trade press works

Trade Press WorksEnergising Independent Retailers

2 | Newtrade | Trade Press Works | Research by him!

Contents The Independent Retailer

Three Years On 4 Success And Optimism6 Shopper Awareness8 The Move to Convenience

The Trade Press Reader10 More Engaged12 More Successful14 Acting on Advertising

Newtrade Publishing: Reaching The Most

16 What are Independent Retailers Reading?

18 More Positive, More Successful

Newtrade Publishing: Reaching The Best

20 A More Engaged Audience

20

168

12

Research by him! | Trade Press Works | Newtrade | 3

ExECuTIvE SummaRy

Welcome“IT IS WEll dOCuMEnTEd ThAT gOOd IndEPEndEnT retailers are flourishing. What is not so clear is how they are achieving this success. In order to gain a better understanding of the independent sector, and trade press readers in particular, we commissioned him! to carry out some qualitative research on our behalf.

The results demonstrate that advertising in the trade press is the most cost-effective way of getting your messages across to a large group of independent retailers and that the return on investment is significant.

The independent sector is more successful than it was in 2008, and this success looks set to continue. Independent retailers believe they are making more money – and are optimistic that this will continue for at least the next 12 months. This success can be attributed to a number of factors, such as an increased willingness to stock new products, a move towards convenience and a more customer-focused approach.

This success story is driven by retailers who read the trade press. They have enjoyed the biggest increases in footfall and weekly turnover over the past three years. They are more engaged with the trade press than they were three years ago, reading it more frequently and for longer – and turning to it more frequently when making decisions about new products, launches and promotions.

Among the trade press reading population, there is one group of retailers who stand head and shoulders above the rest – those who read newtrade Publishing titles. In terms of their businesses, they are more successful, more optimistic and more shopper focused. Part of this success must surely be down to their level of engagement with the trade press. They are more frequent readers, turning to our titles for a wide range of advice to help them improve their businesses and grow their sales. What is more, they are more likely to recognise ads they have seen in the trade press, and most importantly are far more likely to take action on seeing these ads – with just under half stating that they will stock a product upon seeing it advertised in our magazines.

The results of this study provide you with evidence to justify your investment in the trade press, and provide a compelling argument for why you should continue to grow this investment.”

Kate Dickenson, head of Marketing, newtrade Publishing

SaMPle SIze: 234 independent retailers MeThOD: Interviews at major cash and carry/wholesale depots across the uKTIMINg: Various times of day, throughout the month of February 2011 CONfIDeNCe level: 90%; CONfIDeNCe INTeRval: 3%


“ 74% are confident that their sales will increase or stay the same over the next 12 months”


lESS ThAn £5K

£5K TO £10K £10K TO £15K £15K TO £20K £20K+

20082011

26%22%

51%57%

11%16% 7% 3% 4% 4%

average weekly turnover 2008 vs 2011

Success and Optimism

dESPITE ThE ECOnOMIC downturn, which began in the latter part of 2008,

consumer spending in the independent convenience sector does not appear to have been too adversely affected. With an average weekly turnover of £8k, a closer look at the figures shows that the number of retailers with a turnover of less than £5k a week has fallen from 25% to 21%.

n 78% state that the number of shoppers visiting their shops is either increasing or staying the same (75% in 2008).

n 74% are confident that their sales will increase or stay the same over the next 12 months (69% in 2008).

The fact that 89% of the retailers asked knew what their weekly turnover was (compared to 72% in 2008), suggests that the optimism they are currently feeling is based on facts, figures and a genuine understanding of how their businesses are doing.

78%of retailers state that the

number of shoppers visiting their shops is either increasing or staying

the same

Source: him!

ThE IndEPEndEnT RETaIlER ThREE yEaRS On



Shopper awareness

IndEPEndEnT RETAIlERS are becoming more shopper focused, with an

understanding that in order to survive they have to deliver the products, service and prices that their customers want.

n 64% said that they pass promotions on to their customers most, or all of the time, vs 51% in 2008.

n Offering value for money is paramount, and the rise in popularity of pricemarking demonstrates this with 44% of retailers stating that it is the most effective form of promotion available to them, compared to 18% in 2008.

