Professional Documents
Culture Documents
50
PEOPLE
Will Covid-19
make
supermarket
pay more
equal?
T
esco et al might be embarking on a recession-driven
price war, but it’s safety measures that will
determine footfall while coronavirus lingers.
Or so suggests a new poll this week, which found
two-thirds of shoppers would switch from their regular
supermarket if safety measures to protect them from Covid-19
didn’t meet their expectations (p4). Tesco: why our push for
It’s something retailers should keep in mind as they low prices isn’t anti-brand
gradually start easing the restrictions put in place during
lockdown. Having reopened its in-store bakeries this week, Lidl
has already faced fire for no longer pre-bagging products, with
customers claiming fellow shoppers were handling them
“Shop workers – without gloves.
and their ability As we’ve seen repeatedly in our Grocer 33, one of the big
to police the rules challenges for supermarkets is the fact the actions of fellow
customers can have as much impact on how safe a shopper feels Iceland joint MD Nigel
without upsetting in-store as the measures that have been put in place. Broadhurst resigns
customers – Store workers – and their ability to police the rules without
are playing a upsetting customers – are therefore playing a crucial role in
maintaining shopper loyalty through the pandemic.
crucial role in And that’s only set to become more pressing as masks
maintaining become mandatory in shops in England later this month,
shopper loyalty” following yet another dizzying u-turn by the government.
Enforcement of the new rule, set to come in on 24 July, will
Carina Perkins, editor,
thegrocer.co.uk ultimately fall on police, but shopworkers are expected to Tesco responds to ‘Aldi
‘encourage’ the policy too, according to No 10. price war speculation’
It’s all putting a huge amount of responsibility on the
shoulders of people who are earning, let’s face it, not very much
– and who are already dealing with “hundreds of incidents of
violence and abuse” every day, according to Helen Dickinson,
CEO of the British Retail Consortium.
So perhaps it really is time for supermarkets to permanently
reassess the wages they pay their shopworkers (p24).
Raising pay might be an unpalatable prospect given the Bare shelves: free-from
looming recession. But with safety still so important to category report 2020
shoppers, it would be a big mistake to forget about the staff still
making a difference on the frontline.
Groceries Code
Adjudicator still
‘highly effective’
says review
Steve Farrell launch an investigation.
The Groceries Code Current Adjudicator
Adjudicator is still Christine Tacon, who is
needed to ensure due to hand over to an as-
retailer compliance with yet unnamed successor,
Groceries Supply Code welcomed the conclu-
of Practice, the govern- sions. “This is a highly
ment’s latest review of positive report that rec-
the body has concluded. ognises the importance
The GCA will therefore of the GCA in creating a Two-thirds of shoppers said their loyalty would be tested by ineffective safety measures
be maintained with fund- more level playing field
ing to continue policing for the groceries sector,”
the code, according to the
statutory review, which
assesses the ongoing
she said.
However, critics have
slammed the report for
Shoppers ready to
need for the role every
three years.
“The GCA continues
to be highly effective in
being a long time com-
ing, given it has brought
with it no changes to the
Adjudicator’s remit.
switch supermarket
enforcing the Code and
in exercising its powers,”
the report published this
week concluded.
The review covers
the period April 2016 to
March 2019, taking in 85
responses from a range of
over safety worries
The executive sum- shareholders. Edward Devlin encourage the policy, “If shoppers don’t feel
mary said: “The A source told The The majority of shoppers according to No 10. protected, they will vote
Government will there- Grocer: “The review was would switch from their The move, which with their feet,” said Nick
fore maintain the GCA until the end of March regular supermarket if brings England into Cockett, chief operating
and ensure that the 2019, it is now July 2020 safety measures to pro- line with Scotland and officer at Cennox, which
office is funded and and the conclusion is eve- tect them from the spread other European coun- last month unveiled a
resourced to carry out rything is highly effec- of coronavirus didn’t tries, would give people device it claimed killed
its statutory functions tive, we’re not going to meet expectations, a poll “more confidence to shop Covid-19 on chip & pin
under the Groceries Code change anything and it’s has revealed. safely”, said health secre- machines using ultravio-
Adjudicator Act 2013.” all working fine. There is Two-thirds (69%) of tary Matt Hancock. let light.
The report concludes no reason why that had shoppers admitted loy- Despite the govern- “These results show us
there should be no to take 17 months. alty to their favourite ment’s ‘Shop With that robust in-store safety
change to the maximum “There has been impa- supermarket would be Confidence’ message to is the new gold stand-
fine the Adjudicator can tience within the sec- tested if safety measures the public, almost half ard to win the hearts and
impose and no change tor. In the review, a lot of were deemed ineffective, (46%) of shoppers in the minds of consumers – at
to the information the people wrote in saying found a survey by bank- Cennox survey believed least for the foreseeable
Adjudicator can consider more retailers should be ing tech firm Cennox. the safety measures put future.”
in deciding whether to covered, so a lot of peo- It follows the prime in place by supermar- In other results, more
ple have been waiting to minister’s announce- kets and retail stores than half (54%) of all
see whether the govern- ment that face coverings had been inadequate or shoppers already wear
ment is going to take the would be compulsory poorly managed. Just 7% some form of PPE while
opportunity of the review in all retail stores across said they had “complete out shopping, such as
to change the remit and England from 24 July. trust” retailers would masks or gloves.
that has not happened.” Failure to follow the keep them safe. The government’s
The last review, cov- new rules will lead to a And 13% of consum- announcement on face
ering 2013 to 2016, came fine of up to £100, with ers had managed to avoid coverings was welcomed
with a parallel call to evi- enforcement to fall on supermarkets altogether by retail industry bodies,
Christine Tacon stayed on dence on whether the police – though shop- since lockdown began, such as the BRC, Usdaw
in the role due to Covid-19 remit should be changed. workers are expected to the report found. and ACS.
Poundstretcher
area managers
facing the axe
Poundland to launch
as part of CVA
The axe has started
to fall at struggling
‘destination stores’
Poundstretcher, as 10 out
of 23 area managers were Steve Farrell stretching from Consett,
told they face redun- Poundland is to launch Newcastle and Cleveland
dancy this week. ‘destination stores’ with in the north east to
Six more staff in buy- bigger ranges as well Slough, Thurrock, Pitsea
ing and loss prevention as an online shopping and Borehamwood in the
also face redundancy, service. south east, Poundland
The Grocer has learned. In what the variety said. All are getting the
The job losses follow discounter is calling its discount chain’s fro-
the approval by credi- biggest-ever transfor- zen and chilled ‘shops
tors earlier this month mation programme, the in shops’, launched as a
of a rescue plan for estate is to be revamped pilot last year.
the variety discounter. and stores split into three The transformation
The company volun- types: ‘destination’, ‘core’ plan includes completing
tary agreement (CVA) and ‘convenience’. Poundland is splitting its estate into three types of store the rollout of new price
put more than half of Destination stores will points, also launched
Poundstretcher’s roughly get the “fullest range Meanwhile, one of customer-focused, peo- last year. By autumn this
450-store estate at risk as of products including three stores in Cannock ple-led and tech-ena- year, “every category will
it seeks rent reductions. food, homeware, health will close on 18 July to be bled,” said Poundland have extended ranges at
A source told The & beauty and clothing”, converted into an online MD Barry Williams. prices above and below
Grocer the redundancies Poundland said today. fulfilment centre. The “This is the biggest £1” Poundland said.
left the remaining 13 with Core stores will offer “a home delivery service transformation in our Meanwhile a new type
the “impossible” task of wide range of products will be offered through history as we look to of general merchandise
overseeing between 40 to on high streets custom- Poundland.co.uk. secure our future for shop-in-shop would be
50 stores each. ers love”. “We’re stepping up another thirty years.” launched this summer,
Neither Poundstretcher Convenience formats to support high streets Stores to be revamped Poundland said, with
nor Farmfoods provided will provide “grab-and- after the impact of cor- in ‘Project Diamond’ details to be announced
a comment. go easy shopping”. onavirus by being will go live this month in future.
Segro allots
more space to
City Harvest
Loop refillable system
food charity
Real estate investment
firm Segro has provided
makes delayed debut
two of its warehouses to
food redistribution char- George Nott European Partners,
ity City Harvest to help The UK pilot of reusable Danone, Beiersdorf, REN
vulnerable Londoners. packaging platform Loop Clean Skincare, Unilever,
City Harvest collects launched this week in RB and BrewDog.
surplus food from all sec- partnership with Tesco, DHL will provide
tors of the industry and having been delayed due warehousing, fulfil-
delivers to more than to coronavirus. ment, returned deposit
300 local organisations From this week, cus- scanning, and process
across the capital. It pro- tomers can shop a range all cleaned containers
vides about 80,000 meals of products packaged in for distribution back to
on average every week. durable, refillable con- manufacturers.
