RURAL RETAILER SPRING 2013

RuralRetailer

Issue 21 l Spring 2013www.ruralshops.org.uk

■ Rural retailers hitLottery jackpot

■ The Virtual HighStreet

■ Payroll changes:RTI arrives

The Journal of the RuralShops Alliance

2 RuralRetailer ● Spring 2013 ● Issue 21

for moreinformation and

news...

In this issue...

Cover photo:Abdul Mohammed,

Londis, New Pitsligo,Aberdeenshire

Your contacts...

RuralRetailer ● Published by The Rural Shops Alliance. ● Printed by: Russell Press, Nottingham. ● Design: Kavita Graphics.

Contents...

● Rural Shops AllianceEgdon Hall, Lynch Lane,Weymouth, Dorset DT4 9DN

● Tel: 01305 752044● Fax: 01305 772949● E-mail: [email protected]● Website: www.ruralshops.org.uk

● In My Opinion, By RSA Chief Executive● Our Partners● Your Action Checklist...● West End Stores: Sacrificing Dad’s Rose Garden● Payroll - Important changes: Real Time Information● An aging population: How should rural retailers respond?● A Message from Priti Patel MP● CCTV - two useful publications● Underinsurance● RSA Views: New code should end ‘tick box’ regulation of age

restricted products; Private members Bill to Stop EnergyContract Rollovers; ACAS Consultation on Draft Code ofPractice on Extended Right Flexible Working; SelectCommittee Inquiry into the Retail Sector; Ready for Aging?

● Camelot: Rural Retailers hit the jackpot● Coffee Shops in Rural Stores: Goldmine of Millstone?● Gluten Free Products● Virtual High Street: Two Companies Helping Independent

Stores Provide Home Delivery

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1012131314 15

19222527

In my Opinion...I can only stand in awe at how effective the “Hacked Off” campaign hasbeen. In a few short months, Hugh Grant and other luvvies havemanaged to persuade Ed Milliband and Nick Clegg to casually set asideelements of free speech in this country, won in hard-fought battlesover centuries. At the time of writing, even small publications such asRural Retailer would be caught up in the proposed press regulations.

Producing Rural Retailer is just one part of oursupport for shopkeepers. We are notprofessional publishers. We try to write articlesas if we were face-to-face with a shopkeeper.Whilst keeping a wary eye on the laws of libel(some of the strongest in the world), if we thinksomething is nonsense, we say so. We certainlycannot afford to have our copy checked by alawyer charging us silly pounds per hour. If weend up with a constant threat of “exemplarydamages”, which would bankrupt the RSA, thenquite simply Rural Retailer will become a lessinteresting and useful read.

The horsemeat scandal reminds me of a casefaced by a rural butcher. Asked by anundercover trading standards officer for someminced lamb, he used his mincing machinewithout cleaning out previous traces of beef. Forthis heinous crime, this upstanding familybutcher was prosecuted and fined. We nowhave a situation where large companies havecommitted millions of far worse “crimes”, withnot a mention of a pending prosecution. Therereally is one law for big companies, one for thesmall guy. However, on the plus side, thisscandal has provided a massive opportunity forbutchers and other shops selling local meats,who are able to reassure worried customers thattheir beef really did moo rather than neigh.

Visiting rural shops has been a somewhatdispiriting experience of late. Many shopkeepers

are reporting poor sales in January andFebruary, with only a modest pickup in March.We have no magic wand to solve the problembut in this edition of Rural Retailer we haveincluded a couple of ideas that may just helpsome retailers develop new sources of income.

Rural Retailer has been published in its currentform for about five years. Feedback from readershas been overwhelmingly positive but with thisedition we have tried to provide a slightly fresher,more modern format. Do let us know what youthink of it and, as always, do send us any ideasyou may have for future articles.

Kenneth ParsonsRSA Chief Executive

Issue 21 ● Spring 2013 ● RuralRetailer 3


Retail Services Team Credit and debit cardacceptance service

Supply wide range of cards with great service

H&S and firerisk support

EPos systems designed for independents

Excellent cover andcompetitive rates for rural retailers

Identity cards for all ages

Buying and selling retail businesses

Electronic security systems

Free help to reduceelectricity bills

To obtain further information on any of thesecompanies, please contact the RSA [email protected] or phone 01305 752044

Our Partners...

Wide variety of bagspersonalised with your logo

Your Action Checklist for this issue...1. MAKE SURE YOU ARE READY FOR

RTI PAYROLL REPORTING p

3. REVIEW STORE’S APPROACH TO ELDERLY CUSTOMERS p

4. REVIEW INSURANCE COVER p

p6. RESPOND TO RSA

HOME DELIVERY ENQUIRY

SEEPAGE 10

2. CONSIDER STOCKING GLUTEN FREE RANGES p

SEE PAGE 25

SEEPAGE 12

SEE PAGE 14

SEE PAGE 17

SEEBELOWp

In this edition of Rural Retailer, we havehighlighted two companies trying to help smallretailers provide this type of service, byproviding website, delivery mechanics andmarketing materials.

We would be very interested in the views of asmany retailers as possible on:

● What tools or help you would need if youwere to set up or subscribe to such a service for your customers?

The RSA is often asked about independentshops setting up their own home deliveryservice. In practice, this is very difficult forone shop to achieve, and in the past wehave usually advised against doing it.

Home Deliveries

5. RESPOND TO SELECT COMMITTEE REVIEW OF RETAIL


● How would an ideal system work?● How interested are you in offering such a

service?

● Please e-mail your comments and contactdetails to [email protected] and we will get back to you with our findings.

Supermarket home deliveries are a common sight in villages

When Marjorie Wargen and her sisterDorothy ‘Aunty Doll’ Hoyes first opened the West End Stores in Fownhope,Herefordshire in 1969, there was barelyroom in the tiny shop to swing theproverbial cat.

“We knew the business wouldn’t survive withouta huge investment to expand the shop,” recallsNigel, who had met Jill when they were bothworking for the same large supermarket.

“It was tricky, but we decided it was all ornothing. We ploughed in every penny of oursavings and took out a very large bank loan ontop to buy the shop, extend it and build a carpark – over my dad’s beloved rose garden!”says Nigel. “He was OK about it though; myparents knew it was vital to invest in thebusiness to make it profitable.”

Nigel and Jill’s confidence and hard work hascertainly paid off in the ensuing 25 years, but it

West End Stores...


Sacrificing Dad’s

At the time, the small confectioners andnewsagent was one of three shops in the ruralvillage where the sisters were born. But after 20years behind the (small) counter, it all got a bittoo much for them and in the late 1980s,Marjorie’s son Nigel and his wife Jill moved backto Fownhope to step into the breach. But theyhad some tough decisions to make.

Nigel and Jill

was not an easy path, as Jill remembers: “I wasthe stock controller at the supermarket, so I wasconfident I would be able to use my skills in thenew expanded village shop. But the timing wasa nightmare; we had just moved to Fownhope tooversee all the building work when I found out Iwas pregnant!”

