Archives: Insights

Remaining competitive in a turbulent marketplace is more important than ever. Customers are demanding better value for money, more competitive promotions, an extensive range that includes a credible fresh and chilled offer – all packaged within a vibrant shop that provides a fantastic shopping experience. As an independent convenience store owner, it’s essential that you are using your time effectively to maximise sales and grow your business. If you’re not in your store on a regular basis, and you’re spending too much of your day on the road running errands or replenishing stock at the Cash & Carry, it means you’re losing valuable time engaging with your customers and focusing on the bigger business needs, both of which impacts sales. Depending on how far you have to travel, a trip to the Cash & Carry could take up the best part of a day, which isn’t productive if you’re making several trips a week.

Many independent retailers rely on the Cash & Carry for their promotions and purchase in bulk. It’s important to remember that remaining competitive is not just about lowering prices but about promoting value for money. Many retailers worry about promotions as they struggle to find enough time to plan, especially when it comes to seasonal events – meaning that they run with whatever the cash and carry have on offer and this means that you aren’t considering the needs of your customer.

If you’re finding yourself having to sacrifice margin to remain competitive, or worse, increasing your prices to maintain margin, in which you risk appearing expensive to customers, then it might be time to partner with a trusted national brand that has the buying power to offer market-leading promotions with healthy margins.

Having One Stop behind you who plan promotions in advance to include new product launches, seasonal lines and key events that capture incremental sales opportunities, would benefit any retailer.

Kapil Patel joined One Stop at the beginning of February 2015 so he could tap in to One Stop’s buying power in order to compete with supermarket promotions and lower the price of his every day essentials.

“The key benefits that we’ve noticed since we joined One Stop is pricing – now we sell items that are cheaper. Secondly, the promotions are a lot better and the margins are still reasonable, whereas before, we would dread selling promotional lines as we’d have to try and maintain margin.

“During seasonal sales periods, we’ve spotted that promotional activity is quite strong. For example, Christmas and Easter egg sales are quite competitive with the pricing and range. We also started stocking flowers for Valentine’s and Mother’s Day. And of course, we never have to worry about any point-of-sale as One Stop take care of all this.”

If you’re finding that you are spending less time in-store and failing to manage your business to the best of your ability, it may be time to reflect on the points we’ve touched on above to see how you can get your time back to focus on customers and increase sales.

Remember, sometimes change can be a good thing and saving time is key to the future sustainability of your business.

Do you feel your store is lacking a great range of products to entice customers? Are you struggling to grow your sales and profit and worry about what the future holds? The amount of support you get shouldn’t depend on the amount of stock you purchase. If all of this feels familiar, now might be the time to explore all the benefits franchising has to offer.

Are you getting help and advice to keep your store looking fresh and modern?

This should extend beyond the fascia and promotional point of sale to include layout, theatre and frequently refreshed permanent point of sale to keep the store looking modern and clean.

With customers having so much choice nowadays, they no longer have to visit their local store just because it’s convenient. Increased competition means that customers expect better store standards and customer service. Franchising is a fully supported model that focuses on store standards to ensure consistency across the entire estate.

There should be procedures in place to check that your store is visually appealing in order to attract customers. If you feel that you aren’t getting enough advice, support and ideas on how to continue to grow your business, there are other retail partners that offer the support you’re looking for.

One Stop stores are individually unique, but with one thing in common, exceptional brand standards. This is because we co-invest up to £50,000 into every store refit*, ensuring that the entire estate is consistent from a look & feel and customer experience point of view. Our franchisees benefit from market-leading promotions that are supported by an extensive point of sale kit. Additional POS is provided free of charge during key seasonal events to create theatre in-store and help maximise sales.

Are you struggling to sell stock even though you’re receiving a steady flow of customers through the door?

Many retailers try to be everything to every customer. It’s hard to say “I’m sorry we don’t stock that”, but in reality stocking products that you only sell to a handful of customers, means you aren’t maximising every inch of your stores true potential. It’s common practice for a store to be allocated stock to fulfil promotional sales, which isn’t always the right range for your customers. Quite often when it doesn’t sell, it ends up as part of your main fixture, taking up valuable space.

