As more and more shoppers now seek value while buying essentials, loyalty and reward platforms are emerging as great tools for independent convenience retailers not only to boost sales and footfall but also to beat multiples in their own game, Asian Trader has learnt.
In the light of the cost-of-living crisis and otherwise too, Brits are increasingly becoming cost-savvy. They are on the constant lookout for discounts and schemes to cut down their monthly expenses and are not shying away from signing up to loyalty schemes, a fact which supermarket giants have been milking for years.
Retail analysts at Mintel spill the beans: a staggering four out of five shoppers are card-carrying members of at least one loyalty scheme. Tesco's Clubcard reigns supreme, dishing out instant rewards that give them a leg up. But Sainsbury's isn't far behind, tempting shoppers with exclusive, time-limited offers tailored to their favorite purchases.
Also, their numbers are constantly rising; the number of Tesco Clubcard members rose above 20 million while Sainsbury’s added 3 million new Nectar card customers last year. Both the supermarkets are in the lead when it comes to offering the biggest range of on-the-shelf discounts, though other supermarkets are now racing to bolster their own loyalty schemes.
While offering loyalty and reward schemes were once limited to supermarkets only, times have now changed. There are a slew of loyalty schemes which small local stores and corner shops can make use of to offer the same privilege to their customer base.
Several industry reports tend to point out that Brits want better prices. A recent research from shelf edge automation Pricer, almost nine in ten shoppers now actively seek out more deals and discounts when shopping for groceries.
Reward schemes can help independent retailers to compete with the bigger supermarket chains by offering at-par discounts to shoppers who in turn tend to return to the store for better value as well as for availing rewards. Plus, a better understanding of customers can only help stores to position products better suited to their buying habits and requirements, thus helping them increase shoppers’ basket size.
A leading name here for independent stores is Jisp, whose loyalty platform utilises Augmented reality (AR) voucher technology to bring discounts on branded products. By offering a combination of savings, rewards, and community-building opportunities, platforms like Jisp are transforming the whole trading scenario.
Alex Rimmer
Alex Rimmer, head of marketing & communications at Jisp, explains how Jisp stands apart from its peers.
“Jisp's AR solution, Scan & Save, reads product barcodes and presents exclusive promotions, which customers can then save and redeem with their mobile phones. It helps retailers grow in-store sales and, due to vouchers only being redeemable in the stores they were unlocked in, build loyalty.”
Rimmer added that the Scan & Save app not only offers a loyalty and reward scheme for independent retailers like 6p back on every Scan & Save product purchased, it also offers money-off vouchers and rewards to shoppers that can only be used in a specific local store, thus ensuring shoppers’ loyalty to local businesses.
“It is free to retailers, drives increased sales, basket size, spend, frequency and shares brand investment with the retailer, something no other platform offers. With the value of the discount funded through the app and promoting brands, the retailer receives full RRP on the product while also receiving a margin enhancing 6p for every tap and redemption of a product in store.”
For customers too, Rimmer stated that Scan &Save is one of the easiest and most rewarding ways they can save and earn money while shopping locally.
“Customers download the Jisp Scan & Save app, which is completely free of charge. Once they’ve registered an account they can search for their nearest participating retailer and see what special promotions are available in store. They can then either tap and save the vouchers in their virtual app wallet or visit the store and scan promoted product in store to unlock vouchers. These are then redeemed at the till and the saving taken off the value of their goods," Rimmer told Asian Trader.
Rimmer added that the big difference between Jisp and its competitors is that the loyalty scheme cost retailers and shoppers “absolutely nothing” but pass on rewards through a brand revenue share model. They connect customers' mobiles with physical shopping environments and products, driving more customers to stores, increasing sales, footfall and repeat visits.
Another emerging leader in the convenience store loyalty world is MyDD Points that offers a multi wallet program wherein points earned at a particular store can only be redeemed at the same store.
Founded in 2018, MyDDPoints aims to help communities thrive and remain vibrant by strengthening the bond between local independent stores and their customers.
