True entrepreneurs don’t just see opportunities; they seize them, reshape them, and build legacies that outlive their time.
Late Karnail Sandhar was one such visionary, a man who's entrepreneurial zest turned challenges into opportunities and dreams into legacies. In an era rife with obstacles and racism, he forged new paths and bulldozed ahead, transforming the UK’s convenience and wholesale sectors while leaving an indelible mark on the communities he touched.
One of the pioneering figures in convenience as well as wholesale world, Karnail sadly passed away a few months ago. While many of us know him as the force behind yesteryear’s wholesaling giant Sandhar and Kang cash and carry, he is also the first Asian-origin man to own a convenience store in the entire Warwickshire region.
His remarkable journey, as shared by his daughter Harbinder Sandhar in an emotional conversation with Asian Trader, reveals the story of a man who refused to let adversity define him.
Diving into detail about her father’s struggle, precise acumen in business, and risk-taking capability, Harbinder revealed how her father ended up playing an instrumental role in shaping the UK’s wholesale world as we know it today.
Karnail’s journey began with an unforgettable moment that would shape his life forever.
As a 12-year-old boy in Punjab in India, he watched his father break down in tears after a relative refused him a small loan that he needed to move to the UK for a better future. Eventually someone did intervene and help but watching his father crying helplessly implanted a seed in Karnail’s mind—a determination to become abundant with money and never let his family face such a situation ever again.
Karnail soon followed his father to the UK, landing here in 1956. He joined the Ford foundry factory where he went on to work for five years. Despite grueling hours filled with hard physical labour, his entrepreneurial spirit couldn’t be contained, eventually driving him to achieve the impossible.
She said, “While still working at the Ford factory, my father bought a shop. In those days, it was not an easy feat for a brown person to own a commercial property in England, but he still managed to do that. And in this process, he became the first Asian man to own a convenience store in Warwickshire.”
To further expand his income, he and his newly-wedded wife began selling home-stitched clothes door-to-door.
However, he soon realised that the scope for growth and stability lies in food and drinks sector, particularly of Indian spices and ingredients whose demand was rising sharply, Harbinder explained.
However, at the time, for an Asian origin man, trying to establish his own business was a tricky thing to do. Racism was rife and brown people were not welcome everywhere. Karnail’s newly established business and life also came under the radar, making him a victim of racism.
She revealed, “When my father opened his first shop, racism was at its peak. The shop was petrol bombed, and bricks were thrown at our house.”
Despite the hostility, Karnail remained focused and soon his business flourished. He soon bought another bigger shop in Leamington Spa. After a couple of years, he merged this shop with a neighbouring store, owned by Avtar Singh Kang, along with Swarn Singh Kang and Udham Singh Kang.
The merged shops very soon forayed into procuring their own goods directly from India, thus putting the foundation stone of Sandhar and Kang cash and carry.
“In 1960s, my father started importing spices and grocery items in large quantity through telex transfer from Amritsar in India. Nobody taught him how to do telex transfer; he figured out everything on his own,” Harbinder said.
It was around this time that Karnail quit his job in Ford foundry factory (after an ugly racism incident) and decided to put all his time and energy into growing his business.
“They (my father and Kang brothers) soon bought a couple of lorries to pick up the imported consignment from the port. They used to unload, load, pack them, put labels; they used to do everything on their own for a very long time. They first started supplying door to door and eventually to other stores.”
As the business expanded, Karnail and Kang brothers felt the need of a bigger space, so they bought a huge empty building which was formerly a Jaguar plant.
It was a huge 134,000 square feet space in Birchall Street in Birmingham that went on to host the biggest cash and carry for Asian foods in the UK at that time.
Apart from Asian food and spices, the massive new space also enabled Karnail to focus on stocking a wider range of alcohol range right from local brown ale to every variety of spirits and wines sourced from France, Germany, Spain, Italy and Yugoslavia.
Owing to the focus on this niche, Sandhar and Kang cash and carry soon came to be known as Midland’s largest and cheapest wine and spirits cash and carry.
Karnail also had an eye for identifying rising stars in the industry. He gave many their first platform at Sandhar and Kang Cash and Carry which eventually became a lifeline for other emerging food and drink businesses across the Midlands and beyond.
Harbinder informed, “Some of my father’s early clients were East End Foods, Bestway, Tilda and Cobra Beer. My father helped Lord Karan Bilimoria when no major wholesaler was ready to stock his beer line. He gave him space to stock his beer, and it soon became a huge hit.
"Sandhar and Kang was among the first wholesalers to pack own-brand products with SK as branding.
“My father used to help and uplift whoever sought his advice or help. Sometimes, he also gave credit to Asian entrepreneurs who wanted to open business or shops in Leamington Spa.
“My father achieved so much, and he was just 35 at the time. A very humble man, he stopped eating meat and completely embraced all the aspects of Sikhism, highly influenced by my very religious mother.
"He lived a simple life and the only thing he was fond of was cars. In 1973, he bought a Rolls Royce.”
Sandhar and Kang cash and carry grew rapidly in the late 1970s and 1980s, becoming the biggest wholesaler in Midlands. Retailers and smaller wholesalers as far away as Manchester, Bristol, Liverpool and London used to visit the depot. Another branch was soon opened in Wolverhampton.
Parallelly, in the late 1970s, Karnail turned his sights to Canada, spotting a major gap in the market in there.
Harbinder continued, “My father realised that there is no Indian shops in Canada so once again, he moved places to make a world for himself in a new land, this time to establish a new business for my brother. He founded an Indian grocery store called East West Foods and soon started importing Indian line.
“Very soon, the word went round and people from all over Canada started coming to Toronto to our store. The business soon flourished into chains of stores and forayed into wholesaling as well. In a way, my father played a crucial role in introducing Asian food and flavours in Canada.”
Life Rooted in Community
Despite his business successes, Karnail, along with his wife, remained deeply connected to his Sikh faith and his community, both in the UK and Canada alike.
Harbinder informed Asian Trader how her mother had brought a Guru Granth Sahib to the UK with her when she got married. Soon, the families from the community started gathering at the couple’s house to pay respect and conduct prayer meetings.
She said, “As the community grew, people rented a hall and requested my mother to bring the Guru Granth Sahib there so that more people can get together and pray. And that is how, they ended up founding the first Gurdwara in Leamington Spa.”
In 1998, Karnail fell seriously ill after which he retired from business and decided to dedicate his life to community service. He soon became the head of a gurdwara in Toronto and spent most of life there.
“My father was a generous man who was always ever ready to help anyone who is in need, be it friends, community people, business acquaintances, his employees or friends and relatives in India,” she said.
In his later years, Karnail also donated three acres of land in Punjab, India to a close friend Balbir Singh Sohi who wanted to open a school in the memory of his late wife.
“When my father came to know about the noble cause, he did not think twice and gave the land absolutely free.”
10 years later, the school, called JK Memorial Global School Bagrian, is a thriving and reputed institute with more than 700 students.
“My father was next to none. It was his sheer hunger for success and fire in his belly, that made him into what he was.
"He was among those extra-ordinary pioneering immigrants of the time who came to the UK with almost nothing yet managed to create not just legacies but also paved the way for future generations to come ,” Harbinder concluded.
In 2011, Sandhar and Kang Cash & Carry was sold to new owners Gurinder Gill and Ajminder Singh and is now known as SK Food and Drinks.
Karnail’s life story is a testament to resilience, vision, and community impact. From transforming the UK wholesale sector to empowering others through his generosity, his legacy extends far beyond business—a legacy of inspiration, perseverance, and lasting change.
Season of indulgence is here. It is the season when we forget diets and calorie counting; it is the time when crisps, snacks, and nuts come into their own, much like the glittering baubles we dust off every December.
Convenience stores know this better than anyone. December transforms these everyday items into must-haves, with shoppers piling their baskets high with everything from festive-flavored crisps to honey-roasted nut mixes that pair perfectly with a glass of mulled wine. After all, everyone craves a good crunch during Christmas movies or as we gather with friends and family.
For community convenience stores, the opportunity is ripe and delicious. The festive period is the perfect time to showcase creative displays of snacks that not only catch the eye but stir the imagination.
After all, what’s Christmas without a bowl of crisps? These little bites might not make the Christmas card, but they’re undeniably part of the magic.
PepsiCo is quick to back up the crunch-love with numbers.
A spokesperson points out that salty snacks in independent and symbol stores now clock in at a hefty £631.6million, growing at a rate of +18.0 per cent. Within this, Crisps, Snacks, and Nuts dominate, accounting for a jaw-dropping 94.1 per cent of value sales in total savoury snacks.
Matt Collins, Sales Director at KP Snacks, is excited about the Christmas boom.
“Treat occasions grow in the Convenience and Impulse channel over the festive season as friends and family seek out their favourite snacks to boost enjoyment of Christmas occasions,” he says, adding, “From parties to festive movie nights, Crisps, Snacks, and Nuts are a staple of Christmas get-togethers, creating a critical opportunity for retailers to bolster sales.”
Tash Jones, Commercial Director at Fairfields Farm, sees even more reason to be cheerful.
Jones says, “The snacking market overall is – and always has been – robust. The make-up of this can change, with interest in better-for-you increasing and more flavour discovery, but fundamentally the British public will always be looking for snacks, and more often than not this will be an impulse decision in a convenience location. As ‘meal’ occasions become less rigid, the opportunities in this category are only going to grow.”
Snacks anyway rule the convenience channel.
