Consumers like names they can trust and symbol groups are the perfect combination of local faces with trusted brands, thus encouraging return trade and a relationship between shopper and store.

The latest data from Kantar Worldpanel to 14^th May 2023, shows the Northern Irish grocery market saw sales grow by 8.5% in the year to 11^th June 2023, with shoppers spending an additional £308.4 year-on-year.

With grocery inflation at 16.1% for June, the average grocery bill is set to rise by £840, from £5221 to £6061 if consumers don’t make changes to what they are buying.

But shoppers are savvy, and are continuing to look for ways to manage household bills and as part of this, they are returning to store more often, picking up less each time.

What they are choosing to buy is also changing, as own-label items now account for a bigger share of the sector year-on-year. Indeed some €2.9 billion was spent on own-label groceries in NI in 2022 (estimated), with Mintel noting that 71% of Northern Irish consumers avoided buying premium products due to the cost-of-living crisis in 2022.

“Irish shoppers have felt the impact of increased grocery prices in 2022, and have shifted their shopping behaviour accordingly, with a greater level of consumers reporting that they are avoiding premium brands and many using more own-label brands and discounter retailers,” said Brian O’Connor, Senior Consumer Analyst at Mintel.

Convenience is key and is fast becoming the cornerstone of everyday life. Gone are the corner shops of yesteryear. It’s all about the customer experience – and symbol stores have taken that concept to heart – by making the efficiency and ease of shopping at the core.

The symbol sector has actively capitalised on making the ‘shopper experience’ at the centre of their business ethos – smart, stylish, well lit, clean, clear labelling – with value for money being the driving force – this savvy sense of driving the sector forward has its roots in research, category management, and sound business sense.

THE SHIFT TO SYMBOLS

Retail analysts are identifying a clear shift in consumer behaviour and attitudes that is favouring the convenience sector.

On average, shoppers are returning to store nearly 17 times more, but are picking up less volume -2packs when compared to this time last year.

These new attitudes towards grocery shopping are supporting growth in the convenience sector, meaning retailers should adapt to drive change and keep pace with these new shopper behaviours.

These trends are presenting the symbol sector with a new raft of opportunities. Along with technology developments, it’s a clear response to customer needs and demands. It’s being predicted that these trends are likely to continue to evolve rapidly over the next five to 10 years.

Travel and movement patterns have altered in recent years, with more people working from home, resulting in people travelling on the road at different times of day. These pattern shifts are also changing the way consumers view and use convenience stores – but most importantly, consumers want the assurances and certainty that a recognised symbol secures – that meets their expectations.

THE ’CONSUMER EXPERIENCE’

At the cutting edge of change, the symbol sector is creating great shopping experiences for consumers, alongside the essential services and facilities they are known for.

The Henderson Group, which boasts some 500 stores across Northern Ireland – a mix of company-owned and independent retailers – has committed to significant investments throughout 2023, with a capital programme of over £60 million to be invested.

“We are a successful, independent, family-run, family-owned business and we have an ethos and culture of continual reinvestment to drive the business,” said Paddy Doody, Sales and Marketing Director.

“That’s about partnering with our independent retailers, investing in their business, investing in new stores, investing in promotional and price activity to give better value to the shopper, and investing in our infrastructure.”

‘Shoppers in Northern Ireland spent an additional £6.7 million in symbols versus last year, with 76.7% of Northern Ireland households purchasing their groceries in a symbol group over 2023’

As food and drink prices continue to climb, with average prices up 10.1% compared to last year, the impact on shoppers’ budgets is unavoidable for many Northern Irish consumers.

As shoppers look for ways to manage costs, many are turning to cheaper alternatives such as retailer own-label lines, where sales are up £193 million compared to last year and versus branded products, which are up £119m year-on-year.

All retailers are seeing year-on-year growth in the latest 52 weeks. Total symbols are seeing the slowest growth among retailers, at 2.4% year-on-year.

Shoppers in Northern Ireland spent an additional £6.7 million in symbols versus last year, with 76.7% of Northern Ireland households purchasing their groceries in a symbol group over 2023.

On average shoppers pick up groceries in a symbol group 65.3 times over the course of the year, which is down only slightly, at 0.1% on last year.

LOOKING TO THE FUTURE

Retailers will need to continue to make efforts to be more sustainable, as 78% of Northern Irish consumers noted they consider their lifestyle to be environmentally friendly to at least some degree, notes Mintel.

