INDEPENDENT

AND CONVENIENCE UPDATE JUNE 2012 Strong symbol group growth drives convenience store numbers upwards The convenience store sector has been growing faster than the overall grocery market in value terms for several years,
but the n umber of outlets has been in gradual decline as large n umbers of unaffiliated independent retailers have dropped out of the market while multiple and co-operative operators have increased their presence.

But new data from the 2012 Grocery Retail Structure shows that the total number of outlets defined as convenience stores increased by 0.6% in the year to March 31, u p from 41,031 to 41,291. The number of unaffiliated independent retailers has declined once again - down b y 4.5% in the past year to 19,237 - but this net drop has been largely offset by the continuing growth in symbol group numbers, which h ave increased by 5.23% to hit a record high of 16,407. Every major symbol group except Spar increased its membership in the past year, with Best-one overtaking Spar to be number two in the market b y store numbers with 2,511 outlets, second only to Bookers Premier with 2,700. Multiple-operated convenience stores maintained the growth of recent years, up b y 7.82% to 3,046. Tesco achieved a net opening rate of almost three new c-stores per week, with Sainsbury opening more than one n ew store a week as well. The co-op sector, fuelled by acquisitions, also grew last year, u p by 5.26% to 2,601. The number of forecourt retail sites fell from 8,763 to 8, 586 and there was also continued decline in the number of specialist CTN and off licence outlets. Total number of outlets Multiples Co-ops Symbols Unaffiliated Indies Mission management and social media are the 2011 2,825 2.471 15,592 20,143 2012 3,046 2,601 16,407 19,237 % +7.82 +5.26% +5.23% -4.5%

future, says HIM

Booker swoops to buy up beleaguered Makro

The deal increases the Booker estate to 202 outlets (+30), gives access to the Makro customer base of small and medium sized business enterprises (hairdressers, accountants, builders merchants), and their wider range of 29,000 lines (vs. 8,500 in the average Booker). Source: Grocer 30th May 2012

Convenience stores need to focus on mission management and increasing their online presence, according to HIM client director Tara Benjamin.

Category management is dead. She cited HIM research which

revealed that 79% of shoppers would find it useful to have commonly purchased products merchandised together. In addition, 58% of shoppers said this store could improve on mission management.

She also urged retailers to engage online, especially given that two- thirds of shoppers have smartphones or use Facebook and Twitter. In contrast, only 19% of retailers have a website. The smartphone is the fastest adopted technology since TV, she added. She highlighted the importance of community involvement, which she said can drive loyalty and footfall. Two-thirds of shoppers want to support local retailers but it takes commitment and full immersion, she said.

Source: C-Stores Convenience Performance Seminar M ay 2012

INDEPENDENT AND CONVENIENCE UPDATE JUNE 2012 Costcutter unveils new-look white fascia Costcutter has unveiled the first c-store to carry its new-look fascia. A company-owned outlet in Guiseley, West Yorkshire, is the first store to carry the latest version of the symbol groups livery for mid-tier stores, designed to have a cleaner and fresher feel externally and updated interior graphics. Costcutter marketing director Ian Bishop said: Costcutter is proud to be local and one of the innovations on the new fascia is the provision for retailers to display an individual customer promise. This gives a truly local feel to the store and shows the great pride our retailers have in their store. The new look format retains the brand DNA that has seen Costcutter become one of the most respected convenience retail businesses, whilst creating a new look and feel that ensures we deliver a high quality store environment for retailers and customers. A second example of the new format, and the first to be operated by an independent retailer, will be completed at Amrik Sohals store in M ansfield, Nottinghamshire, next week. The symbol group opened its first outlet in the Kwiksave format earlier this month at Bhav Parekhs store in Little Lever, Bolton, and the first premium myCostcutter store is expected to open in Northern Ireland in June. nd Source: Convenience Store 22 May 2012 One Stop eyes Post Office Local roll out Post Office Ltd is considering a request from Tesco to install its new Post Office Local model in all 617 Tesco-owned One Stop stores. The model is currently in 25 One Stop outlets, more than any other multiple operator. The Local offering is currently being trialled in 166 stores and will be rolled out to 2,000 branches over the next three years. It enables retailers to offer Post Office services through the main sales till rather than at a separate counter, allowing for longer opening hours and easier service. Operators can receive payments of up to 10,000 from the Post Office Ltd to fund the changeover. However the Local model has attracted criticism over safety and quality of service. Mike OConnor, chief executive at industry watchdog Consumer Focus, said problems had been reported with the new model. A third of people told us that privacy was p oor in PO Locals, with 19% reluctant to conduct high-value or confidential transactions. Source: Convenience Store 25th May 2012 SO WHAT SHOULD WE DO?
1. Review call files to focus on the growth sector of Symbols within the Convenience market 2. Continue to make retailers aware of the benefits that online engagement and community involvement can bring to their businesses 3. Watch out that the acquisition of Makro does not have a detrimental effect on the ranging of our clients products in Booker as they look to exploit the Foodservice and fresh food capabilities of Makro 4. Explore how our car sales teams can draw stock from the additional Makro sites which provide strong representation in key metropolitan areas where Booker remain under-represented