The space on Segro’s tainers on a dedicated Tom Szaky, founder
Acton Estate in West website and have them and CEO of Loop and
London will complement delivered to their homes. Companies to sign up include CCEP, Unilever and Danone TerraCycle, said Loop
an existing City Harvest Users pay a deposit fee was inspired by “the
facility on the site. on each piece of packag- From 2021, Loop-listed “We will learn what milkman from yester-
“We have established ing. Once the products products in reusable con- works at scale as we year”, but with “the con-
a very good relation- have been consumed, the tainers will also be avail- develop plans with Loop venience afforded by our
ship with City Harvest to containers are put back able in dedicated aisles to introduce reusable single-use consumption
ensure that the needs of in the tote they arrived in Tesco stores. packaging into our busi- of today”.
specific locations can be in, then dropped off at Tesco CEO Dave Lewis ness,” he said. It is understood an ini-
met and that a real dif- one of 2,500 DPD collec- said the partnership had Several major and tial 5,000 early adopters
ference is made to thou- tion points across the UK been “designed to test a emerging fmcg compa- in the UK will be given
sands of people’s lives,” or picked up by Loop. The new way of helping cus- nies have signed up for access to the platform.
said Alan Holland, Segro containers are cleaned tomers use less plastic their products to be listed The UK launch follows
business unit director in for reuse, before they are and explore the exciting on the platform. They pilot launches in the US
Greater London. refilled by suppliers. potential of reuse”. include Heinz, Coca-Cola and France last year.
Time to open
second depot
on back of
Foodservice groups
doubled sales
Time Wholesale Services
is bringing forward its
report slow reopening
plan to open a second
depot as weekly cash & Lyndsey Cambridge areas performed better
carry sales have doubled Foodservice wholesalers over the weekend and
over recent months. are reporting a slow start overall trading is improv-
The wholesaler aims to the reopening of the ing across the group,”
to have secured the hospitality sector, with she said.
additional premises sales down 50% despite Many of the group’s
in the London area by the return of pubs, cafés hotel customers were
September 2020. and restaurants. waiting until the end
Co-owner Sony Bihal Chris Binge, CEO at of July to reopen, she
said the business was buying group Fairway added.
considering either the Foodservice, told The “The hope is that con-
acquisition of an existing Grocer his members had sumer confidence will
business or developing a seen a small increase in grow as they see and
vacant site. sales for the week ending Hospitality sales remain 50% down despite reopening hear reviews and feed-
Bihal told The Grocer 10 July. However, on aver- back from other visitors.
weekly sales from its age this took them from more outlets reopened. return. CEO Coral Rose “We still have a long
existing cash & carry in 40% to 50% of sales for “If all schools return said that while its 13 way to go, but most of
Barking had hit £2.2m in the same week last year, in September I think we independent wholesale our members have had a
May and June compared he added. could be back to 65% to members had some good better week and we hope
with £1.1m for the same The uplift marks the 70%,” he said. “October initial orders ahead of this will continue.”
period last year. first week restaurants, is traditionally a poor 4 July, many of the cus- Both Binge and Rose
Online sales had also cafés, pubs and other month for sales but I tomers didn’t experience welcomed the support
doubled, he said, to food outlets have been hope for 80% by year the footfall they were from Chancellor Rishi
£500k a week, and aver- permitted to open their end.” expecting. Sunak with the move
age basket spend had doors since March. Binge Rival foodservice buy- However, “members to cut VAT on food from
grown from £2.6k pre- said he expected sales to ing group Country Range trading across the south 20% to 5%, and the Eat
coronavirus to £3k. continue to improve as has seen a similarly slow coast and Lake District Out To Help Out scheme.
90
increase 4% over the past year Heineken shares fell 2.4% on Thursday to
€84.54, now down 15.5% year on year.
Elsewhere, mixer maker Fever-Tree announced
Ella’s Kitchen has said the company is facing. the acquisition of Global Drinks Partnership, the
it continues to perform But Ella’s said it was con- group’s sales agent in Germany, in a package
“well” despite the cor- fident it would continue worth €9.5m. It has worked with the sales agent
onavirus disruption, to “perform well”. for seven years and said the German market rep-
after posting a 4% sales “The directors have a resented a “notable opportunity” for the group as
increase for last year. shared sense of passion one of the largest mixer markets in Europe.
The Hain Celestial- and excitement for the Hargreaves Lansdown said the deal increased
owned brand reported future of Ella’s Kitchen, the size and organisational complexity of the
revenues of £73.4m for Ella’s Kitchen saw sales up with both entry into new company and marked a departure from the exist-
the year ended 30 June in the UK and overseas markets and innovative ing business model. “We may look back on this as
2019, up from £70.6m the products on the horizon,” the beginning of a larger strategic shift, but it can
prior year. 6.7% to £11.1m, driven by the company added. be risky when businesses divert their attention
UK sales were up 3% increased international “We are confident in away from core competencies.”
during the year, with the and UK sales as it “out- our ability to exceed Shares fell back 4.9% to 2,300p on the news.
brand increasing mar- performed” the UK baby- ever-changing consumer
ket share to 28.6%, while food market. expectations – delivering Track the latest share price movement and
international growth – The coronavirus pan- healthier food they desire performance of 200 UK and international grocery
excluding the US and demic, and the associ- and being a business that and fmcg stocks via the new Grocer Finance
Canada – rose 6%. ated uncertainty, were operates with a purpose channel at thegrocer.co.uk
Operating profits rose noted as one of the risks beyond profit alone.”
Payment
terms:
who are
the real
villains?
Supermarkets have led
the way in paying
suppliers more quickly
– but many of fmcg’s
biggest players are
taking longer than
recommended
collect the money owed, accord-
Edward Devlin
THE MULTS
P
ing to figures from Pay.UK. The
Source: UK government
rompt payment could number of SMEs experiencing
make the difference AVERAGE % INVOICES NOT PAID overdue payments hit 54%, the
TIME TO PAY WITHIN AGREED TERMS
between survival and highest level since 2015.
oblivion for some SME food and Current Year ago Chg Current Year ago Chg Before the pandemic struck,
drink suppliers as cashflow Aldi 41 42 –1 6 8 –2 United Biscuits, Britvic, Kerry
stretches to breaking point dur- Asda 43 44 –1 4 5 –1 Foods, Hovis, Magners and
ing the coronavirus pandemic. Iceland 50 51 –1 4 4 0 Burton’s Biscuits were among
However, many of fmcg’s big- Lidl 48 49 –1 6 6 0 companies taking more than
gest players are still exceeding Marks & Spencer 31 31 0 1 1 0 60 days to pay suppliers and
the recommended 60-day limit Ocado 32 30 2 9 25 –16 paying at least 15% of invoices
set out by the Prompt Payment Sainsbury’s 51 51 0 2 2 0 outside agreed terms, data cov-
Code (PPC), analysis of the gov- Tesco 41 40 1 3 4 –1 ering six months reveals.
ernment’s latest payment prac- Waitrose 37 38 –1 3 3 0 Of the 19 fmcg manufacturers
tice data by The Grocer shows. Morrisons 47 48 –1 0 0 0 we looked at, 13 improved pay-
Supermarkets, on the other ment times over the past year
hand, took an average of just villains? And is the current cri- Federation of Small Businesses and 12 also brought down the
42 days, paying at least 95% sis likely to worsen or improve (FSB) study of more than 4,000 percentage of late payments.
of their invoices within their payment terms? firms across all sectors. However, 16 were still well
agreed terms to boot. The majority of small busi- That builds on the troubles above 60 days and seven paid
But do the numbers tell the nesses (62%) have been sub- of last year, when SME late 30% or more invoices outside
whole story? Are supermarkets ject to late or frozen payments payment ballooned 80% to agreed terms, with Hovis on
really the heroes of prompt pay- during the coronavirus out- £23.4bn, with businesses fac- 60%, Burton’s on 52%, Magners
ment while big suppliers are the break, according to the latest ing a total bill of £4.4bn just to on 51% and Britvic on 48%.
1 3 9
11 15 16
W
ones concerned. Many in food as “alarmist”, such consensus Standards Agency under his
ithin hours of the trade and drink are similarly scepti- appears a long way off. So is the belt, as well as five years as a
commission’s member- cal, with one industry source commission a dead duck? Tesco director and 30 years in
ship being confirmed calling the commission “pure food manufacturing. A microbi-
last Friday, it was already under smoke and mirrors”. The lineup ologist by training and now Pret
the cosh. It’s a disappointing start. Announcing the lineup last a Manger’s food safety advisor,
Established earlier this month Chlorinated chicken and hor- week, trade secretary Liz Truss you’d be hard-pressed to find
to advise on the UK’s agri- mone-treated beef have divided claimed the commission would anyone with a greater experi-
food trade policy, the RSPCA the country for years now, and “ensure that any trade deal ence and understanding of cur-
branded it “a Trojan horse”. a core aim of the commission we strike brings the very best rent food safety issues.
Greener UK, a coalition of envi- will be to build a broad, multi- opportunities to the UK’s farm- Smith’s CV, combined with
ronmental groups including lateral consensus that unites as ing community”, while environ- his relatively low profile, has
Greenpeace and the National many voices as possible behind ment secretary George Eustice largely encouraged those who
Trust, said it was “a fig leaf” the UK’s trade policy, whatever said it would ensure the UK’s believe the independence of the
from government. it may look like. “commitment to high welfare chair will be crucial to the suc-
Kath Dalmeny, CEO of But with its member- standards are maintained”. cess of the commission.