The existing tiny shop kept on trading whilebuilding work continued on all sides.“Thankfully my mother-in-law and Auntie Dollwere still running the shop while we were livingupstairs with the new baby, and there waschaos all around. They were like lionesses,fiercely protective of me, and wouldn’t letanyone bother us,” she recalls fondly.

When the new ‘big shop’ finally opened forbusiness in 1989, Marjorie Wargen decided toswap working the till for a little child-mindingfor her grandson, and Jill and Nigel were able tobring the full force of their previoussupermarket experience to bear on the new,expanding business. But the scale took a bit ofgetting used to.

“I was used to ordering by pallet loads, now Ihad just single cases,” Jill recalls. “Although Iknew what sold in the supermarket, it took awhile to adjust to what our village customersand passing trade wanted. We soon learned thatpeople wanted the named brands rather thanthe cheaper alternatives.”

By 1997, West End Stores was the only shop inthe village, making the most of its position onthe main route between Hereford and Ross-on-Wye and eight miles from the nearest town.

It wasn’t until new electronic tills were installedin 2000 that Auntie Doll finally hung up herpinny, at the grand age of 70. Now, 13 yearslater, the shop employs 12 part time staff andone full timer, with 40 per cent of businesscoming from passing trade. The current store isabout five times the size of the original, boasting

By Beth Whittaker


Rose GardenToday a significant part of the original shop space is taken up with amodern Cuisine de France unit

Although members of Londis, Nigel and Jill have retained traditionalstore fascias

1,200 sq. ft. of retail space, a full Post Officeservice, car park and 600 sq. ft. of warehousestorage, thanks to Nigel and Jill’s forwardplanning and continued investment over theyears.

It’s been a very successful partnership, withNigel and Jill working to their strengths.Turnover has significantly increased from about£1,000 to a healthy £15,500 per week.

“You can’t rest on your laurels,” advises Nigel.“You’ve got to keep investing to make sureyou’re offering the best; for example, we’ve justinstalled four new chillers to extend our freshfood range. But for us, over all these years, it’snot just been about the business, it’s aboutbeing part of a great community.”

The couple are planning to retire, but it will be ahard decision, particularly for Jill. “We’ve seengenerations grow up, and because my mother-in-law was born here and our two boys wereborn here, we really feel part of the fabric of thevillage,” she says.


“We supported local suppliers long before it wasfashionable because we believe it’s important toput something back. We get our meat from thelocal butchers; a local couple supplies us withhome-baked pies and tarts, while another makesflans and cakes.

“One local chap who has disabilities supplies uswith bird food, and we also stock local beers,ciders, and apple juice. We also pride ourselveson our wine selection.”

West End Stores...continued

The massive extensions are obvious. The cars are parked on the original rose bed!


The couples’ generosity towards good causes isalso well known. “Everyone knows we’re happyto donate raffle prizes - that’s part of whatrunning a village shop is all about,” declares Jill.“We helped raise £2,500 for the local hospicethanks to the generosity of our lovely customers,and another £900 for Help for Heroes.”

Right from the start, the Wargens have usedLondis as their supplier. “We would not havetime to use a cash and carry, and Londis havebeen great,” said Jill. “We were the first Londisstore in this part of the country, and we’ve beenhappy to stick with them.”

With the newspaper delivery rounds stillclocking up five miles a day, the van alsodelivers weekly groceries to around 12 elderlycustomers who find it difficult to get into theshop. The driver even puts the food away forthe customers, helping by rotating fresh goodsin their fridges.

Although there is an aging population in thevillage, the thriving primary school ensures

there is a good balance, along with the healthypassing trade. The store is open from 7am to8pm during the week.

“It will be hard to let the shop go, even thoughwe’ll still be in walking distance,” adds Nigel.

“We’ve spent so much of our lives building thisthriving business we’d want to be sure we left itin safe hands, for the sake of the village. Butwe’ll have to stop ourselves from interfering!”

The RSA viewThis store shows that it is possible to create asuccessful business in a relatively small community. It ishard to underestimate the courage and commitmentneeded to expand the premises by so much but the endresult speaks for itself and was a key factor in theshop’s success.

This, of course, was only possible because the land wasavailable. Jill and Nigel’s multiple retailing backgroundhas obviously been another key factor in their success.They have continued to develop the business throughon-going investment. We can only echo Nigel'scomments, hoping that whoever buys the business hasthe drive and skills to continue to develop it into the21st-century.

Recently installed chillers with energy efficient doors

The store has an open, spacious feel

HMRC will be going live in April2013 with Real Time Information(RTI). By October, all employers,whatever their size, will have to usethis system. Even if you only employone paperboy for a couple of hours aweek, it will affect you. Up untilOctober, HMRC will allow businesseswith less than 50 employees to sendthe required information by the endof their tax month.

RTI is a new way of reporting pay,tax and national insurancecontribution details to HMRC.Currently, this is carried out throughon end of year P35/P14/p38A returns.Because this reporting takes placeonly once a year, many businessesuse their accountant to help submit it.In future, HMRC require all employersto send this data online, on or beforethe pay date. In practice, this meansweekly, requiring the employer tohave appropriate computer softwareand to submit the data themselves.

RTI requires the employer to providethe employees full name, sex and dateof birth. Their address will be neededfor new starters but not for existingemployees. National Insurancenumber should be provided but is notneeded, for example, if the employeeis under 16. When you take on a newemployee, it is vital that they provide aP 45 from their previous employment

or else that you submit a P46 form.This applies even to temporary staffand you must do it before any wagesare paid – without this paperwork, theemployer will be liable for anyunderpayment of tax. The concept ofcasual labour as such is not recognisedby the new system. Newsagentsmaking payments to paperboys arenot exempt. Even if you only employyour spouse, RTI applies.

Businesses that use the services of aspecialist agency or bookkeeper forpayroll administration should findthat they will be makingarrangements to comply. If youyourself already use a softwarepackage to provide financial controlsand payroll, then you should expectthe supplier to update it accordingly.Many suppliers are doing this for free,although we have heard of someoutrageous demands by somesoftware suppliers for additionalcharges. Sage Instant Accounts, forexample, are apparently charging£150 for this upgrade.

Clearly a number of small businesseswill need to use payroll software,approved by HMRC, for the first time.If you employ nine people or fewer(and although it sounds a largenumber, even small businesses canbe employing this number of part-timers and newspaper deliverers)


The governmenthas made much

of their Red TapeChallenge,

designed to doaway with

unnecessarylaws and to

make life easierfor businesses.

And then HMRCcomes along towreck the goodintentions with

one massivechange.

Suddenly wehave metre uponmetre of tape, alla bright crimson

red, wrappingitself round the

computerscreens on

hundreds ofthousands of

small businesses.

