When Pete Patel was announced as winner in the Convenience Chain of the Year category at the 2021 Asian Trader Awards, it was the third consecutive win for the soft-spoken retailer, who won the Shop Safety Best Practice Award in the previous year and the Bakery Retailer award in 2019.
The Asian Trader Convenience Chain Award, supported by Dr. Beckmann, celebrates the maturing of the convenience sector, as more and more impulse entrepreneurs expand into multiple sites and establish themselves as true convenience chains. With five convenience stores, all under the Bestway’s Costcutter fascia, in addition to a Bargain Booze outlet, Pete represents one of the pioneers in this expansion, coming back to retail a decade ago with a steely determination to be a multi-site operator.
“We always had single sites. It was probably about 15 years ago, when we sold our last site, I took a break from retail. And then I decided that when we come back into retail, we will be a multiple store operator, not a single site player. That was a real turning point,” he says.
Pete’s parents bought their first shop in 1980, in Orpington, Kent, when he was just five. He has been brought up around shops all his life, joining the trade filling shelves by colour. They still own their second shop in Brentwood, Essex where he also has the Bargain Booze store. His other stores are located at Brockley, Lewisham; Southborough, Tunbridge Wells; Heanor, Derbyshire and Meopham, Gravesham, his latest and the first dual-branded Costcutter-Bargain Booze store.
Multiplying
Running six stores, he is very much aware of the importance of delegation, and ensures that staff are taken care of. He recruits the store manager and the assistant manager and then it’s the responsibility of the store manager to recruit all the staff within the store. All his staff enjoy a 10 per cent discount
“We have staff training within the store and each store manager has the same staff training manual. So they're all trained to the same standard,” he adds. “And I keep the store managers up to date with any decisions I’m making in the background which affect the store.”
It also helped that his first store was in Derby, 180 miles from the family home in Kent, playing a big part in letting go of the reins and learning to delegate. “When we opened that store (in 2011), I stayed in Derby for one year. And then, after six months of being there, I decided who would be the store manager. And, in fact, I have had the same store manager since I left Derby,” he says.
Refill station at Costcutter Southborough store
“The turning point came when I realised that by having faith in your store team and giving them the responsibility to run your business, it encourages them to work better and it gave me the opportunity to grow from a single store operator.”
He has also perfected an operational model that is consistent across stores. “Once we got to the second store, we were sort of trying different ways to operate the stores, and we made some mistakes along the way, but then we now believe we have a formula that works, and we use the same format. So operationally every store works the same,” he says.
One advantage of this is that he can easily redeploy staff, when necessary. “We have got stores near to each other, and if I need to cover another store with another member of staff, someone can go from one store to another store. And operationally it will be exactly the same. One doesn’t have to learn anything new,” he notes. “So it was very important that we made sure that every store operated the same way.”
Technically speaking
Technology has also made it quite a lot easier. A fully integrated IT system allows him access to all stores any time. “And there is stuff like electronic shelf labels, which means I can change the prices from wherever I am and it will change in all of the shops,” he adds.
They also use a labour management company called S4labour. “They just use their mobile apps for clocking in and clocking out and for their wages. So that makes it easier for us, to keep the rotas up to date and stuff,” says Pete.
All of his stores have unique points of difference, catering to their location and customer profile, but he notes they all have the same DNA – and that is of a business grown on the best customer service possible.
“I spend as much time as possible when we take on or open a new store. The majority of my time is focused on the new store so that it starts off how I want it to grow. The team learns the DNA and adapts to it. I make sure the team is always fully engaged with the decisions within the store to make them feel it is there store as much as it mine,” he says.
Symbol support
As an independent multi-site operator, Pete feels that the support from a symbol group is crucial in running the stores.
“One of the main advantages (of joining a symbol group) is having all the stock delivered,” he says. “Having multiple stores, I can't be in every store. So it was important to be with a symbol group partner that can deliver the order to the shop. Plus a brand that people recognises is important as well.”
He adds that having a group like Costcutter has worked very well for him. “They have got the knowledge of what product ranges to put in, they have got knowledge of how the store layout should work. They help with advertising the store when you are opening a new store,” he goes on.
He particularly values the help from his business development manager at Costcutter. “He's always coming around giving you ideas, and especially with multiple stores, he'll go and look at the stores and if there's an issue, he come back to me,” he says. “For example, he goes to Derby more than I go to my Derby shop and feeds back, so he's got my eyes on the road.”
