Sugro is a democratic organisation with one member and one vote and, therefore, irrespective of the size of the wholesaler or the representative percentage of turnover within Sugro, everyone has an equal say and opportunity within the company. However, to assist the group in the development of definitive directions, the members will elect a Board of Directors from within who will represent the interests of the overall membership at Board level.
At the recent Annual General Meeting we had two Directors up for re-election and, in line with the constitutional structure, wholesalers are entitled to put their names forward and, of course, if they do so the election process is then triggered and the election takes place.
As a result of that election, we have two new Directors voted by the members, for the members. Firstly, Mr Iain Hill, a wholesale member based in Beith in Scotland; Iain is also actively involved in the Scottish Wholesale Association and for the last two years has been President of that organisation and we are delighted to welcome him on to the Board. The second new Director is Mr Derek O’Reilly, from O’Reilly Confectioners, based in Newry, Northern Ireland. O’Reilly’s is a long standing, family business; is a substantial wholesale business and is amongst the biggest wholesalers we have within Sugro. O’Reilly’s has been a member of National Wholesale Confectioners Ltd since its inception and Derek’s years of experience as a member and wholesaler will certainly bring value to the Board and, with the continuation of experience from Northern Ireland into our Board of Directors, I look forward to the contribution he will make.
Certainly, when elections take place, an element of turmoil will begin to exist but now that the elections are over and the Directors are in place, we are back to business; the business of developing commercial deals for our Sugro wholesalers to grow and develop turnover and profitability for their businesses.
Thursday, 22 July 2010
The Scottish Wholesale Association Conference
I was fortunate enough to be invited to speak at the SWA conference that took place in mid June. This is always a good, informative conference with friends and good company. My speech revolved around the inter-relationship of suppliers and wholesalers and how both parties fail to work together as closely as they could, primarily due to the corporate internal conflicts and goals, which are at odds with the requirements of our category, and wholesalers in a general sense, chasing the deal without necessarily delivering value on the promotions made at the time of negotiation. In addition, there is, of course, the independent retailer believing that by not promoting they make more money than actively promoting when, in fact, the promotional profile within the independent retail store would actually generate consumer confidence regarding the competitiveness of that store rather than the overall retail market place.
I believe the contents of the speech were warmly received, however, as usual we had a mix of people who did not believe that any of the content applied to them. However, as I kept reminding everybody, this situation applied to everyone present in that room and it was important that they recognised that situation and went back to their businesses to see what could be done to make the relevant changes.
There is a Powerpoint presentation available. If you would like it, please request it through the comment section, leaving your email address.
I believe the contents of the speech were warmly received, however, as usual we had a mix of people who did not believe that any of the content applied to them. However, as I kept reminding everybody, this situation applied to everyone present in that room and it was important that they recognised that situation and went back to their businesses to see what could be done to make the relevant changes.
There is a Powerpoint presentation available. If you would like it, please request it through the comment section, leaving your email address.
Tuesday, 20 July 2010
National Cuppa Day
For many years we have backed and firmly believed in the principle of My Shop is Your Shop (MSYS). It is a fantastic campaign bringing to the attention of consumers the need for community stores and the importance that these stores hold in the future maintenance and development of community within their locality.
Last month Sugro participated in MSYS during National Independent's Week, and specifically the central event, National Cuppa Day. I went out with Chris Rolfe, a journalist from Retail Newsagent, and we had an excellent morning visiting retailers in the Manchester area who were participating in the event and enjoying a cup of tea with their customers. I do believe that the campaign in its current format will always connect with existing customers. However, having been on the shop floor during the event, I can see that there is a requirement to gear up the community store campaign directed primarily at UK consumers. They need to understand the importance of protecting community stores, whether they are independent or on the high street, in order to avoid the growth of the 'clone city'. We don't need to encourage behemoth retail businesses that support corporate goals, we need to support individuals who provide a community service aimed at local customers. Therefore, I will be looking to convince the FWD to drive this campaign in a much bigger way, directly towards the conscience of consumers and the eradication of cloning throughout our towns and cities.