Some 71% of Northern Irish consumers believe that unless there are changes from big businesses, the planet cannot be saved. As such, grocery retailers that can successfully display green/ethical initiatives to support sustainability, will likely appeal more to shoppers.

With more consumers struggling to justify ‘splashing out’, adding a sustainable angle to grocery shopping may help to alleviate any ‘buyers’ guilt that consumers might feel in splashing out in a time where they may feel they need to deny themselves luxuries.

Having set out to achieve a 12% carbon reduction by the end of 2023, SuperValu and Centra retailers have achieved a 9% carbon reduction, a year on from the launch of the €25m Musgrave Sustainability Fund.

In June last year, Musgrave announced the first of its kind €25 million sustainability fund aimed at realising this target and reducing emissions across its operations, ultimately to achieve net zero by 2040. In order to reduce emissions to net zero by 2040, Musgrave is aiming to achieve a 46% reduction in carbon emissions (Scope 1 and 2) by 2030.

Ian Allen, Managing Director of SuperValu and Centra said: “Our stores are at the heart of communities around Ireland, and we are proud that our network of SuperValu and Centra retailers are on track to reach our carbon reduction goal by the end of this year.

“Our retailers have shown real passion and enthusiasm to continue to lead by example and implement sustainability measures across their leading supermarket and convenience stores.”

Retailer Philip Woods, who operates four SuperValu and Centra stores in the Armagh and Portadown areas, has invested £660,000 to reduce his store’s carbon emissions and make them more sustainable, supporting brand owner Musgrave Northern Ireland’s sustainability goals.

Investing in new energy efficient refrigeration, LED lighting, and solar panels, the retailer has also been supported by Musgrave NI’s £3.6 million Sustainability Fund.

Mr Woods is the first retailer in Musgrave NI’s network to use the Sustainability Fund for solar panels, which have been installed by local company Solmatix into SuperValu Fruitfield, Richhill and Tandragee, plus Centra Dobbin Road.

The solar panels will reduce carbon emissions by saving a predicted 49 tonnes of CO2 across the four sites each year helping to achieve Musgrave NI’s overall target of net zero carbon by 2040. This is the equivalent to planting 1,856 trees.

TO VIEW THE FULL MID-YEAR SYMBOL REVIEW IN THE NEIGHBOURHOOD RETAILER JULY ISSUE, CLICK HERE

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Having worked in the legal and private sector for over 25 years, Linus Murray has extensive experience in the licensing and convenience industry. This makes him best placed to advise and guide those in the retail sector on obtaining licences for their stores.

The demand for off sales increased significantly during the pandemic, with hospitality shut down and consumers seeking an alternative way to still enjoy their drinks at home. Retailers capitalised on this opportunity, introducing off sales into stores, providing customers with even more options to satisfy all their shopping needs.

FOOTFALL AND SPEND

Linus said many retailers described the increase in footfall and spend as being “like Christmas every day”.

“During covid, shop turnover was very significant and this continued for a long, long time,” said Linus.

“The commercial benefit for a shop getting a licence is very evident – if you can get an off sales into a shop, you are going to get approximately 20% more spend in your store. This comes from impulse buys, so commercially it is very viable and very lucrative.”

With 25 years’ commercial experience specialising in hospitality and licensing, Linus was named a new partner at Belfast-based law firm, McKees last November, a move he describes as a “perfect fit”.

‘The commercial benefit for a shop getting a licence is very evident – if you can get an off sales into a shop, you are going to get approximately 20% more spend in your store’

“I enjoy working in the hospitality and convenience legal sectors and helping our clients grow their business. It’s an exciting, challenging time and business is going really well,” he said.

In the last few years Linus has secured licences for approximately 20 new mixed trade convenience licences across Northern Ireland, and with a host of lucrative clients, including Musgrave, he is well established as the key figure in the industry to turn to.

“Musgrave, which operates the SuperValu, Centra and Mace retail brands, has been very pleased with what we’ve done with Managing Director Trevor Magill describing it as being transformational for the business. Because myself and the licensing team at McKees have extensive experience in this area, we can make the process relatively easy for them.”

‘TRANSFORMATIONAL’

McKees recently assisted SuperValu in Newry in securing a mixed trade convenience licence in approximately eight weeks. We spoke to David Og Downey and he said: “McKees made what had appeared to us to be a complex and extremely difficult process to be straightforward and their expertise and professionalism was exceptional. Securing a licence for our store has been transformational for the business.”