Sustain, called it “a temporary, ship scorned by numerous It will certainly not lack But the wider membership
toothless trade commission groups and its new chair, Tim experience at its head. Smith has drawn criticism, particu-
with no powers”. Smith, under fire for branding is a food industry veteran with larly the conspicuous absence
A
ter-free, with most areas being
clean, organised, safe “relatively tidy”. Points were
and well-stocked store lost for a more than 10-min-
helped Waitrose secure ute wait at the checkouts as the
victory on this Sunday lunch queues shifted from outside the
shop, as availability remained store to the tills.
mixed across its rivals. A lack of staff and product
Our shopper walked straight availability at a “messy and
into the shop in Abergavenny disorganised” Morrisons in
and was greeted by a “great and Abbeydale, Gloucester, contrib-
colourful” promotion for the uted to a poor score. After a wait
Scrumptious Summer range. All of more than 10 minutes to enter
the work to deal with Covid-19 the shop, our shopper found
safety measures (signage, sani- replenishment needed across
tisers and wipes) was dealt with most areas, empty boxes on
outside, leaving the shopping to shelves and no staff restocking
be “an enjoyable experience”. Waitrose in Abergavenny was ‘an enjoyable experience’ on this Sunday or available to help.
There were also signs inside Iceland in Farnborough
reminding customers about just two items out of stock. being ignored by customers and limped home as the first Grocer
two-metre social distancing. However, certain areas (tinned staff. There were also no staff on 33 guest retailer during the cor-
There was an abundance of soup, veg and tomatoes) were the door to limit shopper flow, onavirus crisis. It scored poorly
stock – and no gaps: only olives low on lines and the shop felt but the clean and well-main- across all categories, with the
and feta from our shopping list less well-stocked than pre-coro- tained store was quiet. worst availability of the week
were out of stock. navirus, our shopper noted. Signage was helpful through- (seven out-of-stock and three
Staff were friendly and help- Social distancing markers out the shop, as were staff, not-stocked items).
ful, and maintained social dis- on the floor were looking worn who were all wearing masks, There were no barriers or staff
tancing while restocking, but and some staff didn’t remain and there was no queue at the outside monitoring customer
none wore masks or gloves. two metres apart when helping, checkout. numbers entering the store and
“Sometimes it can feel you but it was an easy shop and the Tesco matched Waitrose for no sanitiser to clean trolleys
are getting in the way of staff store was calm and ordered. availability (two out of stock before use.
members doing their tasks, but Asda in Glasgow and Tesco in products) and there was no Our shopper found the lay-
they made me feel like I was Sandhurst weren’t far behind queue to enter, though it was out confusing and had to dou-
their priority,” our mystery Sainsbury’s, both scoring busier inside as more custom- ble back on herself three times
shopper said. respectably. ers were allowed in store. The in search of items. There was
It was also a strong perfor- Asda was let down by four retailer also put an end to its also only one till open, creat-
mance from Sainsbury’s in missing items from the basket, one-way system, but social dis- ing a long queue, with no barri-
Horsham, with the same avail- a restocking trolley blocking an tancing reminders remained ers or signs to help with social
ability score as the winner and aisle and the one-way system present. distancing.
washing their hands is enough. reduced, so value has grown flour, they have sourced other
store of the week What have been the noticea- and doubled through the first lines and bigger lines, even
ble differences for Welsh stores 12 weeks of Covid. We have now catering-sized packs, just to try
Winner: Waitrose Abergavenny during the pandemic? From started to see a reduction in bas- and get something back on the
Store manager: Gill Klinkert a supermarket perspective, it ket size. The tourist trade has shelf. The business has tried
Open: 2004 hasn’t been that different. In also come back, and people are to react to that in the layouts
Size: 47,000 sq ft terms of two metres, we have travelling to second homes. We that have consistently been a
Market share: 29.3% stuck with that from the off. We have the Brecon Beacons on our challenge. Fresh now is not far
Nearest rivals: Morrisons – 1 mile have been completely aligned doorstep and tourists are head- away, we are probably about
Iceland – 1 mile in making sure customer num- ing to Pembroke as well. We are 95% there compared to where
Aldi – 2 miles bers in store are appropriate and very much a traditional holiday we were. Our variety of assort-
Asda – 7.8 miles comfortable. And also making branch here – our sales in the ment is huge. It may take until
Store data source: Analysis by CACI. sure both our partners and cus- summer are far higher than the September until we are back to
Call the market planning group on 020 7602 6000 tomers are protected through spring. business as usual.
measures such as only opening Is availability back to pre-out- How has trading been on the
Face masks have now been every other till bank. break levels yet? Not quite yet. Scrumptious Summer range?
made mandatory in Scotland Is there potential for the What the business has really It has gone really well. What
and England. What is the queues to shift from outside to tried to focus on is, where we has flown is our barbecue three
expectation in Wales? We are the checkouts with more num- have had issues, for instance in for £10 offer on meat. We have
awaiting an update from the bers in store? We have two some new lines compared with
Welsh government. Partners partners managing this front last year and I can’t see a com-
and customers have been ask- of store at all times, and every petitor out there who does it
ing. I’m sure something will be branch from the end of July
“We have started better. The drinks and cordials
imminent here this week. is having the extra protective to see a reduction have also gone really well. And
Are customers already wearing screens installed between every even some of the Basics such as
coverings in store? It is 50/50 till. From the end of this month,
in basket size. the meringue has been popular.
at the minute and has been I will be able to open all my The tourist trade The Scrumptious Summer pro-
pretty much like that all the way checkouts and all my self-serve. motion has been phenomenal
through. Some customers still Did a lack of tourism affect
has come back, – there isn’t anyone to touch us
feel really anxious and vulnera- sales earlier in the year and is and people are on the range and variety.
ble, but there are also those who it returning now? Trolley sizes
aren’t sure whether face masks have grown significantly during
travelling to Gill Klinkert was talking to
offer any protection and feel just the crisis as transactions have second homes” Edward Devlin
£5.50
£2.75
Average: £3.57
YoY: –74p (–17.2%)
Weeks on offer: 30 52 W/E 12 JULY 2020
£5.00
£2.50
Average: £3.23
Guest Iceland came in just 30p cheaper than runner-up Asda at £55.69 YoY: 23p (7.8%)
Weeks on offer: 11 52 W/E 12 JULY 2020
G
Ronan Hegarty cheaper than Sainsbury’s – and
uest retailer Iceland £2.61 pricier than Iceland.
claimed a narrow pric- Tesco offered the lowest price Sainsbury’s Nescafé Azera instant coffee, Americano, 100g
ing win in the Grocer 33 for 11 lines, with four exclu-
this week. In the first guest slot sively so: the Barefoot mer- £3.00
since they were paused with the lot, honeydew melon, Little
onset of the coronavirus crisis Gem lettuce and frozen mixed £5.50
Average: £4.22
in March, Iceland came in just vegetables. YoY: 8p (2.0%)
30p cheaper than runner-up It was a similar story for Weeks on offer: 33 52 W/E 12 JULY 2020
WEEK 5 WINNER
SHOPPING BASKET Asda Morrisons Sainsbury’s Tesco Waitrose Iceland
PRICE P MoM YoY PRICE P MoM YoY PRICE P MoM YoY PRICE P MoM YoY PRICE P MoM YoY PRICE MoM YoY
Alpen Light Jaffa Cake
5x19g 1.00 ∙ -30 8 1.00 ∙ 0 -17 2.00 22 2 1.99 60 4 2.00 0 0 1.00 ∙ -12 12
Apples 1.30 0 1 1.60 0 8 1.60 0 7 1.92 0 1 1.75 0 -10 1.60 0 1
Own-label, Gala, six-pack (five to seven-pack)
Babybel Mini
6x20g 1.95 ∙ 3 -1 2.00 ∙ 37 -3 1.00 ∙ -41 -27 1.95 22 5 1.35 ∙ -68 1 1.95 ∙ 0 -1
Barefoot merlot 5.75 ∙ 6.75 ∙
750ml
-3 5 55 -12 6.75 43 -3 5.50 ∙ -75 3 6.89 0 15 6.25 0 -11
Bathroom tissue 1.65 0 -5 1.50 0 -30 1.90 0 2 1.90 0 3 2.00 0 0 1.50 0 21
Own-label, white, four-pack
Brown onions
Own-label, prepacked, 1kg 0.80 ∙ 10 0.75 ∙ 0 17 0.85 0 1 0.85 0 2 0.95 0 11 1.00 0 19
Cadbury Little Bars 1.00 ∙ 0 1.25 ∙
Dairy Milk, 6x18g
-4 24 1 1.00 ∙ -11 0 1.25 ∙ 25 -1 1.30 0 4 1.00 0 0
Canada Dry Ginger Ale 1.00 ∙ -41 1.50 ∙ 1.00 ∙ -22
One-litre
1 0 16 4 1.50 0 18 1.30 ∙ 0 1 1.30 ∙ 0
Carrot, swede & potato mash
Own-label, 400g (400g-450g) 0.85 0 0 1.33 0 68 1.00 0 0 0.89 ∙ 10 -4 1.77 ∙ 11 0 1.25 0 12
Elmlea Cream 0.95 0 4 0.95 0 -5 1.00 0 5 0.95 0 4 0.95 -5 5 0.89 -1
Single, 284ml
Mushrooms
Own-label, closed cup, 325g (250g-400g) 0.98 7 5 1.03 0 1 0.87 ∙ -16 -3 1.03 0 -1 1.08 0 0 1.08 0 0
Nescafé Azera instant coffee
Americano, 100g 3.00 ∙ -27 -74 5.50 ∙ 17 8 3.00 ∙ -69 -9 3.00 ∙ -102 5 5.49 ∙ 75 -24 3.00 ∙ 0 23
Nuii Ice Cream Sticks 3.89 101 -10 2.00 -130 12 3.90 82 22 3.89 ∙ 195 16 3.89 93 2.00 ∙
Dark Chocolate & Nordic Berry, 3x90ml
PG Tips teabags
80-pack, pyramid, 232g 2.00 ∙ -13 -2 2.00 ∙ -47 9 2.00 0 -14 2.00 0 -11 2.00 ∙ -49 1 2.00 ∙ 0 -14
Pork loin steaks 2.17 0 -3 2.97 0 10 2.17 0 -49 2.75 0 0 4.40 ∙ -110 82 3.22 0 1
Own-label, 495g (450g-540g)
Vosene Medicated Shampoo 2.00 0 8 1.30 0 3 2.00 0 18 2.00 0 24 2.05 0 -12 1.00 0
Dandruff prevention, 250ml
I
many of us have tried to keep and risks ahead. Managing risks We felt we were ready to go for no-
t’s rare that I wake up and one eye on what we need to do is what businesses do, after all. deal last time but when we spoke
find Michael Gove has to prepare for 1 January. Our FDF Secondly, keep it simple and to those we trade with, we found
stolen my thunder. But Committee has been catching up manageable. We wasted months some weren’t. Suppliers and cus-
that is exactly what happened monthly to understand the risks, worrying about the scale of the tomers need to be involved in
last Sunday when he toured TV whilst not forgetting the oppor- challenge. But at FDF we’ve dis- preparation early. And big pic-
and radio studios warning us tunities. And the numbers join- tilled our preparations down to ture didn’t do it. It was only when
that change was coming on 1 ing the committee have risen we boiled down the new require-
January, and we had better get threefold on recent video calls. ments to a list of detailed process
ready. I couldn’t agree more. Meanwhile, in our company we
“Suppliers and flows, with names and deadlines,
Whether as the chair of the FDF have reconvened working groups customers need that we finally felt ready.
