Snacking remains a huge part of day-to-day UK life, with the average consumer snacking five times per day1. Within the convenience channel, Crisps & Snacks have continued to be a critical sales driver for retailers. Over the last five years, savoury snacks have delivered consistent value growth of +2.4 per cent2, with Crisps & Snacks being the second biggest segment at 44 per cent of snacking occasions3.
The savoury snacking category also performed well throughout the pandemic, with one in 12 baskets4 containing some type of savoury snack. Trips to convenience stores for savoury snacks are in growth year on year at 6.4 per cent5 and performing ahead of other Food & Beverages & Sweet Snacking6. Post pandemic, Convenience has also performed well: +6.8 per cent vs year ago, +3.4 per cent vs 2020 and +5.1 per cent vs 20197.
For retailers, this means the category is well positioned for growth. There is a real opportunity for retailers to capitalise on this and to see greater returns from savoury snacking, and our HERO 25 range of bestselling SKUs is perfectly positioned to help retailers maximise their Crisps & Snacks sales.
PepsiCo’s brands are iconic favourites for flavour and fun – but they were also in the crosshairs of HFSS. What has PepsiCo done to deal with the new rules and what advice does it offer?
There has been a lot of confusion concerning the upcoming HFSS rules, particularly regarding which regulations will be in force in 2022 and the impact upon retailers. Due to the legislation rules around number of employees and store size, our estimates show that the Convenience channel won’t be affected as much as Grocery. The majority of Convenience stores will likely be unaffected at this stage, especially since the government has delayed the promotional restrictions until Oct 2023.
There are a relatively small number of C-stores >2000sq ft and >50 employees (we estimate 20 per cent if looking at total convenience channel (excluding Tesco Express, Sainsbury’s Local, Little Waitrose & Coop) or 10 per cent if looking at Symbols & Indies, who will have to make changes to the location of Crisps & Snacks (outside of the main fixture) from October 2022. This represents a great opportunity for retailers to continue providing a balanced choice of savoury snacking options, catering to shopper demand for great-tasting products while also making gradual changes to meet rising needs for health.
The good news is that the Savoury Snacks Category is well positioned to adapt to the changing requirements through reformulation, and we are well prepared to support retailers through this transition. As part of our commitment to encourage shoppers towards healthier snacking choices, we will also be reformulating and innovating across our portfolio. The key to encouraging shoppers towards healthier choices will be providing a strong range of HFSS compliant savoury snacks that can complement existing core bestsellers, helping retailers to offer Taste and Health in order to deliver great returns for store owners.
What are your HFSS recommendations for retailers?
The key thing to remember for stores impacted by locations restrictions is that non-HFSS products can be placed anywhere in-store and can be merchandised where HFSS products were previously located.
For example, if you previously had a stand of Walkers Cheese & Onion this could be replaced with Walkers Oven Baked Cheese & Onion. The Walkers Oven Baked range is an ideal option for retailers, with the brand well-established and already popular amongst consumers, as proven by brand growth of +26.4 per cent vs year ago8. The range includes 2 of the top 3 SKUs within the ‘Better For You’ segment; Walker Walkers Oven Baked Cheese & Onion 37.5g, which is the number 1 SKU and Walkers Oven Baked Ready Salted 37.5g, the number 3 SKU.
It’s worth all retailers remembering that it is still permitted to stock core bestsellers and locate these in the main fixture. For affected stores, it is only the location of HFSS products in the restricted “off-shelf” location zones that is forbidden and instead would be replaced by non-HFSS alternatives. As a result, best-selling savoury snacks are still the priority for Main Fixture. In fact, 75 per cent of sales come from Main Fixture so this area remains a great sales driver for retailers looking to maximise category sales9.
How does HFSS address consumer health needs?
