New look for MSYS local shops campaign | Independent News | TalkingRetail.com

The My Shop is Your Shop (MSYS) campaign is to ditch its emphasis on encouraging independent retailers to host community activities and concentrate instead on helping store owners pull in new customers and get their message across to MPs, reports today’s Independent Retail News.

James Bielby, chief executive of the Federation of Wholesale Distributors (FWD), which runs the initiative, said:“After last year’s campaign we asked retailers what they most wanted from MSYS and they said that local publicity to attract new custom was their number-one priority.”

MSYS 2011 will see selected stores awarded the My Shop is Your Shop Gold Award for community retailing. Using its parliamentary connections, the FWD will then arrange for MPs to visit these stores to see for themselves how local shops can become a vital hub of the neighbourhoods they serve.

“By showing MPs first hand just how good and important these stores are, we are confident they will take back to Westminster with them a determination to push for regulatory change that favours the independent shop, and of course the wholesalers who supply them,” said Bielby.

“We’ll also make sure these visits are reported in the local media, so the stores get the recognition they deserve.” A free booklet giving retailers tips on how to publicise their stores locally will be available as well.

National Independents Week (29 May to 4 June) will continue to be the focal point of the campaign, with price promotions from MSYS sponsors highlighted in cash and carries. But unlike previous years there will be no consumer vouchers in the national papers. And the programme of MP visits will run throughout the year, not just during NIW.

Bielby added:“We will support any retailers who want to arrange events to celebrate their independence, but we won’t spoonfeed them in a top-down way. Our focus at the centre will be on a much more targeted approach to the people who can make a real difference to the long-term future of this sector of retailing.”

Walk& Shop Day, which promotes the health, environmental and cost-cutting advantages of walking to a local shop as part of MSYS, will take place in September. The campaign also gets a new logo.

For further information, visitwww.fwd.co.uk/msysor telephone 01323 724 952

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Fraud crackdown heads FWD Budget priorities | Independent News | TalkingRetail.com

Action on alcohol fraud and pricing tops the Federation of Wholesale Distributors’ (FWD’s) recommendations to the Chancellor of the Exchequer ahead of the Budget on 23 March.
 
In its submission sent to the Treasury last week, FWD urges the Government to ensure that alcohol fraud, which is estimated to cost the public purse over£1bn a year, is treated as a priority area for action. “This fraud is costing the Exchequer much needed tax receipts and is also under-cutting prices and having a severe impact on the economic viability of legitimate traders,” it warns. “Some FWD members are reporting losses of up to 40% on alcohol sales such is the scale of the fraud, and their businesses are subsequently being threatened with closure.”

It also strongly recommends the Government to urgently review the operation of the duty drawback system, after the Treasury’s own figures last week revealed that more than 20% of the money paid out in drawback was going to fraudsters.

In addition, FWD urges the Government to carefully consider the impact that duty increases on alcohol have on fraud, as it believes duty rises act as an incentive to fraudsters who are trading in non-duty-paid goods.

 The FWD, which represents wholesale distributors and cash and carry operators in the grocery and foodservice channels, also calls for restraint on the National Minimum Wage and business rates, and urges the Government to retain the current zero rate of VAT for food.
 
Chief executive James Bielby said:“At this challenging time for the British economy, we urge the Government to deliver a Budget that fosters sustainable economic growth for UK businesses and that recognises the key part the wholesale sector will play in economic recovery.”

FWD draws attention to the cost to the UK taxpayer of tobacco smuggling, estimated at more than£4.1bn per annum, and explains how this fraud is also having a knock-on effect on legitimate wholesalers which are suffering the economic impacts from the loss of sales. It calls on the Government to clamp down on this area to bring in much-needed revenue and limit the damaging economic impact on FWD members.

The submission also supports the widespread call for a freeze in the planned 1p duty increase on fuel in April, and urges the Government to under-take a wider review of fuel duty and its impacts.

Bielby said:“Our membership includes both large and small businesses that combined employ more than 70,0000 people throughout the country. In addition, wholesalers support employment for many hundreds of thousands of people in associated industries by supplying 32,000 small shops and convenience stores, and over 10,000 caterers. They make an extensive contribution to the economy and we hope the Government will bear this vital role in mind as it prepares for next month’s Budget.”

Source: Federation of Wholesale Distributors (FWD’s)

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Family spending power fell in January, reveals Asda | Industry News | TalkingRetail.com

Family spending power fell by£9 per week in January 2011, the largest fall on record and the second record breaking month in a row, according to the latest Asda Income Tracker.

The average family had£174 per week to spend in January, 4.7% down from £183 this time last year. When the impact of bonus payments is included, family spending power also decreased by £9 over the year to January, a fall of 4.3%.

