‘Pound stores’ will still thrive in improving economy, says new research | Industry News | TalkingRetail.com

Shoppers will not turn their backs on‘pound shops’ even if the economy picks up, according to research published today by YouGov.

Pound stores continue to thrive in the UK’s high street and have created loyalty amongst “savvy” shoppers who will not reject them even if the economy improves.

Latest research from YouGov finds that almost one third (32%) of adults has shopped at a pound store in the last three months.

Almost a quarter (23%) of respondents have bought products from one or more of key categories asked about at a pound store in the past three months and are spending less at supermarkets/other stores in at least one category as a result.

Cleaning products are the most popular pound store purchases– 21% of respondents have bought these items in the past three months. 18% have purchased toiletries, 17% have bought chocolate and/or sweets and 13% have purchased snacks and/or crisps.

Saving money is the overwhelming reason for using pound stores, with 60% of respondents citing this as the main reason for shopping there. This is particularly true for women and older respondents: 67% of females and 66% of those 55 and older head to pound stores to be thrifty. 

YouGov’s research “directly challenges the myth” that pound stores cater mainly to C2DEs (social grades).  In fact, ABC1s are just as likely to shop at pound stores, which suggests ‘savvy shopping’ is not simply a reflection of relative wealth. 

When it comes to reasons for shopping in pound stores there are however regional differences: almost a quarter (24%) of respondents in London say the‘deals on offer’ are the main reason they shop in pound stores; in Scotland the figure rises to 41%, but just across the border in the North of England 19% of pound shop customers cite deals as their main reason for shopping.

YouGov consulting director Rob Cushen says pound stores will continue to chip away at the supermarkets’ share of wallet in key categories like cleaning products unless and until they offer closer pricing or deal parity.

“Our research suggests shoppers aren’t simply planning to head back to supermarkets when the financial situation improves: 74% of respondents who bought something from a pound store in the last three months say they will continue shopping there even if the economy improves.

“What this means is that the deals on offer are creating loyalty amongst savvy shoppers and larger supermarket chains will need to fight hard in these categories to rebuild share.”

Source: YouGov

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Economy‘biting deep’, says Co-op boss | Industry News | TalkingRetail.com

The downturn in the economy is“clearly biting deeper than expected”, according to Peter Marks, group chief executive at The Co-operative Group.

The group has released its preliminary results today for the 52 weeks ending 1 January 2011, which revealed:

• Sales up 4.8% to£7.5bn.
• Operating profit before significant items up 33.3% to£382.6m. 
• A further 524 stores were refitted and by April 2011 all stores will be operating under the Co-operative brand.
• 350 more stores planned by 2013 creating around 7,000 jobs.
• £70m planned investment this year in food logistics network.
• 350 new products launched in 2010 and 50 more to be added to premium TI range this year.

Foundations have also been laid for the launch of Ethical Operating Plan, positioning the Co-operative Group as the UK’s “most responsible business”. The plan sets out ambitious new targets and heralds a new era for sustainable development both in business, and beyond – seeking to improve its performance while encouraging customers and members to take action and campaign to influence public policy.

Marks said:“Despite the difficult economic environment I am confident that we are well placed to meet the challenge. During 2011 we will still be a business in transition, however, all the work done over the past three years means we are in good shape to continue to weather the downturn and make the most ofopportunities when the economic situation improves.

“We will continue to set ourselves challenging, but achievable targets for both our business performance and our social goals because that is what our members ask for and expect. It is that drive and ambition for excellence that I believewill ensure our long-term success.

“Finally, this time last year I welcomed the interest being shown by all the mainstream political parties in our ownership model, and the potential they saw in co-operatives to drive improvements in the delivery of public sector services. Since then there has been a great deal of talk, but littleby way of action.

“What is now needed, to take ‘Big Society’ thinking from mere rhetoric to something tangible, is a ‘one-stop shop’ where those who want to set up a co-operative can meet the experts and actually make things happen. This is something we plan to launch this year. We are also committing to spend £11m to support the growth and development of co-operative businesses and schools in the UK. All of this gives me the confidence to say that we are firmly on the right path to meet our vision of creating a better society.”

Source: The Co-op

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Co-op launches‘money-saving’ website for shoppers | Industry News | TalkingRetail.com

The Co-operative has this week launched a new Save More website, allowing shoppers to“save money on their shopping” at Co-operative Food stores nationwide.

Customers can access the Save More site throughwww.goodwithfood.co.ukand also via featured offers onwww.beforeIshop.co.uk.

The website allows them to download and print money-off coupons for a broad range of products.  For the initial launch, customers can also grab an exclusive “£5 off £30” spend coupon upon registration.