PAYROLL REPORTINGAll retailers must be aware of this change

Real Time Information...


IF YOU EMPLOYSOMEBODY ELSE TO ADMINISTERYOUR PAYROLLTalk to them to ensurethat they are ready forRTI – remember, it isyour responsibility tocomply even ifsomebody else doesthe administration onyour behalf.

IF YOU USEPROPRIETARYPAYROLL SOFTWAREMake sure yoursoftware supplier willbe providing updatesthat comply withHMRC requirementsin good time to meetHMRC deadlines

IF YOU DO NOTHAVE APPROPRIATESOFTWAREAcquire the necessarysoftware. HMRCwebsite has a list ofsoftware thatcomplies with theirrequirements

MAKE SURE YOU HAVE THENECESSARYINFORMATION ONALL EMPLOYEESWELL BEFORE YOURIMPLEMENTATIONDATEFor more information,see: www .hmrc.gov.uk/payerti/getting -started/index.htm

FACES UPHEAVAL

then you can obtain this software forfree. Above this number, then thechances are you will have to pay. Afull list of HMRC approved softwaresuppliers can be found on theirwebsite, www.hmrc.gov.uk

As so often happens, a change isbeing made that large companieswith specialist payroll departmentsand sophisticated software can dealwith fairly easily, but which can be anightmare for small businesses. Thereare some retailers who currently donot even own a computer, let aloneaccess the Internet. We certainlyknow a lot of small retailers withoutan e-mail address.

This RTI system will generate mind –boggling amounts of data on a weeklybasis. We do hope that the HMRCcomputer systems are robust enoughto cope. Even at this very late stage,we would hope that HMRC wouldunderstand the difficulties ofproviding weekly information on part-time and casual staff working a fewhours a week on irregular shiftpatterns, plus the nonsense of under16's earning small amounts of moneydelivering newspapers being caughtup in this bureaucratic system.

Even at this very late stage, the RSAis calling upon HMRC to address

these very real concerns and to makethe system less onorous for smallemployers.

Example, just excluding under 16'searning less than the tax thresholdfrom the system would savesignificant administration withoutaffecting the tax take in the slightest.

One of our retail members summedit up very neatly,

“Thinking about complying with RTIis a real worry for us. We pay someof our staff at the end of their shiftand others at the end of the week andeven one at the end of the month, butwe have no idea from one week to thenext what their hours will be. HMRChave designed this system with onlytheir cosy monthly salary BACS-typepayroll in mind and have ignored thehuge numbers of retail and other staffwho are paid irregularly, and smallbusinesses who only have one person doing the payroll. It will be aworry when we are away and there'sno-one to do the payroll - I really don't know what we'll dowhen that happens. It's very unfairof HMRC to bring in this system andit will help no-one but themselves,that's if their computers can copewith the enormous amount ofinformation they'll be getting”.

When we visit rural shops, we always ask,“What sort of village is it, what sort ofpeople live here?” The answer is very oftenthat it is a retirement village, with a highproportion of elderly residents. However,when we consult the national census, thevillage actually has a very typical agepattern.

than younger people. Research from Age UKfound that one third of over 65 use their localconvenience store every single day.

Indeed, it is no exaggeration that in some casesit is only the presence of a local shop thatenables them to stay in their own home ratherthan move to retirement accommodation. In2010, people over the age of 65 spent £109billion on food shopping. Older consumers are a major and growing part of the total market.

At the RSA’s last National Meeting, we askedthose present (a mix of representatives fromsuppliers, rural community councils, localgovernment and rural retailers) to think abouthow shopkeepers should respond to the trendtowards an ageing population.

The points that came out of the discussionswere:

● There is a need for an online shoppingprocess available to independent rural shops.This might involve local joint on-linemarketing of rural shops, combined with co-operation on deliveries to customers.

● Home delivery and/or click and collect. Thiscould include products chosen in shop by theindividual customer, and then delivered laterthat day. The process does not need to becomputer-based.

● Stock small pack sizes for one-personhouseholds and market them well.

● Although many staff are very good, trainingcan help younger members of staff to helpelderly customers without seeming to bepatronising.

RSA National Meeting Debate


An ageing population: howshould rural retailers respond?

However, the shopkeepers’ answer is notsurprising. Retired people often make up a highproportion of customers. Put another way,retired people depend far more on local shops

Retailers should be at the centre of ruralcommunities and from my own family’sbackground running small shops I know the vitalcontribution they make. Through the hard work,graft and determination of shopkeepers, localvillages throughout the country are able toaccess a range of vital goods and services.

Rural communities were hit hard by the lastLabour Government’s urban-centric agenda.Thousands of shops and Post Offices disappearedfrom villages leaving communities worse off.When visiting villages in my constituency andother rural areas, I see at first hand the impact ofthis appalling legacy. Empty premises andboarded up rural shops not only represent apersonal loss for the people who used to run thosebusinesses but scar the communities they onceserved. I therefore pay tribute to theentrepreneurial spirit of those who came throughthis bloodbath and are continuing to support localjobs. Rural shops are essential to the communitiesthey serve and should be protected. By contrast tothe attitude of the last Government who stood byas rural businesses closed, this Government hasintroduced new laws to safeguard assets ofcommunity value, like village shops. Reforms tobusiness rates should also empower local

councils to do more to helprural communities by cuttingtheir business rates bills. Ihope local councils willprioritise offering ratereductions to rural shops tohelp them as they face thechallenge of coping with rising costs, the economic downturn, changingshopping habits and increased competition.

Living and working in rural areas is anaspiration that many people have and owning a small shop is one way to fulfil this ambition.As the Chair of the All Party Parliamentary Small Shops’ Group I welcome suggestions andideas on what further action can be taken toenable more people to run successful shops inrural communities, which I can raise withGovernment Ministers.


A message from...

PRITI PATEL MP Member of Parliament for Witham, Chair of theAll Party Parliamentary Small Shops Group

The RSA viewAs the chair of the all-party Parliamentary small shopsgroup, Priti Patel MP is in an excellent position to bringissues to the attention of ministers. If any rural retailershave issues that would affect our sector generally, pleasesend them through to the RSA and we will coordinate theinformation. If it is an issue of particular concern to yourshop only, then you should contact your own MP.

The Home Office has recently produced a leaflet onthe use of CCTV technology. This is a very usefulintroduction of benefit to both existing and potentialusers. It outlines the benefits, gives useful guidanceon specifications and operation of CCTV.

A longer read is another Home Office publication on aSurveillance Camera Code of Practice. Retailers are notlegally bound to follow the code but you are encouraged

to do so. The Code provides in its 12 guiding principlessome sensible safeguards. The RSA would recommendthat all retailers look at both these two publications:

● http://www.homeoffice.gov.uk/publications/science/cast/crime-prev-community-safety/cctv-small-business-guidance?view=Binary

● http://www.homeoffice.gov.uk/publications/about-us/ consultations/surveillance-camera-consultation/code-of-practice?view=Binary

CCTV - TWO USEFUL PUBLICATIONS

claim. This means the £3000 loss is reduced to£1,500 paid out, less excess. If a ram raid wasemployed to break in and steal the cigarettes,and (typically) £12,000 of damage was done tothe premises.

