Down in picturesque Poole, Ehamparam Karunanithy has redefined what the convenience off-licencing experience can be, with up-to-the-minute innovations and stunning WBS ranges
Ehamparam Karunanithy has developed a stunning off license category at his Premier Talbot Store in Poole, situated between a housing estate and 17,000 university students “across the road”.
The result is a store that caters effortlessly for its clientele. A magnificent beer cave with smart electronic doors opening onto “cool” blue sky lighting panels offers an extensive range of Ready To Serve canned drinks and bottled ales, lagers and beers.
The beer cave has become something of a social media sensation among local shoppers, regularly appearing on TikTok and Instagram, and has contributed immensely to the store winning the Off Licence of the Year Award at the 2023 Asian Trader Awards.
Ehamparam, who also runs two other stores in the area, says that that his augmented alcohol offer is adding ever more multipacks and SKUs of bottled ales. Shoppers just love the Beer Cave, and it’s been a big hit with customers highlighting the store’s value message, as “promotional packs have such strong standout in there.”
“I can't imagine that the sales would be going like this right now, its two years now almost,” he adds. “We're getting that kind of uplift in sales since the reopening.”
An ethnic Tamil, Ehamparam arrived in the UK from Sri Lanka three decades back. His journey into the retail industry began in the 1990s when he worked at a petrol station. Inspired by his cousin who owned a shop, Ehamparam hoped to start his own business.
“Originally I planned anywhere in the country, anywhere I can afford to buy a shop at that time. And then I just found one shop in Poole, Bournemouth area, and moved here,” he says.
The location's potential began to flourish as the university expanded, providing a steady customer base of students
It is situated within the residential heartland of Bournemouth’s Talbot Village and adjacent to Bournemouth University’s Talbot Campus, lending it a unique shopper demographic. As the university expanded, he recognised the store’s potential, and a nudge from his symbol group Booker, who wanted to convert the store as a concept store, prompted him to go for a major refurbishment of the site.
“I got the new lease as well at end of the pandemic, around 2020. Then I realised this is the opportunity to do something different, to change everything” he says.
In September 2022, as the store celebrated its 21st anniversary, they re-opened the store after a £170,000 refit, transforming it into one of the most innovative Premier stores in the estate and a test-bed for new technology, including sustainability developments.
Ehamparam converted the storeroom into a beer cave, expanding the alcohol section to cater to the university's student population. The store now offers a wide variety of canned drinks and bulk packs. Replacing the open fridge with a closed-door system, he installed a single large motor fridge extending over 10 metres. This upgrade not only increased storage capacity but also reduced energy costs.
“With electricity price going up and things like that, this single motor is a good idea. The door is closed all the time, only one fridge for everything,” he points out.
The store underwent a complete makeover with improved lighting, higher shelves, and a visually appealing storefront.
Promoting sustainability
Two significant innovations during the refit include a fresh bakery section and refill zone which enables shoppers to conveniently dispense desired quantities of a range of dried goods into paper bags – saving on food and packaging.
“A local supplier brings every morning fresh bakery products like doughnuts, pasties and a few [other] things. That one is a cool cabinet, not the hot cabinet, and because we are next to the university, we sell them very quickly,” Ehamparam says.
In the refill section, customers can just take whatever they need and can bring their own bag or use the paper bags provided by the store.
“You can buy what you need. They can buy for the day or for a longer time. You don't need to just buy them and keep it and later throw them away. They can buy them, maybe just for a morning breakfast. It is really going well with the customers,” he says.
As they have a very large youth demographic, the store trialled a number of new technology concepts during its refurbishment. The store’s self-scan checkout has been the first of its kind in a Premier, but it was later removed due to challenges with theft.
“It was doing great. It attracted the customers. The advantage is you don't need another staff. But some customers don't scan it. They're just trying to scan it, didn't scan and they put in the bag, and just get away with it,” he explains – adding that he would not advise others to introduce the technology.