The offers will be updated regularly to ensure the site is“fresh and up to date”, and all offers will be available in all Co-operative food stores throughout the UK.

Sean Toal, commercial director for The Co-operative Food, said:“Our exciting ‘Save More’ coupon gallery will be a one-stop site for customers to save even more on their shopping with The Co-operative Food. 

“It’s ideal for families looking to get the most from their food budgets during tough economic times.

“The site will develop and grow over time to make sure that we continue to engage with our customers in a variety of ways, such as competitions, spend coupons and many more exciting offers.”

For further information, customers can visitwww.goodwithfood.co.ukor contact The Co-operative Customer Careline on (freephone) 0800 0686 727.

Source: Co-op

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Co-op latest retailer to join C-Store Forum | Industry News | TalkingRetail.com

The Co-operative Group is the latest top retailer to confirm its attendance at C-Store Forum, which is taking place in the Algarve from 13 to 14 June this year. 

Jonathan Perry, senior marketing manager, stores format design, and Calum Kirk, category trading manager of non-food, fuel and drinks, will be representing the group and rubbing shoulders with their peers from Bestway, BP, Costcutter, James Hall& Co., Landmark Wholesale, Motor Fuel Group, MPK Garages, Murco Petroleum, Musgrave, Nisa, Petrogas, TOP, Topaz, United Wholesale and Welcome Break, amongst others.

This group of retailers will be gathering at the Tivoli Victoria Hotel, Vilamoura, to meet with a selection of suppliers representing food-to-go, energy control systems, signage, branding, design, lighting& LED, display systems, in-store media and retail technology for one-and-a-half days of one-to-one pre-arranged meetings, networking and debate.

With IGD predicting that the UK convenience store market will be worth £42.6bn by 2015 – up about one-third of its current value– retailers and suppliers alike are recognising the importance of networking and maximising efficient use of their time, exemplified in the speed-meeting model of these forums.

OpenRoom director, Fiona Horan, said:“The interest in this forum continues to grow year on year – and we’re delighted that companies in this sector recognise the value of a networking forum as a significant tool for future growth.”

Along with the meetings program, there will be an opening session by David Shrimpton of Independent Retail News, as well as an presentation from David Smith, chief executive of Global Futures and Foresight, who will take a look at the Social Networks and how to leverage interactive dialogue with customers.

For further information on this event contactinfo@openroomevents.com

Source: OpenRoom

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Illegal cigarette hideaway uncovered in Newark | Industry News | TalkingRetail.com

A Nottinghamshire farm is at the centre of a cigarette smuggling investigation after almost two million cigarettes were seized by HM Revenue& Customs (HMRC) at what is believed to be an illegal distribution site. 

HMRC officers found 1,845,400 illegal cigarettes in three white vans hidden in outbuildings at the farm.  The haul is estimated to be worth around £415,000 in unpaid excise duty and VAT.

HMRC’s regional head of detection, Keith Morgan, said: “This incident highlights our concerns at the ongoing problem of the supply of illegal tobacco across Nottinghamshire. Tobacco smuggling is organised criminality on a global scale and robs the taxpayer of millions each year in unpaid duty and VAT. Anyone with information about the storage or sale of illegal tobacco in their area should contact the Customs’ hotline on 0800 59 5000.”

The illegal cigarettes and the vehicles used to transport them were seized as part of a series of ongoing operations targeting the supply of illicit tobacco across Nottinghamshire this week HMRC believes that the illegal cigarettes had been smuggled into the country and were then broken down into smaller consignments at the farm ready for distribution onto the local black market.

Source: HM Revenue& Customs (HMRC)

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Retailers and Google link up to measure online retail activity | Industry News | TalkingRetail.com

The British Retail Consortium (BRC) and Google are using the BRC’s Multi-Channel Retail Conference today to announce plans for a new quarterly report that will quantify the growth of online retail traffic.

Speaking at the event, John Gillan, Google’s senior Industry retail head, will announce the BRC – Google Online Retail Monitor (ORM). The ORM will measure traffic for the part of the retail sector operating online (the equivalent of footfall for store retailing). 

It will report changes and trends in numbers of unique visitors to retail websites, comparing the performance of online-only retailers with multi-channel retailers (those using stores and the internet).

There will be a geographical breakdown of online activity and the growth of smartphone retail traffic will also be measured. A ranking of the most popular retail search terms will show current consumer trends.  

Gillan said:“The launch of the Online Retail Monitor marks a huge step in achieving multi-channel measurability for the online retail sector. The tool will be able to quantify the growing traffic to the fast-changing retail industry, as well as establish key trends and determine retail hot spots for online traffic. As the most advanced e-commerce country in the world, the ORM can further drive the UK retail economy.” 