Tayto’s spokesperson points out the hard facts: in the convenience channel, savoury snacks are a £1bn category, growing at 5.1 per cent, outpacing the major mults’ +4.5 per cent. That makes them a key driver of footfall and a golden goose for independent retailers this festive season.
Crunching Into Christmas with bestsellers
If there’s one thing that unites the nation during the holidays, it’s the sheer joy of family time spent at home (accompanied by snacking).
Christmas is all about creating those “small, happy moments” with friends and family, and snacks are the unspoken heroes of these occasions. In fact, 45 per cent of shoppers say they find happiness in these little moments, which makes your snack aisle as critical as Santa’s workshop.
A PepsiCo spokesperson puts it plainly, “As consumers come together to connect at home this Christmas, many will also be looking for larger pack sizes of their favourite savoury snacks that they can enjoy together.”
“Sharing formats are now the largest segment within the Salty Snacks Category, making up 69.4 per cent of it. Stocking a variety of formats will help cater to different need states and therefore help drive sales.”
Shoppers look for elevated snacking options to share with friends and families during holiday celebrations. This leads to them increasing their savoury snacking spend by 36 per cent over the Christmas period, presenting a huge opportunity for retailers.
A name to bank upon here is KP Snacks.
As a leading snacks manufacturer, KP Snacks offers a broad portfolio of tasty products perfectly positioned to create value and generate demand by meeting all consumer needs this Christmas.
Brand is the most important factor influencing product choice and KP Snacks delivers iconic and trusted brands including KP Nuts and Tyrrells to help drive retailer sales.
Collins says, “KP Nuts leads the segment as the UK’s number one Nut brand, worth £100.2m and growing in value +2 per cent. At nearly four times the size of the nearest branded competitor, KP Nuts holds 18 per cent share of the Nuts segment.”
With iconic flavors like Original Salted, Dry Roasted, and Honey Roast, KP Nuts prove to be quintessential pairing for everything from festive movie nights to a cheeky mulled wine. Better yet, their 375g Nut Cuddies and large Sharing bags tick both the indulgence and health-conscious boxes, as they are naturally packed with protein and fiber.
Over the festive season, shoppers are willing to spend more on higher quality CSN products to bring extra flavour and excitement to Christmas occasions. KP Snacks’ premium hand-cooked crisp brand Tyrrells is perfect for tempting shoppers to trade up.
With 92 Great Taste Awards to the brand’s name, Tyrrells is well-known for its delicious flavours and high quality. Delivering classic consumer favourites, including Mature Cheddar & Chive, Sea Salt & Cider Vinegar and Lightly Sea Salted, Tyrrells 150g Sharing packs are a great choiceas it pairs perfectly with wines and gins to add a touch of elegance to festive celebrations.
Not to forget the nation’s favourite popcorn brand Butterkist.
Collins points out, “The importance of the popcorn category shouldn’t be underestimated within the sharing occasion. Ideal for cosy family nights in spent watching films or casual family get-togethers. Butterkist delivers family favourite popcorn flavours Sweet & Salty, as well as more indulgent Toffee, perfect for those festive sharing occasions with family and friends.”
While KP Snacks is proficient in fulfilling CSN needs, plaids comes in handy for shoppers seeking savoury biscuit options.
pladis UK & Ireland’s savory biscuit range, led by Jacob’s Savours Selection, has seen double-digit growth and sales of £178m in 2023, proving that a cheese board just isn’t complete without the perfect crunch.
Aslı Özen Turhan, Chief Marketing Officer at pladis UK & Ireland, says, “Looking at Savoury Biscuits, the picture last year was similarly positive. Savoury seasonal assortments, like Jacob’s Savours Selection (+148 per cent) helped pladis increase its seasonal market share to almost a quarter (24 per cent).
“With shoppers still facing high prices across a number of aspects of everyday life, we’re expecting these patterns to continue into Christmas 2024 as shoppers bring more of their festivities in-home and look to their favourite snacking brands to make these feel special.”
Noteworthy here is that shoppers are looking to elevate in-home occasions with special snacks that are both readymade for sharing and that offer the added indulgence they seek at Christmas time. McVitie’s Victoria Chocolate Creations delivers exactly that with its mix of deluxe, fully coated white, milk and dark chocolate biscuits, wrapped up in special gifting packaging.
It was a top choice for shoppers seeking premium options last year, recording sales of £1.2 million, say Turhan.
Turhan adds, “Our Jacob’s Christmas Caddies are a case in point, and we’re working to sustain last year’s double-digit growth (+13.9 per cent) by bringing a brand-new flavour to this year’s line-up. Already a big hit – having reeled in an additional +£3.7m in sales (+43.3 per cent) – Jacob’s Crinklys Cheese & Onion will drive further appeal for this festive-favourite format.”
For those looking for a even savorier kick, consider stocking pork snacks, the fastest-growing segment. This strong demand shows just how much consumers love the unique taste of pork scratching. With over 40 per cent of consumers buying or eating pork snacks, retailers that are not stocking them are really missing out on this highly profitable sector.
Growth of more contemporary pork snacks has been even stronger, with Mr. Porky Crispy Strips up 28 per cent YoY as consumers look for a lighter bite with all the taste of a scratching.
As the category leaders (64 per cent share), Tayto are continuing to drive awareness and interest in the category through our biggest ever campaign – sponsoring TV coverage of PDC darts tournaments on Sky Sports.
Whilst sharing PMPs are the core of a strong snacks offer, independent retailers shouldn’t ignore impulse snacks, as they are a key footfall driver with over 22 million “entry-point snacks” sold in the past year. Golden Wonder plays a key role in this segment through its combination of great taste and great value with its ever-popular Tangy Toms, Spicy Bikers and Oinks and their added value of a multi-buy on-pack offer to drive sales.
There is much talk about HFSS with further restrictions coming into force in October 2025. Consumers understand that snacks are a treat, and they expect them to taste great – even the healthier ones.
Tayto has taken millions of calories and extra salt out of its portfolio - but only where it doesn’t compromise on taste with lines such as with Golden Wonder Tangy Toms and Spicy Bikers.
Snack, Sell, Celebrate Newbies
As festivities kick in, snacks are expected to fly off the shelves so make sure the store is well stocked with not only the bestsellers but also with new launches and limited-edition packs.
With enjoyment remaining the number one driver of choice for consumers when purchasing crisps, taste-led NPD and limited-edition flavours can help retailers maximise sales during this period.
To help retailers tap into the biggest snacking moment of the year, Pepsico has launched two limited-edition festive flavours across its premium Sensations brand.
Sensations Honey Glazed Roast Ham flavour hit shelves back in October, alongside the return of Sensations King Prawn & Marie Sauce flavour for another festive season. The limited-edition flavours are set to provide retailers with premium, non-HFSS SKUs that encourage consumers to trade up during this period.
Sensations King Prawn & Marie Sauce flavour was a crowd-pleaser last year, generating over £1.2m in value sales. Additionally, seafood flavours experienced an increase of 19 per cent average weekly sales within Total Savoury Snacks during the two weeks leading up to Christmas in 2023, with meaty flavours having experienced 27.8 per cent higher average weekly sales.
Walkers, Britain’s most loved crisp brand, is also helping retailers tap into the biggest snacking moment of the year with the launch of two limited-edition festive flavours across its premium Sensations brand.
Sensations celebrates Platinum Jubilee with limited-edition flavourswww.asiantrader.biz
In addition, Walkers has released festive-themed packaging across sharing bags and large multipacks of selected Walkers and Sensations year-round favourites. The activity is set to be supported by a multi-brand marketing campaign across PepsiCo’s Walkers, Walkers Sensations and Doritos brands.
Wayne Newton, Senior Marketing Director at Walkers, comments, "With new shoppers entering the category and existing customers buying more in preparation for the holiday season, Christmas is a crucial opportunity for retailers to be driving theirsavoury snacking sales. During this time, shoppers look for extra special snacking options that will elevate their celebrations, such as limited-edition flavours.
“Our festive reskins will support retailers in offering consumers’ familiar, much-loved snacking favourites with a festive look and feel, while also introducing premium seasonal flavours through our new Sensations Honey Glazed Roast Ham flavour and the return of the much-loved Sensations King Prawn & Marie Sauce flavour. These limited-edition options are set to meet the demand for bold and exciting festive treats, ensuring there's something special for everyone this Christmas."
The Walkers and Sensations festive packaging and Sensations limited-edition flavours are available now across the grocery, convenience and wholesale channels. Sensations Honey Glazed Roast Ham and King Prawn & Marie Sauce flavours are available in 150g sharing formats, with an RRP of £2.50.
PepsiCo’s multi-brand Christmas campaign will span OOH, digital and social media. With Walkers being the number one crisp brand, alongside Doritos as the category’s number one tortilla chip product range, the campaign aims to help retailers provide a wide range of crowd-pleasing snack options for everyone this Christmas.
Furthermore, the launch of Marmite Snacks has been a major success. The launch created significant press coverage given the country’s love-hate relationship with Marmite. Strong sales have followed with Marmite Crisps.
Matt Smith, Marketing Director for Tayto UK explains, “The response to Marmite snacks has been fantastic. The new range ignited consumer excitement with ‘lovers’ taking to social media about the great Marmite taste.
“We’ve seen strong Marmite Crisps sales across all channels, including PMP in the Convenience sector. The launch of Marmite Tortillas has opened up the brand to younger consumers with sales ahead of our expectations. The good news is that we have further NPD in the pipeline for 2025!”