“I'm just not doing that. I checked a few times, and there are a lot of things going out without being scanned. In the supermarkets, there's a person watching about this, but here it is a very difficult situation,” he says.
Theft, as with the convenience stores across the country, has been a challenge for Ehamparam. He has to put more cameras as people were stealing even from the beer cave.
In another first for Premier, they also introduced electronic shelf-edge labels, a development which works great for the team.
“We did only a quarter of the shop because it's quite a lot of money to invest. So maybe in the future it could get cheaper. But It's very it's a good thing because I don't need to do anything. When Booker prices change overnight, next day morning the pricing changes automatically,” he says, noting that the time (and money) they save by not having to manually update pricing information is “huge”.
Ehamparam emphasises the importance of choosing the right shopfitter and considering the store's location when planning a refit. He believes that after ten years, a store needs refreshing to maintain customer interest.
“They don't want to be in the same shop all the time. After 10 years, maybe I need another refit for the Talbot store,” he says.
His experience shows that investing in a comprehensive refit, including expanding product varieties and improving store layout, can significantly boost sales, as evidenced by a 35-40 per cent increase at the Talbot store.
“If they do more varieties and arrange the shop for more space, sales definitely will go up. I don't know how much percentage, but it will go up,” he assures.
Following the success of the Talbot Store, Ehamparam recently undertook a refit of another store in Poole, Maple Stores, which now features both a beer cave and a soft drinks cave. With three stores already under his management, he is considering further expansion based on these positive sales trends.
Community relationships
Ehamparam places a high value on fostering strong relationships with the local community. He believes that personal interactions are essential, contrasting his store's approach with the impersonal nature of large supermarkets.
“Customers feel we have a very good staff, as they talk to them every day. It’s not like other big supermarkets where they're like just machines – just serve the customer, go away and next customer. Here, it’s like a community,” he smiles.
Ehamparam trains his staff to engage with customers, asking about their needs and preferences, ensuring a welcoming and friendly atmosphere.
“It’s a kind of shop where the customer has to come back,” he notes. “If they want to come back, we have to talk to them; we have to ask them what they need, what they want to get, new products or anything like that. So we just keep train the staff as well.”
To address the cost-of-living crisis, Ehamparam keeps prices competitive by adhering to Booker-recommended prices, many of them price-marked packs, and offering regular promotions.
“Besides, I am always monitoring the prices,” he reveals. “If anybody said it’s kind of high, then I look into the prices. I always tell the staff to just look around and if people said anything please come back to me and tell them, ‘Okay, I talked to the boss’!”
His wife, Tharsini, plays a crucial role in the business, managing orders and ensuring that the store is well-stocked. Her involvement allows Ehamparam to focus on other aspects of the business, highlighting the importance of family support in their entrepreneurial journey.
He advises new retailers to maintain clear pricing on shelves and offer regular promotions. He underscores the importance of location and long-term investment, noting that the returns on investment can be realised within a few years.
“Mainly they have to keep the price on the shelf. It’s important as the customer needs to know the price. And also give offers to the customers. If it's a good location, if they keep the shop for long time, I like that. If they invest in the shop and spend more money, they can recoup this money in maybe three years’ time. But they must worry about it. And also it's hard work,” he concludes.
A leading retail body has voiced serious concerns over the future of Britain's high streets following news that WHSmith is in talks to sell all 500 of its UK high street stores, alongside recently announced job cuts at major retailers and widespread bank branch closures.
The potential sale of WHSmith's entire high street operation comes as Sainsbury's announced 3,000 job cuts, Morrisons revealed plans to slash over 200 positions, and major banks confirmed 169 branch closures across NatWest, Halifax, Lloyds and Bank of Scotland for 2025.
The British Independent Retailers Association (Bira), which works with over 6,000 independent businesses of all sizes across the UK, believes this latest development signals a critical point for UK high streets.