Online is by far the fastest growing part of UK retailing but online retail data has not been issued in this way before. The ORM will be published for the first time in mid-April. It will complement the figures for online spending, published monthly as part of the BRC– KPMG Retail Sales Monitor.

For more information about the BRC’s annual Multi-Channel Retailing Conference see: http://www.brc.org.uk/multichannel/

Source: BRC

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Budget is‘business-friendly’, says retail expert | Industry News | TalkingRetail.com

The retail trade will welcome several measures in today’s Budget, according to Conor Brindley, a lawyer in the retail sector at law firm Pinsent Masons LLP.

He said:“Today’s  business-friendly Budget  contains a number of measures that will be welcomed by retailers large and small. 

“As from 6pm tonight, fuel duty will be cut by 1%, which should bring some relief to retailers already suffering from rising fuel prices.

“In addition the fuel duty escalator which adds 1p to fuel duty on top of inflation each year is to be cancelled.  

“However, for CD and DVD high street retailers,  the abolition of  LVCR (low value consignment relief) is likely to be even more welcomed. 

“LVCR gives tax breaks to retailers outside Europe selling small, low value items by allowing these items to be  imported from abroad without suffering a  VAT charge. 

“In recent years, LVCR has been  exploited by firms who have been importing CDs and DVDs from warehouses in Jersey and Guernsey for cheaper than their high street rivals, making it hard for high street retailers to compete as savvy shoppers buy, tax free, online.

“Small businesses will also be pleased to hear that the small business rate relief holiday is to be extended by one year to October 2012,” he said.

Source: Pinsent Masons LLP

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Portman Group appoints new members to alcohol complaints panel | Industry News | TalkingRetail.com

Two new members have been appointed to the Independent Complaints Panel at the Portman Group, the independent body that investigates complaints about irresponsible alcohol marketing.

Jane Keightley and Ron Finlay are joining the group’s panel following an “open and competitive” recruitment process. 

Keightley, an ex-Diageo employee, has 16 years’ experience in the drinks sector and fills the panel place reserved for someone with an industry background.  Finlay has been a professional marketing communications practitioner for over 25 years and advised the Department of Health on its “Know Your Limits” campaign.

Sir Richard Tilt, chairman of the Independent Complaints Panel who made the appointments, said:“Jane and Ron will bring a great depth of experience to the Independent Complaints Panel in terms of their respective industry and marketing communications backgrounds. 

“Panel members play a key role in upholding the strict standards that are set for alcohol marketing in the UK and it is important that we have a diverse membership to consider complaints about irresponsible alcohol marketing and promotions.”

Each appointment is for a fixed term of three years with the option to carry on for a second three-year term.  The posts were advertised publicly for the first time and attracted a strong field of applicants from the drinks and marketing sectors. 

Source: Portman Group

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Fuel cost rises will hurt small retailers and wholesalers, says FWD | Industry News | TalkingRetail.com

The Federation of Wholesale Distributors (FWD) is urging Chancellor George Osborne to scrap the increase in fuel duty planned for next week’s Budget and is backing Labour’s call for a reduction of the VAT on petrol and diesel.

FWD member companies supply hundreds of thousands of small retail and catering businesses through a network of delivery vehicles and cash and carry depots, and believe that further rises in the cost of fuel will impose a disproportionate burden on both wholesalers and their customers.

Chief executive James Bielby said:“Raising duty above inflation will create further challenges for the businesses we supply, many of which are already operating on tight margins, and we have asked the Government to listen to the many voices which are calling for a halt to the planned duty rise.

“Mounting distribution costs would disadvantage independently-run local stores at a time when consumers are looking to reduce their own fuel consumption and can’t afford to make the long journey to out-of-town supermarkets.”

Bielby welcomed shadow chancellor Ed Balls’ call for a reversal of last year’s VAT increase on fuel. He said: “Cutting the cost of distributing food and drink and other essentials into the heart of towns and villages is absolutely the right move for a Government that believes in the value of strong communities.

“Our members have made effective efforts to cut their fuel consumption by using highly efficient vehicles, educating drivers, planning optimum journey routes and minimising road miles, and rises in VAT and duty are simply a tax grab which does not recognise the environmental benefits these measures have brought.”

Source: The Federation of Wholesale Distributors (FWD)

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Waitrose opens its second shop in Jersey | Industry News | TalkingRetail.com

The second of three Waitrose branches in Jersey has opened for business in St Helier.

Over the past four weeks, the branch has received a brand new look and staff have undergone training in preparation for opening.

