Mike Humphreys, who runs Premier Kenninghall Stores and Post Office in Kenninghall, Norwich, is one veteran retailer who used an adverse situation as an opportunity to make the store better than it was before.
The winner of the Bakery Retailer of the Year accolade at the 2021 Asian Trader Awards, Mike has seen his store ending up in three feet deep in water after flash floods hit the market square in Kenninghall over the Christmas period in 2020, 23rd December to be precise.
“Devastating, absolutely devastating, when we had the flood,” he recollects. “At 8 o'clock that night I had a knock on the door. Ten minutes later, water started to the front room, and it started to come in the shop. And within half an hour, we got the three feet of water.”
He says the support from the staff and the village was very good, but he is not that enthusiastic when it comes to the insurance company. The cost of the floods was £350,000 and he submitted the insurance claim in 20 days, but it was six weeks later before he had confirmation the claim was accepted.
“Like any insurance company, the less they paid out, the happier we were, to be quite honest about it,” he comments with a chuckle.
But, he has to rebuild and his only priority to offer the best for his customers.
“I had to take some of it from my pocket. What I wanted to do was end up with the best shop I could for our customers, and that cost more than the insurance company was prepared to pay. We've now got a good shop, and that's the silver lining in the dark clouds of us closing three months,” he says.
They finally reopened on 31st May with a great looking shop with new equipment, exposed brick walls, an open, warehouse-style ceiling and neon-style lighting for each section of the store. When stripping back the walls Mike discovered that every wall and beam had around six inches of cladding and discovered an original beam from October 1801, a fireplace that is now part of the bakery offering and wonderful original brick walls, all now retained.
“The village was extremely pleased when we opened up and it took about three weeks for us to gain back our previous sales,” he says, adding that they are now trading well over 15 per cent over the pre-floods period.
However, when compared to the sales increase during the Covid-19 pandemic, he reveals that sales have not that been prolific now, as the situation gets better.
“We're still up on the year, but sales definitely leveled off. And I can see that continuing. I think it'll be a trend. Hopefully electricity prices and things like that won't continue to grow at the level they have, but still very positive to the future,” he says.
‘The only shop for four miles that does food and stuff’, they always a occupied a central place in the village, and yet, Mike feels that the pandemic helped change things for the better in their relations with the community, But more significantly, he thinks that the credit is also due to the retailers who rose to the occasion.
“I think some of that down to the retailer doing a good job while we've got that opportunity. So while we've had the opportunity to get those extra customers in, it's been really good that those customers appreciated it. And because we've done a good job for them, I think we've gained their loyalty,” he explains.
He adds that the customers were supportive of them during the trying times of the pandemic.
“When we went out of stock or stuff, our customers didn't mind, they understood the situation. If we had someone that was self isolating, we set up a system so we could deliver stock to them,” he says.
And, they delivered products to their customers even when the shop was closed for refit amid the third national lockdown, taking orders from them and delivering the products from his second store, which is around 15 miles away in Dickleburgh.
While many stores across the country have seen instances of abuse and even violence during the pandemic, often triggered by mask rules and other such measures, Mike had an opposite experience.
“We're quite lucky that we're in a small village. The old people got really upset if people weren't wearing masks. And they appreciate it when we only let five people in the shop at a time,” he explains.
“So we actually got a lot of probably good publicity about the fact that we're doing the social distancing, etc (when) we've reopened after the three months. So we got a lot of good rapport with our customers because of it, and they liked the deliveries.”
Fresh and local
Mike stocks lots of local products, and he says that also attracts customers to the store.
“I think the local is the thing that makes the difference between us and the supermarket. If we can stock local products that our customers want at a fair price, it's very difficult for big supermarkets to do the same thing,” he notes.
“I stock Binham Blue cheese (made by the Templeton family in Norwich), I stock local country pie. My local supermarket doesn't do that. If my customers want them, they come and see me. That is my point of difference between the large supermarkets and even the smaller mini Tescos and people like that.”
The store, in fact, is awash with local produce, including a fantastic cheese fixture with biscuits to match, local Strawberries and potatoes, local butchery, eggs, salmon, pies, and even Suffolk Chorizo!
“And we have Kenninghall cider,” Mike adds. “We have local jams from Emma, who's the local farmer's daughter. We have local cereals - it's a mixture of getting the right price and right product.”
The extent to which he goes to make a difference for his customers is evident in his gin range, which boasts 200 different gins, including six local ones!
“We do very well on wines and spirits,” he explains. “We stock some different wines from a company called Enotria (& Coe). They're slightly better quality and customers coming to buy them because they can't get them from elsewhere.”