Costcutter Southborough
The integration of Costcutter into Bestway Wholesale’s retail proposition is also working well for him. Pete’s Meopham store, opened in January this year after a complete refurbishment, was the first dual-branded Costcutter-Bargain Booze store under Bestway’s dual-store strategy.
The innovative concept allows retailers with Bestway symbol groups like Costcutter, Select Convenience and best-one to take their beers, wines and spirits offer to the next level through the Bargain Booze store element, while the focus remains on a strong fresh food offering and a strong presence of local and regionally sourced products.
Pete says the concept has definitely helped the store to stand out, as the 1800 sq ft site trades less than 100 yards from a multiple convenience store (Tesco Express) that has been there for many years.
“Sales have gone up about 125 per cent overall and alcohol sales have more than doubled,” he says. “The key point of difference is Bargain Booze, because there's no other convenience store in the area that offers the same range of alcohol and that pricing that we can offer. Also, in that particular store, we have a lot of local suppliers for food products.”
Pete believes that the Costcutter takeover by Bestway Wholesale gives retailers more opportunities to buy stock from, in addition to the benefits expected from greater buying power, but he feels that an offer like Co-op own brand range is essential for the success of the stores.
“I think a major, a multiple own brand is vital. Whether it's Co-op or another supermarket own brand, it's important. I don't think having an independent own brand will work. It needs to be a multiple own brand,” he says.
Investing in stores
Pete is one retailer who continuously invests in his stores. He did a major refit of his Brockley store in 2018 and opened the Southborough store in September 2020. Now, the latest one, at Meopham, has seen the site double in size with a big extension.
He is known for his meticulous, data-driven approach to store openings and refurbishments, backed by thorough research of the area and demographic. He also makes use of the data on their customer persona from Costcutter’s Shopper First programme and tailors his range accordingly.
At present, Pete’s priority is to make sure that the refrigeration is up to date. “Because obviously, we are having this [energy bills] issue, so making sure you have got new refrigeration which is more energy efficient. At the moment, we are focusing more on energy consumption. The store has got an older lighting system. We are upgrading it to LED lighting. The next sort of 18 months will be [about] energy efficiency,” he explains.
Costcutter Brockley in Lewisham
While the cost-of-living crisis and inflationary pressures affect the business, Pete hopes that the customers would not abandon their local stores, just as in the Covid-19 pandemic.
“I think people are not going to supermarkets to do a larger weekly shop. They are going to stay more local and do daily shopping,” he says, adding that people would also prefer to have a good meal at home instead of eating out in restaurants. “So they come in and get a good quality meal and a nice bottle of wine, which is going to save them a lot more money than going to a nice posh restaurant.”
He has seen a decline in shoppers since the pandemic restrictions ended, but the sales have now “levelled up”, he reveals. “It's back to what it was. For the last year, if you look month on month, we are now actually up. We are still in a good place.”
Pete agrees that margins are going to be an issue if the current situation persists. “We are seeing price increases on a daily basis at the moment. So I do think margins will become an issue,” he says.
“The advantage I had, well, I've got access to Costcutter, I've got access to Bestway cash and carry, obviously, we have got the margins and so I can shop around and find cheaper goods. Possibly my cost of goods can be reduced by having access to all the different wholesalers,” he adds.
Pete Patel
However, Pete wants retailers to bear in mind that everyone is in this cost-of-living crisis, and this is not the time to make high margins.
“It is important to be reasonable so the customer does feel that they're getting a good value. Running good promotions, making sure they have got good value perception when they come into the store is important,” he suggests.
And it's also important to stock a wide range for your local area, he adds. “I think there's always going to be a requirement for good independent retailers. So someone new is coming in, just do the research of their local area and see what their requirements are.”
A shopper gazes at empty shelves that contained bottled water in a supermarket in Falls Church, VA, as a severe snowstorm hits the Washington D.C. area February 5, 2010.
Big-name retailers such as Walmart are increasingly using analytics to blunt the impact of one of the most unpredictable performance variables of shopping: weather.
Weather data, once used strictly for inventory planning, is now helping retailers localise advertising and decide when to discount seasonal items such as sweaters.
Walmart, whose inventory planning with artificial-intelligence software incorporates weather analysis, reduced sunscreen prices a couple weeks earlier than usual this year in parts of the US. Weather data forecasting a wetter-than-usual autumn in some US regions was a factor in its decision, whereas several years ago, it likely would not have been, said Kirby Doyle, a skin-care category replenishment adviser to the world's biggest retailer.