Constable of St Helier, Simon Crowcroft, officially opened the shop located on La Vallée Des Vaux, St Helier, which comes a month after the opening of the supermarket’s first Jersey branch in St Saviour.

Waitrose St Saviour has had a“very successful” first few weeks of trading with sales exceeding the retailer’s expectations, and it is hoped that the St Helier branch will follow in its footsteps.

The St Helier shop occupies approximately 16,000 sq ft and is located in an“ideal spot” for many town workers in and around the area. The shop offers fresh meat, cheese and deli counters. It also has a range of options for lunch on the go or in the office including salads, sandwiches, snacks and ‘Made in Branch’ baguettes.

Graham Heald, director of Waitrose Jersey, said:“This is a very exciting time for us. We have been overwhelmed by the response we’ve had so far from shoppers in Jersey and hope that Waitrose St Helier will receive and equally warm welcome.”

As part of Waitrose’s ongoing commitment to the community, Waitrose St Helier will donate £12,000 to good causes and charities this year through its ‘Community Matters’ scheme. Here £1,000 will be allocated between three charities each month, as voted for by shoppers. For the first month, Headway, The Animal Shelter and Janvrin Primary School are the three local community causes will benefit.

Source: Waitrose

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Consumer spending down 7.1% in February | Industry News | TalkingRetail.com

Consumer spending on the high street fell in February as consumers started to slow their spending down, according to the latest figures from the Barclaycard Spending Index.

The amount spent on credit and debit cards, in-store and online, fell by 7.1% in February compared to the previous month. 

However, against a backdrop of market pessimism, Barclaycard data shows that the 2011 outlook for retailers remains encouraging with year-on-year figures showing February 2011 spending up 10.8% compared to February 2010.

Richard Armstrong, head of Barclaycard UK Payment Acceptance, said:“February is traditionally a quieter month for the high street as consumers take a breather, following Christmas and the January sales. 2011 looks set to be a reasonable year for retailers with the next spending boosts set to come from the Easter holidays and the Royal Wedding bank holiday.” 

The Barclaycard Spending Index is based on spending on all credit and debit cards process by Barclaycard Global Payment Acceptance, across 44 retail sectors. 

Barclaycard Global Payment Acceptance processes credit and debit card payments for 87,000 businesses in the UK, around 30% of the UK market. 

Source: Barclaycard

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Palmer and Harvey receives health and safety award | Industry News | TalkingRetail.com

Wholesaler Palmer and Harvey has been awarded a Gold Medal award for its standards of occupational health and safety throughout its business by the Royal Society for the Prevention of Accidents (RoSPA).

Palmer and Harvey’s achievement in the RoSPA Occupational Health and Safety Awards 2011 is also the ninth consecutive Gold Medal award it has been presented by the society.  

RoSPA assesses organisations against key performance questions designed to test their overall approach to managing occupational health and safety, including the commitment of directors and senior managers to safety management, how effectively a company involves its workforce in managing health and safety issues and whether occupational health and safety is integrated effectively into business planning processes.

Palmer and Harvey was commended for its day-to-day control of health and safety, which rests with its Group Compliance& Safety Department. The department is responsible for the writing and introduction of health and safety procedures and for ensuring Palmer and Harvey employees have access to competent advice and services relating to occupational health and safety.

Each distribution centre has a local compliance and safety manager, as part of the management team, who ensure all local occupational health and safety issues are addressed. Health and safety and risk assessment forms an integral part of the planning process for new sites and acquisitions. Planning for occupational health and safety is also integrated into Palmer and Harvey’s annual business plan.

In 2010, initiatives in relation to manual handling and driver safety, including the production of an in-house DVD, have seen a reduction in accidents in these areas.

Chris Etherington, chief executive at Palmer and Harvey, said:“Our employees are the heartbeat of our organisation – it is our first and last concern that we provide them with the appropriate systems and the right environment for them to set and deliver to the highest standards for our customers.

“Health and safety procedures and training play a vital role to Palmer and Harvey’s success. All employees undertake a full induction programme at commencement of employment. Our high standards start with our management and extend to all employees and contractors, and are there to consistently ensure Palmer and Harvey’s business fulfils its ongoing commitment to occupational health and safety.” 

Source: Palmer and Harvey

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Tesco donates£50,000 to Japanese earthquake victims | Industry News | TalkingRetail.com

The Tesco Charity Trust has donated£50,000, through its disaster relief partnership with the British Red Cross, to humanitarian efforts to help alleviate suffering caused by last week’s Japanese earthquake.

The money will be used by the Japanese Red Cross locally.

