Last December, the Scottish Grocers Federation (SGF) launched a Go Local initiative with ten store pilots to provide additional space for local Scottish products. The retailers were supported with the equipment needed to maintain the shelf-life of the fresh local products, supply management, and marketing strategies.
During the pandemic when traveling was restricted, it emerged that people preferred buying from the nearby convenience stores and this allowed them to grow their business. SGF’s funding and support have helped those ten pilot stores to witness an approximately 40 per cent increase in the sales of compliant products, and under the initiative, there has been on an average 34 per cent increase in Scottish products stocked.
Shops from Durness, Inverurie, Falkirk, Gorbals, Ruchazie, Kilmarnock, Moniaive, Kirkcaldy, Buckhaven, and Broxburn were recruited in the first phase of the SGF’s Go Local initiative.
Jamie Buchanan
"We recruited 10 geographically and demographically diverse stores across a number of fascias,” said Jamie Buchanan, Go Local programme director and SGF membership manager.
“As the first phase of the programme was a pilot limited to ten stores to provide proof of concept, we received an incredible level of support from our SGF retail members within days of asking for participants and closed applications at 20.”
Scotland Food & Drink has been a key partner in delivering the project, using their skillset to source Scottish producers for the programme, ensuring they are retail ready, and arranging retailer/supplier meetings as well as delivering the in-store branding.
“We achieved an average sales uplift of 40.24 per cent in compliant products,” said Buchanan. “On average, an increase of 34 per cent in the number of compliant Scottish products stocked was achieved. Economic benefit: an annual local multiplier increase of £157k per store. So, the major drivers of the numbers were identifying store-specific opportunities and working closely with the retailers and Scotland Food & Drink to deliver each plan.”
In the first phase of the Go Local initiative, Anand Cheema’s Spar store was one of the best performing stores. His store opened in August 2020 on Maggie Wood’s Loan, Falkirk. “My sales of local products last month was just over £12,000 and are continuing to grow every month – that's an increase of 77 per cent from where I started,” Cheema said.
Anand Cheema
Cheema also shared his view on the initiative and how it benefited his store. “It has given me access to a retail specialist who really challenges me on my use of space, analyses my data, and works with me to fine-tune my range,” he said. “I have access to the Scotland Food & Drink team who introduce me to new products, local suppliers have proven to be far more flexible and have done a great job keeping me stocked through a challenging period of fluctuating sales. But most importantly, customers more and more want local so it's driving my sales.”
Local products sell themselves
By participating in the programme and experimenting with local products for the first time, Cheema understood that “the more local the product, the better it sold”. Giving an example, he said, "I listed eggs that were produced a few miles away and my egg sales tripled. Furthermore, originally we tried more well-known brands in the butchers' range which came directly from our main wholesaler.
“However, quickly, after a few weeks of trading, we switched to a local butcher and we have never looked back! This has helped us as we are able to replenish the stock every day locally and it is a trusted product with our consumers.”
There are now 30 linear meters of space dedicated to Scottish Local products in Cheema’s Spar store between chilled and ambient, as well as additional food-to-go equipment to enhance its offer.
Graham Watson, another retailer who participated in the programme, has been trading for 20 years. Watsons Grocers is a family-run business serving the local rural community, located in Moniaive, Dumfries & Galloway.
Graham Watson
“It has been a very positive experience while associating with SGF through this programme,” said Watson, a British Empire Medal winner. “They offered lots of support, and it has allowed me to expand my shop, bring in new equipment and start new lanes for local products. I hadn't previously done so. So I find it very rewarding.
“We've added gravity dispensers in the shop for dry goods, pulses, rice, pasta, so people come in and help themselves. Plus, we've got our food-to-go counter, we've got an oven, we now carry fresh fruits and fresh local butcher meat and frozen for us ready to sell with a good shelf life. And that has been received very well, particularly the fish, the sales of it is doing well. I'm pleased about that.”
