rural retailer winter 2013/14

RuralRetailer

Issue 24 l Winter 2013/14www.ruralshops.org.uk

■ 2014 Promotions Calendar■ Symbol Group Pros and Cons

■ Controlling Energy Bills

The Journal of the RuralShops Alliance

Post Office Network Reinvention:

the Next Chapter

2 RuralRetailer ● Winter 2013/14 ● Issue 24

for moreinformation and

news...

In this issue...

Cover photo:Stoke St. Gregory,

80 years on.

Your contacts...

RuralRetailer ● Published by The Rural Shops Alliance. ● Printed by: Russell Press, Nottingham. ● Design: Kavita Graphics. [email protected]

Contents...

● Rural Shops Alliance20 Garland, RothleyLeics. LE7 7RF

● Tel: 01305 752044● E-mail: [email protected]● Website: www.ruralshops.org.uk

● In My Opinion, By RSA Chief Executive

● RSA National Meeting

● Action Checklist

● Eastcombe Stores: A Gamekeeper turned Poacher

● How to write a Press Release

● Store is the Core legacy

● RSA Views: Who is standing up for Rural England?Post Office Network Reinvention: The Next Chapter

● RSA 2014 Calendar

● Symbol Group membership: The Pros and Cons

● Hampshire Fare: Helping Rural Shops to Stock LocalProduce

● Controlling Energy Bills

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Please note our new

postal address

In my Opinion...Sometimes it seems as though the shops in rural communities havebeen there forever. Indeed, our cover photograph shows a shop thathas changed very little in appearance for a century

But, this can be very misleading. In the past,even quite small villages had multiple shops,often just tiny businesses run from somebody’sfront room. Most are, of course, long gone,leaving those we see today. But people forget thepast; they expect things to stay as they are.

The RSA obviously encourages local communitiesnot to take their local shop for granted. We shakeour heads when we see a resident drawing outtheir pension from the post office and thenheading straight to the supermarket. We shareshopkeepers’ incredulity at the nerve ofsupermarket home delivery van drivers comingto the shop counter seeking directions to acustomer’s house. These drivers genuinely do notsee the irony of their action. No doubt they arepuzzled when some shopkeepers get very“confused” and entirely inadvertently send thevan driver many miles out of his way.

A recent development has been an increasingnumber of supermarket deliveries arriving atcaravan parks and campsites. Some owners ofsuch sites are now refusing entry to thesedelivery vans. It is disappointing that people goon holiday but feel no need to explore the localshops or to support the local economy. They donot make the link between their own actions andtheir long-term results.

We thought we had heard pretty well everythinguntil one of our retail members told us about anew development. Their local not-for-profitaccessible transport organisation has started aminibus shopping service, picking up passengers

outside the shops in several villages and thentaking them to three supermarkets in the nearesttown. The fare charged is nominal and they evenadvertise that the driver will carry your shoppingto your door. To cap it all, the local village agentasked to put a poster advertising the service up inat least one of the shops affected. Apparently thisagent was somewhat taken aback by theresponse they received. I am sure that the peoplerunning this heavily subsidised service aregenuinely nice people - nasty people do not runcommunity transport. However, they had clearlynot thought through their idea. The organisationconcerned was quite taken aback when weprotested.

Running a village shop in a small remote villageis hard enough, without do-gooders trying to takeaway key customers. We are sure that theirpassengers would be horrified if their local shopand post office closed. But if it ever does, it willbe partly due to their assumption that villageshops are somehow forever, with or without theirsupport.

Issue 24 ● Winter 2013/14 ● RuralRetailer 3

FOREVER IS A LONG TIME

A traditional tiny sweet shop

Richard Garnett gave a presentationon the OpenHigh Street Project.

This is intended to allow independentshops to compete with the bigmultiples when it comes to homedeliveries, with the added bonus of alocal personal service together withlocal products rather than justnational brands.

A pilot scheme has run inHerefordshire and Richard is nowseeking support to take the concept

to the next level. We hope to run afull article on his progress in a futureedition of Rural Retailer.

● In the meantime, see:http://openhighstreet.com

RSA NATIONAL MEETING


The latest NationalMeeting of the RuralShops Alliance saw a

number of interestingpresentations,

includingcontributions from

two guest speakers.From the various

discussions, we wouldhighlight three in

particular.

David Fuhr from the Department forbusiness innovationand skills presented

the Department’slatest strategy update

for the retail sector.This document can be

found at:www.gov.uk/governm

ent/uploads/system/uploads/

attachment_data/file/252383/bis-13

-1204-a-strategy-for-future-retail

-industry-and-government-delivering-in

-partnership.pdf

Our Chief Executive, Ken Parsons,provided commentary, based onnational census data, on the whoactually lives in rural England. Hisbasic message was that too many rural shopkeepers believe that theircommunity is one made up largely of retired people.

They get this view because a highproportion of their customers aredrawn from this demographic,whereas in fact the population of ruralEngland is not that different in age

breakdown from the country as awhole. Rural areas have fewer youngpeople aged 15-29 than urban areasbut more proportionately in the 45-64age group. Only 17.9% of ruralresidents are aged 65 or more.The conclusion is obvious. In mostrural settlements, people of workingage far outnumber those that haveretired. Village shops that are onlyopen when most residents are at workare clearly restricting customers’opportunities to visit the store.

Although the number of peopleworking from home has risensignificantly in recent years, it is stillthe case that the vast majority ofworkers living in rural areas commuteto work by car.