Lucy Neville-Rolfe, executive director of Tesco, said:“This is a terrible tragedy and our thoughts are with the people of Japan at this difficult time. Happily our staff and stores in Japan have been relatively unaffected, but many have friends or relatives in the affected regions and we share their sorrow.”

Tesco’s partnership with the British Red Cross was established in 2009 to ensure the retailer can respond to crises around the world quickly and mobilise the resources of our business in the “most effective way”

Source: Tesco.

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Poundland wins best management award | Industry News | TalkingRetail.com

Discount retailer Poundland is celebrating an award for The Buyout Track 100 Best Management Team. This is the second award they have won in as many weeks, after winning a Fresh PR Award for its corporate PR.

Chairman Colin Smith, finance director Nick Hateley and retail director Tim McDonnell collected the accolade on behalf of the Poundland team at the Jumeirah Carlton Tower Hotel in central London, which was presented to them by Mansur Khawar from Skillcapital.

Over the past two years Poundland’s management team has doubled profits to over £30m EBITDA and last year led the reported £200m buyout by Warburg Pincus. These two key successes were the reason for the award.

Jim McCarthy, Poundland’s CEO, said: “It has been another great year for Poundland and we’re proud and thrilled to receive this industry recognition for our success, as the award highlights the dedication and commitment of the entire team across all areas of the business.”

Source: Poundland

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Spar appoints Debbie Robinson as new MD | Independent News | TalkingRetail.com

Debbie Robinson has been appointed the new managing director of Spar UK and will be joining at the end of the summer.

Spar chairman Peter Blakemore said:“We are delighted that Debbie is joining the Spar organisation. She brings with her a wealth of retail experience and her passion and knowledge will be invaluable to our business.”

Debbie Robinson will be based from Spar’s central office in Harrow. In her previous role as director of food marketing at the Co-operative Group, she developed formats including layout, space allocation, merchandising and design for petrol forecourts, convenience stores and supermarkets.

She was also general manager for brand and retail, responsible for all store locational and acquisition strategies, format designs and ranging.

Robinson also developed the Co-operative’s “good with food” campaign, including TV, radio and press communications.

Robinson said:“I am delighted to be taking on this role; Spar is a fantastic business with a regional structure that is ideally suited to today’s customer needs.  My priority will be to continue to drive the Spar brand forward increasing its relevance with customers and developing the offer to drive sales and profit.”

Current managing director Jerry Marwood said:“This is a fantastic hire for Spar Debbie’s appointment is in line with the further development of Spar. Our retail estate is growing and our Spar retailers are positive about their prospects and still continue to invest locally. I am very confident that Debbie will be an excellent contributor to the business.”

Spar retail sales for the nine months to the end of January have been“solid” but the organisation says the economic climate is still challenging with more and more competition coming into the convenience sector, and this will continue well into 2012.

Retail sales for the organisation rose by 1.66% year-on-year to 31 January 2011. The increase has come as retailers are focusing on increasing the value and volume of promotions on offer to their customers and ensuring that customers are able to get“better-than-ever value closer to home”. 

Spar is also reporting that sales of its own-brand range have risen considerably, delivering greater value to customers.  Own-brand sales rose by 3.85% year-on-year with a particular strong performance in the sales of fresh foods which has risen by 6.59%.

Source: Spar

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Sainsbury’s opens first-ever Local store in Blackpool | Industry News | TalkingRetail.com

The first Sainsbury’s Local store in Blackpool has opened in Whitegate Drive and will boost local employment as 22 new jobs are created in the area.

The new 2,700 sq ft store will offer fresh produce, from fruit and vegetables to meat and fish, as well as a range of frozen food, dry goods, ready-made sandwiches and snacks. In addition to its bakery, the store will also stock fresh flowers, wine and newspapers.

Members of the George Formby Society were on hand to mark the launch when they join the Whitegate Drive store’s new Local Charity Partner at the official opening. Members of Donna’s Dream House, a charity that helps children with serious illnesses experience holidays, cut the ribbon alongside the store’s 22 new colleagues.

Store manager Richard Hayes said:“How fantastic to be joined by our new charity partner and have members from the George Formby Society serenade us as we launch our new store. I’m very proud to be opening a store that will have strong links with the area, from providing local employment to helping support local charities.”

Source: Sainsbury’s

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Asda poised for‘biggest year of growth’ through store openings | Industry News | TalkingRetail.com

Asda expects to open 168 stores this year, adding 1.8m sq ft of retail food space, in what it describes as“the largest single year of growth in its history”.

The additional space is a combination of planned organic growth and the acquisition of 147 Netto stores. The converted Netto stores will all trade under the Asda Supermarkets banner and will average 8,000sq ft in size.