You will also only receive 50% of that element –and any other part of the claim, includingbusiness interruption. That is another £6,000minimum shortfall you will have to find fromother funds. So, immediately you can see thefew pounds you saved on cutting your premiummeans you would in this case, be at least £7,500worse off.

Is it worth the gamble? NO.It is not just your business you are insuring – it is your living. Please do not put your future injeopardy by cutting corners on your insurance – it can backfire on you.

● Bluefin are providers of the Rural ShopsAlliance shop insurance scheme

● If you have any queries about your insurancelevels then speak to the Bluefin team on 08009047009, or email [email protected]


What are the consequences if I do that? Thechance of being found out is remote, and it willonly be if I need to make a claim.

WRONG. WRONG. WRONGUnderinsurance can have disastrous results, andeven wipe out your business. Firstly, insurershave a good knowledge of your market, and canspot if your values are out of line with the sizeand type of store you operate. If you have aclaim, and they think you are not insured for thetrue values, they will check and discover theactual values very quickly.

If you are underinsured, this is what willhappen, with every insurer. There is a built inallowance with policies, to allow for normaltrade fluctuations, but, let’s suppose you havecigarettes stolen. You have reduced cigarettestock cover to £4,000, to save money, butactually have £8,000 in stock. Cigarettes worth£3,000 at cost are stolen, and £12,000 damageis done to the building following the ram raid.

On the above example you would beunderinsured, and only receive a claimsettlement for the ratio of actual to insuredstock. So, with £8000 cigarettes in stock, butonly £4000 declared you would be 50%underinsured, and only receive 50% of your

Underinsurance... by Ian Hughes of Bluefin

Underinsurance...So, times are hard, the recession is bitingdeep, and profitable trade is harder toachieve. What can I cut back on? Ah,insurance. I will reduce the figures I havegiven my broker, to reduce my premium. No one will notice it is lower than it really is.

RSAViews

It should make regulation of sales of products,including alcoholic drinks and cigarettes, moreconsistent and allow local authorities to focusresources on dealing with rogue traders.

This Code is part of the Government compliance andenforcement activities designed to deliver improvedoutcomes for young people, local communities andbusinesses, coupled with a drive to eliminatebureaucracy. Practices such as routine test purchasing,not informing retailers if they have passed or failed atest purchase, and targeting businesses without properevidence that they are selling products to under-agecustomers, will all be abolished. The Code providesguidance to encourage regulators to give advice in clear,accessible language, to ensure legal requirements areexplained clearly and fully, to direct additional supporttowards new businesses, and to work closely with otherlocal initiatives.

Business Minister Michael Fallon explained, “Businessestell us that over-complicated regulation of age restrictedproducts is not protecting young people effectively. Thisimportant Code recognises the vital role of the businesscommunity in upholding standards, while giving local

authorities more freedom to clamp down on those thatbreak the law. Making responsible retailers part of thesolution will keep these products out of the wrong handsand help boost local economies."

According to the Code, local authorities should have aclear view of their target outcomes and ensure thatresources are directed towards these priority risks.Authorities should undertake activities that deliver thebest outcomes for young people, local communities andbusinesses. They should prioritise their support towardsthose businesses least likely to have robust compliancearrangements already in place. They should collaboratewith other agencies, such as the police. And theirpolicies on compliance and enforcement should beeasily accessible, e.g. on their website.

Of considerable importance to retailers are the rules onwhen an authority carries out checks on compliance.The Code says that these should be targeted on thebasis of a risk assessment of the businesses involved.This will include an evaluation of the business’s existingsystems and management’s ability to comply with thelaw. An authority should ensure that its response tocomplaints or intelligence is proportionate and beforeconducting covert test purchasing, it should considerdiscussing complaints with the business first andworking in cooperation with the manager.

Spring 2013

New code should end ‘tick box’regulation of age restricted productsThe Department for Business Innovation &Skills has recently published a new Code ofPractice on Age Restricted Products. This isintended to strengthen the protection ofyoung people and reduce red tape.

continued on following page...

The Green Party MP, CarolineLucas, has introduced a private members bill toaddress the problem ofexpensive energy rollovercontracts for small businesses.

Rollover contracts are asignificant bone of contentionwith small retailers, with energysuppliers charging very high tariffs. Currently rollovercontracts forced onto micro-businesses have a limit of 12 months.

Caroline Lucas explains her Bill, “it's deeply unfair that,while micro businesses often consume products andservices in a similar way to domestic consumers, theydo not enjoy the same level of regulatory protection. Myprivate members bill is about asking the government toact to ensure the energy regulator finally delivers on itspromise – and stands up for the U.K.'s micro-businesses”. The draft bill would limit rollover contractsto 30 days for micro-businesses. This would ensure thata business’s failure to renew a contract would not leaveit without power, but at the same time would not then tieit in to a year of expensive energy.

The RSA would certainly support the reform of thisaspect of the energy market. The Bill has received itsfirst reading (a formality) and is set to receive a secondreading in April. Private members bills are unlikely topass into law but often act as a catalyst for governmentaction. We would suggest that retailers who support theproposal contact their own MPs and ask them tosupport Caroline Lucas's Bill.

● See: http://www.publications.parliament.uk/pa/bills/cbill/2012-2013/0046/cbill_2012-20130046_en_2.htm#l1g1

PRIVATE MEMBERSBILL TO STOP ENERGYCONTRACT ROLLOVERS

RSAViews

The Code provides exhaustive guidance on conductingtest purchases. Businesses should be informed quicklyof test results, whether they failed or passed. Inresponding to non-compliance, the primary focus willusually be on constructive dialogue with the business todecide the changes needed, although this may beinhibited where criminal prosecution is beingconsidered. The enforcing authority should respond tonon-compliance with an approach that:

● Changes the behaviour of the offender and secures on-going compliance

● Eliminates any financial gain or benefit from non-compliance

● Is responsive when action is being considered against a particular offender

● Acts in a way proportionate to the nature of the offence

● Aims to restore the harm caused by regulatory non-compliance, where appropriate.

Applied properly, the RSA believes that the Code shouldencourage local authorities to work with responsibleretailers to prevent underage sales. We wouldemphasise that this is something the vast majority ofretailers do want to achieve. In the past, some zealousenforcement officers have provoked considerablebitterness, when otherwise law-abiding retailers havebeen hauled over the coals when sting operations havetrapped junior members of staff into breaking the law.This is a very short and selective summary of a 31 pagereport and retailers selling age restricted ranges arestrongly advised to read the full document.