Miniature bottles are another attraction, and they stock about 50 different drinks. “So if someone wants to try a gin, but they don't want to buy the whole, they'll buy a miniature, the 5cl ones, for £5, which is really worth the walk,” he says. “They can drive couple and then decide which one they liked without spending a large amount of money.”
The store also does their bit on the plastic front, selling vast majority of their fruit and veg loose. “We buy in from the local greengrocery merchant who goes down to London and buys it in these boxes. So we sell it loose to our customers. And they prefer it rather than lots of packaging,” he reveals.
His feedback ties in with a recent research conducted by environmental charity WRAP, which has raised questions on the accepted thinking that plastic packaging helps to preserve fresh uncut fruit and vegetables. WRAP now recommends retailers to sell loose where possible.
Coming to his award-winning category, the store tempts shoppers with a beguiling bakery offering. They have devoted 6.8m to bread and cakes, and bakes them two to three times a day to give great fresh products with that fantastic smell of in-store baking. A large range of locally produced fresh bread, rolls and cakes complement their offering.
“We have been in partnership for probably ten years with our local baker. So he's always baked lots of local bread and cakes for us, which has given us a good reputation,” Mike says. “And then after the flood when we reopened, we started baking our own rolls, fresh croissants and cake and we probably stock about 300 different types of springs and things.”
The bakery range is made up of 37 lines of local cakes, 23 of local bread, 12 lines of bread rolls and 10 cakes that are baked in store, together with a range of 50 different cakes from other suppliers. The in-store Bake Off includes white, brown, tiger, sourdough, old style, poppy and French sticks, demi baguettes and Parisian, fresh croissants, cakes, doughnuts and biscuits.
Mike thinks fresh and local would continue to be the key thing that convenience retailers should focus on.
“As long as we can give the customers fresh products at a reasonable price, not the cheapest, they'll continue to come back, whether that be fruit and veg, whether that be bakery, whether that be meat, or dairy products, and frozen foods (which) is a fantastic, growing category as well.”
Fewer PMPs please!
One of the things he would like is, interestingly, less price marked products! “Because with prices of electricity, wages, everything else going up, it means margins being squeezed. It'd be nice to have a little bit more freedom with margins,” he reasons, adding that rising prices is becoming a major challenge for retailers, and being able to maintain margins at present means staying in business.
He agrees that some people will always shop the lower end due to the amount of money they've got to spend, and it's good to offer products at that end. But, he suggests retailers need to focus on providing customers “what they want, which is good value.”
“I think it is about quality and price, if the quality of the lower priced product is good, it sells well,” he says.
He adds that customer preferences – “what they've been asking, or what can I give them that I haven't given them before” – should always be the top priority for retailers, especially when they plan to invest in stores. And, saving money on energy should be the next.
“Because I think from a retailer's point of view, one of the biggest costs these days is energy. My energy bill has gone up over twofold in the last six months, from £13000 to nearly £30,000,” he says.
Mike has been in retail for nearly four decades, starting at Tesco at the age 17. In 2011, he had the opportunity to buy a shop that was quite rundown at the time, and never looked back.
“I really enjoyed working for ourselves, myself and my wife, Karen. And it's been good fun. It's something that I would never regret,” he says.
They have got two shops, and the husband and wife team oversee both shops, with a manager looks after each one.
“Marian Sommers runs my Kenninghall shop. [She] is a very good manager and works very hard. It’s because of our hard work that we get the sales we do, we have the customers we do and we have the staff we do,” he is all praise for Marian.
His immediate priority now is to consolidate the gains after the refit. “To make sure that we've right customers who were brought in by good service, good products and good prices wherever possible,” he says.
Or in short, “just continue doing what we are doing better.”
The UK retail sector is bracing for a challenging but opportunity-filled 2025, according to Jacqui Baker, head of retail at RSM UK. While the industry grapples with rising costs and heightened crime, advancements in artificial intelligence and a revival of the high street offer potential pathways to growth, she said.
The latest Budget delivered a tough blow to the retail sector, exacerbating existing financial pressures. Retailers, who already shoulder a significant portion of business rates and rely heavily on a large workforce, face increased costs from rising employers’ National Insurance Contributions.
“Higher costs will also eat into available funds for future pay rises, benefits or pension contributions – hitting retailers’ cashflow in the short term and employees’ remuneration in the longer term,” Baker said.
“Retailers must get creative to manage their margins and attract footfall and spend, plus think outside the box to incentivise employees if they’re to hold onto talented staff.”
