EXCLUSIVE: Select & Save unveils unique perks for independent convenience store retailers

Symbol group Select & Save has revealed ground­breaking new perks for its retailers.

In an exclusive inter­view with Better Retailing’s sister title, RN, managing director Kam Sanghera and new sales director Barry Coleman revealed the details of the re­freshed offer for stores.

Success of the Select & Save brand refresh

A refresh of the Select & Save brand is underway. Meanwhile, a new commercial director as well as more business development managers are joining in the new year. This will allow­ Select & Save to target stores throughout northern England and the Midlands.

The results from the first store to open with the new branding are promising.

Sales in the former Nisa store in Walmley, Birmingham, are up by 25%. This is attributed to better chilled, frozen, vape, food-to-go and hot-coffee ranges, helping to deliver bigger baskets while keen­er pricing delivers greater return spend.

A new pastel colour scheme runs throughout and guides shoppers to each section.

Sanghera explained: “We’ve gone back to ba­sics. In a funny economic climate, the main lines – bread, milk, sausages and bacon – need to be competitive.

“In the new year, we’re bringing in an Aldi pric­ing comparison. You will see it on our leaflet’s front page. Three-to-five core lines proudly stating they are as cheap as [they are] at Aldi.”

According to Coleman, the new brand will “roll out across the estate over next year”.

He added: “It’s a good chance for stores to improve. We will also be looking at range, merchandising and new ideas with digital. It’s also about getting real quality time in each of our stores.”

New digital tools will include free screens for shop windows displaying supplier ads and reward­ing stores. “Any ad rev­enue we get from manu­facturers, the retailer will get 25%,” said Sanghera.  He added that digital shelf strips and neon signs in aisles are also planned.

How Select & Save aims to help stores improve

While a larger chilled range is key for Select & Save, stock waste during chilled-range expansion can be challenging for stores. Coleman said: “We are prepared to give any­one weak on chilled a per­centage of their ordering as waste. If someone buys £1,000 per week chilled, we will give them 5% back to cover shrink.”

This year has seen independent stores drop grocery market share, volume and value, which Sanghera attributes to a “1980s-style” mix of high store costs and competi­tion. He added: “We are sitting on our hands thinking we can continue making margin, but it’s not like that.

“Margin will decline, and it will be about vol­ume. There are so many Tesco Express, Sains­bury’s Local and Co-op stores around – you need to face them head on.

“I understand retailers want percentage margin, but they have to accept that leaflets and deals draw people in.

“Even if they are single-digit margins, look at the cash profit on the basket. If [shoppers] come in and pick up promotions, they will be back time and again, and suddenly your cash margin has gone through the roof.”

In an effort to persuade stores on this volume ap­proach, Select & Save has developed a rebate system of up to 5.5%, starting at 0.5% for just £7,500 spend.

In comparison, stores need to spend £2,500 more at Booker to get the same level.

Select & Save is also giving stores a stake in the group. “Around Easter, we’ll be giving a percent­age of our company to the retailers to become a mutual,” said Sanghera.

“If [a retailer proves their] spend over six months, [they] will be al­located some shares.”

Helping store owners relax

Select & Save now pays for holiday cover, enabling store owners to take time off.

Explaining the policy, Sanghera said balancing a young family and run­ning a successful store is a major challenge for many, and finding affordable, reliable cover is often difficult. He described retail as a “profession” and said it should be treated as such, with time off when needed.

He added: “If you want to go away for a week or even two, we have a relief manager to run your shop. All we ask is the retailer covers their ac­commodation.”

Coleman said the relief manager ran the group’s company-owned store for “many years” and also suggests improve­ments for owners on their return.

Independent retailing

Sanghera criticised the role of major supermar­kets and wholesalers in symbol groups.

“Supermarkets are us­ing the volume through independents to benefit their own buying power,” he said.

“They give no thought to consumer-led promo­tions. A brand will pay them £50,000 plus rebate, to stock it, so they put it on the promotion leaflet.

“The retailer orders it, and it sits on their shelf for six months. It’s commercial-led, not customer-led.”

Sanghera promised a different approach. “We are the only independent group left out there,” he claimed.

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