● See: http://www.bis.gov.uk/assets/brdo/docs/publications-2013/13-537-code-of-practice-age -restricted-products.pdf

...continued from previous page...

RSAViews

In November 2012 the Government's announcedproposals to extend the right to request flexibleworking to all employees after they have worked for26 weeks. Employers are obliged to consider allrequests in a reasonable manner.

The current statutory procedure will be repealed and the Government has asked Acas to produce a Code of Practice to help businesses manage this newextended right.

Acas is seeking views from employees and employers,particularly small businesses, on a draft of the proposedCode. This draft Code does offer short, practical advicefor employers and is commendably easy to understand.This brevity may prove to be a drawback when it istaken into account by Employment Tribunals.

The main points are:

The starting presumption is that requests will begranted unless there are good reasons to refuse.Acceptable reasons are;● Additional costs● Inability to reorganise the work● Inability to recruit additional staff● Adverse effect on performance or meeting

customer demand● Insufficient work when the employee wants to attend.● A planned structural change to the business.

Consider the request carefully and weigh up the benefitsfor the employee and the business against any costs.You must not discriminate against the employee. Flexible working covers a wide range of arrangements.These can include:● Part-time working● Flexi-time (employees work a standard core time but

can vary start and finish times within agreed limits)● Compressed hours (employees work their contracted

hours in fewer working days)

● Homeworking● Annualised hours (employee works an agreed

number of hours per year)● Term-time working● Structured time off in lieu (employees work longer in

busy periods and less at slack times)● Job sharing

Chair of Acas Ed Sweeney said: "This draft Code buildson our knowledge and expertise across all workplaceissues. It will make it easier for employers to be fair inconsidering requests to work flexibly which helps tomaintain good working relationships and minimisediscrimination. We're very keen to hear views on thedraft Code from anyone who has an interest in flexibleworking."

In practice, at the RSA we have found that smallshopkeepers, working alongside their employees, oftenfind it difficult to refuse requests for particular patternsof working even if this is not ideal for the business.Rural retailers have been doing this long beforelegislation was brought in. However, it is a fact thatmultiple retailers have higher staff productivity thanmost independents, one of the factors in theirprofitability. There is a balance to be drawn between theneeds of the business and the desires of the employeeand in some cases the factors listed above mean that arequest has to be turned down. There is no point staffmanning tills if there are no customers. If the big stockorder arrives on a Tuesday morning, that is when youneed staff to put it away. Retail is an industry whereflexible working can be quite difficult to offer employees.

● The draft code can be viewed at:http://www.acas.org.uk/media/pdf/2/r/Consultation_draft_COP_FW.pdf

The consultation closes on 20 May 2013. Responsescan be submitted by email or letter - email address [email protected].

ACAS CONSULTATION ON A DRAFT CODE OF PRACTICE ONTHE EXTENDED RIGHT TO REQUEST FLEXIBLE WORKING

The Business, Innovation and Skills Select Committeehas announced a new inquiry into the UK RetailSector. There is a Commons Select Committee foreach government department, examining threeaspects: spending, policies and administration. Theyare made up of MPs, who decide upon the line ofinquiry and then gather written and oral evidence.Findings are reported to the Commons, and thegovernment then usually has 60 days to reply to theirrecommendations.

The committee will be looking at:● Implementation of the Department’s action points

contained in their Retail Sector Strategy Document of October 2012

● Progress made in implementing therecommendations of the Portas Review

● The impact of on-line sales and direct sales on High

Street retailers● The skills needed for a successful sector● The regulations and costs affecting the sector

The deadline for the submission of written evidence tothe Committee is Monday 15 April 2013, which meansthat many retailers will not have received this journal intime to respond. The RSA will obviously be talking to asmany retailers as possible before we send in ourevidence.It is obviously a positive move that the Committee islooking into the sector and we will try to ensure that theneeds of retailers in smaller rural locations are not lostamidst the problems facing major High Streets.

● The BIS strategy document can be found here:http://www.bis.gov.uk/assets/BISCore/business-sectors/docs/b/12-1197-bis-retail-strategy.pdf

SELECT COMMITTEE INQUIRY INTO THE RETAIL SECTOR

RSAViews

A House of Lords Select Committee has recentlyproduced a report, “Ready for Aging?” A key aspect ofthis was the desirability of supporting older people intheir own homes for as long as possible.

Key projections about ageing in this report include:

● There will be over 50% more people aged 65 andover in England in 2030 compared with 2010.

● There will be double the number of people aged 85and over in England in 2030 compared with 2010.

The report covers a wide range of topics includingpensions and savings, health and social care andhousing. It even finds space to mention the importanceof “simple aids devices such as easy-to-lift kettles andeasy-to-use tin openers”. But no mention of local shops.

Bizarrely, the report does not recognise the vitalimportance of local shops to helping the elderly remain

living in their own homes. It is no exaggeration to saythat in both urban and rural locations, having a nearbyshop is crucial. In the past, the social benefits of ruralshops have been recognised through support at bothnational and local government levels. Unfortunately localgovernment support has been steadily eroded by budgetconstraints, whilst nationally the community importanceof rural shops needs to be far more firmly on theagenda.

● The full report can be seen at: http://www.publications.parliament.uk/pa/ld201213/ldselect/ldpublic/140/140.pdf

READY FOR AGEING?

Camelot...


We have also been genuinely pleased by thespeed of implementation of the programme.This was really quite remarkable – just a fewweeks after the announcement it seemed thatnearly every shop the RSA visited had a Camelotrep already there measuring up for a newterminal, or at the very least, an owner reallyexcited at the prospect of being able at last tooffer the National Lottery to their customers!

Significantly, up to 75% of the 8,000 newretailers are independent outlets and around halfof the new terminals have been placed in ruralareas and Post Offices.

As operator of The UK National Lottery, one ofCamelot’s key objectives is to maximise returnsto National Lottery Good Causes, whilst ensuringthat lottery products are sold in a socially-responsible way. And with over 70% of adultsplaying The National Lottery, the brand has

About a year ago, Camelot announced plansto expand the number of National Lotteryoutlets by a further 8,000. This wasexciting news for the RSA, given thenumber of our members who wanted tooffer the Lottery but had been unable to geta terminal. Since then, we have beenimpressed by the sophisticated computermapping techniques that Camelot has usedto identify the areas of the UK with themaximum level of untapped demand.

greater reach than any other fast-movingconsumer goods brand in the UK.

You might think, as online shopping becomesmore and more popular, that people would bemoving away from buying lottery tickets in-store. However, retail still accounts for almost85% of The National Lottery’s sales – and willcontinue to be the largest sales channel foryears to come. In fact, Camelot’s comprehensiveprogramme of investment, training and supportfor its retail partners succeeded in growing totalin-store sales by over 9% to a record £5,486million in 2011/12.

