They also share strong relationships with their wholesaler and suppliers and are not scared by the might of the multiples. Sheffield-based GT News is a particularly good example. With sales up by 46% in the past year, it is Britain's fastest growing privately owned chain. And with four new recently built stores, it is hungry for more sites to boost its clout with suppliers and expand its range as it moves away from pure CTN to convenience. GT now operates 83 stores under the GT News (CTN) and GT News Plus (convenience) banners, with a turnover of £51m ­ expected to rise to £53m this year. Ambient groceries, chilled food and alcohol have been introduced to about 13 stores, and several more sites are earmarked for conversion to the News Plus format, which has been particularly successful in city centres, says md Paul du Toit. "With GT News Plus, we've found a format that works, and we're rolling out alcohol across the CTN estate too." While the retail environment is getting more regulated, and competition from local Co-ops is growing stronger, du Toit is optimistic about the company's prospects. "We've got a very strong and able management team. We run the business very tightly and most importantly, we have a healthy balance sheet. We're also continually investing in and upgrading our stores." Northern Ireland's largest privately owned retailer is also keen to continue growing by at least four or five stores a year, according to Geoffrey Agnew, md of Andrew Millar. It turned over £63.6m last year (including petrol) and expects to do £82.5m this year. The company is the retail arm of John Henderson, the wholesaler which supplies all the Spar, Vivo and VG stores in the province, and although the parent company has been operating for more than a century, Agnew says: "It is only in the last 10 years that we have seen ourselves as a serious retailer and put resources into expanding that part of the business." Even the move of the major multiples into Northern Ireland has had very little effect on Andrew Millar's growth. He says : "Our operation complements the supermarkets. Our stores are in neighbourhoods with lots of chimney pots around and, if anything, the supermarkets have helped us focus on our niche." Some private retailers complain that manufacturers don't take them as seriously as their multiple counterparts, but this is not a problem for Agnew. It has a high profile among local suppliers and, as part of John Henderson, is a major player. Agnew says the key to the operation is customer focus ­ providing quality stores, convenience, availability on key lines such as bread and milk, providing good promotions and value for money and customer care. England and Wales regional champion Tates agrees that customer service is paramount. The 182-store strong Tates turned over £172m last year and has plans to up this by £8m by the year-end. The chain began in 1898 as one shop in Grimsby and now includes 179 outlets and stretches from Sheffield to North London. It adopted a c-store format in 1985 and was acquired by AF Blakemore in 1994. MD Geoff Hallam attributes the company's continued success to keeping tight control of costs and its strong range of customer services, aided by an "excellent" relationship with suppliers. Hallam says the business faces fierce competition from the multiples' c-store formats, but insists: "It is not our intention to give up but to focus on our strengths and compete head-to-head with them." Edwin Booth, the chairman of Preston-based Booths, says the secret of his success is an absolute eye for detail. "We have achieved success by sticking to our obsession of selling good quality food and drink and selling it in stores with assistants who treat people like human beings." The chain is a true family firm and with 26 successful stores is the top supermarket chain in our survey. Last year the company, founded in 1847, had a turnover of £133m (expected to increase to £150m) and saw sales increase by 15.6% for the seven weeks to January 5. His company is now in its fifth generation of Booths, but he says it is careful not to be nepotistic, and judges all employees on their merits. Booth adds that it's not the fact that it's a family business that makes Booths successful, it's down to good business sense. "You don't have to be big to be successful, you just have to be sharp and clever at what you do." For Scottish Spar wholesaler C J Lang, anyone not in Spar counts as the competition ­ from the biggest multiple to the smallest independent, according to marketing manager Malcolm Mitchell. The chain is the top privately owned Scottish firm in our survey and got there by being proactive, constantly improving store infrastructure and working out attractive promotional deals for customers. Mitchell says: "We don't look over our shoulder, we set our own targets, and we are achieving them, working closely with suppliers, many of whom we have had relationships with for decades." The key target, set at the turn of the Millennium, is to own and manage 100 Spar stores throughout Scotland by 2005, and with 53 so far, CJ Lang is well on its way ­ with a £49.9m turnover expected to jump to £53m this year. All are in the process of adopting Spar's new Millennium store format, and all are located in local communities. Although the Spar symbol group is well represented in our listings, Nisa does better, with its members accounting for about half of the top 50 companies in our survey. That's a fact which group managing director John Schofield says is conclusive proof that the buying group represents the big guns in independent retailing. He says: "Suppliers recognise that, despite a wide and varied membership, we have developed a great deal of discipline within our group. Together with our wholesale division, The Today's Group, suppliers can reach a large proportion of the independent sector through one focused group. The strategies we have in place are allowing our members to prosper and the independent sector is probably more buoyant now than it has been for a long time. Despite intense competition, we're very confident about the future for our members." Alan Toft, director general of the Federation of Wholesale Distributors, agrees that suppliers have good relationships with family-owned firms and says they are sensitive to their needs because they don't want to put all their eggs in one basket. He believes the chains bring diversity to the marketplace. "The more diversity there is, the better for shoppers. They offer a point of difference from the superstores. They need some competitive pricing but they also need that X factor, such as customer service and atmosphere." James Lowman, public affairs manager at the Association of Convenience Stores, believes suppliers take family owned retailers seriously because of the geography. "They know that by using them they can make an impact on a region and retailers are in a better position to make sure stores implement promotions." Lowman says their concentration in one geographical area means they can keep an eye on things and don't have to delegate as much. Also their smaller size means they respond quicker to crises and changes required by suppliers. This gives family owned stores more control over their shops, he says. "If they want to put a procedure in place, they only have to implement it in a few stores, not a great swathe. They have a greater level of control." One note of warning is sounded by Brian Roberts, senior European retail analyst at Mintel Retail Intelligence who reckons that family retailers need to focus on the concept of service ­ or die. "They haven't got a hope of competing on price," he says. "If they want to withstand any long-term competition it's not beyond the realms of possibility that they might look at consolidating among themselves." He adds: "Consumers have been very loyal but there's a more promiscuous approach now. If you get a Tesco opening down the road which is cheaper you will get some people moving away." But Toft concludes that if they've survived the competitive atmosphere of the past decade, they'll be fit to meet any challenges. "In spite of the might of the superstore it's good to think there are businesses with the skills and ability to succeed ­ and I see no reason for that to change in the near future." n {{COVER FEATURE }}

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