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The Voice of Independent Retailers

We have a winner!

Dave Wyatt

Cup of Joe

Hot beverages

Pay rates

Through the roof?

4th October to 17th October 2024

Volume 36 No. 952

Going green

And loving it!

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Starmer vows to get

tough on retail crime

In-store Services

and Deliveries

Sustainability

In-store Services

and Deliveries

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4 NEWS

Leader: Red letter day

Starmer vows to get tough on retail crime

Post Office chief executive Nick Read steps

down

Junk food ads to be banned on daytime TV

EU calls for outdoor smoking, vaping bans

C-stores welcome new training programme for

neighbourhood police

Mohsin Issa steps down from Asda leadership

role

Lenders agree to set up ‘banking hubs’ after

mass closures

Government scraps ‘Not for EU’ sticker plan for

British food

Guest column: Making vodka work harder for

you

Guest column: Embracing sustainability - a

crucial step for indies

9 WORLD OF WHOLESALE

A regular round-up of news and views in the

wholesale sector

10 NEWS FEATURE: Fair

wages versus survival

In the c-channel, both stores and wholesalers

are bracing themselves for tough decisions to

balance expected rise in payroll expenses

12 RETAIL CORNER: Raising

the benchmark

Pooja Shrivastava finds a store that is changing

the definition of convenience retail with its bold

innovations

13 “NOT” TWITTER

The best observations and comments from

retailers (and friends) on the ground

14 AWARD-WINNER

INTERVIEW: More than just

symbolic value

David Wyatt, winner of the Symbol Retailer of the

Year, explains how a major refit, great staff and

a store-within-a-store spells success

17 FEATURE: HOT

BEVERAGES & BEVERAGES

TO GO

Consumer expectations for taste and quality

continue to grow more sophisticated, and the

category is rising to the challenge

24 MUST STOCK

The latest product news

29 FEATURE: IN-STORE

SERVICES & DELIVERY

As the channel evolves further, the services it

offers – to help both retailers and consumers

– are making the neighbourhood store an all-in-

one solution

36 SUSTAINABILITY

“Conscious consumerism” is here to stay, so it’s

best to get attuned and master this sustainable

new skillset

41 CLASSIFIED

4th October to 17th October 2024

THE VOICE OF INDEPENDENT RETAILERS

VOLUME 36 NUMBER 952

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4 ASIAN TRADER 4 OCTOBER 2024

The Post Of ce announced

that Nick Read has decided to

step down as chief executive

on 15 March 2025.

Read was appointed CEO in

September 2019, with a remit

to modernise Post Of ce.

In November 2019, he led

the settlement with the group

litigation claimants in the

Horizon case, beginning the

journey to address the wrongs

of the past and to reset the

relationship with postmas-

ters.

Post Of ce said he champi-

oned the appointment of two

postmasters to the board and

focused on increasing post-

master remuneration,

training, expanding ﬁ eld

teams and support as part of an

initiative to place postmasters

at the heart of organisation.

“It has been a great privi-

lege to work with colleagues

and postmasters during the

past ﬁ ve years in what has been

an extraordinarily challenging

time for the business and for

postmasters,” Read said.

The 2019 settlement paved

the way for redress for

postmasters impacted by the

Horizon scandal, leading to

government legislation to

exonerate those wrongly

convicted.

Post Of ce chief executive

Nick Read steps down

Red letter day

he Post of ce Inquiry, chaired by Sir Wyn Williams,

has now commenced Phase 7, the last. As the gun

smoke of Phase 6 clears, revealing the shattered

reputations of many of the main players in the drama, the

hearings will begin to examine current practice and proce-

dure at the Post Of ce, as well as compensation.

The idea is that “best practice” and the culture of the

institution will be – “renewed” is not the correct word here,

but perhaps “instituted” will do; although hopes are not

high.

Sir Alan Bates, champion of the downtrodden subpost-

masters, has accused the government (whose civil servants

and ministers we have seen revealed during the hearings as

aloof or disinterested, if not worse) of cynicism and

foot-dragging over already long-delayed and incomplete

compensation pay-outs.

“The whole compensation issue [is] out to exhaust

victims until their deaths”, he said, while calling on the

authorities to set a deadline of next March to pay, and

criticised the Group Litigation Order scheme for being a

“gravy train” for government lawyers:

“I have come to the conclusion that the department is

run by government-employed ﬂ imﬂ am artists, whose only

role is to draw out the GLO Scheme, and probably the other

schemes, and spin the narrative then bury it in bureaucra-

cy.”