The continued decline in family spending power in 2010 and into 2011 was the result of the price of essential goods and services rising faster than net income growth. Gross incomes grew by 2.4% in January 2011 year-on-year, down from 2.6% in December but above the lows experienced in 2009.

The rise in inflation points towards the depreciation of sterling, rising global commodity prices and the VAT rise in January 2011. With ongoing disruption to oil supplies through Egypt and vibrant demand from emerging economies, the price of crude oil put pressures on petrol costs in January. In addition, VAT rose to 20% on 4 January, and earnings growth has remained sluggish. As a result, those factors which caused the Asda Income Tracker to fall in 2010 have persisted into 2011 and are likely to continue over the short term.

Charles Davis, managing economist of Cebr, said:“With annual consumer price index inflation double the Bank of England’s target rate, while earnings growth remains modest, average households are seeing spending power sharply eroded.

“This trend is likely to continue into 2011, as inflation remains elevated and the labour market recovery lacks conviction.”

Andy Clarke, Asda president and CEO,said:“The latest drop in household spending power reflects what we’re seeing in our stores – customers making each pound count.

“We’re conscious that we’re now seeing year-on-year declines in disposable income that reinforce our responsibilities to shoppers – holding back inflation, keeping prices low, and being at our best in helping them deal with whatever the economy throws at them.”

Source: Asda

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Budgens launches new consumer website | Industry News | TalkingRetail.com

Budgens has launched its new consumer website, offering shoppersa range of“additional benefits”.

The website has been re-designed with a new look that aims to keep things simple for the user to make it easier for shoppers to find out more about Budgens’ stores– where they can find their local independently owned Budgens and check out some of the offers in store.

Budgens sales director, Dan Quest, said:“We have hundreds of offers every week for shoppers, so we’ve developed the site to give a lot more space to some of the great products on offer in-store. This combined with additional benefits such as a seasonal calendar and a calculator means shoppers can now decide which special offers they want to purchase and how much they could potentially save before they even set foot in store.”

Source: Budgens

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Northern Ireland traders urge a re-think on plastic bag levy | Industry News | TalkingRetail.com

The Northern Ireland Independent Retail Trade Association (NIIRTA) has, ahead of a key vote next week in the Northern Ireland Assembly, urged MLAs to rethink their approach to the proposed plastic bag levy.

Its call comes as the Plastic Bag levy is due for its second reading, possibly by accelerated passage this coming Monday (28 February) in a Private Members Bill by Daithi McKay MLA.

NIIRTA has expressed concern that the proposed levy will cause greater harm to the environment, add further red tape to small traders and increase working family’s grocery bills.

NIIRTA chief executive Glyn Roberts said:“We share the objective of this proposed legislation of reducing the amount of single-use plastic bag going to landfill sides and are keen to work with all political parties to achieve this aim.

“However there is a real danger that this proposed levy could actually result in more plastic going to landfill. Clear evidence of the levy in the Republic of Ireland showed a dramatic increase of black plastic bags and bin-liners (which take over a 1,000 years to bio-degrade) as a result of lesssingle-use plastic bags being re-cycled.”

The figures speak for themselves -

• Tesco– 77% increase in pedal bin liner sales.
• SuperQuinn– 84% increase in nappy disposable bag sales.
• SuperValue/Centra– 75% increase in swing bin liner sales.

 

Roberts said:“If this was repeated in Northern Ireland, this proposed levy would actually damage our environment rather than help it.

“This levy would also add considerably to the red tape burden of small traders and will hurt working families having to pay for plastic bags on top of increased shopping bills following the VAT hike in January.

“There are also major questions as to how it would be administered, enforced and just how much funds such a levy would generate.

“NIIRTA fully supports the Green New Deal and many of its members have led the way investing in green technology in heating, lighting and refrigeration. Our members have also been to fore in implementing a voluntary scheme of educating customers which has led in many stores to a 50% reduction in the amount of plastic bags going to landfill.

“We are completely committed to an effective strategy to reduce plastic bag usage and but would urge MLAs this Monday to carefully consider if this Private Members Bill will achieve this objective.

“Instead we would call for the Private Members Bill to be parked until after the Assembly Election. A new strategy should be developed by the DOE, working with retailers and packaging companies, which builds upon the voluntary approach of educating customers and avoids more plastic bags going tolandfill.”

Source: The Northern Ireland Independent Retail Trade Association (NIIRTA)

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Asda pays£26.9m bonuses to UK staff | Industry News | TalkingRetail.com

Staff members at UK Asda stores and depots will share an annual bonus pay out this week as the supermarket celebrates a successful year.

As Asda’s US parent Walmart prepares to announce its full year results later today, Asda has confirmed a bonus pot of £26.9m for staff working in its stores and depots.