Last month Sugro participated in MSYS during National Independent's Week, and specifically the central event, National Cuppa Day. I went out with Chris Rolfe, a journalist from Retail Newsagent, and we had an excellent morning visiting retailers in the Manchester area who were participating in the event and enjoying a cup of tea with their customers. I do believe that the campaign in its current format will always connect with existing customers. However, having been on the shop floor during the event, I can see that there is a requirement to gear up the community store campaign directed primarily at UK consumers. They need to understand the importance of protecting community stores, whether they are independent or on the high street, in order to avoid the growth of the 'clone city'. We don't need to encourage behemoth retail businesses that support corporate goals, we need to support individuals who provide a community service aimed at local customers. Therefore, I will be looking to convince the FWD to drive this campaign in a much bigger way, directly towards the conscience of consumers and the eradication of cloning throughout our towns and cities.
Wednesday, 14 July 2010
Sugro Annual Conference 2010
Every May Sugro holds its Annual Conference comprising two major events. Firstly, the Trade Show held on the Friday with 53 suppliers and over 200 deals and promotions for Sugro wholesalers to take advantage of. More importantly these are backed up with a national marketing template for the individual wholesale businesses to bring together a promotional leaflet on a local basis, selling and moving through Trade Show deals for their customers. In excess of £13 million worth of stock at wholesale was purchased and, certainly by the end of June, all of the promotional leaflets would have been distributed, the stock sold and delivered, and consequently huge volumes for our members, giving them an advantage over competitors in their area.
Secondly, on the Saturday we have a business session, this year made up of interviews with senior personnel from within our major supplier base, together with an outline of a survey that we conducted at the end of 2009. It certainly proved to be an interesting business session, even though trying to get a response from the audience to some of the points was a bit like trying to get blood out of a stone. Overall, the commercial side of our conference and business session proved to be successful and we now look forward to our next Annual Conference in May 2011 which will be held at the Hilton Hotel, Deansgate in Manchester.
Secondly, on the Saturday we have a business session, this year made up of interviews with senior personnel from within our major supplier base, together with an outline of a survey that we conducted at the end of 2009. It certainly proved to be an interesting business session, even though trying to get a response from the audience to some of the points was a bit like trying to get blood out of a stone. Overall, the commercial side of our conference and business session proved to be successful and we now look forward to our next Annual Conference in May 2011 which will be held at the Hilton Hotel, Deansgate in Manchester.
Tuesday, 13 July 2010
How to alienate yourself from small stores without really trying
In a recent interview Jerry Marwood, the Managing Director of Spar UK, effectively announced the future alienation of small store profile with regard to CTNs and Off-Licences by saying: “one trick ponies don’t stand a chance. CTN’s are doomed.” I fully agree that the diversification of offer is important, but I also think that Jerry may have misunderstood the shopping mission of consumers visiting CTNs or, as Jerry would state, “one trick pony” locations.
The specialisation and development of that USP is actually important and the maintenance and the local knowledge of that USP is also key. We have a CTN customer who has made it his goal to provide magazines and newspapers on request, irrespective of how specialised they are. This has now developed into a major initiative for the store and customers are even referred to that store by W H Smith staff if they are unable to obtain the specialist magazine or newspaper they require. This is certainly a store that trades very strongly as a “one trick pony” and, as far as its customers are concerned, they would not wish to see it become a plagiaristic copy of the perceived range and requirement as laid down by major multiples or large convenience store profile rules of consumer engagement.
I genuinely believe that the development of a USP within a “one trick pony” format is as sustainable, if not more sustainable, than increased operational costs for a small store to broaden their range into chilled; fresh; green grocery; bakery and food to go, because the risks that the investment and the additional cost incur will bring on a greater opportunity for administration and receivership, than developing the USP within the operational costs which is far more relevant to the turnover and profitability of that small store.