● The figures from which KenParsons drew his conclusions canbe found in the report at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/260551/Census_Stats_-_Final.pdf

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Promotional Calendar 2014

Your Action Checklist for this issue...1. CHECK CATCHMENT DEMOGRAPHICS

p

3. CONSIDER RESPONSE TO POPROPOSALS (IF RELEVANT) p

4. PLAN PROMOTIONAL PROGRAMME FOR 2014 p

p6. REDUCE ENERGY BILLS

SEEPAGE 4

2. ISSUE A GREAT PRESS RELEASE IN JANUARY p

SEEPAGE 11

SEE PAGE 13

SEE PAGE 16

SEE PAGE 24

SEE PAGE 28p

5. SEEK OUT MORE LOCAL SUPPLIERS


In the centre of this edition of rural retailer, you will find acalendar for 2014 highlighting national opportunities forpromotions. We suggest you add any relevant local eventsand you then have the basis for seasonal activity for 2014,ready to pin up on your noticeboard.

What happens when a man who managedTesco stores for 26 years buys his ownvillage shop?

In just 15 months, it becomes, in the wordsof the RSA’s Ken Parsons: “one of the mostsuccessful village shops I have everencountered” – and that really is sayingsomething. And what’s more remarkable isthat Mike Dorey had never consideredrunning his own shop until, by chance, heand partner Debs found their perfect homein the catchment area of their son’s newschool… and the house came with thevillage shop attached.

Taking over Eastcombe Stores, high on theCotswold Hills near Stroud, meant that not onlydid Mike and Debs face a complete change oflifestyle, the complications of buying their firstbusiness and settling the family in to a newcommunity – but they had to earn vital goodwillamong the locals, and fast.

And it’s been an unmitigated success. In justover a year, weekly sales at the small shop andPost Office have leapt from £11k to anastonishing £19k; way beyond even Mike’sexpectations. Customers flock to the store,appreciating not just the stock on offer and thewarm welcome they receive, but the family’scommitment to the future of the enterprise andtheir active involvement in the local community.

Eastcombe Stores...


A Gamekeeper turned

The shop is not large

Mike’s success has even had a direct impact onsales at the local Tesco Express, less than a mileaway (and that makes him smile) and he isadamant that even Waitrose – the nearest majorsupermarket five miles away in Stroud – hasalso seen its sales affected by it. But although headmits that knowing retail inside out after allthose years with Tesco has certainly helped,running a village shop has its own, verydifferent, challenges and he’s had to learn a lottoo. Not least is the need for a successfulpersonal relationship with customers, wheretaking the time to get to know them really paysdividends.

“We came in with enormous enthusiasm andenergy and made sure we were veryapproachable,” he says. “We did simple thingslike choosing to support a local charity ratherthan a national one which more than doubledthe donations in the collection box; weapproached local organisations, clubs andsocieties, actively looking at ways we couldsupport and promote them. Debs helped with

the local Scout Group and now volunteers at thevillage school. We’ve also sought out localsuppliers – from the office window I can see thefarm where our beef comes from! With myTesco head on I was dubious about price andavailability but I needn’t have worried. Thequality and consistency is first class.”

By Beth Whittaker


Poacher

The Post Office is very busy, with a fortress at the far end of theshop. Designated as a potential Local by POL. it is very hard indeedto see how POL demands to move it next to the shop counter couldbe accommodated

Mike Dorey

And, of course, it’s essential to build a mutuallybeneficial relationship with your core supplier –in Mike’s case the symbol group Londis(although one suspects Londis might have mettheir match here!)

It took Londis only two months after Mike tookover to decide it was worth investing in therevived Eastcombe Stores, putting up £10ktowards an initial £25K refit.

“They know we’re worth it,” comments Mike.“We put £30K of our own money into thisproject in the first year, focusing on making theshop everything local people want it to be. Wechanged the layout and range of products,adding more than 200 new lines and whereverpossible bringing in items requested by ourcustomers.”

Mike says it’s been an interesting experiencesourcing products which customers want and


maintaining margins, but customers appreciatethe effort.

“We’re lucky to have a sizeable storeroom so wecan hold high volumes of stock which enables usto have a full shop floor. I believe one of thebarriers facing a lot of small retailers is fear ofholding too much stock.

One of the first things we did was to alter ourdelivery days with Londis to suit our needs. Iknew from day one that their delivery daysweren’t going to suit us, and within a monthwe’d negotiated with Londis to have threedeliveries a week: Monday, Wednesday andFriday. Initially it was twice a week, then threebut on the wrong days for us. Now we are closeto that ‘just in time’ ideal. We even negotiatednot to have the Londis fascia on the frontbecause although we are delighted with thequality of the Londis brand – and I admit I havelearned a lot from them - we wanted our

Eastcombe Stores...continued

Counter area with strong food-to-go offer. Note bottled sweets on backwall


customers to identify us as an independentretailer first and foremost. You’ve got to fightyour corner if you want to be successful!”

The shop is now heading for a second ‘mini’refit including new tills and back office facilities,with Londis again making a major contribution.“At the moment, our till system suddenly shutsdown for no reason. The customers think it’sfunny in a ‘computer says no’ sort of way, but it

Aisles are quite tight and shelving is high to accommodate therange in the limited space available

Strong support for Londis special offers on a prime gondola end

The off licence occupies a lot of prime space but sales justify it. The £5 wine tower can be seen in the foreground

is frustrating,” admits Mike. It seems that thetills and back office are the only elements of theshop not working brilliantly. Even the PostOffice service is a beacon of productivity thanksto welcoming and positive staff and minimalqueues – all championed by Mike.