Staff with over six months service at Asda will receive their annual bonus this Friday. The payout will see full-time staff working at one of Asda’s 386 stores and 19 distribution depots receiving a bonus of up to £350.

Over 20,000 staff members in stores and depots that have exceeded their annual target will receive a bonus of up to a£437 – or ‘superbonus’. The Greenhithe store in Kent was the best-performing store in England, whilst Stenhousemuir came top in Scotland. The Bangor store achieved the highest performance in Northern Ireland along with Llangefni in Wales.

The bonus recognises the efforts of staff across the country over the last 12 months, including‘Go Getters for Forgetters’ who clocked up 22 million steps fetching items for shoppers during the festive period.

Andy Clarke, CEO and president of Asda, said:“There is no doubt in my mind that the staff members working in our stores and depots are the heroes of our business. They have worked incredibly hard this year to deliver the best for our customers – taking everything from the difficult economic climate to the great British weather in their stride. I take my hat off to them.

“Our bonus payout is directly linked to our stores’ performance, so to be able to offer a bonus to our colleagues during challenging times, is testament to the fact that we are giving consumers what they want – quality, value and service every day.”

Source: Asda

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New Sainsbury’s store openings create more jobs | Industry News | TalkingRetail.com

Sainsbury’s has opened a new Local store on Wilford Road, Ruddington, Nottingham, creating 15 jobs and pledging to support local organisations.

Among those set to receive support in the coming months is the local branch of Riding for the Disabled, which has been chosen as the store’s Local Charity Partner for the next 12 months.

To mark the beginning of the new relationship, representatives from the charity joined councillor James Norton in cutting the ribbon to officially open the new store. In the coming weeks, Sainsbury’s will also buy the charity much-needed equipment to the value of £500.

Store manager, Angie Radford, said:“We know our customers care about making a difference to the community, which is why our Local Charity Partner initiative is so important. We’re delighted to be working with Riding for the Disabled over the coming months, and look forward to working closely with other community organisations.”

Another Local Sainsbury’s store has also opened in Aylesbury creating 18 jobs for local residents.

Among the 18 new recruits joining the 24-strong team are those who have been taken on through the Jobcentre and online after struggling to find work.

The new 2,600 sq ft store, which was opened by pupils from nearby Broughton Junior School, will stock a range of fresh and frozen produce, plus a range of products for those with wheat, gluten and dairy intolerances. The store also boasts a bakery and a car park with 14 spaces.

At the launch, pupils were presented with a variety of sports equipment from the Sainsbury’s Active Kids range. The school will also receive£500-worth of equipment from the store, with a further £500-worth of toys and puzzles going towards the Buckinghamshire Play Association.

Store manager Paul Agate said:“We’re looking forward to making a positive difference to the community by supporting them through donations, in-store collections, and colleagues volunteering their time at events.

“We’ve already pledged to support the local school and play association, and will soon be launching our local charity of the year initiative shortly, so are interested in hearing from any local organisations looking for support.”

Source: Sainsbury’s

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Tesco to be‘fastest-growing retailer’ says analyst | Industry News | TalkingRetail.com

Tesco is set to become the fastest-growing retailer of the global grocery market of the top four supermarkets, according to the latest forecasts from international food and grocery analyst IGD.

Driven by sharing best practice in areas like loyalty and services across its market, it will grow sales to€106,074m by 2015 (compared with €73,777m in 2010).

The report also revealed that Walmart, the world’s largest retailer, will soon reach half a trillion US Dollars in sales, with a CAGR of 4.7% taking global sales to €401,753m by 2015.

Joanne Denney-Finch, chief executive at IGD, said:“Global retailers that want to achieve the highest growth rates are those that are building a presence in emerging markets. Rapid urbanisation and a growing middle class will create big opportunities in countries like Brazil, China, Russia and India.

“With retailer investment plans heavily focused on these emerging markets, food and drink manufacturers will need to keep pace if they want to be part of the growth. Each market is different and nobody should take their eye off the mature and domestic markets, which still provide the bulk of salesfor the international players.”    

Source: IGD

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Waitrose supports Wine Relief 2011 | Industry News | TalkingRetail.com

Waitrose is to take part in this year’s Comic Relief’s Wine Relief. The supermarket has selected eight wines and 10% of the retail price of each bottle sold will go straight to Comic Relief.

Wine Relief has raised nearly£4m since its launch in 1999.