It is unusual for me to disagree with Jerry Marwood because he has proven experience and expertise in the development and management of Spar UK, but sorry Jerry, I have to disagree with you on this point as I genuinely believe there are still opportunities.
The specialisation and development of that USP is actually important and the maintenance and the local knowledge of that USP is also key. We have a CTN customer who has made it his goal to provide magazines and newspapers on request, irrespective of how specialised they are. This has now developed into a major initiative for the store and customers are even referred to that store by W H Smith staff if they are unable to obtain the specialist magazine or newspaper they require. This is certainly a store that trades very strongly as a “one trick pony” and, as far as its customers are concerned, they would not wish to see it become a plagiaristic copy of the perceived range and requirement as laid down by major multiples or large convenience store profile rules of consumer engagement.
I genuinely believe that the development of a USP within a “one trick pony” format is as sustainable, if not more sustainable, than increased operational costs for a small store to broaden their range into chilled; fresh; green grocery; bakery and food to go, because the risks that the investment and the additional cost incur will bring on a greater opportunity for administration and receivership, than developing the USP within the operational costs which is far more relevant to the turnover and profitability of that small store.
It is unusual for me to disagree with Jerry Marwood because he has proven experience and expertise in the development and management of Spar UK, but sorry Jerry, I have to disagree with you on this point as I genuinely believe there are still opportunities.
Tuesday, 30 March 2010
Do our politicians truly care about the SME’s within the independent sector?
As we approach the election and we see a considerable amount of jockeying for position on the basis of “please vote for me”; once again we find Government departments, with the blessing of politicians, lining up to penalise our industry under the guise of controlling obesity.
Whether it’s the Scottish Parliament putting in place rules and regulations based around where impulse products and soft drinks can be merchandised through ill advised and outrageous proposals to our industry; or Westminster with a view towards a fat tax against products that they believe lead to obesity or are a contributory factor towards obesity.
I have said before, the greatest threat to the independent sector is not the march of the multiples but the incompetence of the Government applying rules and regulations against legitimate and legal products. At the same time they are taking away the freedom of choice from the general population, presumably on the basis that we are all incapable of making decisions for ourselves and, therefore, by conclusion we must assume that politicians and leaders in the Civil Service are far more informed, intelligent, capable, ethical and honourable than the rest of the UK population.
Thank God they are saving us! In reality I sincerely hope that during the election campaign, where they are forced to actually listen to the people they serve, they will start to understand the effect their ridiculous legislation is having on our society.
Whether it’s the Scottish Parliament putting in place rules and regulations based around where impulse products and soft drinks can be merchandised through ill advised and outrageous proposals to our industry; or Westminster with a view towards a fat tax against products that they believe lead to obesity or are a contributory factor towards obesity.
I have said before, the greatest threat to the independent sector is not the march of the multiples but the incompetence of the Government applying rules and regulations against legitimate and legal products. At the same time they are taking away the freedom of choice from the general population, presumably on the basis that we are all incapable of making decisions for ourselves and, therefore, by conclusion we must assume that politicians and leaders in the Civil Service are far more informed, intelligent, capable, ethical and honourable than the rest of the UK population.
Thank God they are saving us! In reality I sincerely hope that during the election campaign, where they are forced to actually listen to the people they serve, they will start to understand the effect their ridiculous legislation is having on our society.
Wednesday, 3 March 2010
Entering the conference season
After returning from a highly successful Sugro business convention and consequently looking at my diary for the next four months, it begins to hit home that we are entering the conference season for our trade channel. From a Sugro point of view it’s an excellent opportunity to talk to wholesalers and suppliers collectively, discuss strategic objectives and performance statistics and reinforce our mission statement.
The Sugro conference theme for this year is “Perfect Partners” - not a new speed dating service - but reinforcement that the success of all our businesses, whether supplier, wholesaler or retailer, is only as good as the partnerships we share. Principally this is about getting the products at the right price, with merchandised visibility to the consumer because you can’t sell anything if it’s not available or obscured from sale in some way.