Our latest consumer research shows that enjoyment and health are both primary needs present across all occasions10. As we build towards HFSS regulations coming into force, we’re expecting there to be a growing demand from consumers and further requirements for healthier snacking choices. Retailers should therefore continue to stock their best-selling Crisps & Snacks, while starting to gradually introduce new products that offer health, flavour and enjoyment without any compromise. As part of our wider ambition to encourage consumers towards healthier choices, we’re set to add a number of reformulated products to our core range in this channel, with taste-led launches across some of the UK’s most loved brands.
We have a long track record of bringing lower-calorie, lower-fat and lower-salt options to our products. Having been leaders for such a long time in this space, we welcome the new HFSS regulations and the spirit in which they were created. With a portfolio that includes some of the biggest brands within the savoury snacks category, we are excited to embrace this opportunity and drive scale growth for the category.
As part of part of PepsiCo Positive (PEP), our strategic end-to-end transformation plan with health and sustainability at the centre, we have announced an ambitious 50 per cent sales target for healthier or lower-calorie products. With 30 per cent of sales coming from non-HFSS snacks and an additional 20 per cent for snacks that are 100 kcal or less, this will shift our portfolio in a way that gives consumers the chance to continue making smart snacking choices.
Can you explain the PEP Strategies for Growth?
We do expect the overall demand for snacking products that meet expectations of both enjoyment and health will only grow over the next five years and beyond. Coupled with brand as the number-three product choice driver11, we’re excited about the chance to work alongside the retailing community to drive sales of products that tick all of these boxes. Overall, though, the strategy for growth in Crisps & Snacks has to be by using a balance of HFSS (core range) and non-HFSS offerings. To balance this transition carefully, and avoid sacrificing sales of core best-sellers and overall sales, retailers should look to follow this advice:
Drive availability & space of best-sellers in the main fixture
Looking at value sales rankings over the year, 250 SKUs deliver 80 per cent of sales12, out of approx. 3000 live SKUs available, so it is important to list SKUs that will sell through quickly and deliver the biggest cash return (with a combination of high POR and high rate of Sale).
We know from our Convenience path to purchase research that 75 per cent of Crisps & Snacks Conversion13 (purchases) comes from main fixture so this is the most critical selling space to get right because it is the destination in-store.
Tip: The majority of space in main fixture should be dedicated to best-selling core range. Continue to rationalise low rate-of-sale products or duplicates, and replace with additional facings to core best-sellers or taste-led HFSS-compliant innovation.
Drive impulse purchases from the high traffic locations in-store e.g. Front of Store, Aisle Ends, Queue Systems, Till Points
Our path to purchase convenience research shows that 25 per cent of Crisps & Snacks conversions14 (purchases) come from other touchpoints in-store and shoppers are twice as likely to buy on impulse vs planned in Convenience vs total channel. In addition six out of 10 purchase decisions15 take place in-store and are influenced by seeing the product on display.
Top Up & Distress missions performed particularly well in this channel (+7 per cent 2021 vs 2019)16 during lockdown and there could be further opportunity for Impulse to take a greater share of these missions in the future by making sharing and multipacks more visible.
Tip: Existing core range can still be displayed in all parts of the store for the majority of retailers in this channel. It is only in a small number of stores where HFSS compliant Crisps & Snacks (those with an NPM score of less than four) need to be displayed.
Taste-led healthier innovation is critical for long-term growth
Products that do not deliver against taste are unlikely to last the distance in this channel and may not deliver a competitive rate of sale. This is because enjoyment and taste is the biggest consumer need in 32 per cent of Impulse snacking occasions17 and even more important in Convenience than large grocery stores. Taste is the #1 product choice driver18.
Tip: When HFSS legislation goes live, retailers should make considered choices about whether all HFSS compliant products deliver against taste needs and assess the rate of sale the same as they would any new product.
We recommend starting with brands that are well-known to shoppers with a proven track record of delivering great taste. New products should ideally supplement core best-sellers and we recommend retailers replace tail products that deliver the lowest returns.
How can independent retailers best prepare their ranges and merchandising for BNI sales and attract more customers? What would your ideal store look like?