Asda said all its customers would also benefit from its“national low-price policy”, which means prices do not differ from one store to the next, regardless of their size, format or location.

In addition to the 147 Netto conversions, Asda will also add a further 550,000sq ft of space organically, including the opening of seven new Asda Superstores, four new Asda Livings, 10 new Asda supermarkets and five extensions to existing Asda stores.

Last week, Asda entered into a contract to acquire six stores from Focus DIY, which, subject to landlord’s approvals and appropriate local planning consents, will be converted into AsdasSupermarkets.

Judith McKenna, Asda chief financial officer, said:“The combination of acquiring 147 Netto stores together with our organic growth plans means we will be able to save customers more money than ever before.”

In total Asda is investing more than£100m in capital converting the stores, helping create hundreds more jobs for its building and shop-fitting contractors. The first converted Netto stores – in Worksop, Wakefield and Stainforth – will open in May.

Source: Asda

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CTN World remains at Ricoh Arena for the second year | Independent News | TalkingRetail.com

The National Federation of Retail Newsagents (NFRN) has announced that CTN World is to remain at the Ricoh Arena, Coventry, for the second year.

In line with last year the show will run for two days, taking place on Sunday 20 and Monday 21 November 2011.

Last year’s relocation proved popular, attracting large numbers of visitors from Coventry, Birmingham and surrounding areas and as far afield as Glasgow, Edinburgh, Bristol and Plymouth.

Graeme Collins, NFRN head of marketing, said:“The fact the Ricoh move worked so well, attracting more than 80 different companies, many of whom were exhibiting with us for the first time, is a source of great encouragement.

“Even at this early stage, some nine months out, we are well ahead of the same time last year in terms of bookings and we’ve already had a number of very positive conversations with many of last year’s exhibitors all looking to re-book for 2011.”

Amongst those companies who have already declared their support for 2011 are Booker, Cadbury, Mars, Payzone, Second Nature, Trinity Mirror and the Utility Savings Corporation.

Source:NFRN

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Sales suffer as cautious customers cut back | Industry News | TalkingRetail.com

UK retail sales values were down 0.4% on a like-for-like basis from February 2010, when sales had risen 2.2%, according to the latest British Retail Consortium (BRC) report.

On a total basis, sales were 1.1% higher, against a 4.5% increase in February 2010.

Food sales picked up after a weaker January but non-food sales slowed sharply. Consumers’ underlying uncertainty about jobs and incomes resurfaced, hitting clothing, footwear and homewares. Big-ticket purchases suffered most and were often promotion-led.

Stephen Robertson, BRC director general, said:“Apart from a bit of help from half-term for some retailers, February’s sales were weak. Other than the negative figures last April (caused by the year-to-year movement of Easter), this February’s 1.1% total sales growth is the poorest since May 2009– even poorer when the impact of the VAT rise on inflation is taken into account.  

“After the big boost to January’s figures from one-off factors, including a strong final burst of pre-VAT rise spending, February’s figures are a return to a more realistic picture of how things are for customers and retailers.  

“Against this background of deteriorating sales, the BRC has written to the Chancellor urging him to use his Budget to support retail’s essential contribution to jobs and growth by avoiding new burdens and removing existing ones.”

Source: BRC

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Oddbins looks for new store backer | Industry News | TalkingRetail.com

Off-Licence chain Oddbins is in search of a new backer to secure the future of its 128 wine shops, according to The Sunday Times.

It said it has held“encouraging discussions” with interested parties.

The retailer is working with Spectrum Corporate Finance on a strategic review, the outcome of which could be revealed this week.

Source: The Sunday Times

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Tesco extends Fresh& Easy convenience stores to northern California | Industry News | TalkingRetail.com

Tesco is expanding its Fresh& Easy convenience store chain in the US by opening its first outlets in northern California.

Fruitnet.com reports Tesco plans to open 10 Fresh& Easy Neighborhood Markets in the region, starting with stores in San Jose and Danville, a suburb of San Francisco.

Last October, said the report, Tesco closed 13 stores, mainly in Arizona and Nevada, which have been hit hard by the recent property crash and ensuing recession.

Tesco has previously said it expected Fresh& Easy to break even by 2012/13.

Source: Fruitnet.com

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ACS launches 2011 Achievement Award | Independent News | TalkingRetail.com

The Association of Convenience Stores (ACS) is calling on the retail industry’s rising stars to compete for the 2011 Achievement Award and the opportunity to be mentored by two of the biggest names in the sector.