Camelot now works with over 36,500 retailersacross the UK, with 7,500 of these havingbecome National Lottery retailers only in the last12 months. Camelot believes that this multi-million pound investment will enable it, over thenext ten years, to deliver an additional £1.2billion for the National Lottery Good Causes aswell as generating an extra £540 million for the

Rural Retailers hit the jackpot

Camelot...continued


Exchequer through Lottery Duty, making in total£1.7 billion in extra lottery funding to society by2023.

And of course this programme should also begreat news for those thousands of stores aroundthe UK that now have a National Lotteryterminal. The most obvious benefit is of coursethe commissions that retailers earn for selling

tickets and scratchcards, or paying out prizes.However, the main potential lies in the way thathaving the National Lottery brings additionalcustomers and extra business into the store.Here it is down to the retailer to use themarketing materials supplied by Camelot as abasis for their own promotional programme andthen to take full advantage of this greatopportunity to generate extra shop sales.

been in the village for decades, Abdul and hisfamily have completely modernised it. TheirNational Lottery terminal was installed inOctober 2012.

Although footfall had been strong in Abdul’soutlet – with around 240 customers per day –it has increased by nearly 20% since thelottery installation, and customers aregenuinely excited about the new offering.Abdul has built on this by further promotingThe National Lottery in a number of ways,including leafleting the village twice, exhibitingposters in his existing A-frame sign andinvesting in an in-store banner.

And for special events, such as Rollover draws,Abdul really goes the extra mile to bring anexciting atmosphere to the store, byprominently displaying Camelot showmaterials, asking customers what they woulddo if they won and wishing every player ‘goodluck’ after their purchase.

Abdul says: “Having The National Lottery in-store is a two-way partnership. It has led tohuge benefits in footfall and profits but it alsogives me great satisfaction to know that, everytime we sell a ticket or scratchcard, it is notjust about us or the winner – we are alsocontributing to National Lottery Good Causes.”

Abdul Mohammed, Londis, New Pitsligo, Aberdeenshire

Abdul and his family bought their shop in NewPitsligo (population: approx. 1,000) 18 monthsago, having run shops elsewhere in Scotlandfor over 35 years. Although the shop itself has


flyers around the area. Since the installation,there has been a definite surge in footfall andnet turnover has increased by 23%.

Sarah says: “We are very grateful for Camelotgiving us the lottery – it has been like mannafrom heaven. It has made a huge difference tonot only the store but the village as a whole.”

Andy & Sarah Fryatt, Woolsery GeneralStores, Lower Town, Woolfardisworthy,Bideford, Devon

The Fryatts have been running the Post Officein Woolfardisworthy (population: approx.1,100) since June 2011. Previously, both hadcommuted daily to Exeter for work but, whenthe village shop became available shortly afterSarah was made redundant, it seemed like agood omen.

The National Lottery terminal was installed inAndy and Sarah’s store in the autumn of 2012and was immediately popular – mainly due tothe holiday camp on the outskirts of the village.However, local residents are now becomingmore aware of the terminal and are extremelyhappy to have The National Lottery so close tohome.

Although many people have come to knowabout the terminal through word of mouth, theFryatts have arranged for a high-impact advertabout it in the local press and have also placed

Says Robin Bray: “There is a crossover betweenthe shop and the café as people will come in forprovisions then have a cup of tea.” Bray andbusiness partner Jane Rebeiro bought the shopfour years ago and knocked through into the

Tourists chat with parishioners in the tearoom, where mums hold impromptumeetings about tennis tournaments beforepopping next-door to the shop for a loaf.It might sound idyllic but that’s just howowners of The Village Shop & Tea Room inCompton, West Sussex, can justly describetheir business.

next-door cottage to create a café which has 20covers, with extra seating outside. The cafe notonly serves the small community but is also ameeting place and visitor attraction, contributingabout one-third of their turnover.

Like these villagers, many recession-hit Britsnow see a hot drink and slice of cake as aregular affordable luxury, but while town centrehigh streets have a plethora of coffee shops,there are far fewer rural options.

Kenneth Parsons, RSA chief executive, explainsthat historically, a surprising number of villageshad tearooms, but that the sector has been indecline for decades. He adds: “Until relatively

Coffee Shops in Rural Stores...


A Coffee Shop can take up considerable amounts of space.

Goldmine or Millsto

recently, my advice to shopkeepers thinking ofsetting up such a facility was an emphatic no,but times move on and today, in the rightlocation, they can be well worth considering.”

Some of those village shopkeepers going intocatering have found tourist locations to be idealsites. Jocelyn Smith, at Arley Post Office Storesand Riverside Tearoom in Kidderminster,reports that despite being largely dependent ontourists and trading mainly between April andOctober, she and husband Peter have doubledturnover in recent years – initially by extendingopening hours. Smith says locals tend to onlyuse the shop but despite this, the tea room ismore profitable than the convenience store, andexplains their simple strategy: “It’s hard to offermore unusual stuff if you don’t know how busyyou’ll be, but it’s good to do traditional thingslike tea and scones, as well as lattes.”

Meanwhile, other shops are finding that runninga cafe can engender village spirit, such as theMartin Community Shop in Hampshire. Theshop moves to the main church hall eachSaturday and opens a café which volunteers andthree other local groups take turns to run, sellingtea, coffee and cakes. “It definitely brings peopleinto the shop,” reports manager Janet Richards,who adds that it raised £1,800 for local charitieslast year. “There were some villagers who neverbought anything from us, but since comingalong with their friends to the café, havebecome shop customers.”

As a result, store sales – which had been goingdown – are back up to previous levels.So if you’ve got a bit of spare space, should youput in a couple of tables and a coffee machine?

Rural retailers need to be cautious before takingthe plunge, warns Christine Hope, of Hopes ofLongtown in Herefordshire. She started offeringhot drinks five years ago, which customers candrink at the table outside, but wanted to providebetter coffee and hot chocolate so bought adrinks machine. Due to a misunderstandingover costs, the machine is not paying its way.Adds Hope: “I would advise people to try akettle service first before they buy a coffeemachine.”

Success can also be down to timing and havinga unique village service, according to another

By Helen Gregory


ne?

UPPER ARLEYThe shop/post office and the tearoom areboth quite small and are separate premises,albeit linked. The business is only viable withthe two parts. Arley is a tourist magnet insummer, a popular stop on the scenic SevernValley railway. Tables and chairs on the bankof the river provide most of the seating forthe café, whilst on hot summer days the icecream scoops in the shop are exceptionallypopular.

café-running rural retailer. Andrew Summers, ofOreleton Post Office & Stores, Herefordshire,always fancied having a tea shop but put tablesin the store just as someone started a café in thevillage hall. Says Summers: “We do actually geta few tourists and school run mums, but itsmost useful attribute is for when reps come orwe need a staff meeting. And at least it meanswe can sit and have a cup of tea withcustomers.”