EU Exit Committee, or in my day and dusted off earlier work tack- The publication of the 206-page
job as a sugar manufacturer, this ling everything from food label-
to be involved in document on the UK-EU border
is the message I’ve been trying ling changes to securing the preparation early” by the UK government this week
to push home for months now. services of new customs agents has much of what we need to pre-
Whether we get a deal or no deal across our European markets. pare the detail. Take it with you
with Europe, lots will change. I’ve learnt three important and four key areas: moving prod- to the beach this summer. And
And we need to get ready. hard lessons through all of this. uct across borders, regulatory remember, you’re not alone. Help
It’s been harder than ever to Firstly, this will not be a perfect changes such as labelling and is out there from the FDF, the gov-
make that case over the past few process. We started by waiting for plant and animal health, mak- ernment and others. Don’t feel
months, as we’ve all wrestled all the answers we needed from ing sure the EU colleagues in embarrassed about asking for it.
with this wretched virus. We’ve government officials. But I’ve sat our UK businesses feel wel- Deal or no deal – now is the time
either had our minds on how to in many meetings where govern- come, and preparing for the to get prepared.
keep our colleagues safe whilst ment officials have found polite specific situation in Northern
meeting unprecedented demand and coded ways to say they do Ireland. There are some fantas- Gerald Mason is chair of the FDF
from our retail customers, or been not know, and probably will not tic staff at FDF who have grown EU Exit Committee
third party
H
If home delivery is the future, it vendors automate their delivery Messenger – with no one at the
ow many deliveries are has to be better. Now is the time routes and getting away from the other end. They have embraced
landing on your doorstep to embrace tech, to make online tired, binary delivery apps that the future of delivery and of cus-
every week in lockdown? retail and delivery simpler and take the control away from the tomer management to the benefit
Two? Ten? Fifty? What’s in them? make customers’ lives easier. vendor and the customer. of their business.
Food, clothes, drinks? Every day Whether you are Tesco or a ShinDigger, a Manchester- That is the power of small
there’s a new arrival. Everything small independent butcher in based brewery, has pivoted from retail businesses engaging in
is being delivered. Northampton, the technology wholesale to direct to customer the future of technology. It shows
Lockdown has changed the to properly serve your customer during the lockdown – not an what the right technology can do.
way we consume and the way right to their front door is there unusual story in the pandemic. In the new normal, retailers
retailers can provide their prod- now, but you have to be bold. Embracing a fully automated have to get their delivery and
ucts to customers. But home Extraordinary sums are spent customer management system, their customer service up to
delivery is still awkward, old and on e-commerce sites while we do it boosted DTC sales 300% in scratch to truly capitalise – tech-
analogue. Customers can’t man- not invest meaningfully in the three weeks with over 1,000 five- nology is their best weapon.
age delivery effectively after pur- final and most important stage star customer reviews. You can
chase. Yet more customers than of the transaction: receiving the have your beer on your doorstep Ed Hodges is CEO of HelloDone
I P
EDLP pricing. It’s pointless for pricing aggression could create
t’s remarkable how shoppers and ruins the good tar- another retail casualty in a strug- aul spots unusual
many suppliers have geting work that Tesco has done gling competitive set. bulges under some
not altered their annual over the past five years. In reaction, Sainsbury’s full-length skirts,” is
plans despite what’s going on in Discounters pay suppliers weapon of choice is promotions: certainly a curious programme
the market. But they can’t ignore more at cost price than Tesco, hi-low hi-low, it’s off to war it synopsis, as provided by
this next wave of pressure. The which takes about 20% higher goes. It could work. Shoppers Channel 5 for Shoplifters: At
looming recession brings price lost trust in complex promo- War With the Law (13 July, 9pm).
competition – competition that tions years ago but promos are All was, ahem, revealed when
suppliers can’t fund, as many
“Tesco’s approach a great pricing tool and I pre- Paul and his fellow security
have just had their ranges Covid- is to demand dict that, with lockdown easing, guards at Coventry’s West
culled by the main retailers. promiscuous shoppers will go Orchards shopping centre
Consumers really need this
suppliers fund hunting for their beloved deals interrogated a group of women
price competition. The surgical this war” once again. hiding Boots baby formula in
glove has been thrown down by Asda, on the other hand, has bags hidden in their clothes.
Tesco, which until now has been cut its range more than any- It’s just one of a diverse
exposed on average pricing due profit on return (POR). Where one, and has lost market posi- toolkit of tactics used by
to its huge reduction of promo- Tesco gets 26% or 46%, the dis- tion on price and promotion. shoplifters. According to the
tions. Tesco may deny it, but we counters accept 6% and 25% With no obvious place to turn, programme (in a surely not
are heading towards a price war. POR. Make up your mind, Tesco: if it chooses again to ‘roll back’ current statistic) they strike
Tesco’s approach is to demand are you a choice retailer or a dis- right into the discounters’ jaws, somewhere in Britain 200
that suppliers fund this war. It counter? This is your battle, so there may be trouble ahead for times every hour. What’s
may be a roll of the dice, but sup- you need to put down the beg- the Walmart subsidiary. more – according to the Alan
pliers should dig in early on this. ging bowl and dip both hands Partridge-esque voiceover
Tesco is contradicting its own into those pockets. David Sables is CEO of Sentinel – it is increasingly “serious,
strategic ‘balance matrix’, and But let’s not underestimate just Management Consultants organised, and violent”.
The show followed hired
guards – their codenames and
‘special skills’ shared, Top
higgins Trumps style – as they tracked
down and dealt with would-be
thieves, revealing both the
tricks of their own trade, and
those of their nemeses. Like the
reusable bag technique used
by one chancer, in which some
items are put in the trolley and
paid for, with most snaffled in
bags from another store.
Ultimately, there was little
consequence for the wannabe
thieves. The police are rarely
engaged, and most escape with
a ban from the retailers.
“When they’re forthcoming
we’ll send them on their way.
When they act up that’s when
we get the police involved,”
explained one guard. Together
with detailed descriptions
of the theft attempts – tin
foil-lined bags, who knew? –
one can’t help thinking the
documentary might inspire
rather than deter more crooks.
to contact us...
e-mail: name.surname@thegrocer.co.uk
talking shop
tel: 01293 610 +(3 Digit Extension)
letters: letters@thegrocer.co.uk
editorial
Editor Adam Leyland 263
Editor, thegrocer.co.uk Carina Perkins 240
Getting traction with buyers
Managing editor Emma Weinbren 488
news desk
News editor Ronan Hegarty 406
Deputy news editor those who fail to get heard by The problem is, good buyers have
Steve Farrell 01293 846613
Chief reporter Ian Quinn 265 retailers. a great nose for “push”, even if
Senior reporter Marianne Calnan 319
Retail reporter
Jeremy Garlick First, retailer insight. Those the seller thinks it’s hidden.