This year’s Achievement Award has been transformed into six months of indispensable career development. The winners, one from a supplier and one from retail, will receive the following as part of their prize:

• Exclusive mentoring from Co-operative food retail chief executive Tim Hurrell and Mars Chocolate UK president Fiona Dawson.
• A two-day course on Shopper Engagement donated by food and grocery industry experts IGD. 
• Representing the UK and competing for the Global Convenience Industry Achievement Award at the NACS Show in Chicago, Illinois.
• Places at ACS Summit12 and the exclusive ACS Director’s Debate.

ACS chief executive, James Lowman, said:“We’ve taken the Achievement Award competition to a new level by incorporating a whole development package into the prize. The winner will spend time with the industry’s biggest hitters and take part in the most influential events in the sector, jumpstarting their career with a series of money-can’t-buy benefits.”

The award is open to anyone aged 21 to 36 in the sector. The first stage of applications closes on 20 May 2011 and the eventual winners will be announced in August.

Participants can enter online atwww.acs.org.uk/achievementaward

Source: Association of Convenience Stores (ACS)

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Camelot on target to hit record National Lottery sales | Industry News | TalkingRetail.com

National Lottery operator Camelot is set to achieve record ticket sales for the 2010/11 financial year.

Total National Lottery sales have increased by 17.9% since the start of the second lottery licence in 2002– and the number of players has grown by more than 5% in the last five years.

For the year ending 31 March 2011, Camelot is projecting that sales will hit£5.7bn – breaking the previous record of £5.5bn set in 1997/98.

The forecast follows Camelot achieving its“best-ever year-to-date performance” at the end of Quarter 3 (31 December 2010), which, at more than £4.2bn, is also the highest-ever sales figure for any three consecutive quarters.

Good Causes and National Lottery players are expected to share a record-breaking£4.4bn. Direct returns to the Good Causes in 2010/11 are set to be over £1.5bn, while returns to players, in the form of prize money, are expected to top £2.9bn.

To date, National Lottery players have helped to raise over£25bn for the Good Causes, with 350,000 individual awards having been made across the UK, and over £37.5bn has been paid out in prizes, with more than 2,500 millionaires created in the process.

May 2010’s launch of a new-look Thunderball game, with a bigger top prize of £500,000 and a new prize tier, was followed by two special UK Millionaire Super Raffles, which built on the popularity of the EuroMillions UK Millionaire Raffle game. The first of these took place in November and created 10 UK millionaires in one night, while the second, which took place on Christmas Eve, created 25 millionaires throughout the UK – breaking the previous world record for the largest number of lottery millionaires created in a single evening.

Last month, Camelot launched Lotto Plus 5, the biggest addition to Lotto in years, which has already created hundreds of thousands of winners.

The company has also enhanced its range of instant play games, with the launch of over 60 new Scratchcards and online Instant Win games, including the introduction of more 3D games and different play-styles. Camelot is predicting that it will have increased sales of draw-based games by around 3.5% and instant play games by 7% during 2010/11.

From small corner shops and convenience stores to petrol forecourts and supermarkets, retail remains the largest National Lottery sales channel– and, despite challenging high street conditions, is set to grow by a further 3%.

Camelot has continued to drive sales in-store in 2010/11 through its on-going comprehensive programme of support for its retail partners.

Camelot has also increased ticket sales through the continued development of its interactive services– and is forecasting growth of around 12% from these channels in 2010/11.

With over six million people registered to play, the company operates the biggest online lottery in the world, with its website–www.national-lottery.co.uk– one of the top e-commerce sites in the UK by monthly visits.

As well as continuing to refresh its portfolio of online Instant Win games, the company has launched the free National Lottery Official App for iPhone– giving players an easy way to check the latest results on the move, as well as locate their nearest National Lottery outlets.

Source: Camelot

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Supermarket own-label puts‘increasing pressure’ on the big brands, says new research | Industry News | TalkingRetail.com

The big brands on supermarket shelves are under“increasing pressure” as consumers are choosing own-label consumer packaged goods even when finances are not so tight, according to research by market analyst Datamonitor.

In fact, more than two-thirds of people believe own-brand foods are as good as, if not better than, leading famous brands: 50% think they are identical in quality and 19% go so far as to say that they are superior.

Research by the independent market analyst has revealed consumers are so impressed with the store brands offered by supermarkets that nearly half (46%) are choosing where to shop based on where we can buy our favourite own-brand products.

Sales of own-label increased as a result of the recession, when consumers were looking for ways to reduce their spend on groceries. However, many have since found the products to be very credible alternatives, and as a result have continued this buying behaviour.

Mark Whalley, an analyst at Datamonitor, said:“Private label is no longer about offering consumers the cheapest product; instead it is about offering value. Consumers won’t just buy the lowest-priced item on the shelf – they’re looking for products that deliver on their promises and exceed expectations; and this is something that private labels have been very successful in doing.”