Details of the wines involved are…

• Waitrose Cava Brut NV Spain, Sparkling Wine£6.99
• Forte Alto Pinot Grigio 2009 Vigneti Delle Dolomiti, Italy£7.99
• Champteloup 2009 Muscadet de Sèvre et Maine, Loire, France £6.99
• Cono Sur Viognier 2008/09 Colchagua Valley, Chile£7.49
• Wither Hills Pinot Gris 2010 Marlborough, New Zealand£9.99
• Vuvuzela Tempranillo / Cabernet Sauvignon 2009 La Mancha, Spain£5.99
• Inycon Nero d’Avola / Frappato 2009 Sicily, Italy£6.49
• Calvet Reserve Merlot 2009 Bordeaux, France£6.99

Offer ends on the 18 March, which is Red Nose Day.

Source: Waitrose

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Co-op wants 20 million members to sign up to its ethical plan | Industry News | TalkingRetail.com

The Co-operative Group has set a new benchmark for corporate sustainability in the UK, which will support its aim to have 20 million members during this decade and boost the move to a more environmentally sound and just UK economy.

Among the groundbreaking pledges in The Co-operative’s new Ethical Operating Plan are:

• the toughest operational carbon reduction targets of any major business, and the deployment of£1bn of green energy finance by 2013
• the most radical Fairtrade conversion programme ever undertaken
• the world’s first ethically screened general insurance products
• a three-fold increase in membership from six million to 20 million by 2020
• significantly enhanced funding for co-operative enterprises and schools

The Co-operative is launching a new three-year rolling programme, which encompasses all its businesses and sets out a set of goals and targets to drive its ethical and co-operative aspirations.

In early March, The Co-op will also launch a new advertising campaign that will showcase the impact of its community and co-operative initiatives and will urge customers to“join The Co-operative revolution.”

Group chief executive, Peter Marks, said:“Our ambition is to build a better society and this plan will stimulate and reinforce the unique benefit of the consumer co-operative model.

“At a time when UK society is picking up the pieces from a recession exacerbated by corporate greed and speculation, we are seeking to show that there is another way. The plc model is not the only game in town. It is possible for business to embrace the efficiencies of the market economy and alsothe need for robust legislation to ensure that progress is sustainable and just.   

“Taken together, we believe the measures and pledges set out in our Ethical Plan raise the bar on corporate sustainability. Over the next 10 years working with our customers, members, suppliers, staff and communities we believe we really can make Britain even better.“

In total there are 47 distinct targets within TheCo-operative’s Ethical Plan,which will be reported on each year within the group’s sustainability report. 

Source: The Co-operative

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Alcohol consumption levels fall as at-home drinking grows | Industry News | TalkingRetail.com

The British are drinking less alcohol than they were five years ago, despite concerns over binge drinking, according to research out today from Kantar Worldpanel

In Great Britain the average consumption has dropped from 17 units per week in 2006 to 14 units in 2010.

Fewer people are drinking in pubs to the benefit of the take-home drinks market, but the switch in consumer habits has not maintained alcohol consumption levels.

Changes in consumer lifestyles and an ageing population are contributing towards the decline, as well as increasing unemployment and falling disposable income during the recession, particularly among 18-24 year olds, says Kantar Worldpanel.

Kevan Mulcahey, business unit director at Kantar Worldpanel, said:“While the recession has accelerated the fundamental changes in drinking habits that we have seen since 2006, it is not solely responsible for the drop in consumption.

“There has been a shift over the last decade towards more people consuming alcohol in the home than in bars and restaurants, and this has driven the decline in alcohol consumption.”

A poor offer from drinking establishments, the increased availability of in-home entertainment and heavy drinks promotions in supermarkets have helped increase the at-home share of alcohol consumption to 70% in 2010 compared to 66% in 2006.

The decline in alcohol consumption out of the home is considerable with just 5.6 billion drinks served in the UK in 2010 compared to 8.3 billion in 2001.

Mulcahey said:“As people have made spending cutbacks they have also reduced the number of visits to bars and pubs, and when they do go out they are looking to make the occasion special.

“Pubs and bars therefore need to ensure that they are offering consumers something different to what they can get at home. Cocktails for example, have proven to be a differentiator with the category maintaining its share of drinkers in 2010.”

For those drinking at home, pre-mixes have proved to be popular with£24m spent on drinks such as vodka and cola in the past year. This is reflective of the overall shift towards convenience and drinking at home, and also the continued preference in sweeter alcoholic drinks that has been seen since 2000. 

Mulcahey said:“We are seeing a decline in alcohol consumption and a continuous shift towards drinking at home but drinks manufacturers and retailers can take advantage of the growth of at-home drinking with clever marketing strategies targeted at the at-home occasion supported by sensible promotional activity. 

“Whilst the government announced earlier this year that it has decided to take action on minimum pricing it has yet to decide when these new plans will actually be implemented. It is also fair to say that when existing levels of promotional activity are reviewed the impact will not be that significant.”