We hope sagacious Sir Wyn – whose interjections during

the inquiry always hinted that he knew exactly what the

government and Post Of ce were up to, and had done, and

were still doing – will have the power and thunder to ﬁ nally

push the establishment elephant up and over the hill.

Meanwhile, the new government has settled in and is

preparing its budget, having already announced other

policies, to a mixed reception from the public. One proposed

piece of legislation that will be of concern to convenience

retailers is the upcoming Vape and Tobacco bill.

We mention this often because the categories represent

an important fraction of revenue and proﬁ t for retailers,

never mind vapour being a long-term, healthier income

replacement for tobacco.

The hostility from politicians to vape, and the diminu-

tion of civil rights in the push to eventually ban all nicotine,

is revealed by a recent poll of Labour MPs which asked them

to rank in order of importance the upcoming legislation. It

revealed that the Tobacco and Vapes Bill had the lowest

priority, with just four replying that it was in their top three

priorities over the coming months. In fact, nearly half of

them (48%) said the proposed bill was their lowest priority.

Unfortunately, what this means is that no MP is willing

to spend any of their (rapidly diminishing) political capital

on defending the rights of smokers or vapers, although it

appears they are keen to ban petrol and diesel vehicles and

central-heating boilers as soon as possible: Ed Miliband’s

“Great British Energy Bill” led the list of priorities, with 27%

of MPs marking it as their top priority.

So, the UK is now the only major economy that cannot

manufacture steel from scratch, and we must all buy EVS

from China.

Prime Minister Keir

Starmer said at the Trade

Unions Conference.

Addressing the delegates

in Brighton, Starmer

expressed concern at

rising retail crime levels.

Responding to a

question from Usdaw on

abuse of shop workers, Starmer

said, “On the question of

of ences against retail workers,

this truly is shocking. It is not

acceptable, and it can’t be

acceptable in any circumstanc-

es. It is demoralising for the

workforce, and that’s why I’m

pleased we can introduce an

of ence to deal with it.

“We can’t have the situation

where shoplifters can walk in,

shoplift and walk back out again

and nobody can do anything

about it. We’re going to change

that, work with you. We have to

take it seriously. I’m not

wanting to hear again from

those on the front line about the

appalling attacks and insults

that they are subjected to.

“It’s everywhere across the

country; it is really hard for the

workforce to take. You have

rightly championed it as a cause.

We join in that cause and we will

do something about it, working

with trade unions on such an

important issue.”

Speaking after the speech in

the Brighton Centre, Paddy

Lillis – Usdaw general secretary

said, “Keir’s address was an

honest account of where our

broken economy stands, after it

was trashed by the Conserva-

tives. He laid bare the hard work

and tough choices that will have

to be taken as we head towards

the light at the end of the

tunnel, to deliver new hope for

the country.”

Labour will ‘go further’ to crack down on retail

crime says PM

Starmer vows to get

tough on retail crime

NEWS

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The EU has called on members

to ban smoking and vaping in

outdoor areas including

playgrounds, swimming pools

and restaurant patios as part of

a crackdown on second-hand

smoke.

In a non-binding recom-

mendation, the European

Commission said extending

“smoke-free environment

policies” would better protect

people’s health, and in

particular that of children.

It urged the bloc’s 27

countries to extend restric-

tions in place for cigarettes to

cover electronic cigarettes and

other emerging

products, such as

heated tobacco

devices, “which

increasingly

reach very young

users”.

“We have a

duty to protect our citizens, in

particular children and young

people, against exposure to

harmful smoke and emis-

sions,” said health commis-

sioner Stella Kyriakides.

Emissions from electronic

cigarettes also typically

contain nicotine and other

toxic substances that are

harmful also to

second-hand

smokers,

according to the

WHO.

Among the

locations where

all smoking

should be banned, the

commission listed bus stops,

zoos, rooftop bars and cafe

terraces.

The EU is aiming to reduce

smoking from around 25 per

cent now to less than ﬁ ve

percent of the population by

2040, with its “Beating Cancer

Plan”.