Both the Compton tea room’s Bray and theRiverside Tearoom’s Smith reckon that you needa minimum of 20 seats to create a viablebusiness while Smith adds: “We have eight seatsinside but up to 40 outside so we don’t need tohave a customer toilet which would have been arigmarole.”

She advises anyone considering the idea tocheck out the local competition before movinginto catering: “We often go round local tearooms and try out their offers.”

Coffee Shops in Rural Stores...continued


The RSA view● Market research in rural villages always shows that

local people would like to have a coffee shop orcafé. This does not mean they would actually use it.

● Shop proprietors are always attracted by the veryhigh gross profit margins available. This does notmean that they are able to control costs sufficientlyto make a decent profit at the bottom line.

● Do consider local competition. If the pub doescoffee and snacks, then it may not make sense tocompete with it.

● It is sometimes sensible to test the market beforemaking the large investment. If a cheap self-servicecoffee machine and packets of sandwiches sellwell, then it is some indication that there is likelydemand for something more sophisticated.

● Even limited coffee areas take up space; customersdo not want to be too crowded whilst having a quietsit-down. A pleasant environment is vital.

● Staffing tends to be the another important issue. Ifyou need to employ extra staff, then you need to besure that they will be actively employed.

● Coffee shops tend to do well in tourist areas, on ornear major foot paths or cycleways as well as onroads. Opening hours do not have to be the sameas for the shop.

● Do make sure that your offer is of decent quality.Investment in a good coffee machine and the skillsto operate it is usually well worthwhile.

● Provision of Wi-Fi access is now highly desirable,particularly if you are expecting to serve businesscustomers.

Café checklist● Discuss possible requirements for

customer toilets with your local districtcouncil or unitary authority. They will alsoadvise you on other environmental healthrequirements

● Register your café or coffee shop with thelocal council.

● Obtain a food hygiene/safety certificate.● Have good food safety management

procedures, and consider health andsafety, and fire safety arrangements.

● Keep written records of all your food anddrink suppliers.

However, gluten is found in a wide range ofproducts. Biscuits, cakes, cereals, flours, pastasand pizza bases are fairly obvious, but it canalso be found in a wide variety of preparedfoods.

Coeliac disease occurs in people whobecome sensitive to a particular protein intheir diet called gluten, which is normallyfound in wheat, barley, rye and othercereals.

The treatment for the condition, which isusually very successful, is to remove allsources of gluten from the diet.

According to the charity Coeliac UK, one personin a hundred has coeliac disease. In otherwords, in a village of 2,000 people, twenty willneed to adopt a gluten-free diet in order to avoidthe unpleasant symptoms of the disease.Certain gluten-free products are available onprescription but each NHS Trust has differentrules and the whole approach is currently underreview. Some people decide it is more hassle togo down that route than it is worth. Apart fromdiagnosed sufferers, more and more people whohave not been diagnosed are changing to agluten-free diet as they find they feel better forit. For example, Novak Djokovic, number onein the men’s world tennis rankings, has chosento go on such a diet. There are many morepotential customers than just coeliacs.

Gluten Free Products... By Geoffrey Bray


Gluten free flour sits comfortably alongside mainstream ranges

Gluten Free Products

So is it worth the rural retailer stockinggluten-free products?These products are often not cheap and there isa very large range of gluten-free productsavailable. Even if you only stock a staple, suchas bread, most people on gluten-free diets havetheir own brand preferences. Before investing instock, it is sensible to find out if you have anycustomers who are on such a diet and then askthem what they would buy if you stocked it.And you would need them to be very specific.So a prominent notice in-store or leaflets askingcustomers what gluten-free products they wouldbuy might be a good way to start.

Gluten Free Products...continued


Sometimes stocking specialist products can justclutter up your shelves, however….

Motivated by press and television coverage onthe rise of gluten and wheat free products, werecently expanded our range of pasta and flourto include a gluten and wheat free alternative.

We chose the Dove Farm range of Penne, Fusilliand Lasagne, which amazingly is made frommaize & rice. As you would expect, the initialuptake was slow; however we soon built a loyalcustomer base of people with either wheat &gluten intolerance or who were just following awheat-free diet out of choice.

Although the range sells at a higher price pointthan normal pasta, this has not been a barrier. Itoffers a good margin, and best of all it has along shelf life (1 year plus). We also stock self-raising white and brown wheat & gluten freeflour, with which we have had similar success.One benefit of stocking these “specialist”

A waste of space ... or a “repeat customer” driver?

Gluten-free pasta has proved popular in Blagdon Stores

products is that it encourages customers to talkabout your store in the wider community,resulting in new customers specifically askingfor them.

And invariably, these customers buy somethingelse as well whilst they are in the shop!

Graham Brown, Blagdon Village Stores

In addition to sales of gluten-free productsthemselves, you can also hope to garnerincremental sales of other products bought bythe family – and create a loyal customer with avery strong reason to keep coming back to yourshop on a regular basis.

● For more information, see:http://www.coeliac.org.uk

● Coeliac UK provides a directory of suppliersof gluten-free foods – to access it, you canbecome a commercial partner at no charge:http://www.coeliac.org.uk/food-industry/become-a-commercial-partner-0

Store numbers in the UK declined by 2.7% lastyear. Retailers including Peacocks, ClintonCards, Comet, JJB, La Senza, Blacks, Jessops andHMV have all collapsed into administration,shuttering hundreds of stores in the process.Everybody pays lip service to supporting theirlocal shops but the reality is that nearly 15% ofall retail premises are currently vacant, withpredictions that a lot more shops will remainunlet over the next few years.

So if tarted up shop fronts and some flowertubs are not the answer, what is?Clearly one of the factors causing real problemsfor bricks and mortar retailers has been themeteoric rise of online shopping. Paradoxically,many of the main players in this new marketare not actually making much money from it.This is true for supermarkets and also forcompanies such as Amazon.

A lot of town centres and malls have websites toencourage prospective customers to visit them.However, we know of two companies that havetaken the idea a stage further to create a “virtual

We have to confess that at the RSA we havealways been a bit cynical about governmentsupport for the High Street. A millionpounds, a high profile front person fromtelevision and a lot of PR puff does not solvethe deep-rooted structural problems facingtown centres all over the country.

high street” online. They have approached theopportunity from very different directions butboth have elements of interest to rural retailers.

However, two schemes aim to breathe life backinto local bricks and mortar retailing byproviding small businesses with a web portal.This opens up on-line browsing and ordering,with delivery to the customer’s home.Openhighstreet and MyHigh both allowcustomers to shop locally on their mobile, PC ortablet. Customers can then either click andcollect, or have purchases delivered.

Openhighstreet can probably be compared withsupermarket e-commerce sites, whilst Myhigh ismore like Amazon.

Both companies are trying to square the circlebetween the attractions of shopping at smallindependent retailers and the convenience ofbuying on-line.

Clicks and Bricks...