As the category leaders in Pork Snacks (64 per cent share), Tayto are continuing to drive awareness and interest in the category through its biggest ever campaign.
Savour the Season with tips and tricks
Retailers need to be on top of their game, knowing every shift and trends among shoppers. Its the golden quarter after all, a perfect time for not only boosting sales but also in creating and elevating the store’s brand value.
Jones from Fairfields Farm points out how around Christmas, there’s a noticeable increase in demand for premium snacks, as customers are more willing to spend on quality when gathering with family and friends.
“Retailers should tap into this trend, recognising snacking as an essential part of holiday celebrations.
“Independents have the beautiful gift of flexibility – they can jump on trends quicker and use their experience to break out of a planogram to create a shopping environment for snacks, biscuits and savouries that varies from the norm and which encourages discovery. They also have the benefit of being able to merchandise differently and make use of till-adjacent space and aisle ends for high rate-of-sale items in these categories.
Exploring what works best in convenience, Jones says Freshfields Farm’s 150g sharing packs are ideal for big gatherings with family and friends during the social festive period.
Jones adds, “Bundling products through occasion-led marketing is a great way to boost in-store sales. By grouping festive items and offering incentives, retailers can encourage customers to buy more than the one item they originally came in for. Creating one-stop displays for these occasions helps customers quickly find everything they need, reducing decision time and increasing sales.
“This year, we’ve seen a strong increase in the demand for sweet and spicy combinations, alongside a comeback of the ‘swavoury’ trend, where sweet meets savoury. We also recommend that retailers stay informed by reading industry magazines, to keep up to date with the latest snacking trends, and by attending free-entry trade events where they can sample new products and see what else is out there.”
Bowing to popular demand, Freshfields Farm is bringing back Maple Glazed Ham flavour. Available in 150g sharing size with an eye-catching gold foil finish, this vegan and gluten-free option adds a premium touch to Christmas snacking.
Price marked packs (PMPs) continue to be a must-stock for independent retailers within Snacks - accounting for 79 per cent of sales. In the fight to attract and retain value-focused shoppers, PMPs remain essential in giving those shoppers confidence they are still getting great value when shopping locally.
With the decline in impulse pack sales and the continued trend to stay in rather than have a big night out, Sharing PMPs have become the dominant segment but this has slowed as many brands have moved above £1. In contrast, Golden Wonder has remained at £1 and continues to outperform sharing PMPs, showing just how important “value” when household budgets remain under pressure.
Smith from Tayto UK explains Golden Wonder’s success, “We know how important the £1 price point is to both consumers and retailers. By sticking to this key price point we have continued to deliver great tasting, great value snacks with strong retailer margins.
"A highlight is our Transform-A-Snack £1 PMPs, which are outperforming the market with 22 per cent growth, helped by the on-pack promotion in partnership with the Transformers ONE movie.”
With 64 per cent of consumers willing to switch brands for a lower price, the opportunity to profit from Golden Wonder’s £1 PMP has never been greater.
Independents are perfectly placed to cater to a variety of shopper missions for their seasonal purchases. Convenience stores are likely to be in accessible locations, making them the ideal destination for top-up shops in the run up to Christmas, as it’s easy for shoppers to pop into their local c-store to stock up on the Christmas classics in between larger weekly shops.
Turhan points out that although the core ranges should be every independent retailer’s number one priority, convenience stores are also a hotspot for impulse purchases, so it’s important to leave shelf space for novelty products and festive NPD – like McVitie’s Gingerbread Digestives – to encourage shoppers to pick up an extra treat on a whim.
“Alongside the bestsellers, novelty products and premium assortments are hugely popular among shoppers searching for last-minute gifts – a need which convenience stores are well placed to cater to thanks to their opportune locations. Ready-to-gift, fun, festive products from household-name brands work well here.”
Retailers need to stock products like McVitie’s Jaffa Pole and McVitie’s Jaffa Tree, which ranked in the top three for seasonal NPD last year. Shoppers in a rush will instantly recognise the Jaffa Cakes name and feel they can rely on these products to make for a well-received, ready-to-gift treat, Turhan adds.
As a nation, we are especially busy during the festive period, so it’s essential to make the shopping experience as seamless as possible. We recommend that clear signage is key.
Independent retailers should create a dedicated festive snacking fixture in-store and spotlight shopper-favourite brands and Christmas classics on fixtures with POS materials, like barkers, and by dedicating off-shelf features to the bestselling brands within staple festive snacking categories, like Savoury Biscuits, Turhan adds.
Munching Merry Christmas
Christmas parties and gatherings are synonymous with a bounty of snacks. Whether it's a relaxed evening at home with the family or a larger festive bash, crisps, snacks, and nuts are not just options—they're expectations.
Shoppers often pick up these munchies on impulse, which is why it's crucial for local convenience stores to have prime shelf space decked out with all the best-selling flavours. As the bells of the festive season ring louder, convenience stores have a golden opportunity to shine as the go-to destination for Christmas snacking.
Creative displays, bold signage, and tempting bundles—like crisps paired with dips or nuts alongside festive beverages—are your keys to capturing the magic. Use window posters or social media to alert customers to your festive snack promotions, drawing them into the store. Highlight snacks from local brands to create a community feel and offer unique options shoppers can’t find elsewhere.
Don’t just stock snacks; celebrate them! Dedicate an aisle or end cap to the "Snack Wonderland," filled with festive flavours, novelty treats, and sharing packs. Highlight the indulgence of premium options while keeping value-driven price-marked packs front and center. Shoppers are looking for quality that doesn’t break the bank, and convenience stores are perfectly positioned to meet that sweet spot of luxury and affordability.
So, let’s make this season a munching merry Christmas! Let the crunching commence!
Pete Patel, a seasoned convenience retailer and entrepreneur, is the force behind 10 thriving stores under the Costcutter and Bargain Booze symbol groups. Crowned Asian Trader of the Year at the 2023 Asian Trader Awards, this accolade is the latest in a series of prestigious wins, including the Convenience Chain of the Year Award in 2021, the Shop Safety Best Practice Award in 2020, and the Bakery Retailer Award in 2019.
Pete’s recent growth trajectory has been nothing short of phenomenal. From managing six sites in 2023, he expanded to ten by the end of the year, acquiring four McColl’s stores, three in Essex and one in Kent, when Morrisons was forced to divest certain stores to allay competition concerns.
Not content with mere acquisition, Pete has swiftly transformed underperforming locations into bustling hubs of activity. His Warley store underwent a complete refurbishment within weeks, while the Purfleet one was extended to create a larger, more customer-friendly space, all without disrupting operations.
“We bought the store in Warley in Brentwood in July last year, and we did the refurbishment work in November. We completely refurbished it, stripped it all out, put the new in and we've turned it around in one week,” he says.
“The Purfleet store, again, was a complete refurbishment, but we also bought the unit next door, so we knocked it all the way through and did some building work. The store is on a council estate and while all the work was going on, we didn't shut at all, because it's the only shop in the estate.”
Costcutter Warley store was officially opened by Eastenders legends, Jake Wood and Ricky Norwood, in December 2023
He has plans to develop the other two stores next year.
Dual-branding has become a hallmark of Pete’s portfolio, since his Meopham store, in Gravesham, Kent, became the first Costcutter-Bargain Booze hybrid in the country. He has changed his stores in Brockley, in Lewisham, London, and Purfleet to dual-branding, and was finishing the work at the Heanor store in Derbyshire, his first, as we spoke in late November. One more store, in Southborough, Tunbridge Wells, is also set to adorn the dual-branded fascia in January.
He believes that the innovative concept is here to stay.
“The ones that we can, we are going to convert to dual-branding,” he says, highlighting its competitive edge. “You need to have enough space to do it or to offer the range of alcohol. If you have enough space, then it’s definitely worth doing, because it provides a point of difference from the competition.”
Tailored offerings
What sets Pete apart is his commitment to tailoring product ranges to local customer needs.
“We are strong believers in making sure you sell what your customers want,” he says. “All of my stores are different. Purfleet is all about confectionery, crisps and soft drinks. So, we have made sure we have got big ranges, big displays in there. Brockley is all about healthy food, organic and vegan. We have gone big in that area there,” he explains.
In fact, Brockley has become the destination for vegan foods in the area after a previous refit in 2018. The icing on the cake was when local Sainsbury’s store decided to reduce their vegan offering, directing shoppers to Pete instead!
Costcutter Meopham
He supplements core Costcutter and Bargain Booze offerings with products from local suppliers, ensuring a diverse and appealing inventory. Earlier this year, he installed the new iSqueeze juice machines in some of the stores.
“We only put it in stores where we feel it matches the criteria for the local customers. Obviously, they are very good in the summer, but even in winter, because when the people suffer from cold and stuff, they do like to buy fresh orange, as the vitamin C content is going to be higher,” he says.
In Purfleet, they added the pick and mix section in confectionery, and for every cup they sell, they donate two per cent to the local food bank.
Community and sustainability
Pete’s commitment to the community extends beyond the shop floor. His stores frequently donate proceeds from sales to local food banks, integrating philanthropy into daily operations. The EcoVend reverse vending machine in Brockley is a standout initiative, encouraging recycling by donating a penny per item recycled to charity.
“Now, the machine has cost me. It's about a £12,000 investment. We don't make any money from the machine. In fact, we lose money because we give it away, a penny, but we are encouraging people to recycle,” he says.