"In the beginning, (weather data) was just a forecast model for high-level planning," said Doyle, who works for Beiersdorf, which makes personal-care products. "Now we’re infusing it into pre-season planning and throughout the season to diagnose the impact of weather, and for things like scheduling promotions.”
A niche group of weather consultants — from Germany's Meteonomiqs to US firms Planalytics and Weather Trends International — is using breakthroughs such as cloud computing to process once-unimaginable amounts of data.
Demand for such data is growing amid heightened weather volatility due to climate change. The National Retail Federation in the US, which is chaired by a Walmart executive, issued a report with Planalytics in July, recommending retailers pay more attention to weather analysis.
New weather-data tools, centred on pricing, may soon be hitting the market. Planalytics and BearingPoint, a management consultancy, are partnering to build software retailers can integrate into their analytical models for setting prices.
“Weather is something you can’t control,” BearingPoint managing consultant Ryan Orabone said at an industry workshop last month to unveil the new initiative. “But you can control the analytics. And pricing, you absolutely control.”
It is natural for a warm October, like this year's in the US, to cause retailers to sweat ahead of the holidays. "It needs to get cold for our business to really perform well in Q4,” Tractor Supply CEO Hal Lawton said last month on a quarterly call.
The company, which uses weather analytics, sells cold-weather products like heating pellets and outerwear.
Weather analytics can help companies like Tractor Supply decide whether to discount winter items, said Planalytics CEO Fred Fox, whose clients include Dick's Sporting Goods and Ross Stores.
If November temperatures in the US drop below 2023 levels - which forecasts suggest is likely - a discount now could mean a missed opportunity later, Fox said.
As intuitive as that may seem to a retailer, they do not always get it right.
In August, Lowe's chief financial officer Brandon Sink cited cold, wet weather in May as the reason for weaker sales in the prior quarter.
But that description is inaccurate, said Bill Kirk, founder of Weather Trends, whose clients include Target, Gap, and Tractor Supply.
May was indeed wet, Kirk's data shows, but not cold. It was the hottest May in six years for the US, he said, and third-hottest in four decades. "Welcome to the world of retail excuses not based on facts," he said.
Rising temps, rising demand
About every three weeks in the US, a natural disaster causes $1 billion or more in damages, according to the US National Oceanic and Atmospheric Administration, up from once every three months in the 1980s.
Planalytics, which uses computer models to help retailers understand how weather affects sales, is on pace to provide clients with twice as many models in 2024 as it did last year, said Evan Gold, the company’s executive vice president of partnerships. Since 2019, that figure has shot up ninefold.
Retailers typically see weather's impact in foot traffic and sales, said Stefan Bornemann, head of Meteonomiqs, whose clients include retailers using the e-commerce platform Shopify. "The impact could get bigger, given more severe weather patterns,” he said.
Kirk has analysed how sales for a given product rise or fall with each degree of temperature change. Sales of horse blankets rise 7 per cent per degree colder and Starbucks coffee sales climb 2 per cent, he said.
Some clients use Kirk's data for so-called dynamic pricing, the practice of adjusting prices to demand. If a sales season looks particularly weak, clients may implement small markdowns early, rather than be forced to impose larger ones later to clear excess inventory, Kirk said.
The days of retailers using weather as an excuse for a poor earnings season should be over, he added.
“Wall Street hates that excuse,” Kirk said. “What you’re saying to your investors is, ’We can’t control our business.’”
Supermarket Sainsbury’s has become the first grocer to extend its Aldi price-match campaign to its 800 local convenience store outlets.
In a bold move by its boss to win back market share from the German discounter, Britain’s second-largest supermarket chain today (4) has added price matches on 200 daily staples — including milk, chicken, bread and vegetable oil — in its local convenience stores.
Simon Roberts, chief executive, told The Times that he had decided to roll out the campaign because customers had told him that they “really love the convenience of Sainsbury’s Local, but would really like to see value on the products we buy most often.
“What we’re seeing from customers is that they want to be sure they’re getting the best value.
“UK grocery is one of the most, if not the most competitive markets in the world,” Roberts said. “What we’ve seen is lots of new, smaller supermarkets grow in the UK, and so we have to be competitive on everyday products that customers buy, in order for them to be confident in our value.”