I will tell you more about the Sugro conference in future blogs but, in the meantime, the conference season rolls on with the Today Group off to Madrid in the next seven days; the Federation of Wholesale Distributors (FWD) conference on 10th May; followed by the Sugro conference on 14th May; the Landmark conference at the end of the month in Dubrovnik and the Scottish Wholesale Association (SWA) conference on 18th June.
When all the conferences are finished, it will be interesting to establish the similarity of the message, because I believe the objective for all of these gatherings is ultimately the same - though they may be dressed differently. Let’s see how it progresses, I’m sure this will be the source of more blogs in the future.
The Sugro conference theme for this year is “Perfect Partners” - not a new speed dating service - but reinforcement that the success of all our businesses, whether supplier, wholesaler or retailer, is only as good as the partnerships we share. Principally this is about getting the products at the right price, with merchandised visibility to the consumer because you can’t sell anything if it’s not available or obscured from sale in some way.
I will tell you more about the Sugro conference in future blogs but, in the meantime, the conference season rolls on with the Today Group off to Madrid in the next seven days; the Federation of Wholesale Distributors (FWD) conference on 10th May; followed by the Sugro conference on 14th May; the Landmark conference at the end of the month in Dubrovnik and the Scottish Wholesale Association (SWA) conference on 18th June.
When all the conferences are finished, it will be interesting to establish the similarity of the message, because I believe the objective for all of these gatherings is ultimately the same - though they may be dressed differently. Let’s see how it progresses, I’m sure this will be the source of more blogs in the future.
Tuesday, 2 March 2010
Wednesday, 6 January 2010
Looking back...and forward
2009 was an exciting year in a number of different ways.
Firstly, in the early stages we saw a completely different economic situation which changed the reversal of fortune for many businesses in the UK. Interestingly enough, for many businesses the change of fortune was as a direct result of the incompetence of the banking industry in 2008 and the fact that they readdressed their own balance sheet structures by divesting themselves of liability. This meant that in many instances, businesses were asked to reapply for what was already an existing overdraft facility that some businesses only used periodically but was a strong buffer protecting liquidity. With businesses given no choice but to reapply, the inevitable happened and either the facilities were withdrawn or greatly reduced, but there was also a revisit of the charges applicable for such facilities. For those businesses that utilised the facility periodically, they continued to survive but in a more cautious way; for those who did utilise this facility, in some instances banks will have been a main contributor to those businesses closing.
In all of our industry, while the banks were divesting themselves of liability, our particular sector actually required greater finance as we saw our footfall in the stores increase quite dramatically due to the increase and regularity of small cash purchases. However, as the year progressed, we saw new product development and growth of volume. As a business we became very encouraged. We had a strength of performance backed up with supplier commitment and a strong front-of-house activity programme delivered by the Sugro wholesalers and, as the year rolled on, we very much reflected, if not over-performed, what was going on in our sector.
As an observation, it is unfortunate that many of the market research companies continued, throughout the whole of 2009, reporting that the independent sector had declined by 9%. This confused me greatly, especially as my colleagues on the FWD Council were also reporting growth within their businesses and, overall, the general reflection was that the independent sector was performing extremely well during the recession. So how the research companies could continue to show this negative result was baffling. So, Sugro finished the year trading in double digit growth and with very strong working relationships with its suppliers, wholesalers and members.
During 2009, Sugro also celebrated twenty five years as NWCL and this was a time for us to reflect, not only on the present, but an opportunity to reflect on the past and to review opportunities for the future. The celebrations took place in Cardiff at our Annual Conference and we presented a series of awards to individuals in gratitude for the work, the dedication and the commitment they have given to Sugro over the many years.
We presented two awards to suppliers. Firstly to Mr Barry Jackson of Cadbury for the hard work and dedication he has given to Sugro since he became the National Account Manager a number of years ago. He has communicated locally and nationally, worked with us and embraced many of the campaign activities, recognising the commercial opportunities for Cadbury, as well as for Sugro. This recognition is well deserved.