“I’ve been to enough small post offices to begreeted by long queues and disconsolate staff.My whole ethos in the Post Office and in the

Eastcombe Stores...continued


store is something I did take away from Tesco –building a strong team spirit which results inhappy, helpful and enthusiastic staff.”

Eastcombe Stores may only have 700 sq. ft. ofdisplay space, but through judicious planning, itoffers a fantastic choice of more than 2,000lines. Mike’s mantra of “doing what the big boyscan’t” is amply illustrated by their fresh bake-offproducts with sales rocketing from £450 a weekto more than £1,000 a week. Another success istheir £5 per bottle wine tower, which is creatingquite a stir locally.

“It’s about thinking what will encourage morepeople to shop here more regularly. I knowwhat my competition is – the nearby TescoExpress and Waitrose in Stroud. I don’t want tobe another Tesco and the local communityseems keen to support a local independentbusiness. I reward that support by giving themwhat they can’t get elsewhere,” says Mike. “Youcould say it’s a revolt against the might of thebig superstores. You only have to visit theaward-winning Stroud farmers’ market toappreciate how more people are turning to localtraders for their produce. We believe we’rechanging people’s perception of what a villageshop can offer in terms of value for money andquality.”

Shelf profiles are well adapted to the stock on them - there is littlewasted air space

Although Eastcombe is a small village, it is rightnext door to a very large housing development atBussage which brings in a lot of custom. Thestore’s sales breakdown includes a majorcontribution of £3,500 per week from beers,wines and spirits, some 18% of turnover and upfrom £2,000 per week when they took over.Baked goods represent 6% of sales, with freshfruit and vegetables, much of it locally sourced, at4% (although only in line with industry average,this represents a share of business that hasdoubled in 15 months).

Is there room for further growth, or a danger thatMike will become, dare we say it, bored? “Debs gets up at 5am and I start at 6 - a bigchange to my Tesco life (whatever happened tofive weeks’ holiday a year?) and my mother-in-lawColleen lives with us and gives us a huge amountof support in the running of the house andancillary jobs for the shop. So unless we literallydidn’t sleep, I can’t see we could grow muchmore,” muses Mike.

Even the couple’s sons Tom, aged 11 and Jack, 17(who works all day Sunday), bolster the sevenpart-time and two full-time staff when they can bydelivering papers and helping with the three-weekly promotion change. “It’s been a fantasticsuccess and has taken over our lives – but that’snot to say we wouldn’t consider expanding ourbusiness to take on other village shops as well,”grins Mike, perhaps dreaming of a Doreys’ empireto compete with Tesco Express?

The competition - less than a mile away


Free Publicity...

The key to attracting media attention is the“hook”, the aspect that makes your story standout and which will make it interesting for theaudience. Use events to get publicity. It does nothave to be grand in scale; a food tasting, apresentation of a charity cheque or a visit by thelocal MP. Stories are more likely to be taken upif they are about people rather than things. Ashop having a refit is not very newsworthy; thelocal hundred-year-old “character” to cut theribbon is the real story. Journalists like humaninterest stories, particularly those wheresomebody has overcome difficulties. Theproprietor cooking a breakfast fry up for thestaff after they have spent all night mopping upafter a flood could be a story, the fact that theshop now looks nice is far less interesting.

Invite the local media to your events but do notbe surprised if they fail to come. Give them acouple of weeks’ notice of your event and followup a couple of days before it. Local media areon very tight budgets and often your story maynot warrant sending a reporter. Whereverpossible, address correspondence to namedindividuals at the newspaper or radio station.Telephone their switchboard to find out who therelevant person is and get their e-mail address.

For most rural shops, paid-for advertising isexpensive and does not deliver worthwhileresults. However, local papers and radiostations are always looking for interestingstories to cover. If you can attract theirinterest, then you can get a considerableamount of publicity for free.

Good photographs are very important. If you arepart of the story, get somebody else tophotograph it. You need to be in shot and youwill be too busy to do it properly yourself. Use ahigh-resolution camera rather than a mobilephone. If you are taking a group shot, makesure people are standing very close together.Chose the background carefully. Do make surethat nobody has a telegraph pole sticking out ofthe top of their head and do think what willwork well – do you want your shop sign in thephotograph, for example? The interior of shopscan cause problems in terms of lighting andglare, so outside shots are often better.

Your press release must grab the reader’sattention as quickly as possible. It should beshort and to the point. Always include a directquote from a named person. This gives the storythe human angle that journalists crave. Alwaysput any explanations or further information atthe end. This is material that probably won’tappear in the article but gives the editor aclearer idea of what is going on.

How to write a PressRelease

It was managed by Wiltshire Community Firstand the RSA was an active partner in thescheme. It has been hugely successful,supporting over 160 retailers with direct one-to-one coaching and advisory support, with manyothers attending training seminars held acrossthe South West region from Gloucestershire toCornwall.

Tim Coomer project manager commented,“Store is the Core has been a great success, wehave worked with a great many retailers and haveseen real improvements in the majority of thesebusinesses. It’s a shame to see the scheme come toan end but the resources we have developed willhelp retailers for many years to come. We are

The end of the store is the core programme in the south-west in December 2013 markedthe end of an era. Funded through DEFRA, this was the last major regional supportprogramme for rural shops.

convinced that by helping a retailer to be moresuccessful, access to vital services is maintainedand helps ensure vibrant and sustainable ruralcommunities.”