Andrew Goodacre, CEO of Bira said, "The news about WHSmith potentially selling all their high street stores is particularly concerning as it follows a stream of other negative announcements affecting our town centres.
"Job losses at Sainsbury's and Morrisons, combined with another wave of bank closures, creates a perfect storm for many high streets across the UK. WHSmith has been a cornerstone of British retail for over two centuries, and their potential exit from the high street represents a significant shift in the retail landscape.
"Many WHSmith branches also house Post Office counters, so their closure would create yet another serious gap in essential high street services for local communities.
"These closures and job losses will inevitably impact footfall in town centres, affecting independent retailers who rely on these anchor stores and banks to drive customer traffic.
"We need urgent government intervention to support our high streets before we see even more closures and job losses," he added.
WHSmith's decision reflects the growing challenges faced by traditional retailers, with the company's travel retail business now accounting for approximately three-quarters of group revenue and 85 per cent of trading profit.
Speciality food and drink was celebrated last week at Scotland’s fine food trade event, the Speciality Food & Drink Show, with farm shops, buyers, hotels and restaurants all flocking to Glasgow’s SEC from 19-21 January to ensure they had a slice of the pie. With a host of innovative producers showing their wares, buyers had choice, taste and some really unusual food and drink to whet their appetites.
With an increase in the number of visitors from 2024, exhibitors were pleased with the quality of the buyers who were serious about enquiries and even placing orders, discovering and tasting new products and trends, and re-stocking after a steady season last year. Nothing beats the face-to-face contact of a trade Show, making them a firm fixture in the buying calendar.
“It was great to judge the Best Product Awards and see so many entries, which made it challenging to only pick three from each category," said April Pollock, Scottish buyer for Morrison’s supermarket. "In general the Show was brimming with many fantastic products and it is always refreshing to see new and innovative products being introduced to the market.”
The quality of products on offer has increased steadily over the years and on display was some of the most delicious, well-packaged and well-presented products that are on offer in the country. The regions were also celebrated with Orkney, Food from Argyll and Appetite for Angus all taking large, multi-producer stands, attracting a steady flow of buyers for the three days.
Anya Baak from Great Glen Charcuterie said: “This has been a really good show for us and we have had a great response from visitors. As well as seeing our existing buyers we have met new ones and so are spreading the word about our products further afield.”
The Best Product Awards, judged on the opening day of the Show by industry experts Ben Dale from Cairn Lodge services, Karol Rzepkowski from Victor Hugo delis, Janey Paton from Auchentullich Farm Shop and April Pollock, Buyer for Morrisons attracted much interest. The winners all displayed a degree of innovation, good packaging, excellent taste and an understanding of how to produce commercial products.
Karol Rzepkpwski said, “The awards was a great showcase for Scottish food and drink. We were impressed by the care and passion of so many of the producers and the degree of innovation they showed in the production process and packaging.”
Winner of the Drinks category Jennifer Macleod from North Uist Distillery said: “We saw many new buyers who came to the stand on the back of us being awarded Gold. This has given us many leads to follow up and as a newbie to this Show we will definitely be back.”
As well as the sourcing element, Scotland’s Speciality Food & Drink Show had a full programme of talks and panel discussions in their Talking Shop. All were well attended and gave insight into subjects from digital strategies to trends, tourism ideas to how to become more sustainable.
Show Director Mark Saunders commented: “We are aware that times are tough right now. We are in the fortunate position in Scotland of being a popular tourist destination as well as fostering huge talent around the country. Our Show punches above its weight in terms of the innovation of exhibitors and attracts buyers from far and wide. The 2025 Show demonstrated this with healthy order books, smiling exhibitors and satisfied buyers all returning home after three busy days.”
Following hard on the heels of news in 2024 of Penny Petroleum joining Bestway Retail with the conversion of 60 sites, and Simply Fresh re-signing on a long-term basis, Bestway Retail, part of Bestway Wholesale, has now announced a new long-term partnership with James Retail - the 40-strong, nationwide, convenience and travel interchange operator, owned by the hugely experienced and respected industry champion, Jonathan James.