The second National Account Manager was Mr Tommy Dryhurst of Pepsico and, again, he has worked hard and campaigned and developed relationships amongst the wholesalers and central office, and is recognised within Sugro for his knowledge, comradeship and hard work. Once again, we recognised his contribution and rightly deserved it was.
We also presented an award to Mr Michael Clark of Andersons (Wholesale) Ltd in Manchester. Michael has been on the Board of Directors since 1998 and has worked tirelessly in making his contribution, views and influence felt within Sugro. I know I certainly appreciate the work that he has performed and I am sure he will continue to provide that level of contribution for the future and he was recognised for that contribution at our twenty fifth anniversary.
Sugro also recognised the excellent services that we have received from Paul Gawman, the owner of Time Events, the company that continues to organise conferences, conventions and many of our key events. Paul has always provided us with a five star professional service and all of our events are, and have always been, very successful. In addition, we recognised the marketing and design that Corner House performs for our promotional platform. Again, Sugro has been recognised for its professional approach to promotional marketing, and all forms of marketing, and Corner House have certainly played a key part in producing that and rightly deserved the recognition at our twenty fifth anniversary dinner.
Modesty forbids me from saying how wonderful, outstanding and handsome the final person is who was presented with an award but the Board felt that there was a need to recognise the contribution, hard work and the direction in which I have taken Sugro over the last ten years and I greatly appreciate that level of recognition, not only from the Board but also from all of the members.
We have also seen our Government continue to develop ways of making business within our sector more difficult. The debate around obesity; the threat of legislation with the final decision around cigarette display bans; the result of the competition commission and the supermarket reviews and the general reluctance that appears to revolve around the actions in curbing the multiples in the UK food and non-food market. MPs and Government show a drive for deterring the opportunities we hold.
2010, I believe, will be a year not only of political change, but also one that will demand operational, logistical and structural changes in the way that we generally conduct business. The constant alienation of the categories, whether it be carbonated drinks, crisps and snacks, confectionery, cigarettes and tobacco or beers, wines and spirits, every single one of these is fundamentally important to the business welfare of independent retailers throughout the country and yet, every single one of these categories is under attack in some way through Government departments. It was in 2009, and will continue to be so in 2010.
So finally, my review of 2009 is a positive one of good trading, excellent business growth and a strong overall performance for Sugro to spring board into 2010. However, when it comes to 2010, the resilience of the independent sector will continue to demonstrate its entrepreneurial spirit, despite the interference and the constant politics of negativity against our product ranges. It is fair to say that in the next few years our Government and legislation could do more damage in that short period of time than the multiples have in the last thirty five years.
Let us hope that the politicians’ wishes do not come true and that 2010 culls a large number of them so they at least realise that being expendable as a direct result of something that is not necessarily in your control is not a pleasant experience.
Philip Jenkins
6th January 2010
Firstly, in the early stages we saw a completely different economic situation which changed the reversal of fortune for many businesses in the UK. Interestingly enough, for many businesses the change of fortune was as a direct result of the incompetence of the banking industry in 2008 and the fact that they readdressed their own balance sheet structures by divesting themselves of liability. This meant that in many instances, businesses were asked to reapply for what was already an existing overdraft facility that some businesses only used periodically but was a strong buffer protecting liquidity. With businesses given no choice but to reapply, the inevitable happened and either the facilities were withdrawn or greatly reduced, but there was also a revisit of the charges applicable for such facilities. For those businesses that utilised the facility periodically, they continued to survive but in a more cautious way; for those who did utilise this facility, in some instances banks will have been a main contributor to those businesses closing.
In all of our industry, while the banks were divesting themselves of liability, our particular sector actually required greater finance as we saw our footfall in the stores increase quite dramatically due to the increase and regularity of small cash purchases. However, as the year progressed, we saw new product development and growth of volume. As a business we became very encouraged. We had a strength of performance backed up with supplier commitment and a strong front-of-house activity programme delivered by the Sugro wholesalers and, as the year rolled on, we very much reflected, if not over-performed, what was going on in our sector.