With shopper missions continuing to evolve, it’s never been more important for retailers to follow the needs of their shoppers and merchandise their ranges accordingly. Our research finds that 20 per cent of retailers intend to re-merchandise their savoury snacks fixture19, with one third planning to maintain a wide range of multipacks and large sharing bags20 and another third planning to increase the number of single packs21.
We can clearly see that retailers are taking the lead in adapting their ranges based on the needs of their shoppers. Through our portfolio of leading brands, we offer retailers savoury snacking options in a range of formats to help cater to their shoppers’ needs. Our Walkers DRIVE 25 range was created with medium and larger stores in mind that have the capacity to offer their shoppers a broader range of savoury snacks, featuring a mix of formats which can be adapted to suit individual retailers’ requirements.
1 PepsiCo Consumer Landscape study 2021 (Bolt) – All macro Snacking UK
2 AC Nielsen Total Impulse 5 Year CAGR MAT 23/4/2022 – Total Savoury Snacks
3 PepsiCo Consumer Landscape study 2021 (Bolt) – All macro Snacking UK
4 Kantar – Aggregated On the Go and Take Home Panel – MAT to 22/3/2022
5 Kantar – Aggregated On the Go and Take Home Panel – MAT to 22/3/2022
6 Kantar – Aggregated On the Go and Take Home Panel – MAT to 22/3/2022
7 AC Nielsen Total Impulse Crisps, Snacks, Nuts MAT to 23/4/2022 – CSN
8 AC Nielsen Crisps, Snacks and Nuts – MAT 23/4/2022 Total Impulse Value Sales Walkers Oven Baked brand
The UK retail sector is bracing for a challenging but opportunity-filled 2025, according to Jacqui Baker, head of retail at RSM UK. While the industry grapples with rising costs and heightened crime, advancements in artificial intelligence and a revival of the high street offer potential pathways to growth, she said.
The latest Budget delivered a tough blow to the retail sector, exacerbating existing financial pressures. Retailers, who already shoulder a significant portion of business rates and rely heavily on a large workforce, face increased costs from rising employers’ National Insurance Contributions.
“Higher costs will also eat into available funds for future pay rises, benefits or pension contributions – hitting retailers’ cashflow in the short term and employees’ remuneration in the longer term,” Baker said.
“Retailers must get creative to manage their margins and attract footfall and spend, plus think outside the box to incentivise employees if they’re to hold onto talented staff.”
On the brighter side, falling inflation and lower interest rates could ease operational costs and restore consumer confidence, potentially driving retail spending upward.
High street resurgence
Consumers’ shopping habits are evolving, with a hybrid approach blending online and in-store purchases. According to RSM UK’s Consumer Outlook, 46 per cent of consumers prefer in-store shopping for weekly purchases, compared to 29 per cent for online, but the preference shifts to 47 per cent for online shopping for monthly buys and to 29 per cent for in-store. The most important in-store aspect for consumers was ease of finding products (59%), versus convenience (37%) for online.
“Tactile shopping experiences remain an integral part of the purchase journey for shoppers, so retailers need to prioritise convenience and the opportunity for discovery to bring consumers back to the high street,” Baker noted.
The government’s initiative to auction empty shops is expected to make brick-and-mortar stores more accessible to smaller, independent retailers, further boosting high street revival, she added.
A security guard stands in the doorway of a store in the Oxford Street retail area on December 13, 2024 in London, EnglandPhoto by Leon Neal/Getty Images
Meanwhile, retail crime, exacerbated by cost-of-living pressures, remains a significant concern, with shoplifting incidents reaching record highs. From organised social media-driven thefts to fraudulent delivery claims, the methods are becoming increasingly sophisticated.
“Crime has a knock-on effect on both margins and staff morale, so while the government is cracking down on retail crime, retailers also have a part to play by investing in data to prevent and detect theft,” Baker said.
“Data is extremely powerful in minimising losses and improving the overall operational efficiency of the business.”
AI as a game-changer
Artificial intelligence is emerging as a transformative force for the retail sector. From personalised product recommendations and inventory optimisation to immersive augmented reality experiences, AI is reshaping the shopping landscape.