T
Lyndsey Cambridge 01293 846647 who succeed have real insight Third, those who succeed
Digital & social editor Ellis Hawthorne 468
Online content assistant
he biggest frustration we into their retailer, at individual, are good at telling stories. They
Maddie Maynard 440 hear from commercial, department and company level. hook the buyer with a narrative,
finance desk sales and category direc- They understand their custom- beyond just a load of facts. Those
Finance editor Alec Mattinson 01293 846512
tors is the difficulty of getting er’s motivations, objectives and who fail do not. They might have
buying & supplying desk
Food & drink editor Daniel Woolfson 442
traction with retailers. Getting ways of working. They know all the data, all the rationale, and
Fresh foods editor Kevin White 290 attention and getting heard. Even what the individual, department a massive PowerPoint deck. But
Fresh foods reporter Henry Sandercock 492
International trade reporter when they have great products and retailer is trying to achieve. they don’t tell a story, so they
Harry Holmes 01293 846553 and great ideas, fmcg compa- They know how they like to lis- don’t get heard.
Food & drink reporter
Abbie Dawson 01293 846516 nies often struggle to get them Buyers and buying directors
into stores. are typically very able people
features desk
Technology editor George Nott 247 If anything, the frustration is
“Those who succeed but under huge time and cog-
Special projects editor Daniel Selwood 369
subs desk
growing. There are fewer buy- have real insight nitive pressure. They arrive for
ers and buying directors, and your Zoom call in a rush. You’ve
Chief sub-editor Mark Dishman 232
Sub-editor Charlie Cook 415 they are covering bigger catego-
into their retailer been thinking about it for weeks.
art desk
Art director Michael Joslin 207
ries. Retailers, under huge pres- at every level” They haven’t thought about it at
Group Art editor Stuart Milligan 270 sure from discounters, are more all. You probably overload them
Art editor Nick Figgins 451 tightly lined up behind central with information. They have to
Designer Caitlin Watson 01293 846611
commercial
strategies, meaning buyers can ten, to talk and how they make fall back on simple questions. Do
Commercial director feel less empowered to divine decisions. Those who fail often these people understand us and
Cathy McDonagh 289 their own way forward. And have a very shallow understand- what we’re trying to do? Are they
Area sales managers
Beverley Burkett 284 now we have Covid-19, minimis- ing of these things. starting with our needs, not their
Sam Dack 453
Damien DuVivier 245
ing buyer headspace and ruling Second, they have a “pull” needs? Is there a clear story here
Mark Hayward 293 out face-to-face meetings. not “push” mentality. Those that I find convincing?
Tim Parker 217
CCM ad production
Yet we see sales and category who succeed think about what You don’t get many bites at
Kevin Porter 020 7216 6449 managers who are still success- the retailer will want to buy and the cherry. And if you can’t get
recruitment ful – absolute magicians of influ- make proposals accordingly: heard, it just won’t happen for
Commercial Manager
Alix Hunter 548
ence. We see companies who get “pull”. Those who fail think you in-store.
Key account Manager traction much more often. And about what they want to sell and
Holly Shazell 589
we see three key differences then try to build a story to con- Jeremy Garlick is partner at
events
Group Events Manager
between those who succeed and vince the retailer to buy: “push”. Insight Traction
Ellie Knight 01293 846608
corporate contacts
Managing director Retail & Manufacturing
Lorraine Hendle 243
CEO Charles Reed 242
Head of content marketing
polling station
Tracy Larner 01293 846543
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Volume: 242 Issue Number: 8459 NEXT WEEK: How difficult will it be to ensure all ● No problem
shoppers wear masks in-store? ● Pretty tricky
Vote now at twitter.com/thegrocer ● Impossible
Will
Covid-19 put
supermarket
pay on a
more equal
footing?
Emma Weinbren
W
hat do Beyoncé, Emma Watson and One thing is for sure: high levels of executive pay are
Victoria Beckham have in common? already stirring up greater levels of controversy. At the
They’ve all graced the cover of Vogue, end of last month, Tesco faced one of the FTSE 100’s
that’s what. Now there is one lesser- biggest-ever revolts against its remuneration policy,
known person who can add their name which saw CEO Dave Lewis pocket a cool £6.4m – the
to that list: Anisa Omar. Her claim to fame? She’s an supermarket’s highest annual pay packet in a decade.
assistant at the King’s Cross branch of Waitrose. It’s not the only one facing a backlash. Sainsbury’s
Her appearance on Vogue’s June issue – one that attracted criticism for handing almost £2m in bonus
featured a London Overground train driver and a mid- shares to its senior executive team less than a fortnight
wife on its two other covers – marks a sea change in after deferring its final dividend. And Morrisons came
attitude. Celebrity status is no longer the only thing under fire for proposing a 24% pension contribution
that counts. Instead, key workers are being celebrated rate for CEO David Potts and COO Trevor Strain, com-
as the real heroes, as Britain continues to grapple with pared with the 5% given to the rest of the workforce.
the impact of Covid-19. Bear in mind these pay packets were for the year
That means a massive change in perceptions of preceding the Covid-19 outbreak. The fallout from the
supermarket workers. “The whole of society has rec- pandemic is likely to intensify feelings next year, says
ognised who the key workers are,” says Roger Jenkins, Richard Lim, CEO of Retail Economics. “There’s always
national officer at GMB. “When the world comes to a a renewed focus on exec pay and bonuses when the
stop, we need people supplying food.” economy is in difficulty,” he says. “It’s not seen as the
The supermarkets have recognised that crucial job right thing to give execs huge rewards.”
with a host of bonuses and one-off increases to pay (see Particularly when those rewards are pitted against
box, p26-27). But unions argue they need to go one step the more modest hourly pay of frontline staff. “To main-
further. Having proved themselves during the pan- tain payments worth several million pounds a year to
demic, staff should get higher rewards on a more per- individual executives will look particularly insensitive
manent basis, they argue. And that could be funded by if this is contrasted with perceived underpayment of
pruning back the excesses of exec pay. workers on the shop floor,” says Luke Hildyard, execu-
Indeed, as businesses propagate the ‘we’re all in this tive director of the High Pay Centre.
together’ mantra, huge levels of disparity in pay are set He points out these workers have helped “ensure the
to become harder to justify. So could we see a Robin country can function through the crisis at considerable
Hood style shake-up of pay that takes from the board risk to their own health”. For that reason, he’s calling
to gives to the shop floor? for cuts to the top salaries to pay for an increase in
the lowest wages. “Reductions in pay for supermar- the country is fed, healthy and safe through the coro-
ket executives – who could afford to be paid quite a bit “Reductions navirus,” says Usdaw general secretary Paddy Lillis.
less and still remain very well rewarded – may have to In light of that effort, he wants to see hourly wages
be contemplated, discussed and ultimately enacted,” in pay for increased to a minimum of £10 – a rate only earned by
says Hildyard. supermarket Aldi and Lidl workers in the London area (see above).
Co-op boss Steve Murrells has already taken on GMB similarly believes shop floor workers should be
board that ethos. In April, he pledged to donate 20% of executives rewarded over and above board members. “The people
his £870,000 annual salary over a three-month period may have that have suffered and put themselves out are the ones
to the Co-op Members’ Coronavirus Fund, which goes down there serving the customers,” argues Jenkins.
towards food banks, funerals and frontline community to be Unite, which represents Sainsbury’s workers, calls
causes. Similarly, John Lewis chairman Sharon White contemplated, for “short-changed” staff to get a permanent increase to
and other members of the top team took a 20% pay cut their base pay. “In April, Sainsbury’s workers received
from April, initially for three months. M&S has can- discussed and their annual pay increase, which worked out at a deri-
celled its exec bonus scheme for 2020/21. ultimately sory 10p an hour for most workers,” says Bev Clarkson,
Not everyone has committed to going down that Unite national officer for the food industry. “Some
route, however. Aldi says it has “no plans to change our enacted” didn’t even get this paltry amount due to the nature of
approach”, while others have remained tight-lipped. their contracts, yet Mike Coupe pocketed a £7m bonus.”
Tesco promises to “give its full consideration to ensur- There are few who would disagree with the notion
ing that executive reward is fair and appropriate”, while of levelling the playing field. In reality, though, it may
Iceland has “no post-pandemic plans at present”. be tough to push through. The coronavirus has already
Whatever those plans may be, unions believe shop incurred plenty of extra costs for supermarkets. In a
floor staff should be a priority. “Millions of low-paid trading update in May, Morrisons warned it was oper-
workers have provided essential services to help ensure ating in a “more volatile trading environment, which is
costly”. That same month, Sainsbury’s said it was fork- will be little incentive to increase those “competitive”
ing out an extra £500m as a result of the crisis. “If anything, rates as the job market shifts in the favour of employers.
