National Convenience Show Preview: Can the c-store be all things to all people?

Convenience stores can no longer keep going by just offering a smattering of basic products. Virginia Matthews looks at how to meet consumer demand for both local and global brands


Running a successful convenience store in these straitened economic times demands a dizzying mix of entrepreneurial, managerial and logistical skills.

Yet in the view of retail academic Professor Alan Hallsworth,who is speaking at the ACS Summit, taking place at next week's National Convenience Show, there is one overriding quality that many in the industry overlook: local stuff.

"Managing a profitable store in a village or suburban setting means anticipating and meeting local needs and balancing a wide range of global brands against the less well-known, locally sourced stock that will tempt your customers into coming back again and again," he says, of one of the key themes at the 2011 show.

"But in order to maintain what may well be the focal point of an entire community, you also need well-honed people skills and a genuine love of retail. If you aren't a person for whom outstanding and friendly customer service comes naturally, your c-store may struggle."

Chris Porter, the ex-London market trader who with his wife Juliet runs Clealls of Corfe the once-struggling Dorset village shop made famous by retail guru Mary Portas last year recognises that changing light bulbs and even emptying lofts can be "all part of the service" when he delivers to some of his older customers.

But Porter, another speaker at the ACS Summit a brand new feature at this year's event has learnt that when it comes to weighing up the returns offered by low-priced megabrands against those of local delights such as Purbeck ice cream or Dorset beer, you have to be realistic and focused.

"When we first started up, we used to buy, in particular, washing-up brands or soups for individual shoppers, only to find that they either didn't bother to come in and collect them or they continued to do the bulk of their shopping at the nearest big supermarket, a 25-mile round trip away," he says.

"Today, we try to cater for the tastes of our two main customers: agricultural workers on £9,000 a year, looking for economy baked beans, and well-heeled second-homers who expect a decent range of locally sourced meat, vegetables, cheese and bread as well as top-quality ready meals created around local produce.

Since being featured on Mary Queen of Shops, Clealls has rationalised its lines from 6,000 to 1,900 and no longer buys in items unless it knows there is a decent market for them.

Using well-known everyday brands at low prices to attract shoppers through the door only to unleash an intriguing mix of local 'fine' lines once they reach the aisles is a crucial element of successful c-store retailing, says John Heagney, group symbol director at Nisa-Today's.

"I believe it is certainly possible to be a great retailer of both local and global brands and, despite many people's assumptions, the demand for fine ranges encompassing very low food miles is as buoyant in less prosperous parts of the North as it is in the affluent South," he says.

"Far from rolling out cloned stores up and down the country, Nisa takes a long time understanding its new locations and customer profiles. The process of embedding a new store into the community involves a range of activities such as local sponsorship and charity work, but at the heart of our offer are 250 local sourcing deals and more than 5,000 local lines covering everything from beef cuts to crisps."

Heagney admits local sourcing "remains a big learning curve" for many c-stores. However, Hallsworth argues that ignoring the trend altogether is not an option.

"Whether you are in a village setting or a small parade of shops in town, and whether your direct competitor is a Tesco Express or giant Asda 20 miles away, you need to stock a range of locally sourced items catering for all classes and tastes," he says.

"Just as the multiples find space for and clearly delineate their finest, middle-market and value ranges, you have to find room to carry both fine and economy products and preferably something in between."

That does not mean locally sourced food should be the be-all-and-end-all, says Steve Fox, sales director, retail at Booker. While each of the company's Premier stores has its own branding, local identity and sponsorship associations, these are just part of the mix.

"For at least some stores, the provenance of the olives or the cheese you sell isn't nearly as much of an issue as the range and price of the big brands you stock," he says.

"If there is a local bakery with a great heritage behind it, then of course it's important that you put their bread on-shelf, but for stores where price is paramount, our Euroshopper discount brands may be far more critical to profits than local traceability. It all comes down to local knowledge and the three guiding principles of choice, price and service."

Service, in particular, is key, says Spar UK brand director Susan Darbyshire. Spar stores are owned and staffed by local people, enabling them to create an environment, range and service that suit their customers, she says.

Darbyshire also points to the economic benefits to the community, citing a New Economics Foundation report that showed that an average Spar store generates additional local spending equivalent to 11% of store turnover through the employment of local people and use of local suppliers. These, after all, are the people who know exactly what the local community wants.

Spar can bring confidence to the community, too, says Darbyshire. "Our retailers have the confidence to continue investing in their own business. Local communities have the confidence that their local Spar store is going to continue to meet their ever-changing needs, and will continue employing local people. And manufacturers are confident that Spar has a successful, sustainable business model working effectively in almost every major community in the country."