Unfortunately, funding for this type of schemenow lies mainly with Local EconomicPartnerships, which generally have little appetitefor supporting small rural retail businesses. It istherefore important that the programme isleaving a solid legacy to ensure all the goodpractice, learning, skill sharing and enthusiasmis not lost.

Through the scheme’s website, retailers canaccess a range of case studies, five training filmsand detailed fact sheets. These cover a variety oftopics for busy retailers to access and workthrough in their own time. Topics range frommarket research through stock range, pricing,layout, staff training, to how to be sustainable inthe future. The films, which are available onDVD or downloadable through the website,focus on good practice in the stores we workedwith and use real life examples.

● Visit www.storeisthecore.org.uk or contactCommunity First directly on 01380 723179or [email protected].

Store is the Core...


Store is the Core finishes butleaves a legacy of online resources

Tim Coomer (right) and Gareth Allen of filmmakers SoundviewMedia “on set” in a store

Funded by:

RSAViews

Recently published data breaking down the 2011 censusfor rural parts of the country highlights this fact. 9.3million people live in rural England. If this was a separatecountry, it would give it a similar population to Sweden. Itwould be double that of Eire. In a UK context, it is threetimes the population of Wales. In fact, the population ofrural England is greater than that of Scotland and Walescombined.

In some countries, there are political parties thatspecifically represent rural interests. The UK politicalsystem has not developed in that way. One can onlywonder at the lack of attention paid to the specificinterests of rural England. Compare it with the politicalweight wielded by Scotland and Wales; it is fair to ask justwho is standing up for the people living in rural England?

Both Wales and Scotland have had government fundedschemes to support rural retailers and post offices. Theseschemes have recognised the crucial social importance ofretaining local shops in rural communities. In fact, in thepast government agencies in England did provide adviceservices and modest grants to support rural shops. Up toabout 15 years ago, The Rural Development Commissiondid just that, with its work carried on by the successororganisation, the Countryside Agency. When that lost its

economic roles, the Regional Development Agenciesprovided only limited and patchy support. In a blink of aneye they too were abolished. Today we have LocalEnterprise Partnerships. None, as far as we know, hasany projects to specifically support our sector.

● For National Census data on rural England, seehttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/260551/Census_Stats_-_Final.pdf

Winter 2013/14

WHO IS STANDING UP FOR RURAL ENGLAND?We all tend to think of England as a countryof large towns and cities. Of course, this istrue, but that way of thinking masks the factthat large numbers of people live and workin rural England.

open by March 2015. To date 1,400 branches havebeen converted, with another 800 committed, meaningthere will be a massive shortfall against this target.Hence the need for a new strategy.

The BIS minister responsible, Jo Swinson, outlined thenew future for Post Office Limited (POL) in Parliamentlate in 2013 but this time the follow-up booklet,“Securing the Future: Strategy 2020” was published byPOL itself. As regards the branch network, the plan is tocreate a network made up roughly as follows:

● 300 crown offices● 4000 main offices● 4000 local offices● 2000 community offices ● 1400 outreach

The first two largely relate to the urban situation. Crownoffices are in city centres and are operated directly byPOL, whilst Main branches serve locations with largernumbers of customers from a dedicated post office area.They provide a full range of services.

At the other end of the spectrum, outreach services areprovided by staff coming in from another post office,setting up in a shop, village hall or other premises for afew hours a week. In some cases, services may beprovided from a van.

The Community ModelThe recent announcements provide some good news,for offices designated as community post offices. Subpostmasters in these locations are being offered thechance to remain on the existing sub postmastercontract, with some funding available for investment tomodernise the branch.

RSA Call for Better Deal for Rural PO’s (Partly) Answered!

RSAViews

The Year 2020 replaces the Digital AgeSince then, there have been four ministers withresponsibility for the Post Office (Ed Davey, NormanLamb, Jo Swinson and now Jenny Willott (her maternitycover)) and the world has changed, although notnecessarily in the way predicted three short years ago.On the plus side, there have been few post officeclosures and there has been significant investment inthe branch network. However, it is fair to say that realityhas fallen far short of many of the key governmentcommitments published in November 2010.

In terms of the branch network, the BIS plan called for6,000 new format post offices, Mains and Locals, to be

Three years ago, the Department forBusiness Innovation and Skills (BIS)published a strategy document,” Securingthe Post Office Network in the Digital Age”.

Network Reinvention – the Next Chapter

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www.ruralshops.co.uk

not clear what happens if no other suitable candidatecomes forward.

Information gatheringTo enable POL to gather information about the business,sub postmasters are being offered a one-off payment of£2000 to complete two surveys. This sum also includesthe pay increase for the next two years. The NFSPwarns that the results of this survey could result insome sub post offices deemed to have insufficient retailsales to be “encouraged to leave the business, even ifthis is against their wishes”. The CWU goes a stagefurther, claiming that they face “compulsoryredundancy”.

The broader picture

The plans make a lot of sense at a strategic level. POLis in competition with other providers of financialservices and hence its income from them is constantlyunder pressure. The promised new governmentcontracts have not as yet materialised. At the sametime, there are the pressures to meet customers’demand for longer post office opening hours. It’s atough call.

15 years ago, running a post office provided a goodregular income. Sub post offices were sold on withconsiderable goodwill premiums and in practice the postoffice was often more profitable than the associatedshop. Today that relationship is reversed. There is littleor no profit in running a small post office and POL areactively looking for locations where a shop can supportthe post office operation.

First the good news. It is excellent that there will bemore investment funds available to improve post officeoutlets. We are also very pleased indeed that a largenumber of rural post offices will be designated ascommunity outlets.