Indeed, when asked how they felt they could be successful against the multiples, rather than stating cheaper prices, both value for money and better service were the top ways in which retailers feel they can fend off the competition.

Further to this, more than half of the retailers interviewed (54%) stated that they have at least 10% of their stock on promotion.

The effects of the economic downturn can perhaps therefore be seen in an increased understanding of the importance of knowing your customer. At this time, this relates specifically to offering value for money, promotions, and reassurance that local shops do not have hugely inflated prices (pricemarking).

n number of retailers stocking new products has risen by 14% since 2008, to 89%.

The second biggest factor influencing these stocking decisions is shopper demand, with TV and radio advertising not far behind – both these factors have seen their influence increase since 2008, suggesting that retailers are becoming more consumer savvy, tuning into the latest trends, listening to their shoppers and adjusting their stock accordingly.

Offering value for money

Better customer service

Open longer hours

Selling different products

Better availability

Offering lots of promotions

Being cheaper than the supermarkets

greater focus on local sourcing35%

40%

40%

31%

30%

24%

18%

3%4%

10%

how do you feel you can be successful when competing with the multiples?

for more information please call

mike Baillie on 020 7689 3367

Source: him!


Being cheaper than the supermarkets

greater focus on local sourcing

“ Rather than cheaper prices, both value for money and better service were the top ways in which retailers feel they can fend off the competition”


“ alcohol, household goods, milk and packaged/tinned groceries saw the biggest increase in anticipated growth, compared to 2008”



The move to Convenience

IT IS WEll dOCuMEnTEd that the number of independent retailers turning

to convenience to attract customers and grow sales is increasing, and the results of this study add to this with 64% of those surveyed stating that they are convenience store owners, compared to 53% in 2008.

Further to this, more retailers cited convenience products as drivers of growth over the next 12 months, than they did in 2008. In particular, alcohol, household goods, milk and packaged/tinned groceries saw the biggest increase in anticipated growth, compared to 2008.

It is important to note that while retailers are seeing the value of stocking more convenience products, they are not under-estimating the importance of the core categories of crisps, snacks and confectionery, which they still cite as being growth leaders over the next 12 months.

Top 5 growth areas:1. Alcohol2. Tobacco3. Soft drinks4. Confectionery5. Crisps and snacks

These findings also suggest that initiatives such as Big night In and other cross-promotions and link deals across these core categories continue to provide big opportunities for the independent sector.

AlcoholTobaccoSoft drinksConfectioneryCrisps & snackshousehold itemsMilkPackaged/tinned groceries

Which three products/services will drive the greatest sales growth in your business over the next 12 months?

2011Bread/bakery productsSandwichesnewspapersFresh fruit & vegetablesFrozen foodsChilled foods (dairy etc)Ready meals & fast foodshot drinks & fast-to-goMagazinesServices (paypoint, ATM, etc)Packaged tea/coffeehealth & beauty products

Source: him!


more EngagedIndEPEndEnT RETAIlERS who turn to the trade press are reading the titles more

often and for longer than they did three years ago.

n The average amount of time that retailers spend reading the trade press is 17.2 minutes.

n More than half read the magazines at least once a week (55%, vs 50% in 2008).

n Time spent reading the magazines has increased, with 40% reading for at least 15 minutes (compared to 37% in 2008).

So what are they reading?As well as finding out about new products and promotions, retailers are using the trade press to stay informed grow their sales and stay within the law.

What do you find most useful in the trade press?1. Promotions (58%)2. new product development

(46%)3. general news articles (31%)4. legislation (25%)5. hints/tips for increasing sales

(23%)

The trade press plays an important role in this area; along with cash and carry promotions and sales reps, it is one of the top three ways in which all retailers (readers and non-readers) find out about new promotions and launches.

Further to this, it is the second most used source of information in this area for regular trade press readers, with just under half (44%) stating that they use trade press to find out about new promotions and launches.

Which of the following does the trade press help you achieve within your business?

Knowing what's going on in the industry 53%

To get merchandising advice 28%

To get advice on legal issues 23%

To get advice concerning stocking decisions 20%

Adjust pricing to grow sales 19%

Find suppliers 16%

Allows me to benchmark against competitors 14%

Allows me to understand which areas of my business to invest in 14%

To get help concerning staff training & recruitment 5%

and how does it help them?The trade press helps retailers with a wide range of areas including effective merchandising, pricing, legal issues and staff training. There is no other single resource that provides them with the advice they need for all areas of their business.