A good convenience store can even make a positive impact on the environment, adds Darbyshire, by enabling people to shop on foot, cutting the number of car journeys needed.

Another vital part of the equation is helping customers, says Summit speaker Professor Hallsworth. While mastering global and local sourcing is a priority, so too is inventing new ways to make customers' lives easier, he believes.

"By offering free local delivery, providing a community meeting room, running PR-led sponsorship events, delivering newspapers and making sure the needs of older people are met, you can make yourself indispensable, particularly at a time when unpredictable weather means more people leaving their cars at home and giving their c-store another look," he says.

It is also important to remember that not all of them will be on a mission to spend as little money as possible. Awardwinning Welsh entrepreneur Conrad Davies, the brains behind two Eurospar stores in North Wales, argues that for those neighbourhood stores that have already introduced their customers to the pleasures of local bread, cakes, meat, cheese and fresh produce, the inevitable belt-tightening by shoppers this year will be selective.

"We believe in making a fuss of people when they come to our shops, looking after them, offering great service and, above all, introducing them to an appetising array of craft-made food and drinks they simply can't get anywhere else," he says.

"Big brands will always have a key place in the independent sector, but by experimenting with the finer products that are on the doorsteps of all UK retailers, c-stores can offer customers the treats they need to get them through the hard times."

The convenience store has a lot more to offer than many people indeed many convenience store owners realise.

So come along to the National Convenience Show a one-stop shop incorporating the ACS Summit to hear the people who know best.


Bread: fresh ways to win custom in your store

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Bread may be a staple in the British diet, but according to Guy Shepherd, category director at Allied Bakeries, bread buyers will quickly go elsewhere if the choice or freshness of the local c-store's range doesn't rise to the occasion.

Allied's three golden rules of bread retailing allocating sufficient space to the category, keeping shelves well-stocked throughout the day and maintaining a constant supply of fresh, enticing products ensure that the humble loaf remains the third-most important trigger to visiting a store, after milk and newspapers.

Even so, retailers must adapt for distinct regional tastes, says Shepherd, pointing out that thicker sliced bread sells best in Wales and the Midlands, while consumers in London and the South East buy a higher proportion of wholemeal and healthier white brands such as Kingsmill 50/50.

Paul Broughton of PT Stores in Nottingham decided to investigate Adkins, a family-run craft bakery based just a few miles away, after finding its bread on sale in his local chip shop.

"Sales of bread were struggling in my shop and I knew I had to inject some sort of excitement into the category to get people interested again. I discovered that Adkins was really popular among my customers and although I was on the point of visiting the bakery myself to talk terms, Booker did it for me and secured a far better deal than I could have," he says.

Since deciding to stock a full range of freshly baked cobs and baps delivered each day, still warm bread sales have risen from about 400 units a week to more than 700 and new customers have been recruited.

"We've already seen a lot of new faces since going local with our bread and many of them have become good customers. The smell of fresh bread wafting around our shop has proved a major inducement to people to come in and have a browse."


Beer: why beer needs to keep its cool

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"Shoppers tell us that the average beer fixture in both multiple and independent stores is about as exciting to shop as petfood or household detergent," says Ashley Garratt, who is channel director for specialists and convenience at Molson Coors Brewing UK, and will be speaking at the ACS Summit.

"By meeting the growing demand for cold beer, and by introducing neon lighting and eyecatching point-of-sale material, retailers can not only add some theatre to this perennially popular category, but can also boost both profits and footfall."

At present, only 50% of independents and 10% of supermarkets provide impulse customers with the cold beer they request. Yet according to research, beer shoppers visit stores more frequently and typically spend twice as much per basket as the average consumer.

Molson Coors' solution is 'My Cold Beer Club,' a new loyalty and education programme designed to help retailers grow their beer sales by focusing on temperature and rethinking in-store marketing. To Gugi Dhadli, who runs Horninglow Food and Drink in Burton-on-Trent, keeping beer buyers happy with cold products makes good business sense.

"They are great customers for us, both for the frequency of their visits and the amount of stock they buy," he says. Many of them will take eight cans per visit, as well as a range of other goods, but we have learned that if the beer isn't sufficiently cold to entice them, we lose their loyalty."

In order to help improve the quality of beer in the off trade, as well as meet demand for cold products, Garratt says retailers need to use their refrigeration systems more efficiently. He argues that by leaving units running all the time, rather than switching them off at night and starting them up in the morning, energy bills can be significantly reduced.

Last year, Molson Coors recruited 13,000 retailers to the 'My Cold Beer Club' via field sales and telephone calls.