This should go a long way to protecting the livelihood ofmany rural sub postmasters and the continued tradingof the shop’s in which these post offices are located.

RSAViews

The criterion is to be more than half a mile from analternative shop. We are very surprised at the estimateof only 2000 such outlets and we would expect a largenumber of branches designated as Locals to appealagainst their designation in the coming months.

The options 1 and 2 listed below under the Local modelare also open to sub postmasters with the Communitymodel.

The Local model“Local” PO branches are located within another retailbusiness, with a PO counter located next to the shopcounter and with the post office open the same hoursas the host retail business. In theory, the same staff canoperate the shop counter and the post office section.The local option involves loss of the fixed core paymentreceived by sub post offices (remuneration is solelybased on transaction payments), loss of holiday pay,removal of the post office section to alongside the shopcounter and post office opening hours the same as the shop.

POL has sent letters to the sub postmasters in locationsdesignated as suitable for a Local post office, offeringthe following options:

1. Convert to a Local. Compensation equal to a year’sremuneration would be paid and investment of up to£10,000 would be made available to convert thebranch

2. Leave the network with a payment of 26 monthsremuneration, provided the Branch is relocated toanother business nearby.

3. Appeal to be re designated as a community branch4. If the current sub postmaster of an office designated

as a local does not have a suitable retail business oris unable to offer post office services over therequired hours then they can submit a business caseto remedy the situation. Failure to do this will lead tothe “option” of leaving the network with the 26months remuneration package, provided POL are ableto relocate the post office to a suitable retailer. It is

offer competing services for mails or deliveries, banking,financial services, bill payment services and the NationalLottery. Many may have existing contracts in place forthese services. Prospective new operators are evaluatedon a number of criteria by POL, including how much ofthe existing PO business will migrate, the impact onneighbouring branches, routes to the new site, publictransport links, parking, accessibility of the potential newpremises, space in the new site and opening hours. It isnot a foregone conclusion that a prospective operatorwill be accepted and from their point of view, thebusiness plan may simply not work.

● For more information, see:http://www.postoffice.co.uk/sites/default/files/292134%20Strategy%20Overview%20Booklet%20nov%202013_External%20220x303mm_SP.PDF

RSAViews

The problem comes with the Local format. We haverepeatedly suggested to government ministers and POLthat it is not appropriate for a large number of rurallocations. We have provided a number of case studies toPOL to make our point. We are delighted that ourconcerns have been addressed with the creation ofCommunity offices. This will safeguard a lot of thebranches operated by our members. Full marks to POLfor this aspect of policy.

But for many sub post offices designated as Locals, thishas no commercial or operational sense. Keeping a postoffice open long hours does have associated staffingcosts, siting the post office counter next to the shopcounter can cause significant queuing problems,removing the fortress takes away space to store parcels,etc. Converting to a Local can cause real problems,which is why so few sub postmasters have to datevolunteered to do so. Turkeys don’t vote for Christmas.The concept can work but only in certain locations. Inthe past we have received repeated assurances thatconversion to Local would remain voluntary. This policywould appear to have been abandoned.

We would expect over time that a large number of thesesub post offices would move to alternative businesses –if prospective operators can be found. Taking on a postoffice local is a significant commitment. POL has strongnon- compete restrictions for potential new operators. Ifthey take on a post office, they are unable to continue to

The privatisation of Royal Mail will have a long term impact on PostOffice branches

GROCERIES CODE ADJUDICATOR USES HER POWERS asking suppliers to pay for eye-level displays for theirlines, Christine Tacon has indicated that such paymentsare contrary to the spirit, if not the letter, of theGroceries Supply Code of Practice. Suppliers would seethem effectively as a requirement, which would not bepermitted under the Code.

Tesco have now backed down. We very much hope thisis a sign of things to come from the GCA.

The RSA is very pleased thatthe recently appointedGroceries Code Adjudicatorhas shown that she isprepared to stand up to thesupermarkets. Following acomplaint that Tesco was

Christine Orrell Tacon, GCA

There are now numerous different groups, eachwith their own approach to business and havingdifferent requirements for membership.However, many independent retailers are verycautious about the loss of independence theyassociate with the symbol groups.

The long-term trend is for symbol group storesto be taking an ever-increasing share of theconvenience store market.

At the RSA, we firmly believe that every ownerof a rural convenience store that would qualifyfor membership of a group should at leastinvestigate the pros and cons of doing so.

This isn’t to say that it is the right course foreverybody – it isn’t – but for many proprietorsjoining a symbol group has proved to be one ofthe best decisions they have made, transformingtheir business.

Overleaf, we have tried to summarise the mainpros and cons of membership, although ofcourse different groups provide differentpackages of benefits. It is up to the individualretailer to research what each company canoffer and make their own decision.

Symbol Group membership...


The Pros and ConsRetailers often bemoan the perceivedcompetitive advantages enjoyed by the bigsupermarket chains. Membership of asymbol group is one important way that anindependent retailer can access many of theadvantages enjoyed by the big multipleswhilst remaining in charge of their ownbusiness.

Convenience channelmarket shares

cooperatives 11%

symbol groups 42%

unaffiliated independents 18%

convenience multiples 18%

convenience forecourts 11%

● Customers may have more confidence and

be more prepared to shop with a national

fascia rather than to use a one shop

independent. This branding is particularly

important for businesses with a high level of

passing trade, where many potential

customers do not know the business and may

need reassurance. It is less important where

most customers are local residents who visit

the shop regularly.