Source: Kantar Worldpanel

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Midcounties raises a record£400,000 for charity | Industry News | TalkingRetail.com

Community retailer The Midcounties Co-operative is celebrating a record£400,000 raised for its charity partner Help the Hospices.

From cycle rides and sponsored walks to sky dives and‘Give at the Till’ initiatives, colleagues, members and customers went the “extra mile” to support the two-year fundraising drive.

In addition to raising the biggest total ever for a charity partner, Midcounties’ colleagues also volunteered their services and gave more than 18,000 hours of community work for the cause.

The funds raised will  benefit 11 hospices in its trading areas at Compton Hospice, Wolverhampton; Cotswold Care Hospice, Gloucestershire; Great Oaks Hospice, Forest of Dean; Helen and Douglas House, Oxford; Katharine House Hospice, Banbury; Kemp Hospice, Worcestershire; Prospect Hospice, Swindon; Severn Hospice, Shropshire; Sir Michael Sobell House, Oxford; South Bucks Hospice, High Wycombe; and Walsall Hospice.

Midcounties Co-op chief executive Ben Reid, who personally raised more than£4,000 for Help the Hospices by running the New York Marathon, paid tribute to everyone who got behind the charity partnership.

He said:“Statistically around half of our customers and staff are likely to know someone who has been cared for by a hospice and there is no doubt that people identified with their local hospices and embraced a cause which is close to their hearts. That support is shown in the amount we have raised and also by the many stories people will tell about what they have done and how they have made a real difference.

“This community involvement is what sets the Co-operative apart from other businesses and it has shown Team Midcounties at its best. I am sure the links we have established with our local hospices will continue for many years to come.”

Source: The Midcounties Co-operative

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Morrisons announces acquisition of Kiddicare | Industry News | TalkingRetail.com

Morrisons has taken its first step in developing its online business by acquiring online retailer Kiddicare, together with the rights to its technology platform, for a total consideration of£70m.  

The company will continue to trade separately as kiddicare.com, led by Scott and Elaine Weavers-Wright, who will pursue an“ambitious growth” agenda.

Kiddicare, founded in 1974 by Neville and Marilyn Wright, is the UK’s leading specialist online retailer of baby products. Turnover in the last full financial year (2010) was £37.5m and has grown by 75% in the past three years. Over 80% of sales are now through the online channel. 

The company owns a new state of the art freehold distribution facility and operates the largest baby nursery equipment retail store in Europe based in Peterborough, comprising 160,000 square feet of warehouse, retail and office space. 

Morrisons intends to build its online non-food business, developing the kiddicare.com platform and management team, launching its first products in 2012.

Dalton Philips, chief executive of Morrisons, said:“This acquisition brings not only a respected, successful and fast growing specialist retailer into the Morrisons group but also a robust, scalable and highly advanced technology platform around which we can begin to build our e-commerce offer. 

“We are delighted to welcome Scott and Elaine Weavers-Wright to Morrisons, along with their team. They are two of the most talented and respected operators of online retail today and their experience and track record with Kiddicare.com has been outstanding.   Their knowledge and expertise willbe invaluable as Morrisons builds its online business.”

Source: Morrisons

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Waitrose opens its first store in Bahrain | Industry News | TalkingRetail.com

Waitrose has extended its presence overseas with the opening of the first Waitrose shop in Bahrain on 10 February. It will be the third branch outside of the UK with two stores operating in the United Arab Emirates.

The 22,000 sqft store will open through the retailer’s partnership with Fine Fare Food Market LLC (FFFM) and is located at The Lagoon, a new complex on Amwaj Islands on the north-east coast of the country. The complex contains retail, leisure and commercial facilities and the new shop will serve the residential properties that have been developed in the area in recent years.

The supermarket opened its first shops outside the UK in Dubai in November 2008 and sales are“exceeding expectations”, despite the economic climate. Waitrose continues to pursue further stores in the Middle East region.

The new shop offers Waitrose products, including the essential Waitrose range, as well as locally sourced products such as Arabic breads and sweets to meet the needs of the local Bahrain customers. The wide range includes fresh and frozen foods, groceries, delicatessen, cheese, fish, meat, patisserie and hot food counters. Big sellers in the Dubai stores include British cheeses, fresh pasta and yogurts.

The store will create 70 new jobs and FFFM will run its daily operation, supported by Waitrose in the UK, with a focus on delivering the high levels of customer service and fabulous food that shoppers expect from the Waitrose brand.

David Morton, Waitrose director of international development, said:“Expanding our business into the Middle East supports our long-term growth plans to make the Waitrose brand accessible to more people in more places. Following the excellent sales performance and positive customer response from customers in the region, we are thrilled to be opening our first storein Bahrain in such a unique location.