EU calls for outdoor smoking,

vaping bans

The vanity of vodka – we

can make it work harder

Nick Gillett is

Co-founder and

Managing

Director of

successful

spirits

distributor

Mangrove Global, as well as an

industry expert and

commentator. In his column for

this issue, Nick celebrates the

potential of more vodka variety

in-store

I would bet my life that there’s not a

booze shelf out there – of trade or on

trade – that doesn’t have at least one

variety of vodka upon it. Vodka is the

world’s biggest spirits category in the

world by volume but is it, well, just a

little bit dull? There’s absolutely no

doubt there are some great brands

doing exciting things but, compared

to other categories, you have to look

quite hard to ﬁ nd them. Here’s how to

inject some excitement into your

in-store vodka range…

You probably stock a staple

vodka or two that you know will

always sell. But where’s the excite-

ment in that? Trialling an independ-

ent brand or two, at a more premium

price point, will bring some interest

to the range and perhaps even

encourage an upgrade. There are

some great British producers doing

good work in this space, like East

London Liquor Company, FAIR, and

Portobello Road Distillery. And

some of these brands are bringing

sophisticated flavoured varieties

too, such as Toasted Coffee Bean

vodka from Portobello Road – an-

other good way to expand and

diversify your in-store range.

Beyond that, we’re seeing a huge

uptake in ready-to-drink and

ready-to-serve products (expected

to grow at a volume CAGR of 6% up

until 2027) – covering the full

spectrum from premixed cans

through to premixed cocktails. If your

customers like convenience, RTDs are

worth trying out, and remember to

keep them cool so they’re ready to

sip. Mick Jagger said, “There are no

absolutes in life – only vodka” but that

doesn’t mean we can’t do a little more

with it!

Ads for junk food on TV are to

be banned from airing before

the 9pm watershed as part of

the government’s drive to

improve public health, the

Labour government con-

ﬁ rmed.

Also, online ads for

products that are high in fat,

salt and sugar will be banned

altogether. Andrew Gwynne,

the public health minister,

told the Commons that both

measures will come into force

in October 2025.

Gwynne told MPs in a

written ministerial statement

that Labour was taking action

because of widespread

concern about the number of

children in England who are

overweight.

“We want to tackle the

problem head on and that

includes implementing the

restrictions on junk food

advertising on TV and online

without further delay. We will

introduce a 9pm watershed on

TV advertising, and a total ban

on paid-for online advertising.

“These restrictions will

help protect children from

being exposed to advertising

of less healthy food and drinks,

which evidence shows

inﬂ uences their dietary

preferences from a young age.

The previous Conservative

government pledged to bring

in the TV watershed ban from

January 2023. But a month

before its introduction, Rishi

Sunak decided to delay it until

2025. Boris Johnson, one of Su-

nak’s predecessors, had

planned to implement the

same measure. But he too put

of plans to do so to help

families deal with the

cost-of-living crisis.

A number of items will be

exempt from the new restric-

tions as they are already

subject to separate regula-

tions. This includes baby

formula, processed cere-

al-based foods for infants, diet

replacement products,

medicinal drinks and approved

meal replacement products.

No more pre-watershed burgers after October 2024

Junk food ads to be

banned on daytime TV

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Convenience stores have

welcomed the government’s

pledge to place thousands of

police of cers, community

support of cers, and special

constables across the UK’s

neighbourhoods with the aim

to reduce shoplifting, theft,

and antisocial behaviour.

The Policing Minister has)

announced a nationwide

rollout of a new specialist

training programme for

neighbourhood police of cers

developed by the College of

Policing, which aims to kick of

this plan by improving

standards and consistency

across the country’s police

forces.

The programme, named

“The Neighbourhood

Policing Pathway’” is

currently going through a

series of pilots in regions

across England and Wales to

help upskill officers to tackle

daily issues that are faced by

local communities. The

Neighbourhood Policing

Pathway training programme

is expected to exit its pilot

stage in March 2025 and then

be rolled out across all forces.

Figures from the 2024 ACS

Crime Report show that there

have been over 76,000

incidents of violence recorded

in the convenience sector over

the last year, and over 5.6

million incidents of theft. ACS

has been calling on the

Government to take action in

tackling the UK’s retail crime

crisis, speciﬁ cally by focusing

additional police resources on

neighbourhood policing to

protect local communities.

ACS chief executive James

Lowman said, “We welcome

the focus on training of cers

to engage with local shop

owners to enhance crime

reporting and gather intelli-

gence. Often our members are

disappointed by the response

they get from their local police

force, but this a step in the

right direction to tackle the

chronic shop theft problem

that retailers are dealing with

across the country.”

Local coppers for local crimes – special constable initiative launched

C-stores welcome new training

programme for neighbourhood police

Asda has revealed that

co-owner Mohsin Issa is

stepping back from his

executive leadership role to

focus on his previously

announced role as sole chief

executive of EG Group.