● The buying power of the group should

enable it to offer good cost prices, allowing

the retailer to either take a higher margin or

to pass some of the savings on in the form of

lower retail prices.

● Central invoicing can make bookkeeping a

lot easier, particularly when it comes to drop

shipment suppliers. Some groups will arrange

for your local suppliers to be included in

central invoicing arrangements.

● Training, support and backup should help

you to up your game as a shop manager.

Typically, there will be a regional

development manager to support you,

together with professional backup teams to

help you in areas such as store planning and

merchandising.

Symbol Group membership...continued


Booker’s Premier fascia has easier entry requirements than most groups

The Pros... ● Availability of help and support in

upgrading the shop to the standards required

by the group, sometimes with financial

assistance. Some groups demand that their

ideal standards be adhered to completely,

others are far more flexible on the retention

of existing displays and fittings.

● The group’s own label products can help

you compete more effectively against the

supermarkets, where up to 40% of their sales

derives from their store own label. Being able

to compete in this area is becoming

increasingly crucial.

● Usually there is a regular promotional

programme, with appropriate show material

and support provided. Typically this will

include a regular cycle of promotional offers,

backed up with posters, shelf edge tickets and

customer leaflets.

● Group advertising campaigns on a regional

or national basis. All groups will have a

website and many have Facebook or Twitter

campaigns as well.

● Retail systems, such as EPoS and online

ordering, are often provided free or at

discounted cost. Use of their computer

systems for ordering is compulsory for many

groups.

● Administrative support is often provided in

areas such as payroll.

● Regular deliveries of stock, reducing or

eliminating the need to visit the cash-and-

carry.

Symbol group membership does not preclude other messages


...and Cons● Depending on the group, there may well bemembership fees or other costs. These caninclude an upfront joining fee, weekly ormonthly fees and charges for specificservices. Against these, some groups providediscounts or rebates related to volume on thegoods you source from them.● There will usually be a requirement for youto order a minimum value of stock or aminimum number of cases on a regular basisfrom the group. This may inhibit you fromseeking out best prices across a range ofdifferent wholesalers or using smallersuppliers.

● There may be a significant cost to bringyour store up to the standards expected ofgroup members, depending on how good it iscurrently.

● You will be expected to maintain storestandards to the level expected of all groupmembers, although you would probably wantto do this anyway.● To a varying extent between groups, you willbe expected to follow planograms, specialoffer programmes, marketing campaignsetc., although most are more flexible thanmany independents give them credit for.Again, it should not be too great a hardship tobe expected to stock national bestsellers ineach category.

● Customers may need reassurance that youstill own the business and that you are still anindependent businessman, that the shop isstill an integral part of their community.Some customers are very keen to supportlocal businesses.● You may not want to use the group’ssystems, such as ordering or payroll.● Many shopkeepers value theirindependence very highly and may not wantto have a third party involved in theirbusiness in any way.

Windowgraphics can be

part of thepackage, if

appropriate

Smart Nisa Local fascia is matched by a cleanattractive sales area treatment

Some groups have improved their fresh offermassively in recent years - in this case, fruitfrom the Londis Supervalu range

The Rural Shops Alliance has consistentlyencouraged our members to stock as manylocally produced lines as possible. Apartfrom the benefits to the local economy,customers want to buy them and theyprovide rural shops with a key point ofdifference from the major supermarkets.

Recently, the RSA and Hampshire Fare bothran sessions at a training day for ruralretailers in the county and so we took thisopportunity to find out more about theirwork and hear how a couple of retailershave benefited from their support.

Hampshire Fare was set up in 1991 by a smallgroup of food producers eager to promote thebenefits of buying local produce. More thantwenty years on, this vision has grown into afood group that supports more than 260 localfood, drink and craft businesses.

Hampshire Fare is able to offer these businessesPR and marketing support, networking andevent opportunities and the chance to promotetheir products and services. Bringing localproducers, hospitality venues and retailerstogether in this way helps to strengthen theirregional and national presence. The networkingopportunities given to members have also led tomany profitable working relationships andcollaborations between members.

Hampshire Fare organises the annualHampshire Food Festival. Held throughout July,this award-winning food festival showcases andcelebrates local food and farming. Eventsinclude vineyard, farm and brewery tours,cooking demonstrations and food markets,tastings and workshops. In 2013 more than 80events were held across the county attracting180,000 visitors.

The food group also undertakes unique projectsdesigned to support local producers. One ofthese projects was aimed at encouraging villageshops to stock local produce. The concept ofselling local products from village shops soundssimple but in practice the logistical challengesinvolved have often been a barrier for shopowners.

The project was run alongside an initiative ledby Hampshire County Council (HCC). In 2008

Hampshire Fare...


Inside Eversley Stores

Helping Rural Shops to

the council set up a grant scheme originallyfunded by the South East of EnglandDevelopment Agency. The county councilcollaborated with Community Action Hampshireand Hampshire Association of Local Councils tooffer village shops at threat of closure a capitalgrant. One of the conditions of the grant wasthat shop owners take steps to stock localproduce with the support of Hampshire Fare.The project has provided 30 grants totallingmore than £400,000 to 27 shops. All remain inbusiness and some are now much moreprofitable.

Anne Harrison from the Economic Developmentteam at HCC has been closely involved in theproject and can see the positive results: “Irecently visited Woodgreen Community Shop inthe New Forest which received a grant. There isnow a steady stream of customers coming touse the shop and to chat to volunteers. Peoplelove to come in and see what’s new. Localproduce is one of the things that differentiatesvillage shops from their larger counterparts. Andwhat better shop window could a local supplierask for?”