As an observation, it is unfortunate that many of the market research companies continued, throughout the whole of 2009, reporting that the independent sector had declined by 9%. This confused me greatly, especially as my colleagues on the FWD Council were also reporting growth within their businesses and, overall, the general reflection was that the independent sector was performing extremely well during the recession. So how the research companies could continue to show this negative result was baffling. So, Sugro finished the year trading in double digit growth and with very strong working relationships with its suppliers, wholesalers and members.
During 2009, Sugro also celebrated twenty five years as NWCL and this was a time for us to reflect, not only on the present, but an opportunity to reflect on the past and to review opportunities for the future. The celebrations took place in Cardiff at our Annual Conference and we presented a series of awards to individuals in gratitude for the work, the dedication and the commitment they have given to Sugro over the many years.
We presented two awards to suppliers. Firstly to Mr Barry Jackson of Cadbury for the hard work and dedication he has given to Sugro since he became the National Account Manager a number of years ago. He has communicated locally and nationally, worked with us and embraced many of the campaign activities, recognising the commercial opportunities for Cadbury, as well as for Sugro. This recognition is well deserved.
The second National Account Manager was Mr Tommy Dryhurst of Pepsico and, again, he has worked hard and campaigned and developed relationships amongst the wholesalers and central office, and is recognised within Sugro for his knowledge, comradeship and hard work. Once again, we recognised his contribution and rightly deserved it was.
We also presented an award to Mr Michael Clark of Andersons (Wholesale) Ltd in Manchester. Michael has been on the Board of Directors since 1998 and has worked tirelessly in making his contribution, views and influence felt within Sugro. I know I certainly appreciate the work that he has performed and I am sure he will continue to provide that level of contribution for the future and he was recognised for that contribution at our twenty fifth anniversary.
Sugro also recognised the excellent services that we have received from Paul Gawman, the owner of Time Events, the company that continues to organise conferences, conventions and many of our key events. Paul has always provided us with a five star professional service and all of our events are, and have always been, very successful. In addition, we recognised the marketing and design that Corner House performs for our promotional platform. Again, Sugro has been recognised for its professional approach to promotional marketing, and all forms of marketing, and Corner House have certainly played a key part in producing that and rightly deserved the recognition at our twenty fifth anniversary dinner.
Modesty forbids me from saying how wonderful, outstanding and handsome the final person is who was presented with an award but the Board felt that there was a need to recognise the contribution, hard work and the direction in which I have taken Sugro over the last ten years and I greatly appreciate that level of recognition, not only from the Board but also from all of the members.
We have also seen our Government continue to develop ways of making business within our sector more difficult. The debate around obesity; the threat of legislation with the final decision around cigarette display bans; the result of the competition commission and the supermarket reviews and the general reluctance that appears to revolve around the actions in curbing the multiples in the UK food and non-food market. MPs and Government show a drive for deterring the opportunities we hold.
2010, I believe, will be a year not only of political change, but also one that will demand operational, logistical and structural changes in the way that we generally conduct business. The constant alienation of the categories, whether it be carbonated drinks, crisps and snacks, confectionery, cigarettes and tobacco or beers, wines and spirits, every single one of these is fundamentally important to the business welfare of independent retailers throughout the country and yet, every single one of these categories is under attack in some way through Government departments. It was in 2009, and will continue to be so in 2010.
So finally, my review of 2009 is a positive one of good trading, excellent business growth and a strong overall performance for Sugro to spring board into 2010. However, when it comes to 2010, the resilience of the independent sector will continue to demonstrate its entrepreneurial spirit, despite the interference and the constant politics of negativity against our product ranges. It is fair to say that in the next few years our Government and legislation could do more damage in that short period of time than the multiples have in the last thirty five years.
Let us hope that the politicians’ wishes do not come true and that 2010 culls a large number of them so they at least realise that being expendable as a direct result of something that is not necessarily in your control is not a pleasant experience.
Philip Jenkins
6th January 2010
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