So raising staff wages could prove an unpalatable “With unemployment expected to rise steeply over the
prospect. Indeed, despite all the talk of raising pay, Covid has only coming months there will be a bigger pool of workers
Asda is already fighting against a court ruling that expedited a looking for jobs,” he points out.
specified it should pay shop workers the same as depot Steve Simmance, MD of fmcg recruitment company
staff. And in spring, the British Retail Consortium said longer-term The Simmance Partnership, similarly doubts wages
it was “not the right time” to push through increases to decision to will increase. “If anything, Covid has only expedited a
hourly rates. (It has since revised its position, and sim- longer-term decision to cut jobs and salaries,” he says.
ply urged that wage increases don’t put jobs at risk.) cut jobs and However, he believes there are other ways to improve
Financial services company Hargreaves Lansdown salaries” employee wellbeing. “I think where employers need to
can understand the caution around the issue. “A 10% invest money isn’t into pay packets but a clear strategy
increase in staff cost could lop up to 25% off full-year from HR around wellbeing and mental health. It needs
operating profits for the supermarkets,” points out to be made abundant and apparent to those workers
equity analyst Sophie Lund-Yates. A 10% increase in who may find their lives turned upside down.”
pay at Tesco, for example, would equate to an extra Mandy Watson, MD of Ambitions Personnel, stresses
£626.6m in costs. “It’s also important to remember the that employers must make staff feel valued – whether
grocers have taken on thousands of extra staff to help through pay or other means. “The ways in which they
manage the crisis,” she points out. “If those staff stay act towards staff at this time will also remain long after
on the cost becomes even more considerable.” the pandemic subsides,” she stresses.
There is also the issue of supply and demand. That’s a crucial point. Because supermarket staff may
Supermarkets all pay above the £8.72 hourly national not get an increase in pay but, during this pandemic,
living wage. Lim of Retail Economics believes there they have most certainly increased their value.
I
n its infancy, click & collect was billed as said they were more likely to use click & collect services
the ultimate in customer convenience. at supermarkets during the pandemic.
Pioneered in the UK by Argos at the turn For supermarkets, click & collect can mitigate the
of the millennium, the concept quickly impact of in-store fears. “It benefits grocers by offset-
caught the attention of the supermar- ting revenue lost as a result of lower customer through-
kets. They began to offer ‘order online, collect in store’ put due to social distancing measures in stores and
on general merchandise, which quickly paved the way constrained home delivery capacity,” explains Eagle
for grocery collection, too. Eye head of industry insight Miya Knights. So in the
But that enthusiasm soon waned. Big rollout plans wake of lockdown, supermarkets have significantly
at stores were slowed or spiked. While customer take- ramped up click & collect – sometimes known as buy
up remained steady, it was perhaps not the revolution online, pick up in store (BOPIS) or kerbside collection
in food retailing some had believed. As home delivery – to meet demand.
became cheaper and more widespread – some slots Tesco now offers click & collect from about 400
were available for less than £1 – the idea of trekking stores, an increase of 70 over the past few months.
to the supermarket for an online order became signifi- Sainsbury’s has ramped up availability to more than
cantly less appealing to online converts. 300 stores, an increase of 181 since the start of lock-
So heading into 2020, growth of the channel was down. Waitrose has increased the number of stores
plateauing, according to eMarketer analysis. It had offering food collections by 80 this year, taking its total
peaked, according to automated locker firm Retail to 240, more than 70% of its estate. From a trial of just
Robotics partner Marek Piotrowski, as “a curiosity, a six stores in March, Morrisons is now offering click &
nice to have”, rather than an essential service. collect pick-up from almost 280 stores as of last month.
That was until coronavirus. With online delivery Co-op, which launched its online shop last year, has
slots initially impossible to secure – at least within rea- “rapidly accelerated the rollout” of click & collect and
sonable timeframes – and risk-averse shoppers avoid- is on track to offer it from more than 650 stores by the
ing stores, click & collect rose again as a crucial option. end of this year. Asda’s focus on growing click & col-
But can it last? Can it be made lucrative? And where lect had started before the pandemic, and it currently
does it go next? offers the option at 470 sites.
Click & collect has proven a win-win during the cri- Speed is a key selling point of these sites. Asda led
sis. For customers, it offers the holy grail of avoiding the way with the rollout of Express Click & Collect in
the risks of a physical store, without the long wait for January, which allows customers to shop the supermar-
a home delivery slot. Indeed, more than four in 10 UK ket’s full range online and collect it within one hour of
consumers surveyed by retail SaaS provider Qudini placing an order. It seems to be hitting the mark.
Morrisons
Number of collection sites: 280
Format: Orders brought out from
stores to waiting customer cars.
Staff place items in boot.
Minimum spend to use: £40
Fees: Collection slot cost varies
depending on time and day, typically £1
Time to collect items: Two-hour slots
Collection points
Rapid turnaround isn’t the only way of delivering con-
venience, though. Supermarkets are also exploring
new collection points. These largely remain on their
premises – the trial at Underground stations proved
a harsh lesson (p31) – but with the use of technology.
Tesco is trialling a locker site where “customers are
able to enter their order number into an interactive
screen in order to open the locker door”. Asda – which
has over 80 lockers across its estate – is installing more.
Different configurations are also being considered.
While collection spots – either lockers or a van – are
typically fulfilled from the store, Tesco is now stock-
ing some direct from a CFC. Sainsbury’s, meanwhile,
is converting several convenience stores into “mini ful-
filment centres to make sure we can meet demand for
click & collect”, it says.
However they are filled, lockers seem to be big news.
Avery Berkel, which makes collection lockers for Asda
and Intermarché in France, has witnessed an
“enormous surge of interest” in its products through- negative figures in home delivery. That loss could be as
out the pandemic, says the company’s click & collect “For the much as 15%, mainly due to last mile costs.
product manager Lee Rasberry. “Before the pandemic, many retailers hoped con-
Similarly, locker-maker Retail Robotics – whose retailer, click sumers’ unhurried embrace of online grocery would
locker banks feature a separate store for frozen items & collect give them a few years to develop a business model that
– is gearing up for “mass implementation”. Adoption wasn’t so dilutive. Now they need to find a much more
is heading towards a “tipping point” and it has a pilot offers a much rapid fix for the broken economics of the channel – and
“with one of the biggest UK retailers”, says Piotrowski. more cost- at the same time ramp up their e-commerce capacity
Gartner analyst Tom Enright believes it is the right to meet the surging demand,” the consultancy says.
time to move fast. For him, the “significantly increased effective Plus, there is the risk of losses spiralling further in
consumer demand” must be met by the supermarkets. model the UK. “This pandemic will have heavily accelerated
“They should approach the rapid deployment or expan- the amount of delivery vehicles on our roads and I
sion of their click & collect offering in a way that carries than home think consumers and the government are starting to
a higher level of risk of failure than they may be accus- delivery” understand the negative effects of this,” says Avery
tomed to. Such an approach is required to meet imme- Berkel’s Rasberry. For that reason, the Department for
diate demand for the service,” he says. Transport was last month revealed to be considering a
If the performance of click & collect so far is anything “mandatory charge” on delivered goods ordered online
to go by, the risk of failure is relatively low in any case. in a bid to reduce congestion and pollution.
Asda’s click & collect volumes are up by more than Click & collect promises a way around those issues.
200%. Sainsbury’s says it is “fulfilling more click & col- “For the retailer, it offers a much more cost-effective
lect grocery orders in a single day than we were fulfill- model than home delivery, especially unmanned lock-
ing in a full week prior to lockdown”. ers with very low labour overheads,” says Rasberry.
It’s not just about volumes, either. Click & collect can Bain & Company agrees it is a way to avoid the last
also help with the age-old problem in online grocery: mile logistics challenge that “bedevils” delivery ser-
profitability. That’s something that continues to elude vices. Granted, it still isn’t profitable – but “the bleed-
home delivery, which has come to the fore at a time ing is less severe”. The margin is estimated to be about
when online accounts for 11.5% of all grocery sales –5% for a grocer that fulfils click & collect orders with
according to Kantar and 13% according to Nielsen. its own picking from a regular store without charging
Bain & Company analysis last week revealed the typ- a fee. More encouragingly, click & collect orders picked
ical in-store operating margin of 2% to 4% turned into from a dark store or by a third party should break even.
Automation
There are ways to improve the economics. Picking from
a micro-fulfilment centre (MFC) boosts margins to 2%,
Bain & Company estimates. It is noteworthy that these
centres tend to be highly automated. “The more auto-
mated the supply chain processes supporting the click
& collect journey, the faster, slicker and more profitable
it is likely to be,” says Knights.
MFCs can “improve profitability of both the store and
online by shifting manually intensive and error-prone
in-store picking systems to more demand-generation
based, automated ones”, she adds.
Some technology vendors are even pitching a store
concept that is built around click & collect to fur-
ther improve margins. Alert Innovation – which sup-
plies Walmart’s picking bots – last year revealed its
‘Novastore’ concept. It features a floor for customers soon entered the pilot too.
to pick their own fresh products, while robots build Down the tubes: Between them, the retailers
their click & collect basket of other items – pre-ordered
online or on in-store touchscreens – at the same time. what went clocked up more than 10,000
orders in first 10 months.