Gravity dispenser at Watson Grocers
Watson did not disclose the sales figures, but said, “I'm fairly confident that things have gone up and better.”
Three-strand strategy
Buchanan and his team developed a three-strand strategy to get more local products into stores, which included buying more from existing supply routes; listing local direct-to-store suppliers such as bakers, butchers, fishmongers where possible; and using Scotland Food & Drink to build a database of suppliers who wished to participate to fill the gaps.
“We now have over 70 Scottish producers listed through this. These lists were then shared with the retailers and introductions made,” said Buchanan.
"I looked at every bay in my shop with Jamie to look for opportunities to add in local lines, and bought in additional products from my existing supplier, brought in a local butcher range, and was introduced to new producers through Scotland Food & Drink,” Cheema added. “One of the big opportunities we identified was using more Scottish products in the production of my food-to-go. Overall I added just over 100 lines, and have used my store's social media pages to introduce and promote them to my customers."
Although the first phase of the programme was a huge success, there are always some lessons to be learned. Some listed by SGF were product restrictions, the opportunity to influence beyond funded equipment, the food service opportunity, Covid-19 restrictions/BREXIT, product selection, data analysis, and a promotional plan required to maximise opportunities. Plus, an agile approach is essential.
After the success of the first phase, the Scottish government has decided to continue its funding programme to promote the sale of local produce in convenience stores.
Second phase
The second phase of the Go Local initiative will see at least 21 grants paid to convenience retailers from an overall fund of £190,000.
“The second phase of the project will see us continue to work closely with the original 10 stores to improve their performance further, and use the lessons and data gathered from the pilot to share best practices with the new Go Local stores recruited,” said Buchanan.
He is encouraging more and more retailers to participate in the programme. “The links to the application have been distributed to the SGF retail membership list,'' he said, “It has been advertised on LinkedIn, distributed to the Scotland Food & Drink retail contacts, and has also been listed on the ‘Find Business Support’ website by Scottish Enterprise.”
Cheema calls out other retailers: “Get on board and do it! As retailers, we want our customers to shop local, so it makes sense for us to do the same and support our local producers, he said, adding, “the more you can connect your product range with your customer needs, the more loyal they become.”
Retailers who wish to participate in the second phase of the programme can click here. The application process is open until 31 August.
Dutch brewer Heineken on Wednesday reported a slight dip in sales for last year, mainly due to currency fluctuations, although overall beer volumes increased.
The world's second biggest brewer after AB InBev said revenue in 2024 came in at €36 billion (£30bn), compared to the €36.4bn it made the year before.
Beer volume overall grew by 1.6 per cent. In 2023, the brewer reported a 4.7 per cent decline in overall beer volume.
"Our beer volume expanded in all four regions, across both developed and emerging markets," said CEO Dolf van den Brink.
Looking ahead, the company said it expected to post "continued volume and revenue growth" despite ongoing economic challenges.
These included "weak consumer sentiment in Europe, volatility, inflationary pressures and currency devaluations across developing markets, and broader geopolitical fluctuations," the firm said.
Net profits were down sharply, at €978 million, compared to the €2.3bn posted in the previous year.
However, the company explained this was due to a one-off impairment from an investment in China Resources Beer, whose share price tanked on the Hong Kong stock exchange.
This write-down already hit the half-year results. "It's old news," said Van den Brink, describing it as a "technical adjustment."
The firm forecast operating profit before exceptional items and amortisation to be in the range of between four and eight percent in 2025.
Retailers are set to face a "perfect storm of additional costs" as 300,000 jobs will go by 2028 due to the implication of recent budget, retailers have warned Chancellor Rachel Reeves.
Under a new body Retail Jobs Alliance (RJA), seven of Britain’s biggest retail chains have united to Reeves that her tax hikes will lead to even more devastating High Street closures and job losses.
According to the RJA’s analysis, at least one in ten retail workers could leave the sector before 2028, amounting to 300,000 staff.