“Our partnership with Fine Fare Food Market LLC enables us to deliver quality food that suits the needs of local shoppers and we’re currently working together to find more suitable locations in the region, with the aim of opening more shops in the Middle East.”

Source: Waitrose

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Interest rate rise‘would of only done harm’, says BRC | Industry News | TalkingRetail.com

The Bank of England’s decision to leave interest rates unchanged is a wise one, according to the British Retail Consortium (BRC).

Director general of the BRC, Stephen Robertson, said:“Continuing the freeze on interest rates is a wise move. At a time when consumer confidence is weak and the housing market is slow, raising rates could only have done harm.

“Inflationary pressures are down to the VAT rise, soaring global commodity costs and high energy prices, which an interest rate rise would do little to combat.  The economy still needs all the support it can get.

“Retail is the UK’s biggest private sector employer. Keeping interest rates down encourages investment and helps create jobs.”

Source: British Retail Consortium (BRC)

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Sainsbury’s to source Fairtrade cotton from Gujarat | Industry News | TalkingRetail.com

Sainsbury’s has announced that it will source all of its Fairtrade cotton from a co-operative supplier in Gujarat.

In the first deal of its kind, Sainsbury’s has committed to buying a year’s worth of cotton during the harvest period, which will allow the famers to plan how they use their money, as they will have a guaranteed annual income. Sainsbury’s will also provide advance payments of the Fairtrade premiums, which can be used immediately for community projects.

Ninad Gupte, from the project executive Body Agrocel, said: “Sainsbury’s is the largest consumer of Fairtrade cotton from our projects in Gujarat. Cotton prices are very unstable so guaranteeing our farmers a minimum price and pre-financing the Fairtrade social premium, offers security that has not been possible in the past.

“Through this initiative, our farmers co-operative body has been able to improve conditions by investing in projects like providing clean drinking water and health check-ups.”

Liz Jarman, Sainsbury’s head of fair-trade, said:“Clothing is a major feature of Sainsbury’s Fairtrade offer and we are proud to be supporting cotton farmers in a way which has not been seen before. Sainsbury’s sell an average of 250 Fairtrade t-shirts per hour, which means a total Fairtrade premium of $250,000 per year to benefit cotton farmers in Gujarat.”

Around 1,200 small and marginal farmers based in Gujarat will benefit from this initiative, allowing investment in long-term benefits such as health and education.

Source: Sainsbury’s

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Retailers‘not to blame’ for excessive card changes | Industry News | TalkingRetail.com

Which? is right to draw attention to excessive charges levied on customers using debit or credit cards but wrong to blame retailers, according to the British Retail Consortium (BRC).

Which? is asking the Office of Fair Trading (OFT) to investigate the charges for paying by card. The consumer organisation says airlines, ferry operators, estate agents and cinemas are all charging customers much more than the actual costs those businesses incur when a transaction is processed.

BRC director general Stephen Robertson said:“We welcome this focus on the unjustified card charges customers can face but Which? is wrong to suggest this is a retail practice. Airlines and cinemas are not retailers. 

“There is a big card issue for retailers. It’s the widely varying fees banks levy on them for processing the different payment methods. That’s something few customers are aware of.

“On average, the banks’ charges for processing a credit card transaction are 15 times higher than for cash. But responsible, competitive retailers charge customers the same price for an item regardless of how they pay.

“I can’t speak for budget airlines but retailers are actually protecting card-using customers from the banks’ excessive charges on them. We’ve been engaged in a longstanding campaign and legal action to bring those fees down to levels that reflect the actual, very low, costs of processing transactions. The banks should play fair by their customers as retailers do with theirs.”  

Source: BRC

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Tesco celebrates its best Christmas in three years | Industry News | TalkingRetail.com

Tesco has announced year-on-year sales across its UK stores have increased by 4.9% during December and early January, well ahead of City forecasts.

Amongst the categories driving the growth, was the Tesco Finest food range, which was heavily supported by an innovative POS campaign.

Tesco’s Finest range is one of Europe’s largest selling brands, representing high-quality products, but was struggling to create stand-out in an over saturated seasonal environment over Christmas 2010.

Augustus Martin– experts in POS and brand retail communication– recommended employing a newly employed‘disruptive’ effect that had been developed exclusively in-house. This technique used a black base, synonymous with quality in the food retail environment, and combined it with a ‘twinkling’ effect as consumers walk past that really grabs their attention.

Andrew Miles, director of stores marketing at Tesco, said:“This promotion has been really powerful and allowed our Finest brand to be clearly visible throughout the Christmas period when our stores and marketing activity are at their busiest. We were delighted the campaign successfully delivered double-digit growth for our range through a congested and competitive trading period.”