Pete is an exemplary best practice retailer when it comes to sustainability initiatives, removing most of the pre-packed fruit and vegetables, introducing free-from packaging ranges and refillable categories.
Refill station at Costcutter Southborough store
Launched at the Southborough store, they introduced a refill centre into the Brockley store last September and Pete says it has been received well there, as people in the area tend to be environmentally-conscious shoppers. However, he acknowledges that such initiatives require space and may not yet suit all demographics, but he remains optimistic about their future viability.
“It's very difficult (to replicate the concept), because you need to have the space in the stores. In Brockley, I'm lucky because it's a 3000 sq.ft. unit, but it takes up a minimum two to three meters of space,” he explains. “And I think at the moment, the public are not ready for it in all of the areas, so maybe in 2-3 years’ time, we'll see more of it come out.”
The pick and mix, meanwhile, is something they will look at taking to other stores, he adds, as “that's saving on packaging.”
Tackling crime
Retail crime has become a significant challenge for convenience retailers, and Pete’s stores are no exception. Over the past three to five months, he has observed a notable rise in shoplifting across all his stores. “Previously, it was only one or two stores that had a real bad issue with it. Now we’re finding all of the stores have got the same issue,” he notes.
To combat this, he has invested heavily in technology such as the intelligent video surveillance from Veesion, which uses AI technology to monitor CCTV and highlights anyone who is a risk to the business, and the Safe Watch system that allows staff to discreetly request assistance if they feel threatened.
He has also implemented a range of innovative measures. One such strategy involves the use of saver boxes for high-value items like steaks. These plastic containers require a magnetic release at the checkout, making it harder for shoplifters to steal multiple items at once.
“If someone wants to take the steak, they can still break the box anyway. But what we are trying to do is restrict the amount they can take in one go by putting them in slightly bigger boxes,” he explains. “What we were finding was they were coming in and taking six or seven packs because it’s easy to put them in their coat or bag, but the bigger boxes make it bulky for them to take.”
Costcutter Meopham
Additionally, Pete has begun limiting the number of high-value products displayed on shelves. “Instead of building the shelf up with the high value items, we have to restrict how many we put on and just make sure that the staff are keep replenishing it,” he says.
He estimates that around 60-70 per cent of shoplifting incidents are tied to organised crime, while the remainder involves opportunistic individuals, including schoolchildren. “You have schoolchildren doing it as well. They’re not part of organised crime, but they’re just trying it on,” he says.
He has also fostered collaboration with other local businesses, sharing information about known shoplifters and alerting neighbouring retailers about potential threats.
Despite the measures in place, he remains pragmatic. His primary directive to staff is to avoid confrontation at all costs. “We can replace the product, but you can’t replace someone’s well-being,” he emphasises.
The people factor
A staunch advocate of delegation, Pete’s success as a retailer is deeply rooted in his ability to nurture and motivate his team of 150 staff members, employing a comprehensive approach that fosters a sense of ownership, camaraderie, and continuous improvement.
One of the standout strategies Pete employs is his system of regular incentives. Across all his stores, he organises competitions tied to new product developments (NPDs) or promotional launches every three weeks.
“The store that sells the most gets rewarded, and we usually offer prizes for the top three stores,” he explains. The prizes, ranging from £100 vouchers to Premier League tickets, create a buzz of excitement and encourage healthy competition among the teams.
Staff at Costcutter Warley with Jake Wood and Ricky Norwood
Suppliers like Heineken contribute prizes, such as Premier League tickets, while Pete also funds some rewards out of pocket. “The best prize someone has won so far is two tickets to watch Tottenham,” he says.
This initiative, which has distributed prizes worth over £10,000 in six months, has not only boosted sales but also strengthened team spirit. “Each store compliments and congratulates the other, and they get behind it, saying, ‘come on, let’s try winning this time.’ It’s a very positive and healthy competition,” he adds.
Performance Development Reviews are another cornerstone of Pete’s approach to staff management. Conducted biannually, these one-on-one sessions provide a platform for feedback, planning and idea-sharing.
“We will have a one to one with all the managers, and then we encourage the managers to have one to ones with all of their staff, which is all documented. We'd like to know from the staff what they are planning and if they've got any ideas they want to introduce,” he explains.
Pete Patel
Despite the scale of his operations, Pete maintains an active presence in his stores. He visits three to four stores a week, often unannounced, to observe, support, and engage directly with his teams. These visits aren’t about micromanagement but rather an opportunity to stay connected with the day-to-day realities of the business.
“I’ll help them out if there’s anything they’re not happy about, talk to the managers, and share new ideas or concepts. It’s all about being present and involved,” he says.
The £100,000 bill
Pete’s ability to stay ahead in a competitive market is evident in his approach to trends and innovations. Food-to-go remains a cornerstone of his business, but he is determined to push its boundaries further. A key focus for the coming year is transforming under-utilised deli counters, which often close after lunchtime, into evening revenue generators.
He is exploring concepts like in-store pizza operations, which can repurpose existing ingredients, such as sandwich fillings, for evening meals. “There’s no point having a corner of the shop which shuts at three o’clock when we’re open until 10pm,” he says.
Pete sees the partnership with Bestway as a strategic advantage, offering greater flexibility and access to an extensive supply chain. “Initially it was a learning curve for everyone,” he says of the wholesaler’s acquisition of the symbol group. “But I think the merger was definitely good. It gives us multiple opportunities.”
Currently, Pete’s stores source products from Nisa and Bargain Booze, but the integration of Bestway’s supply chain allows him to explore competitive pricing on various items. “If the pricing on certain products is better with Bestway, then why not buy it from them. Because it's all about getting that margin up to recoup some of these increases in costs that are coming now.”
Pete reveals that the increase in employers’ National Insurance Contributions, announced in the recent budget, is going to add £100,000 to his business costs, compelling him to adopt a cautious expansion strategy.
“Now we have got to be careful how we expand and maybe we have got to reconsider it. If we have got stores that haven't got the turnover, we may have to look to move them on. We have no choice. Come April next year, we're going to have to increase our prices,” he says, listing the consequences of the chancellor’s effort to 'kick-start a flagging economy'.
Standing out
As large supermarkets increasingly move into the convenience store format, Pete has honed a distinctive approach to staying competitive. He focuses on differentiating his stores by offering products and services that go beyond the core range typically found in multiples.
“[Supermarkets] will always focus on the core range. We will have a good range in the core categories, but we also try to put in items they are never going to stock,” he explains. “If you take my Meopham shop, for example, with a Tesco just a few doors away. Now, if you wanted a Japanese meal, you couldn't go to that Tesco and buy all the ingredients for your Japanese meal, but you can come into my Costcutter shop and you can buy all of the ingredients for Japanese meal.”
Pete Patel
Another aspect of Pete’s success is his recognition of changing consumer habits. “People shop on the day now; they don’t plan meals like they used to,” he observes. His stores cater to this shift by stocking a diverse range of fresh and ready-to-use products that customers can pick up on their way home to create meals for the evening.
“If they decide they're going to have, like I said, a sushi tonight, they can come in our shop and they can get all the ingredients and the components for that,” he stresses the point.
Flexibility and agility are central to his competitive edge. Unlike larger retailers, his stores can respond quickly to unexpected situations or emerging trends. “For example, when one of our stores faced a water shortage due to a Water Board issue, we instantly moved water from another store to ensure supply, whereas the multiples, once they've sold out that day, they're not going to get another delivery to the next day” he notes.
Pete’s parents bought their first shop in Orpington, Kent, in 1980, when he was just five years old. Growing up surrounded by the hustle and bustle of a shop, he absorbed the values of hard work and customer service from an early age, joining the trade filling shelves by colour!
Today, he exemplifies the best of convenience retailing: a customer-first ethos, innovative strategies, and an unwavering commitment to community and sustainability.
Stick to the basics
Pete Patel’s top tips for aspiring retailers are deceptively straightforward but require dedication and consistency
Give the best service: Providing the best customer service you can is very important to me, and it's something that we try to tell all of our staff – always offer the best customer service.
Have the right range: Availability is important as well, especially around the core key products, We are trying to get to a stage where we are never out of stock of the top 100 lines. Every day, the managers have to check that 100 lines, and we should not be out of stock of it.
Make sure the stores are clean and tidy: Store standards are very important, because there's so much competition in the market now and there are so many good stores. The one thing I always say to a retailer is that if you're coming into your store, would you shop in that shop? And if you wouldn't shop in your shop, then why do you expect your customers to come into your store?
“There is no magic formula. This is it,” Pete says. “Convenience is not difficult. It’s hard work, but there’s no real science behind it.”
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Single-use disposable vapes are displayed for sale on October 27, 2024 in London, England
Perhaps the first item of business is the disposable vapes ban, scheduled to come into force on 1 June next year, and almost universally regarded by those within the industry as counter-productive, perhaps even encouraging ex-smokers to take up the weed again.
But such is the power over politicians of “being seen to act” that they can easily ignore negative, second-order consequences such as that, or encouraging an explosion in the illegal trade (with all the organised crime and lost tax revenue it implies).
Don’t be indisposed
But while many vapers will now be looking around to choose a pod system, a heat-not-burn device, or a nic pouch to replace the “fire-and-forget" devices, there is still a six-month period until the ban arrives. Until then, it is fair weather sales for disposables, so retailers should make the most of it.
