Talking Retail Grocery and product news for independent retailers
Long a mainstay of the independent sector, traditional cigarettes and RYO remain in long-term decline, with the price of some top-end packs now as high as £17 a pop thanks to their hefty taxation levels.
The upside has been the huge upswing in vape sales that has provided a welcome profit boost to help make up for the decline in tobacco.
But with various plans in the pipeline to either restrict their marketing or ban disposable vapes altogether, this situation is highly unlikely to be long-lived, our experts point out.
And any further legislation on cigarettes – such as the mooted generational ban – will only speed up the decline there. That’s why it is hugely important that independent retailers are not complacent as the new year gets under way.
Things will change, sooner rather than later, and store owners will need to review their strategies urgently.
Solutions could include bringing in new technology such as shelf-edge labels and improved security or developing new revenue opportunities in areas such as food-to-go.
It could be a case of examining all your costs and working with your accountant, making sure every in-store process is running as efficiently as possible. Look at promotions, pricing, own-label and instore marketing.
As Fed president Muntazir Dipoti points out, the biggest opportunity that independent retailers have is their agility to make the necessary changes that cement their positions in the hearts of their communities.
But it’s no use just ‘doing what you’ve always done’ and hoping for the best. Get out there, take a dispassionate look at your store and how it operates, learn from your competitors and seek inspiration from fellow independents.
It still won’t be easy, but at least you won’t be caught napping.
David Shrimpton | Editor
An extended 2 part online version of the Big Story can be read here.
Read the January issue of Independent Retail News