Daniel Pattison, group sales director at Augustus Martin, said:“POS is potentially one of the most sophisticated methods of marketing products and services to consumers, and increasingly so as we continue to learn and discover more about shoppers’ habits, demographics, decisions and life styles.”

The new effects technology employed by Augustus Martin uses a combination of traditional printing processes and inks that are manufactured exclusively by Augustus Martin.

Pattison added:“These effects are great for our clients as they improve sales, can be produced quickly and are affordable.”

Source: Tesco

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Asda launches£52 ‘mobile library’ | Industry News | TalkingRetail.com

Asda is doing its bit for bookworms by discounting the price of eBook readers to£52 – less than half the price of Amazon’s lowest cost Kindle.

Thousands of out-of-copyright classic titles are available online for free, enabling eBook owners to access an enormous range of outstanding literary content to read on commutes, holidays and on the sofa.

The website Project Gutenberg alone currently has more than 33,000 free eBooks available for download, featuring works by authors that include Sir Arthur Conan-Doyle, HG Wells, Mark Twain, Jane Austen and Emily Bronte. Based on a reading speed of a book a day, this provides enough content to keep a reader going for 90 years. More recent paid-for titles can also be loaded onto the Asda eBook reader, which recognises a wide range of content formats.

Asda’s £52 View Quest Mediabox 5in Media Tablet features eBook, music and video playback. Users can read eBooks in portrait or landscape mode, store and view photos and images and it also has a built in voice recorder that students can use to make notes when they are reading. The tablet is backlit for night time reading, and has a power saving mode to reduce eye strain and improve battery life.

Source: Asda

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Scotmid Co-op raises£60,000 to fund dementia nurse | Industry News | TalkingRetail.com

Scotmid Co-op customers and staff have raised more than  £60,000 for Alzheimer Scotland, Scotland’s leading dementia charity.

The money raised will pay for a specialist dementia nurse to work in one of Scotland’s health boards, to improve the care offered to patients with dementia. 
Henry Simmons, Alzheimer Scotland’s chief executive, said:  “This is an absolutely tremendous contribution to Alzheimer Scotland’s mission– to make sure that no-one has to go through dementia on their own.

“We will be using this money specifically to support people with dementia in acute hospitals through our innovative Dementia Nurse programme.

“This very generous donation will fund a full-time dementia nurse post. In a 900 bed acute hospital, anywhere between 150 to 200 people will have some form of dementia. Alzheimer Scotland dementia nurses work with NHS colleagues to increase staff understanding of dementia and improve standards ofcare.

“Our dementia nurses make a big difference to the lives of people with dementia and their families. The incredible support of all the customers and staff at Scotmid has gone a long, long way in helping us to make this possible.”

John Brodie, Scotmid’s chief executive, said:  “Having a close working relationship with Alzheimer Scotland made us fully appreciate how this illness can affect so many people from every walk of life. I would like to thank our customers and staff for their generosity in once again raising so much money for charityeven in these difficult times.”

Source: Scotmid

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Heineken announced as Official Lager Supplier for London 2012 | Industry News | TalkingRetail.com

The London Organising Committee for the Olympic Games and Paralympic Games (LOCOG) has appointed Heineken UK as the Official Lager Supplier and sponsor of London 2012 in a tier three sponsorship deal.

As part of the deal, the company’s flagship premium beer, Heineken will be the branded lager served at the Games and Heineken UK will have exclusive pouring rights for its portfolio of beer and cider brands at all London 2012 venues where alcohol is served.

Heineken will also be able to utilise exclusive hospitality and marketing opportunities associated with the event. It will also enjoy sponsorship and venue supply rights associated with the British Olympic Association, Team GB, the British Paralympic Association and the Paralympics GB team.

Alexis Nasard, chief commercial officer, Heineken NV, said:“There are no bigger, global or more spectacular events than the Olympic Games and Paralympic Games. We selected this opportunity as it fully reflects Heineken’s global brand position.

“It also provides a wonderful platform for the promotion of responsible drinking. Based on the experiences gained from being a long-term sponsor of premier sporting events such as the UEFA Champions League and the Rugby World Cup we will utilise London 2012 to celebrate with the world in a way that only Heineken can do.”

Source: Investegate

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Tesco plan‘to sell used cars’ | Industry News | TalkingRetail.com

Tesco is planning to venture into the used car market in the UK, where it’s thought they will sell hundreds of thousands of used cars a year via a website similar to Autoquake, according to Car Dealer Magazine.

A source revealed to the magazine:“The sole aim of this will be for Tesco to up-sell its finance and insurance products to buyers of these used cars. It’s likely they’ll make very little on each sale but instead use it to make lots of revenue from their financial arm.”

