highly competitive convenience marketplace and on the back of its reputation for providing professional excellent customer service and its added-value services, the group continues to strengthen its position.

KeyStore wholesaler JW Filshill’s Sales and Marketing Director, Ian McDonald, explains: “A real point of difference we have over other groups is that we will provide a tailor-made package for you – we know that there is no ‘one size fits all’ trading format so we work in partnership with our retailers to find the solution that provides both flexibility and a competitive edge in the marketplace.

For the customer, KeyStore offers familiarity and the peace of mind that shoppers will always get their bread, milk and other everyday essentials in their local store. But what they can also guarantee is a friendly, warm welcome from staff and a shop that is clean, well laid out, well stocked and offering a pleasant shopping environment. Add ongoing promotions to the mix and your customers will come back time and time again, says McDonald.

Currently supplying 163 independent KeyStore outlets across Scotland and the north of England, the company is a member of Today’s Wholesale Services.

All KeyStore retailers qualify for membership of the Scottish Grocers’ Federation or Association of Convenience Stores. Says McDonald: “We offer retailers considerable flexibility to do their own thing and that is one of our major strengths. We also provide high levels of support behind the scenes and through regular face-to-face contact with the majority of KeyStore retailers receiving a visit from our retail development managers roughly every three weeks.

Increased investment in marketing, promotions and improving operating cost efficiencies through technology have helped JW Filshill stay ahead of the game.