“That’s why we recommend that retailers continue to stock a wide range of leading disposables in the short-term,” says Andrew Malm, UK Market Manager at Imperial Brands, whose blu bar 1000 is the latest disposable, fully compliant device, boasting a removable battery to aid in safe disposal, and with a translucent mouthpiece to reveal the remaining liquid. The blu bar 1000 offers up to 1,000 puffs (hence the name) and is available in popular flavours including Blueberry Ice, Strawberry Ice, Watermelon Ice, Banana Ice, Mint, Grape, Tropical Mix and Blueberry Cherry.
There are very many disposable brands available, the single-use format having taken over vast areas of the market. In 2022 Philip Morris Ltd (PML) launched its own disposable vape, VEEBA – a “premium, responsible, and sustainable” device, available in nine flavours, with liquid made from pharma-grade nicotine and food-grade flavourings that passed rigorous scientific and quality assessments to ensure they deliver a consistent taste every time.
VEEBA’s liquids guarantee a nicotine level of 20 mg/ml, with each production batch receiving a Certificate of Analysis (COA) and subject to regular – and randomised – checks to ensure devices have the correct liquid composition and nicotine content. PMI’s commitment to quality extended from the liquid used to the product build, with VEEBA’s compact and ergonomic aluminium design able to be used and then recycled.
Photo: iStock
This was typical of the great care producers lavished on their high-quality disposables. From the start, vape producers placed a laser-focus on ensuring the standards of their e-cigs, and acted with consummate responsibility in only supplying to adult smokers and ex-smokers.
VEEBA, for example, was not commercialised with flavour descriptors that could have appealed to youth, such as images or descriptions of candies or desserts, or brightly coloured or flashy devices on the packaging. Instead, subtle colours and functional flavour descriptors worked together with PML’s youth-access prevention programme, to focus on providing access only to existing adult nicotine users and smokers.
Unfortunately, that didn’t stop other consumers littering with the discarded disposable devices, or using the enormous number of illicit vapes suddenly appearing to take advantage of the exploding demand. Neither did it dissuade some unscrupulous sellers from placing the one-time vapes – popular and practical because of their lower cost, no doubt – into the hands of minors.
“It’s clear that the disposable segment within the e-vapour category is growing exponentially for adult tobacco and nicotine users in the UK," External Affairs Director at PML, Duncan Cunningham, said at the time. “PML is responding to the immediate need for a smoke-free offer to be commercialised responsibly, and that is sustainable, trust-worthy, and reliable. By doing so, we aim to increase adult smokers’ and nicotine users’ access to responsible, disposable e-vapour devices that actively contribute to reducing the harm from smoking – while limiting the appeal and use among unintended audiences, particularly youth.”
In the end, it wasn’t enough, and the ban will arrive on time.
On to the pod
For those who recall the pod-mod revolution of a few years back, it was somewhat ironic that single-use e-cigs (which were the original vapes way back when), experienced a resurgence after pods had started to become so dominant.
Why did this happen, and thus unfortunately attract the attention of anti-vape campaigners and government? Paradoxically, the disposable e-cig made its reappearance so widely because the vape sector itself was growing so strongly: as the user-base expanded, disposables disproportionately attracted new vapers.
“The vape market has been growing over the past few years and the category value of vaping in the UK is forecast to almost triple from £930 million to almost £3 billion in 2025," says Malm, exposing just how energetic the vape market is, and its extraordinary mass appeal in sweeping up ex-smokers.
Those ex-smokers were naturally looking for something that most closely resembled a tobacco cigarette – smoke and discard – and were getting into the vape scene to quit tobacco and improve their health. Disposables were the perfect introduction for them. (Let’s hope the ban will not send them back to their smokes again ...)
And to ensure that doesn’t happen, it will soon be time to turn again to the promise of the pod!
"To give consumers choice as they seek out compliant devices, even ahead of the expected ban, retailers should also stock pod systems,” says Malm. “Our new blu bar kit, for instance, is becoming a popular option. The rechargeable vaping device uses replaceable pods to deliver a market-leading 1,000 puffs [average] of intense flavour per pod.”
It is a sleek and lightweight device that offers the easy use and portability of a disposable device, while the rechargeable 550mAh battery and USB-C charging port enables repeated use. It has launched with four flavours including new, intense Cherry as well as intense Pineapple and features blu Flavour Tech mesh coil technology to deliver strong bursts of flavour, Malm explains. “E-liquid level visibility means users can easily see when their pods need replacing, and with pod safety a priority, a security lock ensures the device is fully protected when not in use.”
The blu bar kit is available with an RRP of £5.99, which includes the rechargeable device and one pod, in either Cherry or Pineapple. Also available, with an RRP of £5.99 are blu bar pod packs, which include two pods per pack in Cherry, Pineapple, Blueberry Sour Razz, or Watermelon Ice.
ELFBAR, who were huge in the disposable vapes field (the ELFBAR 600 disposable was the perfect all-day vape, and the range expanded with the super-slim Cigalike and the ELFBAR T600), have pivoted brilliantly and announced two NPD to beat the ban.
The ELFBAR 4-in-1 Prefilled Kit is an innovative “big-puff” pod device, featuring a 1500mAh rechargeable battery that delivers between 2400 and 3200 puffs. With its "4 pods in 1" design, it is simple to twist to switch between flavours. Each 2ml pod features a QUAQ mesh coil, providing enhanced flavour and consistent vapour.
It is available in 27 flavours and delivers 20mg/ml Nic Salt, includes four prefilled pods, and is equipped with a robust 1000mAh battery (a maximum power output of 30W), providing power for extended vaping sessions. Refilling is easy with a top-fill design. It comes with a dual mesh pod, offering versatility for both MTL (Mouth To Lung) and RDL (Restricted Direct Lung) vaping styles “whether you prefer a tight or an airy draw".
ELFBAR launches its first 4-in-1 pod kit
The market is now re-gearing itself ahead of June 2025. ICCPP Group, the parent company of Voopoo, has introduced ArgusBar Prime, a pod system with fast charging and a detachable battery, available in 20 flavours.
Vaping company Lost Mary has launched its 4-in-1 pod kit, the brand’s first. Again, delivering up to 3,200 puffs, the reusable and rechargeable pod kit holds four 2ml prefilled pods, offering the choice of four flavours.
Lost Mary believes that flavours remain integral in encouraging adult smokers to quit cigarettes and adopt vaping, as noted by the Royal College of Physicians. To that end, the Lost Mary 4-in-1 supports the demand and important role flavours play while strengthening the brand’s market leadership with reusable products, the first of which was introduced in late 2023 – long before the single-use ban was proposed, they say. It come in 16 flavours including favourites such as Pineapple Ice, Strawberry Ice, and Blueberry Sour Raspberry.
In July Vapes Bar announced the upcoming nationwide launch of its new Angel 2400 (puffs) device, which also combines four 2ml tanks into one rechargeable device offering the flexibility of four flavours and “significant” cost savings for consumers, while reducing waste.
PML also adapted by launching the pod system vape Veev One (echoing the VEEBA sound of its established disposable), featuring advanced heating technology and premium e-liquids made from high-quality nicotine and food-grade flavourings to ensure consistency of taste.
Since its launch less than a year ago in Europe, Veev One has emerged as the leading closed pod vape system in both Italy and Czechia.
“We’re excited to introduce Veev One to the UK market at such a transformative time for the e-cigarette industry,” John Rennie, commercial director at PML, said in August. “The closed systems market has grown 35 per cent since January, with millions of adult smokers and nicotine users seeking new alternatives.
“As the UK market evolves, Veev One stands out as a premium, responsible, and recyclable, e-cigarette, with proven success across Europe.”
Veev One launches in the UK with a recycling programme, rewarding consumers for returning pods and devices for recycling and responsible disposal free of charge. Participants receive a £5 reward toward their next purchase from the IQOS online store.
Veev One comes in 12 flavours spanning three taste categories—Aromatic, Cooling & Crisp, and Warm.
Nic pouch paradise
For several years now pouches, in which nicotine-impregnated material is held in the mouth to release its effects, have been making extraordinary progress in the market. Retailers love them because they are easily displayed, take up little room around the counter and offer great margins. Consumers adore them because they can be used in all the places that cigarettes and vapes cannot, meaning complete freedom to indulge because nobody can tell you are doing it.
All the big players have their brands and placements – PML has Zyn, BAT has VELO, JTII has Nordic Spirit, and now STG has its XQS.
Asian Trader talked to Prianka Jhingan, Head of Marketing at Scandinavian Tobacco Group UK, to find out how this newest entrant is finding the world of nic pouches.
“There’s no doubt UK nicotine pouch sales are really taking off now, with our latest data showing the category is worth just over £110m in annual retail sales and this figure doesn’t include sales taking place online,” she says, adding that it reflects year on year growth of 88 per cent in volume terms, offering clear evidence to its growing popularity and consumer demand.
“And of course, with the upcoming disposable vape ban coming in June next year, this is likely to mean many consumers will be looking for alternative next gen products, so nicotine pouches like our own XQS are likely to see a further surge in sales as they offer consumers a very credible and attractive alternative due to their exciting flavours, discreet nature and ease of use. It’s also worth reminding retailers that nicotine pouches offer attractive profit margins in general, but I’m pleased to confirm that XQS offers one of the highest margins of all pouch brands, which is yet another reason to ensure you are well-stocked.”
Jhingan says that it is still early days for the brand but notes that after just four months post-launch, XQS had already become the sixth biggest-selling pouch brand, and for two reasons. First is STG’s customary commitment to quality – and with pouches that means flavour that lasts.
