nickshanagher

There is a lot of talk about growth and the convenience channel and it was no different at the Local Shop Summit in Torquay earlier this month. With more than 200 retailers in the audience, John Kinney, retail director of Today’s, asked a simple question: Who was in growth? The answer on the electronic pads was 42%. As industry figures show that more people are shopping more frequently in local shops - and experts say more than £10 billion in extra sales will be in the convenience channel by 2018 - where is the growth? Principally in supermarket stores and in symbol groups, says Kinney. Why? Because the biggest area of convenience is top up shopping and this plays to the supermarket operators’ strengths. What he did not say is that much of that £10 billion is not new money but simply the transfer of sales from a Tesco out of town to a Tesco in a high street. What is encouraging for independents, particularly those in symbol groups, is that they are winning sales from thes...

David Hockney tells a story about a great European portrait that was presented to the Empress of China. In Europe, artists like Caravaggio painted shadows. In China, Japan, Pakistan and India, the artists did not. Looking at the picture, the empress said: "I can assure you, my face is the same colour on both sides." While David Hockney uses this story to promote his idea that cameras were used as technical tools to support great art by the old masters, it is useful to consider what it tells you about gifts and how you receive them. Hard pressed local retailers considering the gift of strategic insight from suppliers often don't get it. The suppliers leave frustrated at the "independence" of the retailer. The retailer perhaps scratches his or her head. Booker this year handed out an excellent guide called "5 Steps to great retailing". I have been meaning to blog about it for a long time. (It would be interesting to hear from anyone who has used ...

Generally acknowledged to be doing well, there are three things in the latest Waitrose results to consider. First, like-for-like sales were up by 2.2 per cent, which shows the impact of its price matching branded goods sold by Tesco. Second, own brand ranges now account for more than 50 per cent of its sales mix, which suggests that its margin mix is being protected by these products. Third, the second half of the year is likely to see slower growth.

Some back of a fag packet analysis of the IGD's latest sales figures suggest that the average symbol group shop operating in the UK will turnover £14,862 a week this year, up 6 per cent. For the average non-affiliated independent shop the turnover is expected to rise 2 per cent to £6,454. Combining the two estimates gives you a proxy for the average independent local store of £10,213, up 5.9 per cent. The IGD estimates show that both forecourts and co-operative outlets are losing market share in the £32.4 billion market. While multiples are increasing share by 8.1 per cent, symbol groups still top the chart with 9.2 per cent growth. The independent sector grew sales by £953 million - in cash terms two-and-a-half times more than the c-stores owned by multiple grocers.

It is a tricky business to keep on top of what the numbers of stores belonging to each symbol group mean. At one level, it could mean that head offices are able to negotiate better deals because they have more shops taking part in promotions. At another, it could mean that more local retailers are choosing one group over another as it is delivering more to their bottom lines. It could be fashion. It could be an exercise in badging for vanity. However, now that the IGD has updated its annual figures, Booker's Premier symbol group has overtaken Spar UK to top the chart with a 15.9 per cent of outlet numbers versus 15.7 per cent. Bestway takes third spot with a Best-one/Best-in share of 13.8 per cent, followed by Lifestyle from Landmark at 12.9 per cent. Londis has dropped to an 11.0 per cent share and Costcutter to a 9.5 per cent share. Mace has grown to a 5.3 per cent share and Nisa to a 4.8 per cent share. Overall, there are 16,288 symbol group stores, up 2.9 per cent on the ...

Demographics suggest that as people get older and as households get smaller, then local convenience stores will prove more attractive for more shoppers. On the surface this is good news for local shops but don’t kid yourself that the multiple grocers have not got designs on this sector. Authoritative figures from the Institute of Grocery Distribution released earlier this month show that the convenience market is growing faster than the grocery market, up 6.3 per cent in the past year to £30.9 billion. Better news, the IGD says it will grow strongly over the next five years to £41.2bn in 2015. A good market to be in. Yes, says Tesco, which is adding 521,000 square feet of selling space in the convenience channel this year in 213 locations and expecting to grab just under £640 million of extra sales. With Waitrose and Sainsbury also active in providing “convenience options”, how much of this £10 billion growth in the next five years will be available to you? That depends on how se...

Two quick stories on achievement. Don Fisher, who died this week, founded Gap in San Franciso, with his wife Doris, because he had an idea that he could make it easier to buy a pair of jeans. It was 1969 and he was 41 and his business went from one shop to 3,100 and sales of $14.5bn. In addition to having a neat idea, he also hired some great people. Will Adderley, whose parents set up what has become Dunelm, the 97 outlet and growing soft furniture chain, says his company is successful because it retains the values of a small business: cost control, tight recruitment and a focus on the core customer. Dunelm is 10 years younger than Gap but is now being talked about as a competitor to John Lewis. It may be that our businesses will never grow like these but we need to take inspiration from the success of these family businesses. When you get up every morning, be optimistic and think about how you will make your business work better for your shoppers.