Source: Car Dealer Magazine

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Retailers in‘rush’ to integrate iPads on shop floor | Industry News | TalkingRetail.com

With retailers continually looking for new ways to exploit technology to enhance the customer experience, iPads and tablet devices are going to become more prominent during 2011 than ever before.

There are already early adopters of this“new” platform in both retail and hospitality. Gordon Ramsay at Claridges famously uses the Ipad at the table to take food orders and to allow clients to select their wine to accompany the meal, providing detailed descriptions and images of the bottle.

But Paul Manning from EPOS Partners is concerned that many retailers may be blinded by the“glitz and glamour” of introducing a new high-tech POS solution to the shop floor and may end up risking sales and customer satisfaction by making a hasty decision that is based on design, not functionality.

Manning said:“The attraction of tablet devices is clear. From a store perspective, we’ve already seen over the past decade how portable POS devices have been embraced by many retailers as a way of automating the sales process. The primary advantage of the iPad as a retail sales tool is the immediacy it delivers for customers, so their customer experience is enhanced, the buying process is speeded up and customer satisfaction is maintained.

“Obviously from a logistical perspective, such devices reduce the risk of human error in accurately recording stock management and sales figures and enables real time analysis by management. I believe it will be features such as Bluetooth and the variety of retail based apps which will start to appear, which will really give it the edge, enabling retailers to do things like digitally send receipts, vouchers etc to a customers’ phone.”

Source:CTS Retail

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Supermarkets hit by‘seasonal hangover’, says new research | Industry News | TalkingRetail.com

Supermarket sales suffered a seasonal hangover in the four weeks to 22 January, according to data out today by research company Nielsen.

Sales in grocery multiples were hit by the“reality of increasing pressure on consumer pockets” with sales declines of -0.2% year on year.

Sales in the sector declined in the week ending 1 January and only ever improved in the third week of the month (w/e 15 January) as shoppers re-stocked their larders. 

Mike Watkins, senior manager Retailer Services at Nielsen, said:“Price inflation is the main driver of retail growths in January. When looking at volumes being sold we see that sales have actually declined 3.6% year on year in the four weeks to 22 January. 

“There is always a seasonal hangover which follows Christmas but this year it has been particularly marked.  Consumers rely on cupboard stocks built up over the festive season and defer spending until the January pay check comes in.

“But this year, set against a backdrop of price increases on fuel, utilities and food inflation the results are particularly sobering.

“We know from our consumer confidence survey that people are feeling increasing financial pressure and continue to look for ways to make savings on household expenditure. 

“As we look forward into 2011, the grocery sector will feel further obligation to offer value to their shoppers and consumers will begin to consider the affordability of everything they put in their basket,” said Watkins.

Source: Nielsen

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Discounters lead grocery sales growth as economic woes start to bite | Industry News | TalkingRetail.com

The UK’s tough economic climate is polarising sales growth in the UK grocery market at both ends of the value spectrum, according to the latest share figures from Kantar Worldpanel published today for the 12 weeks ending 23 January.

Within the big four retailers, Sainsbury’s has had a “strong entry” into 2011 and is once again the only outlet to increase market share, from 16.3% a year ago to 16.6%.

Among the other major grocery retailers, Tesco and Asda have effectively matched market growth and held onto share, but Morrisons has experienced a slight dip this period from 12.5% to 12.4%. However, said Kantar Worldpanel, it should be acknowledged that it is faced with strong year-on-year comparatives as its 12.5% share in January 2010 was a record performance for Morrisons. 

Elsewhere in the grocery market, two contrasting sectors are experiencing robust growth. 

Edward Garner, communications director at Kantar Worldpanel, said:“With growth of 7.1%, Waitrose continues to benefit from strong sales at Christmas, boosted by new shoppers this year at both existing and new stores.

“However, with a group of shoppers tightening their purse strings and seeking value we’re also seeing a counter trend at the other end of the retail scale. Although January is not traditionally a strong period for the discounters, both Aldi and Lidl have posted near 10% growth and lifted the total discounters’ market share from 5.9% last year to 6.1% in the latest period.”

“The Co-operative has lost 0.6% market share in the latest period as a result of direction by the Office of Fair Trading to sell-off some Somerfield stores. However as Somerfield has now effectively ceased to exist, going forward the market share of The Co-operative will be a more accurate reflection of its performance.

“Iceland’s strong run has come to an end with year-on-year growth held at 2.1%, reflecting a flat performance for the frozen food market overall,” he said.

Grocery inflation stands at 3.1% for the 12 week ending period 23 January 2011 and is thus largely unchanged for the last six reports. Any inflationary movements in world foodstuff prices as reported by the media are effectively being held back by high levels of promotional discount.

Source: Kantar Worldpanel

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