The retailers are calling for shops to be protected from higher business rates, which are commercial property taxes, saying that this change would provide much-needed relief for at-risk stores, enabling them to reinvest in their businesses, retain staff, and grow their footprint on the High Street.
Labour has promised to ‘level the playing field between the High Street and online giants’ by replacing the levy, which is paid on the rateable value of a commercial property.
But under their plans, premises with rateable values of above £500,000 would pay more.
It has depicted this as targeting warehouses used by online shopping giants, but retailers say it would also hit over 4,000 bricks-and-mortar shops.
In the meantime, smaller retailers will pay thousands of pounds more because of a reduction in Covid-era relief from April.
As well as hitting shops with higher rates, the Chancellor announced a £25billion increase in national insurance and an inflation-busting hike in the minimum wage.
Helen Dickinson, boss of the British Retail Consortium, warned that with Reeves’ Budget adding over £7billion to their bills in 2025, retailers face "difficult decisions about future investment".
Confederation of British Industry chief executive Rain Newton-Smith warned businesses are "seriously flagging under the fiscal burden it had to shoulder at the Budget". She is calling for "decisive action’ that must include ‘fixing our punishing business rates system – fast".
RJA, which includes Tesco, Marks & Spencer and B&Q-owner Kingfisher, warned that retailers are facing “a perfect storm” of additional costs from this April.
This comes as M&S chief criticised the government, saying “retail is being raided like a piggy bank and it’s unacceptable”.
“The blunt truth is… the budget means UK retail will get smaller,” M&S chief executive Stuart Machin wrote in The Sunday Times, adding that while Reeves’ long-term growth ambitions are welcome “action [needs to be] taken to encourage growth today”.
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New Co-op report reveals in disparity in apprentices
Small businesses are "18 times less likely" to offer an apprenticeship scheme as compared to large businesses, a recent report has claimed, adding that some small businesses are not taking proactive steps to recruit apprentices from lower socioeconomic backgrounds.
Co-op in a report released on Monday (10) points out how more than a third (38 per cent) of school leavers face a lack of apprenticeship opportunities in their local area.
Co-op finds that two in three (68 per cent) school leavers agree that apprenticeships are more important now than in previous years, with almost half (48 per cent) seeing an apprenticeship as the most beneficial way of entering the world of work.
However, despite those from lower socioeconomic backgrounds being more likely to apply for an apprenticeship (73 per cent v 66 per cent), many are facing barriers to accessing apprenticeships.
Co-op’s research also included a survey of business leaders, which found that seven in ten agree that a socioeconomic gap exists when it comes to hiring apprentices. It also finds that small businesses are 18 times less likely to offer an apprenticeship scheme compared to large businesses.
Amongst those that do, one in five small businesses are not taking proactive steps to recruit apprentices from lower socioeconomic backgrounds.
The top reasons for this lack of proactive recruitment include: a lack of time and resources (38 per cent), uncertainty about how to access diverse talent pools (33 per cent), insufficient funding to support apprenticeship programmes (29 per cent), and concerns over increased training costs (14 per cent).
Furthermore, businesses in less advantaged areas lack higher level apprenticeship schemes, with only a quarter (26 per cent) of business leaders in these areas offering level six or seven apprenticeships, states the report.
Claire Costello, Co-op’s Chief People and Inclusion Officer, says, “The research paints a picture of the real and widespread relationship between an individual’s socioeconomic background and their unequal access to apprenticeship opportunities post-school.
"There has never been a more important time for the Government and UK businesses to stand up to reality and do more to ensure access to apprenticeships is fair and equitable for all young people.
"Someone’s background should not limit their career potential which is why we’re calling on an amendment to the IfATE Bill - to level the playing field so everyone can have a fair shot at reaching their full potential.”
The research comes as Co-op has written to the Education Secretary calling on the Government to give Skills England a statutory duty to improve social mobility across the country.
January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, shows industry report released today (11).