The table above demonstrate the importance of the trade press in helping retailers understand how to improve their business, a key area of which is staying abreast of new promotions and launches.

“ Trade press is one of the top three ways in which all retailers find out about new promotions and launches”

Source: him!

ThE TRadE PRESS REadER


xx%of reatilers state that the

number of shoppers visiting their shops is either increasing or staying

the same

Trade press readers are selling

23% more – with an average weekly

turnover of £8.7k vs £7.1k for

non-readers


more Successful

TRAdE PRESS REAdERS are turning to the titles more often, using them to stay

informed, improve their shop and grow their sales. And it appears to be working. not only do a higher proportion of trade press readers know what their store’s weekly turnover is (91% vs 87% for non-readers), they are also selling 23% more – with an average weekly turnover of £8.7k vs £7.1k for non-readers.

As well as being more successful in real terms, they are also feeling optimistic about their businesses:

n 25% of trade press readers state that the number of shoppers visiting their store is increasing vs 16% of non-readers.

n Almost a third (27%) of readers think that sales in their stores will increase over the next 12 months vs 14% for non-readers.

Why so successful?looking at the habits of the trade press reader, we can see that their success and optimism is based on the way they run their businesses.

Trade press readers stock a wide range of products; this is particularly evident in the area

of convenience, with a greater number of trade press readers stocking household items (+13%), health and beauty products (+13%), ready meals or fast food (+12%) and sandwiches (+19%) than their non-reading counterparts.

In addition to stocking a great range of products, trade press readers are:

n More likely to pass promotions on to their customers most, or all of the time (69% vs 57% for non-readers).

n More likely to always stock new products (31% vs 19% for non-readers).

n have a higher percentage of products on promotion compared to their non-reading counterparts (19% vs 16%).

Trade press readers are therefore more informed and have a better understanding of the wider market and their customers needs. They understand what they need to do to stay successful – and they do it.




acting on advertising

TO Fully undERSTAnd the benefit of advertising in the trade press, it’s essential

to understand the impact that your ads have on trade press readers, and most importantly what they are doing with the information they receive.

When shown a series of six adverts, 49% of trade press readers recognised at least one. This is exceptional, especially given that some of the ads were more than three months old.

When asked what they did as a result of seeing the ads promoting a specific product:

n 38% started stocking the advertised product.

n 14% made an enquiry.

n 12% talked to a friend or colleague about the product.

looking at these figures, you can put together a compelling argument for advertising in the trade press.

Take the universe as 40,000 independent retailers; 58% of these read the trade press and 70% of these take action as a result of seeing an ad.

Advertising in the trade press will therefore result in 16,240 retailers taking action as a result of seeing your ad campaign.

“ When shown a series of six adverts, 49% of trade press readers recognised at least one”




The top three titles have

maintained their positions,

demonstrating that not only are they the

most read titles, they are also the

most valued


What are Independent Retailers Reading?

RETAIl nEWSAgEnT, Retail Express and Asian Trader have seen the biggest

increases in market share since 2008, with Convenience Store and The grocer maintaining their share. The focus on the core range of products has increased, with less retailers reading ‘other’ titles.

and what would they recommend?We asked trade press readers which titles they would recommend to their fellow retailers. This is an important measure of value; if a retailer not only reads a title but will also recommend it, it follows that they find the magazine informative, containing advice that helps them with their business:

1. Retail newsagent2. Convenience Store3. Retail Express4. Independent Retail news5. The grocer6. Asian Trader7. The Fed8. Other

The top three titles have maintained their positions, demonstrating that not only are they the most read titles, they are also the most valued.

Which of the following trade publications do you read?

20082011

0% 10% 20% 30% 40% 50% 60%

RETAIl nEWSAgEnT

COnVEnIEnCE STORE

RETAIl ExPRESS

ASIAn TRAdER

IndEPEndEnT RETAIl nEWS

ThE gROCER

ThE FEd

OThER

0% 10% 20% 30% 40% 50% 60%Source: him!

nEWTRadE PuBlIShIng: REaChIng ThE mOST


ThE RESulTS OF ThE research suggest that readers of nPl titles are

more successful than readers of competitor titles; they enjoy higher footfall and see a bigger opportunity for growth.