CASE STUDY 1: EVERSLEY CENTRE STORESEversley Centre Stores was one of the villageshops to receive a grant and benefit from theproject led by Hampshire Fare aimed at helpingthem stock more local produce. Hampshire Farecollaborated with their Corporate Partner, TheSouthern Co-operative, to offer a select numberof village shops the chance to access theregional food retailer’s local producers’distribution network. The scheme enabledvillage shop owners to source a range of localproduce through just one order. Sadly threeyears on the funding for the programme hascome to an end but the shops involved such asEversley Centre Stores are still able to take


Owners Gillian Lewis and John Hartle Eversley Stores

Stock Local ProduceLocal cheese inside Eversley Stores

advantage of ordering via The Southern Co-operative.

John Hartle from Eversley Stores explains whatthe scheme has done for their business.

“We took over the shop in 2010 and were eagerto give it a new lease of life including stockinglocal produce. However we soon discovered thatone of the biggest obstacles to this is getting thelocal produce to the shop. We jumped at thechance to be part of the Hampshire Fare villageshop scheme set up to help businesses like ours.

All we had to do was place the order on aMonday and the products would be delivered tous on the Thursday. Suddenly we were able tofill our shelves with local produce and wequickly became known as the place to go forlocal cheese, beer, smoked fish, cakes andmore. We are so lucky to have such talentedproducers in Hampshire, there is such variety ofhigh quality produce. Since starting the schemewe have also spent time researching andbuilding relationships with more local producers.

As a result I now also collect some productsfrom the producers themselves.

We have found that customers are really keen totry and buy local produce. We often hold tastingevents and talks from local producers whichhave helped to engage the local community. Wefind that customers now come to the shopspecifically to purchase their favourite localcheese or beer. It is definitely a draw for people.

Our biggest piece of advice to other shopowners keen to stock local produce is topersevere! It takes time to work out just theright amount to order to avoid wastage. Makesure you spend time and energy promoting it sohold tasting events and talk to your customersabout the new products. Don’t let the price putyou off, the quality of the produce is worth itand customers can see this, they are preparedto pay a higher price.

The opportunity to be involved in theprogramme has undoubtedly benefited ourbusiness, local produce is now an integral partof our business and without the scheme wewould not have been able to stock as much aswe do.”

● Eversley Centre Stores is located in Hook. Find out more at www.eversleycentrestores.co.uk

Hampshire Fare...


Eversley Centre Stores - outside

CASE STUDY 2: CHILBOLTON STORESChilbolton Stores was taken over by JoanneBuist and David Johnston in November 2006.Before they had even opened, Jo was busyvisiting local markets to seek out local producersto supply the shop. Seven years on they stock awide range of local produce which they see as acentral part of their business. Jo is positive abouttheir experiences:

“We are both passionate about using localproduce ourselves and we knew from thebeginning it was the direction we wanted totake the shop. Our local produce definitely setsus apart from other similar businesses. We cando local really well and it helps us to competewith supermarkets.

We have become known as a shop that stockslocal food and drink and so we also getapproached by lots of local producers eager tosupply us with their products. We also use theHampshire Fare website to hunt out newsuppliers and really enjoy discovering newproducers. We have built strong relationships

with many local producers and many regularlydrop off stock whilst we also collect from someproducers.

The challenge we have faced is changingcustomers’ habits. We find that people like theidea of local food but it takes time to changetheir buying habits. However once they dostarting buying local produce, they get hooked!We use social media a lot to communicate withour customers and simple things such as blackboards and tasting events. It’s about keepingyour customers informed.”

● Find out more atwww.chilboltonstores.co.uk

● Find out more about the work of HampshireFare at www.hampshirefare.co.uk. Similarorganisations exist elsewhere in the country;search the Internet to find out what help andsupport is available in your area


Chilbolton shop

Chilbolton shop

Like most small shopkeepers, Holmes knowsenergy costs make a difference to the bottomline when margins are being squeezed andyou’re fighting for customer spend. But it mightbe easier to reduce bills than you think. TheCarbon Trust believes firms could easily makesavings of about 30% by starting with the

“I was very inexperienced when I openedmy store,” admits Heather Holmes ofTillington Village Stores in Herefordshire,who forked out on a long wall of open-deckrefrigeration to display fresh produce. “Ishould have put in chillers with doors on butI can’t afford to replace the units for thesake of energy reduction.”

basics: avoiding over-filling shelves, usinginsulating blinds and covers and turning offlighting inside cabinets outside trading hours.

Light levels in stores can fall by as much as 50%in three years if windows, skylights and artificiallights aren’t regularly cleaned, according toNpower. It advises de-cluttering windows anddoors, and removing posters to let in more light,while a new coat of light-coloured paint on wallsand ceilings can help reflect light.

The energy firm reckons that even having abasic lighting maintenance programme can cutcosts by up to 15%. Replace blackened,flickering or dim fluorescent tubes with tri-phosphor coated ones - modern fluorescent

Energy costs...


Heather Holmes wishes she had doors on her long run of refrigeration

Controlling Energy

tubes with high-frequency fittings use lessenergy, don’t flicker or hum and can bedimmed.

And it might also be worth swapping those 20Whalogen spotlights for LEDs, which can saveenergy and cut maintenance costs too, as theylast many times longer. At Baginton VillageStores in Coventry, owner Walter Bush is aconvert. He says: “I’ve installed LED lights onthe fascia and down the side of my dairy chillerto replace the T8 fluorescent tubes – they costme £120 and it’s meant power use has beenknocked back by 25-30%. They also last somuch longer.” However, he won’t be using themthroughout the store. Bush adds, “I’m waitingfor the price to come down.”