Konesh Kandiah, CEO of MyDDPoints, said, “Local corner shops implementing a loyalty program is not just about increasing sales; it's about building a community and establishing a shop as a vital part of the local economy.
“MyDDpoints help maintain a competitive edge by enhancing customer satisfaction and loyalty, which are crucial for long-term success in a community-centric business environment. They also provide valuable information on customer preferences and buying habits, which can guide inventory management and promotional activities to accomplish short-term goals," Kandiah told Asian Trader.
In MyDDPoints, customers either scan a QR code at the point of sale or provide their mobile number to ensure points are added to their account. Points can be redeemed for discounts, products, or vouchers within the app, which can be used during future purchases.
“More importantly, shoppers get to know about the deals on offer based on their regions,” Kandiah told Asian Trader.
The newest kid on the block here is Snappy Rewards, a new loyalty scheme launched by Snappy Shopper.
Andrew Baker, Head of Product Growth at Snappy Shopper, states that the company took the plunge into loyalty schemes as an answer to calls from retailers.
“Our retailers and our customers have been asking us for this (reward scheme). We listened and so we delivered, we’re excited to see this live and being used by both sides of our marketplace.”
For Snappy Rewards, Snappy Shopper has built a feature that enables retailers to reward their loyal customers based on what they spend at their store each month.
Baker explained to Asian Trader, “Using an intuitive interface, retailers can easily set any number of reward tiers for the month, offering free products, free delivery or money and percentages off future orders (for example spend £75 in the month for a free bottle of Coca-Cola). Reporting is built in so retailers can see rewards created, redeemed and the impact on sales.”
Snappy Rewards is into its third month of rollout, with around 15 per cent of its retailers opted-in and are using Snappy Rewards at their stores. Early indications are extremely encouraging with uplift sseen in customer spending, orders and sales, Baker added.
Looking good
While loyalty was more of a supermarket thing, shoppers are now warming up to the idea of availing rewards at their local stores too.
Jisp experienced a record year in 2023 finishing the year with sales for its retailers up 327 per cent on the previous year. This trend has continued into 2024 earning retailers almost £1.5m in the first quarter of 2024, up 104 per cent on the same period last year. The number of stores trading with Jisp in 2023 was up 62 per cent on the previous year, and it has continued to add stores to its partnership in 2024 with top independent retailers such as Kash Retail, Sudi Stores and Pak Supermarkets joining-in.
Retailer Harmeet Singh, who runs Nisa Local in Convent Road, states, calls Jisp a “game-changer”, saying the discounts it provides not only attract more customers but have significantly boosted his store’s turnover.
Retailer Satty Nijjer, who runs Crest Store, says, “We run very competitive in-store promotions and many of these are also available on Jisp, meaning the customers get a ‘double-discount’.”
Elsewhere, Best Food Megamart in Wembley, Premier Express in Liverpool and Sambai Express in South Harrow are few names that vouch for MyDDPoints, saying it has increased their footfall as well as expanded the existing customer base.
Kandiah told Asian Trader how the response of MyDDPoints has been “positive with increasing uptake by both consumers and retailers”, adding that “it stimulates customer retention, enhances customer lifetime value, and increases sales basket value”.
For instance, retailer Girish Jeeva managed to increase his Glasgow-based Premier store’s footfall by 25 per cent and sign up over 1000 customers actively using the loyalty card within just three months after the recent introduction of MyDDPoints.
Snappy Rewards is also seeing a warm welcome.
Baker from Snappy Shopper said, “We’re into our third month of our rollout, with around 15 per cent of our already retailers opted-in and using Snappy Rewards at their stores. Early indications are extremely encouraging with uplifts in customer spend, orders and sales.”
It’s been just three months for Nick Kooner, owner of Keystore More at Prestwick, but figures speak for themselves.
Kooner said, “Average customer spend, average order per customer has increased and the stores’ gross merchandise value has also increased double figures.”