In any one year, One Stop completes over 25 range reviews across all its categories with Chilled & Fresh having two due to its more seasonal nature. Important changes, such as brand launches, are not missed either with minor planogram amends made throughout the year. One Stop work closely with their Franchisees, combining our extensive customer insight with their local knowledge, to formulate a planogram that ensures they have the right range to consistently meet their customers ever-changing needs.

Does your group help you use sales data to drive profit?

The convenience market continues to evolve at pace and so do customers shopping habits. It’s easy to collect data but not as easy creating actionable insights in order to grow sales and profit. Data is fundamental to managing and developing any business. If you choose to discard your data each week, you cannot optimise the learnings from your store and manage your business effectively.

Do you have a reporting suite that allows you to quickly understand what is happening in your store? Linked systems are important to all businesses, as they can provide:

• Sales by line and category to ensure you have the right products in the right space.
• Daily out of stocks helping you ensure you’re ordering enough and not letting your customers down.
• Access to stock holding to aid better cash flow.
• Visibility of your basket spend and customer count to help with staffing and to understand your peaks and troughs.
• Understand your financial Key Performance Indicators (KPIs) to gauge your business’ health.

If you don’t have visibility of all the above and more, you might want to consider One Stop’s easy-to-use system that’s designed to take the hard work out of the day-to-day running of your store. In addition to our state-of-the art two-lane EPoS system, Franchisees have access to a wide-range of reports including sales & margin, promotional period analysis and total business performance. All designed to give you the insights you need to make the most of every square inch in your store.

Is your Group actively helping you to grow your business?

There’s never been a more challenging time to be a convenience retailer. Fierce competition coupled with rising costs and customers ever changing shopping needs, requires you to be at the top of your game. Not only do you need to quickly adapt to change, but you’ve got to come up with more and more new ideas to give your store a competitive edge. A common reason retailers look to switch group is due to lack of support, so ask yourself:

• Do you see a BDM / Area Manager every single month and do they add value?
• Is it starting to feel like your level of support is based on how much you buy?
• Are your sales consitenatly growing year-on-year?
• Is your store reaching its full potential?

Did you know that on average One Stop franchisees grow their sales by 10% in the first year of joining? If you feel like your store could go up another level with the right support, perhaps it’s time to speak to the convenience retail experts. Every One Stop Franchise store has their own dedicated Business Development Manager visit every 4 weeks. During their 3 hour visit, BDMs work with franchisees and their store teams to help grow sales and cash profit.

Working together One Stop’s BDMs co-create clear action plans to drive continuous improvement throughout stores, a big part of this providing their franchisees with an indicative P&L every month, which ensures a clear proactive financial plan is set out.

Suresh Patel has been with One Stop since 2014. He became a One Stop franchisee to add more structure to his business.

‘I had become stagnant with my previous symbol group and I was looking to innovate the situation.’

Since joining One Stop, Suresh has benefited from a Business Development Manager (BDM) who visits every 4 weeks for a minimum of 3 hours. One Stop’s BDMs work with their franchisees and their store teams to help grow sales and improve margins. Working together they create clear action plans to drive continuous improvement throughout the store and provide you with an indicative P&L every month – which is market leading and unique to One Stop, providing your business with a clear proactive financial overview.

‘One Stop staff are so enthusiastic and passionate and it shows. The amount of care that’s taken and the involvement of the BDMs when they come into the store is the best we’ve ever had – they know our staff members by name.’

‘Basket spend has increased by at least 15-20% as the range is more targeted towards the local community. The Post Office also plays a big role in terms of footfall, as it’s another reason for customers to come into your store.’

Thanks to One Stop’s market-leading two-lane EPoS system that is connected to a full back office system, which provides sales and margin reports at the touch of a button; real-time store planograms and auto replenishment which saves hours on ordering, Suresh is able to spend more time interacting with customers and with his family.

‘The EPoS system has helped us run the business more efficiently. The ordering system and auto-replenishment is second to none. It’s effortless and has given me back so much time that I can now focus on moving my business forward.’

Kapil Patel joined One Stop at the beginning of February 2015 after previously operating as a Spar.