When a retailer approaches McKees, the firm takes ownership of the case from the outset, carrying out a preliminary review of the prospects of getting a licence and then sourcing a suitable licence for them.

“Once we receive that initial phone call and establish what they want, we will take control from start to finish. At the moment, a licence costs in the region of £100,000 to £110,000, that is on the back of the surrender principle.”

Linus describes the surrender principle as the main challenge for retailers.

“To get a new licence, you have to surrender a licence. You can’t just create a new off sales, you need to surrender a licence and show there is a need for an off sales in the area,” he said.

‘Preparation is key, you cannot be prepared enough – that is why I am very focused on making sure that cases are presented as thoroughly as possible’

“It is very common to get objections from other interested parties and that’s when the process can become complex, requiring expert legal and planning advice. An unopposed application usually takes in the region of two to three months, while an opposed application can take up to 12 months. There is court involvement, other experts, such as planning experts and then the application is presented to the Judge, who will make a determination.

“Preparation is key, you cannot be prepared enough – that is why I am very focused on making sure that cases are presented as thoroughly as possible.

“At McKees, not only do we have the legal expertise, but we have the commercial and strategic expertise, where we can advise the retailers on all aspects of their legal work.

“The key incentive is if you can have an off sales on the site from day one, it enhances the commerciality of the business. So, we are involved with businesses from start to finish and we are keen to represent as many of those retailers in the sector to the best of our ability.”

To contact Linus Murray or the licensing team at McKees, call 028 9023 2303, email linus.murray@mckees-law.com or go to www.mckees-law.com for further information on the services available.

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A total of 34 life-saving defibrillators have been installed by MK Medical inside all SuperValu and Centra stores owned by the company, as well as Musgrave MarketPlace sites, Musgrave’s headquarters on Dargan Drive and drinks wholesaler, Drinks Inc on Boucher Road, Belfast.

SuperValu and Centra stores included are located across the region, including Banbridge, Belfast, Carrickfergus, Comber, Cookstown, Dungiven, Armagh, Limavady and many more.

POTENTIAL LIFELINE

Defibrillators have the potential to save the lives of staff and customers, with latest research showing that accessing these devices within 3-5 minutes of a cardiac arrest increases the chance of survival by over 40%.

Trevor Magill, Managing Director of Musgrave NI, said: “Our stores across Northern Ireland are at the heart of their communities and we’re proud to provide a potential lifeline to them in an emergency with the installation of defibrillators at our Musgrave-owned SuperValu and Centra stores.

“Timing is crucial when dealing with a cardiac arrest, therefore having direct access to a defibrillator whether in our stores or office locations, could be life-saving.”

To learn more about how to use a defibrillator please visit St John Ambulance.

Musgrave sites where defibrillators are installed:

Head Office and Regional Distribution Centre, Dargan Drive, Belfast

Drinks Inc, Falcon Rd, Belfast

Marketplace, Dargan Crescent, Belfast

Marketplace Pennyburn, Buncrana Rd, Derry City

Centra, Ballymagorry, Tyrone

Centra, Banbridge Church Street, Down

SuperValu, Dairy Farm, Belfast

Centra, Foxes Glen, Stewartstown Road, Belfast

SuperValu, Kings Square, Belfast

Centra, Woodburn Rd, Carrickfergus

SuperValu, Comber

Centra, Burn Road, Cookstown,

Centra, Buncrana Road, Derry/Londonderry

SuperValu, Downpatrick

Centra, High Street, Draperstown

SuperValu, Dungiven

SuperValu, Tattymoyle Road, Fintona

Centra, Irvinestown, Fermanagh

SuperValu, Irvinestown, Fermanagh

SuperValu, Market Street, Limavady

SuperValu, Knockmore Rd, Lisburn

Centra, Main Street, Moira

SuperValu, Dundrum Road, Newcastle

SuperValu, Clones Road, Newtownbutler

SuperValu, Market Street, Omagh

Centra, Clady Road, Portglenone

SuperValu, Station Road, Portstewart

SuperValu, Main St, Strabane

Centra, Mullaghglass Road, Whitemountain, Lisburn

Centra, O’Neill Rd, Newtownabbey

Centra, Main St, Claudy

Centra, Mayfield link, Mallusk

Centra, Feeny Rd, Dungiven

SuperValu, Main St, Portglenone

The post Musgrave invests £65k installing defibrillators in locations across NI first appeared on Neighbourhood Retailer.