This success can be attributed to a number of factors, including:

n 98% of nPl readers will always or sometimes stock a new product when it first comes out, compared to 93% for readers of competitor titles.

n 37% always pass promotions on to their customers compared to 32% for readers of other trade press titles.

As well as being more willing to stock new products and offer value to their customers, it is perhaps how readers of nPl products are using the trade press, and the information they receive, that is helping them to stay successful.

Is the number of shoppers visiting your store increasing, decreasing or staying the same?

Increasing Staying the same decreasing don't know

3% 5%

29%

57%

11%25%

51%

19%

nPl REadERShIP

nOn-nPl REadERShIP

Do you think sales in your store will increase, decrease or stay the same over the next 12 months?

Increase Staying the same decrease don't know

5%

7%

32%

46%

17% 27%

47%

19%

nPl REadERShIP

nOn-nPl REadERShIP

Source: him!

Source: him!

more Positive, more Successful


nEWTRadE PuBlIShIng: REaChIng ThE mOST

don't know

don't know

When asked which areas of the trade press they find most useful, readers of nPl titles stated that our products help them with the key areas of the business, such as promotions, new product development and hints and tips for increasing sales. This demonstrates that they are willing to invest in their business, first collecting information on what’s new, before deciding what to introduce in their shops.

The above tables demonstrate that the information we are providing is more useful, helping our readers to achieve more within their business; and that they are more successful both in terms of shopper numbers and future projected sales, is further evidence of this.

Which areas of the trade press do you find most useful?

lETTERS/COMMEnT

nPl REAdERShIPnOn-nPl REAdERShIP

0% 10% 20% 30% 40% 50% 60% 70%

CATEgORy FOCuS

lATEST dEVElOPMEnTS In ThE InduSTRy

CASE STudIES FROM OThER RETAIlERS

ShOPPER RESEARCh/CuSTOMER OPInIOnS

InduSTRy EVEnTS

hInTS/TIPS FOR InCREASIng SAlES

lEgISlATIOn

gEnERAl nEWS ARTIClES

nEW PROduCT dEVElOPMEnT

PROMOTIOnS

0% 10% 20% 30% 40% 50% 60% 70%Source: him!


newtrade Publishing: Reaching The Best

a more Engaged audience

ThERE ARE AlSO differences in how the readers of different

trade magazines consume information:

n 33% of nPl readers use the trade press when making a decision about stocking a new product, compared to only 24% for non-nPl readers.

n 53% of nPl readers find out about promotions and launches from the trade press, compared to 40% for readers of non-nPl titles.

Furthermore, advertising recognition was better in readers of nPl titles, with more than half (55%) recognising at least one supplier advert, compared to only 38% for readers of competitor titles.

As a result of seeing these ads, readers of nPl titles are far more likely to take action than readers of other titles.

Retailers who read newtrade Publishing products are more successful, have a greater understanding of what they need to do in order to attract more customers and grow their sales, and are more engaged

Which of the following advertisements from suppliers have you seen in the trade press recently?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

AdVERT 1

AdVERT 2

AdVERT 3

AdVERT 4

AdVERT 5

AdVERT 6

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%


What did you do as a result of seeing this advertisement?

0% 10% 20% 30% 40% 50%

TAlKEd TO FRIEndS/COllEAguES ABOuT ThE

PROduCT AdVERTISEd

VISITEd ThEIR WEBSITE

STARTEd STOCKIng ThE AdVERTISEd PROduCT

MAdE An EnquIRy


0% 10% 20% 30% 40% 50%

with the trade press, in part because they feel that it helps them achieve a wide range of things within their store. They are more likely to act upon seeing advertising in the trade

press, demonstrating that we are reaching innovators and early adopters, retailers who understand how to stay ahead of the pack.

Source: him!

Source: him!

nEWTRadE PuBlIShIng: REaChIng ThE BEST

nEWTRAdE PuBlIShIng11 Angel gate, City Road, london EC1V 2Sd

Tel: 020 7689 0600 Fax: 020 7689 0700

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