A new way of looking at the grocery market was pioneered at the Association of Convenience Stores (ACS) Summit 2007 on Tuesday.
Francis Ball, chairman of the Federation of Wholesale Distributors (FWD), urged the convenience sector to see the market in terms of the “big two” - the sum of independent retailers versus number-one UK retailer Tesco - rather than in terms of the traditional “big four” supermarket players.
He unveiled a pie chart that showed the supermarket giant and independent retailers, as a whole, have almost identical market shares.
“The very big will get bigger, but the very small will get better,” Ball said. “Independent retailers must focus on service and their role in the community to move forward.”
The relationship that staff have with their customers and, in light of growing concerns about understanding where food comes from, a commitment to local sourcing, were also held up as key weapons for small and medium-sized retailers in the fight against the multiples.
ACS chairman Mike Greene said the shape of the grocery market is changing, with growth in the discount and premium ends, and that independent retailers should consider tapping into consumer insight to find out what is needed.
The theme of the 2007 event - Convenience Innovation - was presented as both the most challenging and rewarding task for the trade.
ACS Achievement Award winner Nick Brown, a forecourt services manager for Jonathan and Rebecca James at James Graven & Son, which has franchises of Budgens, outlined a concept for a new breed of convenience store - the “E-store”.
His innovation is based around four Es - the environment, including the local area as well as green credentials, “eat it now” hot food counters, the use of up-to-date electronics and drumming up excitement for both staff and shoppers.
Sir Digby Jones, former director general of CBI, stressed that progress and change, however unnerving, will secure the future of the sector. “It’s better to do than be done to,” he said. “Innovation is key, but it calls for bravery and judgement.”
The owners of three model stores - Hodnet Village Stores in Hodnet, Shropshire, Bellini’s in Ilkeston, Derbyshire, and Weeton’s in Harrogate, Yorkshire - were on hand to answer questions from the floor.
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