“I’m more convinced than ever it’s the answer and will
drive a paradigm shift,” Alert’s CEO John Lert says.
wrong with TfL called it “a tremendous
success for all involved”. Expansion
Don’t just take his word for it. Supermarkets also
expect the click & collect boom to continue post-pan-
Underground to more stations seemed
inevitable.
demic. “It has been a great way to increase options for
customers to shop with minimal contact, and while we
station click & But within a year, all the
Underground station pick-up
see some of that demand dipping from current levels we
do see it continuing to be above pre-Covid levels longer-
collect? points had been abandoned. So
what went wrong?
term,” a Waitrose spokeswoman says. Sainsbury’s also The concept made good sense. “Our London customers have
says it expects usage to grow. Consumers would order groceries told us they prefer the click &
That doesn’t mean retailers can simply install a col- online and pick them up at their collect service at our stores and
lection point and rest on their laurels. As customers local London Underground station online grocery shopping,” a Tesco
are less loyal than ever, there are gains to be made by on the commute home. spokesman told the Evening
improving the experience, says Knights. “The collec- Launched in 2013, the Transport Standard in 2015.
tion process should reflect the best in-store customer for London trial piqued the interest Poor take-up was one factor.
experience, geared for speed, convenience and excep- of several supermarkets. Asda Another was the finding that locals
tional service,” she argues. “Given more customers are moved first, launching the service living close to the station – not
currently using click & collect because they can’t get at six station car parks, which commuters – were using the
a delivery slot or want to bypass the queues, making soon doubled to 12 sites. Then lockers rather than driving to the
customers wait on arrival to collect their goods is prob- Sainsbury’s followed suit, with nearest store.
ably the greatest challenge,” she says. seven sites. Not wanting to be Other remote collection pilots
Geo-location – an opt-in feature that alerts stores outdone, Tesco upped the number have been trialled and abandoned.
when a customer is approaching the store, so their of stations offering collection of its But the concept is not dead.
order can be readied – has been used in hospitality set- groceries from eight to 14. “The locker needs to be
tings and could be adopted for click & collect grocery Tesco’s then-London chief, convenient for customers,
too. “The technology exists,” Knights says. “Providing current group chief commercial but also fit effectively into the
dedicated collection and loading areas for click & col- officer Andrew Yaxley, considered supermarkets’ operations, along
lect customers within or near the store is also impor- it the “perfect way” for commuters with being efficient to load and
tant.” Loyalty programmes and rewards for customers to shop. easy to support,” explains Avery
could also be used to shift customers from delivery to Even Ocado joined in, upending Berkel’s Lee Rasberry. “As demand
the door towards click & collect. its service model and placing vans and adoption increase, we will
If click & collect is to be a long-term trend, rather than for collection at Ealing, Ruislip, also see a development of remote
a short-term blip, it is well worth getting it right. Eastcote and Woodford. Waitrose locations.”
British Honey Co
takes Keepr’s brand
into hard seltzers
The British Honey added a “natural sweet-
Company is expand- ness and a deliciously
ing its Keepr’s spirits balanced taste”.
brand with a trio of hard The drinks are aimed
seltzers. at those looking for
The hard seltzers (4.2% lower-alcohol, low-cal-
abv) are made with a orie options, contain-
potato vodka base and ing up to 90 calories per
100% natural ingredi- 250ml can.
ents, said Keepr’s. British Honey Co com-
It has launched three mercial director Oliver
flavours – Pear & Ginger, Williams said the range
Pomegranate & Rose would bring new con-
and Passionfruit & sumers into hard seltzers
Elderflower – each con- and “trade them up from Waitrose and Aldi have both pledged never to use chlorinated chicken in any product
taining a hint of the com- standard offering to our
pany’s signature British premium range”.
honey, which it said They launch this week
(rsp: £2.75/250ml), with
cases also rolling out
Supermarkets told
via the British Honey Co
shop and Amazon.
It comes as the Keepr’s
brand made its debut in
to clarify position
the low and non-alco-
holic drinks category last
month with an ultra-low
alcohol gin and tonic-
on food standards
Keepr’s is launching three
4.2% abv hard seltzers style RTD. Harry Holmes product containing chlo- own label, private label,
Supermarkets must drop rinated chicken and hor- and manufactured foods.
the “slick PR” and clar- mone-treated beef, while Judith Batchelar, direc-
ify their position on sell- Waitrose said it would tor of Sainsbury’s brand,
Heineken criticised ing lower-standard foods
following potential post-
not lower its own exist-
ing standards on “any
told the group in a private
letter that its suppliers
and veggie game with Gin & Tonic with a Twist of Orange. They will hit
Tesco on 31 August (rsp: £2/250ml).
new trade routes to the dairy co-op rose by 4% to £282.8m for the year
ending 31 March 2020, with operating profit also
up 4% to £7.5m. Its financial recovery in recent
The
lockdown
look
G
grances, razor blades and deodorants. had taken to sporting a beard since lockdown
uys – do you have the lockdown This was largely down to “the discretionary – while a further 16% of the 747 respond-
look? It comprises a flaky or nature” of these products, says Kantar ana- ents had grown one but since shaved it off.
greasy face, questionable body lyst Matt Maxwell. Men working from home That means nearly four in 10 British blokes
odour and, most significantly, a and social distancing haven’t felt a pressing have dabbled with facial hair during the
bushy beard that would make Brian Blessed need to smell nice or shave. Deodorant has pandemic.
green with envy. And it’s a style that blokes lost 19.1% of unit sales, while razor blades “A mix of home-working and furloughs
across the UK are rocking. They’re letting – the category’s priciest sector – are down have meant several men have reassessed
their grooming regimes slide, and their bath- 16.6%. “We’ve seen a huge growth in people their grooming style,” says James Gray,
room cabinets go bare. growing beards,” Maxwell adds. head of insights & category development for
At least, that’s what the supermarket sales Indeed, a recent Streetbees poll for The north-west Europe at Wilkinson Sword owner
data shows. While overall value sales of toi- Edgewell. “This has resulted in a spike in the
letries grew 6% during the pre-lockdown number of ‘beard’ and ‘moustache’ searches
stockpiling spree, male grooming products on Google. Looking at search terms around
remained more or less flat compared with
“A mix of home-working grooming, the number of searches between
the same period a year ago [Kantar 12 w/e 22 and furloughs means February and April in the UK doubled.”
March 2020]. Facial hair is a lockdown trend that makes
And the situation for fella-focused brands
men have reassessed sense, believes Dave Lawrence, planning
got hairier as shoppers settled into their sed- their grooming style” partner at creative agency Brave. “Let’s
entary lives. Sales dived 16.8% in the 12 weeks not forget that beards were proving
In-store shoppers
● The male grooming price. Deodorant is up 3% at home, lack of exercise Beard products aside, though, the lockdown
market lost £31m in the 12 and razors are up 3.1%. and sunlight, men’s facial has made life hard for male grooming. One
weeks to 14 June, compared ● Only shaving preps skincare is likely to see a major issue is the lack of in-store shoppers.
with the same period in have got more expensive delayed uplift due to skin The category’s value has “been mainly
2019. That’s a value decline on average. The sector is dullness, roughness and dragged down by the pharmacy side because
of 16.8%. At the same time, up 9% – though it is much sensitivity,” she says. retailers like Boots and Superdrug haven’t
unit sales fell by 17.4%. smaller in value at £12.5m. ● Indeed, Hawkins & enjoyed the footfall your Sainsbury’s and
● The category’s two ● While skincare is down Brimble is already seeing Morrisons have” says King of Shaves founder
largest sectors – deodorant 9.2% in volume, Kantar “strong demand for men’s Will King.
and razors & blades – analyst Steph Filletti skincare from retailers” Even in the mults, take-up of male groom-
suffered volume slumps predicts a turnaround in says CEO Stephen Shortt. ing has slowed. That’s not down to fewer visi-
of 19.1% and 16.6% its fortunes. “Due to the The brand is set to launch tors, but fewer promotions.
respectively. Their total long periods of staying into Boots next month. Offers are “of particular significance”
value over that period was for the category and sway purchase deci-
£97.8m. sions, says Chris Adkins, CEO of Shopper
● These categories have Intelligence. Consumers “expect the shop
seen two of the greatest Kantar’s Worldpanel FMCG service monitors consumer behaviour across Great Britain. Its primary panel tracks
take-home purchases of 30,000 demographically representative households. Data on consumption habits,
to be a quick grab-and-go experience” of a
increases in average pack nutrition and out of home sales is collected through subsidiary panels. Visit kantarworldpanel.com for details. market that is otherwise “low engagement”.
“During lockdown,
brands have definitely
been focused on
consumers’ wellbeing”
Broadhurst resigns
Steve Farrell A spokesman said in
Iceland’s joint MD Nigel February the aim was
Broadhurst has stepped to “ensure we are run-
down after more than five ning our business as effi-
years in the post. ciently as possible”.