He added that matching with Aldi prices “gives customers real confidence”, particularly when shoppers’ budgets are squeezed.
The Aldi price-match scheme will replace Sainsbury’s “pocket friendly prices” campaign, which launched last year to help customers find cheaper items in its Local shops more easily.
Sainsbury’s is targeting between 20 and 25 new Local stores each year, as part of its ongoing expansion plan, which includes opening more larger-format supermarkets. It will open a new convenience shop at Edinburgh Airport in December, in a unit previously occupied by Marks & Spencer. It will be Sainsbury’s first airport store.
“Whether on the way to work, or travelling from a station, local stores play such an important role in people’s lives," Roberts said.
Waitrose is to open 100 new convenience shops over the next five years as part of a £1 billion investment, while Marks & Spencer unveiled plans to open ten new convenience stores this year and renew up to 50. Morrisons plans to open 400 more of its Morrisons Daily convenience stores, with a wider goal of hitting 2,000 smaller stores in 2025.
A convenience store owner in Glasgow has retired and handed over the keys after serving the community for 44 years.
The retiring shopkeeper couple, Abdul Haq and his wife Hameedah, have run Disqu Blu convenience store in Glasgow since 1980.
Speaking to a local media, Haq explained how for past 44 years, he have been working from 6am each morning, seven days a week, - equating to nearly 200,000 hours in the shop.
He said his favourite part of the job has always been the interactions with customers who he will miss chatting to.
“I always speak to all my customers,” he said. “I’m that kind of person. I love people, and I enjoy speaking to everyone that comes in. I’ve got customers who have moved away, but when they come back to Glasgow they always pop in to see me. I love that kind of thing. It’s very personal.
“The people around here are lovely. I’ll miss them very much.”
“It was always going to be time to retire at some stage,” he said. “I probably should have retired years ago! But I just love being here. I’ve met so many nice people. I’ve got a lot of good memories from this place.”
The couple has run Disqu Blu since 1980. Though Haq will no longer be working in the shop - which was originally a tobacconist stocking Disque Bleu cigarettes, hence the distinctive name - he won’t be settling down into a dressing gown and slippers anytime soon.
“I’m not going to sit in the house all day,” he said. “I think I’ll do some charity work. I want to learn Arabic as well. I can read it but I can’t really speak it. So I’ll learn that, then I can travel around the Middle East. And I’d like to see more of Scotland. I’ve never been around the country much, working in here all the time, but I’d love to explore more of it.”
Haq's daughter Farah was only a year old when her parents took the shop.
“It’s more than just a business,” she said. “They’ve been here so long that customers have grown old with them, and become family and friends. We’ll miss it, because it’s been such a big part of all our lives. We’ve all grown up in here and done our bit in the shop, so it’s been very much a family business.
“It’s an emotional time. But I think it's the right moment for them to retire now. It’s a whole new chapter.
"I’ve really lucked out with my parents. They’re amazing role models. They’re so hardworking, and they’ve really given back to the local community. I look up to them a lot. Everyone knows them around here, they all call my dad Chiefy and my mum Mrs Chiefy. It’s a real community feel, which you don’t really get these days with supermarkets.”
innocent drinks, Europe’s leading healthy drinks company, is announcing a new partnership with Alexandra Rose Charity as it advances its mission to help people live well through the delicious goodness of fruits and vegetables.
Government statistics reveal that just one third of adults, and 12 per cent of 11–18-year-olds, are managing to get the recommended “Five a Day”. This is even starker for lower-income families, with the most deprived fifth of adults consuming 37 per cent less fruit and veg than the least deprived, and their children 29 per cent.
innocent is launching its partnership with Alexandra Rose Charity by teaming up with Co-op, to help donate a portion of fruit & veg for every smoothie bought in stores. The charity helps families in need to buy and eat more fresh fruit & veg. Until 19th November 2024, innocent will donate the cost of a portion of fruit and veg (£0.24) to the Alexandra Rose Charity for every “Mango & Passionfruit” and “Strawberry & Banana” smoothie sold in UK Co-op stores.
innocent’s partnership with Alexandra Rose Charity will see a total of 520,000 portions of fruit & veg donated by the end of the year through the charity’s Rose Vouchers for Fruit & Veg Project. Rose Vouchers are given out to families every week, helping them to afford fresh fruit and veg from local markets for them and their children.