Win-win
After seeing a good response in convenience retailing, Jisp recently expanded into the world of wholesale as well, offering a similar scheme to wholesalers enabling them to reward their retailers.
Confex Savings Club powered by Jisp is a wholesale specific loyalty platform giving wholesalers the ability to reward retailers for purchasing through their business, generating their loyalty, thereby increasing earning potential for the wholesaler and offering cost savings and rewards to retailers. It is an industry first and completely unique to the wholesale sector.
Confex Savings Club Powered by Jisp operates in much the same way but the promotions, savings and rewards go to the retailer. This further enhances their margin on in-store sales of products through Scan & Save.
While lower prices for shoppers and more customers for retailers sound like good news for everyone, regulators are not so sure. Amid a wider drive to weed out any profiteering in the grocery market, this month the Competition & Markets Authority (CMA) has begun a review of how grocers are using loyalty card prices.
The investigation is looking particularly at whether customers at supermarket giants felt forced to sign up to loyalty cards and whether the system risked excluding any groups.
Whatever the outcome of the investigation, it is evident that to stand out in the sea of competitors, independent convenience stores must bring something new to the table that customers can’t find elsewhere.
There is a clear opportunity for retailers to complement their personal touch with new-age digital tools to further enhance their consumers’ in-store experience. Easy-to-manage digital schemes can bring long-term loyalty, particularly when times are hard, and people are more conscious of where they choose to shop.
Retailer Marks & Spencer forecast "further progress" in the balance of the year after reporting a better-than-expected 17.2 per cent rise in first-half profit, helped by market share gains, adding to evidence its latest turnaround plan is working.
After over a decade of failed revival efforts, M&S under chief executive Stuart Machin is reaping the rewards of a costly programme to improve the value and quality of its food and clothing, overhaul its store estate, upgrade its technology and e-commerce operations and modernise its supply chain.
The group made profit before tax and adjusting items of £407.8 millionin the six months to 28 September - ahead of analysts' consensus forecast of £361m and the £348.m made in the same period last year.
Revenue rose 5.7 per cent to £6.48 billion, with food sales up 8.1 per cent and clothing and homeware sales up 4.7 per cent.
"In the first five weeks of the second half overall trading remains on track and we are confident of making further progress in the remainder of the year," M&S said.
Prime minister Sir Keir Starmer has dismissed need for a March 2025 deadline for compensating Post Office Horizon scandal victim, saying "an arbitrary cut-off date could result in some claimants missing the deadline".
In a response to Sir Alan Bates' call for a March 2025 deadline, Sir Keir Starmer's spokesperson today (5) stated that there would not be a deadline imposed.
"What we don't want to do is set an arbitrary cut-off date which could result in some claimants missing the deadline," the spokesperson said. "We obviously don't want to put pressure on claimants and put them off contesting their claim."
However, victims involved in a landmark case against the Post Office that ended in 2019 "should receive substantial redress by the end of March and we are doing everything we can to achieve that goal", the spokesperson added.
Earlier today (5), Sir Alan was giving evidence to the Business Select Committee when he told MPs that he has twice written to the Prime Minister in the past month to say "it needs to be finished by the end of March 2025".
"I never received a response," Sir Alan said, adding, "Deadlines do need to be set. People have been waiting far too long."
Sir Alan first wrote to the PM on Oct 2 and again a few days ago, urging him to make sure victims get full financial redress by March next year.
“People have been waiting far too long, over 20-odd years, there’s over 70 that have died along the way in the GLO group. There are people well into their 80s now that are still suffering. They’re still having to put up with this as well. They shouldn’t. They really shouldn’t," he said.
Bates himself has twice declined compensation this year, saying the first offer in January was "cruel" and "derisory", and about a sixth of what he had claimed.
When asked today by Liam Byrne, the committee chair, whether he would consider crowdfunding to return to court, Sir Alan said, “I would never say never.”
Legal action was one of several options his campaign group was planning to discuss at a meeting in the coming weeks, he said.