“One of Musgrave’s key values is to build long term stable relationships, and that is exactly what we have with our retail partners and retailers. We’re committed to supporting them throughout their business journey. It is these partnerships that undoubtedly contribute to the success of our retail brands, which have experienced growth in 2022 and there is further expansion planned for 2023.”

INVESTMENT

Investing £14m in its store network in 2022, Musgrave welcomed the opening of a brand new 3,000 sq ft Centra store and forecourt on the Stewartstown Road in Belfast – the second store for retailers the Farrells.

“Our Business Development team is focused on growing our brands and is therefore continually seeking new opportunities for our retail partners. They identified this site and presented it to the Farrells as a lucrative opportunity to expand their business. We’re delighted to say that since opening, the store has exceeded expectations and sales are very strong.

“McGleenan’s Centra in Keady underwent a major £2m refurbishment and we welcomed six new Mace stores to our network. Our expansion is set to continue this year starting with two new competitor conversions to the Mace brand and one to Centra in Q1, as well as a brand new Centra store in the summer.”

AWARD WINS

The brands enjoyed success with award wins at both the prestigious UK-wide Retail Industry Awards and the Neighbourhood Retailer Awards.

“We were thrilled to attend these industry events with our retail partners. At the Retail Industry Awards in London, McGleenan’s Centra in Keady won Independent Retailer of the Year (Over 6,000 sq ft); Lusty’s Centra Larne picked up Drinks Retailer of the Year award and Peter Wilson, owner of SuperValu Portadown, was awarded Newcomer of the Year – all fantastic achievements.

“Closer to home, it was also great to see the Neighbourhood Retailer Awards return, celebrating the best in food retailing across Northern Ireland.  Congratulations to McCool’s Centra Ballymena which won Neighbourhood Store of the Year Category 3; Moran’s Centra Coleraine which won Forecourt of the Year Category 1; and Ruairi McBride of Ivan Wilson Centra Limavady, who took home the Store Manager of the Year award.

“We were very pleased to welcome our retailers to our conference and Store of the Year Awards at the Slieve Donard Hotel for the first time since 2019, to recognise and celebrate their hard work and commitment, and we’re looking forward to the next event in May.

“While there will always be challenges to overcome in business, thanks to the incredible relationships we have with our retail partners and retailers, their hard work and dedication during what have undoubtedly been a testing few years, we’re confident in achieving continued success for our brands. We look forward to growing our network across Northern Ireland and offering our customers excellent value, choice and quality in our stores.”

TO READ PADDY’S INDUSTRY COMMENT IN THE 2023 NEIGHBOURHOOD RETAILER YEARBOOK AND MARKETING GUIDE, CLICK HERE

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Musgrave CEO, Noel Keeley, signed the LEAD Network CEO Pledge at the annual Musgrave management conference. The Pledge lays out specific actions for Musgrave to drive greater advancement of women across the business including coaching and mentoring, ensuring there are intentional strategies to drive inclusive recruitment, leveraging employee resource groups and educating colleagues on the impact of bias.

INCLUSIVITY

Separately, Musgrave has set a target to increase female representation in leadership and senior management roles to over 40% by 2025, from 32% currently. In addition, Musgrave has committed to achieving over 30% female participation in its executive team by 2025 from 25% presently. Musgrave NI currently employs 1,700 staff across Northern Ireland.

Noel Keeley, CEO, Musgrave, said: “The LEAD Network CEO Pledge further strengthens our commitment to creating a more inclusive Musgrave, which will play a vital role in helping us to develop a world-class food and beverage business. We have made progress in advancing female participation at senior levels, but our work is not done yet.

“We continue to review and renew our policies on an ongoing basis to ensure we are doing everything possible to encourage women to consider, commit to, and thrive in a career in our industry. This will be a constant process to ensure that the business we pass on to the next generation is more equitable, more diverse, and more inclusive.”

‘We have made progress in advancing female participation at senior levels, but our work is not done yet’

The industries in which Musgrave operates have traditionally been male dominated but the organisation is actively working to change that. The company recently introduced a variety of policies and fundamental changes to business operations aimed at encouraging more women to join the business, and to encourage women in the business to keep advancing their career.

A core aspect of Musgrave’s overall People Strategy is a comprehensive inclusion and diversity plan, which is made up of three pillars: ‘Engaging & Educating’, ‘Attracting Diverse Talent’ and ‘Modernising the Way We Work’.

A recent employee engagement survey found that 86% believe Musgrave is an inclusive organisation.

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