Stuart Rose, chairman of

the supermarket group, will

assume Mohsin’s executive

responsibilities alongside

Rob Hattrell, a director on

the Asda board, and Asda’s

leadership team.

Hattrell is currently a

partner at TDR Capital, which

has become the majority

owner of Asda following

Mohsin’s brother Zuber’s

decision to divest his stake.

Mohsin remains a

co-owner of Asda and

non-executive on the board.

“We respect Mohsin’s

decision to move on from his

role at Asda where his work is

complete to be the sole CEO

of EG Group,” Lord Rose said.

Mohsin Issa said: “I am

very proud of the highly

experienced team we have

built, and the signiﬁ cant

progress made to build a

bigger and better Asda over

the last three years, as well as

our unwavering commit-

ment to provide customers

with uncompromising

value.

Asda said it continues to

progress its search to recruit

a chief executive to lead the

business.

Mohsin Issa steps down from

Asda leadership role

Upﬁ eld renamed as

Flora Food Group

Upﬁ eld Group, a global leader in

plant-based food that of ers products

across four growing categories – but-

ter and spreads, creams, liquids, and

cheese – said it has changed its name

to Flora Food Group, after its ﬂ agship

brand.

The company said that the new

name reﬂ ects its “evolved purpose of

delivering the next generation of

delicious, natural, and nutritious

food”.

The name change will take ef ect

immediately at the Dutch corporate

level, with a phased approach across

Flora Food Group’s global markets in

the months ahead.

Armed robbery at

Tamworth c-store

According to local reports, the raid

took place at the McColl’s Morrisons

Daily shop in Ellerbeck in Stony-

delph on September 8. A man

entered the shop shortly before 4pm

armed with a kitchen knife and

demanded cash. He was handed

around £50.

The robber was white, was 6ft

tall, wearing a green mask and a

black hoody, black jogging bottoms

and trainers. He fled the scene

running in the direction of Pennine

Way.

A spokesperson for Staf ordshire

Police ’s Tamworth team said they

are appealing for information.

Tupperware ﬁ les for

bankruptcy

Tupperware Brands Corp. and some

of its subsidiaries has ﬁ led for

Chapter 11 bankruptcy protection in

the USA, surrendering to dwindling

demand for its once-iconic

food-storage containers, and to

mounting ﬁ nancial losses.

The company’s struggles

resumed after a short-lived pandem-

ic boost, when increased home

cooking brieﬂ y drove demand for its

colourful, airtight plastic containers.

A post-pandemic jump in costs of

raw materials such as plastic resin, as

well as labour and freight, further

dented Tupperware margins.

Tupperware ﬁ led for bankruptcy

protection after breaching the terms

of its debt.

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NEWS

With the retail landscape

continuing to evolve, perhaps

no challenge is as pressing as the

need for sustainability. As

independent retailers, we have a

unique opportunity – and

responsibility – to lead the

charge in creating a sustainable

and circular economy.

Sustainability in retail goes

far beyond simply of ering

eco-friendly products. It’s about

reimagining our business

model, from sourcing and

packaging to energy use and

waste management. The

circular economy takes this a

step further, aiming to elimi-

nate waste and maximise

resource use through continu-

ous reuse, repair, and recycling.

Consumer attitudes towards

sustainability are evolving.

Many are now actively trying to

reduce their environmental

impact and increasingly expect

the same from brands. Research

suggests a signiﬁ cant portion of

consumers are inﬂ uenced by

businesses with sustainability

credentials. This shift in

behaviour represents a

signiﬁ cant opportunity for

independent retailers who

embrace sustainable practices.

While exact ﬁ gures may

vary, the overall trend is clear.

Sustainability is becoming a key

factor in consumer deci-

sion-making.

Sustainability often goes

hand-in-hand with ef ciency

and cost savings. By reducing

waste, minimising packaging,

and optimising energy use,

retailers can signiﬁ cantly cut

operational costs. For instance,

switching to LED lighting or

installing solar panels can lead

to substantial savings on energy

bills over time.

But perhaps most impor-

tantly, as independent retailers

deeply rooted in our local

communities, we have a

responsibility to be good

stewards of our environment.

So, how can independent

retailers start their sustainabili-

ty journey? Here are a few

practical steps:

1. Of er eco-friendly products.

Look for suppliers who

prioritise sustainability in their

manufacturing processes.