“I know that if we decide to go down that route we are going to halt the current scheme, and it’s going to be at least six, 12 or 24 months before it moves forward in that direction," Sir Alan said, adding: "That might be a choice people are prepared to take."
More than 900 subpostmasters were prosecuted between 1999 and 2015 after faulty Horizon accounting software made it look as though money was missing from their shops.
Appearing alongside Sir Alan were former subpostmaster Dewi Lewis, who was jailed for four months after being wrongfully convicted of theft from his branch, and Jill Donnison, a claimant who worked in her late mother’s branch.
Donnison criticised some of the questions she had been expected to answer as part of her efforts to seek compensation as “long-winded and impossible to answer”.
She said claimants were expected to know how much they had lost even though key data was missing from the records, with documents provided by the Post Office “practically illegible”.
Convenience store body has expressed concern over licensing scheme for retailers to sell tobacco, vape and nicotine products in England, Wales and Northern Ireland under Tobacco and Vapes Bill introduced in the Parliament today (5), saying that the licensing scheme has been outlined without any consultation with the retailers who will be most affected by it.
The Bill confirms the Government’s intention to create a "smoke free generation" by phasing out the sale of tobacco products to anyone currently aged 15 or younger. The generational ban will come into force in 2027, meaning that there will be a single date that retailers have to reference for age restricted sales on tobacco – rather than checking if a customer is over the age of 18.
The Bill will also include powers to introduce a licensing scheme for retailers to sell tobacco, vape and nicotine products in England, Wales and Northern Ireland, and will introduce on the spot fines of £200 to retailers found to be selling these products to people underage. The licensing scheme, which has been outlined without any consultation with the retailers that will be most affected by it, includes the potential to limit the number of businesses in an area based on their proximity to other retailers in the area as well as other conditions determined by local authorities.
ACS chief executive James Lowman said, “A licensing scheme has the potential to help tackle the illicit market and punish those who sell to children, but unless properly structured it could also prevent legitimate traders from operating based on the presence of other outlets in the area, or the specifics of where that store is located. This requires detailed consultation with local shops and other stakeholders, and none of this has taken place. We now need proper discussion of the detail as regulations are drafted, or we fear that this legislation will significantly impact investment, growth and service provision in our sector.”
Other measures in the Bill include a ban on vape advertising and sponsorship, as well as powers to restrict the flavours, display and packaging of all types of vapes, as well as other nicotine products.
The Bill follows confirmation last month that the Government is planning to go ahead with a ban on disposable vaping products, which will come into force on June 1st 2025.
Lowman continued: “The Tobacco and Vapes Bill will require retailers to make significant changes in their businesses, both on age restricted sales processes and the way that their stores are stocked and managed. It is essential that the Government provides retailers with clear guidance on the rules, and communicates the changes not just with retailers, but with the public as well.
“The introduction of £200 fines to act as a deterrent for retailers selling products to underage customers is welcome, but we are concerned that there is not enough enforcement right now to deal with the rogue operators in the tobacco and vaping market. Trading Standards need significantly more funding to be able to make a difference through targeted local enforcement, not just against those selling to young people, but also those who sell illicit products.”
Associated British Foods (ABF), the owner of retail-chain Primark, today (5) issued a buoyant trading update for the 16 weeks up to 6 January.
The group's grocery arm clocked in a revenue of £1,414 million for the period, with ingredients coming in at £698 million. Revenue from agriculture for the same 16 weeks raked in £572 million while sugar added its own sweetness to the figures with a revenue of £825 million.
The group's grocery unit’s sales grew 4 per cent, reflecting “good demand” across a number of its international brands and regionally-focused businesses. Its international brand businesses, which include Twinings, Ovaltine, Blue Dragon, Patak’s, Jordans and Mazzetti, accounted for approximately a third of total grocery sales.
Twinings saw “strong” sales momentum led by volume growth across its largest markets, the UK, US and France. The group noted that this reflected increased distribution, particularly in the US, strong commercial execution to strengthen in-store visibility and a significant increase in investment and focus on marketing.