Datamonitor believes with high levels of satisfaction regarding private labels, national brands face a significant challenge to try to win customers back, even as the economy improves over the next five years.

Whalley said:“Although famous-name brands still dominate the market in consumer packaged goods, they need to consider private labels as serious competition both now and in the future.

“Consumer perceptions are evolving and no longer is there an overwhelmingly‘snobbish’ mentality towards supermarket brands. With the amount consumers spend on private labels set to increase, competition is expected to rise at an unprecedented rate as brands work hard to differentiate their products from private labels.”

Source: Datamonitor

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CitizenCard launches‘most secure’ ID card | Industry News | TalkingRetail.com

CitizenCard, the UK’s largest ID and proof-of-age card scheme, today (Wednesday) launches its “most secure card to date”. 

The card retains the PASS (Proof of Age Standards Scheme) hologram and a customised holographic overlay has been added across the front of the card. UV (ultraviolet) marks also appear on both sides of the card.

Existing cardholders will be contacted to advise them to upgrade to the new card at a heavily discounted cost of£6 (against the standard card cost of £15).  Existing cards remain valid ID and a new ‘100% Proof’ marketing campaign will reassure pub and club operators that the new card is completely trustworthy. 

A promotional pack and UV torches will be sent to pub and club operators and to every police officer responsible for liquor licensing in the UK.

Andrew Chevis, CitizenCard chief executive officer, said the new card should“remove all doubt” about whether a cardholder is over 18

“The verification checks we carry out before a card is issued are extremely rigorous– 14% of applicants do not receive a card.  The clear message to those checking ID is that CitizenCard is 100% proof.”

New cardholders will benefit from access to CitizenCard’s new ‘Lealta’ discount programme.  AA, Alton Towers, Apple, Asda, Bella Italia, Bhs, Boots, Burton, Comet, Currys, Debenhams, Dorothy Perkins, Halfords, HMV, Marks& Spencer, PC World, Pizza Hut, River Island, Thorpe Park, Top Shop, Virgin, Wallis, WH Smith are just some of more than 200 national brands to offer cardholders discounts of between 4% and 90%.   A further 20,000 local cinema, fast food, bowling and retail outlets are offering discounts.

Chevis said:“We felt that a decent set of discounts would be good news for our cardholders in these tough times – and generating extra business for the discount providers.  Many cardholders will save hundreds of pounds a year and it is likely that the cost of getting a card will be recouped the very firsttime that a cardholder uses Lealta.”

Source: CitizenCard

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Sainsbury’s opens new local store in Nottingham and creates 30 jobs | Industry News | TalkingRetail.com

Sainsbury’s has opened its newest store in Nottingham, creating 30 jobs and making a“real difference” to a local charity.

The Wheelergate Local store was officially opened by a representative from the Nottinghamshire branch of The Huntington’s Disease Association, which has been selected as the store’s local charity partner of the year. To mark the occasion, the store will donate£500 to pay for two of the charity’s annual trips.

Kirstine McDaniel, chairperson for Nottinghamshire branch of the charity, said:“Huntington’s Disease can be quite an isolating illness, so social events are an important part of what we do. The donation from Sainsbury’s will help us take HDA-sufferers and their carers on two trips this year, which will mean a great deal to those families. We’re always looking for support, and we’re thrilled to have been chosen as Sainsbury’s local charity partner this year.”

The new 2,250 sq ft store includes a bakery, fresh fruit and vegetables, as well as a wide range of fresh sandwiches alongside high quality ready meals. Five self-scan tills have also been installed to meet customers’ needs for a speedy shop. On hand to help will be 40 colleagues, including 31 new recruits taken on from the local area.

Source: Sainsbury’s

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Tesco announces China property joint venture | Industry News | TalkingRetail.com

Tesco has signed an agreement to set up a joint venture to develop shopping malls in China, according to financial website investegate. 

50% of the joint venture will be owned by a consortium of leading Asian investors including Singapore’s Metro Holdings. The total value of the project is in the region of£170m with Tesco and the joint venture consortium each investing approximately £30m of equity. Debt will be provided by banks including the Industrial and Commercial Bank of China and Standard Chartered Bank.

This joint venture will comprise of three shopping malls in Shenyang, Xiamen and Fuzhou, each of which includes a Tesco hypermarket as an anchor tenant.

The Lifespace shopping malls are part of Tesco’s long-term strategy to invest in building a substantial business in China. Tesco currently operates four Lifespace malls and 93 Tesco hypermarkets in China.

Source: investegate

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