2. Minimise packaging. Opt for

minimal, recyclable, or biode-

gradable packaging options.

3. Implement a recycling

programme. Make it easy for

customers to recycle or return

products at the end of their

lifecycle.

4. Reduce energy consumption.

Switch to energy-ef cient

lighting and appliances and

consider renewable energy

sources.

5. Educate customers. Share

information about your

sustainability ef orts and how

customers can participate.

6. Join initiatives like #Beat-

TheReceipt. Commit to making

paper receipts optional,

reducing paper waste.

At Bira, we’ve developed a

Sustainability Policy to guide

our own practices and of er

resources to help retailers

implement sustainable

strategies. We’re also proud

sponsors of The Sustainable

Business Podcast.

Sustainability isn’t just about

being environmentally

responsible – it’s about

future-prooﬁ ng your business.

As regulations tighten and

consumer expectations evolve,

sustainable practices will

become increasingly crucial for

business success.

The journey towards

sustainability may seem

daunting, but remember, every

small step counts. Start with

what you can manage today, and

gradually build on your ef orts:

our collective actions can make

a signiﬁ cant impact.

As we look to the future of

independent retail, let’s

commit to being at the forefront

of sustainable business

practices. By doing so, we’re not

just ensuring the longevity of

our own businesses but

contributing to a healthier

planet for future generations.

Bira CEO Andrew Goodacre talks all things sustainability and who

retailers need to embrace change for the good

Embracing sustainability - a crucial

step for independent retailers

Valeo Foods Group acquires

European snack maker

Valeo, which owns brands such as

Rowse Honey, Kettle Crisps, and

Barratt, has acquired I.D.C. Holding,

an independent producer of wafers,

biscuits, confectionery and

chocolate in Central and Eastern

Europe.

Valeo noted that the company

was a “natural ﬁ t” with its sweet

snacking platform and would form

the cornerstone for its operations in

the Eastern European market. I.D.C.

produces some of the most

recognisable sweet snack brands

across Slovakia, Czech, Poland and

Hungary, including Horalky, Mila and

Lina. In 2023, the business generat-

ed sales of almost €200m.

Asda workers stage

protest over equal pay

Asda staf held demonstrations to

start an equal pay claim involving

over 60,000 staf .

In Manchester, dozens of workers

demonstrated outside the Civil

Justice Centre, where the case

began. In Brighton, Asda staf

protested at the TUC congress,

where delegates debated GMB’s

motion on equal pay.

The case centres on the fact the

mostly female retail workforce

earns £3.74 per hour less than the

male warehouse workforce.

The GMB said it was the biggest

case ever in the private sector, with

the tribunal hearing expected to last

three months.

Sisters sells European

poultry arm

Poultry giant Ranjit Singh Boparan’s

private of ce will take over Boparan

Holdings Limited’s European

Poultry business in a deal worth

more than €200 million.

Boparan said the transaction will

beneﬁ t both Boparan Holdings,

which owns 2 Sisters Food Group,

and the Boparan Private Of ce as it

creates a “stronger, more agile

group of businesses” and provides a

platform for an “unprecedented

level of internal investment”.

The deal is expected to strength-

en 2 Sisters Food Group’s balance

sheet, reducing debt to the lowest

point in over a decade.

By Andrew

Goodacre, CEO

of Bira (British

Independent

Retailers

Association)

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UK banks have agreed to set up

350 “banking hubs” to address

the impact of thousands of

closures, the Treasury said, as

one lender announced it was

closing 55 more branches.

The shift to online banking

led to mass closings of UK bank

branches, with the elderly,

people with disabilities and

small businesses hardest hit,

especially in rural areas.

City minister Tulip Siddiq

secured the industry’s

agreement for the hubs rollout

over the next ﬁ ve years at a

meeting with representatives

of all the major high-street

banks, the ministry said.

“Banking hubs are a lifeline

for local communities that

have lost their ﬁ nal bank

branch,” Siddiq said.

“I’m conﬁ dent that the

banks will deliver on the

commitment made today, as

well as take a more active

approach to meeting the needs

of local communities,” she

added.

Between 1986 and 2023,

8,944 bank branches closed

their doors across the UK,

taking the total number of

branches in the country down

from 14,689 to 5,745, accord-

ing to of cial ﬁ gures.

The closures – by banks

including the big four of

Barclays, HSBC, Lloyds and

NatWest - have alarmed

consumer groups, who argue

that they hit those who

predominantly still use cash,

particularly the elderly.