“AI will undoubtedly become even more sophisticated over time, creating immersive and interactive experiences that bridge the gap between online and in-store. Emerging trends include hyper-personalisation throughout the entire shopping journey, autonomous stores and checkouts, and enhanced augmented reality experiences to “try” products before buying,” she said, adding that AI will be a “transformative investment” that determines the long-term viability of retail businesses.
The Amazon Fresh store in Ealing, LondonPhoto: Amazon
As financial pressures ease, sustainability is climbing up the consumer agenda. RSM’s Consumer Outlook found 46 per cent would pay more for products that are sustainably sourced, up from 28 per cent last year; while 44 per cent would pay more for products with environmentally friendly packaging, compared to 36 per cent last year.
“However, ESG concerns vary depending on age and income, holding greater importance among high earners and millennials. With financial pressures expected to continue easing next year, we anticipate a renewal of sustainability and environmentally conscious spending habits,” Baker noted.
“Retailers ought to tap into this by understanding the preferences of different demographics and most importantly, their target market.”
Southend-on-Sea City Council officials have secured food condemnation orders from Chelmsford Magistrates Court, resulting in the seizure and destruction of 1,100 unauthorised soft drinks.
The condemned drinks, including Mountain Dew, 7-UP, Mirinda, and G Fuel energy drinks, were found during routine inspections of food businesses across Southend by the council’s environmental health officers.
Council said these products contained either banned additives like Calcium Disodium EDTA or unauthorised novel ingredients such as Potassium Beta-hydroxybutyrate.
Calcium Disodium EDTA has been linked to potential reproductive and developmental effects and may contribute to colon cancer, according to some studies. Potassium Beta-hydroxybutyrate has not undergone safety assessments, making its inclusion in food products unlawful.
Independent analysis certified that the drinks failed to meet UK food safety standards. Magistrates ordered their destruction and ruled that the council's costs, expected to total close to £2,000, be recovered from the businesses involved.
“These products, clearly marketed towards children, contain banned or unauthorised ingredients. Southend-on-Sea City Council will always take action to protect the public, using enforcement powers to ensure unsafe products are removed from sale,” Cllr Kevin Robinson, cabinet member for regeneration, major projects, and regulatory services, said.
“As Christmas approaches, we hope this sends a strong message to businesses importing or selling such products: they risk significant costs and possible prosecution.”
The council urged residents to check labels when purchasing imported sweets and drinks, ensuring they include English-language details and a UK importer's address.
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A customer browses clothes inside Charity Super.Mkt at Brent Cross Shopping centre in north London on, December 17, 2024
Bursting with customers one afternoon the week before Christmas, a second-hand charity shop in London's Marylebone High Street looked even busier than the upscale retailers surrounding it.
One man grabbed two puzzle sets and a giant plush toy as a present for friends, another picked out a notebook for his wife.
“Since the end of September, we've seen a huge uplift in people coming to our shops and shopping pre-loved,” said Ollie Mead, who oversees the shop displays - currently glittering with Christmas decorations - for Oxfam charity stores around London.
At the chain of second-hand stores run by the British charity, shoppers can find used, or "pre-loved", toys, books, bric-a-brac and clothes for a fraction of the price of new items.
Popular for personal shopping, charity stores and online second-hand retailers are seeing an unlikely surge in interest for Christmas gifts, a time of year often criticised for promoting consumerism and generating waste.
A report last month by second-hand retail platform Vinted and consultants RetailEconomics found UK customers were set to spend £2 billion on second-hand Christmas gifts this year, around 10 per cent of the £20 billion Christmas gift market.
A woman browses some of the Christmas gift ideas in a store on December 13, 2024 in London, England. Photo by Leon Neal/Getty Images
In an Oxfam survey last year, 33 per cent were going to buy second-hand gifts for Christmas, up from 25 percent in 2021.
“This shift is evident on Vinted,” Adam Jay, Vinted's marketplace CEO, told AFP.