Growth also benefitted from recent product launches, as ABF continued to expand its presence in the wellness category, including a growing portfolio of herbal and infusion teas.
Meanwhile, its UK-focused businesses, which accounted for approximately a quarter of grocery sales, also performed relatively well.
Allied Bakeries had a “much-reduced” operating loss compared to 2023 as a result of improved sales and operational performance. Silver Spoon delivered “strong” growth, benefitting from lower pricing and a brand refresh. The group’s Ryvita brand also made good progress, supported by recent product launches and advertising.
Adjusted operating profit margin for the Grocery segment improved to 12.1 per cent overall, driving adjusted operating profit up 17 per cent to £511m. ABF noted that the margin improvement reflected an easing in input cost pressures, strong performance in its US-focused businesses, and reduced losses in Allied Bakeries, partially offset by an increase in marketing investment.
The grocery arm was boosted easing input costs, increased investment in marketing, and new product launches. Retail, however, surpassed all the other departments by taking a whopping £3,376 million in revenue. Primark saw sales inching up 7.9 per cent in the 16 weeks, with the retail chain increasing its market share to a new high of 7.1 per cent in the 12 weeks leading up to 10 December.
Looking ahead, ABF said: "We continue to look forward to a year of meaningful progress in both profitability and cash generation, with the profitability improvement being driven by a recovery in Primark margin, a marked improvement in British Sugar profitability, and by reduced losses at Vivergo.
"We also feel more confident in the delivery of the Primark adjusted operating margin in this financial year, driven by a further improvement in product gross margin. This should insulate us well against potential additional costs of supply due to the disruption in the Red Sea, should they arise."
A generational smoking ban, as proposed in Labour’s updated Tobacco and Vapes Bill, would spell chaos for small businesses and retailers, according to JTI.
A generational smoking ban aims to gradually end the sale of tobacco products across the UK by increasing the legal age of sale by one year. This means individuals born on or after 1 January 2009 will never be able to legally be sold tobacco products.
The burden of enforcing a generational ban will fall squarely on retailers, and disproportionately on smaller, independent retailers. Recent British Retail Consortium data revealed 1,300 instances of shop workers being verbally or physically assaulted every day in 2024, with a significant proportion of these attacks following a request for age verification.
The proposed generational ban and subsequent increase in ID checks will put retail workers at even greater risk, particularly in small and independent businesses that have no security staff or additional protections. The physical and mental impact on victims is estimated to cost UK retailers £3.3 billion annually – further highlighting the inconsistent approach from a Government that has just announced, as part of Chancellor Rachel Reeves’s budget, to "stop shoplifting in its tracks", removing legislation which means thefts worth less than £200 are subject to less serious punishments and promising more funding to crack down on organised crime gangs.
JTI is urging the Government to focus on evidence-based, effective solutions, and implement a minimum age of sale of 21 instead.
Government modelling shows that raising the minimum age of sale to 21 could achieve an equivalent fall in youth smoking as a generational ban, when “The majority of smokers start before the age of 20” according to the Government press release today.
Not only would increasing the age of sale to 21 help deliver the same health outcomes, it is simpler and less burdensome for retailers, and removes serious challenges pertaining to the legality of a generational smoking ban in Northern Ireland.
The Republic of Ireland announced in May that it would raise the minimum age for sale of tobacco from 18 to 21, stating “[p]reliminary legal advice suggests Ireland cannot pursue a ‘smokefree generation’ policy as has been suggested in other jurisdictions due to the EU’s Single Market rules and Tobacco Products Directive”. Under the Windsor Framework, Northern Ireland follows these same EU provisions which would prevent the introduction of a generational smoking ban in this part of the UK.
An age of sale of 21 would therefore not only be consistent with the UK’s international obligations, but also ensure a consistent approach across the Isles between Northern Ireland, the Republic of Ireland and Great Britain.
The legislation to increase the age of sale to 21 in the Republic of Ireland is expected to pass this week