‘Before we joined, I made sure to visit current franchise stores and was immediately impressed by the store standards and the product range. When we became a franchise, we noticed the support was superior to our previous symbol group, especially during the transition. We received help during the planning, design, merchandising and overall look of the store, which we didn’t receive from our old symbol group.’

One Stop’s buying power allows Kapil to compete with supermarket promotions and price his every day essentials competitively, while maintaining healthy margins.

‘The key benefits that we’ve noticed since we joined One Stop is pricing – now we sell items that are cheaper. Secondly, the promotions are a lot better and the margins are still reasonable, whereas before, we would dread selling promotional lines as we’d have to try and maintain margin.

During seasonal sales periods, we’ve spotted that promotional activity is quite strong. For example, Easter egg sales are quite competitive with the pricing and range. We also started stocking flowers for Valentine’s and Mother’s Day. We’ve had positive comments from customers on quality.’

Now, operating as a One Stop allows him to stock a wider range, drawing in more customers with different interests.

‘One of the key areas we wanted to improve was increasing our alcohol range and our chilled food offer. The refit had an immediate effect, as we’ve enhanced our BWS range and improved the lunch time and evening meal deal selection, which our customers have recognised and brought into already.’

Running a retail business, even during the very good times can be extremely challenging. Increasing costs and legislation changes can be substantial and the ability to find the necessary growth to continue to profit can be difficult without support. Partnering with a trusted national brand could be just what your store needs, but being a part of a brand is much more than just having a recognisable name above your door.

BRAND RECOGNITION AND TRUST

Operating under a big brand name can often give your business instant impact, especially in today’s world where everything is about speed and efficiency. Customers have less time to make decisions and your storefront needs to communicate to them as quickly as possible. According to the FedEx Office “What’s Your Sign Survey,” as many as 76% of consumers will choose to enter a store they’ve never been to before just because they like the sign.

Customers will already know and trust a national brand, so you won’t need to spend time and money marketing yourself. A branded storefront is the first impression you get to make on your customers, so getting it right is important. Developing a store brand for yourself can be expensive or harming to your reputation if not done properly.

YOU HAVE ONLY EIGHT SECONDS

The average attention span has dropped to 8 seconds and this is all it takes for someone to decide whether to leave a website, or walk into a store. This means you have a very limited time to make an impression, so the better, more recognisable your storefront brand is at making that connection, the more likely that passers by will visit your store.

BENEFITS BEYOND THE BRANDED FASCIA

If you chose to franchise your business it’s not just instant brand recognition you will benefit from. You will be inheriting a proven business model that comes with initial training, ongoing support and increased purchasing power. You also benefit from brand protection, as a franchisor will have a specific criteria for applicants to meet and continue to adhere to, including everything from service standards to the businesses look and feel – this is to ensure consistency across the brand.

CONSISTENCY IS KEY

An independent convenience retailer has complete responsibility for every aspect of operating their business. This means they can run the business exactly as they want to but they have no external support, backup or access to the types of tools and expert knowledge and services that bigger brands may have, such as industry insights, buying scale and operating standards. While symbol group retailers have the benefit of an established fascia and some of the range, consistency across these estates can fluctuate greatly. Customers could visit two stores under the same brand and have two very different shopping experiences – whether it was the service they received, the price they paid or range that was available. One bad experience in a branded store, can affect that customers perception of all stores operating under that brand. That’s why it’s key to explore consistency across the estate when deciding who to partner with.

ATTRACTIVE STORES ATTRACT CUSTOMERS

Shoppers are willing to spend a little extra in an environment where they feel comfortable and experience great customer service. A clean and well planned store also helps to establish a brand identity. If you don’t feel your fascia is attracting customers, now might be the time to talk to the convenience retail experts. One of the best ways for you to inject life back into your business, is partnering with a trusted national brand that is ready to co-invest up to £50,000 (subject to T&Cs) in a fully managed refit, ensuring a new look and feel inside and outside your store.

Improving your average basket spend should be a constant challenge, and this can grow through a variety of methods including store layout, promotions, range of products available and lighting to make stores look more attractive.