“We've observed an increase in UK members searching for 'gift' between October and December compared to the same period last year.”
According to Mead, who has gifted second-hand items for the last three Christmas seasons, sustainability concerns and cost-of-living pressures are “huge factors”.
Skimming the racks at the central London store, doctor Ed Burdett found a keychain and notebook for his wife.
“We're saving up at the moment, and she likes to give things another life. So it'll be the perfect thing for her,” Burdett, 50, told AFP.
“It's nice to spend less, and to know that it goes to a good place rather than to a high street shop.”
'Quirky, weird
Wayne Hemingway, designer and co-founder of Charity Super.Mkt, a brand which aims to put charity shops in empty shopping centres and high street spaces, has himself given second-hand Christmas gifts for “many, many years”.
“When I first started doing it, it was classed as quirky and weird,” he said, adding it was now going more “mainstream”.
Similarly, when he first started selling second-hand clothes over 40 years ago, “at Christmas your sales always nosedive(d) because everybody wanted new”.
Now, however, “we are seeing an increase at Christmas sales just like a new shop would”, Hemingway told AFP.
“Last weekend sales were crazy, the shop was mobbed,” he said, adding all his stores had seen a 20-percent higher than expected rise in sales in the weeks before Christmas.
“Things are changing for the better... It's gone from second-hand not being what you do at Christmas, to part of what you do.”
Young people are driving the trend by making more conscious fashion choices, and with a commitment to a “circular economy” and to “the idea of giving back (in) a society that is being more generous and fair,” he said.
At the store till, 56-year-old Jennifer Odibo was unconvinced.
Buying herself a striking orange jacket, she said she “loves vintage”.
But for most people, she confessed she would not get a used gift. “Christmas is special, it needs to be something they would cherish, something new,” said Odibo.
“For Christmas, I'll go and buy something nice, either at Selfridges or Fenwick,” she added, listing two iconic British department stores.
Hemingway conceded some shoppers “feel that people expect something new” at Christmas.
“We're on a journey. The world is on a journey, but it's got a long way to go,” he added.
According to Tetyana Solovey, a sociology researcher at the University of Manchester, “for some people, it could be a bit weird to celebrate it (Christmas) with reusing.”
“But it could be a shift in consciousness if we might be able to celebrate the new year by giving a second life to something,” Solovey told AFP.
“That could be a very sustainable approach to Christmas, which I think is quite wonderful.”
Lancashire Mind’s 11th Mental Elf fun run was its biggest and best yet – a sell-out event with more than 400 people running and walking in aid of the mental charity, plus dozens more volunteering to make the day a huge success.
The winter sun shone on Worden Park in Leyland as families gathered for either a 5K course, a 2K run, or a Challenge Yours’Elf distance which saw many people running 10K with the usual running gear replaced with jazzy elf leggings, tinsel and Christmas hats.
And now the pennies have been counted, Lancashire Mind has announced that the event raised a fantastic £17,000.
This amount of money allows Lancashire Mind to deliver, for example, its 10-week Bounce Forward resilience programme in eight schools, reaching more than 240 children with skills and strategies that they can carry with them throughout their lives, making them more likely to ‘bounce forward’ through tough times.
The event was headline sponsored by SPAR for a third year through its association with James Hall & Co. Ltd, SPAR UK’s primary retailer, wholesaler, and distributor for the North of England.
“On behalf of the entire team at Lancashire Mind, we want to extend a heartfelt thank you to the 400+ incredible participants who joined us for Mental Elf 2024!” said Organiser Nicola Tomkins, Community and Events Fundraiser at Lancashire Mind.
“Your support, energy and commitment to raising awareness for mental health makes all the difference. Together, we've taken another important step towards breaking the stigma around mental health and promoting wellbeing for all in our community. We couldn't have done it without you!”
Worden Hall became the hub of the event where people could enjoy music from the Worldwise Samba Drummers and BBC stars Jasmine and Gabriella T, plus lots of family friendly activities and a chance to meet Father Christmas. Pets also got in on the act in the best dressed dog competition.