Already working with the leading privately-owned neighbourhood and travel hub operator, the new agreement accelerates Bestway Retail’s strategic growth plans and sees the award-winning James Retail convert their estate to both Costcutter and Costcutter on-the-go formats.
Bestway Retail and James Retail have been working closely together since Bestway’s acquisition of Conviviality Retail in 2018.
The relationship has strongly developed over the last two years with James Retail placing a greater focus on the Convenience aspect of the business and utilising the Bestway Retail and Costcutter entrepreneurial brands and associated supply chains.
11 of James Retail’s sites have been successfully converted to the Costcutter brand, including the site in Lymm in Warrington, Cheshire which has since recorded a sales increase of +20 per cent.
Jonathan James, owner of James Retail, said, "We are delighted to be entering a new and exciting phase of our long-term partnership with the Bestway Retail and Costcutter team.
"We have already seen impressive sales uplift from the stores we have converted to the Costcutter brand, and we look forward to enjoying more success as we convert more of our convenience stores this year.
“The Costcutter brand is a hugely recognised convenience brand that shoppers recognise, trust, and have confidence in. Its grocery convenience offer is able to meet shoppers’ needs across all of their shopping missions.”
Jamie Davison, Retail Director for Bestway Retail, commented, “Having known Jonathan and Mark Titterton (Managing Director of James Retail), for many years and having thoroughly enjoyed working with them and their dynamic team over the last two years, we’re delighted to have successfully demonstrated that we are best placed to partner with them as they embark on the next phase of their business evolution which underpins their ambitious growth plans”.
“The sites which have already converted to Costcutter have seen a sustained minimum 15 per cent increase in weekly sales and so we are confident that the conversion programme will drive strong commercial growth for James Retail and will equally be very well received by their loyal shoppers.”
UK FTSE Retailers issued 20 profit warnings in 2024, marking a slight improvement from the previous year, which saw 24 warnings, according to EY Parthenon’s latest Profit Warnings report.
In the fourth quarter of 2024, FTSE Retailers issued seven profit warnings, a significant increase from the one warning issued in Q3. Although the total number of warnings for the sector decreased in 2024, the proportion of listed retailers issuing warnings only saw a marginal decline, from 39 per cent to 38 per cent.
The report also highlights that three-quarters (75 per cent) of FTSE Personal Goods companies issued a warning in 2024 (10 warnings in total), whilst over half (52 per cent) of FTSE Household Goods and Home Construction companies also warned (19 warnings in total).
Half of all FTSE Retailers' profit warnings in 2024 cited weaker confidence as a leading factor behind the warnings.
Silvia Rindone, EY Partner and UK&I Retail Lead, said, "Profit warnings in the retail sector remained prevalent in 2024. Whilst festive trading reports were broadly positive, they highlight that demand is only part of the story.
"Despite an increase in disposable incomes in 2024, consumer confidence has been slow to rebound following the cost-of-living crisis, resulting in a disappointing end to the year for many retailers.
“It’s clear that shoppers are willing to spend if the price is right and the proposition is strong.
"However, retailers’ uncertainty over how much rising costs can be offset through automation and efficiency savings, or passed on in price increases, is making them almost universally cautious about the year ahead. Higher employment costs and the investment needed to adapt to changing consumer behaviour will challenge every retailer during 2025.”
One in five UK-listed companies issued a profit warning in 2024
Across all sectors, one in five (19 per cent) UK-listed companies issued a profit warning in 2024, the third highest annual proportion in 25 years, behind only the 2020 pandemic (35 per cent) and the impact of the dot-com bubble burst and 9/11 in 2001 (23 per cent).
By the end of 2024, 274 profit warnings had been issued – including 71 in Q4 – down slightly from the 294 issued during 2023.
