SLR p6-7 news Jun09.qxp 01/06/2009 12:37 Page 6
news
Filling station fears
About half of the rural filling
Retail trade bodies unite behind
stations in the north of Scotland
and the islands could close demand for grocery Ombudsman
within 10 years, a report by
Experian Catalist for Highland The UK’s major trade Distributors (FWD), and the
Council has warned. organisations representing local Northern Ireland Independent
The survey said as many as 114 shops and wholesalers, including Retail Trade Association (NIIRTA)
of the area’s current network of the Scottish Grocers’ Federation have submitted comments in
231 petrol stations could close (SGF), have called on the response to the Commission’s
across the Highlands, islands, Competition Commission to act latest consultation on this issue.
Moray and Argyll. The worst swiftly and decisively to introduce SGF chief executive John
affected area was said to be an Ombudsman to tackle Drummond said: “We are
Orkney, where 17 of the 28 filling excessive use of buyer power by concerned that the slow rate of
stations were described as ‘at major grocery retailers. progress in bringing about an
risk’ due mostly to low The Commission’s Grocery Ombudsman presents a risk to
profitability. Market Inquiry found that such consumers – as it is their
an Ombudsman was necessary to interests that the
prevent damage to suppliers and recommendation for an John Drummond.
Newsagents plight
to the consumer, yet since the Ombudsman and Grocery
Scotland’s newsagents have publication of their report in April Suppliers Code of Practice were Ombudsman through primary
warned the government that 2008, the Commission’s progress designed to protect. We believe legislation.”
they could be consigned to towards introducing an the major multiples will not The Commission’s report
history unless the Office of Fair Ombudsman has been very slow. voluntarily agree the terms for highlighted the consumer
Trading (OFT) takes action to The SGF, the Association of creating an Ombudsman, and that detriment caused by the buying
protect their future by re- Convenience Stores (ACS), the it is time for the Commission to practices included in the Code of
examining the newspaper and Federation of Wholesale move towards introducing an Practice, which were primarily
magazine distribution industry to due to the transfer of excessive
address “widespread concerns SGF believes that introducing an Ombudsman on a statutory footing risk and unexpected costs to
about anti-competitive would bring the following benefits: suppliers. For example, the
behaviour”. l the possibility of punitive fines for breach of the code potential for suppliers to increase
The National Federation of l more extensive powers of intervention costs to retailers other than the
Retail Newsagents and the l making compliance with a Grocery suppliers Code of Practice a direct largest and the removal of
Association of New Retailers obligation planned promotional activity from
have delivered a joint submission smaller customers.
to the OFT which lays out the
case for a full Competition
Commission investigation.
Recession shoppers will stick to
NMW anger
new habits in future, says IGD
Retailers are up in arms once
more at the government’s Three quarters of shoppers who planning meals better and taking particularly favour brands because
decision to hike the National have made changes to their food their time to find the best deals. they have “grown up” with them
Minimum Wage once more – this and grocery shopping due to the “In such a vibrant marketplace, More worryingly for c-stores,
time by 1.2% – despite the on- recession say that they will stick in which new shopper loyalties 66% of shoppers say that they
going economic downturn. with their new habits even when are emerging, UK retailers and have seen an improvement in the
The increase comes into effect the economy recovers, according food manufacturers are quality of own-label over the past
on October 1 and will see the to new research by IGD. responding very rapidly to the two years while more shoppers
rate rise from £5.73 to £5.80 per The findings are good news for challenges presented by the are visiting discount
hour. SGF boss John Drummond local retailers as they benefit from recession. supermarkets (eg, Aldi, Lidl,
has, however, called the rise a shift away from major “They are each vying to excel at Netto) more often.
“more realistic” than those of supermarkets shops towards more delivering value – and the most A related survey of 120 food
recent years but said that the regular top-up shops at c-stores. effective are patently reaping the and drink manufacturers found
rise could nonetheless lead to According to IGD, new shopper rewards.” that they are responding decisively
job losses. loyalties are emerging as food The research released today by to changing shopper trends.
retailers and manufacturers international food and grocery For example, 47% are putting a
engage in an intense ‘contest for expert IGD highlights a number strong emphasis on price and
value.’ of winners emerging: value through advertising and
Joanne Denney-Finch, chief Brands with a strong heritage communications activity; 47% are
executive, said: “As shoppers have a number of consumer focusing on brand values in their
increasingly scrutinise every trends in their favour with 44% of communications; 43% have
penny they spend they are shoppers stating that a major increased promotional activity and
shopping around more, wasting strength of brands is their reliable 42% have changed pack sizes in
less, seeking out promotions, “taste and quality”. Some 27% response to consumer trends.
6 l SCOTTISH LOCAL RETAILER l JUNE 2009 WWW.55NORTH.COM
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