John Taylor, General Manager for UK & Ireland, innocent Drinks commented,“At innocent, we’re on a mission to help make sure everyone can access the delicious goodness of fruit and veg - its why our drinks are crammed full of the stuff. Eating a wide variety of fruit and vegetables is key to a healthy and nutritious diet, but we know that lots of us aren’t getting enough of it. Lower-income families face significant barriers to ensuring they can give their children the nutrition they need.
"Our partnership with Alexandra Rose Charity, and campaign with Co-op marks an ongoing commitment to helping improve access for everyone so they can unlock the health benefits of a balanced diet.”
Jonathan Pauling, Chief Executive at Alexandra Rose Charity, commented, “We are thrilled to be working with innocent Drinks and the Co-op to raise awareness of the challenges that families up and down the country are facing in affording to put healthy food on the table for them and their children. Food related ill-health costs the UK 98 billion a year, to the NHS, the economy and society.
"The long-term consequences of a lack of access to healthy food has a detrimental effect on health, wellbeing, and life chances. Through the funds raised from this promotion, we will be able to help families in need to make sure they can give their children the best possible start with a diet rich in fresh fruit & veg.”
Sinead Bell, Co-op’s Commercial Director, commented,“Supporting campaigns that address the issue of food poverty and access to food is important to us and the millions of Co-op member owners, and we are proud to be partnering with innocent on this fantastic initiative across our stores.”innocent drinks and Co-op team up to donate portions of fruit and veg
As the final key retail season of the year approaches, Nisa retailer NP Group is gearing up for Christmas with a renewed focus on store activation and point-of-sale (POS) strategy to drive sales following a successful Halloween.
With seasonal shopping trends in full swing, effective in-store activation and visibility are crucial for smaller retailers to capture customer attention and keep up with larger competitors. Data from Retail Economics shows that UK shoppers spent approximately £10 billion on seasonal products in 2023, with Halloween contributing £650 million alone, marking a steady increase in seasonal shopping over recent years.
POS and store activation remain pivotal in capturing these sales opportunities, as shoppers are more likely to make purchases when displays are both visually engaging and convenient to access.
Anthony Furnell, Head of Retail Operations at NP Group, which operates six stores, has significant experience in retailing. From his background with major retailers and suppliers, he understands that capitalising on seasonal periods is critical for convenience stores.
“Seasonal activation is really important. It’s a very competitive sector, and we’re not just competing with large supermarkets; we’re competing for convenience and ease for our customers. If a customer doesn’t see it, they don’t potentially buy it, so activation is key.”
NP Group’s Halloween strategy this year exemplifies how store activation can capture attention and improve sales. The Darwen store has allocated a dedicated Halloween space, complete with a hanging spider from the ceiling, vinyl window displays, and strategic POS items like floor stickers and overhead signs. This dynamic approach engages customers, driving incremental purchases and creating a one-stop shop for seasonal needs.
However, it’s not one-size-fits-all; each store location is tailored based on size, layout, and customer demographics.
“Our Menston store, for example, is our smallest, so we have to be selective about our seasonal range. Space is key—making sure the displays are in the right place is essential,” Anthony notes. “We’ve also have a group store WhatsApp to share best practices and ideas across locations, ensuring a cohesive yet unique seasonal activation for each store.”
Planning and evaluation are equally important in maximising seasonal sales. To meet the varying demands of each store, NP Group conducts pre-sales planning and end-of-season evaluations, which allows them to better anticipate the stock and POS materials required for future seasonal events.
“By evaluating what sold well and what didn’t, we can refine our approach and ensure we’re offering the right products in the right places for customers,” explains Anthony. “Seasonal displays and POS act as magnets that draw the eye and engage customers on a whole new level. In today’s fast-paced retail environment, it’s vital to have a captivating, well-organised space for seasonal items that entices shoppers, encourages browsing, and, ultimately, drives incremental sales.”
In addition to Halloween, Christmas activation is also underway, with stores gradually introducing festive products.
According to Anthony, “Christmas is another significant period where creative, well-placed POS and choice can create a festive in-store experience, encouraging customers to shop locally and find what they need without visiting larger stores.”
Both Halloween and Christmas offer strong opportunities for convenience retailers to increase footfall and improve basket spend. The rise in seasonal spending in convenience settings, combined with strategic activation, ensures that stores remain competitive and relevant for shoppers seeking both impulse buys and essential items.
For retailers, these activation strategies not only boost sales but also enhance customer satisfaction by creating an engaging shopping experience that keeps them coming back throughout the winter season.