“Secondly,” she says, “it would be the uniquely smaller-sized pouches which ensure a perfect and delicate fit under the lip.” This was probably a first in the category and suggests further innovations that could enable brands to differentiate themselves.
Jhingan says that STG recently visited a number of wholesalers including Bestway, Parfetts and Dhamecha in locations across the UK to promote its XQS pouches to all the visiting retailers, telling them why it’s such a hot option to stock right now, and giving them a chance to enter a competition to win £500 worth of vouchers.
“I think in general it’s sensible to stock a mixture of both established brands and new pouch brands as they bring excitement and interest to the category. It’s also worth noting that nicotine pouches tend to be consumed by a mix of customers. Almost certainly the largest group will be transitioning smokers who are moving away from tobacco and into the next gen nicotine category. But there are also other groups who are enjoying nicotine pouches too, whether they be young urban professionals, trend setters or more socially conscious young adults.”
Heating up
Believe it or not, Philip Morris has just celebrated the tenth anniversary of its IQOS heat-not-burn (HNB) device, now called IQOS Iluma. The progress of HNB in the market has not been as parabolic as pods or e-cigs, although the sales have consistently grown with the increasing availability of the products, which typically were first trialled at limited outlets and in certain areas only – it was a wholly new tech after all, and perhaps more expensive than others on sale to vapers, so careful groundwork had to be laid down before wider release.
Now though, HNB is mainstream, with sales to match, and has proven particularly popular with ex-smokers who truly adore tobacco, because (treated) tobacco is still used, although it is not actually ignited, eliminating the vast majority of harmful chemicals that would otherwise be released in normal cigarette smoke.
The launch of IQOS proved to be a breakthrough moment toward achieving the PMI’s commitment (PML in the UK) to a future without cigarettes.
“With the debut of IQOS, we launched PMI’s vision of a smoke-free company, creating an opportunity to solve the problem of smoking,” PMI chief executive Jacek Olczak said.
In Japan – the first market where IQOS was launched in 2014 – newly released public health data by the National Health and Nutritional Survey (NHNS), an annual survey conducted since 1948 by the Japanese Ministry of Health, Labour and Welfare, revealed a 46 per cent decrease in cigarette-smoking prevalence since 2014, dropping from 19.6 per cent of all adults to 10.6 per cent in 2022 – almost halving.
This decline correlates with the introduction of heated tobacco products and their subsequent widespread adoption by millions of adults who smoke in Japan. IQOS now generates over £8bn of PMI’s annual net revenues and the product is available in over 70 markets worldwide, with 30.8 million estimated users.
JTI's Ploom device, meanwhile, was re-designated as Ploom X Advanced last year when it added two key improved features, namely an optimised HeatFlow system, with higher vapour volume during initial puffs offering an enhanced user experience, and faster charging, taking less than 90 minutes to achieve full charge.
Alongside launching Ploom X Advanced, the EVO tobacco sticks range added a new Gold variant, alongside improved blends for the existing Bronze and Amber flavours.
Ploom X Advanced won a Product of The Year Awards 2024 in January, and with 86 per cent of shoppers more likely to buy a product that has won, retailers who stock Product of the Year winners can really increase their sales.
"In response to consumer feedback, we made some positive changes when we launched Ploom X Advanced, and the brand has gone from strength to strength with device sales doubling and EVO tobacco stick sales tripling year on year," said Mark McGuinness, Marketing Director at JTI UK.
"With the Heated Tobacco category continuing to grow at a rapid rate, this award shows not only the success of our product, but the clear consumer interest in the category and Ploom.”
With the category currently worth £105 million in traditional retail and growing 20.5 per cent YOY, Heated Tobacco now offers a huge opportunity for retailers.
Meeting the ban
Finally, as the expected ban is on the horizon, it is also worth retailers checking up – or refreshing their memories – on CitizenCard’s No ID No Sale Guidelines, Malm cautions. The guidelines also list out staff training advice – an element that is critical in making sure teams are correctly handling age-restricted products and are recording any denied sales via the Refusals Register.
“As well as this, the free retail packs offered contain POS merchandise such as Statutory Tobacco Notices and Age-Related posters along with ‘Scan Me’ and ‘No ID No Sale!’ badges and shelf wobblers,” he adds. “We also strongly advise retailers to check their supply sources rigorously and to continue to be wary of potential suppliers offering products which may be illicit.”
The banning of disposables means of course that the ex-users will be looking for other vaping, pouching or HNB products to replace their e-cigs. That gives retailers an opportunity to merchandise the approved products, and STG’s Prianka Jhingan suggests retailers should be inventive and bold.
“The display of next-gen products is really important, which is why to really maximise sales of XQS, we believe it is best suited in multiple locations due to it being a new product in the category that consumers may not be aware of," she advises. “We currently offer three different display solutions to accommodate different store space availability and to ensure maximum visibility to those entering the store.”
"We’d recommend having a strong visual display of next-gen products, positioned away from the main gantry where possible, with clear information on pricing to enable customers to browse at their leisure without the need to handle and inspect products,” says Imperial Brands’ Andrew Malm. “If you only have limited space, a small countertop unit can help achieve this, especially if it is organised and fully stocked. Positioning the unit in a well-lit part of the counter will also help increase the visibility of the products.”
He notes the importance of the growing trend of retailers proactively engaging with customers to understand their purchasing preferences.
“This valuable customer intelligence will help retailers to offer product ranges at a store level," he says. “Different consumers in different areas will want different things – having these conversations will allow retailers to know which specific products are best for them.
Malm concludes that retailers should also regularly review their range to ensure it meets customers' needs: “Smart retailers are also taking proactive measures to monitor stock levels to ensure that popular products are consistently available. This not only keeps customers satisfied and loyal but also reduces the risk of them seeking alternatives.
All in all, despite the ban, it’s clear that if you look after your vapes, they will look after you.
Convenience stores have always been more than just a place to pick up groceries – they are vital community hubs. This role was highlighted during the pandemic, as they became lifelines for essential supplies and services. Then, amidst the cost-of-living crisis and soaring inflation, convenience retailers have once again stepped up, helping shoppers stay closer to home and navigate financial pressures by catering to the growing demand for smaller, more frequent shops.
This increased reliance, however, comes with a heightened sense of responsibility. Retailers are not only tasked with meeting the immediate needs of their customers but also supporting the broader community in meaningful ways. Whether through charity initiatives, health education, or sustainability efforts, convenience stores are redefining what it means to be responsible business owners.
At the same time, the industry faces significant challenges. Youth access to vapes, the sale of illegal tobacco, and underage alcohol purchasing are under intense scrutiny. Meanwhile, retail crime and abuse of staff have reached crisis levels – raising questions of responsibility of retailers not only towards shoppers but to colleagues as well.
Dynamic Risk Assessment
Priyesh Vekaria, the winner in the Responsible Retailer Award category at the Asian Trader Awards 2024, brings a unique perspective to retail, informed by his decade-long career in the police force and a degree in law. This background has enabled him to implement innovative measures at his One Stop Carlton Convenience store in Salford to ensure the safety and welfare of his staff, customers, and the broader community.
At the heart of Vekaria’s strategy is his Dynamic Risk Assessment, a bespoke approach to selling age-restricted products. “Whilst we have legislation set in stone, this is designed to consider a person on an individual basis,” he explained in his entry to the awards. This method goes beyond verifying age; it evaluates a customer’s behaviour and circumstances, such as whether they are under the influence of alcohol or drugs.
“We don’t claim to be social workers, but if we can find out what is bothering a customer and give them the opportunity to talk and see a different perspective, even just to be noticed can be enough to stop a person buying further alcohol and allow them to find an alternative way to help them through a challenging situation,” he noted.
Priyesh Vekaria
This customer-focused philosophy draws on the adaptive approach used in crime prevention, aiming to diffuse potential issues through communication and understanding.
With the store operating between 7am and 2am from Thursday to Sunday, Vekaria has invested in security technologies. These include facial recognition cameras and two-way talk systems that enhance communication and ensure safety without compromising the personal touch that defines their customer service.
Additionally, a night-service hatch, similar to those seen in petrol stations, allows him to maintain service continuity in a secure manner during late hours, safeguarding both the staff and customers. Other features in the store include panic alarms and a full smokescreen.
Vekaria’s approach to responsible retailing extends beyond policies and technology. His team is trained not just to enforce the law but to foster genuine connections with customers. By engaging customers with a “good morning” or taking a personal interest in their lives, his store creates a welcoming environment that encourages loyalty.
“Being a responsible retailer is more than just selling to customers over a certain age,” he says. “We want everyone who comes into the store to have an authentic and positive customer service experience.”
Leverage tech, combat crime
With shoplifting and related issues creating immense challenges for independent retailers and convenience colleagues, store owners are increasingly relying on technologies to tackle the issue.
This year, the Association of Convenience Stores (ACS) crime report found that there have been 5.6 million incidents of shop theft recorded, with 600 incidents of theft taking place every hour, smashing the previous record of 1.1 million incidents recorded in 2023.
The report, published in March, also highlighted a huge increase in violent incidents committed against retailers and their colleagues. Over the previous year, there have been around 76,000 incidents of violence in shops compared to 41,000 in the 2023 Crime Report.
For Glasgow retailer Girish Jeeva, who himself had some very ugly experiences with shoplifters, combating crime involves not only protecting the store’s assets but also ensuring the safety and morale of his team.