Two Approaches to Home Delivery

BACKGROUNDThis company was set up by Loaye Agabani.After a career with M&S, he has founded aseries of retail and leisure businesses. Thecompany's philosophy is very much based onhis experience of owning Junior Toys, asuccessful toy shop in Wells in Somerset, thesmallest City in England and one which still hasa high street with a significant number ofindependent retailers. Funding for the companyis self-generated. The company's offices areabove the toy shop. The company has a smallteam of experienced employees who provide ITand marketing services in-house.

FOR CUSTOMERSMyHigh is about encouraging customers to shopat their local retailers. Customers on the MyHighwebsite select their home town as part of theregistration process. They can then browse theranges on offer, order on-line for home delivery(at extra cost) or they can click and collect. Ifcustomers buy from more than one shop fromthe same town, orders can be consolidated intoone delivery.

FOR RETAILERSRetailers register with the site and set up theirown home page within it, at no charge. Theycan then list their products, again for free.Window stickers and other publicity material arealso free. The only charge to the retailer is a14% commission on all sales made through thesite, which does include all credit card charges.These charges are competitive with other sitessuch as Amazon or EBay.

There are about 140 retailers who have signedup. A significant proportion is in Wells itself,with other clusters in places such as SheptonMallet and Stroud, although there are a fewretailers coming on board from outside thesouth-west. Once 10 shops have signed up inthe town, a virtual High Street is created for it



Loaye Agabani (“Louis”)

myhigh.st

Junior Toys in Wells, where it all started.


on the website. The majority of shops are non-food, giftware and the like, although there aresome food shops involved.

MyHigh offers independent retailers a way ofgaining an extra web presence at no upfrontcost. Provided most sales are genuinely extrabusiness and that profit margins can cover thecommission, then participating retailers havelittle to lose. To quote MyHigh, it “enhances youroffer, extends your geographic reach, increasessales and builds new revenue streams”.

FOR MORE INFORMATION OR TO JOINhttp://myhigh.st

THE RSA VIEWMyHigh consists of a small but dedicated teamof people committed to what they are trying toachieve. It will be interesting to see how manypeople access the site and then visit the shopsalong the real high street in person.

It is still too early to say whether the conceptwill succeed. The number of shops signed up isimpressive and the website would seem to besuccessful in attracting visitors and also drivingcustomers to the bricks and mortar shopsfeatured within it. It will be interesting to seewhether there is a crossover between shop visitsand ordering online. It is obviously essential thatthe site does generate sufficient e-commerceorders in order to cover its costs.

The concept seems to be most attractive to non-food retailers. For such businesses, the very lowupfront investment means that there is little tolose from joining MyHigh.

Only time will tell whether the site generatessufficient commissions to make the conceptfinancially viable for the operator.

“I was quite excited about the idea but not surehow it would work for me – I particularly liked itscollective nature. So far people have mainly seenthings on the web and contacted us directly. It'sbeen a good showcase. It's been nice to try to sellonline without the expense of an e-commercewebsite of our own. We’ve gone online but beengiven a local feel. Louis and his team have done a great job”Dan Holland of Queen Street Deli, Wells

"We did have our own website but over 18 monthsit generated half the sales we have had fromMyHigh.St. The site is user friendly and it is easy toset up new lines. We have generated some repeatbusiness through the site and it has brought extracustomers to the shop. Tallying it all up, we think itis brilliant value for money. We have recommendedit to other people." Elise Beauchamp, of Florrie'sGifts and Homeware, Street (pictured with hercousin and business partner Chantelle Vinnell).



BACKGROUNDOpen High Street has originated from acorporate background. The project has beenfunded by £400,000 from the governmentTechnology Strategy Board with a further£400,000 coming from private sector backers,mainly consumer goods giant Unilever. Inzenka,a consultancy firm that sets up new businesses,initially managed the project, whilst otherconsortium members included Eziserv (apackaging company) and Pi3 (branding experts).

The aim was to build a “virtual high street”,providing a platform for local businesses thatcannot afford to run a website and allowscustomers to have the quality and service theyget from independents at any time. The long-term aim was to link up a logistics network thatwould allow shoppers to buy easily fromindependent stores anywhere in the UK and usethe spare capacity of local delivery firms to keepcosts under control.

The project was intended to prove the conceptin a local area – Herefordshire - prior to a muchmore extensive national roll out.

Although the scheme is still in existence, it onlyhas a handful of customers ordering from it. It isnot being actively marketed to new customersand its future would seem to depend on moreexternal funding becoming available.

openhighstreet

Butter Market Grocery supply fruit and vegetables from their stand in the historicHereford Butter Market

Mousetrap Cheese has a local cheese-producing dairy and 3 shops

Neil Powell operates 5 shops inHerefordshire and specialises in locally-produced meat

Neil Powell operates 5 shops in Herefordshire and specialises inlocally-produced meat


THE RSA VIEWInzenka is an experienced consultancy whichspecialises in setting up new concepts andtrialing them in the field for large companies. A significant number of blue chip companiesfeature in their client list. But unfortunately a lotof the funding for this fairly straightforwardproject does not seem to have gone into thepractical aspects of getting it to work.

There is absolutely nothing wrong with theconcept. Small food shops want to be able tooffer the same convenience of online orderingand cheap home delivery that the supermarketsprovide. Working together to provide it makescomplete sense. Many customers would like touse specialist retailers without the hassle ofdriving into town to visit them. Hence there is areal demand from both suppliers and customersfor such a service.

Despite its large budget, this project did not runfor long enough or reach a sufficient scale toprove one way or another whether it could in

fact compete successfully with supermarketdeliveries and achieve anything like a breakevenpoint financially. The killer problem for homedelivery schemes is the logistics – in this case,the costs of collecting products from severalsuppliers, sorting them and then delivering toindividual customers, all in relatively smallquantities.

We very much hope that OpenHighStreet is ableto address some of the unresolved issues and goon to provide a viable e-commerce solution forindependent rural retailers.

FOR CUSTOMERSCustomers can order from any of the stores thathave signed up to the scheme, all of which havetheir own pages within the website. Theirpurchases are combined into one basket withinthe website, leading to one single payment.

The products from the different stores aredelivered in one drop for a flat £5 fee. Theservice is currently available to addresses withHR Hereford postcodes only.

This allows customers in the county to buy from small local shops whilst enjoying theconvenience offered by online supermarketshopping.

FOR RETAILERSOpen High Street charges retailers a commissionof about 10%. The attraction of being able tosupply new customers with somebody elsetaking the hassle of marketing and delivery isobvious. There are just four retailers signed upto the scheme. Three are specialists based inHereford city centre - a butcher, a specialistcheese shop and a greengrocer), whilst thefourth is a general convenience store in a villagea few miles out of the city (West End Stores,Fownhope – see page 6).

FOR MORE INFORMATIONwww.openhighstreet.com

RURAL RETAILER SPRING 2013

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