If you’re finding it difficult to grow basket spend in your store, have you considered the following factors?

1. Offer a wide range of stock 

Ensure that your range of stock is meeting the demands and the possible demands of your customers. Ensure that your KVI (Known Value Items) lines are reasonably priced, this way, customers will associate your store with being able to pop out and get exactly what they need without spending too much money.

By providing the essentials and more, you can be sure that shoppers in your target demographic are satisfied with their experience in your store. Regularly introducing new products will mean that visitors to your shop will have a good reason to keep returning to your store.  You can make your shop the ‘go-to’ for workers on their lunch break, ensure that your range contains a variety of essentials and options for shoppers to try something new regularly.

An own label range shows customers that you’ve committed to providing quality products at good value, the products will remind customers of your store when they see the items at home and use them to cook.

2. Store layout

Customers love a good offer, make sure that your promotions are clearly placed in your store, ideally at the front of shop where it will immediately catch the attention of shoppers and maybe even draw in customers passing the store.

Utilise your counter, offers at the point of sale should be affordable so people don’t have to deliberate over the decision to buy them. Ensure that they complement other products are sold in your store, so they don’t feel out of place – seasonal items and products that relate to sporting, film and television events are a great way to capitalise on incremental sales.

Use zones so that customers can find similar items next to each other, these zones can be quite broadly related such as ‘Food for Now’, ‘Food for Later’ and ‘Food for Cupboard’, these examples used by One Stop work because they address every type of customer whether they’re planning short, medium or long term, they can find whatever they need and similar options to buy in addition.

3. Competitive Promotions

Competing with the big chain supermarkets for promotional offers can seem wasted, but if you’re promoting savings on popular items, you’ll see a steady influx of customers taking advantage of these offers and returning to your store to make repeat purchases. Also, look at your best-selling products with a view to offering promotions on a selection of these lines, as this will excite and delight consumers. Try out the classic £3 lunchtime meal deal, 2 for £2 on drinks, 3 for £1.20 on confectionary, always give your customers a reason to come back, customers want value, they want a mix of promotions across different categories and they want to be excited by new products.

Selly’s newsagent has been serving the residents of Barry, Cardiff, for over 16 years under the ownership of husband and wife, Garry and Jackie Hughes. The building itself has been a community shop for more than 100 years, so when the Hughes joined the One Stop family they were keen to preserve its history while expanding to better serve the needs of their local customers.

Business Development Managers are committed to supporting franchisees right from the very start. From helping manage new technology, analysing sales and costs to providing all the insight needed to take any business forward – they are on hand to share their expertise and make a business vision a reality.

If you want to find out more about how a BDM can help transform your business, here’s a look at what our team can offer:

Store visits every four weeks from experienced retailers 

All BDMs are former retailers (it’s in their blood), so they fully understand the market we operate in and the demands it has on our time. BDMs visit each store every 4 weeks for a minimum of 3 hours bringing with them their in-depth retailer knowledge. With all of the legislation changes continuing to challenge us all, you can rest assured that we are always working to keep our franchisees safe and legal.

BDMs objective is to add value and grow businesses! 

Raj Sangha of Jerry’s Lane, Erdington shares his thoughts on his BDM support, ‘My BDM visits at least every four weeks and always comes prepared with bags of useful information. Together we are always thinking ahead putting together medium and long-term goals, not just looking at the short term.’

Since joining One Stop Franchise Raj’s weekly sales have grown by over 60%

Business growth is our number 1 priority

When a franchisee’s business grows, we grow, so it’s in our best interest to help maximise stores sales. Our BDMs are trusted advisers who act and advise businesses, with their best interests at heart.  We expect high standards and through high standards comes customer satisfaction and more profit.

Armed with a wealth of performance data our BDMs will analyse everything from sales, footfall and mix to promotional performance. All of our in-depth reporting means a clear understanding of how every inch of a store is performing, and from there we can start to identify how we grow a business, sales, profit, standards and reduce costs!

Our focus on delivering channel leading growth is paying dividends for our franchisees. It’s why they experience an average of +9.9% growth in the first year of joining One Stop, coupled with an avg. +4% growth in transactions and 5% in Basket Spend!

