Online grocery retailing set to double by 2015 | Industry News | TalkingRetail.com

The value of grocery shopping conducted over the internet is predicted to nearly double to£9.5bn in five years compared to its current level of £4.8bn, according to new research published by IGD.

Online shopping will represent 5.2% of the overall UK grocery market by 2015, compared to 3.2% at the moment.

Joanne Denney-Finch, chief executive, IGD, said:“Online grocery retailing is already growing at a phenomenal rate and there is still plenty of potential for significant expansion. Although online has a small share of the overall grocery market, it will be the fastest growing channel.

“IGD research found 7% of shoppers say they are buying all their regular groceries online. Our latest ShopperTrack data shows 13% say they will use the internet to do more of their food and grocery shopping over the next 12 months, mainly driven by 18-34 year-olds.

“Retailers are driving online growth through new developments, such as ‘click and collect’, introducing smart phone apps and building stores specifically to cater for online orders.

“Wider delivery coverage and better home internet connections are some of the other reasons why internet grocery retail has the potential to grow significantly.”

Source: IGD

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Increase in parking charges could kill off high-street trade, says Forum | Industry News | TalkingRetail.com

Councils could kill off high street trade if they hike town centre parking charges, a small business support organisation has warned.

In recent months, local authorities across the UK have proposed hefty increases in the charges they impose on motorists for parking on streets and in council-owned car parks.

Areas affected include Burnley, Nottingham, Shrewsbury and Cornwall, and in some cases, increases of 150% have been tabled by town halls.

The councils involved claim the hikes are necessary in order to plug shortfalls in their budgets due to widespread cuts in local government funding.

However, the Forum of Private Business believes raising the rates could put small firms out of business as shoppers are driven away from the high street and towards out-of-town supermarkets and retail parks, which enjoy ample free parking.

The not-for-profit support organisation has also pointed out that the move will hit small traders at a time when they are facing the prospect of a potentially damaging downturn in trade next year, due to the forthcoming VAT rise.

The Forum’s head of campaigns, Jane Bennett, said:“Simply putting up parking charges might seem like an easy and convenient way for local authorities to plug their budget shortfalls.

“However, it could well prove to be a false economy as it will drive even more trade out of town centres, leading to more empty units, fewer visitors and lower amounts raised through business rates.

“High street traders are already very anxious about January’s VAT rise. By putting up parking charges– by as much as 150% in some cases– these councils will give people another incentive to shun their independent local shops in favour of identikit out-of-town supermarkets and retail parks.

“If these councils are so desperate for money, perhaps they should concentrate on raising more revenue from the multi-national chain stores on their patches, rather than the small firms which are often struggling to survive.”

Source: Forum of Private Business

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Co-op launches new multi-million pound food campaign | Industry News | TalkingRetail.com

The Co-operative Group is to launch one of its biggest-ever food campaigns, created by its lead agency, TBWAManchester.

The new multi-million pound campaign for The Co-operative Food is due to be unveiled in January 2011.

It will utilise a broad range of advertising channels including national primetime TV, radio, print, cinema, billboard, online, video on demand and point of sale.

Sean Toal, commercial director at The Co-operative Food, said:“We’re all very excited by the campaign as it approaches the theme of grocery shopping from a really fresh, honest and passionate prospective. We wanted a campaign that would work across a variety of mediums and that would connect with our customers on a very real level.”

Fergus McCallum, CEO of TBWAManchester, said:“As a top five grocery retailer, The Co-operative is in a position to lead the way and prompt new thinking and conversations around shopping. We have created a campaign that we hope will make people think about their shopping habits and will hopefully encourage a change in some fairly deep-rootedbehaviour.”

Source: Co-op

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Sainsbury’s wins Food& Farming Award | Industry News | TalkingRetail.com

Sainsbury’s has won‘Best Retail Initiative’ at the BBC Radio 4 Food and Farming Awards for helping its farmers reduce their carbon footprint and achieve real financial savings.

Sainsbury’s was the only supermarket short-listed in any category this year, and winning the award reflects Sainsbury’s commitment to working with its producers to build a sustainable supply chain.

Sainsbury’s partnered with environmental consultancy, AB Sustain, to develop a carbon footprint model for its producers. The model assesses the environmental impact of production and provides farmers with individual advice on how to improve their footprint.

The scheme aims to provide farms with a better understanding of their environmental impact by fully funding individual on-farm carbon assessments. To date the scheme has carbon footprinted over 325 Sainsbury’s dairy development group farms, 98 cheese development farms, 260 beef development farms, 1,400 lamb development farms.