Lancashire Mind CEO David Dunwell said: “It was heart-warming day, full of community spirit and festive cheer, but with a serious aim to raise funds for mental health.
“We are so grateful to everyone who bought a ticket and fundraised or donated to help us smash our target. The money raised goes directly to supporting Lancashire Mind’s life-changing mental health services. These funds help provide wellbeing coaching, support groups, and educational programmes to individuals and families in need of mental health support in our community.”
The concept of Mental Elf was created by Lancashire Mind and news of the event has spread right across the country in recent years, with around 40 other local Mind charities hosting a similar event in 2024.
Lancashire schools were also encouraged to host their own Mental Elf-themed event this year, whether that was a run, bake sale or dress up day, and raised more than £1,000 in total.
Philippa Harrington, Marketing Manager at James Hall & Co. Ltd, said: “There was a lovely festive feel in the air at Mental Elf and we were delighted to see even more individuals, families, and canine companions taking part in its new home of Worden Park.
“We are also very pleased to see the uptake that Mental Elf has had in schools, and congratulations go to the Lancashire Mind team for taking it to new participants and for raising a fantastic amount of money for an important cause.”
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A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.
UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.
Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.
The updates follow news this week of higher inflation in Britain - an outcome that caused the Bank of England on Thursday to leave interest rates unchanged.
Retail sales by volume grew 0.2 per cent in November after a drop of 0.7 per cent in October, the Office for National Statistics said Friday.
That was less than analysts' consensus for a 0.5-percent gain.
"It is critical delayed spending materialises this Christmas to mitigate the poor start to retail's all-important festive season," noted Nicholas Found, senior consultant at Retail Economics.
"However, cautiousness lingers, slowing momentum in the economy. Households continue to adjust to higher prices (and) elevated interest rates."
He added that consumers were focused on buying "carefully timed promotions and essentials, while deferring bigger purchases".
The ONS reported that supermarkets benefited from higher food sales.
"Clothing stores sales dipped sharply once again, as retailers reported tough trading conditions," said Hannah Finselbach, senior statistician at the ONS.
Retail sales rose 0.2% in November 2024, following a fall of 0.7% in October 2024.
Growth in supermarkets and other non-food stores was partly offset by a fall in clothing retailers.
The Labour government's net borrowing meanwhile dropped to £11.2 billion last month, the lowest November figure in three years on higher tax receipts and lower debt-interest, the ONS added.
The figure had been £18.2 billion in October.
"Borrowing remains subject to upside risks... due to sticky interest rates, driven by markets repricing for fewer cuts in 2025," forecast Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics.
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, commented that the later than usual Black Friday weekend meant November’s retail sales figures saw only a slight uptick as cost-conscious consumers held off to bag a bargain.
“Despite many retailers launching Black Friday offers early, November trade got off to a slow start which dragged on for most of the month. This was driven by clothing which fell to its lowest level since January 2022. The only saving grace was half-term and Halloween spending helped to slightly offset disappointing sales throughout November,” Baker said.
“As consumer confidence continues to build and shoppers return to the high street, this should translate into more retail spending next year. However, there are big challenges coming down the track for the sector, so retailers will be banking on a consumer-led recovery to come to fruition so they can combat a surge in costs.”
Thomas Pugh, economist at RSM UK, added: “The tick up in retail sales volumes in November suggests that the stagnation which has gripped the UK economy since the summer continued into the final months of the year.
“While the recent strong pay growth numbers may make the Bank of England uncomfortable, it means that real incomes are growing at just under 3 per cent, which suggests consumer spending should gradually rise next year. However, consumers remain extremely cautious. The very sharp drop in clothing sales in particular could suggest that consumers are cutting back on non-essential purchases.
“We still expect a rise in consumer spending next year, due to strong wage growth and a gradual decline in the saving rate, to help drive an acceleration in GDP growth. But the risks are clearly building that cautious consumers choose to save rather than spend increases in income, raising the risk of weaker growth continuing through the first half of next year.”