Sunder Sandher who runs a One Stop store in Leamington Spa says, ‘My Business Development Manager was fantastic in helping me move the business from where it was to where we are today… we also have a review every 4 weeks with our BDM. It’s a chance to discuss facts and figures for the business and deal with any issues or changes we need to make.’

Since joining One Stop Franchise Sunder’s weekly sales have grown by over 80%

We deal with problems efficiently

We understand that within every business problems will arise, but it’s how they’re dealt with that truly matters. If you can manage the problem effectively and learn from it, you will progress and grow in a positive way.

Blair Southwood, who owns a One Stop Franchise in Louth explains, ‘There have been a few issues, but we are delighted by the way those issues have been dealt with both quickly and efficiently. To know that we can at any point contact not only our BDM, but also the Head of Franchise Operations is fantastic. Any concerns or questions we have are listened to very carefully and our feedback is greatly appreciated. We don’t feel as if we are on our own!’

Since joining One Stop Franchise Blair’s weekly sales have more than doubled!

We’re always a phone call away 

We pride ourselves on always being there for our franchisees which is why in addition to a dedicated Business Development Manager, our support team are on hand 7 days a week.

We are able to assist with lots of different types of queries including:

• Orders and deliveries
• Scanning and prices
• Promotions and POS
• Merchandising and ranging
• Maintenance and new retailer enquiries
• Customer enquiries

The team are experienced, many coming from our stores so they understand the pressures, issues and are experienced in the ways of working and routines. If required they can also gain remote access into the Franchisees back-office and see any issues in their live environment enabling the team to help quicker.

The One Stop Franchise Support Team does the hard work for the franchisee’s liaising with all company functions across the wider business, ensuring queries are resolved as quickly as possible.

In 2013, One Stop started working with their youngest Franchisee Aleem Choudry who was just 19 years old! The Prestatyn One Stop Franchise was a cold start for Aleem and his family who were part of the business’s initial five-store pilot. With Aleem being only 19 and having little experience in convenience retail, One Stop provided him with an opportunity to work in a local company store prior to joining to ensure it definitely was something he was passionate about taking on.

Aleem has built a very successful business partnership with One Stop seeing a significant sales uplift across the first year, followed by a 23% growth in year two serving circa 3,000 transactions per week. Inspired by the success of the first two years, Aleem further invested in his One Stop store expanding the shop floor to enable him to extend the frozen and off license range as well as household, biscuits and beverages. The space created by the extension has opened up the store and improve the shopping experience for customers.

Aleem said, ‘One Stop helped me from the very beginning to make sure convenience retailing was even something I wanted to get involved in. I run my store exactly to their Franchise model and it has been such a success and so easy to manage. I am really proud of how well the store is trading, so much so I wanted to invest more into it to give my customers more choice and space to shop within. One Stop have been a great partner helping me grow the business over the years, and I look forward to more years to come.’

We visited Aleem Choudry again in February 2017 and he shared his thoughts on the partnership since One Stop has further invested in their range and promotions.

‘Customers are loving the new range. Frozen produce has increased triple the amount and we’re also seeing an increase in packet and canned. This is due to the brand name and refit of the store. It allows the customer to do a larger shop.

One Stop’s promotions are highly competitive, meaning increased sales and drawing in additional customers who wouldn’t usually shop in a convenience store for lunch.

‘The promotions compete with supermarkets and we see a good profit from them. They run for five weeks and its usually main brand such as Coke, Pepsi etc. Our meal deals also make a big difference, as it brings in shoppers around lunchtime, as we offer a wide range of products that people love. We sell a lot of sandwiches – around 95% are from the meal deal.

Even though there’s more products to manage, it’s even easier with the technology included with the One Stop refit.

‘We use a computer-generated system to complete our orders. The till is so easy to use and directly links back to head office. If one item is sold, it will automate another order to make sure there’s enough stock, so it’s a great system.

‘Since our refit, we have a completely full shop and always have a promotion in each section, so there’s a lot of choice. Our turnover increased within six months and we’re into our third year now and still growing. We’ve made a healthy profit and the margin is increasing as well.‘