In just two years, Sainsbury’s dairy development group farms have saved 10,000 tonnes of carbon. The real benefit to farmers, however, has been the improved understanding of energy efficiencies on their farm and real cost savings. The initiative was also the first model to achieve PAS2050 Tier Three accreditation, a carbon footprint accreditation that no other retailer has achieved.

Following the success of its Dairy Development Group, the supermarket has rolled out this approach across its primary agricultural supply base, investing£21m to date in establishing dedicated development groups in beef, lamb, pork, eggs, chicken, milk, cheese, grain and produce.

Judith Batchelar, director of Sainsbury’s brand, said:“We have come a long way with our farmers and are very proud of our progress in helping make the whole supply chain more sustainable with schemes like this.

“We’re delighted to be awarded‘Best Retail Initiative’ at the BBC’s Food and Farming Awards, and as the only major retailer shortlisted, the award shows that Sainsbury’s stands out in the way it has developed relationships with farmers to help produce fresh, healthy and tasty food for our customers.”

Source: Sainsbury’s 

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Sainsbury’s unveils one of its largest stores in Lincoln | Industry News | TalkingRetail.com

One of the largest Sainsbury’s in the country opened in Lincoln today after the store almost trebled in size to just under 100,000 sq ft. The superstore was officially opened by a loyal customer, Constance Page, who turns 100 this week. She was joined by some of the store’s longest-serving staff.

Not only has the major extension provided a significant employment boost to Lincoln, with 550 local people employed at the store, but customers will also be among the first in the country to benefit from a variety of new initiatives.

The 98,712 sq ft store’s new features include a brand new mezzanine floor, which will hold a bigger TU clothing range and an improved café, while downstairs features a full range of counter departments, including a brand new pizza counter and a live glass kitchen, where customers will be able to see meal and sandwiches freshly prepared by colleagues.

Sainsbury’s Lincoln will continue to raise funds for its local charity partner of the year Lincolnshire Integrated Voluntary Emergency Services (LIVES). It has already raised£3,800 of its £10,000 target through in-store bagpacking and raffles, sponsorship of Sainsbury’s colleagues at events, and awareness days.

Store manager Andy Yeomans, said:“What’s even more crucial to LIVES than money is having volunteers. That’s why we’ve been helping them to raise their profile, to highlight what an incredibly important job they do and therefore attract volunteers. We’re delighted to say we’ve already exceeded our target of five volunteers, and are on course to attract an additional four more people who will help save local lives.

“We’re looking forward to unveiling our new look and welcoming our customers back into what is now one of the biggest Sainsbury’s in the country. I’m proud to be at the helm of a store that has been able to recruit so many local people, especially with Christmas on its way, and look forward to helping customers explore our new ranges and find gift ideas.”

Source: Sainsbury’s

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New Government skills strategy warmly welcomed by retail skills council | Industry News | TalkingRetail.com

News that Sector Skills Councils (SSCs) will continue to play a‘key’ role in the English skills system has been welcomed by Skillsmart Retail, the Sector Skills Council for Retail.

The Government’s new skills strategy,Skills for Sustainable Growth, launched by business secretary Vince Cable and skills minister John Hayes, acknowledges SSCs’ influential voice on sector-specific skills and provision of innovative solutions.

The paper says:“Sector Skills Councils remain an excellent means for employers to lead and influence change. We will continue to look to Sector Skills Councils to ensure that Apprenticeship frameworks and national occupational standards are updated to meet the needs of employers and employees in the face of newmarket conditions and increasing competition.”

National Skills Academies were also mentioned in the strategy:“National Skills Academies will also continue to form an integral part of support to sectors as specialist, employer-led delivery organisations, working through networks of selected specialist providers to develop and deliver tailored skills to meet employers’ needs and to stimulate increased employer investment. They have already demonstrated that they can become sustainable, responsive organisations which are independent of government and capable of becoming self-financing within three years.”

Anne Seaman, chief executive of Skillsmart Retail, said:“This new skills strategy clearly states that Sector Skills Councils and National Skills Academies have a clear role in raising employer investment in skills and we welcome the backing of both Vince Cable and John Hayes.

“I believe the retail sector has seen significant business benefit from our work. Our engagement at a strategic level with some of the country’s biggest name retailers and trade associations ensures that we understand their latest skills needs and priorities. We also have the clear backing of those retailers.

“We will continue to promote the importance of skills, notably Retail Apprenticeships, to ensure that everyone working in retail has the training and qualifications they need to pursue a rewarding career and further improve retail productivity in the UK.”

Source: Skillsmart Retail

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