On the brighter side, falling inflation and lower interest rates could ease operational costs and restore consumer confidence, potentially driving retail spending upward.
High street resurgence
Consumers’ shopping habits are evolving, with a hybrid approach blending online and in-store purchases. According to RSM UK’s Consumer Outlook, 46 per cent of consumers prefer in-store shopping for weekly purchases, compared to 29 per cent for online, but the preference shifts to 47 per cent for online shopping for monthly buys and to 29 per cent for in-store. The most important in-store aspect for consumers was ease of finding products (59%), versus convenience (37%) for online.
“Tactile shopping experiences remain an integral part of the purchase journey for shoppers, so retailers need to prioritise convenience and the opportunity for discovery to bring consumers back to the high street,” Baker noted.
The government’s initiative to auction empty shops is expected to make brick-and-mortar stores more accessible to smaller, independent retailers, further boosting high street revival, she added.
A security guard stands in the doorway of a store in the Oxford Street retail area on December 13, 2024 in London, EnglandPhoto by Leon Neal/Getty Images
Meanwhile, retail crime, exacerbated by cost-of-living pressures, remains a significant concern, with shoplifting incidents reaching record highs. From organised social media-driven thefts to fraudulent delivery claims, the methods are becoming increasingly sophisticated.
“Crime has a knock-on effect on both margins and staff morale, so while the government is cracking down on retail crime, retailers also have a part to play by investing in data to prevent and detect theft,” Baker said.
“Data is extremely powerful in minimising losses and improving the overall operational efficiency of the business.”
AI as a game-changer
Artificial intelligence is emerging as a transformative force for the retail sector. From personalised product recommendations and inventory optimisation to immersive augmented reality experiences, AI is reshaping the shopping landscape.
“AI will undoubtedly become even more sophisticated over time, creating immersive and interactive experiences that bridge the gap between online and in-store. Emerging trends include hyper-personalisation throughout the entire shopping journey, autonomous stores and checkouts, and enhanced augmented reality experiences to “try” products before buying,” she said, adding that AI will be a “transformative investment” that determines the long-term viability of retail businesses.
The Amazon Fresh store in Ealing, LondonPhoto: Amazon
As financial pressures ease, sustainability is climbing up the consumer agenda. RSM’s Consumer Outlook found 46 per cent would pay more for products that are sustainably sourced, up from 28 per cent last year; while 44 per cent would pay more for products with environmentally friendly packaging, compared to 36 per cent last year.
“However, ESG concerns vary depending on age and income, holding greater importance among high earners and millennials. With financial pressures expected to continue easing next year, we anticipate a renewal of sustainability and environmentally conscious spending habits,” Baker noted.
“Retailers ought to tap into this by understanding the preferences of different demographics and most importantly, their target market.”
Southend-on-Sea City Council officials have secured food condemnation orders from Chelmsford Magistrates Court, resulting in the seizure and destruction of 1,100 unauthorised soft drinks.
The condemned drinks, including Mountain Dew, 7-UP, Mirinda, and G Fuel energy drinks, were found during routine inspections of food businesses across Southend by the council’s environmental health officers.
Council said these products contained either banned additives like Calcium Disodium EDTA or unauthorised novel ingredients such as Potassium Beta-hydroxybutyrate.
Calcium Disodium EDTA has been linked to potential reproductive and developmental effects and may contribute to colon cancer, according to some studies. Potassium Beta-hydroxybutyrate has not undergone safety assessments, making its inclusion in food products unlawful.
Independent analysis certified that the drinks failed to meet UK food safety standards. Magistrates ordered their destruction and ruled that the council's costs, expected to total close to £2,000, be recovered from the businesses involved.
“These products, clearly marketed towards children, contain banned or unauthorised ingredients. Southend-on-Sea City Council will always take action to protect the public, using enforcement powers to ensure unsafe products are removed from sale,” Cllr Kevin Robinson, cabinet member for regeneration, major projects, and regulatory services, said.
“As Christmas approaches, we hope this sends a strong message to businesses importing or selling such products: they risk significant costs and possible prosecution.”
The council urged residents to check labels when purchasing imported sweets and drinks, ensuring they include English-language details and a UK importer's address.
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A customer browses clothes inside Charity Super.Mkt at Brent Cross Shopping centre in north London on, December 17, 2024
Bursting with customers one afternoon the week before Christmas, a second-hand charity shop in London's Marylebone High Street looked even busier than the upscale retailers surrounding it.
One man grabbed two puzzle sets and a giant plush toy as a present for friends, another picked out a notebook for his wife.