Under the agreement, 230

hubs will be in place by the end

of 2025 with a further 120

rolled out by mid-2029 at the

latest.

The hubs, a manifesto

commitment by Labour prime

minister Keir Starmer ahead of

the July election that brought

him to power, will be small

facilities that provide services

such as paying in cheques and

depositing cash.

New approach demanded after local branch extinction event

Lenders agree to set up ‘banking

hubs’ after mass closures

The Government has

scrapped plans for

“Not for EU” stickers

on milk, butter,

meat and fish being

sold in British shops

after repeated

warnings from the

food-makers that

the scheme could

cause “chaos” for

producers and

suppliers.

The Government has told

UK producers that it will

indefinitely postpone new

post-Brexit labelling rules,

which had been drawn up by

the previous Conservative

government. The rules were

set to require all meat, fish

and dairy products in

Britain to carry labels denot-

ing they could not be sent to

the EU and were expected to

come into force from next

month.

Judith Bryans, chief

executive of dairy group

DairyUK, said, “Dairy UK

welcomes the

announcement

that the GB-wide

‘Not for EU’

marking require-

ment will no

longer be rolled

out on 1 October

this year.

As part of the

Windsor frame-

work agreed with

the EU last year, all meat

and dairy products sent

from Britain to be sold in

Northern Ireland have,

since October 2023, had to

carry a “not for EU” label.

The measure is to prevent

goods from bypassing EU

controls.

Government scraps ‘Not for EU’

sticker plan for British food

Yoplait maker sells US

yogurt business

General Mills has announced that it

has entered into deﬁ nitive

agreements to sell its North

American yogurt business to

Lactalis and Sodiaal, two leading

French dairy companies, for $2.1

billion (£1.61bn).

Following the completion of the

transactions, the US and Canadian

businesses will operate inde-

pendently, with Lactalis acquiring

the US business and Sodiaal

acquiring the Canadian business.

General Mills chairman and chief

executive Jef Harmening said the

deal represents “another signiﬁ cant

step forward” in advancing their

Accelerate strategy and portfolio

reshaping ambitions.

Thurrock store reopens

after vape prosecution

More than 9,000 illegal vapes were

seized from a Thurrock shop last

year, it has been revealed.

Michael Dineen, assistant

director for counter fraud,

enforcement and community

protection at Thurrock Council

gave councillors a run-down of the

work of Thurrock’s Community

Safety Partnership following its

annual report for 2023/24.

He said: “That vape shop has now

re-opened and it’s totally legal now

so they’ve learnt their lesson so they

are back up and running and still

paying their rates so a job well done.”

Alert over fake

Glen’s vodka

Store owners were warned about

potentially lethal counterfeit vodka.

The Food Standard Agency

(FSA) stated it had been made aware

of the production and distribution of

counterfeit vodka labelled Glen’s

Vodka.

The counterfeit vodka might have

a dif erent smell and taste to genuine

vodka. Samples were found to

contain isopropyl alcohol – an

industrial solvent not intended for

human consumption, and which can

quickly lead to alcohol poisoning and

in severe cases, death.

The FSA said it had issued a food

alert for action notice to Local

Authorities.

WHOLESALE

4 OCTOBER 2024 ASIAN TRADER 9

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n Scotland, wholesalers seem to be

having a good time. The numbers don’t

lie – wholesalers north of the border are

outpacing their counterparts in England

and Wales. This nugget of optimism, revealed

by market analysts TWC and HDI, of ers a

glimmer of hope for an industry that’s been

hit with more than its fair share of challenges.

But before we break out the party poppers, it’s

worth digging deeper.

At a recent seminar, data experts served up

a comparison of the UK’s wholesale landscape,

and it turns out that Scotland is shining. Ac-

cording to Scottish Wholesale Association

(SWA) chief Colin Smith, conﬁ dence is high,

and the numbers are encouraging.

The success of the Scottish wholesale sector

reﬂ ects its adaptability in a rapidly changing

marketplace. The truth is wholesalers every-

where are being squeezed. Whether caused

by inﬂ ation, rising operational costs, or supply

chain fragility, they’re grappling with pressures

that even the most seasoned industry veterans

couldn’t have predicted a few years ago.

Take JW Filshill, for example,

a ﬁ fth-generation business clos-

ing in on its 150th anniversary.

