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Local shops: good at selling problem categories!

In today's FT John Gapper reviews the setbacks to David Cameron's attempts to curb binge drinking and Michael Bloomberg's attempts to curb obesity, with his ban on large servings of soft drinks being overturned by the courts. Mr Gapper argues that governments should adopt the lightest measures possible to address such social ills and draws the comparison with tobacco, where rumours are swirling that Mr Cameron may be planning to introduce plain packaging. Convenience stores are in the uncomfortable position of selling all three products, mostly responsibly. They account for a big proportion of sales and are important profit centres. Society (and politicians) also fail to see the great benefit of a responsible local supply chain. For c-stores in poorer communities the threat of political action is much greater and Mr Gapper addresses this. What he does not address is where poor shoppers will go to buy their alcohol, sugary drinks and tobacco when the politicians impos...

A short note on alcohol

A successful off licence depends on pricing and range. Most customers will want to buy one or two bottles of wine so it is important to get the pricing of single bottle correct. After a gap of perhaps eight months I revisited Roli Ranger's Ascot Londis store last week. The wine section looked pretty good. Roli told me what had changed - a big new chiller section. I think his promotions were pretty good too. A floor display in an attractive wicker basket helped to give the section authority. While not every retailer will be in a location that can display £30 plus bottles, I think this is a neat touch as it helps shoppers to think about spending more. It works similarly to the really expensive item on a restaurant menu, nudging people to trade up.

Tim Martin talks sense

The FT's View from the top column (see its website www.ft.com/video ) features Tim Martin, the chairman of JD Wetherspoon, the pub chain that he set up in north London 30 years ago and which now has more thatn 800 outlets. It is a great read. Good questions and good answers. For example. Q: The price of a pint at a UK pub has risen by aobut £1 in a decade, well above inflation. What's going on? A: The government perceives there is a binge drinking problem in Britain and to an extent that's right, and its approach has been to attack pubs. So it has piled on the regulations, the penalties and the tax. Local shopkeepers will recognise the sentiment. Q: to attract more customers, some pubs are opening libraries or bringing in post office services. Is that the future? A: Libraries and post offices are in the realms of fantasy: [innovation] has to be linked closely to the core business of eating and drinking. We open for breakfasts, which had been in the realms of fanta...

Risks of minimum pricing fall mainly on local shops

This week's Scottish government proposal for a minimum price for alcohol of 45p a unit is likely to unleash a new wave of legislation as politicians around the world vie for credit in saving lives. The impact of regulatory interference will change the dynamics of local shops. If the proposal goes ahead, the Scottish government expects that retailers will gain an extra £90 million plus a year in revenues. What it does not know is whether this will stick with the retailer or by grabbed by the manufacturer. Its assumptions also assume that people will continue to buy alcohol in the usual places. However, from the world of tobacco, retailers can see several issues that the Scottish government ignores. Firstly, by creating an articificial price for a product, legislators create a business opportunity for people who work outside the law. The bigger the differential, the bigger the opportunity. At 45p, the politicians think they might reduce consumption by 4.7 per cent. However, the...

Sticks and stones do hurt

My 17 year-old son returned from a rock festival this week wearing a wristband proudly declaring him 0ver 18. He explained how easy it had been to use someone else's ID to get the identification and said it was ironic that he had not needed to show the over 18 band when buying alcohol. Today, Scottish retailer Abdul Qadar is complaining that public authorities are asking people to lie about their age when making test purchases. What trading standards officers may be forgetting is that the fact that retailers invest in a business premises and trade consistently from it make their job much, much easier. The alternative, a world of markets and itinerant traders, will be far harder to police. Mr Qadar's sense of injustice is fair. Those retailers, like Mr Qadar, who value their investment will seek to trade legally and will not sell alcohol to people under the age of 18. Asking children to lie about their age to local traders is a slander on all retailers.