Broadhurst resigned Broadhurst has spent
on 10 July as director of much of his career at
both Iceland Foods and Iceland, first start- One of the leading
Iceland Topco, according ing as a buyer in 1983. organic whole food
to newly filed documents After a seven-year stint trading companies in
at Companies House. away from the frozen Europe, Lovenature
It comes a month after food chain, at Hibernia Superfoods is looking
Iceland founder and Foods, Kwik Save and for a passionate, driven
executive chairman Broadhurst is chair of the British Frozen Foods Federation Somerfield, he rejoined sales representative with
Malcolm Walker and CEO in 2005 at the request of great communication
Tarsem Dhaliwal took business to 100% own- Walker. He is cur- Malcolm Walker. skills and excellent
full ownership of the fro- ership by Sir Malcolm rent chair of the British BFFF CEO Richard ability to close deals.
zen food chain, buying Walker, Tarsem Dhaliwal Frozen Foods Federation, Harrow recently credited The successful
investment firm Brait’s and their related parties,” a post he is due to hold Broadhurst with being candidate will be
63% share in Iceland an Iceland spokesman until at least November an “instrumental” fig- responsible for the
Topco. confirmed. this year. ure in shaping the fro- development and growth
“Nigel Broadhurst has Broadhurst had been a His resignation from zen food industry. “Nigel of B2B trade sales in the
stepped down from the director of both compa- Iceland also comes has incredible focus and northern Europe region,
boards of Iceland Topco nies since 2012. He was months after the busi- the ability to be highly as well as the day-to-day
and Iceland Foods fol- Iceland’s buying direc- ness confirmed it was creative and innovative,” management of some
lowing the recent buy- tor before becoming joint reviewing its man- Harrow told The Grocer current accounts.
out that returned the MD alongside Richard agement structure. earlier this year. Interested? See p44.
my alternative cv
What was your first job? single you bought? Sometimes you’ve just have on a desert island?
I was a shop assistant in Wannabe by the Spice got to jump. And some- Matches so I could light a
a local science store dur- Girls. thing I heard Tony fire and cook.
ing the weekend and How do you describe Robbins say many years What animal reflects
after school I made piz- your job to your mates? ago that’s always stuck your personality? I had
zas at a pizza delivery Essentially, we’re a mod- with me: life will pay you to ask my mum to answer
shop. When I was 16 I ern-day food service what you ask of it. this one – she said an
started an apprenticeship making delicious plant- If you were allowed one eagle. I see things from
as a chef alongside my based and 100% natural dream perk, what would the bigger picture, have
schooling. It was a very meals and snacks. it be? An unlimited sup- an eagle eye for detail,
busy childhood! What is the most reward- ply of our Kimchi & Miso and like my freedom and
What’s been your worst ing part of your job? Noodle Soup. to travel.
job interview? I couldn’t Working with our amaz- Do you have any pho- What has been the most
Stephanie Johnson pick my worst job inter- ing team, which is pre- bias? A wet dish cloth embarrassing moment
Founder & co-CEO, Pollen view, but my worst job dominantly a women-led and a dirty sink. Both in your life? One of our
& Grace, on the Spice Girls, was for the two months workforce, and seeing really creep me out. first investor meetings,
eagles and dim sum of my life I didn’t work their personal growth. If you could change one when I didn’t know what
with food. I took a job at What is the least reward- thing in grocery, what EBITDA was. Needless
a car parking firm, need- ing part? Food safety would it be? A move to to say, I am very familiar
less to say it was a very paperwork – essential natural products – scrap with it now!
valuable lesson to always but very, very dull. the preservatives and What would your death
do what you love. What is your motto stabilisers. row meal be? All the dim
What was the first music in life? I have a few. What luxury would you sum I could possibly eat.
L
Harry Holmes meets “the expectations ast week, after years of hard work, Rubies
Former FSA CEO Tim and ambitions of all the in the Rubble launched our hero product
Smith has been con- consumers, campaign- Tomato Ketchup into 287 Waitrose stores.
firmed as chair of the ers and farmers who have In this column I’m going to share some insight
new trade and agri- demonstrated over recent into how, as a small brand, we managed get over
culture commission to months how important the hurdle of getting a product on to a shelf.
advise on post-Brexit this issue is.” We have a long relationship with Waitrose,
agriculture trade policy. But the RSPCA, while which is famous for supporting small and local
The commission will welcoming Smith’s inde- suppliers. In 2013, after reading about Rubies in
consider policies the gov- Smith has experience at pendence, said the com- the Rubble in the Times, they got in touch asking
ernment should adopt Tesco and Arla Foods mission was a “Trojan us to be a local supplier. Their local buying team
to ensure UK farmers do horse”. “We fear this listed us in 20 stores and really held our hand:
not face unfair competi- Manger. He has over 40 industry-heavy commis- advising us on labels, helping us set up barcodes,
tion from abroad, while years industry experi- sion will not have animal and assisting us with booking delivery slots.
“advancing and protect- ence, including as CEO welfare at its heart and We developed Tomato Ketchup last year
ing British consumer of Arla Foods UK. “This instead will be a tool for as a strategic choice. We wanted to evolve
interests and those of commission will bring a deregulation,” said CEO our product range to include more everyday
developing countries”. clear-eyed perspective on Chris Sherwood. products, enabling us to have an even bigger
Other members include what is fair and works for Sarah Williams of environmental impact. We saw a gaping hole in
former trade minis- consumers, farmers, food Greener UK said the com- the category for a sustainable offering.
ters and food industry producers and animals,” mission was “little more It tastes like tomatoes, but a third of our
representatives. he said. than a fig leaf for the gov- ketchup is made of surplus pears. So we’re using
Former Tesco techni- NFU president Minette ernment’s continued fail- food surplus, and offering a ketchup with twice
cal director Smith is a Batters said Smith’s role ure to commit in law to the fruit and 50% less refined sugar than leading
non-executive director would be “critical” in banning substandard brands. Our goal is to provide consumers with
at Cranswick and Pret a ensuring the commission imports”. the choice to make a sustainable purchase.
To re-engage the Waitrose team and encourage
them to see us as a brand that can serve the
nation (not just a few local London stores), last
Wilko appoints Karen Mackay year we entered their Sustainability Awards. This
was a great opportunity to widen our stakeholder
B
Some of those behind the
reprehensible uptick in ravo, BoJo! Better late than never, I say.
shopworker abuse ought It was high time we made face masks
to spend 10 minutes obligatory in store. I mean, have you
watching a new short SEEN the state of some of those shelf stackers?!
documentary, 294 (avail- Should have been done years ago. And the move
able on YouTube). was brilliantly choreographed, didn’t you think?
Directed by Dome ‘Fishlips’ Gove teeing up the PM’s announcement
Karukoski, who made on Sunday by saying he didn’t think masks
Tolkien, the title refers to were necessary, immediately followed by Boris
a study that ranked gro- and describe how their But there are positives strapping a footballer’s jockstrap over his nose.
cery workers as Finland’s jobs have got harder. – chats with isolated cus- Full marks for cabinet co-ordination, as ever.
294th most respected Some are feeling the tomers and the togeth- And what would we do without lovely, fragrant
profession, out of 379. weight of extra deliveries, erness of their teams Waitrose, readers? With their fingers on the pulse
The film features tes- busy stores, and social provide some solace. of the basic needs of the nation, Margot & Jerry (I
timony from several distancing. Customer “This situation has assume they’re still in charge) have brought in a
Finnish workers. They gripes about slowness affirmed the idea that my range of designer masks so that even if a Waitrose
speak honestly and mov- don’t help – especially work is important,” says shopper inadvertently strays into somewhere
ingly about their fears when they get too close. one. Too right. really lowbrow like Sainsbury’s, everyone will
treat them with due deference. I’ve ordered three
– with the Oscar de la Renta logo emblazoned
Russians panic Amuse bouche across them. Well, one has standards to maintain.
Meanwhile, I’ve been touring the country in
over ice cream fails to amuse the Frexit electric vehicle (I’m assuming my V12
Russian ice cream maker Jokes about beer brand Bugatti does have some electrical components)
Chistaya Liniya is in hot Corona are now tired, merrily closing down farms. Happily, carrots
water in its native land, but is the world ready for can’t get Covid-19, so don’t worry your pretty little
after the chairman of the corona canapés? heads, darlings. Think of it as good practice for 1
Union of Women accused Fancy Chicago res- January, when Priti ‘Vacant’ Patel’s immigration
it of ‘promoting homosex- I can eat a rainbow: some taurant Alinea served a plan will achieve Priti much the same thing.
uality’ with its Rainbow fabulously gay ice cream virus-shaped unamuse- Yes, darlings, it is time to reap the Brexit
ice cream. Sigh. bouche in the form of a harvest in the form of another eye-wateringly
The brand’s VP “traditional values”. coconut ash shell spiked expensive ad campaign, £705m dropped on
defended the treat… but So he can stick it as with freeze-dried rasp- screwing up the border at Dover and a 27-acre
was at pains to distance well! We’re with the berry spike proteins – lorry park off the M2 as part of our high-tech new
it from any LGBTQ+ asso- Moscow newspaper that to remind people of the chill chain. We voted for this, dears.
ciations, claiming it was sarcastically called for threat, the chef reckoned.
about “sunshine after the actual rainbows to be Still, judging from the
rain” and that he was pro outlawed in Russia. Instagram backlash: no.