A finalist in the Responsible Retailer Award category at the Asian Trader Awards 2024, he has invested in cutting-edge technology, including dozens of CCTV cameras and innovative tools from RetailAI.
Girish Jeeva
One standout solution is a trial module by RetailAI that detects suspicious movements via CCTV and alerts them with a police-siren like sound and anti-theft message.
“Its real-time alerts, ability to detect theft within 3-5 seconds, coupled with store announcements warning shoplifters to return products, are real game changers,” Jeeva explained in his entry to the awards. This system sends alerts to the till and staff phones, complete with images and a 20-second video, ensuring immediate action. Jeeva’s Barmulloch store is the first in Scotland to trial this pioneering technology.
Communication is another critical focus area. Jeeva has equipped his team with headsets, allowing discreet and effective communication during emergencies and day-to-day operations.
He also makes use of advanced tools in the sale of age-restricted goods, integrating age estimation solution MyCheckr to the till. This technology supports compliance with the Challenge 25 policy while also offering ID verification and media advertising capabilities.
Reducing food waste
Sustainability has become a cornerstone of responsible retailing, with forward-thinking convenience retailers embracing innovative practices and technology to drive growth while making a positive impact on society.
Stacey Williams, business development director at Gander, highlights the benefits of adopting sustainable strategies. “Sustainability as a key business driver leads to a better brand image and competitive advantage, reduced business costs, higher productivity than other waste prevention solutions, reduced waste whilst also meeting future compliance and regulations,” he says.
A prime example of sustainability in action is Gander’s platform, which connects consumers to reduced-to-clear food and drink items in real time, helping stores reduce food waste.
“We ensure our technology not only drives efficiency but enables more people to access perfectly good food, pay less for that food, and prevent it from going to waste,” explains Williams. “In doing so, businesses will minimise their losses and gain more customers, whilst doing their bit to save the planet.”
Ganderlytics, the platform’s analytics tool, demonstrates the tangible benefits of these efforts, with shoppers saving an average of 56 per cent on reduced items spotted on Gander.
The latest Food Waste Index Report (2024), compiled by the United Nations Environment Programme (UNEP), found that the world wastes over a billion tonnes of food – one fifth of all food available to consumers at the retail, food service and household level annually. This is in addition to 13 per cent lost in the supply chain, according to the FAO.
Williams stresses that reducing food wastage is a key sustainable practice that every retailer can implement in their store.
“We would recommend to retailers to consider their end-to-end operations in store and what changes can be made to reduce food waste through embracing new technology. Adopting the Gander platform, which uses real-time technology to highlight reduced to clear food items, enables retailers to reduce their food waste and it is proving to be a huge advantage,” he says.
Claire Goddard, marketing manager at Pricewatch Group, which operates independent forecourts and convenience stores across Sussex, attests to the transformative impact of Gander on their stores.
Claire Goddard
“As food prices have increased over the past few years, the Gander platform has really helped shoppers in our area manage their food bills,” she says. “We’ve seen how some have had to change the way they shop and now save money by spending it on reduced food. This has helped us promote ourselves as a value retailer amongst our customers.”
Gander’s real-time technology not only attracts customers by displaying available discounts but also ensures a seamless shopping experience by automatically removing sold items from the app.
“This is a huge benefit because it means our shoppers using the app are never disappointed when they reach our stores,” Goddard adds.
She reveals that their stores regularly sell over 86 per cent of the reduced food, helping improve their margins while also supporting the local community.
“Reducing food waste also has a huge impact on the environment and its positive effect cannot be ignored,” she says. “I would urge any retailer looking to change their shoppers buying patterns to look at Gander. It has really helped us reduce food waste and become a more sustainable business whilst allowing us to connect with our local customers from the comfort of their home.”
Partners amplify impact
Gander’s groundbreaking trial with Snappy Shopper further underscores its potential to revolutionise the convenience sector. By integrating Gander’s reduced-to-clear listings into the Snappy Shopper home delivery app, participating SPAR Scotland stores a 10 per cent rise in basket value when Gander items were added in the first quarter of this year.
Over one in ten orders (11 per cent) included a Gander product and item count with Gander was 21.3 vs 13.7 without Gander - an increase of 7.6 basket items, providing the stores with a new level of efficiency and effectiveness in their sustainability endeavours.
“The successful outcome of this trial highlights the potential for other retailers to drive innovation and deliver unparalleled value to convenience shoppers,” Williams says.
“By harnessing the strengths of Gander and Snappy Shopper, this integration sets a new standard for retailers looking to reduce wastage costs within their own stores, and for customers looking to find reduced to clear goods.”
Gander’s commitment to reducing food waste extends through partnerships such as its integration with local sharing app Olio. Olio’s new Deals section, powered by Gander, allows its four million UK users to find discounted groceries from participating stores like Morrisons Channel Islands, Filco Market, Pricewatch Group and Sewell on the Go, displaying branded products from Nisa, Morrisons Daily and Co-op.
Williams encourages retailers to embrace sustainable technology, noting that “by investing in retail technology, retailers can make a positive impact on their stores' sustainability.” He advises businesses to focus on practical, achievable changes that balance ambition with feasibility.
“In order to make a long term difference retailers need to identify what key areas they can make a difference – now and in the future. They need to balance ambition with do-ability,” he says.
‘Simpler Recycling’
The government in late November published a policy update on recycling, introducing significant changes for businesses to streamline recycling practices and improve sustainability. Effective by 31 March 2025, these reforms set new standards for waste collection across England, aiming to create a consistent system that benefits the environment and reduces confusion.
Businesses and non-domestic premises, including schools and hospitals, must arrange for the collection of the following recyclable waste streams:
Glass such as drinks bottles and rinsed empty food jars
Metal such as drinks cans and food tins, empty aerosols, aluminium foil, aluminium food trays and tubes
Plastic such as rinsed empty food containers and bottles
Paper such as old newspapers and envelopes
Cardboard such as delivery boxes and packaging
Food leftovers or waste generated by food preparation
Businesses with fewer than 10 full-time equivalent employees (micro-firms) are exempt from these requirements until 31 March 2027.
Environmental charity WRAP has published a guide for the retail and wholesale sector to help implement recycling in the workplace (https://tinyurl.com/wrapguide).
Photo: iStock
“There are enormous environmental and financial gains to be realised by encouraging the 2.2 million business in England to separate food and recyclables from refuse. The two-year delay for micro-sized businesses will give smaller businesses more time to implement recycling into smaller or shared premises,” Shrewsbury said.
“WRAP is working with Defra and industry to develop new support tools and guidance to help all businesses with the transition. We will continue to work with trade bodies and local authorities to make transition as seamless as possible through our tools, technical support, and resources,” she added.
Navigating DRS
Meanwhile, the development of Deposit Return Schemes (DRS) continues to spark significant debate, with distinct approaches emerging between Wales and the rest of the country.
The UK government’s DRS, now covering England, Scotland, and Northern Ireland, is scheduled to launch in October 2027. It excludes glass containers, focusing on plastic and metal drinks containers to minimise contamination and streamline operations.
Trade bodies have raised concerns about the complexity of operating under differing schemes.
“We are extremely concerned that the Welsh government is doubling down on insisting on a different approach to a DRS than the rest of the UK,” James Lowman, chief executive of the Association of Convenience Stores, said.
“A unified approach across the UK is best for consumers, retailers and producers, and has the best chance of achieving meaningful change in recycling rates. The Welsh government’s separate approach will be confusing for everyone involved and disruptive to the delivery of DRS across the rest of UK.”
Photo: iStock
The Federation of Independent Retailers (The Fed) national president Mo Razzaq highlighted issues with interoperability, noting that consumers may struggle with cross-border returns under separate schemes.
“A single UK-wide scheme would be far more successful, efficient, and effective, enabling shoppers to understand and embrace DRS as quickly as possible.” he added.
Wales had always maintained that glass would be part of its deposit return scheme. But, earlier in November, the UK government confirmed that it would not include glass in the scheme.
“This is a concerning development, as Fed members believe a Welsh DRS scheme can only work effectively if it has a UK scale and is aligned with the rest of the country,” Welsh retailer Vince Malone, a member of the Fed, commented.
Adapting to new regulations
Retailers across the UK are facing a wave of new regulations aimed at promoting public health, sustainability, and ethical practices. From the upcoming disposable cup charge in Scotland and HFSS (high fat, salt, and sugar) restrictions in Wales to the nationwide ban on disposable vapes and a licensing scheme for tobacco and vape retailers, these measures are reshaping the retail landscape. For convenience retailers, adapting to these changes is not just a matter of compliance but an opportunity to lead in responsible retailing.
Scotland wants a charge of at least 25p to apply to all single-use disposable beverage cups when a person buys a drink of any kind.
The government launched a consultation in October, and in its response the Fed has called for an effective communication campaign and a robust enforcement process.
“It is vital for the Scottish government to communicate clear instructions to retailers on how the scheme is to be administered, to communicate the “how and why” to customers and to allow retailers enough time to prepare for the changes,” Razzaq, who owns a store in the Scottish town of Blantyre, said.
“Communication was one of the key weaknesses of the Deposit Return Scheme. as it seems to have been considered at a late stage – even though the ask to consumers and retailers involved a major behavioural change. We would hope lessons have been learned from this.”
He said it is of the utmost importance that there is at least a six-month notice period, highlighting the challenges to retailers such as recording the numbers of single-use disposable beverage cups charged for; the charge paid for them; the amount retailers are entitled to deduct to calculate the net proceeds – such as the costs to administer the system and VAT – and the net proceeds raised by the charge.