According to retail body British Retail Consortium (BRC), UK total retail sales increased by 2.6 per cent year on year in January, against a growth of 1.2 per cent in January 2024. This was above the 3-month average growth of 1.1 per cent and above the 12-month average growth of 0.8 per cent.
Food sales increased by 2.8 per cent year on year in January, against a growth of 6.1 per cent in January 2024. This was above the 3-month average growth of 2.3 per cent and below the 12-month average growth of 3 per cent, shows BRC report.
Commenting on the figures, Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said, “January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, albeit on a weak comparable.
"Consumers headed to the shops to refresh their homes for the year ahead, taking advantage of big discounts on furniture, bedding and other home accessories.
"With growth across nearly all categories, only toys and baby equipment remained in decline. While the bouts of stormy weather put a temporary dampener on demand, sales growth held up well throughout the rest of the month. This was also helped by the earlier start of the reporting period, adding a few more post-Christmas shopping days into the mix.
“Whether this strong performance can hold out for the coming months is yet to be seen. Inflationary pressures are rising, compounded by £7bn of new costs facing retailers, including higher employer national insurance contributions, higher National Living Wage, and a new packaging levy.
"Many businesses will be left with little choice but to increase prices, and cut investment in jobs and stores. Government can mitigate this by ensuring its proposed business rates reforms do not result in any shop paying more in business rates.”
Commenting on food and drink sector performance, Sarah Bradbury, CEO of IGD, said, "The current climate of economic uncertainty is reflected in IGD’s January shopper confidence index, which has declined by 3 points.
"With unemployment at 4.4 per cent (+0.4 per cent vs this time last year), shoppers have responded by employing strategies to control their spend.
"The notable increase in volume over value sales suggests a shift towards private label products and a change in purchasing categories, as shoppers anticipate further price rises for food and drink.”
KASH Retail, operator of Nisa Local Fenby Avenue in Darlington, has generously donated £1,000 through Nisa’s Making a Difference Locally (MADL) Pride Pot to support this year’s Darlington Pride Festival.
The donation, inspired by store team member Gavin Morrison, who performs as drag queen Georgina Sparks, will provide a valuable boost to the event, helping organisers deliver an inclusive and vibrant celebration for the local community.
Darlington Pride Festival, taking place from Saturday 9 to Monday 11 August, is a key event in the town’s cultural calendar. The festival showcases performances, parades, and community activities, promoting diversity and inclusivity.
It is supported by numerous local businesses and organisations, including primary sponsor Cummins Inc. and the Office of the Police & Crime Commissioner.
Cllr James Coe, Darlington Borough Council’s LGBT+ Champion, welcomed the donation, saying, “We’re very grateful to Nisa Local for offering £1,000 to support plans for this year’s event.
"The funds will be added to the council’s budget for the event and help make Pride 2025 extra special. “
The events team deliver a varied programme of free public events and welcome the opportunity to work with sponsors to make fun, exciting things happen in the town centre.."
KASH Retail was able to make this generous donation thanks to funds from MADL’s Pride Pot. The fund, created in 2023, allows Nisa retailers to support LGBTQ+ community groups and charities with £1,000 donations.
Nisa retailers are able to utilise the funding pot all year round.
Kevin Polley, Operations Manager for Nisa Local, highlighted the importance of customer support in making these donations possible: “Every time a customer buys one of our own-brand products, a penny from that sale is added to our Make a Difference fund.
"This donation is out of the MADL Pride Pot - we’re delighted to be supporting such a popular and inclusive event, right on our doorstep!”
Kate Carroll, Nisa’s Head of Charity, praised the initiative, stating: “We are incredibly proud to see Nisa retailers using MADL funding to support causes that matter to their local communities.
"The Pride Pot was created to help make a difference to LGBTQ+ events, and it is fantastic to see KASH Retail supporting Darlington Pride Festival in such a meaningful way.”
With the help of contributions like this, Darlington Pride Festival continues to grow, offering a welcoming and inclusive space for all to celebrate and support the LGBTQ+ community.