“Since the end of September, we've seen a huge uplift in people coming to our shops and shopping pre-loved,” said Ollie Mead, who oversees the shop displays - currently glittering with Christmas decorations - for Oxfam charity stores around London.
At the chain of second-hand stores run by the British charity, shoppers can find used, or "pre-loved", toys, books, bric-a-brac and clothes for a fraction of the price of new items.
Popular for personal shopping, charity stores and online second-hand retailers are seeing an unlikely surge in interest for Christmas gifts, a time of year often criticised for promoting consumerism and generating waste.
A report last month by second-hand retail platform Vinted and consultants RetailEconomics found UK customers were set to spend £2 billion on second-hand Christmas gifts this year, around 10 per cent of the £20 billion Christmas gift market.
A woman browses some of the Christmas gift ideas in a store on December 13, 2024 in London, England. Photo by Leon Neal/Getty Images
In an Oxfam survey last year, 33 per cent were going to buy second-hand gifts for Christmas, up from 25 percent in 2021.
“This shift is evident on Vinted,” Adam Jay, Vinted's marketplace CEO, told AFP.
“We've observed an increase in UK members searching for 'gift' between October and December compared to the same period last year.”
According to Mead, who has gifted second-hand items for the last three Christmas seasons, sustainability concerns and cost-of-living pressures are “huge factors”.
Skimming the racks at the central London store, doctor Ed Burdett found a keychain and notebook for his wife.
“We're saving up at the moment, and she likes to give things another life. So it'll be the perfect thing for her,” Burdett, 50, told AFP.
“It's nice to spend less, and to know that it goes to a good place rather than to a high street shop.”
'Quirky, weird
Wayne Hemingway, designer and co-founder of Charity Super.Mkt, a brand which aims to put charity shops in empty shopping centres and high street spaces, has himself given second-hand Christmas gifts for “many, many years”.
“When I first started doing it, it was classed as quirky and weird,” he said, adding it was now going more “mainstream”.
Similarly, when he first started selling second-hand clothes over 40 years ago, “at Christmas your sales always nosedive(d) because everybody wanted new”.
Now, however, “we are seeing an increase at Christmas sales just like a new shop would”, Hemingway told AFP.
“Last weekend sales were crazy, the shop was mobbed,” he said, adding all his stores had seen a 20-percent higher than expected rise in sales in the weeks before Christmas.
“Things are changing for the better... It's gone from second-hand not being what you do at Christmas, to part of what you do.”
Young people are driving the trend by making more conscious fashion choices, and with a commitment to a “circular economy” and to “the idea of giving back (in) a society that is being more generous and fair,” he said.
At the store till, 56-year-old Jennifer Odibo was unconvinced.
Buying herself a striking orange jacket, she said she “loves vintage”.
But for most people, she confessed she would not get a used gift. “Christmas is special, it needs to be something they would cherish, something new,” said Odibo.
“For Christmas, I'll go and buy something nice, either at Selfridges or Fenwick,” she added, listing two iconic British department stores.
Hemingway conceded some shoppers “feel that people expect something new” at Christmas.
“We're on a journey. The world is on a journey, but it's got a long way to go,” he added.
According to Tetyana Solovey, a sociology researcher at the University of Manchester, “for some people, it could be a bit weird to celebrate it (Christmas) with reusing.”
“But it could be a shift in consciousness if we might be able to celebrate the new year by giving a second life to something,” Solovey told AFP.
“That could be a very sustainable approach to Christmas, which I think is quite wonderful.”
Lancashire Mind’s 11th Mental Elf fun run was its biggest and best yet – a sell-out event with more than 400 people running and walking in aid of the mental charity, plus dozens more volunteering to make the day a huge success.
The winter sun shone on Worden Park in Leyland as families gathered for either a 5K course, a 2K run, or a Challenge Yours’Elf distance which saw many people running 10K with the usual running gear replaced with jazzy elf leggings, tinsel and Christmas hats.
And now the pennies have been counted, Lancashire Mind has announced that the event raised a fantastic £17,000.
This amount of money allows Lancashire Mind to deliver, for example, its 10-week Bounce Forward resilience programme in eight schools, reaching more than 240 children with skills and strategies that they can carry with them throughout their lives, making them more likely to ‘bounce forward’ through tough times.
The event was headline sponsored by SPAR for a third year through its association with James Hall & Co. Ltd, SPAR UK’s primary retailer, wholesaler, and distributor for the North of England.