Celebrating strong results –

turnover up to £215 million and

operating proﬁ t hitting £4.2m

– is no small feat. But it’s not all

down to luck or legacy. The com-

pany that supplies KeyStore con-

venience stores and independent

retailers across Scotland and the

north of England, recorded gross

proﬁ t of £22.3m, up from £19.4m, while net

assets increased to £21.6 compared to £18.9m

the previous year.

Filshill’s success, according to its CFO Keith

Geddes, is built on two things – strategic fore-

sight and embracing new technologies. Moving

into a sleek, energy-ef cient distribution hub

near Glasgow has also been a game-changer,

not just for proﬁ ts but for their sustainability

agenda.

Filshill’s focus on machine learning and

AI might sound futuristic, but it’s the kind

of future-prooﬁ ng more businesses need if

they want to survive the cut-throat wholesale

market.

The wholesaler also emphasised that it

will continue to develop its strategy around

reducing its carbon footprint, identifying areas

where it can positively inﬂ uence a reduction in

Pooja Shrivastava ﬁ nds that the wholesale

sector continues to be a beacon of resilience amid

industry pressure and economic challenges

its carbon impact and work towards a net-zero

emissions position.

“The move to our new Westway site enabled

a step-change in our carbon footprint through

the modern design and build quality – in par-

ticular insulation, improved natural lighting,

energy-ef cient artiﬁ cial lighting, and reduced

heating requirements along with signiﬁ cant

solar power generation,” Geddes added.

It was also declared along with the results

that Filshill’s engagement with its workforce

on physical and mental health, and wellbeing,

remained a key aspect and will continue to

be, with ﬁ nancial planning and healthy eating

featuring in regular support sessions.

However, the group pointed to ongoing in-

ﬂ ation and increases in the cost of living, with

increases in the cost of fuel and food and drink

as causing “uncertainty for the group, our staf ,

our customers and suppliers”.

Parfetts, meanwhile, an employee-owned

business, recently handed out a 12 per cent

proﬁ t share bonus to its staf after a record year.

“We know that their success is our success,”

said Guy Swindell, joint manag-

ing director of Parfetts, adding,

“That’s why we continue invest-

ing in our people and service.”

Parfetts is expanding con-

ﬁ dently, opening new depots,

investing in digital tools, and

continuing to push into new

territories. This is a business with

its eyes ﬁ rmly on the horizon,

even as it takes care of the people

keeping the ship aﬂ oat.

Parfetts depots function as cash-and-

carry centres from 6:30 am to 6:30 pm while

handling delivery and click-and-collect orders

overnight. The wholesaler is also expanding

its own-label range, which will reach 200 lines

by the end of the year. The Go Local own-label

range is designed to of er notable margins on

the best-selling lines.

Buying groups

However, things are not all warm and cozy

yet. Cost pressures are still biting. Wages

aren’t expected to rise again soon and energy

bills aren’t getting any kinder.

Adding to the pile is the rising concern of

cyber security.

To tackle the latter, Confex, a buying

group that serves 241 members across the

UK, is rolling out computer security services

as a safeguard against the increasing threat

of cyber attacks. It’s a smart move in an era

where data breaches and ransomware attacks

are hitting companies where it hurts – right

in the bottom line.

Meanwhile, Sugro UK is strengthening

its data capabilities. The buying and market-

ing group has joined hands with Lumina

Intelligence, a renowned provider of market

data and insights in the foodservice and

convenience retail sectors. Through this

partnership, Sugro Group will gain access

to exclusive reports and strategic insights,

detailing the latest developments in the

sectors, including key trends, consumer

behaviours and opportunities for growth

that are essential to staying competitive in

the fast-evolving convenience and food-to-

go markets.

Recently Sugro UK conducted its Annual

Conference and Networking Event in which

it honoured Youngs Wholesale Ltd for its

140th anniversary. The event also celebrated

the 10th anniversary of North West Whole-

sale Ltd, 20th anniversary of C & S Distribu-

tions and 25th anniversary of Becsco Ltd.

Speaking of events, the UK’s largest

buying group, Unitas, recently wrapped

up its 2024 conference. The four-day event

saw more than 700 individual one-to-one

member and supplier meetings, alongside

the plenary business sessions. Topics such as

consumer attitudes towards ultra-processed

foods, digital marketing, and the role of

wholesale in tackling the UK obesity crisis

were discussed.

Overall, while Scotland’s wholesale sec-

tor is showing signs of resilience, there’s no

room for complacency. If the last few years

have taught us anything, it’s that nothing in

the wholesale or retail landscape is predict-

able anymore.