“We would anticipate that 25p is a sufficient incentive for many customers to remember to bring their own cup. A higher price might encourage customers to go without a drink if they haven’t brought their own cup,” he added.
The Fed also believes the funds generated from the charge should be retained by businesses and redirected to local worthy causes, like the carrier bag charge.
“Retailers would welcome the ability to support good causes in their communities, a long-established tradition in local convenience stores. This could be a local hospice or sports team or local school very much deserving of support,” Razzaq said.
Photo: iStock
The Welsh consultation over the restriction on HFSS products ended in September, and measures are expected to take effect next year.
The restrictions introduce the following measures:
For retailers with more than 50 employees: Restrictions on the promotions of multibuys (for example 3 for 2) and additional volume (for example 50% extra free) of HFSS products
For retailers with more than 50 employees and relevant floor space over 2000 sq ft: Restrictions on the placement of HFSS products at the end of aisles, within 2m of checkouts and queueing areas, and near the entrance of a store (dependent on store size)
While the timeframe for the introduction of the HFSS promotion and placement regulations is not yet confirmed, the Welsh government has committed to publishing guidance 12 months before the introduction of the rules.
In response to the consultation, ACS has welcomed the consistency of the regulations with those already in place in England. The trade body has also highlighted the need for clear guidance from the government on the rules, published with enough lead-time for retailers and suppliers to adapt.
“We welcome the Welsh government’s intention to introduce HFSS rules that are consistent with those already in place in England, ensuring that there are minimal issues for retailers and suppliers that operate in both nations,” said ACS Chief Executive James Lowman.
“However, the experience from England shows that official guidance available from the government was insufficient in avoiding confusion when retailers were developing their revised store layouts, so it’s crucial that the Welsh government gives as much clarity as possible in guidance for businesses ahead of the introduction of the regulations.”
License to sell
Similar to the premises licence required for alcohol sale, retailers might soon need a licence to sell tobacco, vape and nicotine products in England, Wales and Northern Ireland, as part of the Tobacco and Vapes Bill that has passed its second reading in late November.
The Bill intends to create a “smoke-free generation” by phasing out the sale of tobacco products to anyone currently aged 15 or younger. The generational ban will come into force in 2027, meaning that there will be a single date that retailers have to reference for age restricted sales on tobacco – rather than checking if a customer is over the age of 18.
Besides the licensing scheme, the Bill will also introduce on the spot fines of £200 to retailers found to be selling tobacco, vape and nicotine products to underage people. Other measures in the Bill include a ban on vape advertising and sponsorship, in addition to powers to restrict the flavours, display and packaging of all types of vapes, as well as other nicotine products.
In communications ahead of the second reading, the government announced that it would be dedicating an additional £10m to enforcement activity against the illicit trade. However, ACS has previously noted that Trading Standards will need an additional £140 million in the next five years to deal with the huge illicit market that currently costs the Treasury around £2 billion a year in lost revenue.
Lowman has warned that, unless properly structured, a licensing scheme could “prevent legitimate traders from operating based on the presence of other outlets in the area, or the specifics of where that store is located.”
“This requires detailed consultation with local shops and other stakeholders, and none of this has taken place,” he noted. “We now need proper discussion of the detail as regulations are drafted, or we fear that this legislation will significantly impact investment, growth and service provision in our sector.”
Vape products are displayed for sale on October 27, 2024 in London, England
Photo by Alishia Abodunde/Getty Images
The Bill followed confirmation in October that the government is planning to go ahead with a ban on disposable vaping products, which will come into force on 1 June 2025 across the UK, after the Scottish and Welsh governments have delayed their ban by two months to align with England and Northern Ireland.
ACS has recently launched an extended version of its “Selling Vapes Responsibly” guide to support retailers with the transition away from disposable vapes ahead of the ban.
The new guidance (https://tinyurl.com/acsvape) outlines the features that vapes need to have to be legal for sale from 1 June, as well as what to do with any disposable vapes that are unsold when the ban comes into force. Vapes that are legal to sell from 1 June must be chargeable and refillable, as opposed to disposable vapes which are intended for a single use and are limited to 2ml of vape liquid. Anyone selling disposable vapes from 1 June could be subject to a £200 fixed monetary penalty, followed by further enforcement action if illicit activity continues.
Since the start of 2024, retailers who sell vapes have also been required to provide a takeback service for customers on a minimum of a “one for one” basis (a customer can return a vape when they purchase a new one).
Healthy sales
Celebrating its 20th anniversary this year, the Scottish Grocers’ Federation (SGF) Healthy Living Programme (HLP) showcases how responsible retailing can positively influence public health, create economic opportunities, and build stronger connections between stores and the communities they serve.
Fully funded by the Scottish Government since its inception in 2004, the programme works with over 2,300 convenience retailers across Scotland, to help advise on growing sales of healthier products in stores.
Central to HLP’s success has been its focus on community engagement, exemplified by the Welby Breakfast initiative, which has reached more than 37,000 primary school pupils. Teaming up with both retailers and local primary schools, the programme delivers a vital message about the importance of starting the day with a nutritious meal.
“This anniversary is a major milestone for HLP and the whole team and is well worth celebrating. Over twenty years SGF and HLP have created a programme that works for every store, and the branding is now a key fixture in many new or refitted shops,” programme director Kathryn Neil said.
“Community engagement has been the key to success, ensuring the programme remains relevant and maintains relationships with key fascia groups. Helping to deliver the “responsible retailing” message.”
Research commissioned by the programme shows that 40 per cent of consumers recognise the HLP branding in stores, underscoring its impact on shopper behaviour. The programme also drives economic benefits by creating new markets for healthy products, benefiting both retailers and local producers.
SGF chief executive Pete Cheema praised the programme’s achievements, noting, “Not only does HLP help direct consumers to purchase healthier options, improving the health of communities, it also creates an avenue for new markets in healthy products, supporting the local economy.”
While England and Wales have attempted to replicate the programme’s success, the HLP remains uniquely impactful in Scotland. Its adaptability and close collaboration with retailers and government are seen as key factors behind its longevity and effectiveness.
And, coming back to bananas, HLP’s recent Free Banana Wednesday campaign with Snappy Shopper was a huge success, with a 61 per cent increase in banana purchases and a 16.5 per cent rise in overall fruit sales.
With over 200 stores participating, the campaign offered customers a free banana every Wednesday in August by simply entering the code FREEBAN on the Snappy Shopper app.
Customers embraced the free fruit, leading to a 61 per cent increase in bananas added to Snappy Shopper baskets. The campaign also saw a remarkable 16.5 per cent year-on-year increase in overall fruit purchases on Wednesdays during the promotion. This translates to a 15 per cent rise in the value of fruit sales compared to the same period last year.
Such successes align with the findings of the “sad bananas” study, which revealed that small interventions in convenience retail can significantly influence consumer behaviour, steering customers toward healthier choices.
Sad bananas, empathetic shoppers
Don’t stay single!Did you know that communicating an emotional appeal reduces food waste?
New Research: Study by University of Bath’s School of Management, conducted in the German supermarket chain REWE, finds emotional appeal boosts sales of “single” unsold bananas.
Sad Bananas Work Best: Signs with a sad banana face and the message “We are sad singles and want to be bought as well” increased sales by 58 per cent.
Key Findings:
Sad signage outperformed happy signage (5.4% sales increase) and emotionless messages.
Hourly sales rose from 2.02 bananas (emotionless signs) to 3.19 bananas (sad signs).
Psychological Insight: “The need to belong is one of the most basic human motivations, and applying sadness to single, stray bananas evokes a compassionate response from shoppers,” says Dr Lisa Eckmann from the Bath Retail Lab at the University of Bath.
Retail Impact: “The findings have very practical applications for boosting sales and reducing food waste from our supermarkets,” Dr Eckmann adds.
Food Waste Problem:
Single bananas, often discarded by shoppers, are a major source of food waste.
Food waste in retail accounts for 131 million tonnes annually (UNEP 2024).
Single bananas have significant climate impact and are often explicitly listed as avoidable waste.
Price vs. Emotion: The impact of the sad bananas did not outweigh a drop in price – discounting the produce was more effective at driving people to choose single bananas.
Practical Tip: Retailers could start with emotional messaging and later introduce discounts to sustain sales and reduce waste.
Britain's economy shrank for the second consecutive month in October, official data showed Friday, dealing a blow to the Labour government that has made economic growth a priority.
Gross domestic product fell 0.1 per cent in October compared with September, when output declined by the same amount, the Office for National Statistics (ONS) said.
The decline was unexpected by analysts, who had estimated that the economy would grow slightly.
"The figures this month are disappointing," said chancellor Rachel Reeves, whose first budget in October featured big tax increases on businesses.
"We have put in place policies to deliver long-term economic growth," she added.
Analysts have attributed part of the decline to uncertainty after the Labour government warned of "tough" measures in its budget at the end of October.
ONS director of economic statistics Liz McKeown said that "oil and gas extraction, pubs and restaurants and retail all had weak months".
Despite this, "the economy still grew a little over the last three months as a whole", she said.
Alongside tax increases in the budget, prime minister Keir Starmer's government announced plans for higher borrowing that it said would be invested in infrastructure projects to help drive economic growth.
Against the backdrop of weak growth, the Bank of England is set to decide next week whether it will cut interest rates again.
In November, the central bank trimmed borrowing costs by 25 basis points to 4.75 percent.