There are simple things you can do on chillersto reduce bills before forking out on newequipment. Make sure door seals are effectiveon cold rooms, fridges and freezers, and thatcondensers are free from dust, The Carbon Trustadvises, while it’s also time to remove clutteraround chillers which restricts the airflow.

Some retailers have fitted PVC hanging chillerstrips to open deck chillers and supplierRedwood Strip Curtains says that while theywere hugely popular in the early ‘90s, they’veseen a resurgence of late. “Increasing numbersof retailers are buying them as a quick, simpleand cost-effective way to save energy andreduce the running costs of their chiller units,”says sales and marketing manager Peter Kew.Fitting a 2-metre cabinet costs between £150-£200 and can reduce energy consumption by upto 60%, adds Kew. “Our CoolStrips are less than

1mm thick, there’s clear vision, and people canreach through them very easily – you also don’tget a real whoosh of air escaping like you dowhen opening glass doors.”

However, retro-fitting double glazed doors isalso popular with some small stores, accordingto Delta Refrigeration, which reports thatretailers can save 40% of their energy costs thisway. MD Simon Robinson says while this is areal benefit, it can make even better financialsense to buy new chillers with doors alreadyfitted if your current cabinets are older models.“It could cost a couple of thousand pounds onsomething that might only last another three orfour years,” he explains.

By Helen Gregory


A new way to retain cold air within an open deck chiller

Bills

Robinson insists there’s no negative impact onsales and adds that some retailers have reportedthe added benefit that the doors also detershoplifters. Whilst the company can fit singleglazed doors, he usually advises retailers toplump for double glazing to avoid possiblecondensation problems.

For example, one village store owner has fitted10 single-pane glass doors across all her fridgesbut says they constantly mist up. This meansshe has to keep the front door closed andconstantly run the air conditioning. “This haswiped out any savings we would have made onenergy bills – we’re not happy but there’snothing we can do as the company that fittedthem now tells us we should have had double-glazed doors fitted.”

Both plastic strips and doors can be a barrierbetween shoppers and products, according toenergy reduction specialist companyEnviroglow. Instead, it suggests usingChillScoops, acrylic panels that fit along thefront base of an open cabinet. These create avortex, catching up to 90% of lost refrigerated

air, allowing it to re-enter the refrigeratedairflow, reducing the workload on thecompressor and hence power consumption.

Biting the bullet and buying new equipment cancut electricity consumption and pay back theinvestment in a relatively short time. CreatonPost Office & Village Shop in Northamptonshireswapped one of its open chillers for an uprightwith sliding doors because the store was heatingup too much. Owner Sylvia Winter says whilecustomers sometimes leave the sliding doorsopen on her freezer, the new chiller is betterbecause the doors close automatically. However,she doesn’t think her other two older chillerswill be replaced any time soon: “Like many ruralstores, we won’t be forking out on expensiveequipment unless it breaks down!”

But energy saving doesn’t have to be expensive,insists Enviroglow, which puts together anEnergy Reduction Package for stores. Sayssenior sales manager Roger Shenton: “Thesavings that we project are what pay for theinstallations – it becomes self funding with anaverage 26-month payback.” Premier Whitstone

Energy costs...


Lightweight doors retrofitted to a chiller. The adjacent chilled produce display has been left open

Village Stores in Holsworthy, Devon, has seen abig drop in electricity consumption after it hadeight metres of ChillScoops fitted as part of itsenergy upgrade package, costing £8,392.Retailer Dan Cock is saving £344 a month andexpects to pay back the install costs within twoyears.

So what else can you do to save energy andmoney? Get a smart meter installed to provide amore accurate account of your energyconsumption (Npower and others provide thesefree). “Many retailers feel a bit confused andvulnerable, not knowing if what they’re doing isthe right thing,” explains EcoMonitor MD BrianO’Hagan. He advises monitoring usage firstbefore spending money on equipment: “If youput in new fridge doors, monitoring your returnon investment can be difficult if you’ve only gota quarterly bill to look at.”

And if you haven’t already, as fuel prices rise forwinter it’s a good time to either fix your energytariff or look for a better deal. Both BagintonVillage Stores and Creaton Post Office & VillageShop have swapped providers recently. SaysSylvia Winter “It has saved us 20% on ourenergy bills – that’s a saving of about £1,000 -although we’re now tied into a three yearcontract, it’s worth it.”


A long established idea that has fallen out of fashion, willenergy prices cause them to return? The RSA view

Visiting stores, we are often aware of chillers where thecompressor is constantly working to maintaintemperature instead of cutting in and out. Because theowner is in the shop all day and every day, they areseldom even aware of it. And, too often, proprietors tellus of refrigerators that are 20 years old and have hadthree new compressors along the way. The reality is thatmodern equipment is usually far more energy-efficientthan older kit and that the payback period for buyingnew is often surprisingly short. Sometimes energy-savings can equal the monthly lease purchase cost,making acquisition of new equipment effectively cost-free.

Chilled product is a crucial element of the offer for mostrural convenience stores. Newly fitted conveniencestores from the big multiples have walls of glass frontedchillers and although this is not practical for mostindependents, it does point the way that the market isheading. Certainly customers are far more used toopening doors to access chilled product and they aremuch less of a psychological barrier than they oncewere. Any shopkeeper considering new refrigerationshould at least look at equipment with doors to see if itis likely to work for them.

rural retailer winter 2013/14

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