All is well in wholesale

NEWS FEATURE

MANAGING YOUR PAYROLL

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10 ASIAN TRADER 4 OCTOBER 2024

he potential rise in the National

Living Wage (NLW) to £12.10 could

be a “tipping point” for many

convenience stores and wholesalers

unless the UK government steps in with

targeted tax relief, support and grants.

The Low Pay Commission (LPC) is on

track to raise the national living wage to

£12.10 an hour in April 2025, with the

possibility of suggesting an even higher rate

before the budget, following Labour’s

adjustment of its mandate to secure a

“genuine living wage”. Young workers are

likely to get an even bigger increase as

ministers say that 18 to 20-year-olds should

be paid the same as those older

than 21.

While this has been praised

as “good news” for low-wage

workers, key players in the

convenience channel argue it’s

a shortsighted move. Asian

Trader reached out to promi-

nent retailers, associations,

and wholesalers across the UK

to gauge their reactions, and

the concerns are palpable.

Trudy Davies, who runs

Woosnam and Davies News in

Powys in Wales, has always placed high value

on her staf as she believes they are the

ultimate face of the business. However, with

the expected rise pending, she is now facing

a dilemma.

Davies told Asian Trader, “I do think that

small businesses and in particular retail

stores like mine will be thinking very hard

about their opening hours and/or reducing

the number of staf . Reducing the number of

staf would mean that the business owners

themselves would be

forced to work even

longer hours.”

Julie Kaur, owner of

Premier Jules Conveni-

ence in Telford, shares

the same concern. Her

husband Joey, who man-

ages staf wages, fears

they’ll have no choice

In the convenience channel, both stores

and wholesalers are bracing themselves

to take some tough decisions to balance

expected rise in payroll expenses, says

Pooja Shrivastava

payroll expenses could force some to reduce

staf hours, cut back on hiring, or even

consider price increases that might turn

customers away. Small stores already feel

like they’re absorbing costs from every

direction, and this could be the tipping

point for some.”

NFRN (The Fed) National President Mo

Razzaq, who has more than 20 years’

experience in retailing, also fears the raise

will force several convenience stores and

newsagents to take some tough decisions,

such as reducing staf numbers and taking

on an extra load of work.

Razzaq told Asian Trader, “It will have a

big impact, and our members are very

concerned. Small independent retailers are

the backbone of their communities and as

responsible employers we want to ensure

we are paying a fair wage to our staf . But

the Low Pay Commission’s latest recom-

mendation of raising the national living

wage to as much as £12.10 would be a step

too far for hard pressed small businesses.

“As well as paying our staf more in

wages, we must pay more in national

insurance and pension costs, at a time when

many other costs, including energy costs,

are rising. There is no easy way for small

retailers to combat these increases.

“As so many of the products that

convenience store owners are price-

marked, we cannot pass these costs onto

our customers. The only solution available

to independent shop owners is to reduce

staf hours and staf numbers and, some-

how, take on even more hours ourselves.”

The Association of Convenience Stores

(ACS) echoes these concerns. The body, in a

written submission to the LPC, warned of

“unintended consequences” that NLW rises

can have, like a shift towards more gig

economy working, reductions in in-work

progression, entrepreneurship becoming

less attractive and a shortage of business

investment.

Fair wages versus survival

but to let an employee go.

Joey told Asian Trader, “If

the proposals go through, we

would be forced to possibly

let one member of staf go.

We need to see our expenses too, but we

also need to make sure there are enough

people on the shop ﬂ oor. These days we

need a couple of people more to look out for

shoplifters.

“The increased wages will come out of

our pockets and margins. When govern-

ment raises wages, it sounds like a goody-

goody move, but we forget that the wages

are coming out of someone’s pockets.”

Down in South London,

Nisa store owner Benedict

Selvaratnam (known as Ben)

anticipates a signiﬁ cant strain

on margins at his Croydon-

based Freshﬁ elds Market

store, when the rise comes

into ef ect.

Ben said, “The potential

rise in National Living Wage is

a double-edged sword for

many small businesses like

ours. On one hand, it’s clear

that employees deserve fair

wages, especially with the cost of living

increasing. But, as a business owner, this

increase puts a signiﬁ cant strain on already

tight margins, particularly for small,

independent stores that are still grappling

with rising costs across the board—wheth-

er it’s energy, supply chain issues, or other

overheads.

“Many small retailers are operating on

razor-thin proﬁ t margins, and adding to

Benedict Selvaratnam

Trudy Davies

Julie Kaur

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