The leading factor behind profit warnings in 2024 was contract and order cancellations or delays, cited in 34 per cent of warnings, including 39 per cent in Q4 – the highest quarterly percentage for this reason in more than 15 years. Increasing costs triggered nearly one in five (18 per cent ) warnings in the last 12 months.
Jo Robinson, EY-Parthenon Partner and UK&I Turnaround and Restructuring Strategy Leader, said, “It’s clear that companies have faced an extraordinary succession of forecasting challenges since the pandemic, contending with interconnected disruptions to supply chains, material and energy costs, and the labour market, as well as higher interest rates.
"2024 was also an exceptional year for global geopolitical uncertainty and policy upheaval, with a record level of profit warnings linked to contract and spending delays as businesses held back from recruitment and investment. As a result, companies’ forecasting strategies need to respond to both short-term policy changes and deeper structural issues.
“Ordinarily, a sustained increase in company earnings pressures would be followed by a significant rise in insolvencies. But this cycle has been different. The availability of cheap, long-term debt and pandemic support provided breathing space for both businesses and stakeholders to explore consensual solutions and new restructuring options.
"However, more companies are now reaching a tipping point as cumulative pressures build.
"We don’t expect a huge uptick in insolvency levels in 2025, but we are now seeing more distress, and more stakeholders viewing insolvency processes as a real option in finding the best path forward.
“While the pace of profit warnings has eased slightly in early 2025, we’ve seen the recruitment sector continue to grapple with a downturn in activity across key geographies and sectors, before the increases in employer National Insurance Contributions and the National Living Wage take effect.
"Across the board, the road ahead remains rocky with challenges around trade, geopolitics, interest rates, and more.”
Consumers are losing confidence in the UK’s economic prospects and considering tightening purse strings and saving money in the coming months, shows recent data.
Amid widespread warnings that businesses may have to cut staff and raise prices because of impending tax and wage rises, GfK’s long-running Consumer Confidence Index fell by five points to -22 in January – its lowest reading since since December 2023.
Neil Bellamy, Consumer Insights Director at NIQ GfK, noted that there were particularly steep falls in consumer views on the wider UK economy, both looking back a year and at what’s in store for the next 12 months.
“These figures underline that consumers are losing confidence in the UK’s economic prospects,” he said.
“While the Savings Index on motivation to save money is not included in the calculation of the Overall Index Score, it’s notable that it has leapt nine points in January to +30.
"This sharp increase is unwelcome because it’s another sign that people see dark days ahead and are therefore thinking of putting money aside for safety.”
Growth in the UK economy has slowed to a crawl in recent months, with the Bank of England now widely expected to cut interest rates on 6th February.
Separate data released recently showed that there has been an “unprecedented” rise in the number of businesses on the brink of insolvency.
The Red Flag Alert report by Begbies Traynor showed that the number of firms in critical financial distress rose by 50 per cent in the three months to December compared to June-August. It said that 46,583 businesses were clinging on, with consumer-facing firms, such as hospitality businesses, bearing the brunt of the deterioration.
The report pointed to pressures on many fronts, from rising energy costs, budget tax measures, high interest rates and weak consumer demand.
Julie Palmer, partner at Begbies Traynor, commented: “Across nearly every sector, there has been an unprecedented level of growth in the number of firms who are at serious risk of entering insolvency in the next 12 months.
"The fact that the distress is being felt across almost every corner of the economy highlights how difficult the outlook is for UK businesses right now.
“After a disappointing Christmas, consumer-facing industries, in particular, are feeling the strain, with rising operational costs and higher wages adding to an already difficult situation.
"With many such businesses already operating on thin margins, I fear the current situation will undoubtedly push some over the edge.
“Indeed, at a time when consumer confidence is so volatile and borrowing costs look likely to be structurally higher for the foreseeable future, the situation feels very precarious.
“Sadly, this has only been exacerbated by the tax rises and increase in national minimum wage levied on businesses during the October 2024 UK budget, which means the financial strain on businesses will only increase later this year.”