“On behalf of the entire team at Lancashire Mind, we want to extend a heartfelt thank you to the 400+ incredible participants who joined us for Mental Elf 2024!” said Organiser Nicola Tomkins, Community and Events Fundraiser at Lancashire Mind.
“Your support, energy and commitment to raising awareness for mental health makes all the difference. Together, we've taken another important step towards breaking the stigma around mental health and promoting wellbeing for all in our community. We couldn't have done it without you!”
Worden Hall became the hub of the event where people could enjoy music from the Worldwise Samba Drummers and BBC stars Jasmine and Gabriella T, plus lots of family friendly activities and a chance to meet Father Christmas. Pets also got in on the act in the best dressed dog competition.
Lancashire Mind CEO David Dunwell said: “It was heart-warming day, full of community spirit and festive cheer, but with a serious aim to raise funds for mental health.
“We are so grateful to everyone who bought a ticket and fundraised or donated to help us smash our target. The money raised goes directly to supporting Lancashire Mind’s life-changing mental health services. These funds help provide wellbeing coaching, support groups, and educational programmes to individuals and families in need of mental health support in our community.”
The concept of Mental Elf was created by Lancashire Mind and news of the event has spread right across the country in recent years, with around 40 other local Mind charities hosting a similar event in 2024.
Lancashire schools were also encouraged to host their own Mental Elf-themed event this year, whether that was a run, bake sale or dress up day, and raised more than £1,000 in total.
Philippa Harrington, Marketing Manager at James Hall & Co. Ltd, said: “There was a lovely festive feel in the air at Mental Elf and we were delighted to see even more individuals, families, and canine companions taking part in its new home of Worden Park.
“We are also very pleased to see the uptake that Mental Elf has had in schools, and congratulations go to the Lancashire Mind team for taking it to new participants and for raising a fantastic amount of money for an important cause.”
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A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.
UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.
Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.
The updates follow news this week of higher inflation in Britain - an outcome that caused the Bank of England on Thursday to leave interest rates unchanged.
Retail sales by volume grew 0.2 per cent in November after a drop of 0.7 per cent in October, the Office for National Statistics said Friday.
That was less than analysts' consensus for a 0.5-percent gain.
"It is critical delayed spending materialises this Christmas to mitigate the poor start to retail's all-important festive season," noted Nicholas Found, senior consultant at Retail Economics.
"However, cautiousness lingers, slowing momentum in the economy. Households continue to adjust to higher prices (and) elevated interest rates."
He added that consumers were focused on buying "carefully timed promotions and essentials, while deferring bigger purchases".
The ONS reported that supermarkets benefited from higher food sales.
"Clothing stores sales dipped sharply once again, as retailers reported tough trading conditions," said Hannah Finselbach, senior statistician at the ONS.
Retail sales rose 0.2% in November 2024, following a fall of 0.7% in October 2024.
Growth in supermarkets and other non-food stores was partly offset by a fall in clothing retailers.
The Labour government's net borrowing meanwhile dropped to £11.2 billion last month, the lowest November figure in three years on higher tax receipts and lower debt-interest, the ONS added.
The figure had been £18.2 billion in October.
"Borrowing remains subject to upside risks... due to sticky interest rates, driven by markets repricing for fewer cuts in 2025," forecast Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics.
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, commented that the later than usual Black Friday weekend meant November’s retail sales figures saw only a slight uptick as cost-conscious consumers held off to bag a bargain.
“Despite many retailers launching Black Friday offers early, November trade got off to a slow start which dragged on for most of the month. This was driven by clothing which fell to its lowest level since January 2022. The only saving grace was half-term and Halloween spending helped to slightly offset disappointing sales throughout November,” Baker said.
“As consumer confidence continues to build and shoppers return to the high street, this should translate into more retail spending next year. However, there are big challenges coming down the track for the sector, so retailers will be banking on a consumer-led recovery to come to fruition so they can combat a surge in costs.”
Thomas Pugh, economist at RSM UK, added: “The tick up in retail sales volumes in November suggests that the stagnation which has gripped the UK economy since the summer continued into the final months of the year.
“While the recent strong pay growth numbers may make the Bank of England uncomfortable, it means that real incomes are growing at just under 3 per cent, which suggests consumer spending should gradually rise next year. However, consumers remain extremely cautious. The very sharp drop in clothing sales in particular could suggest that consumers are cutting back on non-essential purchases.
“We still expect a rise in consumer spending next year, due to strong wage growth and a gradual decline in the saving rate, to help drive an acceleration in GDP growth. But the risks are clearly building that cautious consumers choose to save rather than spend increases in income, raising the risk of weaker growth continuing through the first half of next year.”